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.
President Donald Trump has fired one of two Democratic members of the U.S. Surface Transportation Board to break a 2-2 tie ahead of the board considering the largest railroad merger ever proposed.
Ford is recalling more than 355,000 of its pickup trucks across the U.S. because of an instrument panel display failure that’s resulted in critical information, like warning lights and vehicle speed, not showing up on the dashboard.
Nvidia reported a 56% increase in second-quarter revenue and a 59% rise in net income compared to a year ago.
The Rev. Al Sharpton is set to lead a protest march on Wall Street to urge corporate America to resist the Trump administration’s campaign to roll back diversity, equity and inclusion initiatives. The New York civil rights leader will join clergy, labor and community leaders Thursday in a demonstration through Manhattan’s Financial District that’s timed with the anniversary of the Civil Rights-era March on Washington in 1963. Sharpton called DEI the “civil rights fight of our generation." He and other Black leaders have called for boycotting American retailers that scaled backed policies and programs aimed at bolstering diversity and reducing discrimination in their ranks.
President Donald Trump's administration last month awarded a $1.2 billion contract to build and operate what's expected to become the nation’s largest immigration detention complex to a tiny Virginia firm with no experience running correction facilities.
Netflix CEO Ted Sarandos claims audiences don't want to watch Netflix movies in theaters, but that seems not to be the case recently.
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.
