Business Headlines
Electric vehicles and the $350K Celestiq: How Cadillac is trying to win back customers
Cadillac(NEW YORK) -- General Motors is "very serious about making Cadillac a premium brand again," Michael Simcoe -- the company's senior vice president of global design -- told ABC News in an interview about the "engineering and design tour de force" that is the new Celestiq.The interview below has been edited for clarity.Q: A huge trend in the industry now is customization, coachbuilding, bespoke vehicles. Why is Cadillac going in that direction and what has the response been like? And are you trying to appeal to customers who have Bentleys and Rolls-Royces?A: With the Celestiq, we're offering customers the ability to truly customize everything. The tyranny of choices is there and we try to help them. Customers have the ability ... Read More
Netflix stock soars after earnings boost from hit shows ‘Nobody Wants This’ and ‘Emily in Paris’
STEFANIA ROSINI/NETFLIX(NEW YORK) -- Shares of Netflix climbed about 9% in early trading on Friday after a strong earnings report propelled by hit shows like "Nobody Wants This" and "The Perfect Couple."The company added about 5 million subscribers over a three-month period ending in September, which marked a roughly 40% decline from the same period one year prior.Even so, the subscriber gains contributed to revenue totaling nearly $10 billion, in part due to the growth in popularity a subscription tier that includes advertisements, the earnings report on Thursday said. That sales figure marked 15% jump when compared with the same period one year prior.In all, Netflix boasts about 282 million subscribers worldwide, making it the most popular streaming service by a wide margin. By comparison, ... Read More
7-Eleven to close hundreds of US locations before end of 2024
Tim Boyle/Getty Images(NEW YORK) -- 7-Eleven will close more than 400 of its "underperforming stores" across the U.S. and Canada in an effort to reduce costs and bolster earnings before the end of the year.Seven & I Holdings, the Tokyo-based parent company of the convenience store chain, announced the news during an earnings call last week, saying 444 stores will be shuttered due to the cumulative factors of inflation, slower customer traffic, and declining cigarette sales."All of these have impacted our sales and merchandise gross profit," the CEO and President Joe DePinto said on the call.As a result of the "macroeconomic conditions and evolving industry trends," DePinto added that the company has revised its earning guidance.The company reported a 7.3% ... Read More
Boeing to cut approximately 17,000 jobs over the coming months
Dominika Zarzycka/NurPhoto via Getty Images(NEW YORK) -- Boeing will reduce the size of its total workforce by 10% over the coming months, CEO Kelly Ortberg said in a letter to employees on Friday.That amounts to around 17,000 jobs, based on the company's December 2023 total workforce numbers.Ortberg said due to the workforce reductions, Boeing would not proceed with the next cycle of furloughs.Ortberg also said the 777X program would be delayed until 2026, the 767 freighter program would end in 2027 and the company expects "substantial new losses" in Boeing Defense, Space & Security this quarter."Our business is in a difficult position, and it is hard to overstate the challenges we face together," said Ortberg. "Beyond navigating our current environment, ... Read More
How inflation largely came back to normal, according to experts
Andrew Harnik/Getty Images(NEW YORK) -- Inflation has loomed over the U.S. economy like a movie villain, haunting grocery store trips and gas runs. While costs remain much higher than they were a few years ago, those rapid price increases have mostly vanished.Inflation stands at its lowest level in more than three years, hovering right near the Federal Reserveās target rate of 2%, U.S. Bureau of Labor Statistics data this week showed.Not long ago, a once-in-a-century pandemic upended the economy, sending millions nationwide into lockdown and snarling the global supply chain. Meanwhile, trillions of dollars in government support helped Americans spend amid the calamity.A resulting imbalance between supply and demand sent prices soaring. The Russia-Ukraine war exacerbated the problem, causing gas ... Read More
Gas shortages caused by Hurricane Milton will take days to address, experts say
