Business Headlines
Price of bitcoin falls more than 10%
Namthip Muanthongthae/Getty Images(NEW YORK) -- The price of bitcoin has tumbled about 12% from a record high reached earlier this week.After topping $108,000 for the first time on Tuesday, the world’s largest cryptocurrency dropped to a price below $93,000 in early trading on Friday. Bitcoin soon recovered some of those losses, settling around $95,000 at 9:30 a.m. ET.The selloff rippled through the wider cryptocurrency market. Ether, the second-largest cryptocurrency, ticked down about 1%. Lesser-known dogecoin fell 4% and crypto-trading exchange Coinbase fell nearly 2%.The slide for bitcoin has largely come after the Federal Reserve announced late Wednesday that it expects fewer interest rate cuts next year.Lower interest rates typically stimulate economic activity, drive up corporate profits and lift the value of forward-looking assets like stocks and ... Read More
Teamsters say ‘momentum continues’ as Christmastime strike against Amazon enters 2nd day
WABC(NEW YORK) -- As the Teamsters' cross-country Christmastime strike against Amazon entered its second day on Friday, the union said that "momentum continues to mount" as workers seek "fair treatment" from the online retailer."The Amazon Teamsters movement grows bigger and stronger every day and will not be stopped," the International Brotherhood of Teamsters said in a statement posted on social media late Thursday.Workers affiliated with the Teamsters began striking at Amazon facilities across the country early Thursday. The union said thousands of workers were walking off their jobs at facilities in New York City, Atlanta, Southern California, San Francisco and Illinois, but did not provide specific numbers.Teamsters President Sean M. O’Brien is expected to join a picket line in California's ... Read More
Teamsters president to rally with workers as Amazon strike set to go into 2nd day
Amazon workers in New York striking Thursday morning. Image via WABC.(NEW YORK) -- Workers affiliated with the Teamsters began striking at Amazon facilities across the country Thursday morning -- in what the union calls the largest strike in history against the online shopping giant less than a week before Christmas.In a news release Thursday evening, the union said "thousands of Teamsters" were taking part in the strikes at facilities in New York City, Atlanta, Southern California, San Francisco and Illinois, but did not provide specific numbers. Later, the union said Teamsters President Sean O'Brien would join striking members at a facility in the City of Industry, California, on Friday as the strike was set to enter its second day.In addition, ... Read More
Fed cuts interest rates, delivering relief for borrowers at last meeting before Trump takes office
Chris Unger/Zuffa LLC via Getty Images(WASHINGTON) -- The Federal Reserve cut interest rates by a quarter of a percentage point on Wednesday, delivering relief for borrowers at the central bank's last meeting before President-elect Donald Trump takes office next month.The central bank predicted fewer rate cuts next year than it had previously indicated, however, suggesting concern that inflation may prove more difficult to bring under control than policymakers thought just a few months ago.The major stock indexes inched downward in trading after the announcement in response to the forecast of fewer rate cuts.Speaking at a press conference in Washington D.C. on Wednesday, Fed Chair Jerome Powell said the central bank may proceed at a slower pace with future rate cuts, ... Read More
Bitcoin soars on hopes of bitcoin strategic reserve. Here’s how it would work.
