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The daily business briefing: September 11, 2023

theweekonlineeditors@futurenet.com (Harold Maass, The Week US) — Mon, 11 Sep 2023 12:20:27 +0000

1. Alibaba shares drop after outgoing CEO also leaves cloud unit

Daniel Zhang, the outgoing chairman and CEO of Alibaba, unexpectedly stepped down as head of the Chinese tech giant's cloud division after just months in that job. Alibaba shares dropped more than 4% in Hong Kong on Monday as the news raised concerns about the potential spin-off of the unit. New Alibaba CEO Eddie Wu will take over as acting CEO and chair of the cloud unit, which was valued at $41 billion to $60 billion earlier this year and has been struggling with weak sales growth ahead of an initial public offering planned for 2024. "We have mixed thoughts on this news," but "there are concerns of disagreements among Alibaba's partners," Morningstar analyst Chelsey Tam wrote in a note.

Reuters The New York Times

2. Instacart targets $9 billion valuation in IPO

Instacart, which was valued at $39 billion in a 2021 fundraising round, is targeting a valuation between $8.6 billion and $9.3 billion in its looming initial public offering, The Wall Street Journal reported Sunday. The company plans to raise up to $616 million in the IPO. The lower valuation for the grocery-delivery company reflects weakening investor interest in private companies highly dependent on growth as the Federal Reserve's inflation-fighting interest rate hikes raise borrowing costs. The San Francisco company is expected to start marketing the IPO to investors as soon as Monday, according to the Journal. Its shares are expected to make their Nasdaq debut next week.

The Wall Street Journal

3. Survey: Consumers plan to cut spending by early 2024

U.S. consumers, whose continued spending has helped prevent a recession, might cut back in early 2024, resulting in the first drop in personal consumption since the start of the coronavirus pandemic, Bloomberg reported Sunday, citing its latest Markets Live Pulse survey. More than half of the survey's 526 respondents said the reversal would hit in the first quarter of next year, while 21% said it would hit in the fourth quarter of this year. The cuts in personal consumption — the biggest driver of economic growth — come as higher borrowing costs and dwindling Covid-era savings force American families to tighten their budgets, Bloomberg reported.

Bloomberg

4. Stock futures rise ahead of inflation data

U.S. stock futures rose early Monday ahead of the release of key inflation data mid-week. Futures tied to the Dow Jones Industrial Average and the S&P 500 were up 0.2% and 0.4%, respectively, at 6:45 a.m. ET. Nasdaq futures were up 0.5%. All three major indexes made modest gains on Friday at the close of a losing week. The latest consumer price and producer price indexes come out on Wednesday and Thursday, providing investors with an update on inflation that could provide clues on the Federal Reserve's next moves on interest rates. "Overall, the market will be looking for direction amid recent choppiness," Yung-Yu Ma, chief investment strategist at BMO Wealth Management, told CNBC.

CNBC

5. Hostess shares rise as sale to Smucker nears

Hostess Brands shares jumped 7% in premarket trading on Monday after reports that fellow snack maker J.M. Smucker is close to a deal to buy the company for nearly $5 billion. The acquisition would exclude Hostess' $900 million in net debt, Reuters reported, citing sources familiar with the matter. Hostess' stock has gained nearly 27% since Aug. 25, when The Wall Street Journal first reported a deal was looming. The gains boosted its market capitalization to about $3.7 billion. The Journal said a deal could be announced as soon as Monday. It would mark a big turnaround for Hostess, maker of Twinkies, after two Chapter 11 bankruptcies. Smucker beat out another suitor, Cheerios and Betty Crocker parent General Mills.

The Wall Street Journal Reuters

The daily business briefing: September 8, 2023

theweekonlineeditors@futurenet.com (Harold Maass, The Week US) — Fri, 08 Sep 2023 12:21:47 +0000

1. 4th former FTX executive pleads guilty

Former FTX executive Ryan Salame pleaded guilty Thursday to charges related to the fraud case against the failed cryptocurrency exchange's founder, Sam Bankman-Fried. Salame admitted to making millions of dollars in political contributions at Bankman-Fried's direction, in violation of campaign finance laws. He also pleaded guilty to operating an unlicensed money transmitting business. Salame is the fourth former top FTX executive to admit crimes since the exchange went bankrupt in November. His guilty plea intensified pressure on Bankman-Fried ahead of his trial, scheduled for next month. Salame will pay $5 million in restitution to FTX and a $6 million fine. He will also forfeit two Massachusetts properties and a Porsche, and could face up to 10 years in prison.

The New York Times

2. Walmart reduces starting pay for many store employees

Walmart has started reducing starting pay for some store workers, The Wall Street Journal reported Thursday, citing company documents and employees. Under a wage structure imposed by the nation's largest private employer in mid-July, most new hourly employees receive the lowest wage on the pay scale. Previously, some employees, such as those collecting items for online orders, received slightly higher pay than cashiers and others workers. Walmart and other major employers have hiked wages and benefits in recent years to compete for workers. The change suggests that major employers are "seeking to cut labor costs as the once-hot market for hourly staff cools," according to the Journal.

The Wall Street Journal

3. Biden seeks to counter China's influence at G-20 summit

President Biden is scheduled to arrive in India on Friday for this weekend's Group of 20 summit. With Chinese President Xi Jinping and Russian President Vladimir Putin skipping the meeting, Biden will have "an opening to re-establish the U.S. as the polestar of the international system," and counter aggression from Beijing and Moscow, Bloomberg reported. National security adviser Jake Sullivan said this week that the United States hopes the gathering will show that the G-20 remains "a forum that can actually deliver" meaningful initiatives to help developing countries and make "progress on key priorities for the American people, from climate to technology."

Bloomberg CNN

4. Stock futures fall after lower-than-expected jobless claims

U.S. stock futures slipped early Friday after new jobless claims came in lower than expected, increasing concerns that the Federal Reserve might raise interest rates further to cool the economy and bring down inflation. Futures tied to the Dow Jones Industrial Average, the S&P 500 and the Nasdaq were down about 0.2% at 6:30 a.m. ET. The federal government reported 216,000 new jobless claims, falling short of the 230,000 forecast by economists polled by Dow Jones. The CME Fed Watch tool now indicates 1 in 2 odds the Fed will raise rates in November. The Dow gained 0.2% on Thursday, but the S&P 500 and tech-heavy Nasdaq fell 0.3% and 0.9%, respectively. It was the Nasdaq's fourth straight losing session.

CNBC

5. Hawaii officials urge tourists to return

Hawaii tourism officials have started urging tourists to return to Maui after begging them to stay away in the immediate aftermath of wildfires that killed 115 people in the historic town of Lahaina, The Associated Press reported Thursday. Airlines have started offering discounted fares, and some resorts are offering a fifth night free. "I know what a terrible disaster that was. But now we're in crisis mode," said Richie Olsten, who has worked in Maui's helicopter tour business for 50 years. "If we can't keep the people that have jobs employed, how are they going to help family members and friends that lost everything?"

The Associated Press

The daily business briefing: September 7, 2023

theweekonlineeditors@futurenet.com (Harold Maass, The Week US) — Thu, 07 Sep 2023 12:08:27 +0000

1. Biden blocks oil drilling in much of Arctic Alaska

The Biden administration announced Wednesday it would ban oil and gas drilling in 13 million acres of the National Petroleum Reserve in Alaska and cancel drilling leases in the Arctic National Wildlife Refuge. The decisions marked the administration's most forceful step yet to protect pristine federal lands from energy exploration. The moves would not, however, stop the $8 billion Willow oil drilling project President Biden signed off on in March, angering climate activists who called it a "carbon bomb." Biden said the new protections would "help preserve our Arctic lands and wildlife, while honoring the culture, history and enduring wisdom of Alaska Natives who have lived on these lands since time immemorial."

The New York Times

2. China bars officials from using iPhones at work

China has barred officials at central government agencies from using iPhones and other foreign-branded devices for work, The Wall Street Journal reported Wednesday evening, citing people familiar with the matter. The ban, which comes as Beijing pushes to increase cybersecurity and reduce reliance on foreign technology, could "have a chilling effect for foreign brands in China, including Apple," according to the Journal. Apple dominates China's high-end smartphone market, and gets 19% of its overall revenue from China. Beijing has previously limited the use of iPhones for work, but the new order broadened the policy. It mirrors U.S. bans on gear made by China's Huawei Technologies, which just released a smartphone with its most advanced homegrown chip yet.

The Wall Street Journal

3. Texas grid operator declares brief power emergency due to extreme heat

Texas on Wednesday declared a brief Level 2 power emergency due to electricity shortages caused by soaring temperatures. It was the state's first power grid emergency since a historic freeze caused blackouts in February 2021, contributing to hundreds of deaths and leaving millions of people stuck in freezing homes, according to Bloomberg. The state's grid operator, the Electric Reliability Council of Texas (ERCOT), lifted the emergency measures later in the day and declared it was returning to normal operations. Still, ERCOT urged its more than 26 million customers to reduce their power use after it had to draw on reserves and came close to resorting to rolling blackouts.

Bloomberg Reuters

4. S&P 500, Nasdaq futures slip as interest rate concerns persist

S&P 500 and Nasdaq futures dropped early Thursday as investors remained concerned the Federal Reserve may raise interest rates again this year to fight inflation. Futures tied to the S&P 500 and the tech-heavy Nasdaq were down 0.3% and 0.7%, respectively, at 7 a.m. ET. Dow Jones Industrial Average futures were flat. The S&P 500 and the Dow dropped 0.7% and 0.6%, respectively, on Wednesday. The Nasdaq fell 1.1%, weighed down by declines of more than 3% for Apple and Nvidia. Treasury yields remained high, pressuring the stocks of tech companies that rely on growth and increasing investor concerns that recent better-than-expected economic data could justify more Fed rate hikes.

CNBC

5. Chinese exports fall for 4th straight month

China reported Thursday that the value of its exports fell 8.8% in August compared to a year earlier, the fourth consecutive month of declines. Imports fell by 7.3%, according to China's General Administration of Customs. The figures added to recent signs of trouble in the world's second largest economy, where slumping growth and home prices have dented consumer and investor confidence, according to The New York Times. The numbers weren't quite as bad as expected. Economists surveyed by Reuters had forecast a 9.2% drop in exports and a 9% decline for imports. One reason for China's troubles: Consumers around the world stocked up on Chinese manufactured goods during the pandemic and are now spending on travel, dining out and services.

The New York Times

The daily business briefing: September 6, 2023

theweekonlineeditors@futurenet.com (Harold Maass, The Week US) — Wed, 06 Sep 2023 12:16:01 +0000

1. Oil prices rise after Saudi Arabia, Russia extend production cuts

Saudi Arabia and Russia announced Tuesday they had agreed to extend voluntary oil production cuts through the end of the year to boost prices. The news sent the price of benchmark Brent crude rising above $90 per barrel for the first time since November, although prices slipped early Wednesday. The deal will reduce the global supply by 1.3 million barrels per day, with Russia alone cutting 300,000 barrels. The decision could drive up prices at the gas pump and increase inflation, The Associated Press reported. It also could hurt Saudi Arabia's relationship with the U.S. President Biden warned in 2022 Riyadh would face "consequences" if it teamed up with Moscow on cuts after Russia's invasion of Ukraine disrupted energy markets.

The Associated Press

2. Report: Huawei and Chinese chipmaker developed advanced smartphone processor

Chinese tech giant Huawei Technologies and Semiconductor Manufacturing International Corp, the country's top chipmaker, have built an advanced 7-nanometer processor and put it into Huawei's latest smartphone, Bloomberg News reported, citing a report by Tech Insights, which tore apart one of the devices for a look inside. Huawei's Mate 60 Pro runs on a new Kirin 9000s chip manufactured by SMIC. It wasn't immediately clear how many of the chips the companies can produce, and how expensive they are to make. But the development suggested that China, which Washington is preventing from buying the most advanced U.S. chips, is making progress toward developing its own next-generation microchips, Bloomberg reported.

Bloomberg

3. Regulators take step toward massive air bag inflator recall

The National Highway Traffic Safety Administration said Tuesday it had made an initial determination that a Tennessee company's air bag inflators could explode, injuring or killing people with shrapnel. The decision marked a key step toward making the company, ARC Automotive, recall 52 million inflators made by the manufacturer and another company under license. The agency scheduled an Oct. 5 hearing, the next step to asking a court to order the defiant company to recall the allegedly defective products. In May, the agency said the inflators were involved in at least seven injuries and two deaths in the U.S. and Canada since 2009. At least 25 million cars in the United States are believed to contain the inflators.

The Associated Press The Hill

4. Stock futures slip after Tuesday's decline

U.S. stock futures fell further early Wednesday after Tuesday's losses. Futures tied to the Dow Jones Industrial Average and the S&P 500 were down 0.2% at 7 a.m. ET. Nasdaq futures were down 0.3%. The Dow and the S&P 500 fell 0.6% and 0.4%, respectively, on Tuesday, while the tech-heavy Nasdaq edged down 0.1%. A jump in oil prices after Russia and Saudi Arabia agreed to extend production cuts contributed to the downward pressure, as did rising Treasury yields. Both raised concerns about potential further Federal Reserve interest rate hikes to fight inflation. "Rising oil prices really feeds into the story about inflation," Bill Merz, head of capital market research at U.S. Bank Wealth Management, told CNBC.

CNBC

5. Report: Musk borrowed $1 billion from SpaceX when he bought Twitter

Elon Musk borrowed $1 billion from his rocket company, SpaceX, in 2022, around the time of his $44 billion purchase of Twitter, the social media company he has renamed X, The Wall Street Journal reported Tuesday. The "unusual loan" was part of Musk's tapping of his multiple companies to buy Twitter without having to sell shares, according to the Journal. The loan was backed by some of Musk's SpaceX stock. The company's board approved the arrangement in October and Musk withdrew the money that month, then returned it to SpaceX with interest the following month. Musk also has occasionally borrowed from banks against shares of electric car maker Tesla, where he serves as CEO, the Journal reported.

The Wall Street Journal

The daily business briefing: September 5, 2023

theweekonlineeditors@futurenet.com (Harold Maass, The Week US) — Tue, 05 Sep 2023 12:01:13 +0000

1. Country Garden makes late interest payment to avoid default

Chinese real estate giant Country Garden has met a deadline to make an overdue interest payment, avoiding a default on its debt, several news outlets reported Tuesday, citing people close to the company. Country Garden, China's biggest property developer and one of the world's most indebted, missed the initial due date of Aug. 7 on $22.5 million in interest on a pair of dollar bonds, but had a grace period ending Sept. 5-6. The payments bought Country Garden time to deal with its $187 billion in liabilities. The company's debt crisis threatens to spread through China's real estate sector and damage the broader economy, which has sputtered since a brief recovery that followed the lifting of tough Covid restrictions.

Bloomberg

2. Qantas chief Alan Joyce steps down

Qantas Airways announced Monday that CEO Alan Joyce was stepping down two months earlier than previously planned. He will be replaced by Chief Financial Officer Vanessa Hudson, who will be the first woman to run the century-old airline. Joyce's departure came after several missteps damaged the Australian carrier's reputation, with the scrutiny amplified by the company's record profits. Australia's competition regulator last week sued Qantas for allegedly selling tickets on more than 8,000 flights last year despite knowing they had been canceled. The airline also had to reverse a decision to let nearly $323 million worth of pandemic-era flight credits expire, after a backlash from politicians and the public. On Monday, Qantas apologized for falling short of service standards.

BBC News CNN

3. Disney urges Spectrum customers to switch to Hulu with live TV

Disney on Monday encouraged Spectrum cable TV customers to switch to Hulu's streaming service with live TV. The push, which Disney made in a blog post, came after the company pulled ABC, ESPN and other Disney-owned channels from Spectrum's lineup due to a dispute between the two companies about fees. "Despite the ongoing dispute, consumers have many other choices — such as Hulu + Live TV — that allow them to enjoy the great programming for which Disney Entertainment is known," Disney — which owns a majority stake in Hulu — said in a statement. Earlier, Spectrum had urged customers to try out alternatives like FuboTV for continued access to ESPN and other Disney channels.

NBC Sports Reuters

4. Stock futures slip to start holiday-shortened week

U.S. stock futures fell slightly early Tuesday ahead of a holiday-shortened trading week. Futures tied to the Dow Jones Industrial Average and the S&P 500 were down 0.1% and 0.2%, respectively, at 6:30 a.m. ET. Nasdaq futures were down 0.3%. The Dow and the Nasdaq gained 1.4% and 3.3%, respectively, last week, their best weeks since July. The S&P 500 had its best week since June, rising 2.5%. The gains followed fresh data indicating a cooling economy and easing price increases, which could lead the Federal Reserve to stop raising interest rates to fight inflation. The August jobs report released Friday showed that unemployment had risen to 3.8%, the highest in more than a year.

CNBC

5. 'Barbie' becomes top box office hit of 2023

"Barbie" has surpassed "The Super Mario Bros Movie" to become this year's biggest blockbuster. "Barbie" — a fantasy adventure about the iconic Mattel doll — has brought in $1.38 billion globally, inching past "Mario Bros," with $1.36 billion in ticket sales. "Barbenheimer" — the same-day release of Greta Gerwig's "Barbie" and Christopher Nolan's "Oppenheimer" — has lifted the domestic summer box office above $4 billion for the first time since the start of the coronavirus pandemic. But industry analysts said the rest of the year could be weaker because films like "Dune: Part II," "Kraven the Hunter," and the "Ghostbusters: Afterlife" sequel have been pushed back to 2024 due to the Hollywood strike, which prevents actors from promoting studio films.

BBC News

The daily business briefing: September 1, 2023

theweekonlineeditors@futurenet.com (Harold Maass, The Week US) — Fri, 01 Sep 2023 12:30:16 +0000

1. Disney channels go dark on Charter Spectrum in fee dispute

Disney pulled its channels, including ESPN and ABC local stations, from Charter Communications' Spectrum service on Thursday after the companies failed to resolve a dispute over distribution fees. The blackout came as ESPN's networks were broadcasting the U.S. Open tennis tournament and a college football game between Utah and the University of Florida. Disney said it had reached "successful deals" with other pay TV providers, and it urged Charter to "work with us to minimize the disruption to their customers." Charter, which has 14.7 million Spectrum subscribers, said Disney is "trying to force our customers to pay for their very expensive programming, even those customers who don't want it or worse, can't afford it."

The Wall Street Journal The Hollywood Reporter

2. Stock futures gain ahead of August jobs report

Stock futures rose earlier Friday ahead of the August jobs report due out at 8:30 a.m. ET. Futures tied to the Dow Jones Industrial Average and the S&P 500 were up 0.4% and 0.3%, respectively, at 7 a.m. ET. Nasdaq futures were up 0.1%. The three major averages were mixed on Thursday, with the Dow and the S&P 500 falling 0.5% and 0.2%, respectively, and the tech-heavy Nasdaq rising 0.1%. Economists surveyed by Dow Jones expected the employment report to indicate the economy added 170,000 jobs in August, down from 187,000 in July. Traders say any number adding to evidence that economic growth is slowing could boost markets by giving the Federal Reserve justification to pause its interest-rate hikes intended to bring down inflation.

CNBC

3. White House calls for short-term spending deal to avert shutdown

The White House on Thursday called for Congress to pass short-term funding to prevent a government shutdown on Sept. 30. The Office of Management and Budget also pushed for additional money for programs that have run short of cash. One of the Biden administration's requests was for $1.4 billion to avoid the possible interruption of nutritional aid to low-income families, The Washington Post reported. Democrats and Republicans have been trying to negotiate appropriations bills for the 2024 fiscal year, which begins Oct. 1, but Republicans want deep spending cuts Democrats won't consider.

The Washington Post

4. UAW files unfair labor practice complaint against Stellantis, GM

United Auto Workers President Shawn Fain said Thursday the union filed unfair labor practice charges against Stellantis and General Motors. Fain said the automakers the filing with the National Labor Relations Board accused the automakers of failing to respond with counteroffers to economic proposals that union negotiators made a month ago. "GM and Stellantis' willful refusal to bargain in good faith is not only insulting and counterproductive, it's also illegal," Fain said. GM and Stellantis denied Fain's allegations, saying the Thursday filing took them by surprise. "We believe it has no merit and is an insult to the bargaining committees," Gerald Johnson, GM's head of global manufacturing, said in a statement. He said GM was "hyper-focused" on negotiating fairly and was "making progress."

The Detroit News The Washington Post

5. China increases stimulus as economy struggles

China on Friday intensified measures aiming to stimulate its struggling economy as a debt crisis in the crucial real-estate sector rattles markets. The People's Bank of China, the country's central bank, said it would reduce foreign currency reserve requirements on banks for the first time this year. The announcement came hours after Beijing announced additional stimulus for the property sector and expanded tax breaks for child and parental care, and education. The measures are part of an ongoing government push to "shore up confidence in the world's second-largest economy, which is sagging under the weight of the persistent housing crisis, waning global demand, and rising unemployment," Bloomberg reported.

Bloomberg Reuters

The daily business briefing: August 31, 2023

theweekonlineeditors@futurenet.com (Harold Maass, The Week US) — Thu, 31 Aug 2023 11:51:00 +0000

1. CNN hires ex-Times CEO Mark Thompson

CNN is hiring former New York Times CEO Mark Thompson as the new chair and editor-in-chief of CNN Worldwide, Warner Bros. Discovery announced Wednesday. Thompson, who ran BBC from 2004 to 2012 before joining the Times, steps in to take over after Warner Bros. Discovery CEO David Zaslav fired Chris Licht as CNN president after just 13 months on the job. CNN is looking to Thompson, who led digital transformations at BBC and the Times, to turn around a cable news giant plagued by falling ratings and sagging morale. Dean Baquet, a former Times executive editor, said what makes Thompson "the perfect hire" is that he "understands what things are going to have to change."

