Business and Finance News - 12.23.24

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The CFPB sued Zelle and three major U.S. banks, alleging failure to address fraud and reimburse victims, with over $870 million in customer losses since 2017. Zelle denies the claims, arguing the lawsuit misrepresents fraud figures and could harm consumers and small banks. (CNBC)

Key Insight → The CFPB’s lawsuit against Zelle and major banks highlights the growing scrutiny of peer-to-peer payment platforms amid rising consumer fraud, signaling potential regulatory shifts in the financial sector. If successful, the suit could force banks to strengthen fraud protections and reimbursement policies, reshaping how digital payment networks handle consumer complaints. This case reflects broader market concerns over financial security and transparency, potentially influencing fintech competition and pushing traditional banks to adopt stricter safeguards.

Google proposed limiting exclusive contracts and bundling of its apps to address DOJ antitrust concerns but avoids selling off Chrome, Android, or Google Play. The company will appeal the ruling while preparing revised solutions ahead of a trial in April. (The Verge)

Key Insight → Google’s proposed remedies to avoid breaking up its services aim to address antitrust concerns by limiting exclusive contracts and payments for search placement, but without divesting major assets like Chrome or Android. This is significant as it reflects how dominant tech companies navigate regulatory pressure while maintaining market control. The outcome could reshape competition in digital services, potentially opening space for smaller players and altering the balance of power in search and mobile ecosystems.

Party City will close all U.S. stores after struggling with inflation and declining sales, despite exiting bankruptcy in 2023. Store closures are expected by the end of February, with liquidation sales currently underway. (Axios)

Key Insight → Party City’s closure after 40 years highlights the continuing struggles of traditional retail, exacerbated by inflation and shifting consumer habits. This reflects broader market challenges for specialty retailers facing competition from e-commerce and discount chains. The shutdown signals potential shifts in the party supply industry, opening opportunities for new entrants and online platforms.

Volkswagen reached a deal with the IG Metall union to avoid German plant closures by cutting 35,000 jobs through early retirement by 2030, saving €15bn. The agreement averts immediate layoffs and reduces apprenticeships while shifting some production abroad to address declining demand and rising competition. (BBC)

Key Insight → Volkswagen's agreement to cut 35,000 jobs without plant closures highlights the balancing act between cost-cutting and preserving domestic industry. This deal reflects growing economic pressures on legacy automakers, driven by competition from Chinese brands and declining demand in key markets. The outcome signals broader shifts in the global auto industry, emphasizing restructuring and international production to remain competitive.

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Here’s how the major indexes did yesterday:

• Dow Jones Industrial Average: 42,840.26 +498.02 (+1.18%)

• S&P 500: 5,930.85 +63.77 (+1.09%)

• Nasdaq Composite: 19,572.60 +199.83 (+1.03%)

• Russell 2000: 2,242.37 +20.87 (+0.94%)

Here’s how The Magnificent Seven did yesterday:

• Apple (AAPL) [3.847T]: 254.49 +4.70 (+1.88%)

• Nvidia (NVDA) [3.299T]: 134.70 +4.02 (+3.08%)

• Microsoft (MSFT) [3.246T]: 436.60 -0.43 (-0.10%)

• Amazon (AMZN) [2.365T]: 224.92 +1.63 (+0.73%)

• Alphabet (GOOGL) [2.343T]: 191.41 +2.90 (+1.54%)

• Meta Platforms (META) [1.477T]: 585.25 -10.32 (-1.73%)

• Tesla (TSLA) [1.352T]: ​​421.06 -15.11 (-3.46%)

Here’s how Bitcoin and Ethereum did yesterday:

• Bitcoin (BTC): $95,812.17 (9:00PM PST on 12/22/24)

• Ethereum (ETH): $3,324.38 (9:00PM PST on 12/22/24)