Big Business This Week is a guided tour through the biggest market stories of the week, from winning stocks to brutal dips to the facts and forecasts generating buzz on Wall Street.
BINANCE BITCOIN FALLOUT
Binance, the world's largest crypto exchange, agreed to a nearly $4 billion settlement over violations of the Bank Secrecy Act and apparent sanctions programs violations. On top of that, founder Changpeng Zhao stepped down as CEO after he pleaded guilty to failing to prevent money laundering. The fallout was immediate for Bitcoin, which fell 5 percent on Tuesday. It clawed back the losses by the end of the week, ending the week up nearly 1 percent. Bitcoin is up nearly 128 percent from where it was a year ago.
BIG EGG SCRAMBLED
A jury found this week that some of the biggest U.S. egg producers were engaged in price-fixing that drove up costs for years. While the price of eggs has made headlines since the pandemic, the complaint was actually filed by manufacturers back in 2011 and the jury found the price-fixing was happening from 2004-2008. Companies like Kraft Foods Global and The Kellogg Company had accused the egg companies of limiting supply in order to drive prices up. Damages will be determined next week. While several of the named organizations are not publicly traded, Cal-Maine Foods' stock dropped on the news, ending the week down 4 percent.
BEST BUY
Even though Black Friday sales have been going on for weeks, the holiday shopping season began in earnest on Friday. Shoppers often head to Best Buy to purchase popular electronics for their loved ones, but this year the retailer doesn't expect a banner season. During its earnings call on Monday, it announced shoppers are pulling back, a trend seen in a number of retailers. The stock dropped off on the news, but came back strong, ending the week up 3 percent.
WHAT'S NEXT FOR THE BIG 3
While the deals struck for autoworkers after a six-week strike will change the lives of thousands of workers, we're beginning to see the repercussions for the companies. GM announced that for the first time in four years it will not advertise during the Super Bowl as it tries to rein in fixed expenses. This week Ford announced it will scale back plans for an electric battery vehicle plant in Michigan due to a change in market conditions. Building was put on hold during the strike.
Chipmaker Nvidia is poised to release a quarterly report that could provide a better sense of whether the stock market has been riding an overhyped artificial intelligence bubble or is being propelled by a technological boom that’s still gathering momentum.
Cracker Barrel said late Tuesday it’s returning to its old logo after critics — including President Donald Trump — protested the company’s plan to modernize.
Low-value imports are losing their duty-free status in the U.S. this week as part of President Donald Trump's agenda for making the nation less dependent on foreign goods. A widely used customs exemption for international shipments worth $800 or less is set to end starting on Friday. Trump already ended the “de minimis” rule for inexpensive items sent from China and Hong Kong, but having to pay import taxes on small parcels from everywhere else likely will be a big change for some small businesses and online shoppers. Purchases that previously entered the U.S. without needing to clear customs will be subject to the origin country’s tariff rate, which can range from 10% to 50%.
Southwest Airlines will soon require plus-size travelers to pay for an extra seat in advance if they can't fit within the armrests of one seat. This change is part of several updates the airline is making. The new rule starts on Jan. 27, the same day Southwest begins assigning seats. Currently, plus-size passengers can pay for an extra seat in advance and later get a refund, or request a free extra seat at the airport. Under the new policy, refunds are still possible but not guaranteed. Southwest said in a statement it is updating policies to prepare for assigned seating next year.
Cracker Barrel is sticking with its new logo. For now. But the chain is also apologizing to fans who were angered when the change was announced last week.
Elon Musk on Monday targeted Apple and OpenAI in an antitrust lawsuit alleging that the iPhone maker and the ChatGPT maker are teaming up to thwart competition in artificial intelligence.
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