Business Highlights: Adidas may write off remaining Yeezy shoes; Wall Street extends winning streak
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International Monetary Fund warns Europe against prematurely declaring victory over inflation
FRANKFURT, Germany (AP) — The International Monetary Fund says the European Central Bank and other policymakers across Europe need to keep interest rates at current elevated levels until they’re sure inflation is under control despite sluggish growth. The Washington-based IMF says cost of underestimating inflation’s persistence could be painfully high and result in another painful round of rate hikes that could rob the economy of a large chunk of growth. The IMF said in its twice-yearly regional economic outlook for Europe that the European Central Bank and the other central banks that aren’t part of the 20-country eurozone are reaching the peak of their interest rate cycles. Inflation in the eurozone peaked at 10.6% in October 2022 and has steadily fallen to 2.9% in October.
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Stock market today: Wall Street inches up to extend its winning streak to 8 days as oil falls again
NEW YORK (AP) — Stocks drifted to another mixed close as Wall Street continues to recalibrate following its sharp recent swings. The S&P 500 edged up 0.1% Wednesday, its third straight day of quiet trading. The Dow slipped 40 points, and the Nasdaq composite rose 0.1%. Eli Lilly jumped after getting U.S. approval for a weight-loss drug, while Warner Brothers Discovery sank after reporting a worse loss for the last quarter than expected. The 10-year Treasury yield eased, which helped to calm financial markets broadly. Crude oil prices continued to slump further and are back to where they were in July.
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General Motors’ autonomous vehicle unit recalls cars for software update after dragging a pedestrian
DETROIT (AP) — GM’s Cruise autonomous vehicle unit is recalling all 950 of its cars to update its software after one dragged a pedestrian to the side of a San Francisco street last month. The company says in documents posted by U.S. safety regulators Wednesday that with the updated software, Cruise vehicles will remain stationary in similar cases. The Oct. 2 crash prompted Cruise to suspend driverless operations nationwide after California regulators found its cars were a safety hazard. The California Department of Motor Vehicles revoked the license for Cruise, which was transporting passengers without human drivers throughout San Francisco. In the crash, a human-driven vehicle hit a pedestrian, pushing them in front of a Cruise autonomous vehicle.
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FDA approves new version of diabetes drug Mounjaro for weight loss
Federal regulators say a new version of the popular diabetes treatment Mounjaro can be sold as a weight-loss drug. The Food and Drug Administration approved drug named Zepbound on Wednesday. The drug has been shown to help dieters lose 40 to 60 pounds in testing. It is the latest diabetes drug approved for weight loss, joining Novo Nordisk’s Wegovy, a high-dose version of Ozempic. Short supply and high costs have limited access to both medications. The FDA approved the new drug for people considered obese or for those who are overweight and have a weight-related health condition.
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Las Vegas hotel workers union reaches tentative deal with Caesars, but threat of strike still looms
LAS VEGAS (AP) — The Culinary Workers Union in Las Vegas has reached a tentative deal with casino giant Caesars Entertainment that could help avert a sweeping strike. The 5-year deal announced Wednesday by the union marks a major breakthrough after several months of unsuccessful negotiations. It comes just days before tens of thousands of hospitality workers could walk off the job and onto picket lines. Deals haven’t been reached with MGM Resorts International and Wynn Resorts. The tentative agreement with Caesars could provide the momentum needed for the union to win new contracts for all 35,000 union members. They have been working under expired contracts at properties owned or operated by the casino companies.
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Beyond Meat revenue falls as rising demand in Europe can’t overcome plummeting US sales
Beyond Meat’s revenue fell nearly 9% in the third quarter as higher sales of its plant-based meat in Europe failed to make up for plummeting demand in the U.S. Beyond Meat on Wednesday reported revenue of $75.3 million for the July-September period. That was far short of the $86.5 million Wall Street had anticipated. Beyond Meat cut its third-quarter and full-year revenue forecast last week, saying an anticipated rebound in plant-based meat sales during the quarter didn’t occur. The company said it would cut 65 non-production jobs — about 19% of its workforce — and conduct a broader review of its operations.
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Citigroup discriminated against Armenian Americans, federal regulator says; bank fined $25.9 million
NEW YORK (AP) — A federal regulator says Citigroup intentionally discriminated against Armenian Americans when they applied for credit cards. The Consumer Financial Protection Bureau said Wednesday that Citibank argued internally that Armenian Americans were more likely to commit fraud and referred to applicants as “bad guys” or affiliated with organized crime. The CFPB found that Citi employees were trained to avoid approving applications with common suffixes to Armenian last names or applications that originated in Glendale, California, where a large Armenian American population lives. The bank was fined $24.5 million and will pay $1.4 million to impacted consumers. Citibank apologized for what it called fraud detection protocols.
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Adidas says it may write off remaining unsold Yeezy shoes after breakup with Ye
FRANKFURT, Germany (AP) — Adidas says it may write off the remaining 300 million euros ($320 million) worth of Yeezy shoes left unsold after it cut ties with rapper Ye, formerly known as Kanye West. The company said Wednesday that it will decide in the coming weeks whether to sell them next year to generate more donations to groups fighting antisemitism. The shoe and sports clothing company, which cut ties with Ye in October 2022 after he made antisemitic remarks online, has sold 750 million euros worth of the shoes in two stages earlier this year through Adidas smartphone apps and its website. Part of the profits went to groups like the Anti-Defamation League.
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The S&P 500 rose 4.40 points, or 0.1%, to 4,382.78. The Dow Jones Industrial Average fell 40.33 points, or 0.1%, to 34,112.27. The Nasdaq composite rose 10.56 points, or 0.1%, to 13,650.41. The Russell 2000 index of smaller companies fell 19.08 points, or 1.1% to 1,714.07.