The Hill The New York Times

2. UBS to cut 3,000 jobs in Switzerland after merger swells staff

UBS Group said Thursday it will cut 3,000 jobs in Switzerland as it works to shed $10 billion in costs following the Swiss bank's purchase of rival Credit Suisse. It would be impossible to save that much "without going through people and headcount," CEO Sergio Ermotti told Bloomberg TV. The announcement gave the first firm number on job losses related to the merger, which swelled UBS's workforce by 45,000 to nearly 120,000, according to Bloomberg. The redundancies will start no earlier than late 2024, Ermotti said at a Zurich press conference. Globally, 8,000 Credit Suisse workers have left this year. UBS shares jumped to their highest level since 2008 after the bank announced the cuts and better-than-expected quarterly profit.

Bloomberg CNBC

3. New York attorney general says no trial needed to show Trump inflated assets

New York Attorney General Letitia James, who is suing former President Donald Trump for alleged business fraud, said in a court filing Wednesday that Trump and his family business inflated the value of their assets to get favorable loans and insurance, falsely increasing Trump's net worth by as much as $2.2 billion. "Based on the undisputed evidence, no trial is required for the court to determine that defendants presented grossly and materially inflated asset values," the filing said. Trump's lawyers argued in their own motion that the court should throw out the whole case, now scheduled for trial in October, because a recent appellate court decision appeared to significantly narrow the case due to legal time limits.

The New York Times

4. Stock futures mixed after 4th positive day

U.S. stock futures were mixed early Thursday after a fourth straight day of gains. Futures tied to the Dow Jones Industrial Average and S&P 500 were up 0.3% and 0.1%, respectively, at 7 a.m. ET. Nasdaq futures were down 0.1%. The four-day winning streak has helped Wall Street trim August losses. Weaker-than-expected economic data, including payroll numbers and economic growth forecasts, have fueled hopes inflation will soon be low enough for the Federal Reserve to stop raising interest rates, boosting stocks. "You want to have this sweet spot where the economy is chugging along, but not too hot where inflation rears its ugly head again," Nadia Lovell, senior U.S. equity strategist at UBS Wealth Management, told The Wall Street Journal.

CNBC The Wall Street Journal

5. Salesforce shares jump after AI-fueled earnings boom

Salesforce shares rose 6% in pre-market trading Thursday after the software company late Wednesday reported better-than-expected quarterly earnings and outlook for the full-year. Salesforce said cost cuts more than offset slow business software sales, increasing revenue by 11%. Net profit jumped 19-fold and Salesforce now expects an operating profit margin of 13.3% for the fiscal year, up from a forecast of 11.4% three months ago. The company's push into artificial intelligence fueled the earnings beat. "We are very thirsty to make sure that Salesforce is the No. 1 AI CRM, and we have done a lot organically to do that in the last six months," Salesforce CEO Marc Benioff told analysts in an earnings call.

The Wall Street Journal CNBC

The daily business briefing: August 30, 2023

theweekonlineeditors@futurenet.com (Harold Maass, The Week US) — Wed, 30 Aug 2023 12:07:14 +0000

1. Raimondo warns Beijing it's making China 'uninvestable'

Commerce Secretary Gina Raimondo told Chinese officials Tuesday that the United States wants to maintain ties with China but concerns about Beijing's policies are scaring away international businesses, The New York Times reported. Raimondo, in the middle of a four-day trip seeking to ease tense relations between Beijing and Washington, met Tuesday with Premier Li Qiang, China's No. 2 government official, and Vice Premier He Lifeng, who leads on economic matters. Raimondo said afterward she had pressed her Chinese counterparts on American businesses' concerns about crucial matters, including intellectual property theft, capricious fines and raids on businesses. "Increasingly, I hear from businesses China is uninvestable because it has become too risky," she said.

The New York Times Reuters

2. Meta says it stopped major Chinese influence campaign

Meta said in a report released Tuesday that it had taken down thousands of fake accounts used in a Chinese influence campaign that was the largest known covert operation it had ever seen. Meta said it removed 7,704 Facebook accounts, 954 Facebook pages, 15 Facebook groups and 15 Instagram accounts linked to the campaign. The Chinese effort — which also used YouTube, TikTok, Reddit, Pinterest and X, formerly Twitter — dated to 2019 and was known as "Spamouflage" because it involved the frequent posting of spam messages. Meta said the campaign had little success spreading pro-China messages. "We have not found evidence of this network getting any substantial engagement among authentic communities on our services," the company said.

The Wall Street Journal The New York Times

3. Biden administration proposes expanding overtime protections

The Biden administration is proposing a new rule that would require employers to pay overtime to white-collar workers making less than $55,000 per year, up from the current threshold of $35,568. The change would make 3.6 million more U.S. workers eligible for the extra pay by restoring an Obama-era policy push blocked in court. The new proposal would also increase the salary level annually. Labor advocates have been pushing to strengthen overtime protections to offset decades of wage stagnation. The new rule, which would affect many retail, food and manufacturing managerial employees, faces a months-long public commentary period before it can take effect.

The Associated Press

4. Stock futures edge lower after 3-day winning streak

U.S. stock futures slipped early Wednesday after three straight days of gains. Futures tied to the S&P 500 and the Nasdaq were down 0.1% at 7 a.m. ET. Dow Jones Industrial Average futures were flat. The Dow gained 0.9% on Tuesday. The S&P 500 and the tech-heavy Nasdaq surged 1.5% and 1.7%, respectively, after fresh data showed signs of a cooling economy. A Conference Board consumer sentiment index reading of 106.1 came in lower than expected, and the Bureau of Labor Statistics reported a drop in job openings in July. Wall Street is "back to a 'bad news is good news' type environment," common "when investors are worried about rates and Fed policy," said Sonu Varghese, global macro strategist at Carson Group.

CNBC

5. China developer Country Garden issuing shares as it struggles to avoid default

Chinese homebuilder Country Garden unveiled plans Wednesday to issue new shares to raise $34 million in a bid to avoid defaulting on its debts. The embattled company said in a filing with the Hong Kong Stock Exchange that it would issue 350.6 million shares at 10 cents apiece next Wednesday. The money raised will go to a subsidiary of Hong Kong–based laminates manufacturer Kingboard Holdings Ltd. to cover Country Garden's debts. Country Garden, China's biggest property developer, is struggling to avoid default after missing two interest payments this month, in the latest fallout from a real estate crisis threatening China's economy.

CNN

The daily business briefing: August 29, 2023

theweekonlineeditors@futurenet.com (Harold Maass, The Week US) — Tue, 29 Aug 2023 12:00:30 +0000

1. American Airlines fined $4.1 million over delays

The U.S. Department of Transportation said Monday it was fining American Airlines $4.1 million over dozens of cases where passengers were forced to stay on planes during long ground delays. The department said investigators found that American kept a total of 5,821 passengers on 43 domestic flights that were stuck on the ground for at least three hours from 2018 to 2021. "This is the latest action in our continued drive to enforce the rights of airline passengers," Transportation Secretary Pete Buttigieg said. American has to pay half the fine within 30 days, but the other half is being waived after the department credited the airline for compensation it paid the inconvenienced passengers.

NPR

2. Toyota halts production at 14 Japan assembly plants

Toyota said Tuesday it had to suspend operations at its 14 assembly plants in Japan after its production system malfunctioned. The world's top-selling automaker said the breakdown was "likely not due to a cyberattack" but the cause was still under investigation. The plants in Toyota's home country account for about a third of its global production. Domestic output averaged about 13,500 vehicles per day in the first half of 2023, according to Reuters. Toyota had to halt operations for a day last year due to a cyberattack against one of its suppliers, forcing the company to use a backup network so it could resume production.

Reuters

3. 3M board approves $6 billion settlement over combat earplugs

3M's board of directors on Monday approved a $6 billion settlement to resolve complaints by nearly 300,000 veterans who said the company's military earplugs failed to protect them from hearing loss caused by loud noises, such as explosions. The settlement was significantly lower than the $10 billion to $15 billion some analysts had predicted. 3M shares rose after news of a tentative deal surfaced over the weekend, and closed 5.2% higher on Monday. 3M has argued that its combat earplugs work when used with proper training, but the case became the biggest single mass tort in U.S. history, with more claims than were filed over asbestos exposure, opioid sales, or wildfires, according to The Wall Street Journal.

The Wall Street Journal

4. Stock futures flat after Monday's gains

U.S. stock indexes 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 flat at 7 a.m. ET. The Dow and the S&P 500 rose 0.6% on Monday. The tech-heavy Nasdaq gained 0.8%. The Dow got a boost from 3M, which rose 5% after reaching a settlement in a wave of complaints over its military earplugs. The gains came as a rough August nears an end. "It's a lot of digestion right now as we pulled back a little bit off the year-to-date highs," Chris Barto, an investment analyst at Fort Pitt Capital, told CNBC. Traders are "getting back to their desks from summer and looking at their portfolios and reallocating."

CNBC

5. Chinese official promises 'positive efforts' to ease trade tensions

Chinese Vice Premier He Lifeng, Beijing's top official for economic relations with the United States, told Commerce Secretary Gina Raimondo on Tuesday he would "make new positive efforts" to follow through on a Monday agreement to reduce trade tensions. The vice premier said the steps would include launching groups to discuss commercial disputes, including export controls. The agreement, which came at the start of Raimondo's four-day China visit, was the biggest concrete result yet from a series of trips U.S. officials have made to China over the last three months seeking to ease trade tensions between the world's two largest economies. Raimondo said President Biden "asked me to reiterate to you our desire to have more open engagement."

The Associated Press

The daily business briefing: August 28, 2023

theweekonlineeditors@futurenet.com (Harold Maass, The Week US) — Mon, 28 Aug 2023 12:02:07 +0000

1. Commerce secretary seeks to ease tensions in China trip

Commerce Secretary Gina Raimondo arrived in Beijing on Sunday to start a four-day visit to China, in the Biden administration's latest push to improve tense relations between the world's two biggest economies. Raimondo said she would be "practical" in seeking ways to mend ties without sacrificing U.S. interests. "I'm also very realistic and clear-eyed about the challenges. And the challenges are significant," she told reporters Saturday before leaving. Raimondo said she would seek "actionable, concrete steps where we can move forward on the commercial relationship." She is expected to discuss boosting travel opportunities, following up on the recent easing of restrictions on big tour groups from China.

The Associated Press

2. Report: 3M agrees to pay veterans $5.5 billion over combat-earplug complaints

3M has tentatively agreed to pay $5.5 billion to settle claims by more than 300,000 veterans that the company's combat earplugs failed to prevent hearing loss, Bloomberg reported Sunday, citing people familiar with the negotiations. The talks are ongoing, and 3M's board hasn't signed off yet, according to The Wall Street Journal. The veterans in the earplug litigation — the largest mass tort in U.S. history — say 3M and Aearo Technologies, which 3M acquired in 2008, produced faulty earplugs and provided them to the U.S. military, failing to protect users from hearing loss. 3M has argued that the earplugs work when used properly. Some analysts had predicted the case would cost 3M $10 billion or more.

Bloomberg The Wall Street Journal

3. Evergrande shares plummet as trading resumes after suspension

Chinese property developer Evergrande's shares plunged 80% on Monday, their first day of Hong Kong trading since they were suspended in March 2022. The embattled company's stock has lost more than 99% of its value since Beijing started cracking down on property speculation three years ago, leaving Evergrande at the heart of a real estate crisis now dragging down the world's second biggest economy, according to BBC News. On Sunday, Evergrande reported that it lost $4.5 billion in the first six months of 2023. "The key for policymakers at this moment is to prevent financial contagion and limit spillover into the overall financial system," Qian Wang, chief Asia Pacific economist at investment firm Vanguard, told BBC News.

BBC News

4. Stock futures rise slightly after Fed comments

U.S. stock futures edged higher early Monday after comments from Federal Reserve Chair Jerome Powell, who said the Fed would "proceed carefully" with additional interest rate hikes. Futures tied to the Dow Jones Industrial Average, the S&P 500 and the Nasdaq were up about 0.2% at 7 a.m. ET. The Dow and the S&P 500 gained 0.7% on Friday after Powell spoke at the central bank's annual symposium in Jackson Hole, Wyoming. Powell noted signs of economic strength but said the Fed was "prepared to raise rates further if appropriate" and keep them high as long as needed to contain inflation. "Although inflation has moved down from its peak — a welcome development — it remains too high," Powell said.

CNBC

5. Unions in Georgia, Alabama pressure Hyundai over EV plants

Labor unions and civic groups in Georgia and Alabama are launching a push Monday to pressure non-union automaker Hyundai to increase training and protection for workers at its electrical-vehicle plants, noting the federal money it's getting from President Biden's signature green energy laws. The coalition hopes the effort will "push the Biden administration to make good on its oft-repeated pledge to create not just jobs but 'good union jobs,'" The New York Times reported. The nudge to persuade Hyundai could also increase pressure on other automakers, including BMW in South Carolina and Mercedes-Benz in Alabama, that have put new EV manufacturing resources in areas historically unfriendly to unions, according to the Times.

The New York Times

The daily business briefing: August 25, 2023

theweekonlineeditors@futurenet.com (Harold Maass, The Week US) — Fri, 25 Aug 2023 11:43:12 +0000

1. 2 Fed leaders say rate hikes nearly over

Two Federal Reserve officials indicated Thursday that the central bank was close to the end of its aggressive interest rate hikes to slow the economy and bring down inflation. "We may need additional increments, and we may be very near a place where we can hold for a substantial amount of time," Boston Fed President Susan Collins told Yahoo Finance before the Kansas City Fed's annual economic policy symposium in Jackson Hole, Wyoming. "We may be near, but we may need to increase a little bit further." She said multiple Fed leaders expect one more rate hike. Philadelphia Fed President Patrick Harker said the Fed had "probably done enough" and could now "let the restrictive stance work for a while."

Bloomberg

2. Mortgage rates surge to 22-year high

U.S. mortgage rates rose to their highest level since 2001 this week, according to data released Thursday by Freddie Mac. The 30-year fixed-rate mortgage averaged 7.23%, up from 7.09% last week. The rate on the same loan was 5.55% a year ago, when the Federal Reserve was earlier in its aggressive campaign to increase borrowing costs to slow the economy and bring down inflation. The economy has stayed stronger than anticipated even as inflation eases, fueling expectations that the Fed will keep rates high for now, said Sam Khater, Freddie Mac's chief economist. The higher rates have dragged down home sales, as owners with low mortgage rates resist putting their properties on the market.

Bloomberg

3. China bans Japanese seafood imports over nuclear wastewater discharge

Japan on Thursday started discharging tainted water from the ruined Fukushima Daiichi nuclear power plant over the objections of fishing communities, environmentalists and China, which responded by banning all seafood imports from Japan. Plant operator Tokyo Electric Power started pumping small quantities of nuclear wastewater from the plant, which was wrecked in a 2011 tsunami, two days after Japan's government approved the plan. Monitors from the United Nations, which also signed off, were dispatched to observe. The full discharge is expected to take 30 to 40 years. China called the project "extremely selfish and irresponsible." Critics say there's no long-term data to indicate what harm it could cause.

The Guardian

4. Stock futures inch up ahead of Powell speech

U.S. stock futures edged higher early Friday as investors awaited a high-profile speech by Federal Reserve Chair Jerome Powell at the central bank's annual symposium in Jackson Hole, Wyoming. Futures tied to the Dow Jones Industrial Average and the S&P 500 were up 0.3% at 6:30 a.m. ET. Nasdaq futures were up 0.1%. All three of the main U.S. indexes fell by more than 1% on Thursday as a rally that followed Nvidia's artificial-intelligence-fueled blockbuster earnings report fizzled. T-Mobile shares fell by more than 2% as the company said it would lay off 5,000 workers, 7% of its workforce, to cut costs as competition intensifies in the wireless industry.

CNBC The Wall Street Journal

5. Dollar Tree says theft dented profit margin

Dollar Tree on Thursday reported that its gross profit margin fell to 29.8% in the second quarter, compared to 32.7% a year earlier, largely due to "shrink," the term retailers use to describe inventory lost to theft and damage. Changing consumer preferences and higher fuel prices also contributed to the discount chain's rough quarter. Dollar Tree is taking steps to fight "shrink," including locking up some items and discontinuing others. Dollar Tree, Dollar General and other discount stores have long struggled with theft and even violent robberies in their stores, which often operate with just a few employees. Shares of Dollar Tree, which just agreed to conduct a nationwide safety assessment after worker complaints, dropped 10% on Thursday.

CNN Reuters

The daily business briefing: August 24, 2023

theweekonlineeditors@futurenet.com (Harold Maass, The Week US) — Thu, 24 Aug 2023 12:03:45 +0000

1. Nvidia outlook soars on explosive demand for AI chips

Nvidia said Wednesday it expects to see rapid growth as already strong demand for advanced chips for artificial intelligence systems explodes. The company's graphics processing units, or GPUs, are used in most AI systems, like ChatGPT. Nvidia reported that robust demand for the chips from customers like cloud computing services helped increase second-quarter revenue to $13.5 billion, up 101% from the same period last year. Profit shot up nine-fold to nearly $6.3 billion, beating projections the company released in May, according to The New York Times. Nvidia's May revenue estimate of $11 billion had pushed its market value above $1 trillion, a first.

The New York Times

2. BRICS leaders invite 6 nations to join developing world economic bloc

Leaders of the BRICS economic bloc, which Brazil, Russia, India, China and South Africa hope will boost the influence of the "Global South," agreed at a summit in South Africa on Thursday to invite six more nations — Saudi Arabia, Iran, Ethiopia, Egypt, Argentina, and the United Arab Emirates — to join. China and Russia are pushing to admit dozens of interested nations to beef up the bloc and make it a legitimate rival of the West's Group of Seven. But India has resisted, worried that new members would do whatever Beijing says and foil Delhi's effort to take a global leadership role. South African President Cyril Ramaphosa said the new candidates would be admitted on Jan. 1, 2024.

Reuters

3. Nvidia's AI-fueled blowout quarter lifts tech stocks

S&P 500 and Nasdaq futures gained early Thursday after chipmaker Nvidia smashed Wall Street's earnings estimates, fueling expectations for the artificial intelligence boom. Futures tied to the S&P 500 and the tech-heavy Nasdaq were up 0.5% and 1.1%, respectively, at 6:30 a.m. ET. Dow Jones Industrial Average futures were down 0.1%. "The entire tech sector and overall market was waiting for Nvidia, with this being the purest and best barometer for AI demand, and the results/guidance were a 'drop the mic' moment" that should "have a ripple impact for the tech space for the rest of the year," Dan Ives, senior equity analyst at Wedbush Securities, told CNBC. Rival chipmakers Taiwan Semiconductor and AMD rose 3.1% and 4%, respectively.

CNBC

4. Juul to lay off 30% of workforce

E-cigarette maker Juul Labs plans to lay off 30% of its employees to cut costs as it explores options, including raising capital or seeking a buyer, and appeals a ban of its products. Regulators last year ordered Juul products off the U.S. market but suspended the ban pending an appeal. The company is awaiting a final decision from the Food and Drug Administration. Meanwhile, illegal disposable vaping products have taken some market share, worrying potential investors. "We have been working, we have been fighting, we have been taking steps to go from unstable to stable," Juul chief executive K.C. Crosthwaite told staff Wednesday, The Wall Street Journal reported. "We know and firmly believe that our product applications deserve authorization."

The Wall Street Journal

5. Tornado Cash co-founders accused of laundering millions for North Korean hackers

Federal prosecutors charged two co-founders of cryptocurrency giant Tornado Cash with laundering more than $1 billion for North Korean hackers, according to a federal indictment unsealed Wednesday in New York. The indictment accused Roman Storm and Russian national Roman Semenov of using crypto "mixer" Crypto Cash to launder huge amounts of money to Lazarus Group, a North Korean cybercrime organization. "While publicly claiming to offer a technically sophisticated privacy service, Storm and Semenov in fact knew that they were helping hackers and fraudsters conceal the fruits of their crimes," U.S. Attorney Damian Williams said. Storm has been arrested. His lawyer, Brian Klein, said he was "incredibly disappointed" with the charges, because Storm merely "helped develop software." Semenov remains at large.

CNN

The daily business briefing: August 23, 2023

theweekonlineeditors@futurenet.com (Harold Maass, The Week US) — Wed, 23 Aug 2023 11:59:28 +0000

1. Teamsters ratify UPS contract, averting strike

UPS workers represented by the Teamsters union have ratified a tentative contract negotiated last month, ending a labor dispute that had threatened to disrupt package deliveries and business supply chains, the union announced Tuesday. The union said 86% of workers casting votes favored ratifying the agreement, the most overwhelming support for a contract in the Teamsters' history at UPS. The union represent 340,000 UPS delivery drivers and package sorters. The agreement calls for UPS to pay new part-time workers $21 an hour, up from $16.20. Existing workers will get a $2.75 hourly pay increase this year, and a $7.50 bump over the life of the five-year agreement. Teamsters leaders called it their "most lucrative" contract ever at UPS.

The Associated Press The Wall Street Journal

2. Dick's Sporting Goods blames retail theft for rough quarter

Dick's Sporting Goods on Tuesday reported a sharp drop in quarterly profit, saying increased retail theft was largely to blame. The company lowered its earnings outlook for the full year. Dick's said it expected to make $11.33 to $12.13 per diluted share this year. It's previous outlook projected $12.90 to $13.80 per share. The company said its quarterly net income was $244 million, a 23% drop from the same period last year even though sales rose 3.6%. Dick's shares plunged by more than 24% on Tuesday. President and CEO Lauren Hobart said during an earnings call that the results reflected fallout from "higher inventory shrink, organized retail crime and theft in general, an increasingly serious issue impacting many retailers."

USA Today

3. Conservative activist sues 2 law firms over diversity fellowships

Edward Blum, the conservative activist whose lawsuit resulted in the Supreme Court ending affirmative action in college admissions, is suing two law firms that offer diversity fellowships, arguing they result in illegal racial discrimination against white candidates. Blum and his American Alliance for Equal Rights anti–affirmative action organization asked the courts to bar the firms, which have offices in Texas and Florida, from considering race. In June, U.S. Equal Employment Opportunity Commission Chair Charlotte Burrows said the Supreme Court decision banning racial preferences in college admission didn't apply to employer diversity programs. The firms — Perkins Coie, being sued in Texas, and Morrison & Foerster, in Florida — were not immediately available for comment, The Wall Street Journal reported.

