The daily business briefing: July 17, 2019
EU regulators investigate Amazon's use of marketplace vendors' data, IMF chief Christine Lagarde resigns, and more
1. EU antitrust regulators open Amazon data-use investigation
European Union antitrust regulators will investigate Amazon to determine whether its use of independent merchants' data violates rules safeguarding fair competition, the European Commission said Wednesday. Competition Commissioner Margrethe Vestager said the EU's formal investigation will examine how Amazon uses data from sellers on its marketplace. "Based on the commission's preliminary fact-finding, Amazon appears to use competitively sensitive information — about marketplace sellers, their products, and transactions on the marketplace," Vestager said. Amazon, the world's largest retailer, said in a statement that it would "cooperate fully with the European Commission and continue working hard to support businesses of all sizes and help them grow." Earlier on Wednesday, Amazon reached a deal with Germany's antitrust authority to revise its terms of service for third-party sellers.
2. IMF chief Christine Lagarde resigns after ECB nomination
International Monetary Fund chief Christine Lagarde announced Tuesday that she was resigning. The move came after Lagarde was named earlier in July as the next European Central Bank president. "With greater clarity now on the process for my nomination as ECB president and the time it will take, I have made this decision in the best interest of the fund, as it will expedite the selection process for my successor," Lagarde said. Her nomination to head the ECB still requires approval by the European Council, made up of 28 European heads of state. If confirmed, she will be the first woman to head the ECB since it was formed in 1998 to manage eurozone monetary policy.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
3. U.S. factory sector slumps for 2nd straight quarter
The U.S. manufacturing sector contracted for the second straight quarter in the three months ended in June, the Federal Reserve said Tuesday. Factory production fell by 1.2 percent in the second quarter after declining by 1.9 percent in the first. "The sector is in recession," said Ian Shepherdson, chief economist at Pantheon Macroeconomics. "That's not news, it's a consequence of China's cyclical slowdown and the trade war." Economists expect a rough third quarter, too, Shepherdson said, but by the fourth quarter "we think a trade deal will have been done and China's economy will be turning up."
4. Stock futures flat after Trump trade comments snap winning streak
U.S. stock index futures were flat early Wednesday, struggling to shake off skeptical comments on U.S.-China trade tensions by President Trump that dampened investor optimism on Tuesday. Futures for the Dow Jones Industrial Average, the S&P 500, and the Nasdaq were flat or up by less than 0.1 percent ahead of the next wave of corporate earnings reports. The three main U.S. indexes fell on Tuesday after Trump said the world's two largest economies had a "long way to go" in negotiations to end their costly trade war. The Dow closed 0.1 percent lower on Tuesday, snapping a four-day winning streak. The S&P 500 dropped by 0.3 percent and the Nasdaq fell 0.4 percent after closing at record highs a day earlier as this week's stream of corporate earnings reports got underway.
5. IKEA to close only U.S. factory
Swedish furniture company IKEA plans to close its only U.S. factory site in Danville, Virginia, in December, The Wall Street Journal reported Tuesday. IKEA will shift the operations to Europe, cutting about 300 U.S. jobs. IKEA opened the plant in 2008 and makes wood-based products like the KALLAX shelves and BESTA storage units at the 930,000-square-foot facility. "We made every effort to improve and maintain the competitiveness of this plant, but unfortunately the right cost conditions are not in place to continue production in Danville, Virginia, for the long-term," plant site manager Bert Eades told the Journal.
The Wall Street Journal Fox Business
Create an account with the same email registered to your subscription to unlock access.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Harold Maass is a contributing editor at The Week. He has been writing for The Week since the 2001 debut of the U.S. print edition and served as editor of TheWeek.com when it launched in 2008. Harold started his career as a newspaper reporter in South Florida and Haiti. He has previously worked for a variety of news outlets, including The Miami Herald, ABC News and Fox News, and for several years wrote a daily roundup of financial news for The Week and Yahoo Finance.
-
5 ways to help the environment while on vacation
The Week Recommends An afternoon of planting trees could be the best part of your trip
By Catherine Garcia, The Week US Published
-
Doctors are taking on dental duties in low-income areas
Under the radar Physicians are biting into the dentistry industry
By Devika Rao, The Week US Published
-
Instagram hopes that blurring nudity in messages will make teens safer
The Explainer The option will be turned on by default for users under 18
By Justin Klawans, The Week US Published
-
The daily business briefing: January 24, 2024
Business Briefing The S&P 500 sets a third straight record, Netflix adds more subscribers than expected, and more
By Harold Maass, The Week US Published
-
The daily business briefing: January 23, 2024
Business Briefing The Dow and S&P 500 set fresh records, Bitcoin falls as ETF enthusiasm fades, and more
By Harold Maass, The Week US Published
-
The daily business briefing: January 22, 2024
Business Briefing FAA recommends inspections of a second Boeing 737 model, Macy's rejects Arkhouse bid, and more
By Harold Maass, The Week US Published
-
Geopolitics and the economy in 2024
Talking Point The West is banking on a year of falling inflation. Don't rule out a shock
By The Week UK Published
-
The daily business briefing: January 19, 2024
Business Briefing Macy's to cut 2,350 jobs, Congress averts a government shutdown, and more
By Harold Maass, The Week US Published
-
The daily business briefing: January 18, 2024
Business Briefing Shell suspends shipments in the Red Sea, December retail sales beat expectations, and more
By Harold Maass, The Week US Published
-
The daily business briefing: January 17, 2024
Business Briefing Judge blocks JetBlue-Spirit merger plan, Goldman Sachs beats expectations with wealth-management boost, and more
By Harold Maass, The Week US Published
-
The daily business briefing: January 16, 2024
Business Briefing Boeing steps up inspections on 737 Max 9 jets, Zelenskyy fights for world leaders' attention at Davos, and more
By Harold Maass, The Week US Published