Business news is an essential part of our everyday lives. With each passing week, we are confronted with a never-ending stream of economic developments that shape industries across the globe – from tech to healthcare and beyond!
From the moment you awaken, business headlines can be seen in print or on your preferred medium such as television or radio. They may also appear on social media platforms like Facebook or Twitter; moreover, additional content related to this field can be accessed via apps such as Google News or even through one’s smartphone’s notifications if they utilize such technology!
The headlines you encounter can be a powerful force for good or detrimental to your career path. The choice is all yours!
1. The Fed Is Staying Put
After a period of retaliatory rate hikes, the Federal Reserve has finally opted to maintain its current level of interest rates. This decision is likely owing to the buoyant state of the U.S. economy; henceforth eliminating any possibility of future hikes at this juncture.
The Fed cited four major reasons for its decision: inflation remains low, economic activity has been solid thus far in 2018, employment levels continue to outpace job losses this past year and most recently declining oil prices have brought about considerable benefits for consumers across all levels of income.
All things considered, American business owners could breathe a collective sigh of relief that their financial well-being will not be put under too much strain following a spate of rate hikes over time – an outcome that may come as welcome news for many!
2. AT&T & Time Warner Deal Clears Hurdle
AT&T has cleared another hurdle in its quest to acquire Time Warner, which could culminate with a $85 billion deal.
Last week, the Justice Department came out in favor of U-Turn’s acquisition of DIRECTV – a decision that effectively signaled approval for AT&T’s efforts to acquire Time Warner.
If successful, this would mean one united media behemoth would control a significant swath of content and distribution platforms: AT&T already owns satellite TV service DirecTV as well as mobile operator T-Mobile US alongside parent company Verizon Communications Inc; while Comcast Corporation is also an active participant in the industry – it owns NBC Universal along with various other entertainment entities like Telemundo and Style Network. All three companies’ interests are currently entangled with one another, so coming together under Single Top Company structure could prove quite advantageous. On top conversely – in order for such an arrangement to work – each entity must possess at least some degree of compatible content or services offerings.
3. Amazon Is Adding More than 100
Amazon is expanding its workforce. The Internet giant has been ramping up its operations in recent years, with many reports indicating that the organization’s workforce numbers have continued to increase as well; currently standing at over 330K+ employees!
Despite this expansion, Amazon remains a relative newcomer to the global workforce economy: it was only established 10 years ago in 2006! Nonetheless, the company has experienced steady growth both commercially and operationally since then.
If you are not yet familiarize yourself with Amazon’s product line-up, here are some useful data points: more than 100 million items sold yearly; more than 500 million active customer accounts – with over 4 billion items ordered annually.
On March 5th, 2018, McDonald’s announced that their iconic fast-food restaurant would shutter 700 underperforming locations across the United States. However, rather than vacating these shops altogether – it was decided that those locations would instead be converted into “encore” shops offering freshly prepared items for patrons’ consumption…
As many of you may be aware, McDonald’s employs more than 1.9 million individuals in the United States alone who are dependent on this company for their livelihood. If all of these positions were to become vacant simultaneously, it would result in a considerable number of job losses out of around 6%! Fortunately however, such an unfortunate situation has fortunately not occurred yet; and it is quite conceivable that those companies with substantial workforces could sustain significant losses without incurring any detrimental effects whatsoever on their operations.
4. Fiat Chrysler’s Key Loan Is Approved
On June 9th, 2017, one of the biggest loan deals in automotive history was finally finalized. The $1.6 billion loan from the Department of Energy was approved for Fiat Chrysler Automobiles (FCA) – which will help the company repair and update its plants in order to regain profitability.
On May 31st of this year, the automaker announced it will no longer be partaking in Ghosn-era bonuses that were slated to kick in after 2015. This move comes just months after the government sought a hefty sum to assist with paying down its loan.
5. Samsung Fires Back at Apple in U.S. Lawsuit
On Feb. 27, Samsung filed a federal lawsuit in the U.S., alleging that Apple infringed upon five of its patents for smartphones, tablets and other devices.
The lawsuit was predominantly waged in California, where Apple has been embroiled in numerous patent disputes with other manufacturers.
In its filing, Samsung argued that Apple’s recent decisions to eliminate its popular headphone jack from one of the company’s most recent iPhone models constituted an “abominable” decision; a claim that was promptly rebuffed by legal analysts who opined that it would be nearly impossible for Samsung to secure damages due to such an unorthodox action.
6. Tesla to Cut 9% of Workforce
Tesla has announced that it’s planning to slash 9% of its workforce as part of a companywide cost reduction effort. The automaker intends to trim its workforce by around 7% next year, although this will result in the loss of some 1,200 jobs across locations worldwide – with about 500 located in Fremont and Ohio; 400 in California; and 200 at Gigafactory 1 in Nevada.