The Wall Street Journal

4. Stock futures up after rising Treasury yields drag down S&P, Dow

U.S. stock futures rose early Wednesday after concerns about rising Treasury yields dragged down the S&P 500 on Tuesday. Futures tied to the Dow Jones Industrial Average and the S&P 500 were up 0.3% and 0.4%, respectively, at 6:30 a.m. ET. Nasdaq futures were up 0.6%. The Dow and the S&P 500 fell 0.5% and 0.3%, respectively, on Tuesday. The tech-heavy Nasdaq edged up by less than 0.1%. Several banks fell after S&P Global cut credit ratings for a handful of U.S. banks due to "tough" conditions. Dick's Sporting Goods and Macy's dropped 24% and 14%, respectively, after the retailers released disappointing full-year forecasts.

CNBC

5. Study: Youngest baby boomers' earnings flatlined at age 45

The youngest baby boomers — those born from 1957 to 1964 — have struggled with flatlining earnings since they reached age 45, according to a Bureau of Labor Statistics report published Tuesday. For those without a college degree, earnings have fallen in their later years. Baby boomers, those born from 1946 to 1964, are the second largest chunk of the U.S. population after millennials. The new study is the most extensive yet on boomers aged 55 to 64, who were as young as 14 when first interviewed in 1979. The study found that their earnings surged until age 24 but their wage growth slowed through age 44, when it hit a wall, setting them up for big challenges as they approach retirement.

Bloomberg

The daily business briefing: August 22, 2023

theweekonlineeditors@futurenet.com (Harold Maass, The Week US) — Tue, 22 Aug 2023 11:59:33 +0000

1. SoftBank's Arm files for big IPO

SoftBank Group's Arm Holdings Ltd. on Monday filed for a Nasdaq stock listing, revealing details of what would be the biggest U.S. initial public offering of the year. Arm said in a long-awaited regulatory filing that Barclays, Goldman Sachs, JPMorgan Chase & Co. and Mizuho Financial Group are leading the offering. A successful IPO by Arm, a once-obscure designer of phone chips, would result in a big payday for SoftBank founder Masayoshi Son after his Vision Fund lost a record $30 billion in 2022. Arm plans to start pushing its debut in early September and price the shares a week later, according to Bloomberg. The sale is expected to raise $60 billion to $70 billion.

Bloomberg CNBC

2. India imposes onion export tax to fight domestic inflation

India over the weekend imposed a 40% tax on onion exports as part of an ongoing government effort to contain sharp increases in food prices. The levy will stay in place through the end of the year. Onions are a key ingredient in many Indian dishes, and traders said the new tax showed how desperate the government is to curb inflation ahead of important state elections later this year and a general election scheduled for 2024. "India is a country where the price of onions can knock down governments. It is a politically sensitive commodity," J. Holkar, an onion and potato trader in India's western Maharashtra state, told The Wall Street Journal. "It can make governments cry."

The Wall Street Journal

3. House Freedom Caucus issues demands to avoid government shutdown

The far-right House Freedom Caucus on Monday unveiled its demands to avoid a government shutdown. The group of about three dozen Republicans said it would oppose any stop-gap spending measure before the government runs short of money on Sept. 30 unless it includes more money for border enforcement, cuts for the Justice Department and Federal Bureau of Investigation, and a halt to "woke" Defense Department policies, according to Axios. Senate Majority Leader Chuck Schumer (D-N.Y.) and Minority Leader Mitch McConnell (R-Ky.) said earlier this month that a temporary spending measure would be needed to keep all federal agencies operating normally while lawmakers negotiate long-term spending bills.

Axios Politico

4. Stock futures rise after S&P 500, Nasdaq snap losing streaks

U.S. stock futures rose slightly early Tuesday after the S&P 500 and the Nasdaq snapped four-day losing streaks on Monday. Futures tied to the Dow Jones Industrial Average and the S&P 500 were up 0.2% and 0.4%, respectively, at 6:30 a.m. ET. Nasdaq futures were up 0.6%. The S&P 500 gained 0.7% on Monday while the tech-heavy Nasdaq surged by 1.6%, its biggest single-day gain of the month. The Dow fell 0.1% on Monday. The gains for the S&P 500 and the Nasdaq came despite an increase in the 10-year Treasury yield to 4.34%, its highest level since November 2007. Rising yields tend to increase borrowing costs and drag down tech companies reliant on growth.

CNBC

5. S&P Global Ratings downgrades several US banks

S&P Global Ratings on Monday announced downgrades for the credit ratings of several U.S. banks. S&P knocked down the ratings of KeyCorp, Comerica Inc., Valley National Bancorp, UMB Financial Corp., and Associated Banc-Corp by one notch. It also lowered its outlook for River City Bank and S&T Bank to negative from stable, citing high real-estate exposure. S&P explained the changes by saying that many depositors had "shifted their funds into higher-interest-bearing accounts, increasing banks' funding costs." The moves came two weeks after Moody's Investors Service cut its ratings for multiple U.S. banks, shaking up markets.

Bloomberg Reuters

The daily business briefing: August 21, 2023

theweekonlineeditors@futurenet.com (Harold Maass, The Week US) — Mon, 21 Aug 2023 11:57:31 +0000

1. Walmart, Centric investigate Cambodia supply chains

Walmart and Centric Brands have launched investigations into their Cambodia supply chains following questions from a U.S. industry group about "credible reports" of inmates at a women's prison being illegally employed to produce garments for export, Reuters reported Monday. The American Apparel and Footwear Association (AAFA) wrote about the allegations in a letter to Cambodia's ambassador to Washington, Keo Chhea, in November. Reuters reviewed the initial AAFA letter and another one pressing the issue with Cambodian authorities in February. The export of goods made by convicts is prohibited in the United States and Cambodia, according to Reuters, although the International Labor Organization, which Cambodia belongs to, allows unforced prison labor.

Reuters

2. Old Dominion tops Estes bid for bankrupt Yellow's trucking terminals

Old Dominion Freight Line outbid rival Estes Express Lines with a $1.5 billion offer for bankrupt trucker Yellow's extensive North American real-estate holdings, The Wall Street Journal reported Sunday. Estes had bid $1.3 billion. The strong interest from multiple parties indicated that there could be a hot bankruptcy court–supervised auction for Yellow's network of 169 truck terminals, likely giving Yellow more money than it needs to cover its debts. Yellow closed this summer after 99 years in business, but its terminals close to major cities have tremendous value to trucking and logistics companies competing to speed up delivers to U.S. homes.

The Wall Street Journal

3. Stock futures rise after losing week

U.S. stock futures rose slightly early Monday as Wall Street struggled to bounce back after its latest losing week. Futures tied to the Dow Jones Industrial Average and the S&P 500 were up 0.3% and 0.5%, respectively, at 6:30 a.m. ET. Nasdaq futures were up 0.6%. The Dow and the S&P 500 continued a late-summer slump last week, falling 2.2% and 2.1%, respectively. The tech-heavy Nasdaq fell 2.6%, extending its first three-week losing streak since December. Investors are showing concern about rising bond yields and data showing China's economy, the world's second largest, is weakening.

CNBC

4. 'Blue Beetle' knocks 'Barbie' out of top spot at domestic box office

"Blue Beetle" ousted "Barbie" from the top spot at the domestic box office despite a weaker-than-expected debut. The new DC superhero adventure brought in $25.4 million in North America and another $18 million in 63 markets overseas, one of the lowest-grossing openings for a DC film. "After a dozen nearly flawless years, the [comic book] genre has performed unevenly during the last three and a half years," said David A. Gross of movie consulting firm Franchise Entertainment Research. The Greta Gerwig fantasy-comedy "Barbie" was No. 2 after four straight weeks at No. 1, with $21.5 million in domestic ticket sales, putting it a few million away from surpassing Universal's animated "The Super Mario Bros. Movie" ($574 million) as the biggest domestic release of 2023.

Variety

5. Adobe co-founder John Warnock dies at 82

John Warnock, co-founder of Photoshop maker Adobe, has died, Adobe said Sunday. He was 82. Warnock started the company with Charles Geschke in 1982, retiring as CEO in 2000. He served as chief technical officer until he retired a year later in 2001. He stayed on as chair of Adobe's board of directors until 2017, sharing the job with Geschke. "It is a sad day for the Adobe community and the industry for which he has been an inspiration for decades," Adobe CEO Shantanu Narayen said in an email to employees. No cause death was immediately released. Geschke died in 2021, at age 81.

Reuters Bloomberg

The daily business briefing: August 18, 2023

theweekonlineeditors@futurenet.com (Harold Maass, The Week US) — Fri, 18 Aug 2023 12:15:38 +0000

1. Walmart sales beat expectations as shoppers seek bargains

Walmart on Thursday reported second quarter sales and earnings that exceeded analysts' expectations, thanks to shoppers seeking bargains. Walmart posted quarterly sales of $161.6 billion, beating analysts' estimates of $160.2 billion, according to FactSet. Its earnings were $1.84 per share, topping consensus estimates of $1.71 a share. Walmart CEO Doug McMillon said the discount big-box retailer got a boost from shoppers trying to stretch their budgets as higher interest rates, rising gas prices and the resumption of student loan payments left them short of cash. Walmart also raised its full-year profit outlook by roughly 2%, sending its stock price up about 1% to a near-record $160.

Forbes

2. Mortgage rates surge to a 21-year high

Mortgage rates jumped above 7% to a 21-year high this week, the latest fallout from the Federal Reserve's interest rate hikes to fight inflation. The average 30-year fixed-rate mortgage reached 7.09%, up from 6.96% last week, Freddie Mac said on Thursday. The rate on the 30-year mortgage — the most popular U.S. home loan — was 5.13% a year ago. Rising mortgage rates are putting homes out of reach for an increasing number of would-be buyers. Sales of existing homes fell nearly 19% in June compared to a year earlier, according to the National Association of Realtors. "The new reality has jolted the housing market," said Jeff Ostrowski, an analyst at the personal finance company Bankrate.

The New York Times

3. China Evergrande files for bankruptcy protection in US

Giant property developer China Evergrande filed for bankruptcy protection in New York on Thursday as it continues to struggle with massive debts. The Chinese company defaulted on its debt in 2021, triggering the defaults of multiple smaller developers. Country Garden, another big developer, has missed payments to lenders it owes $200 billion, and could face default, too. Evergrande's meltdown came after Beijing cracked down on speculation in the housing sector and excessive borrowing. The company's crash marked the start of the decline of China's real estate sector, which is weakening the world's No. 2 economy. As of last year, Evergrande, which has some assets in the United States, had $335 billion in liabilities.

The Guardian The New York Times

4. Stock futures slip after another losing day

U.S. stock futures edged lower early Friday after the three main U.S. indexes fell for the third straight day. Futures tied to the Dow Jones Industrial Average and the S&P 500 were down 0.1% at 6:30 a.m. ET. Nasdaq futures were down 0.3%. The S&P 500 is on track to post its third consecutive losing week, its worst losing streak since February. The tech-heavy Nasdaq is headed for its first three-week losing streak since December. The 10-year U.S. Treasury yield hit its highest level since October 2022 after July Federal Reserve meeting minutes suggested the central bank might raise interest rates again due to lingering inflation concerns. "If yields continue to move like they're moving, there's going to be some ramifications for global equity markets," Private Advisor Group's Guy Adami told CNBC's "Fast Money."

CNBC

5. Bitcoin falls, touching a 2-month low

Bitcoin fell briefly to a two-month low on Friday after losing 7.2% on Thursday, its biggest one-day drop since cryptocurrency exchange FTX collapsed in November 2022. Ether, the world's second-biggest cryptocurrency, fell on Thursday but held steady early Friday. The declines came as global markets struggled due to concerns about China's economic troubles, and the possibility that the Federal Reserve could keep interest rates higher for longer than previously expected to fight inflation as the economy remained strong. Some analysts said cryptocurrency was falling due to a Wall Street Journal report that crypto-booster Elon Musk's SpaceX had sold its bitcoin holdings. Previously, Musk's tweets about digital currency have affected prices.

Reuters

The daily business briefing: August 17, 2023

theweekonlineeditors@futurenet.com (Harold Maass, The Week US) — Thu, 17 Aug 2023 12:00:00 +0000

1. Aldi to buy Winn-Dixie parent Southeastern Grocers

Discount grocer Aldi announced Wednesday that it had reached a deal to buy Florida-based Southeastern Grocers, the parent company of the Winn-Dixie and Harveys chains. The proposed merger would give Aldi 400 Winn-Dixie and Harveys supermarkets in the southern U.S., including Florida. The acquisition is expected to close in the first half of 2024 if regulators approve it. Aldi, based in Germany with a U.S. headquarters in Illinois, did not disclose the terms of the deal. Both companies are private. Aldi said the purchase was part of a growth plan that will give it 2,400 stores in the U.S. by the end of 2023.

NPR

2. US bond yield rises to 15-year high

The yield on the 10-year U.S. Treasury note rose Wednesday to a 15-year high, stoking fears of fallout from rising borrowing costs. The 10-year yield, a benchmark for interest rates that affect many consumers, settled at 4.258%, up from 4.220% on Tuesday, according to Tradeweb. That was the highest close for the bonds since June 2008. The 10-year yield is still significantly below the target rate set by the Federal Reserve, which has been aggressively raising rates to slow the economy and bring down inflation. That means the 10-year Treasury yield could continue climbing, The Wall Street Journal noted. Investors demand higher yields on these bonds to offset inflation risk.

The Wall Street Journal

3. Target shares rise despite sales slump from Pride Month backlash

Target's stock gained 3% on Wednesday even though the retailer reported that conservative backlash over its Pride Month collection had hurt its second-quarter sales. The company also slashed its full-year guidance. Target said sales fell 5.4% compared to the same quarter last year. Online sales fell 10.5%. Still, the company said profit margins increased beyond analysts' expectations as it offered fewer discounts and cut some costs. Target has faced a conservative boycott since May, when some shoppers objected to its Pride Month products and displays celebrating the LGBTQ community.

The New York Times

4. Fed minutes suggest more rate hikes possible

Federal Reserve minutes released Wednesday indicated that policymakers expressed concerns at their July meeting that it could take more interest rate hikes to slow the economy enough to bring inflation down to the central bank's 2% target. The doubts suggested the Fed might hike rates again in September. Fed officials unanimously voted in July to raise interest rates by a quarter-point to a range of 5.25-5.5%, a 22-year high. According to the minutes, Fed officials "noted the recent reduction in total and core inflation rates" but "stressed that inflation remained unacceptably high and that further evidence would be required for them to be confident that inflation was clearly on a path toward the committee's 2% objective."

CNN

5. Stock futures edge up after latest Fed comments

U.S. stock futures rose slightly early Thursday after the release of Federal Reserve meeting minutes indicating that more interest rate hikes might be necessary to bring down inflation. Futures tied to the Dow Jones Industrial Average, the S&P 500 and the Nasdaq were up about 0.2% at 6:30 a.m. ET. The three major U.S. indexes fell on Wednesday on concerns about rising borrowing costs. The Dow and the S&P 500 fell 0.5% and 0.8%, respectively. The tech-heavy Nasdaq dropped 1.2%. Investors will be watching fresh corporate earnings on Thursday, along with the weekly report on jobless claims.

CNBC

The daily business briefing: August 16, 2023

theweekonlineeditors@futurenet.com (Harold Maass, The Week US) — Wed, 16 Aug 2023 11:46:01 +0000

1. Intel drops $5.4 billion Tower Semiconductor deal

Intel said Wednesday it is scrapping its $5.4 billion acquisition of Israeli chip manufacturer Tower Semiconductor. The two companies "mutually agreed" to end the deal after Chinese antitrust regulators failed to announce a ruling on the merger plan before a deadline the companies had set. Intel has long operated in China, and its decision to drop the Tower acquisition could add to concerns of U.S. companies deeply involved in China as tensions escalate between Washington and Beijing. The planned Intel-Tower merger was announced in February 2022 and had already withstood antitrust scrutiny in the U.S. and Europe.

The New York Times

2. US retail spending surged in July

Americans increased retail spending last month despite the Federal Reserve's aggressive interest rate hikes intended to cool the economy and reduce inflation. Spending at stores, online and in restaurants rose by a seasonally adjusted 0.7% in July compared to June, the Commerce Department reported Tuesday. That was up from a 0.3% gain in June and the fastest pace since the beginning of 2023. The gain exceeded the 0.2% increase in consumer prices last month, indicating that spending is rising faster than prices. Spending could slow after a summer splurge on travel and entertainment, experts said. Target on Wednesday reported quarterly sales that fell short of expectations. The big-box retailer cut its full-year forecast as it struggled to get customers to buy non-essential goods.

The Wall Street Journal CNBC

3. Tesla shares fall after latest cuts in EV price wars

Tesla shares fell 2.8% on Tuesday after the electric-vehicle maker unveiled its latest price cuts in its 2023 EV price war. Shares of luxury EV startups Rivian and Lucid also fell. Tesla introduced new, shorter-range versions of its Model S and Model X vehicles late Monday with base prices reduced by $10,000. Tesla's new standard Model S is now listed at $78,490. It has a range of 320 miles on a charge. The new standard Model X is priced starting at $88,490. Its range is 269 miles per charge. Tesla's stock price has retreated as Cathie Wood and her Ark Invest firm sold nearly 120,000 shares in the last three sessions.

Investor's Business Daily

4. Stock futures flat after Tuesday losses

U.S. stock futures were little changed early Wednesday following Tuesday's losses. Futures tied to the Dow Jones Industrial Average and the S&P 500 were flat at 6:30 a.m. ET. Nasdaq futures were up 0.1%. All three of the major indexes fell more than 1% on Tuesday. Financial stocks fell on Tuesday after Fitch downgraded the credit ratings of numerous banks, adding to concerns following Moody's downgrades of 10 banks last week. More disappointing economic news from China also hurt investor sentiment. The MCSI China Index fell by as much as 1.3% on Wednesday after Beijing released disappointing economic data that fueled concerns about what Manish Bhargava, a fund manager at Straits Investment Holdings in Singapore, described as China's "recession-like conditions."

CNBC Bloomberg

5. Vietnamese EV maker VinFast's shares skyrocket in debut

Vietnamese electric-vehicle maker VinFast's shares more than doubled Tuesday as trading opened in the startup's $23 billion backdoor listing. The stock opened at $22 after its special purpose acquisition company (SPAC) partner Black Spade Acquisition agreed to a $10 per share price that valued the company at $23 billion. The price rose still higher during the day, closing at $37.06. That valued the EV maker at $85 billion — far above the $48 billion and $46 billion market caps of Ford and General Motors, respectively — even though it hasn't posted a profit yet. VinFast has shipped nearly 3,000 vehicles to North America but sales have started slowly.

Reuters

The daily business briefing: August 15, 2023

theweekonlineeditors@futurenet.com (Harold Maass, The Week US) — Tue, 15 Aug 2023 11:46:12 +0000

1. Russia's central bank raises interest rates 3.5% after ruble crashes

The Russian central bank hiked interest rates by 3.5 percentage points on Tuesday in an emergency meeting after the ruble crashed. The policymakers raised their benchmark rate to 12% from 8.5% in a decision "aimed at limiting price stability risks," the central bank said. The move reflects concerns about the impact of President Vladimir Putin's invasion of Ukraine on Russia's economic stability. The ruble has lost a quarter of its value during the war and inflation has averaged an annual rate of 7.1% in recent months, far above the central bank's 4% target. Timothy Ash, senior emerging-market sovereign strategist at RBC Bluebay Asset Management, said the ruble will keep falling "unless the core problem, the war and sanctions, are resolved."

The New York Times Bloomberg

2. Hawaii utility shares dive on concerns about wildfire fallout

Hawaiian Electric Industries stock plunged 34% on Monday, adding to an earlier decline of 42%, as investors dumped the company's shares on concerns that its power lines could turn out to be linked to Maui's deadly wildfires. Hawaiian Electric operates the utility that serves Maui. It has faced criticism for deciding not to turn off power in vulnerable areas despite warnings from weather forecasters that dry, powerful winds could fuel dangerous fire conditions. Plaintiffs' attorneys are expected to file lawsuits later this week arguing that the utility's equipment started fires. Hawaii Attorney General Anne Lopez is investigating the official response to the fires. The death toll in Maui rose to 99 people on Monday.

Honolulu Star-Advertiser

3. Japan's exports fuel growth, but the domestic economy struggles

Japan reported Tuesday that its economy grew at an annualized rate of 6% in the second quarter, its third straight quarter of growth. First-quarter growth was revised up to 3.7%. The figures provided strong evidence that Japan is roaring back after an extended slowdown from the coronavirus pandemic. Exports drove the expansion, which more than doubled the growth rate forecast by economists polled by Bloomberg. Sayuri Shirai, a professor of economics at Keio University and a former board member of the Bank of Japan, said there is still reason for concern, because strong exports were "the only reason" for the recovery to pre-pandemic gross domestic product. At home, consumption fell, she noted, in a sign "the domestic economy is not doing well."

The New York Times

4. Stock futures fall after China warning signs

U.S. stock futures slipped early Tuesday after China released downbeat industrial data and announced a surprise interest rate cut, fueling pessimism about the state of the world's No. 2 economy. Futures tied to the Dow Jones Industrial Average and the S&P 500 were down 0.6% at 6:30 a.m. ET. Nasdaq shares were down 0.7%. Shares of big banks, including JPMorgan Chase, Citigroup, Wells Fargo and Bank of America fell in pre-market trading after Fitch Ratings warned it might downgrade dozens of banks. Wall Street gained on Monday. The Dow and the S&P 500 rose 0.1% and 0.6%, respectively, while the tech-heavy Nasdaq surged by 1.1%.