Joe Raedle/Getty Images(TAMPA, Fla.) -- Hurricane Milton left widespread gasoline shortages across Florida after it made landfall on Wednesday night and cut across the state. The damage exacerbated fuel outages that began before the storm arrived, as millions fled from its path.Nearly a quarter of the roughly 7,900 gas stations in the state have run dry, petroleum data firm GasBuddy reported Thursday. Oil Price Information Service, or OPIS, another company that tracks the sector, found as much as half of the state's gas stations lack fuel, Denton Cinquegrana, chief oil analyst at OPIS, told ABC News.Across Tampa Bay and St. Petersburg, almost two thirds of gas stations are without fuel, according to GasBuddy.Experts said they expect the gas shortages to ... Read More
How rising oil prices could impact the election, according to experts
Justin Sullivan/Getty Images(NEW YORK) -- An escalation of conflicts in the Middle East in recent weeks has triggered a sharp increase in oil prices, raising uncertainty about where costs will head in the final weeks before Election Day.Oil prices surged about 13% over an 11-day stretch ending on Monday. Prices fell markedly on Tuesday, however, as nearly a week passed without the onset of a widely anticipated Israeli counterattack on Iran.The rise of oil prices carries potential implications for the presidential election next month. A hike in the cost of crude oil typically raises the price of gasoline, which holds substantial sway over general consumer attitudes, experts told ABC News.For now, the recent increase in oil prices is not large ... Read More
Jobs report blows past expectations, showing hiring surge
Anna Moneymaker/Getty Images(NEW YORK) -- U.S. hiring surged in September, blowing past economist expectations and rebuking concern about weakness in the labor market. The fresh report marks one of the last major pieces of economic data before the presidential election.Employers hired 254,000 workers last month, far exceeding economist expectations of 150,000 jobs added, U.S. Bureau of Labor Statistics data showed. The unemployment rate ticked down to 4.1%.Weaker-than-expected jobs data in both July and August has stoked worry among some economists about the nation's economic outlook.Despite an overall slowdown this year, the job market has proven resilient. Hiring has continued at a solid pace; meanwhile, the unemployment rate has climbed but remains near a 50-year low."The labor market is still healthy, ... Read More
Trump and Harris both want a manufacturing boom. They have very different plans for doing it.
Nitat Termmee/Getty Images(NEW YORK) -- In the final weeks of the campaign, former President Donald Trump and Vice President Kamala Harris have sought to best each other on the all-important issue of the economy, which many voters rank as their top concern.Both candidates have made manufacturing a centerpiece of their plans, but their respective approaches feature stark differences.Harris aims to close corporate tax loopholes and throw government support behind the production of critical goods. By contrast, Trump wants to protect domestic manufacturers with tariffs on foreign products while cutting corporate taxes and easing regulations.Manufacturing accounts for about 10% of U.S. gross domestic product and an even smaller share of the nation's jobs. But the sector bears outsized importance since the ... Read More
Boo Buckets back at McDonald’s for Halloween Happy Meals
McDonald's(NEW YORK) -- It's a monster mash at McDonald's, with the new limited-edition Happy Meal Boo Buckets making their return to the Golden Arches.On Oct. 15, the iconic plastic buckets, which make for perfect trick-or-treating vessels, will return to participating McDonaldās restaurants nationwide while supplies last.The nostalgic pails have a fresh look this year, with new monster designs in four colors: white, orange, green and, for the first time, blue.McDonald's lovers also can give their Boo Bucket a custom look with themed stickers like ears, wings and more for a more monstrous vibe.Copyright Ā© 2024, ABC Audio. All rights reserved. ... Read More
FTC seeks to block Kate Spade, Michael Kors merger
The Michael Kors Store on Rodeo Drive on Feb. 23, 2017 in Beverly Hills, Calif. (Fg/bauer-griffin/GC Images via Getty Images, FILE)(NEW YORK) -- The Federal Trade Commission is asking a federal judge in New York to block the $8.5 billion merger of Tapestry, the company behind Coach, Kate Spade, and Capri, which controls Michael Kors.In April, the FTC sued to block the sale, arguing that these brands dominate what's known as the "accessible luxury" market and that if they combined, consumers would suffer by paying higher prices."This has to be the first time the focus of a federal court hearing turned to a $279 Kate Spade tote described as 'colorful, joyful, feminine, green and white seen on Emily in Paris," ... Read More