Tesla CEO Elon Musk commented on the plan: “Jobs are not being cut, they’re being realigned to help our business become even greater. These cuts were extremely difficult, but we want to operate at peak efficiency now more than ever.”
The announcement comes after many analysts predicted Tesla would need to embark upon layoffs as part of its aggressive initiative for profitability; following several quarters of losses, management has set out plans for achieving sustained profitability.
7. Wells Fargo to Pay $85 Million in Settlement
Last month, the United States announced a settlement with Wells Fargo regarding potentially fraudulent accounts opened in customers’ names without their knowledge. The bank agreed to pay out $100 million within 30 days if no further wrongdoing is detected; otherwise, an additional $50 million will be deducted from its balance.
This resolution is set to emerge amid an internal investigation by Wells Fargo that revealed as many as 1.5 million unauthorized bank accounts had been opened by employees over several years. Additionally, the financial institution has agreed to implement enhanced protocols and ensure accountability across all aspects of its operations going forward – a decision taken after admitting culpability for this lapse in judgment.
If any wrongdoing were uncovered during this investigation, Wells Fargo could potentially face up to $1 billion in fines under federal laws prohibiting false accounts. Furthermore, it could be alleged that banking regulations were violated at other regulatory bodies such as the Federal Reserve or Office of the Comptroller of Currency (OCC) – even if those instances are not currently known for certain.
8. Japan’s Regulators Probe Mitsubishi’s Financial Woes
Over the past few years, Mitsubishi Motors has experienced a tumultuous existence on the financial front. Recently, reports surfaced indicating that legal proceedings had commenced against the company for allegedly falsifying financial records; consequently resulting in a diminished value of its equity and debt securities.
Notwithstanding these investigations, it seems that more is still to come regarding this subject matter. At present the Financial Services Agency (FSA) has initiated an inquiry into the matter before deciding whether or not to issue any penalties – which could potentially result in fines of up to 200 billion yen ($1.96 billion).
9. Ford Facing Pressure From Investors Over Job Cuts
Ford Motor Company has come under scrutiny from investors after announcing it would cut 2,200 jobs at its Flat Rock plant in Michigan by 2020.
Ford’s cost-cutting agenda has been a hot topic of conversation among investors since it announced its intentions to shutter two plants and lay off 5,000 workers last spring. Many remain unconvinced that the automaker will successfully achieve profitability in the near future – though this hasn’t stopped analysts from providing their assessment on whether the recent job cuts are a good idea or not.
Two hundred one fewer employees is a minor decrease for Ford, which plans to cut another 4,500 once its contract with United Auto Workers expires next year. At present, the company employs more than 200,000 people worldwide; however, it is expected that further restructuring efforts could result in even further reductions before long.
10. Boeing Loses Orders for Jets and Tankers
For three consecutive quarters, Boeing’s Commercial Airplane business experienced a decline in sales or cancellations of planes ordered. This led to a 40% drop in operating income last quarter compared to the preceding period; by June 2017 – such profits had plummeted by nearly fifty percent compared to previous forecasts.
Yet once again, analysts are optimistic that the latest results will exceed expectations. The reason? Demand for Boeing planes is soaring; rising from 280 in 2016 to 340 this year – all while choices remain plentiful!
And yet despite these encouraging signs, analysts remain cautious about the future prospects of Boeing’s commercial airplane business.
11. Microsoft Signs Cloud-Computing Pact
In 2018, Microsoft and Amazon Web Services (AWS) resolved a longstanding legal dispute; announcing that the tech giant had reached an agreement to end litigation between the two companies over unfair competition.
The lawsuit arose from Microsoft’s early foray into cloud computing, where AWS owned about 70% of market share in 2017. The U.S.-based enterprise is credited with having pioneered this type of service but it was its rival who originally introduced the concept back in 2006 – yet today only Amazon remains active in this niche!
Such discord led to Microsoft launching its own Azure services for enterprises, spurring AWS’ CEO into action and leading the charge against his former benefactor’s efforts. However, according to sources close to negotiations reportedly this did not result in any progress towards rapprochement – leaving us wondering if either party could ever look past their history as they move forward together!
In the aftermath of a devastating event, such as the loss of a loved one or loss of revenue due to decreased consumer spending due to tariffs imposed by the U.S. government on imported goods, it is imperative for all business owners to remain cognizant of their customers’ needs and provide solace with whatever resources they have at their disposal.
As an example, consider how a small business owner in China has reacted after his country enacted retaliatory tariffs against U.S. imports. The businessman has temporarily halted production and closed his storefront; additionally, he has announced that he will no longer be accepting transactions via WeChat (an application used by eighty-five percent of Chinese consumers). In response to this disheartening news, one could only imagine how consumers’ sentiments may be fluctuating – both towards the store and towards their own purchasing decisions.