CNBC

5. Conservative group sues Target over shareholder losses since Pride boycott started

A conservative legal group led by former Trump adviser Stephen Miller on Tuesday filed a lawsuit against Target that blames shareholder losses on conservative boycotts over the retailer's Pride Month displays. The lawsuit by Miller's America First Legal accuses Target of misleading investors by assuring them it was keeping on top of risks from its diversity and inclusion policies. Target has faced protests and threats over Pride displays since mid-May. The company's stock has fallen 20 percent since then. America First Legal argues the decline is a "direct and predictable result" of the decision to promote "sexualized" material, referring to LGBTQ Pride items. Legal experts said it would be difficult to pin Target's losses on the boycott, since the stock was already falling.

The Washington Post

The daily business briefing: August 14, 2023

theweekonlineeditors@futurenet.com (Harold Maass, The Week US) — Mon, 14 Aug 2023 11:44:18 +0000

1. US Steel rejects Cleveland-Cliffs offer

U.S. Steel has rejected an unsolicited offer from rival Cleveland-Cliffs that valued U.S. Steel at more than $7 billion, The Wall Street Journal reported Sunday. Cleveland-Cliffs called the rejection of its bid by U.S. Steel's board "unreasonable." Cleveland-Cliffs had offered $17.50 a share plus 1.023 shares of its stock, with an implied value of $35 a share, marking a significant premium over U.S. Steel's $22.72 closing price on Friday. U.S. Steel said it would continue to go over "strategic alternatives." A deal would have reshaped the nation's steel industry, which is dominated by U.S. Steel, Cleveland-Cliffs, Nucor and Steel Dynamics.

The Wall Street Journal TheStreet

2. Democrats target 'junk fees'

Congressional Democrats and President Biden are targeting "junk fees" in a series of public events geared toward connecting with voters on economic issues, The Associated Press reported Sunday. Biden promised in this year's State of the Union address to do something about the fees, which are frequently added to everything from plane tickets to hospital bills. The effort is connected to the Biden administration's effort to spotlight "Bidenomics" policies aimed at stimulating the economy by increasing social spending and boosting the middle class. Will Reinert, a spokesman for the National Republican Congressional Committee, said Democrats want "to talk about 'junk fees' because they know Biden's economy is trash."

The Associated Press

3. Goldman Sachs predicts 1st Fed rate cut by June 2024

Goldman Sachs economists said in a Sunday note that they expected the Federal Reserve to start gradually lowering interest rates by the end of June 2024. The Fed has aggressively raised interest rates since last year to bring down high inflation. The federal government last week released data showing that core inflation, which excludes volatile food and energy costs, was down to an annual pace of 4.7% in July, with overall inflation at a slower-than-expected 3.2%, still above the central bank's 2% target. Goldman said it expects the Federal Open Market Committee to pause its rate hikes next month and conclude at its November meeting "that the core inflation trend has slowed enough to make a final hike unnecessary."

Bloomberg

4. US stock futures rise slightly after rough August start

U.S. stock futures edged higher early Monday after a shaky start to August trading that disrupted Wall Street's long rally. 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 gained 0.6% last week — its fourth positive week in the last five — but the S&P 500 and the tech-heavy Nasdaq fell 0.3% and 1.9%, respectively. Earnings and data due out this week are expected to show how consumers are doing as inflation eases but remains above the Federal Reserve's 2% target. Home Depot, Target and Walmart report quarterly earnings. July retail sales data is set to be released Tuesday.

CNBC

5. 'Barbie' leads domestic box office for 4th week

"Barbie" led the domestic box office for the fourth straight weekend, bringing in another $33.7 million. The hit movie made another $45 million in weekend ticket sales overseas, lifting the Greta Gerwig comedy's global earnings to $1.2 billion. The film about the iconic doll, starring Margot Robbie and Ryan Gosling, is now the second-highest-grossing Warner Bros. release ever. "Oppenheimer," the second half of the "Barbenheimer" duo that has supercharged the summer movie season, bounced back to the No. 2 spot in its fourth week after slipping to No. 3 a week ago. The Christopher Nolan–directed Universal Pictures film about the atomic-bomb scientist added another $18.8 million to bring its overall domestic total to $264.3 million.

Variety The Associated Press

The daily business briefing: August 11, 2023

theweekonlineeditors@futurenet.com (Harold Maass, The Week US) — Fri, 11 Aug 2023 11:28:25 +0000

1. Cooling core inflation eases pressure for Fed rate hikes

The consumer price index rose just 0.2% in July, the same increase as in June, the Labor Department reported Thursday. The annual inflation rate was 3.2%, up from a 3% pace in June. Core inflation, which excludes volatile food and energy prices, fell to an annual rate of 4.7% from 4.8% in June. The cooling price pressures raised expectations the Federal Reserve will hold off on raising interest rates again at its September meeting. Fed officials tend to focus on core inflation, and the new numbers added to recent data calling into question the need for another rate hike this year. "Core inflation has turned the corner faster" than the Fed expected, Laurence Meyer, a former Fed governor, told The Wall Street Journal.

Reuters The Wall Street Journal

2. California regulators approve expanded San Francisco driverless-taxi service

The California Public Utilities Commission voted 3-1 on Thursday to allow the expansion of driverless-taxi services in San Francisco. The decision will let Cruise and Waymo offer paid rides in autonomous vehicles any time during the day throughout the city. Before the vote, Google-owned Waymo and General Motors-owned Cruise had to operate under strict limits. Cruise could only take passengers paying fares between 10 p.m. to 6 a.m. in a few neighborhoods. Waymo couldn't charge for driverless rides. The commission's decision came after a seven-hour public hearing and months of objections by city officials and civic groups, who argue that driverless cars pose safety hazards.

San Francisco Chronicle The New York Times

3. Supreme Court puts Purdue Pharma opioid settlement on hold

The Supreme Court on Thursday temporarily blocked Purdue Pharma's controversial bankruptcy settlement pending an appeal. The settlement with the OxyContin maker called for members of the Sackler family, who once controlled the company, to pay $6 billion but shielded them from future lawsuits over their liability in the nation's opioid epidemic. The high court's unsigned decision, which noted no dissents, came in response to the Justice Department's objection to the plan. The Biden administration argues that the settlement let the billionaire Sacklers use legal protections meant for debtors in "financial distress." The decision is expected to delay payments to the thousands of plaintiffs who have sued Purdue and the Sacklers, according to The New York Times.

USA Today The New York Times

4. Stock futures mixed ahead of July wholesale price data

U.S. stock futures struggled early Friday as traders awaited a federal report on July wholesale prices and digested Thursday's data on consumer prices. Futures tied to the Dow Jones Industrial Average were little changed at 7 a.m. ET. S&P 500 and Nasdaq futures were down 0.1% and 0.2%, respectively. Wall Street edged higher Thursday after consumer price index data showed core inflation cooled slightly in July. Economists surveyed by Dow Jones expect the producer price index, due out at 8:30 a.m. ET, to show a 0.2% monthly increase in July. European and Asian stocks fell on Friday as investors avoided risk after San Francisco Reserve Bank President Mary Daly said the Fed has "more work to do" to fight inflation.

CNBC Bloomberg

5. Report: Amazon dropping most of its in-house brands

Amazon is eliminating 27 of its 30 in-house clothing brands, including Lark & Ro, Daily Ritual, and Goodthreads, as it pares down its private-label business to boost profit and deflect antitrust concerns, The Wall Street Journal reported Thursday. Amazon will be left with three brands — Amazon Essentials, Amazon Collection, and Amazon Aware. Amazon also will phase out private-label furniture brands Rivet and Stone & Beam once it sells off current inventory, the Journal reported, citing people familiar with the matter. Amazon Basics' popular home goods and tech accessories will remain a focus, Matt Taddy, vice president of Amazon Private Brands, said in a statement to the Journal, but the online retailer will continue eliminating products that "aren't resonating with customers."

The Wall Street Journal

The daily business briefing: August 10, 2023

theweekonlineeditors@futurenet.com (Harold Maass, The Week US) — Thu, 10 Aug 2023 11:46:59 +0000

1. Biden signs order banning some China technology investment

President Biden on Wednesday signed an executive order proposing new restrictions on investment and the transfer of expertise in sensitive high-tech industries in China that could be used to benefit the country's military. The Biden administration said the order aimed to protect national security by prohibiting venture capital and private equity firms from investing in Chinese companies working on semiconductors and other microelectronics, quantum computers and advanced artificial intelligence applications. The order comes at a tense moment in U.S.-China relations. China said it was part of an ongoing push by Washington to contain its rise, accusing the United States of trying to "politicize and weaponize trade."

The Washington Post The New York Times

2. Disney raises prices as streaming losses continue

Walt Disney Co. on Wednesday reported that its streaming losses narrowed to $512 million in the most-recent quarter, as Disney+ lost about 11.7 million subscribers worldwide, leaving it with 146.1 million. Disney has now lost more than $11 billion on streaming since 2019, when it introduced Disney+. CEO Bob Iger is shifting the entertainment giant's strategy to make streaming profitable, steering away from the expensive marketing campaigns necessary to sign up more paying customers and instead working on getting more money from existing Disney+ and Hulu subscribers. Disney hiked the price for ad-free Disney+ access to $11 a month in December, from $8. The company is raising the price of the ad-free version again, to $14 per month.

Los Angeles Times The New York Times

3. Novo Nordisk agrees to buy Inversago Pharma

Wegovy maker Novo Nordisk has agreed to buy Inversago Pharma for up to $1.1 billion, the companies announced Thursday. The final price of Inversago, which makes experimental obesity and diabetes treatments, will depend on progress toward development and sales goals. Novo Nordisk reported quarterly earnings on Thursday, saying its net profit increased 43% as sales jumped 30%. The Danish company is working on collaborations to get new technologies into its pipeline, even as it's struggling to keep up with demand for Wegovy, a popular weight-loss medicine. The company said in May it would collaborate with ElevateBio LLC on gene-editing therapies for rare diseases and obesity-linked disorders, according to Bloomberg.

Bloomberg

4. Stock futures rise ahead of key inflation report

U.S. stock futures gained early Thursday ahead of key inflation data seen as a clue to the Federal Reserve's next decision on interest rates. Futures tied to the Dow Jones Industrial Average and the S&P 500 were up 0.5% at 6:30 a.m. ET. Nasdaq futures were up 0.6%. The Labor Department is scheduled to release the July consumer price index at 8:30 a.m. ET. Economists polled by Dow Jones expect an increase of 0.2% compared to June, and 3.3% inflation on an annual basis, adding to indications that the Fed's aggressive campaign to raise borrowing costs is working to slow the economy and bring down inflation. The Dow and the S&P 500 fell 0.5% and 0.7%, respectively, on Wednesday. The Nasdaq fell 1.2%, as shares of major components Nvidia, Tesla, and Facebook parent company Meta fell sharply, according to The Wall Street Journal.

CNBC The Wall Street Journal

5. Alibaba shares rise after quarterly report smashes expectations

U.S.-traded shares of China's Alibaba jumped 3.5% in pre-market trading Thursday after the e-commerce giant reported 14% revenue growth in the latest quarter compared to the same period last year. The revenue increase was the company's biggest since the third quarter of 2021, according to Refinitiv data. Profit was up 51%, year-on-year. The company's revenue and profit exceeded analysts' expectations. Alibaba made progress in its push into overseas markets, with its international retail revenue rising 60% to $2.4 billion. "The strong showing is a boost for Alibaba's comeback effort, after a lethargic year in which it fought post-Covid economic turbulence, up-and-comers like PDD Holdings Inc. and regulatory curbs on its main business," Bloomberg reported.

Bloomberg CNBC

The daily business briefing: August 9, 2023

theweekonlineeditors@futurenet.com (Harold Maass, The Week US) — Wed, 09 Aug 2023 11:38:17 +0000

1. China exports fall, consumer prices drop

Beijing on Wednesday reported that its exports to the rest of the world plunged in July at their fastest pace since February 2020, as Western manufacturers reduced their reliance on Chinese suppliers. The decline threatened to slow China's recovery from the coronavirus crisis despite government efforts to stimulate the world's second largest economy. Nomura economists wrote in a note to investors that exports will probably keep falling through 2023. China's National Bureau of Statistics also reported that consumer prices fell 0.3% and producer prices fell 4.4% in July compared to a year earlier, as demand remained weak despite the lifting of pandemic restrictions.

The Wall Street Journal The New York Times

2. Los Angeles city workers stage 1-day walkout

Thousands of Los Angeles municipal workers walked off the job for a one-day strike on Tuesday, in the first major walkout by the city's employees in decades. The striking employees — including airport custodians, lifeguards, traffic officers, engineers, and sanitation workers — accused the city of unfair labor practices and refusing to bargain in good faith, saying job vacancies were forcing them to work longer hours for less pay. "L.A. city you're no good," workers wearing purple union T-shirts chanted at Los Angeles International Airport. "Treat your workers like you should." Mayor Karen Bass and other officials denied that the city was being unfair, and said no services would shut down during the strike.

Los Angeles Times

3. Stock futures firm up after Tuesday's losses

U.S. stock futures rose slightly early Wednesday after Tuesday's losses. Futures tied to the Dow Jones Industrial Average, S&P 500 and Nasdaq were all up 0.1% at 7:30 a.m. ET. The major indexes fell on Tuesday after Moody's downgraded 10 small and mid-sized U.S. lenders, dragging down bank stocks and dampening investor sentiment. The Dow and the S&P 500 closed down a little more than 0.4%, while the tech-heavy Nasdaq fell 0.8%. Some analysts said the pullback could indicate trouble, while others said it was to be expected after this year's rally. "I think you're just seeing a little bit of a breather," Victoria Greene, chief investment officer G Squared Private Wealth, told CNBC's "Closing Bell: Overtime."

CNBC

4. ESPN combines with Penn Entertainment to create ESPN Bet

ESPN and Penn Entertainment on Tuesday announced a 10-year deal to create an online sports betting brand called ESPN Bet. Penn will pay ESPN $2 billion for the use of its name, marketing and talent. Penn will relaunch its Barstool-branded online app as ESPN Bet, and operate it. ESPN Chair Jimmy Pitaro said combining ESPN's brand and Penn's sports-book experience offered a "tremendous opportunity to serve the ever-growing number of consumers interested in betting." Penn bought a stake in Barstool Sports, a controversial sports media company founded by Dave Portnoy, in 2020 and acquired the rest of the company earlier this year, but its Barstool-branded sportsbook struggled to gain market share. Penn said Tuesday it had sold Barstool back to Portnoy.

The New York Times The Washington Post

5. Sony reports profit drop as Hollywood strikes delay films

Sony reported Wednesday that its fiscal first-quarter profit fell 17% from a year earlier, fueling concerns about the financial fallout from strikes by Hollywood writers and actors. The Japanese electronics and entertainment company posted quarterly profit of $1.5 billion, down from about $1.8 billion a year ago. Sony said a favorable exchange rate boosted the results, while revenue in its movie operations was expected to suffer due to the Writers Guild of America and Screen Actors Guild-American Federation of Television and Radio Artists strikes, which have resulted in delays to movie and TV show releases. Sony Pictures profit fell to $115 million, a 68% drop from the same period in 2022.

The Associated Press The Hollywood Reporter

The daily business briefing: August 8, 2023

theweekonlineeditors@futurenet.com (Harold Maass, The Week US) — Tue, 08 Aug 2023 11:33:56 +0000

1. Paramount reaches deal to sell Simon & Schuster to KKR

Paramount on Monday announced a deal to sell Simon & Schuster to the private-equity firm KKR for $1.6 billion. The sale will give KKR one of the biggest U.S. publishing houses, with big-name authors including Stephen King and Bob Woodward, increasing the presence of financial firms in the publishing industry. Jon Karp, chief executive of Simon & Schuster, told The New York Times that he was "thrilled" with the deal. "They plan to invest in us and make us even greater than we already are," he said. "What more could a publishing company want?" Karp will remain the company's CEO. An attempt to sell Simon & Schuster to rival publisher Penguin Random House was disrupted by government antitrust concerns.

The New York Times

2. Tesla shares dip after CFO steps down

Tesla shares closed down nearly 1% on Monday after the electric-vehicle maker announced that Chief Financial Officer Zach Kirkhorn had stepped down as the company prepares to launch its Cybertruck electric pickup. Kirkhorn had been in the position for more than four years, working behind the scenes to execute the plans of the EV maker's billionaire CEO, Elon Musk. Tesla had a market value of $50 billion when Kirkhorn took the job, and it's now worth more than $780 billion. Kirkhorn's departure fueled questions about the company's succession plans, because some board members had suggested him as a potential eventual successor to Musk, The Wall Street Journal reported. Tesla said Chief Accounting Officer Vaibhav Taneja was replacing Kirkhorn.

Axios The Wall Street Journal

3. Moody's downgrades 10 U.S. banks

Moody's on Monday cut credit ratings for 10 small to mid-sized banks. The ratings agency also said it might downgrade some of the biggest U.S. lenders, including U.S. Bancorp, Bank of New York Mellon Corp., State Street Corp. and Truist Financial Corp., under a continuing review of the strength of the industry. Moody's said in a series of notes that its review of the banks was prompted by higher funding costs, potential regulatory capital weaknesses, and rising risks tied to commercial real estate loans amid weakening demand for office space, according to Bloomberg. "Collectively, these three developments have lowered the credit profile of a number of U.S. banks, though not all banks equally," Moody's wrote.

Bloomberg Reuters

4. Stock futures fall after Monday's surge

U.S. stock futures fell early Tuesday after Monday's strong gains. Futures tied to the Dow Jones Industrial Average, the S&P 500, and the Nasdaq were all down 0.5% at 6:30 a.m. ET. The Dow rose 1.2% on Monday, and the S&P 500 and the tech-heavy Nasdaq gained 0.9% and 0.6%, respectively, as blue-chip stocks gained. Berkshire Hathaway led the way, closing at a record high after swinging to a second-quarter profit. Stocks have benefited from a strong earnings season. About 85% of the S&P stocks have reported second-quarter earnings, and almost 80% of them have exceeded analysts' expectations, according to FactSet. Bank shares came under pressure on Tuesday after Moody's downgraded 10 small and mid-sized lenders. Investors are waiting for July's consumer price index report, which comes out Thursday.

CNBC The Wall Street Journal

5. Zoom tells workers to return to the office

The post-pandemic return to the office has reached a milestone, with video communications company Zoom telling employees it wants those who live near an office to work in-person at least two days per week. Zoom, which became a household name during the pandemic as companies used its video-conferencing service to let employees work from home or while traveling, said the mandate would apply to anyone living within 50 miles of an office, according to an emailed statement first reported by Business Insider. "We believe that a structured hybrid approach" works best for the company, Zoom said. "As a company, we are in a better position to use our own technologies, continue to innovate, and support our global customers."

The Washington Post Business Insider

The daily business briefing: August 7, 2023

theweekonlineeditors@futurenet.com (Harold Maass, The Week US) — Mon, 07 Aug 2023 11:49:04 +0000

1. Texas power prices soar as heat spurs record demand

Texas power prices jumped more than 800% on Sunday as extreme heat sent demand for electricity skyrocketing to record levels. Electricity prices on the state's grid reached more than $2,500 per megawatt-hour for Sunday evening as people across the state cranked up air-conditioning. The high on Saturday was about $275, according to data from grid operator Electric Reliability Council of Texas (ERCOT). The surplus of available capacity versus power consumption narrowed to as little as 1.6 gigawatts, a level that can trigger emergency responses, although the grid operator said it had other reserves to help it meet peak demand. ERCOT issued a weather watch that will remain in effect through Monday "due to forecast higher temperatures, higher demand and potential lower reserves."

Bloomberg

2. 'Barbie' reaches the $1 billion milestone

"Barbie" dominated the domestic box office for a third straight weekend and reached the $1 billion milestone after just 17 days in theaters. The movie about the iconic Mattel doll, directed by Greta Gerwig, brought in another $53 million in North America ticket sales, down just 43% from the previous week. That was enough to lift its domestic total to $459 million and make Gerwig the first woman director to pass the billion-dollar mark in global sales. Christopher Nolan's "Oppenheimer" had another strong weekend with $28.7 million in North America, down 39% from last weekend. It slipped into third place behind the sequel to "The Meg" and ahead of "Mutant Mayhem."

Variety The New York Times

3. Stock futures rise ahead of inflation data

U.S. stock futures rose early Monday following a losing week that ended with a jobs report that showed hiring continued to slow in July but remained strong. Futures tied to the Dow Jones Industrial Average and the S&P 500 were up 0.2% and 0.3%, respectively, at 6:30 a.m. ET. Nasdaq futures were up 0.4%. The Labor Department reported Friday that U.S. employers added 187,000 jobs in July, fewer than economists expected. The data added to evidence that the economy is cooling as a result of the Federal Reserve's aggressive campaign to raise interest rates to fight inflation. Investors are awaiting consumer and producer price index data later this week for further clues on whether the Fed will need to continue raising rates.

CNBC The New York Times

4. Saudi Aramco reports sharp second-quarter profit drop

Saudi Arabia's state-run oil giant, Aramco, on Monday reported $30 billion in second-quarter profit, down nearly 40% from the same period last year. Aramco blamed the drop on lower oil prices and "weakening refining and chemicals margins." Sales came in at $106 billion, down from $150 billion in the same period last year. Still, Aramco raised its dividend payout to $29.4 billion, up from $18.8 billion in the second quarter of 2022. The increase was partly due to last year's record earnings. Many major oil companies reported record earnings in the second quarter of 2022 after Western sanctions against Russia, a major oil exporter, worsened a global supply shortage.

The Associated Press Reuters

5. Daimler Truck CFO Jochen Goetz dies in 'tragic accident'

Daimler Truck's chief financial officer, Jochen Goetz, died in a "tragic accident" over the weekend, the company said Sunday. Daimler released no further details. Goetz, 52, led the successful spin-off of Daimler Truck from the Mercedes-Benz Group in December 2021. "He played a key role in shaping today's Daimler Truck company and, as CFO, consistently worked to ensure that the company is now more economically successful than ever before," CEO Martin Daum said. The company said Goetz was known for "his positive, hands-on manner." Goetz had been CFO since July 2021.