Rising oil prices after Iran strike could increase US gas prices, experts say
Getty Images - STOCK/Anton Petrus(NEW YORK) -- Oil prices climbed more than 3% on Tuesday in the immediate aftermath of an Iranian missile attack on Israel.The spike in prices is expected to push up the price of U.S. gasoline, experts told ABC News.Drivers could face a price increase of between 10 and 15 cents per gallon, experts estimated. The national average price of a gallon of gas currently stands at $3.20, AAA data showed.A further escalation of the conflict between Israel and Iran could send oil and gas prices significantly higher, said Ramanan Krishnamoorti, a professor of petroleum engineering at the University of Houston.āClearly this will have a huge impact on gas prices,ā Krishnamoorti told ABC News. āThereās no doubt ... Read More
Hurricane Helene spotlights rising prices for home and flood insurance
Downed trees on a home in the aftermath of Hurricane Helene, Sept.r 29, 2024, in Rutherfordton, N.C. (Sean Rayford/Getty Images)(NEW YORK) -- Hurricane Helene flooded properties and devastated buildings in recent days as it tore across a vast stretch from Florida to Tennessee.Over the coming days and weeks, households will start to rebuild -- and the costs will be enormous. Some homeowners will struggle to afford it.The devastation arrives after years of skyrocketing prices for home and flood insurance that have left some households without coverage and others choosing low-cost plans with weaker policies, experts told ABC News. The increase owes in part to a surge in costs for building materials as well as the risk of more frequent or ... Read More
Dockworkers hit picket lines in historic US port strike that could impact prices
Michael Nagle/Bloomberg via Getty Images(NEW YORK) -- Tens of thousands of U.S. dockworkers walked off the job early Tuesday morning, clogging dozens of ports along the East and Gulf coasts and potentially raising consumer prices ahead of the holiday season.The ports account for more than half of the nation's container imports, facilitating the transport of everything from toys to fresh fruit to nuclear reactors, JPMorgan senior equity analyst Brian Ossenbeck said in a report shared with ABC News.President Joe Biden released a statement on Tuesday emphasizing the strong profits enjoyed by shipping firms in recent years, as well as the sacrifices made by dockworkers during the COVID-19 pandemic. Biden called for a fair offer from the U.S. Maritime Alliance, or ... Read More
Fed cuts interest rate by half a point
WASHINGTON (AP) ā The Federal Reserve on Wednesday cut its benchmark interest rate by an unusually large half-point, a dramatic shift after more than two years of high rates that helped tame inflation but also made borrowing painfully expensive for American consumers. The rate cut, the Fedās first in more than four years, reflects its new focus on bolstering the job market, which has shown clear signs of slowing. Coming just weeks before the presidential election, the Fedās move also has the potential to scramble the economic landscape just as Americans prepare to vote. The central bankās action lowered its key rate to roughly 4.8%, down from a two-decade high of 5.3%, where it had stood for 14 months as ... Read MoreWynn Resorts paying $130M for letting illegal money reach gamblers at its Las Vegas Strip casino
LAS VEGAS -- Casino company Wynn Resorts Ltd. has agreed to pay $130 million to federal authorities and admit that it let unlicensed money transfer businesses around the world funnel funds to gamblers at its flagship Las Vegas Strip property. The publicly traded company said a non-prosecution settlement reached Friday represented a monetary figure identified by the U.S. Justice Department as āfunds involved in the transactions at issueā at the Wynn Las Vegas resort. In statements to the media and to the federal Securities and Exchange Commission, the company said the forfeiture wasnāt a fine and findings in the decade-long case didnāt amount to money laundering. U.S. Attorney Tara McGrath in San Diego said the settlement showed that casinos are ... Read More
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