Business News at a Glance
Posted November 12, 2018 9:31 p.m. EST
Democrats May Upend Trump Reset of NAFTA
President Donald Trump’s promise to quickly pass a revamped trade agreement with Mexico and Canada has been upended by the midterm elections, with Democrats who will soon control the House vowing to withhold their support to extract greater protections for American workers. White House officials considered pushing the new United States-Mexico-Canada Agreement through the coming lame-duck session, but they did not want to risk a backlash from lawmakers in both parties. The House will consider the new agreement under the Constitution’s provision mandating that revenue bills originate in the lower chamber.
Facebook Did Not Police Use of Data
Facebook failed to closely monitor device-makers after granting them access to the personal data of hundreds of millions of people, according to a previously unreported disclosure to Congress last month. Facebook’s loose oversight of the partnerships was detected by the company’s government-approved privacy monitor in 2013. But it was never revealed to Facebook users, most of whom had not explicitly given the company permission to share their information. Details of those oversight practices were revealed in a letter Facebook sent last month to Sen. Ron Wyden, D-Ore., a privacy advocate and frequent critic of the social media giant.
Trump’s Tax Cut, 10 Months Later: Sugar Rush or Solid Bump?
The $1.5 trillion tax overhaul that President Donald Trump signed into law last year has already given the economy a jolt, at least temporarily. Economists predicted the new law would fuel consumer spending. But Republicans did not sell the law as a sugar-high stimulus. They sold it as a refashioning of the incentives in the economy — one that would unleash more investment, better efficiency and higher wages, along with enough growth to offset any revenue lost to the government. Ten months after the law took effect, that promised “supply-side” bump is harder to find than the sugar-high stimulus.
Europeans Look to Oysters to Ease Trade Tensions With U.S.
When Cecilia Malmstrom, the European trade commissioner, meets in Washington on Wednesday with her American counterpart, Robert E. Lighthizer, she will count it as a substantial victory if she can lower the barriers hindering one bit of trans-Atlantic commerce: oysters. The hope is that a satisfying result will keep President Donald Trump from imposing even more drastic penalties on European imports. The emphasis on mollusks illustrates a strategy that officials in Brussels hope will prevent Donald Trump from acting on a threat to impose steep tariffs on European cars, a potentially devastating blow to the European economy.
Stocks Dive After Apple Supplier Slashes Outlook
Stocks dropped on Monday, as investors dumped shares in large technology companies that hold sway over major market indexes. The Nasdaq composite index was down 2.8 percent. The Standard & Poor’s 500 fell 2 percent, and the Dow Jones industrial average dropped 2.3 percent. Apple’s shares declined 5 percent after one of its suppliers, Lumentum, slashed its fiscal outlook and said it had received a request from one of its largest customers to reduce shipments. The company did not identify Apple in its warning but Apple generates roughly one-third of the company’s revenue, according to a regulatory filing.
The Rental-Car Return: Smoothing a Big Bump
Any traveler who has rented a car at an airport has probably schlepped luggage onto a shuttle bus and sat through rides to and from the rental car site that can last 15 minutes or more. Then there’s the wait to pick up and return the car. Now, Avis is among a handful of car rental companies that are trying to take some time out of the return portion of the trip by offering a terminal drop-off service. The move to offer curbside drop offs comes as car rental companies are facing growing competition from ride-hailing apps like Uber and Lyft.
Pacific Island Nation to Host APEC Summit this week
Papua New Guinea is in the global spotlight as some of the world’s most powerful leaders gather this week for the annual Asia-Pacific Economic Cooperation summit meeting. The Pacific island nation of more than 8 million is the poorest of the 21 economies that make up the Asia-Pacific conference, known as APEC. The country is rich in minerals, timber, oil and gas but lacks the roads and ports to extract and export them. President Xi Jinping of China, who is expected to arrive two days early, is seeking to expand his country’s influence in the South Pacific.