CNN Reuters

The daily business briefing: August 4, 2023

theweekonlineeditors@futurenet.com (Harold Maass, The Week US) — Fri, 04 Aug 2023 11:52:44 +0000

1. Amazon shares surge after strong earnings report

Amazon reported Thursday that its sales jumped 11% in the second quarter, fueling a big increase in profit compared to a year ago. Sales reached $134.4 billion, up from $121.2 billion a year earlier and surpassing the $131.4 billion analysts expected. The news sent the online retail giant's stock rising nearly 10% in after-hours trading. Amazon shares had already gained 52% this year, making it one of the tech giants fueling this year's rally. Analysts said Amazon's 4% rise in online sales and better-than-expected income from cloud computing, a reliable cash cow, were good signs for the second half of 2023.

CNN Bloomberg

2. Apple sales fall in longest slump since 2016

Apple reported Thursday that its revenue fell for the third straight quarter, the iPhone maker's longest sales slide since 2016. The company reported iPhone revenue that fell short of analysts' expectations. Apple's smartphone line is a key profit engine, but net income was up 2.3% on an annual basis at $19.9 billion thanks to record revenue of $21 billion from the company's service unit, driven by paid music and TV streaming and purchases in Apple's App Store. Subscriptions jumped 150 million to more than a billion. "People spending on services shows that economic activity is good," Apple Chief Financial Officer Luca Maestri told The Wall Street Journal.

The Wall Street Journal

3. Gas prices jump after months of stability

Gas prices have jumped nearly 30 cents to a nationwide average of $3.82 per gallon in the past month after holding steady for nearly six months, AAA reported Thursday. Voluntary production cuts by OPEC+ nations have contributed to the increase, along with extreme heat that has triggered outages at four refineries in Texas and Louisiana in recent weeks, according to Patrick De Haan, GasBuddy's head of petroleum analysis. A spokesperson for the trade group American Fuel and Petrochemical Manufacturers blamed weather and "extended periods of high utilization" for the refinery outages. High demand also has been a factor. The busy summer driving season is usually the time of year when demand peaks, pushing prices up.

Politico

4. Stock futures edge higher ahead of jobs report

U.S. stock futures gained early Friday ahead of the July jobs report. Futures tied to the Dow Jones Industrial Average and the S&P 500 were up 0.2% and 0.4% at 6:30 a.m. ET. Nasdaq futures were up 0.5%. Amazon shares surged after the online retail giant reported better-than-expected profit and a strong guidance, but Apple shares dipped after it reported a revenue drop compared to last year. Still, "all eyes are on the jobs report," U.S. Bank senior investment strategist Rob Haworth told CNBC. Economists expect the report to show that employers added about 200,000 jobs, down from the 244,000-job average over the last three months. "We just want to see: Is the Fed getting some help here on the inflation fight?" Haworth said.

CNBC The New York Times

5. Airbnb bookings rise but shares slip on fears about future demand

Airbnb reported Thursday that its second-quarter profit jumped to $650 million, a more than 70% increase compared to summer 2022. The improvement came as bookings for summer vacation rentals grew 11% while rates held steady. The San Francisco-based short-term rental company forecast third-quarter revenue of $3.3 billion to $3.4 billion, exceeding analysts' expectations of $3.22 billion. Still, concerns about a potential weakening of domestic demand dragged down Airbnb shares by about 1% in after-hours trading. Airbnb has been facing complaints from some customers that high cleaning fees had pushed its prices near or even above those of short hotel stays.

The Associated Press Reuters

The daily business briefing: August 3, 2023

theweekonlineeditors@futurenet.com (Harold Maass, The Week US) — Thu, 03 Aug 2023 11:19:17 +0000

1. Left-over Yeezy sneaker sales boost Adidas

Adidas sales exceeded expectations in the second quarter, after the German sports apparel giant brought in $437 million from the first release of Yeezy sneakers left over after it broke ties with Ye, the rapper formerly known as Kanye West, over his antisemitic remarks. Adidas said strong demand for a second sale of Yeezy goods launched Wednesday should narrow its expected full-year loss. Adidas was stuck with more than $1.3 billion worth of the high-end Yeezy shoes, and is trying to get rid of them responsibly. The company has set aside $120 million to donate to groups fighting antisemitism, including the Anti-Defamation League. "This is much better than destroying and writing off the inventory," said CEO Bjørn Gulden.

The Associated Press

2. Grain prices jump after Russian strike on Ukrainian Danube River port

Global grain prices climbed Wednesday — wheat jumped nearly 5% in Chicago — on supply concerns after Russian drones hit Ukraine's main inland port of Izmail, across the Danube River from Romania, and prevented ships from loading grain. The strikes came as Russia intensifies attacks aiming to prevent Ukraine from exporting grain now that Moscow has ended the Black Sea Grain Initiative, which had allowed Kyiv to export food through the Black Sea. Ukraine said the strikes damaged nearly 40,000 tons of grain intended for shipment to Africa, China, and Israel. "Russian terrorists have once again attacked ports, grain, global food security," President Volodymyr Zelenskyy said in a Telegram post. Russian state news agency RIA said the targeted area housed military equipment and foreign mercenaries.

Reuters BBC News

3. Stocks plunge after U.S. credit downgrade

U.S. stocks fell sharply on Wednesday in a sign of investor caution after Fitch downgraded the U.S. credit rating over Washington's frequent debt-ceiling standoffs. The S&P 500 and the Dow Jones Industrial Average fell 1.4% and 1%, respectively, while the tech-heavy Nasdaq plunged 2.2% in its worst day since February. Bonds also endured a wave of selling, driving down prices. The 10-year Treasury note yield rose to 4.077%, the highest since November. U.S. stock futures slipped further early Wednesday. Futures tied to the S&P 500 and the Dow were down 0.2% and 0.1% at 7 a.m. ET. Nasdaq futures were down 0.4% as corporate earnings reports continued. Chipmaker Qualcomm's shares fell 8% after it fell short of expectations. Apple and Amazon report after trading closes.

The Wall Street Journal CNBC

4. Writers Guild negotiators to meet with studio reps

The Writers Guild of America's negotiating committee plans to meet with Hollywood studios on Friday for the first in-person bargaining since early May, when the union called a strike, The Washington Post reported Wednesday. The decision, announced to union members in an email late Tuesday, came after the Alliance of Motion Picture and Television Producers — which represents major studios — reached out last Friday requesting a meeting. The writers' strike expanded in July when tens of thousands of Screen Actors Guild members joined the walkout, bringing nearly all Hollywood production to a halt.

The Washington Post

5. InBev reports strong profit despite Bud Light boycott

Anheuser-Busch InBev on Thursday reported quarterly profit that blew past analysts' expectations despite a conservative boycott of Bud Light, the Belgium-based brewer's best-selling beer in the United States. InBev said its revenue jumped 7.2% globally as higher prices offset a 1.4% volume drop. Conservative online activists launched the Bud Light boycott in April over the brand's brief sponsorship partnership with transgender influencer Dylan Mulvaney, who promoted the beer in a video post. Sales plunged 25%, opening the door for Constellation brand's Modelo to take the No. 1 spot in the U.S. Critics on the left then accused InBev of failing to support Mulvaney. The company "managed to alienate both conservatives and progressives in one fell swoop," said Zak Stambor, senior analyst at Insider Intelligence.

CNBC

The daily business briefing: August 2, 2023

theweekonlineeditors@futurenet.com (Harold Maass, The Week US) — Wed, 02 Aug 2023 11:14:55 +0000

1. Fitch downgrades U.S. credit rating, stock futures fall

U.S. stock futures fell early Wednesday after Fitch downgraded the long-term U.S.credit rating from AAA, the highest tier, to AA+ on Tuesday evening, saying repeated partisan debt-limit standoffs have shaken confidence in the nation's fiscal management. Futures tied to the Dow Jones Industrial Average and the S&P 500 were down 0.5% and 0.7%, respectively, at 6:30 a.m. ET. Nasdaq futures were down 1%. The Dow gained 0.2% on Tuesday, while the S&P 500 and the tech-heavy Nasdaq fell 0.3% and 0.4%, respectively. The lackluster day came in a busy week for corporate earnings. With earnings season more than halfway over, 82% of the S&P 500 companies that have reported second-quarter earnings have beaten Wall Street's expectations.

CNBC

2. Overstock rebrands online as Bed Bath & Beyond

Overstock officially rebranded itself as Bed Bath & Beyond online Tuesday, less than two days after the home goods retailer closed its last brick-and-mortar stores. Overstock's takeover was among the fastest relaunches of a bankrupt brand and website ever. GlobalData analyst Neil Saunders said Overstock was making a "big bet" that could generate more traffic and online sales. "Bed Bath & Beyond is a much more powerful, much better-known brand than Overstock and, despite recent problems, it retains a lot of customer goodwill," he wrote in a note.

Axios

3. DeSantis-stacked Disney board scraps diversity programs

The Central Florida Tourism Oversight District, which serves as the local authority for Walt Disney World, announced Tuesday that it was abolishing diversity and equity programs. "Our district will no longer participate in any attempt to divide us by race or advance the notion that we are not created equal," District Administrator Glen Gilzean said. The board is filled with appointees of Gov. Ron DeSantis (R), who has clashed with Disney over numerous social issues since the entertainment giant criticized his Parental Rights in Education Act, which critics call the "don't say gay law." The district, formerly called the Reedy Creek Improvement District, was created in 1967 to support economic development and tourism around the theme park.

Orlando Sentinel

4. Job openings inch down to lowest since 2021

U.S. job openings edged down in June to their lowest level in more than two years in the latest sign that the labor market remains strong despite the Federal Reserve's aggressive campaign to raise borrowing costs to slow the economy and bring down inflation. "While today's report discusses data from June, this continued strength in the labor market is likely to keep Fed officials hawkish," said Eugenio Aleman, chief economist at Raymond James. Job openings dropped 34,000 to 9.6 million. That amounted to 1.6 job openings per unemployed person, little changed from May. The Labor Department also reported that layoffs fell for the third straight month as employers try to hold onto workers after struggling to keep staff during the coronavirus pandemic.

Reuters

5. U.S. starts enforcing ban on most incandescent light bulbs

A Biden administration's ban on most incandescent light bulbs took effect on Tuesday. The rule — which was finalized last year and assures the switch to LED lights — bars the sale of most types of incandescent light bulbs in U.S. stores under an energy efficiency standard set in the 2007 Energy Independence and Security Act, signed by former President George W. Bush, that requires light bulbs to produce at least 45 lumens per watt. Traditional incandescent lights produce 15 lumens per watt, CNN reports, citing light bulb maker Philips. Most LED bulbs get you at least 75 lumens per watt. LED bulbs also last much longer — 30,000 to 50,000 hours of useful life, versus 1,000 hours for incandescent bulbs, according to the Energy Department.

The Hill CNN

The daily business briefing: August 1, 2023

theweekonlineeditors@futurenet.com (Harold Maass, The Week US) — Tue, 01 Aug 2023 11:36:25 +0000

1. Musk forced to take down flashing 'X' over Twitter HQ

Construction crews on Monday dismantled a giant flashing "X" sign from the roof of the San Francisco headquarters of billionaire Elon Musk's social media company, formerly known as Twitter. The city's Department of Building Inspection received two dozen complaints after Musk rebranded the company and put up the sign over the weekend. "SHUT IT OFF!!" one complaint said. "It is currently flashing rapidly and extremely brightly. It is creating a massive nighttime nuisance and making it hard to sleep." Several people said they couldn't block out the flashing strobe light, even when they closed their blinds. "Subtlety is not (Musk's) strength," said Sam Chand, who lives across the street from the building.

The Washington Post

2. Georgia utility cranks up new nuclear reactor

Georgia Power Co. announced Monday that the first totally new U.S. nuclear reactor built in decades had completed tests and was supplying electricity to the grid. At full power, Unit 3 at Plant Vogtle southeast of Augusta will produce 1,100 megawatts of electricity, enough to power 500,000 homes and businesses. The reactor is sending electricity to utilities in Georgia, Florida, and Alabama. A fourth reactor at the plant is nearing completion. The two new reactors were supposed to cost $14 billion, but the price tag ballooned to $31 billion. The plant's debut came as government officials and some utilities seek ways to fight climate change and take a fresh look at nuclear power as an alternative to plants that burn fossil fuels.

The Associated Press

3. Burning car-carrying freighter towed out of shipping lanes

Authorities have towed a burning freighter carrying 3,783 cars far from shipping lanes in an effort to salvage the ship, the Dutch public works and water management ministry said Monday. The Panamanian-registered Fremantle Highway caught fire on July 26 as it headed from Germany to Egypt. The 21 crew members are all Indian nationals, the ship's owner, Japan's Shoei Kisen, said. One crew member died in the blaze. Another seven were injured when they jumped overboard. Ship charger company "K" Line said 498 of the vehicles on board are electric vehicles, which have lithium-ion batteries that burn with twice the energy of a normal fire.

Reuters

4. Stock futures edge lower ahead of more earnings

U.S. stock futures fell slightly early Tuesday ahead of more corporate earnings reports. Futures tied to the Dow Jones Industrial Average, the S&P 500, and the Nasdaq were down 0.3% at 6:30 a.m. ET. More than 160 companies in the S&P 500 report second quarter results this week. More than half of the companies in the index have already reported, with 80% beating Wall Street's expectations, according to FactSet. All three of the main U.S. indexes gained on Monday. The Dow rose 0.3%. The S&P 500 and the tech-heavy Nasdaq rose 0.2%. British oil giant BP on Tuesday reported a 70% drop in second-quarter profit compared to last year due to weak oil prices.

CNBC

5. Ukraine, Croatia agree on alternative route for grain exports

Ukraine and Croatia have reached an agreement to export Ukrainian grain through Croatian ports on the Danube River, a deal seen crucial to keeping world food prices stable. "We agreed on the possibility of using Croatian ports on the Danube and the Adriatic Sea to transport Ukrainian grain," Ukrainian Foreign Minister Dmytro Kuleba said Monday after meeting with Croatian counterpart Gordan Grlic-Radman, according to the Ukrainian government website. "Now we will work to build the most efficient routes to these ports." Ukraine had to seek alternative routes for its grains and edible oils after Russia ended the United Nations-brokered Black Sea Grain Initiative, which let ships carry the exports safely through the Black Sea.

CNN

The daily business briefing: July 31, 2023

theweekonlineeditors@futurenet.com (Harold Maass, The Week US) — Mon, 31 Jul 2023 11:15:17 +0000

1. Yellow shuts down ahead of bankruptcy filing

Trucking giant Yellow Corporation shut down on Sunday after 99 years in business, The Wall Street Journal reported. The company, which received a controversial $700 million COVID rescue loan, has been struggling with massive debt from a string of mergers, as well as a contract dispute with the Teamsters union that represents Yellow's 22,000 drivers. Yellow laid off hundreds of non-union employees Friday. The Nashville, Tennessee, company notified customers and workers it was halting operations Sunday as it prepares to file for bankruptcy protection. Yellow also is in talks to sell some or all of the company. Disruptions should be limited because many customers, which include Walmart and Home Depot, shifted their cargoes to other companies, which accelerated Yellow's demise.

The Wall Street Journal Business Insider

2. 'Barbenheimer' leads box office in 2nd blockbuster week

"Barbenheimer" dominated the domestic box office for the second straight weekend, giving a boost to the film industry in the key summer season as it contends with strikes by writers and actors. Greta Gerwig's "Barbie," starring Margot Robbie as the iconic doll and Ryan Gosling as Ken, held onto the top spot with a huge $93 million haul in a second blockbuster weekend, bringing its total in North America to $351.4 million. Christopher Nolan's "Oppenheimer," starring Cillian Murphy as the atomic-bomb physicist, followed at No. 2 with a strong $46.2 million. Both movies had far smaller week-two drops than normal — 43% for "Barbie" and 44% for "Oppenheimer." "Barbie" also made $122.2 million internationally to bring its global total to $775 million.

The Associated Press

3. Eurozone inflation falls to 5.3%

Eurozone inflation fell to an annual rate of 5.3% in July, down from 5.5% in June and 6.1% in May, European Union statistics agency Eurostat reported Monday. The decline, in line with expectations, was mostly due to a 6.1% drop in energy prices. Core inflation, which excludes volatile energy and food prices, remained unchanged at 5.5%. Eurostat also reported 0.3% economic growth in the second quarter, compared to zero growth in the first quarter. The growth lifted hopes of a soft landing for the 20-nation bloc. The European Central Bank last week hiked interest rates for the ninth straight time to fight inflation. The rate is now at a 22-year high, but the ECB said it might soon pause its year-long campaign.

DW Financial Times

4. Stock futures inch up as July ends with gains

U.S. stock futures were little changed early Monday, leaving Wall Street poised to end July with big gains. Futures tied to the Dow Jones Industrial Average and the S&P 500 were up 0.1% at 6:45 a.m. ET. Nasdaq futures were down 0.1%. The Dow and the S&P 500 are up 3.1% and 3%, respectively, this month. The Dow is coming off a 13-day winning streak, its longest since 1987. The S&P 500 is wrapping up its fifth straight month with gains as falling inflation and rising consumer confidence boost stocks. Investors will be watching the July jobs report coming Friday, hoping for fresh signs of the economy's resilience after the Federal Reserve lifted interest rates to the highest level in more than 22 years.

CNBC

5. Walmart boosts its control of Flipkart

Walmart has increased its control of Flipkart by purchasing the stake of major investor Tiger Global for $1.4 billion, The Wall Street Journal reported Sunday night, citing a letter the New York hedge-fund sent investors. The deal valued the Indian e-commerce giant at $35 billion, down from nearly $38 billion in 2021, when it sold shares to Walmart, Japan's SoftBank, and other investors, the Journal said. Walmart paid $16 billion for a 77% stake in Flipkart in 2018. Flipkart, started in 2007, is one India's biggest e-commerce companies, with more than 450 million customers, and more than 150 million products available on its marketplace. India's The Economic Times reported that venture capital fund Accel also has sold its 1% Flipkart stake to Walmart.

The Wall Street Journal The Economic Times

The daily business briefing: July 28, 2023

theweekonlineeditors@futurenet.com (Harold Maass, The Week US) — Fri, 28 Jul 2023 11:57:05 +0000

1. US economic growth surges in latest sign of resilience

U.S. economic growth accelerated to a 2.4% annual rate in the second quarter, up from 2% growth in the first quarter in the latest sign of resilience despite the Federal Reserve's aggressive interest rate hikes to bring down inflation. The expansion, reported Thursday by the Commerce Department, outpaced the 1.5% growth in gross domestic product, a measure of total goods and services output, that economists had predicted. The growth was fueled by a surge of investment by businesses in such things as factories and equipment. Consumer spending, the economy's main engine, remained solid but slowed to a 1.6% annual rate from 4.2% the previous quarter.

The Associated Press

2. Anheuser-Busch lays off hundreds after boycott hurts sales

Anheuser-Busch is laying off about 350 corporate employees as if faces a boycott by conservatives months after a product endorsement by transgender influencer Dylan Mulvaney. "Today we took the very difficult but necessary decision to eliminate a number of positions across our corporate organization," , Anheuser-Busch CEO Brendan Whitworth said in a statement. "While we never take these decisions lightly, we want to ensure that our organization continues to be set for future long-term success." The layoffs affect less than 2% of the brewing company's U.S. workers. Bud Light sales have been falling for six weeks, causing it to lose its crown as America's top-selling beer to Modelo Especial.

Axios The Wall Street Journal

3. Ford reports strong quarterly earnings and raises full-year guidance

Ford shares gained in overnight trading after the automaker reported strong second-quarter earnings on Thursday and raised its full-year profit forecast to a range of between $11 billion and $12 billion, up from its previous $9 billion and $11 billion projection. Ford reported earnings per share of 72 cents, beating expectations of 55 cents, according to Refinitiv. Automotive revenue came in at $42.43 billion, surpassing expectations of $40.38 billion. Ford did say that it anticipated steeper annual losses in its electric vehicle division than previously expected. The results came after rival General Motors also reported strong earnings and raised its full-year profit guidance.

The Detroit News Yahoo Finance

4. Dow snaps its 2nd-longest winning streak on record

The Dow Jones Industrial Average fell 0.7% on Thursday, snapping a 13-day winning streak that was the longest since 1987 and the second-longest on record. One more day of gains would have tied the blue-chip index's longest run of gains ever. The S&P 500 and the tech-heavy Nasdaq fell 0.6% and 0.5%, respectively. The losses came as the Commerce Department reported stronger-than-expected second-quarter economic growth and a day after the Federal Reserve raised interest rates another quarter percentage point to fight inflation. U.S. stock futures rose early Friday. Futures tied to the Dow and the S&P 500 were up 0.2% and 0.4%, respectively, at 7 a.m. ET. Nasdaq futures were up 0.9%. Intel and Roku shares jumped overnight after strong earnings reports.

The Wall Street Journal CNBC

5. Fox delays Emmy ceremony due to strikes by writers, actors

Fox is postponing the 75th Emmy Awards, originally scheduled to air Sept. 18, due to the Writers Guild of America and SAG-AFTRA strikes. The network has notified vendors for the ceremony of the delay, Variety reported. The news was expected, because the strikes have shut down Hollywood production. The event probably will be rescheduled for January, the Los Angeles Times reported, citing a person familiar with the plans. An announcement is expected soon, although the new date will be contingent on a resolution of contract disputes between the guilds and studios. The Writers Guild of America went on strike May 2. Actors represented by SAG-AFTRA followed this month. The unions want better residual payments for streaming and protections against the use of artificial intelligence.

Variety Los Angeles Times

The daily business briefing: July 27, 2023

theweekonlineeditors@futurenet.com (Harold Maass, The Week US) — Thu, 27 Jul 2023 11:31:08 +0000

1. Meta shares surge after strong earnings report

Meta Platforms shares jumped by 8% in pre-market trading Thursday after the Facebook and Instagram parent reported better-than expected revenue after the bell on Wednesday. Meta said its revenue totaled $32 billion for the quarter, beating the $31.06 billion analysts expected. Meta also projected $32 billion to $34.5 billion for the current quarter, exceeding expectations of $31.2 billion. Meta said crucial ad impressions jumped by 34% on a yearly basis, although the price per ad fell 16%. Facebook's daily active users also were strong at 2.06 billion, just above expectations. "We had a good quarter," Meta CEO Mark Zuckerberg said in a statement.

