Here are today's top business headlines you need to know.
AMAZON GO CLOSURES
Online shopping giant amazon continues its cost-cutting efforts with the permanent closure of six of its "go convenience stores." Starting April first--the online giant will close two stores in New York City and four in San Francisco. The stores, introduced in 2016, were designed to offer benefits for both customers and the company. Customers could shop without having to checkout or scan an item. and Amazon didn't need to hire staff. The closures follow Amazon's announcement that it's pausing construction on its second headquarters in northern Virginia.
VERIZON PRICE HIKE
Verizon is raising the prices on some of its older cell phone plans as part of a broader effort to get more of its customer base on 5G plans. Customers who decide to stay on one of Verizon's older unlimited plans will be charged an additional $2 a month. That change will take effect on April 10th. The move comes as Verizon looks to grow its consumer unit.
US CREDIT RATING
A leading financial company said America's credit rating could get downgraded. Fitch ratings said the political back and forth on whether to raise the debt ceiling or to default could lead to a downgrade. The U.S. currently has perfect credit, but Fitch explained that rating is not based on the country's finances but rather the U.S. dollar's reserve currency status and the treatment of U.S. Treasuries as risk-free assets for global investors. Fitch's global head of sovereign ratings said the ongoing debate over raising the debt ceiling is "chipping away at those two things."
DOJ SPIRIT AIRLINES LAWSUIT
The Justice Department is expected to file suit to block Jetblue's pending $3.8 billion takeover of Spirit Airlines. The agency argues the deal would eliminate a critical low-cost carrier and raise prices in an already heavily-consolidated industry. The lawsuit is the latest anti-monopoly move by the Biden administration, which has also shown increasing interest in policing air travel. The lawsuit's likely timing was first reported by Bloomberg News.
MERCK'S NEW CARDIO DRUG
Merck said its experimental cardio therapy helped increase exercise capacity in patients with a deadly disease that causes high pressure in blood vessels of the heart and lungs. Meanwhile, a second experimental heart drug helped reduce levels of low-density lipo-protein cholesterol by 41 percent. Merck has been beefing up its portfolio of cardiovascular drugs as part of its strategy to counter a possible hit to sales to its best-selling drug Keytruda.
Wealthfront’s CFO Alan Iberman talks the $2.05B IPO and the major moment for robo banking as the company bets on AI, automation, and “self-driving money."
A rare magnum of Dom Pérignon Vintage 1961 champagne that was specially produced for the 1981 wedding of Prince Charles and Lady Diana has failed to sell during an auction. Danish auction house Bruun Rasmussen handled the bidding Thursday. The auction's house website lists the bottle as not sold. It was expected to fetch up to around $93,000. It is one of 12 bottles made to celebrate the royal wedding. Little was revealed about the seller. The auction house says the bids did not receive the desired minimum price.
The New York Times and President Donald Trump are fighting again. The news outlet said Wednesday it won't be deterred by Trump's “false and inflammatory language” from writing about the 79-year-old president's health. The Times has done a handful of stories on that topic recently, including an opinion column that said Trump is “starting to give President Joe Biden vibes.” In a Truth Social post, Trump said it might be treasonous for outlets like the Times to do “FAKE” reports about his health and "we should do something about it.” The Republican president already has a pending lawsuit against the newspaper for its past reports on his finances.
OpenAI has appointed Slack CEO Denise Dresser as its first chief of revenue. Dresser will oversee global revenue strategy and help businesses integrate AI into daily operations. OpenAI CEO Sam Altman recently emphasized improving ChatGPT, which now has over 800 million weekly users. Despite its success, OpenAI faces competition from companies like Google and concerns about profitability. The company earns money from premium ChatGPT subscriptions but hasn't ventured into advertising. Altman had recently announced delays in developing new products like AI agents and a personal assistant.
President Donald Trump says he will allow Nvidia to sell its H200 computer chip used in the development of artificial intelligence to “approved customers” in China. Trump said Monday on his social media site that he had informed China’s leader Xi Jinping and “President Xi responded positively!” There had been concerns about allowing advanced computer chips into China as it could help them to compete against the U.S. in building out AI capabilities. But there has also been a desire to develop the AI ecosystem with American companies such as chipmaker Nvidia.
