Business Highlights: UAW nears deal with Ford to end strike; Bankman-Fried to testify in fraud trial
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UAW appears to be moving toward a potential deal with Ford that could end strike
DETROIT (AP) — The United Auto Workers union appears to be edging closer to a tentative contract agreement with Ford that would be critical to ending the union’s 6-week-old strikes against the three major Detroit automakers. That’s according to two people with knowledge of the talks. The people said Wednesday that the union has made a counter-offer to Ford that proposes a 25% general wage increase over the life of a new four-year contract and that negotiations on Tuesday extended well into Wednesday morning. Previously Ford, Stellantis and General Motors had all offered 23% pay increases.
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Sam Bankman-Fried plans to testify at his New York fraud trial, his lawyer says
NEW YORK (AP) — A lawyer for Sam Bankman-Fried says the FTX founder plans to testify at his fraud trial. Attorney Mark Cohen said during a conference call between lawyers and the Manhattan federal court judge on Wednesday that Bankman-Fried will take the stand after three other defense witnesses testify beginning Thursday. Prosecutors have relied on former executives at Bankman-Fried’s companies to build a case that Bankman-Fried conspired with others to steal billions of dollars from his customers and investors over several years. The 31-year-old California man has pleaded not guilty to all charges. He was extradited last December from the Bahamas to face charges.
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Bitcoin prices have doubled this year and potentially new ways to invest may drive prices higher
NEW YORK (AP) — Bitcoin is having another moment. The world’s largest cryptocurrency soared to almost $35,000 this week, marking its highest value in nearly 18 months. The recent rally for volatile bitcoin coincides with the prospect of exchange-traded funds being launched based on spot bitcoin. Industry advocates say that could make entering the cryptoverse easier, while lowering some of the well-documented risks associated with investing in cryptocurrencies. A green light from federal regulators hasn’t arrived yet, but recent wins for some crypto fund managers with their applications for bitcoin ETFs have improved odds that approval could be down the road, and perhaps in the coming months. Still, much remains uncertain.
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Boeing loses $1.6 billion on fewer deliveries of airliners and higher costs for Air Force One
Boeing is reporting a loss of $1.64 billion in the third quarter. The company said Wednesday it delivered fewer planes than a year ago, especially its best-seller, the 737 Max. Boeing is lowering its forecast of 737 production for this year. And Boeing is reporting another loss on its contract with the Air Force to build two new presidential jets. Those are 747s that are modified to become Air Force One planes.
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Stock market today: Another sharp drop dumps Wall Street back to where it was in May
NEW YORK (AP) — Wall Street fell sharply after rising bond yields tightened their chokehold and some of the most influential companies turned in mixed profit reports. The S&P 500 tumbled 1.4% Wednesday for its eighth loss in the last 10 days. It’s back to where it was in May. Some of the heaviest losses hit Big Tech stocks, which dragged the Nasdaq composite to its second-worst drop of the year, at 2.4%. The Dow Jones Industrial Average fell 105 points. The yield on the 10-year Treasury jumped, while crude oil prices rallied to recover some of their losses from earlier in the week.
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Bud Light to return as the UFC’s official beer next year as it recovers from a conservative backlash
NEW YORK (AP) — Bud Light is set to return as the official beer of the UFC in the U.S. next year as the brand tries to recover from a conservative backlash to a promotion with a transgender influencer. The companies announced that under a new multiyear marketing deal between the promoter of mixed martial arts fights and Bud Light maker Anheuser-Busch, the brewer will become the UFC’s “Official Beer Partner” in the U.S. starting Jan. 1. Financial terms of the deal were not disclosed. News of the partnership comes during a rocky year for Anheuser-Busch. The brewer has seen a monthslong sales decline for Bud Light after conservative critics vowed to boycott the brand for sending a commemorative can to transgender influencer Dylan Mulvaney earlier this year.
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Derailment costs grow for Norfolk Southern but railroad’s trains moving more smoothly
OMAHA, Neb. (AP) — Norfolk Southern’s costs related to the East Palestine derailment have grown to reach $966 million. But the railroad’s service is improving and its insurance companies have started to pay their share of the cost of the crash in eastern Ohio early this year. The Atlanta-based railroad on Wednesday reported a third-quarter profit of $478 million, half of last year’s $958 million. But without the derailment costs its adjusted earnings were just ahead of Wall Street expectations. The average speed of Norfolk Southern’s trains increased to 20.5 mph during the quarter as service improved.
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Environmental groups reject deep-sea mining as key UN meeting looms
SAN JUAN, Puerto Rico (AP) — Environmental groups are urging a moratorium on deep-sea mining ahead of an international meeting in Jamaica where an obscure U.N. body will debate the issue amid fears it could soon authorize the world’s first license to harvest minerals from the ocean floor. More than 20 countries have called for a moratorium or a precautionary pause. Monaco this month becoming the latest to oppose deep-sea mining ahead of Monday’s U.N. International Seabed Authority’s council meeting in Jamaica that will last almost two weeks. Companies including Samsung and BMW also have pledged to avoid using minerals mined from the deep sea.
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The S&P 500 fell 60.91 points, or 1.4%, to 4,186.77. The Dow Jones Industrial Average fell 105.45 points, or 0.3%, to 33,035.93. The Nasdaq composite fell 318.65 points, or 2.4%, to 12,821.22. The Russell 2000 index of smaller companies fell 28.07 points, or 1.7% to 1,651.43.