Yahoo Finance

2. Fed announces 11th interest rate hike despite cooling inflation

The Federal Reserve on Wednesday raised its benchmark short-term interest rate a quarter percentage point, its 11th rate hike in 17 months under an aggressive campaign to slow the economy and bring down high inflation. The change put the rate in a range between 5.1% and 5.3%, a 22-year high. That could further push up rates on mortgages and other loans. Inflation in the last month eased to its slowest pace in two years but remains above the Fed's 2% target. Consumer confidence has jumped to its highest level in two years. Fed Chair Jerome Powell left the door open to another rate hike in September and said that given the economy's resilience the central bank's economists "are no longer forecasting a recession."

Bloomberg The Associated Press

3. Carmakers join forces to nearly double EV fast chargers

Seven major automakers — BMW Group, General Motors, Honda, Hyundai, Kia, Mercedes-Benz Group, and Stellantis — on Wednesday announced plans to build 30,000 charging ports on major highways and other key locations across the United States and Canada. The companies will spend at least $1 billion initially on the project, which will nearly double the 36,000 fast chargers already available. These ports can replenish a depleted battery in 30 minutes or less, and are considered crucial to wider adoption of electric vehicles, because the fear of not being able to find a charger on long trips remains an obstacle for EV purchases, according to The New York Times. Sales of electric cars have risen sharply but U.S. demand has softened recently.

The New York Times

4. Stock futures rise after Meta shines, Fed hikes rates

U.S. stock futures rose early Thursday as Meta shares jumped after a strong earnings report and the Federal Reserve raised interest rates to the highest level since 2001. Futures tied to the Dow Jones Industrial Average and the S&P 500 were up 0.1% and 0.6%, respectively, at 7 a.m. ET. Futures connected to the tech-heavy Nasdaq were up 1.2%. The Dow gained 0.2% on Wednesday, extending its winning streak to 13 days, its longest since 1987. If it closes higher Thursday, the blue-chip index will equal its longest winning streak ever. More major companies, including McDonald's, Honeywell, Intel, and Ford, report earnings on Thursday. Eighty-one percent of the companies that have reported so far have beaten Wall Street's expectations, according to FactSet.

CNBC

5. Gap names Mattel executive as CEO

Gap is hiring Richard Dickson, president and chief operating officer at toymaker Mattel, as its new chief executive, ending a yearlong search for a new leader to restore the fortunes of the struggling apparel retailer, which owns Gap, Old Navy, Banana Republic, and Athleta. Mattel announced the news on Wednesday. Dickson, 55, is best known for restoring the Barbie franchise, now experiencing a PR bonanza from the blockbuster "Barbie" movie, after years of declining sales. Although he has spent much of his career at Mattel, Dickson has apparel experience after starting his career at Bloomingdale's. He also worked at the owner of Nine West for several years.

The Wall Street Journal Fast Company

The daily business briefing: July 26, 2023

theweekonlineeditors@futurenet.com (Harold Maass, The Week US) — Wed, 26 Jul 2023 11:22:39 +0000

1. Alphabet shares rise as Google Search weathers Bing challenge

Alphabet's shares jumped nearly 7% in pre-market trading on Wednesday after the Google parent said its internet search business was strong despite ad market uncertainty. The company said Google Search hadn't suffered from competition with newly AI-powered rival Microsoft Bing. Alphabet shares have gained 39% this year as it generated enthusiasm with its push into artificial intelligence. Microsoft shares fell 4% in pre-market trading after the software giant posted slowing growth in its Azure cloud-services business, overshadowing optimism about its AI tools. "While Microsoft is better positioned than other cloud providers to monetize new AI investments, we think it can take a few quarters for that growth to kick in," said Bloomberg Intelligence analyst Anurag Rana.

Reuters Bloomberg

2. Fed expected to announce its 11th interest rate hike since March 2022

The Federal Reserve is expected to raise interest rates by a quarter percentage point on Wednesday at the conclusion of a two-day meeting, the 11th interest rate hike since March 2022 in an aggressive campaign to fight high inflation. This would give the federal funds rate a target range of 5.25% to 5.5%, a 22-year high. "Economic growth has likely been too firm in recent months for Fed Chair Jerome Powell to signal that Wednesday's increase in the Fed's benchmark short-term rate will be the last of the current tightening cycle, as investors anticipate," according to The Wall Street Journal, but the recent drop in the inflation rate "also makes it hard for central bank officials to firm up plans for any additional rate increase."

USA Today The Wall Street Journal

3. Gas prices make biggest daily jump in a year

National gas prices jumped 4 cents to $3.64 on Tuesday in the biggest one-day increase since June 2022, according to AAA data. Gas prices are higher than they were in the same period in 2021 but far below what they were in June 2022, when the national average rose above $5 per gallon for the first time. The decline in gas prices in the last year has helped reduce inflation from its peak of 9.1% last summer to 3%, on an annual basis, last month. Oil prices also have risen recently. U.S. benchmark West Texas crude oil was up to $79.64 per barrel on Tuesday, nearly $4 a barrel more expensive than a week earlier but still far below the price of $95.54 on July 25, 2022.

The Hill

4. Stock futures slip ahead of Fed decision, earnings

U.S. stock futures edged lower early Wednesday ahead of more corporate earnings and the Federal Reserve's latest interest rate move. Futures tied to the Dow Jones Industrial Average were down 0.3% at 6:30 a.m. ET. S&P 500 and Nasdaq futures were down 0.2%. The three main U.S. indexes gained on Tuesday, with the Dow rising 0.1% to extend its winning streak to 12 days, its longest since February 2017. The S&P 500 and the tech-heavy Nasdaq rose 0.3% and 0.6%, respectively. The market has priced in a 98% chance that the Federal Reserve will raise interest rates by a quarter percentage point after pausing in June to assess how its campaign to hike rates was affecting inflation and the economy.

CNBC

5. IMF says world economy showing resilience

The International Monetary Fund said Tuesday in its latest World Economic Outlook that the world economy is recovering despite ongoing problems like stubborn inflation and China's slowing post-pandemic recovery, and could avoid a feared recession. The IMF raised its global growth forecast for this year to 3% from its April projection of 2.8%. It expects U.S. growth, which was 2.1% last year, to slow to 1.8% in 2023 and 1% in 2024. "The global economy continues to gradually recover from the pandemic and Russia's invasion of Ukraine, but it is not yet out of the woods," Pierre-Olivier Gourinchas, the IMF's chief economist, said Tuesday.

The New York Times

The daily business briefing: July 25, 2023

theweekonlineeditors@futurenet.com (Harold Maass, The Week US) — Tue, 25 Jul 2023 11:28:59 +0000

1. Musk's Twitter rebranding starts with sign removal

Elon Musk pushed forward with his rebranding of Twitter as X on Monday, with workers getting to work changing the sign at the company's San Francisco headquarters. Musk, who bought the social media site last year, renamed the platform X.com on its website on Sunday and replaced its widely recognized bird logo with a stylized "X," tweeting, "And soon we shall bid adieu to the Twitter brand and, gradually, all the birds." Many Twitter users "appeared alienated" by the changes, The New York Times reported. "In one fell sweep, Elon Musk has essentially wiped out 15 years of brand value from Twitter and is now essentially starting from scratch," said Mike Proulx, a vice president and research director at Forrester.

The Guardian The New York Times

2. Dow extends winning streak to 11 days, best in 6 years

The Dow Jones Industrial Average extended its winning streak Monday to 11 days, its longest since February 2017. The Dow climbed 0.5%, while the S&P 500 gained 0.4% and 0.2%, respectively. U.S. stock futures were little changed early Tuesday as another busy week of corporate earnings reports continued and Federal Reserve policy makers headed into a two-day meeting expected to end with a quarter-percent interest rate hike as the central bank continues to try to cool the economy enough to bring inflation back to its 2% target without triggering a recession. "As long as there's no evidence of recession, and I think the market will probably continue to melt up," Neuberger Berman senior portfolio manager Steve Eisman said on CNBC's "Squawk Box."

CNBC

3. FDIC warns banks about underreporting uninsured deposits

The Federal Deposit Insurance Corp. said Monday in a letter to banks that some of them had incorrectly reported the amount of their deposits that were uninsured as they faced increased scrutiny in the wake of the collapses of Silicon Valley Bank and Signature Bank in March. Fifty-five banks have changed deposit data in regulatory filings, with some leaving out some uninsured deposits, such as those collateralized by pledged assets, the FDIC found. "This is incorrect because in and of itself, the existence of collateral has no bearing on the portion of a deposit that is covered by federal deposit insurance," the FDIC said in the letter, which it posted on its website.

Bloomberg

4. UBS to pay fines over Credit Suisse's Archegos mismanagement

UBS has agreed to pay $390 million in fines to U.S. and U.K. regulators over Credit Suisse's mismanagement in its dealings with one of its clients, investment firm Archegos Capital Management, which collapsed in 2021. UBS rescued rival Credit Suisse in June in a merger Swiss regulators forced on it after clients and investors lost confidence in Credit Suisse. Archegos was left owing billions of dollars to lenders after investing in a small number of stocks that plunged in value. Credit Suisse, which took $5 billion in damage from Archegos' unraveling, exhibited "unsafe and unsound counterparty credit risk management practices" in its dealings with Archegos, the Federal Reserve said.

The Wall Street Journal The New York Times

5. GM earnings rise on strong sales, higher prices

General Motors on Tuesday reported $2.54 billion in second-quarter net income, up 52% from a year ago, and raised its financial guidance for the full year, provided it can negotiate new union contracts without a strike. Customers paid $1,600 more per vehicle in the quarter than they did in the first three months of the year, bumping up the average sale price to $52,000, and U.S. sales were up 19 percent compared to a year ago. The Detroit automaker also said it was stepping up cost cuts to $3 billion, up from a previous guidance of $2 billion.

The Associated Press CNBC

The daily business briefing: July 24, 2023

theweekonlineeditors@futurenet.com (Harold Maass, The Week US) — Mon, 24 Jul 2023 11:40:24 +0000

1. OpenAI CEO's Worldcoin cryptocurrency project launches

OpenAI CEO Sam Altman's cryptocurrency project, Worldcoin, launches Monday, offering WorldID to ensure only real humans can get accounts. To open an account, customers will have to do in-person iris scans using Worldcoin's "orb" devices. Two million users have already signed up in the project's beta period, but at launch Worldcoin plans to scale up to offer orb scans in 35 cities in 20 countries. Customers signing up in some countries will bet Worldcoin's cryptocurrency token WLD as an enticement. The blockchain can store WorldIDs, which can be used to distinguish between real people and AI bots online.

Reuters

2. Anchor Brewing open to buyout offer from employees

Anchor Brewing spokesperson Sam Singer said over the weekend that the pioneering craft-beer company would "gladly consider" an offer by employees to buy it if they make an offer with "a verifiable source of funds." A spokesperson for the union representing employees sent the company an email saying "workers of Anchor Brewing have met, discussed, and decided to launch an effort to purchase the brewery." A group of employees, not the union itself, is working together on the proposed purchase. The company announced on July 12 it would close, saying its business is "no longer sustainable." The union workers don't have much time. With no firm offer on the table, the company is moving forward with plans to liquidate in early August.

SFGate.com The Associated Press

3. 'Barbenheimer' pulls off biggest weekend of pandemic era

"Barbenheimer" — the one-two box office punch of "Barbie" and "Oppenheimer" — drove the biggest weekend of movie-going in the pandemic era and the fourth biggest weekend in history, providing a key boost for the summer movie season. "Barbie" — a fantasy comedy about the iconic doll — brought in $155 million in its opening weekend, giving Greta Gerwig a record for a woman director, surpassing 2019's "Captain Marvel," co-directed by Anna Boden, at $153 million, and 2017's "Wonder Woman," directed by Patty Jenkins, at $103 million. "We have a pink unicorn here," said Jeff Goldstein, the president of domestic distribution at Warner Bros. Christopher Nolan's "Oppenheimer" — about the father of the atomic bomb — added $80.5 million.

Variety The Washington Post

4. Stock futures tick up ahead of Fed meeting, earnings

U.S. stock futures rose slightly early Monday ahead of more corporate earnings reports and the start of a two-day Federal Reserve policy meeting. Futures tied to the Dow Jones Industrial Average and the S&P 500 were up 0.1% and 0.2%, respectively, at 6:30 a.m. ET. Nasdaq futures were up 0.3%. Investors expect the Fed to raise interest rates another quarter percentage point when their meeting concludes on Wednesday. They will closely watch Fed Chair Jerome Powell's post-meeting comments for indications of what the central bank's policy makers plan next as they try to raise borrowing costs enough to reduce inflation without tipping the economy into a recession.

CNBC

5. NBA governors approve Jordan's $3 billion sale of Hornets

The NBA Board of Governors has approved basketball legend Michael Jordan's plan to sell the Charlotte Hornets for about $3 billion, The Associated Press reported Sunday, citing a person familiar with the matter. Jordan, the professional basketball league's only Black majority owner, sealed the deal to sell the team to a group headed by Gabe Plotkin and Rick Schnall in June, but the board must approve all team sales. Plotkin has been a Hornets minority stakeholder since 2019. Schnall is part-owner of the Atlanta Hawks but had to sell his stake. Jordan won six NBA titles as a player with the Chicago Bulls, but the Hornets have never approached that kind of success, going 423-600 on his watch.

The Associated Press

The daily business briefing: July 21, 2023

theweekonlineeditors@futurenet.com (Harold Maass, The Week US) — Fri, 21 Jul 2023 12:00:57 +0000

1. FTX sues to recover money from Bankman-Fried, other former executives

FTX lawyers on Thursday filed a lawsuit in Delaware bankruptcy court accusing company co-founder Sam Bankman-Fried and three members of his leadership team of stealing more than $1 billion shortly before the failed cryptocurrency exchange collapsed last year. The lawyers are trying to recover the allegedly misappropriated funds from the former executives and FTX's trading arm, Alameda Research. The suit claims Bankman-Fried took $10 million he is now using to pay his criminal defense bills by routing it through his Morgan Stanley and TD Ameritrade accounts as a gift to his father, legal scholar Joe Bankman. Caroline Ellison, one of the other executives named in the suit, allegedly paid herself a $22.5 million bonus later used to invest in an artificial intelligence company.

CNBC Financial Times

2. NFL team owners approve Washington Commanders sale

NFL team owners on Thursday unanimously approved Josh Harris' $6.05 billion purchase of the Washington Commanders from Daniel Snyder. The record-setting sale could close as soon as Friday. The deal sets up the first change in ownership for the pro football team since Snyder bought it for $800 million from the Jack Kent Cooke estate in 1999. Snyder owned the team for 24 years but never restored the success it had on the field under Cooke's ownership. As part of the sale process, Snyder will pay the NFL $60 million as a result of a league investigation that found he sexually harassed an employee and the Commanders kept some revenue they should have shared with other teams.

The Washington Post

3. Google tests AI journalism tool

Google is testing an artificial-intelligence tool that can use details on current events to produce news stories, according to The New York Times. The company has demonstrated the product, currently called Genesis, to the Times, The Washington Post, and News Corp, which owns The Wall Street Journal. Google co-founder Sergey Brin has returned to Google's Mountain View, California, offices for several days a week in recent month to work with researchers developing the tech giant's next major AI initiative, the Journal reported Thursday. His presence marks a change from the "hands-off approach he adopted after stepping down from an executive role" in 2019, the Journal says.

The New York Times The Wall Street Journal

4. Stock futures rise after Dow extends winning streak

U.S. stock futures rose early Friday after the Dow Jones Industrial Average on Thursday rose for the ninth straight day, its longest winning streak since 2017. Futures tied to the Dow and the S&P 500 were up 0.1% and 0.3%, respectively, at 7 a.m. ET. Nasdaq futures were up 0.5%. Transportation stocks CSX and Knight-Swift fell sharply in pre-market trading after they reported quarterly results that fell short of Wall Street expectations. The Dow gained 0.5% on Thursday but the S&P 500 and the tech-heavy Nasdaq fell 0.7% and 2.1%, respectively, as investors reacted to mixed earnings reports, although 73% of the S&P 500 companies that have reported second-quarter earnings so far have beaten analysts' expectations, according to FactSet.

CNBC

5. Tornado damage at Pfizer plant could worsen shortages of some drugs

A tornado that damaged a North Carolina Pfizer factory this week could further strain U.S. drug supplies at hospitals, The Associated Press reported Thursday, citing health care industry experts. The tornado tore up the roof of the factory, which makes nearly a quarter of Pfizer's sterile injectable medicines used in U.S. hospitals, the drugmaker said. The plant makes drugs for anesthesia, infection treatment, and use in surgeries and intensive care units for patients on ventilators. The massive plant has 22 packaging lines and 1.4 million square feet of manufacturing space. The damage could result in shortages of some drugs as Pfizer rebuilds or shifts production elsewhere, Erin Fox, senior pharmacy director at University of Utah Health, told AP.

The Associated Press

The daily business briefing: July 20, 2023

theweekonlineeditors@futurenet.com (Harold Maass, The Week US) — Thu, 20 Jul 2023 11:30:16 +0000

1. Netflix shares fall despite subscriber gains

Netflix reported Wednesday that it gained 5.9 million subscribers in the second quarter, an 8% increase that came after the streaming giant launched a global crackdown against password-sharing. But the streaming giant's revenue fell short of expectations and its shares plunged by 6.7%. Netflix saw subscriber growth in every region thanks to people who decided to pay for accounts now that they can't piggy-back on someone else's. A year ago, Netflix lost subscribers in two straight quarters for the first time. Netflix said its free cash flow forecast had risen from $3.5 billion to $5 billion because it will be spending less on new content this year due to Hollywood's ongoing writer and actor strikes.

The Wall Street Journal CNBC

2. Tesla reports strong revenue but price cuts hurt gross margin

Tesla shares fell 3% on Wednesday after CEO Elon Musk said the electric-car maker would reduce prices again due to "turbulent times." Tesla reported better-than-expected quarterly revenue but said its gross margin was squeezed by previous price cuts it used to boost sales. Tesla's gross margin was 18.2% for the quarter, down from 19.3% in the first quarter and Tesla's lowest in three years. Tesla, the dominant EV maker, has cut prices on some models several times to attract buyers as it faced increasing competition and a struggling economy. The reduced pricing and government tax breaks helped Tesla deliver a record 466,000 vehicles in the second quarter.

Reuters

3. Thousands of charities apply for MacKenzie Scott grants

Billionaire philanthropist MacKenzie Scott received 6,353 applications from nonprofits in response to her first open call for grant requests. Lever for Change, the nonprofit managing the application process, said Wednesday applications had poured in from all 50 states, as well as Puerto Rico and the Virgin Islands. The group will pick 250 winners to receive $1 million grants, and announce them early next year. Scott has pledged to give away most of her fortune since divorcing Amazon founder Jeff Bezos. She has shaken up the philanthropy world by donating $14 billion to 1,600 nonprofits, and still has more than $36 billion, according to Forbes.

The Associated Press

4. Stock futures mixed as investors digest corporate earnings

U.S. stock futures were mixed early Thursday as investors continued to react to corporate earnings. Futures tied to the Dow Jones Industrial Average were up 0.2% at 6:45 a.m. ET. S&P and Nasdaq futures were down 0.1% and 0.6%, respectively. Netflix shares fell sharply after a mixed quarterly report. Tesla shares also dipped after the electric-car maker signaled more price cuts even though previous ones hurt its margins. Johnson & Johnson shares rose 1% in pre-market trading Thursday after it posted revenue and earnings per share that beat Wall Street's expectations.

CNBC

5. Goldman Sachs' quarterly earnings plunge

Goldman Sachs' second-quarter earnings dropped 58% in one of the investment bank's "weakest quarters under Chief Executive Officer David Solomon," according to Bloomberg. Goldman's return on equity fell to 4%, lagging behind other top U.S. banks. Goldman and analysts had reduced their profit estimates for the quarter as it faced weakness in everything from investment banking to its struggling consumer arm, but the company's quarterly report fell short of even the lower estimates. But Wall Street's expectations were so low that Goldman's stock still rose 1% after it released the results.

Bloomberg The New York Times

The daily business briefing: July 19, 2023

theweekonlineeditors@futurenet.com (Harold Maass, The Week US) — Wed, 19 Jul 2023 11:38:54 +0000

1. Morgan Stanley, Bank of America shares jump

Morgan Stanley shares jumped 6.5% on Tuesday after it reported better-than-expected second-quarter earnings, even though profit fell 13% compared to a year earlier. The investment bank said its wealth management business growth offset a drop in trading revenue. Bank of America shares jumped 4.4% after it reported quarterly profit that exceeded Wall Street's expectations on strong earnings from customers' loan payments and better-than-expected investment banking income. The news boosted shares of other banks, including Bank of New York Mellon, which gained 4.1%. Charles Schwab shares jumped 13% even though it reported a big drop in profit. JPMorgan and Wells Fargo last week reported big profit gains.

Reuters The Wall Street Journal

2. J&J ordered to pay cancer patient $18.8 million in talc lawsuit

A jury ruled Tuesday that Johnson & Johnson must pay $18.8 million to a California man, Emory Hernandez Valadez, who sued the company saying he developed cancer from heavy exposure to Johnson's Baby Powder since childhood. Hernandez, 24, has the deadly cancer mesothelioma in tissue around his heart. The jury said he was entitled to payment for his pain, suffering, and medical bills, but it didn't impose punitive damages. The company vowed to appeal, saying "decades of scientific evaluations" had confirmed "Johnson's Baby Powder is safe." The verdict marked a setback for Johnson & Johnson as it tries to settle thousands of similar lawsuits, although a bankruptcy court has frozen most of the talc cases.

Bloomberg Reuters

3. Americans increase spending as inflation eases

Retail sales rose 0.2% in June, the Commerce Department reported Tuesday. The increased spending came as inflation eased and hiring remained strong. Shoppers reversed a recent pullback and spent more on electronics and home furnishings. Online sales also rose, but sales at grocery stores and gas stations dropped. The third straight month of increased sales after declines in February and March showed continued consumer resilience after a long period of high inflation. But shoppers have changed their habits after struggling to keep up with rising prices. "I'm not buying Del Monte and Green Giant anymore," Ryan Dixon of Tennessee told The Associated Press. "I'm buying the Walmart brand."

