The Edsel, Quibi and CNN+? New addition to business failures
NEW YORK (AP) — Epic business failures — the Edsel, Quibi, New Coke — have some new company. CNN’s parent company ordered the CNN+ streaming service shut down before it had even completed a month of operation. It’s a spectacular failure, with the idea of a paid streaming service for news questionable and unproven to begin with, and it was also a victim of...
The Edsel, Quibi and CNN+? New addition to business failures
NEW YORK (AP) — Epic business failures — the Edsel, Quibi, New Coke — have some new company. CNN’s parent company ordered the CNN+ streaming service shut down before it had even completed a month of operation. It’s a spectacular failure, with the idea of a paid streaming service for news questionable and unproven to begin with, and it was also a victim of a corporate leadership change. The service started last month only weeks before a new leadership team at Warner Bros. Discovery took over, one that had nothing to do with the idea’s development and quickly made clear they thought it was wrong-headed.
Stocks stumble 2.8% as worries about interest rates worsen
NEW YORK (AP) — Stocks slumped on Wall Street Friday, leaving the S&P 500 with its biggest one-day loss in almost seven weeks, as worries deepen about a surge in interest rates and the U.S. central bank’s efforts to fight inflation. The S&P 500 sank 2.8% and marked its third losing week in a row. Several disappointing profit reports from companies also shook what’s been the market’s main pillar of support. A day earlier the chair of the Federal Reserve indicated that the Fed is likely to move aggressively to contain inflation with bigger interest rate increases, starting with its next policy meeting in two weeks.
Why Fed worries about the strongest US job market in decades
WASHINGTON (AP) — Chair Jerome Powell isn’t as pleased with the robust U.S. job market as you might think he’d be, and he and the Federal Reserve plan to do something about it: Take it down a notch. Powell described the job market this week as “extremely, historically” tight and “unsustainably hot.” Available jobs are near record highs. Wages are rising at their fastest pace in decades. The unemployment rate is flirting with a half-century low, and layoffs are sparse. Yet Powell doesn’t see all of this as purely a cause for celebration. With the highest inflation in four decades hurting households and businesses, the Fed chair regards the job market’s strength as a key driver of spiking prices.
Disney government dissolution bill signed by DeSantis
TALLAHASSEE, Fla. (AP) — Florida Gov. Ron DeSantis has signed a bill dissolving Walt Disney World’s private government, after the entertainment giant criticized a measure that critics have dubbed the “Don’t Say Gay” law. DeSantis signed the bill on Friday. It would eliminate the Reedy Creek Improvement District, as the 55-year-old Disney government is known, as well as a handful of other similar districts by June 2023. The measure does allow for the districts to be reestablished, leaving an avenue to renegotiate its future. The move could have huge tax implications for Disney, whose series of theme parks have transformed Orlando into one of the world’s most popular tourist destinations.
Big Tech faces ‘major’ EU law on hate speech, disinformation
LONDON (AP) — European Union officials are nearing agreement on a sweeping new law aimed at protecting internet users by forcing big tech companies like Google and Facebook to step up their efforts to curb the spread of hate speech, disinformation and other harmful content. EU officials negotiated late Friday over the final details of the legislation, dubbed the Digital Services Act. The law would overhaul the EU’s digital rulebook and cement its position as a leader in trying to rein in the power of online platforms and social media companies. Negotiators were hoping to hammer out a deal ahead of elections in France on Sunday. A new French government might stake out different positions on these issues.
American Express profits fall slightly, but spending jumps
NEW YORK (AP) — American Express’ first-quarter profits fell roughly 6% from a year earlier, but the company saw a 30% jump in spending on its namesake cards in the quarter as its cardmembers returned to their habits of shopping, traveling and dining. The New York-based company posted a profit of $2.1 billion, or $2.73 a share, down from $2.24 billion, or $2.74 a share, a year earlier. Last year’s results had a one-time boost to AmEx’s results, as the company released some reserves that it had set aside to cover potential losses earlier in the pandemic.
France issues arrest warrant for disgraced auto tycoon Ghosn
PARIS (AP) — French prosecutors have issued an international arrest warrant for disgraced auto tycoon Carlos Ghosn, who fled Japan in 2019 for Lebanon in a gripping escape. The Nanterre prosecutors’ office said Friday that the arrest warrant for the former head of Nissan and Renault is one of five it has issued. It’s based on an investigation opened in 2019 into money laundering and abuse of company assets reportedly over millions in alleged suspect payments made between the Renault-Nissan alliance and Suhail Bahwan Automobiles (SBA), a vehicle distributor company in Oman. The Nanterre investigation is one of two separate cases involving Ghosn in France.
Looking to deepen pain for Putin, West studying oil and gas
WASHINGTON (AP) — The United States unleashed some of its toughest actions against Russian President Vladimir Putin right after he rolled his troops into Ukraine. Polls in the U.S. find support for doing more. So what options are left to step up the pressure? Many experts say the mightiest trigger the West can pull on Russia is the one on a gas pump nozzle. Oil and gas account for 40% of the Russian government’s revenue and are financing the war in Ukraine. Current and former U.S. officials say cutting the flow of oil and gas revenue to Russia is a prime topic now. But that would mean even more pain at the pump for consumers.
The S&P 500 tumbled 121.88 points, or 2.8%, to 4,271.78. The Dow Jones Industrial Average fell 981.36 points, or 2.8%, to 33,811.40. The Nasdaq shed 335.36 points, or 2.5%, to 12,839.29. The Russell 2000 index of smaller companies lost 50.80 points, or 2.6%, to 1,940.66.