Chesnot/Getty Images(NEW YORK) -- The price of bitcoin topped $107,000 for the first time this week, climbing to a fresh high days after President-elect Donald Trump reaffirmed support for a U.S. bitcoin strategic reserve akin to its strategic oil reserve.The world’s largest cryptocurrency has seen its price climb more than 50% since the election of Trump, who voiced support for bitcoin on the campaign trail.Proponents of a potential government stockpile of bitcoin say it could diversify the nation’s financial holdings and prevent other countries from dominating the ascendant digital currency market. Critics warn, however, that the highly volatile asset lacks the type of financial or national security import that would warrant a strategic reserve.Here’s what to know about a U.S. ... Read More
TikTok denied emergency request to stop ban from taking effect
Asanka Ratnayake/Getty Images(NEW YORK) -- The federal appeals court that last week rejected TikTok's attempt to overthrow its pending ban denied the company's request Friday that sought to pause the ruling and the Jan. 19 deadline for a sale.The company, which has been forced by a federal law to sell to a new owner or be banned in the U.S., requested the emergency pause earlier in the week arguing it would afford the Supreme Court time to determine whether it should review the law.However, the D.C. Circuit judges said that Congress made a "deliberate choice" to set a 270-day time frame for the sale-or-ban, "subject to one (and only one) extension.""The petitioners have not identified any case in which a ... Read More
Fed expected to cut interest rates despite rising inflation. Here’s why
Stefani Reynolds/Bloomberg via Getty Images(WASHINGTON) -- A fresh inflation reading this week flashed a warning: Price increases are rising again, just when the Federal Reserve had appeared close to declaring "mission accomplished" in its yearslong fight to lower them.In theory, the trend would prompt the Fed to raise rates, or at least hold them steady, when central bankers meet next week. High interest rates, after all, are the main tool the Fed has used to ratchet inflation down from its pandemic-era heights.Instead, investors peg the chances of a rate cut next week at an overwhelming 98%, according to the CME FedWatch Tool, a measure of market sentiment.The reason is clear, experts told ABC News: Interest rates will remain historically high even after a small cut. The ... Read More
UnitedHealthcare CEO killing sparks hostility by some toward chief executives
DigitalVision/Getty Images(NEW YORK) -- Multiple "Wanted" signs featuring corporate executives posted in Manhattan this week included a grave warning, according to a New York Police Department bulletin. “Brian Thompson was denied his claim to life. Who will be denied next?” the signs said.The threats of violence against CEOs followed an outpouring of criticism on social media directed at corporate leaders in the wake of the killing of UnitedHealthcare CEO Brian Thompson. Many online also praised Luigi Mangione, the murder suspect, who assailed large corporations in writings found by police.The wave of sympathy toward Mangione and hostility toward CEOs sparked debate about how a set of Americans had come to cheer, or at least condone, wishes of violence hurled toward corporate ... Read More
Albertsons sues Kroger, backs out of $25B merger after courts block the deal
Mark Felix/Bloomberg via Getty Images(WASHINGTON) -- Albertsons has filed a lawsuit against its rival Kroger following a failed multibillion dollar deal that would have marked the biggest supermarket merger in U.S. history.Two federal judges in Oregon and Washington blocked the merger Tuesday, siding with the Federal Trade Commission, which has opposed the plan, arguing it would eliminate competition and raise prices for American shoppers.Albertsons announced Wednesday that it had terminated the merger agreement following the failed bid."Given the recent federal and state court decisions to block our proposed merger with Kroger, we have made the difficult decision to terminate the merger agreement," Albertsons CEO Vivek Sankaran said in a statement. "We are deeply disappointed in the courts' decisions."Less than 24 hours after the ... Read More
Inflation increased in November, complicating Fed’s next rate decision
Tang Ming Tung via Getty Images(WASHINGTON) -- Consumer prices rose 2.7% in November compared to a year ago, ticking upward from the previous month and potentially giving pause to the Federal Reserve as it weighs an interest rate cut expected next week. The reading matched economists' expectations.The fresh data marked two consecutive months of rising inflation, extending a bout of accelerated price increases that has reversed some of the progress made in lowering inflation earlier in the year.The inflation gauge makes up the last piece of significant economic data before the Fed announces its next interest rate decision on Dec. 18. A finding of accelerated price hikes may give the Fed pause as it weighs interest rate cuts.The inflation gauge ... Read More