The Associated Press

4. Stock futures edge higher after Dow extends winning streak

U.S. stock futures rose slightly early Wednesday after the Dow Jones Industrial Average made its seventh straight day of gains. Futures tied to the Dow were up 0.2% at 6:45 a.m. ET. S&P 500 futures were little changed, while Nasdaq futures were up 0.1%. The Dow gained 1.1% on Tuesday, extending what is now its longest winning streak since March 2021. The S&P 500 and the tech-heavy Nasdaq rose 0.7% and 0.8%, respectively, after a series of quarterly reports from big companies got earnings season off to a good start. Eighty-two percent of the S&P 500 companies that have reported second-quarter results so far have exceeded analysts' expectations, according to FactSet.

CNBC

5. Taco Bell wins fight to free up the 'Taco Tuesday' trademark

Taco Bell has won its fight over the "Taco Tuesday" trademark. Taco John's, a regional chain that has owned the "Taco Tuesday" trademark for 34 years, announced Tuesday that it would stop defending its claim to the phrase to avoid a costly fight against giant Taco Bell. "We've always prided ourselves on being the home of Taco Tuesday, but paying millions of dollars to lawyers to defend our mark just doesn't feel like the right thing to do," Taco John's CEO Jim Creel said. The bigger rival filed a petition in May asking the U.S. Patent and Trademark Office to cancel Taco John's trademark, arguing the phrase was so common it "should be freely available to all who make, sell, eat, and celebrate tacos."

CNN

The daily business briefing: July 18, 2023

theweekonlineeditors@futurenet.com (Harold Maass, The Week US) — Tue, 18 Jul 2023 11:56:53 +0000

1. Russia seizes local operations of Carlsberg, Danone

Russia escalated its clash with the West by seizing the local operations of global consumer-goods giants Carlsberg and Danone, without warning. Russian President Vladimir Putin signed a decree on Sunday putting the two companies' operations in Russia under the temporary control of Rosimushchestvo, the federal state property management agency. It was the second time since April that the Kremlin has taken over companies from countries Moscow has deemed "unfriendly." Putin also set up new obstacles to companies trying to leave Russia, as many have done since Russia invaded Ukraine. "Western assets in Russia aren't safe anymore," said former Russia central-bank official Alexandra Prokopenko, a nonresident scholar at the Berlin-based Carnegie Russia Eurasia Center.

The Wall Street Journal

2. Ford cuts F-150 Lightning electric pickup prices

Ford Motor on Monday slashed the price of its F-150 Lightning electric pickup truck by as much as $10,000, or up to 17% on some versions of the vehicle. Automakers spent years rushing to find enough EV batteries to meet demand, but now they have more than 90,000 battery-powered cars and trucks — four times the inventory they had a year ago — with not enough buyers. Tesla also has made several rounds of price cuts. Manufacturers "are having a 'Field of Dreams' moment," Jonathan Gregory, a senior manager of economic and industry insight at Cox, told The New York Times. "They have built EV inventory, but now they wait for buyers to come."

The New York Times

3. UN, US denounce Russia for halting Ukraine grain export deal

World leaders reacted harshly on Monday to Russia's decision to end a United Nations-brokered deal that let Ukraine export its grain through the Black Sea. "Today's decision by the Russian Federation will strike a blow to people in need everywhere," U.N. Secretary-General Antonio Guterres said, indicating that Russia's decision would force the suspension of a parallel pact to help Moscow export its grain and fertilizer. U.S. Secretary of State Antony Blinken called Russia's move unconscionable, and the White House said it "will worsen food security and harm millions." Moscow, which said it might revive the deal if it gets concessions to protect Russian interests, hit the Ukrainian grain port of Odesa with missiles on Tuesday.

Reuters The Associated Press

4. Stock futures flat ahead of earnings reports

U.S. stock futures were little changed early Tuesday following Monday's gains as investors braced for more corporate earnings reports. Futures tied to the Dow Jones Industrial Average were flat at 6:45 a.m. ET. S&P 500 and Nasdaq futures were up by about 0.1%. The Dow rose 0.2% to its highest close of 2023, extending a winning streak to six days. The S&P 500 and the tech-heavy Nasdaq rose 0.4% and 0.9%, respectively, as recession fears eased. On Tuesday, several financial companies, including Bank of America and Morgan Stanley, report earnings, as do aerospace firm Lockheed Martin and trucking company J.B. Hunt.

CNBC

5. Goldman Sachs says recession slightly less likely

Goldman Sachs on Monday cut its estimate of the probability of a recession in the next 12 months to 20% from its earlier 25% prediction. "The main reason for our cut is that the recent data have reinforced our confidence that bringing inflation down to an acceptable level will not require a recession," Jan Hatzius, the investment bank's chief economist, said in a research note, according to Reuters. Recent data showing that inflation fell in June eased fears that the Federal Reserve's interest rate hikes, intended to slow the economy and reduce inflation, could tip the economy into a recession.

Reuters

The daily business briefing: July 17, 2023

theweekonlineeditors@futurenet.com (Harold Maass, The Week US) — Mon, 17 Jul 2023 11:12:24 +0000

1. Russia halts Ukraine grain deal

Russia said Monday it was ending its deal to allow the export of Ukrainian grain. The announcement came after the Kremlin blamed Ukraine for an attack that forced the closure of a key bridge Russia uses to resupply its troops in Crimea. But Moscow said its decision on the grain deal had nothing to do with the explosions reported on the bridge. Russia says conditions concerning Russia's interests, including the reconnection of the Russian Agricultural Bank to the international SWIFT payment system, haven't been fulfilled. "As soon as the Russian part of the agreements is fulfilled, the Russian side will return to the implementation of this deal immediately," Kremlin spokesperson Dmitry Peskov said in a call with reporters.

Reuters The Washington Post

2. China's economic growth slows

China's economy grew just 0.8% in the second quarter compared with the previous three-month period, China's National Bureau of Statistics reported Monday. That's a significant slowdown from a 2.2% January-to-March pace. Beijing is facing increasing pressure to revive the country's economic recovery from the coronavirus crisis. Youth unemployment surged to a record high 21.3% in June, with more than a fifth of people from 16 to 24 out of work. "The Chinese economy is clearly sputtering," said Eswar Prasad, a former head of the International Monetary Fund's China division who is now a Cornell professor of trade policy and economics.

The Wall Street Journal Bloomberg

3. Tesla builds 1st Cybertruck, 2 years late

Tesla produced its first Cybertruck over the weekend, two years behind schedule. Tesla CEO Elon Musk announced the futuristic electric pickup truck in 2019, but the company has repeatedly pushed back mass production of the vehicle. Last year, Musk announced another delay, blaming supply chain shortages. In May, Musk told shareholders the company hoped to produce 250,000 of the vehicles annually, if there's enough demand. Reuters reported last year that Tesla was aiming to start mass producing Cybertrucks by the end of 2023.

Fox Business

4. Stock futures struggle after last week's gains

U.S. stock futures were little changed early Monday as investors braced for a week full of corporate earnings reports. Futures tied to the Dow Jones Industrial Average and the S&P 500 were down 0.2% and 0.1%, respectively, at 6:30 a.m. ET. Nasdaq futures were flat. The Dow rose 2.3 percent last week, its best week since March. The S&P 500 and the tech-heavy Nasdaq jumped 2.4% and 3.3%, respectively, on the week after the latest data showed slower than expected inflation, raising hopes that the Federal Reserve might be able to bring down inflation without triggering a recession.

CNBC

5. Latest 'Mission: Impossible' film leads weekend box office

"Mission: Impossible — Dead Reckoning Part One" led the weekend box office with a solid $56.2 million, giving it $80 million in the United States and Canada since its Wednesday opening. The seventh of Tom Cruise' "Mission: Impossible" movies also brought in $155 million overseas. But Hollywood had been expecting the film to be an even bigger box office draw, so its opening failed to ease concerns about a lackluster summer box office. Paramount and Skydance had been expecting their film to set a franchise record with an opening weekend domestic haul of more than $60 million.

Variety The New York Times

The daily business briefing: July 14, 2023

theweekonlineeditors@futurenet.com (The Week Staff) — Fri, 14 Jul 2023 11:15:31 +0000

1. Hollywood actors go on strike, joining writers guild

Actors represented by SAG-AFTRA went on strike at midnight on Friday, joining an ongoing strike by the Writers Guild of America as Hollywood grapples with the changes in business and technology from online streaming and artificial intelligence. Talks with the Hollywood studios, represented by the Alliance of Motion Picture and Television Producers (AMPTP), broke down early Thursday, when the current contract expired. All work on SAG-AFTRA TV and film projects has halted, and the actors guild, which represents about 160,000 performers, instructed members not to promote finished projects, go to awards shows, or attend film festivals during the strike. The stars of "Oppenheimer" walked the red carpet at the London premier Thursday night, then left. Actors will start picketing Friday morning. The last double writers-actors strike was in 1960.

Los Angeles Times Variety

2. Tucker Carlson reportedly creating Twitter-based media company

Former Fox News host Tucker Carlson and Daily Caller publisher Neil Patel are seeking investors for a new media company that will use Twitter as a main source of distribution, The Wall Street Journal reported. Carlson and Patel, who were college roommates and cofounded The Daily Caller, are reportedly looking to raise hundreds of millions of dollars. The media company would use Twitter to post a mix of videos for paid subscribers and all Twitter users. A Carlson spokesman told the Journal they don't want to use YouTube because they fear the content would be censored. Carlson is still under contract with Fox News, which pulled his show in April. Fox sent him a cease and desist letter in June when he started posting videos on Twitter. Carlson responded through a lawyer that he wouldn't "be silenced by anyone."

The Wall Street Journal

3. FDA OKs first over-the-counter oral birth control tablet

The U.S. Food and Drug Administration announced Thursday it has approved norgestrel birth control tablets for over-the-counter sales, a first in the U.S. The FDA said consumers will be able to purchase the oral contraceptive at drug stores, convenience stores and grocery stores, as well as online. The medicine, branded as "Opill," is expected to be available in early 2024, its manufacturer, Perrigo, told The New York Times. While no price for the medication has been announced, Frederique Welgryn, Perrigo's global vice president for women's health, said the company is committed to making Opill "accessible and affordable to women and people of all ages." Norgestrel was initially approved for prescription use by the FDA 50 years ago.

The New York Times

4. WHO says aspartame is a 'possible carcinogen' but safe in moderation

The World Health Organization's International Agency for Research on Cancer (IARC) said Thursday that the popular sweetener aspartame is a "possible carcinogen," based on recent studies that suggest it may be linked to a higher risk of liver cancer. But another WHO agency, the Joint Expert Committee on Food Additives (JECFA), said it is not changing its guidance that people can safely consume about nine to 14 cans of aspartame-sweetened diet soda a day. "Our results do not indicate that occasional consumption should pose a risk to most consumers," Francesco Branca, director of the department of nutrition and food safety at the WHO, said Wednesday. But the risk isn't zero and heavy aspartame consumers should probably cut back, he added, and everyone would be better off drinking water and eating naturally sweet food like fruit.

The Washington Post USA Today

5. Stock futures wobble as investors await big bank earnings reports

U.S. stock futures edged lower Friday morning, with those for the S&P 500, the Nasdaq-100, and the Dow Jones Industrial Average all down about 0.1%. Investors were waiting for second-quarter earnings reports from JPMorgan Chase, Citigroup, Wells Fargo, and other big banks, expected Friday. "Expectations for this season are downbeat," CNBC reported, "with analysts forecasting a roughly 7% year-over-year drop in S&P 500 earnings."

CNBC MarketWatch

The daily business briefing: July 13, 2023

theweekonlineeditors@futurenet.com (The Week Staff) — Thu, 13 Jul 2023 10:52:14 +0000

1. U.S. inflation falls to 2-year low

Consumer prices rose 3% in June versus a year earlier, and 0.2% from May, the Labor Department said Wednesday. That's the smallest increase in the inflation rate since March 2021 and down sharply from a peak of 9.1% in June 2022. The core Consumer Price Index, which strips out volatile food and energy costs, rose 4.8%. "After a punishing stretch of high inflation that eroded consumer's purchasing power, the fever is breaking," Comerica Bank chief economist Bill Adams told The Wall Street Journal. "I think the inflation story is history," predicted veteran economist Steve Hanke. The cooling inflation data, especially if confirmed by Thursday's producer price index numbers, will give the Federal Reserve leeway to stop raising interest rates.

The Wall Street Journal CNBC

2. Disney CEO Bob Iger's contract extended through 2026

Bob Iger is staying put, with the Walt Disney Company announcing on Wednesday that its board of directors voted unanimously to extend the CEO's contract through Dec. 31, 2026. He first served as CEO from 2005 to 2020, and returned to the company in November 2022 after Bob Chapek was ousted from the position. "On my first day back, we began making important and sometimes difficult decisions to address some existing structural and efficiency issues, and despite the challenges, I believe Disney's long-term future is bright," Iger said in a statement. When he rejoined the company last year, Iger signed a two-year deal and had a mandate from the board to determine a successor. There isn't one in place, but the board has formed a committee to find one.

The Hollywood Reporter

3. Ray Epps sues Fox News for defamation over 'fantastical' Jan. 6 claim

Ray Epps filed a defamation lawsuit against Fox News on Wednesday in response to former host Tucker Carlson repeatedly accusing him of helping stoke violence during the Jan. 6 Capitol attack. Epps, a supporter of former President Donald Trump, was in Washington, D.C., on Jan. 6, 2021, but has denied allegations that he was working with a federal agency and purposely instigated rioters. Carlson did not share on air any evidence of his claims, and the lawsuit calls the accusations "fantastical." Michael Teter, an attorney for Epps, told NPR his client regularly watched Fox News and was a Carlson fan until the host and the network created "a fictitious story and narrative about him that is wholly untrue. And because of that he has faced harassment and threats from Fox viewers and others that have ruined his life."

NPR

4. San Francisco's Anchor Brewing closing after 127 years

Anchor Brewing Co., the iconic San Francisco brewery opened in 1896 and purchased by Japan's Sapporo in 2017, announced Wednesday that it has stopped brewing its ales and will cease operations in the coming weeks. Anchor spokesman Sam Singer said the brewery was "losing millions of dollars a year" and "the impacts of the pandemic, inflation — especially in San Francisco — and a highly competitive market left us with no choice but to make this sad decision." Anchor has nearly folded several times in its 127-year history, but this may be the actual last call. "Anchor's always had a special place in the beer world and a special place in San Francisco," Singer said. "They were out of cash and out of time."

San Francisco Chronicle Los Angeles Times

5. Dollar drops to lowest level since April 2022

Stock futures were up Thursday morning following a market surge on Wednesday. S&P 500 futures were up 0.4% after the index hit its highest close in over a year. Futures for the Nasdaq 100 were up 0.7% and those for the Dow Jones Industrial Average rose 0.2%. Data showing inflation is cooling "eased some worries that the Federal Reserve may tip the economy into a recession," CNBC reported. In response, the dollar crashed to its lowest level since April 2022. Investors will get a more complete picture with the release of the producer price index on Thursday.

CNBC Reuters

The daily business briefing: July 12, 2023

theweekonlineeditors@futurenet.com (The Week Staff) — Wed, 12 Jul 2023 12:03:52 +0000

1. Congress: Tax-prep giants shared private taxpayer data with Facebook, Google

Some of the biggest tax-prep companies shared sensitive customer data with Meta's Facebook and Google without consent or appropriate disclosures, according to new congressional report. The seven-month investigation by a group of lawmakers found that TaxSlayer, H&R Block, TaxAct, and other firms sent customer data including names, phone numbers, email addresses, filing status, income, refunds, and tax breaks to Facebook, which acknowledged it used that information to target ads to those customers, and Google. "On a scale from one to 10, this is a 15," Georgetown University law professor David Vladeck told CNN. "This is as great as any privacy breach that I've seen other than exploiting kids. This is a five-alarm fire, if what we know about this so far is true." The lawmakers, led by Sen. Elizabeth Warren (D-Mass.), said the companies violated the law and should face steep fines and other sanctions.

CNN CNBC

2. Hollywood calls in federal mediators as actors strike looms

SAG-AFTRA, the union representing 160,000 screen and television actors, agreed late Tuesday to a request by Hollywood studios to bring in federal mediators as both sides work to avoid the first actors strike in decades before a Wednesday night deadline. Filming is already largely on pause due to a Writers Guild of America (WGA) strike that began in May. Hollywood hasn't dealt with a double strike by writers and actors since 1960, when the main issue was residuals from films sold to TV networks. The actors and writers are now asking for higher pay and assurances about the use of artificial intelligence, and all sides are trying to adapt to the ascent of online streaming. The studios and WGA have not held talks since the strike began on May 2.

Reuters

3. Bank of America to pay $250 million in fines and refunds to customers

Bank of America must reimburse customers more than $100 million and pay $150 million in fines after the banking giant "wrongfully withheld credit card rewards, double-dipped on fees, and opened accounts without consent," Consumer Financial Protection Bureau Director Rohit Chopra said Tuesday. These practices are "illegal and undermine customer trust," Chopra added. In one of the policies targeted by the CFPB, the bank charged customers $35 every time a transaction was declined due to insufficient funds. The CFPB said Bank of America would impose a fee each time a business attempted to recharge the customer after the first transaction failed. This practice was stopped in 2022, but Bank of America will still have to refund customers who were affected.

The Associated Press

4. U.S. judge clears Microsoft's Activision acquisition, thwarting FTC

A federal judge said Tuesday that Microsoft can complete its $75 billion acquisition of videogame giant Activision Blizzard, ruling that the Federal Trade Commission hadn't adequately supported its case for an injection on the merger. The FTC tried to block Microsoft's purchase, arguing the Xbox maker's acquisition of popular titles like Candy Crush, World of Warcraft and the Call of Duty franchise would harm consumers and limit competition. U.S. District Judge Jacqueline Scott Corley disagreed, saying the evidence actually "points to more consumer access to Call of Duty and other Activision content." With the U.S. path cleared for the mega-merger, only Britain's Competition and Markets Authority stands in the way, though the U.K. antitrust regulator indicated Tuesday it would consider Microsoft's proposals to address its competition concerns.

The Wall Street Journal

5. Stock futures up slightly ahead of key inflation data

U.S. stock futures rose slightly Wednesday morning as investors awaited federal inflation data scheduled for release this week. Futures tied to the Dow Jones Industrial Average and S&P 500 were up 0.2% and 0.3%, respectively, at 7:45 a.m. ET, while Nasdaq futures climbed 0.4%. Data for June's consumer prices will be released Wednesday morning, and economists polled by Dow Jones expect a modest rise of 0.3% from May and 3.1% from June 2022. Producer prices will be released Thursday. The consumer price index data "could show that inflation is continuing to cool," said Chris Zaccarelli, chief investment officer of the Independent Advisor Alliance. "But if it shows that inflation is remaining persistent ... that's likely to force the Fed's hand" on raising interest rates even further.

CNBC

The daily business briefing: July 11, 2023

theweekonlineeditors@futurenet.com (The Week Staff) — Tue, 11 Jul 2023 12:12:28 +0000

1. Threads hits 100 million sign-ups

Threads, Meta's Twitter competitor, hit 100 million sign-ups over the weekend, Meta CEO Mark Zuckerberg announced on Monday, less than a week after its launch. Zuckerberg said it is "mostly organic demand," as the company hasn't "turned on many promotions yet." Twitter does appear to be taking a hit — online activity tracker SimilarWeb found that on the first two full days Threads was available, Twitter traffic was down 5% compared to the same two days of the previous week. Looking at year over year numbers, traffic was down 11%. Twitter said that in June, it had about 535 million monthly active users. Threads users must also have an Instagram account, and Meta said the platform has more than 2 billion monthly users.

The Wall Street Journal

2. Amazon Prime Day to test consumer sentiment amid inflation

Amazon is promising steeper discounts during its annual 48-hour Prime Day sales event Tuesday and Wednesday, and analysts will be watching to see if consumers respond after a year of rising inflation and tempered post-pandemic spending on electronics and other categories. The Prime Day event is an early indicator of consumer sentiment heading into the crucial winter holiday season, but Amazon's sales event has been copied by other major retailers looking for a similar boost in the summer shopping lull. Walmart, Best Buy, Target, and other retailers are offering their own discounts to rival Amazon's Prime Day event. "This week is turned into a pretty major shopping event, similar to the likes of Black Friday and Cyber Monday," said CFRA Research analyst Arun Sundaram.

Reuters The Wall Street Journal

3. Thousands of Los Angeles hotel workers walk off job to strike

Thousands of members of the Unite Here Local 11 union participated in a second wave of strikes on Monday near the Los Angeles International Airport, walking out of eight major hotels. The union represents 32,000 service workers in Southern California and Arizona, and has been in contract negotiations since April, calling for better wages and benefits. Unite Here Local 11 asked for a $5 an hour raise now, as well as an annual raise of $3 an hour for the next three years, but no deal was reached by the time contracts expired on June 30. The union's first strike was held over Fourth of July weekend, with thousands of service workers walking out across Los Angeles and Orange counties. Union officials told the Los Angeles Times they do not have an end date for the current strike, and more are scheduled for later this week at other hotels.

The Los Angeles Times

4. Stock futures remain steady

Stock futures were mostly flat Tuesday morning as Wall Street awaited the release of key inflation data on Wednesday. Futures for the Dow Jones Industrial Average were "a touch softer and Nasdaq futures a bit higher," said MarketWatch. Futures for the S&P 500, which broke a three-day losing streak Monday, were also up slightly. "Markets started the week in a holding pattern, but a rates rally in the U.S emerged as the main theme on Monday that sent the 10-year Treasury yield back beneath 4% again," said Henry Allen, strategist at Deutsche Bank. Stocks making big pre-market moves included JPMorgan Chase, which was up 1.2%, JetBlue Airways at +2%, and Zillow Group, which "popped 4.7% after being upgraded by Piper Sandler to overweight from neutral," said CNBC.

