Business News at a Glance

As Debt Rises, Government Will Soon Spend More on Interest Than on Military

The federal government could soon pay more in interest on its debt than it spends on the military, Medicaid or children’s programs. With less money coming in and more going toward interest, political leaders will find it difficult to address needs like fixing crumbling roads and bridges or to make emergency moves like pulling the economy out of recessions. Within a decade, more than $900 billion in interest payments will be due annually, easily outpacing spending on other programs. Already the fastest-growing major government expense, the cost of interest could hit $390 billion next year, nearly 50 percent more than in 2017.

Trump Trade Negotiator Warns That Canada Is Running Out of Time

The Trump administration’s top trade official warned Tuesday that Canada was running out of time to join the United States and Mexico in a new North American Free Trade Agreement, lamenting that the Canadians have proved unwilling to make “essential” concessions in significant areas of disagreement. Robert Lighthizer, the U.S. trade representative, made the rare public comments about the state of the negotiations at an event in New York and insisted that the Trump administration will move forward with a bilateral trade pact with Mexico by Sept. 30 if an agreement cannot be reached with Canada.

In Lieu of Higher Wages, Companies Turn to Perks

One of the most perplexing questions about the nation’s economic recovery is why a tight labor market has not translated into faster wage growth. Part of the answer appears to be that U.S. workers are receiving a growing share of compensation in the form of benefits rather than wages. The average worker received 32 percent of total compensation in benefits, including bonuses, paid leave and company contributions to insurance and retirement plans in the second quarter of 2018. That was up from 27 percent in 2000, federal data show. The rising cost of health insurance accounts for only about one-third of the trend.

Michael Kors to Buy Versace for $2.1 Billion in Bid to Expand

Michael Kors said Tuesday that it would buy Versace, the Italian fashion house, for $2.1 billion in a bid to challenge Europe’s conglomerates at a time of rapid consolidation in the global luxury market. The deal, which would end the independence of one of the last prominent stand-alone fashion brands, is the biggest effort yet by Kors to build an empire. To reflect its growing collection of trophy brands, Kors said, the company will change its name to Capri Holdings Ltd. once the deal is completed. Kors described the purchase as a milestone in its expansion plans.

Offering Manicures With Your Hot Pot, China’s Haidilao Plans a Global Push

Hot pot, in which diners cook their own meat and vegetables in a boiling broth, is a favorite meal in China. And Haidilao is China’s most popular hot pot chain, mostly because of how employees go all out to greet, serve and entertain by offering free pedicures, free shoeshines and board games. Haidilao hopes people outside China will be as captivated. It is set to raise nearly $1 billion on Wednesday in an initial public offering in Hong Kong. It wants to use the money to expand, including beyond its overseas locations in California and New York as well as other countries.

Hold the Donuts, Says Newly Named Dunkin’

Dunkin’ Donuts is removing “donuts” from its name starting next year, making it the latest in a string of companies aiming to breathe fresh life into their brands with a name change. The company said Tuesday that it would retain its colors and font but start going by Dunkin’ in January. The shift is a nod to the chain’s beverage sales, which account for about 60 percent of its business. In explaining the change, the company said multiple times that it was “on a first-name basis” with consumers and that, despite its new moniker, its focus on doughnuts remained intact.