Judge rejects sale of Infowars to The Onion, Alex Jones says
Drew Angerer/Getty Images(NEW YORK) -- A bankruptcy judge rejected the sale of Infowars to The Onion, conspiracy theorist Alex Jones said during his podcast on Tuesday."We are deeply disappointed in today's decision but The Onion will continue to seek a resolution that helps the Sandy Hook families receive a positive outcome for the horror they endured," The Onion CEO Ben Collins said on social media."We will also continue to seek a path towards purchasing InfoWars in the coming weeks," Collins' statement continued.Jones accused The Onion and Sandy Hook Elementary School families of "collusive bidding" and asked a bankruptcy court judge to halt the sale of his Infowars platform in November.Jones, who defamed the Sandy Hook families by calling the 2012 ... Read More
TikTok requests emergency motion to stop ban from taking effect
Jaque Silva/NurPhoto via Getty Images(WASHINGTON) -- TikTok on Monday requested the emergency pause of a law set to ban the popular social media app next month.A temporary lifting of the measure would afford the Supreme Court time to determine whether it should review the law, the company said in a court filing.The filling arrives days after TikTok -- which boasts more than 170 million U.S. users -- lost a challenge against the measure in a federal appeals court.A pause of the law would afford the Supreme Court time to determine whether it should “review this exceptionally important case,” TikTok said in the court filing on Monday.The law would impose a nationwide ban of TikTok on Jan. 19, 2025, unless the company finds a different owner.The ... Read More
Can Trump’s proposed tariffs revive the steel industry?
Allison Robbert-Pool/Getty Images(NEW YORK) -- President-elect Donald Trump this week vowed to block the purchase of U.S. Steel by Japanese steelmaker Nippon Steel Corp., promising to bolster the domestic steel industry with tariffs.“I am totally against the once great and powerful U.S. Steel being bought by a foreign company, Trump said in a post on Truth Social, pledging to make U.S. Steel “Strong and Great Again, and it will happen FAST!”Trump has proposed a tax as high as 20% on every product imported from all U.S. trading partners, as well as a tax of between 60% and 100% on all goods from China, the world’s leading steel producer.Those policies could modestly improve the outlook for domestic steelmakers by hiking prices, ... Read More
Labor Department investigating HelloFresh for allegedly employing migrant children
Jose Sarmento Matos/Getty Images(WASHINGTON) -- The U.S. Department of Labor is investigating HelloFresh over allegations that the popular meal kit service employed migrant children at a cooking and packaging facility in Illinois as recently as this summer, ABC News has learned.At least six teenagers, at least some of whom migrated from Guatemala, were found working night shifts at the facility, said Cristobal Cavazos, the executive director for Immigrant Solidarity, an immigrant rights advocacy group that helped report the matter to federal regulators."They're minors working dangerous jobs," Cavazos told ABC News.The Labor Department is also investigating whether Midway Staffing, an agency that hires employees to work at the HelloFresh facility, also violated federal child labor rules, according to documents obtained by ABC News.The ... Read More
Federal appeals court rejects TikTok’s bid to overturn US ban
Bing Guan/Bloomberg via Getty Images(WASHINGTON) -- A federal appeals court on Friday rejected TikTok's bid to overturn a law banning the platform unless the company finds a new owner. The defeat moves the app closer to a U.S. ban, which is set to take effect on Jan. 19, 2025.TikTok had challenged the law on First Amendment grounds, arguing that a potential ban would deny American users access to a popular venue for public expression. Attorneys for the company also disputed claims that the app poses a national security risk.A three-judge panel of the U.S. Court of Appeals for the D.C. Circuit ruled against the app, which boasts more than 170 million U.S. users.The China-based app has faced growing scrutiny from ... Read More
Fed cuts interest rate by half a point
WASHINGTON (AP) — 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 Fed’s 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 Fed’s move also has the potential to scramble the economic landscape just as Americans prepare to vote. The central bank’s 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 “funds involved in the transactions at issue†at the Wynn Las Vegas resort. In statements to the media and to the federal Securities and Exchange Commission, the company said the forfeiture wasn’t a fine and findings in the decade-long case didn’t 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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