MarketWatch CNBC

5. Used car prices expected to stabilize

Used car prices are expected to stabilize during the second half of 2023, CNBC reported. Wholesale prices for used cars saw their biggest decline last month since the start of the Covid-19 pandemic, and because "retail prices traditionally follow changes in wholesale prices," CNBC said, the price drop could soon trickle down to consumers. Used vehicle prices have remained high in part due to supply chain issues coupled with resilient demand. Cox Automotive said it expected wholesale prices to come back to pre-pandemic levels by 2028.

CNBC

The daily business briefing: July 10, 2023

theweekonlineeditors@futurenet.com (The Week Staff) — Mon, 10 Jul 2023 11:27:26 +0000

1. Yellen hails 'step forward' in tense China ties at end of Beijing trip

Treasury Secretary Janet Yellen concluded a high-stakes visit to Beijing on Sunday that had included 10 hours of talks with top Chinese economic officials. Her first real interactions with Chinese President Xi Jinping's newly installed economic team were "direct, substantive and productive," Yellen said in a press conference Sunday, and her trip marked a "step forward" in the Biden administration's efforts to stabilize rocky relations between the world's top two economies, though "significant disagreements" remain. Yellen told Chinese officials the U.S. has no interest in decoupling from China's economy, and could be flexible on export restrictions of advanced microchips and other technology. Her warm reception contrasted with the chillier tone of Secretary of State Antony Blinken's recent trip to Beijing.

The Wall Street Journal The Washington Post

2. India will overtake U.S. economy by 2075, Goldman projects

India, the world's fifth-largest economy by gross domestic product (GDP), will jump to the No. 2 position in the next 50 years, Goldman Sachs economists predict. Thanks largely to its progress in technology and innovation, investments in infrastructure, and a large pool of young workers, India will leapfrog Germany, Japan and the U.S. by 2075, coming in second only to China, according to a report by Goldman Sachs Research's India economist Santanu Sengupta. According to Goldman's projections, China will have a GDP of $57 trillion in 50 years versus India's $52.5 trillion and the U.S.'s $51.5 trillion.

CNBC

3. Schumer calls on FDA to investigate caffeine levels in influencer-backed energy drink

Senate Majority Leader Chuck Schumer (D-N.Y.) is asking the Food and Drug Administration to launch an investigation into PRIME, an energy drink with elevated levels of caffeine. "One of the summer's hottest status symbols for kids is not an outfit or a toy — it's a beverage," Schumer said Sunday. "But buyer and parents beware, it's a serious health concern for the kids it so feverishly targets." PRIME launched in 2022, and is backed by YouTubers Logan Paul and KSI. The sugar-free beverage has 200 milligrams of caffeine per 12 ounces, the equivalent of roughly six cans of Coke. Too much caffeine can lead to heart problems, anxiety, and digestive issues, and the drink has been banned from schools in the United Kingdom and Australia. PRIME representatives said they offer another drink called PRIME Hydration, which is caffeine-free, and PRIME itself is labeled as "not recommended for children under 18."

The Associated Press

4. Stock futures edge down ahead of inflation data

Stock futures were down slightly Monday morning as the second-quarter earnings season kicked off. Futures for the Dow Jones Industrial Average were down 0.1%, while those for the S&P 500 dropped 0.3%. Nasdaq futures were down 0.4%. The market is bracing for inflation data expected Wednesday, which could help inform the Federal Reserve's next move on interest rate hikes. Last week's jobs report "showed that hiring is beginning to ease," said Barron's, but wage growth remains high, and that "reaffirmed expectations that the Fed will hike rates next week." Quarterly earnings reports from "finance behemoths" including JPMorgan Chase and Citi are also expected this week.

CNBC Barron's

5. Powerball jackpot rises to an estimated $650 million

With no winners on Saturday, the Powerball jackpot for Monday's drawing is up to an estimated $650 million. The jackpot was last hit in April, and Monday's top prize is the ninth largest in Powerball history. The odds of winning Monday's jackpot are 1 in 292,201,338, Powerball said, and if there is a winner, they will be able to select an annuitized prize or a lump sum payment estimated at $328.3 million. The largest-ever Powerball jackpot was hit in November 2022, when a California resident won $2.04 billion. Powerball drawings are held on Mondays, Wednesdays, and Saturdays, with tickets available in 45 states as well as Washington, D.C., Puerto Rico, and the U.S. Virgin Islands.

CBS News

The daily business briefing: July 7, 2023

theweekonlineeditors@futurenet.com (The Week Staff) — Fri, 07 Jul 2023 11:19:43 +0000

1. FDA grants full approval to Alzheimer's drug Leqembi

The Food and Drug Administration on Thursday gave full approval to Leqembi, a drug that can slow the progression of Alzheimer's disease. While other drugs have been approved that target the symptoms of Alzheimer's, this is the first time the FDA has granted full regulatory approval to one meant to slow cognitive decline. Leqembi, made by the drugmakers Eisai and Biogen, targets beta-amyloid, a kind of protein in the brain believed to play a role in Alzheimer's disease. For the phase 3 clinical trial of the drug, 1,795 people with mild cognitive impairment or early-stage Alzheimer's participated, and researchers found that over 18 months, progression of the disease slowed by 27%. This is not a cure, but "it's a first step for hopefully more therapeutics in the future," Dr. Ronald Peterson, a neurologist at the Mayo Clinic, told NBC News. Leqembi could cause serious side effects, including brain swelling and hemorrhage, and the drug will come with a boxed warning.

NBC News

2. Yellen slams China on 'punitive' measures aimed at foreign firms

U.S. Treasury Secretary Janet Yellen leveled "a forceful objection" to China's measures aimed at foreign firms, The New York Times reported. Yellen is in Beijing in on a "high stakes-trip" to smooth relations between the U.S. and China, but "tension between the two nations has escalated," the Times added. Yellen accused China of taking "punitive" action against American companies. The Chinese government recently detained five Chinese nationals working for an American consulting firm, and imposed export controls on some critical minerals. "We are still evaluating the impact of these actions, but they remind us of the importance of building resilient and diversified supply chains," Yellen said. The Biden administration has been trying to restrict China's access to semiconductor components and kneecap the country's tech development.

The New York Times CNBC

3. 'Scorching hot' jobs report defies expectations

An "expectation-shattering" June jobs report published Thursday showed that the U.S. labor market remained strong, CNBC reported. Companies added almost half a million jobs in June according to ADP, more than double the projected estimates "despite growing risks of a recession," Reuters said. The "scorching hot" jobs report has traders worried about what the Fed will do next, CNBC said. "The jobs data … reaffirmed that the U.S. economy isn't cowed by current interest rates, meaning that higher rates in the upcoming months are all but certain." The "main event for economic data" comes on Friday when the Labor Department releases its June payroll report, which is expected to show an increase of 240,000 roles. All three major indexes were on track for weekly losses.

CNBC Reuters

4. Twitter threatens to sue Meta over Threads

Twitter's legal team has accused Meta of "deliberately" copying the Twitter application for its new Threads app and poaching former Twitter employees to do so, Semafor reported on Thursday. "Over the past year, Meta has hired dozens of former Twitter employees" who "improperly retained Twitter documents and electronic devices" and "continue to have access to Twitter's trade secrets and other highly confidential information," lawyer Alex Spiro wrote in a cease-and-desist letter. He also accused Meta of "deliberately" assigning those employees to create Threads, adding that "Twitter intends to strictly enforce its intellectual property rights, and demands that Meta take immediate steps to stop using any Twitter trade secrets or other highly confidential information." A Meta source denied the Twitter team's accusations. "No one on the Threads engineering team is a former Twitter employee," the person told Semafor. "That's just not a thing."

Semafor

5. Global regulator sets out emissions targets for shipping industry

A group of negotiators representing nearly every country in the world reached a tentative agreement Thursday to "effectively eliminate" the shipping industry's greenhouse gas emissions by 2050, The New York Times reported. The commitment from the International Maritime Organization, the global shipping regulator, is "in line with limiting global warming to 1.5 degrees Celsius," the Times said. The shipping industry accounts for roughly 3% of global greenhouse gas emissions and is set to grow, but zero-emission fuel alternatives are emerging. The IMO agreement is nonbinding but is aimed at encouraging governments to set their own aggressive emissions targets for shipping companies.

The New York Times

The daily business briefing: July 6, 2023

theweekonlineeditors@futurenet.com (The Week Staff) — Thu, 06 Jul 2023 11:20:54 +0000

1. Meta launches Threads, its alternative to Twitter, a day early

Meta's new app Threads, which allows users to post their own messages and like or reply to others, was released on Wednesday evening, a day ahead of schedule. Social media users have dubbed Threads a "Twitter killer," as it could cause Twitter users, upset with changes being made by CEO Elon Musk, to leave. In an Instagram post, Meta founder and CEO Mark Zuckerberg said the vision behind Threads "is to take the best parts of Instagram and create a new experience for text, ideas and discussing what's on your mind. I think this world needs this kind of friendly community, and I'm grateful to all of you who are part of Threads from day one." In its first seven hours, Threads saw 10 million sign ups.

The Associated Press Tech Crunch

2. UPS strike looms after union negotiations fall apart

The United Parcel Service (UPS) moved closer to its first strike in 27 years after contract negotiations with the Teamsters Union fell apart Wednesday. Both sides accused one another of walking away from talks. The existing contract expires at the end of July. Union workers want better working conditions and higher pay, and point to workers' efforts to maintain deliveries during the Covid-19 pandemic, which "fueled big profits for the company," The Guardian reported. UPS, which delivers more than 20 million packages around the world per day, has "the biggest unionized workforce of any company" in America, the BBC reported. A walkout could give rival FedEx an advantage that UPS would struggle to overcome, Satish Jindel, president of logistics consulting firm ShipMatrix, told The Guardian.

The Guardian BBC

The Department of Justice (DOJ) plans to appeal a judge's order barring federal officials and agencies from communicating with social media companies about "content containing protected free speech." The injunction, issued by US District Judge Terry Doughty, "is part of a lawsuit brought by Republican attorneys general from Missouri and Louisiana," CNN reported. The lawsuit accuses the Biden administration of trying to silence conservatives by harping on social media sites to remove misinformation related to the Covid-19 pandemic. The DOJ's appeal would take the fight to the 5th US Circuit Court of Appeals, "arguably the nation's most conservative appeals court," CNN said.

CNN

4. GQ pulls article critical of Warner Bros. Discovery CEO David Zaslav

An article posted to the GQ website critical of Warner Bros. Discovery CEO David Zaslav was quickly removed on Monday, with the publication saying it had not been properly edited. Written by freelancer Jason Bailey, the article, "How Warner Bros. Discovery CEO David Zaslav Became Public Enemy Number One in Hollywood," dove into recent debacles, including the backlash to Zaslav's decision to lay off the leadership team at Turner Classic Movies. A spokesman for Warner Bros. Discovery told The Wall Street Journal on Wednesday GQ did not factcheck the article before it was published and the company contacted the magazine to point out inaccuracies, while a GQ spokeswoman said the article wasn't thoroughly edited. When it was put back up online, references comparing Zaslav to Logan Roy on "Succession" and Edward Lewis in "Pretty Woman" were removed. The parent company of Condé Nast, which owns GQ, is Advance, a main stakeholder in Warner Bros. Discovery.

The Wall Street Journal

5. Stock futures fall as market braces for further rate hikes

U.S. stock futures fell Thursday "on mounting concerns of a slowdown in the global economy," The Wall Street Journal reported. Futures for the S&P 500, Dow Jones Industrial Average, and Nasdaq-100 all lost about 0.5%. Traders are anticipating further interest rate hikes, especially after minutes from the Federal Reserve's June meeting showed "almost all" rate-setters expect at least two more rate increases by the end of the year. Treasury Secretary Janet Yellen arrives in China on Thursday and will "attempt to further repair the relationship between the world's two largest economies," The Economist said.

The Wall Street Journal The Economist

The daily business briefing: July 5, 2023

theweekonlineeditors@futurenet.com (The Week Staff) — Wed, 05 Jul 2023 13:36:46 +0000

In response to a lawsuit filed by the Republican attorneys general of Louisiana and Missouri, a federal judge on Tuesday severely limited how U.S. government officials can meet and communicate with social media companies. The attorneys general claimed that officials from Biden administration agencies encouraged the social media companies to crack down on misinformation related to Covid-19 and elections, which amounted to "the most egregious violations of the First Amendment in the history of the United States of America." Judge Terry A. Doughty, a Trump appointee, wrote in the injunction that the attorneys general "have produced evidence of a massive effort by defendants, from the White House to federal agencies, to suppress speech based on its content." Doughty has not made a final ruling in the case, and his order allows for communications regarding national security threats and criminal activity.

The Washington Post

2. Meta set to release Twitter-like app Threads on July 6

Meta is expected to unveil Threads, its alternative to Twitter, on Thursday, with the new social media app available for pre-order in the Apple App Store and Google Play Store. This is Instagram's "text-based conversation app," Meta said, where users can "follow and connect directly with your favorite content creators and others who love the same things." Images from the App Store show that users will be able to like, reply and repost stories, and can also keep their Instagram usernames. As Threads prepares to launch, its rival Twitter continues to make major changes to the platform, including limiting the number of tweets users can see and forcing people to sign in to view tweets.

CBS News

3. Sales of new cars remain high despite economic pressures

The U.S. auto industry is defying expectations as new-car sales continue to rise despite high interest rates and inflation, The Wall Street Journal reported. "American car shoppers have been flocking to dealerships" in the first half of 2023, the Journal said, and the industry is expected to report a rise of up to 14% in new vehicle sales. The high numbers are due in part to pent-up demand triggered by vehicle shortages over the last few years. "Sales are bouncing back faster than many analysts had expected," the Journal said. The average price for a new car was $46,000 in June, a near-record high. Demand is expected to fall later this year.

The Wall Street Journal

4. Stock futures fall after weak China data sparks concerns

U.S. stock futures were down early Wednesday ahead of a return to trading after the Independence Day holiday. Futures tied to the S&P 500 were down 0.5% while Nasdaq 100 futures fell 0.6% and Dow futures slid 0.4%. Fresh data showed China's services sector grew slower than expected, sparking concerns about "the global economy powering down" amid tepid post-pandemic recovery, Susannah Streeter, head of money and markets at Hargreaves Lansdown, told MarketWatch. Investors are awaiting minutes from the Fed's June policy meeting, which could provide clues about looming interest rate hikes.

MarketWatch The Wall Street Journal

5. UPS, Teamsters talks hit hiccup as strike looms

UPS and the International Brotherhood of Teamsters are at odds after hitting what appears to be a roadblock in labor negotiations necessary to avoid a damaging strike. The Teamsters said Wednesday that UPS walked away from talks after the union rejected an allegedly unacceptable offer. But UPS claimed that it remains at the bargaining table and is encouraging continued discussion after Teamsters halted negotiations. "We have nearly a month left to negotiate," UPS said. "We have not walked away, and the union has a responsibility to remain at the table." The roughly 340,000 UPS workers represented by the union have said that without a new deal, they will not work past the expiration of their current contract, which ends July 31. The union-represented staffers also already voted last month to authorize a strike if a new agreement is not reached.

The Wall Street Journal Reuters

The daily business briefing: July 3, 2023

theweekonlineeditors@futurenet.com (Catherine Garcia, The Week US) — Mon, 03 Jul 2023 11:20:25 +0000

1. Tesla reports record quarter for sales

Tesla announced on Sunday that from April to June, its worldwide deliveries rose 83%. This was a record quarter with more than 466,000 vehicles delivered, and the boost was likely due to steep price cuts, The Wall Street Journal reported. One example is the Model Y SUV, which in early January started at $65,990 and now starts at $50,490. Tesla is the world's No. 1 seller of electric vehicles, and has been aiming for 50% annual delivery growth on average. The company also revealed that in the second quarter, it produced 479,700 vehicles. From January to June, Tesla's shares more than doubled, and ended June at $261.77; this is below the stock's peak of more than $400 a share in November 2021.

The Wall Street Journal

2. Janet Yellen set to go to China to stabilize relations

Treasury Secretary Janet Yellen is heading to Beijing this week to meet with senior officials, less than a month after Secretary of State Antony Blinken traveled to China to speak with President Xi Jinping. This is part of an effort to improve relations between the U.S. and China, and Yellen is expected to not only share with Chinese officials the "three principles guiding America's economic relationship with Beijing," Axios reported, but will also state her concerns over economic coercion by China. Yellen said she will use this trip to "reestablish contact," telling MSNBC last week that "there are a new group of leaders, we need to get to know one another." Her visit to Beijing was supposed to happen earlier, but was postponed in February after President Biden ordered the military to shoot down a Chinese spy balloon flying over the U.S.

Axios

3. Thousands of Southern California hotel workers go on strike

Thousands of hotel workers in Southern California went on strike Sunday, with union organizers calling for better wages and health care benefits and larger pension contributions. The strikers are from Unite Here Local 11, representing cooks, dishwashers, servers, room attendants, bellmen, and front desk agents. The union has about 32,000 members in Southern California and Arizona, with the strike affecting about half. Contracts expired on Friday at midnight. While talks have stalled between the union and dozens of hotels involved in negotiations, a tentative agreement was reached last week with the Westin Bonaventure Hotel & Suites in downtown Los Angeles, its biggest employer with more than 600 workers.

Los Angeles Times

4. 'Indiana Jones and the Dial of Destiny' has a disappointing opening weekend

"Indiana Jones and the Dial of Destiny," Harrison Ford's farewell to the role of Indiana Jones, grossed $60 million domestically in its opening weekend. It was a disappointing showing for a film that reportedly cost close to $300 million, and it was also a decline from "Indiana Jones and the Kingdom of the Crystal Skull," which had a three-day debut of $100 million in 2008. It's possible Disney's decision to premiere "Dial of Destiny" at the Cannes Film Festival in May hurt the film, as early reviews were surprisingly negative. As a result, the movie sat with a "rotten" rating on Rotten Tomatoes a month before its release.

The Hollywood Reporter

5. Stock futures mixed as 2nd half of 2023 kicks off

Stock futures were mixed in premarket trading Monday as Wall Street marked the beginning of the second half of 2023. Futures for the Nasdaq were up 0.2% and those for the S&P 500 were up 0.1%. Dow Jones Industrial Average futures were down 0.1%. Shares of companies were leading premarket, reported The Wall Street Journal, with Tesla out ahead. Its stock jumped 6% in premarket trading after the electric-vehicle company posted record quarterly sales. "Stocks are coming off a banner start to 2023," said CNBC. The U.S. stock markets will close early on Monday and remain closed Tuesday in observance of Independence Day.

The Wall Street Journal CNBC

The daily business briefing: June 30, 2023

theweekonlineeditors@futurenet.com (Harold Maass, The Week US) — Fri, 30 Jun 2023 11:29:12 +0000

1. Supreme Court says devout postal worker can demand Sundays off

The Supreme Court on Thursday ruled in favor of an evangelical Christian postal worker, Gerald Groff, who wanted to take Sundays off for church and rest but was told he had to work. The government argued Groff's demands caused scheduling conflicts and burdened his colleagues after the Postal Service started delivering Amazon packages on Sundays. The unanimous ruling could have broad impact on U.S. workplaces. Groff's lawyers wanted the court to throw out a 1977 precedent that made it easier for employers to deny such requests. Instead, the court defined "the contours" of the law in a way more favorable to employees, saying employers had to show "granting an accommodation would result in substantial increased costs."

USA Today

2. Virgin Galactic sends its first paying customers to edge of space

Virgin Galactic launched a rocket plane with three Italian passengers to the edge of space, more than 50 miles above the New Mexico desert on Thursday. It was the first flight with paying customers by British billionaire Richard Branson's company, which he founded in 2004. The passengers on the flight were two Italian air force officers and an aerospace engineer from the National Research Council of Italy. Three Virgin Galactic crew members, including two pilots, were also on board the brief sub-orbital flight on the VSS Unity, which launched at high altitude from the belly of a carrier plane. Virgin joins Jeff Bezos' Blue Origin and Elon Musk's SpaceX in a growing space tourism industry catering to wealthy adventurers.

Reuters

3. Women asked sexually explicit questions by firm screening Gates Ventures job applicants

Some female job candidates at billionaire Bill Gates' private office said a security firm, Concentric Advisors, asked them about their sexual histories and other parts of their private lives to assess their vulnerability to blackmail, The Wall Street Journal reported Thursday, citing job candidates and others familiar with the matter. The Journal said it couldn't confirm that no men were asked the same questions — which included whether they ever had extramarital affairs or had nude pictures of themselves on their phones — but none it interviewed had. A spokesperson for Gates Ventures wasn't aware third-party contractors conducting background checks had asked any such questions, which she said "would be unacceptable." Concentric said it complied with all applicable laws.

The Wall Street Journal

4. Stock futures rise as strong quarter ends

U.S. stock futures rose slightly early Friday ahead of the final day of trading in what has been a strong first half of the year, as investors awaited key inflation data. Futures tied to the Dow Jones Industrial Average and the S&P 500 were up 0.3% and 0.4% at 6:30 a.m. ET. Nasdaq futures were up 0.5%. The Dow and the S&P 500 gained 0.8% and 0.5%, respectively, on Thursday. The tech-heavy Nasdaq was flat. The S&P 500 is up 5.1% in June — its best month since January — and 7% in the second quarter. The Dow has gained 3.7% in June, the most since November.

CNBC

5. Nike shares slip after mixed earnings report

Nike shares fell 3% in after-hours trading Thursday after the sports apparel giant reported strong sales but weaker-than-expected earnings. Nike posted adjusted earnings per share of $0.66, just under the $0.67 expected. The company said gross margins fell to 43.6%, down from 45% in the same quarter last year but just ahead of the 43.5% expected by analysts surveyed by Bloomberg. Nike said the drop was "primarily due to higher product input costs and elevated freight and logistics costs." It said higher markdowns and ongoing foreign-exchange rate changes also were factors. The company said it was able to partially offset the problems with "strategic pricing actions."

Yahoo Finance