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MORNING BUSINESS REPORT: TikTok appeal denied, Amazon strike, rate cut expected
Introduction
Good morning! Here’s your morning business report highlighting some significant developments in the corporate world.
A federal appeals court has denied TikTok's request to delay a potential ban in the United States. This ruling, issued last Friday, means that TikTok’s efforts to have more time to contest the ban may be running out. The court's three-judge panel was unconvinced by TikTok's arguments and highlighted that the app faces a US ban if it is not sold by January 19th. TikTok's lawyers were hoping to pause the enforcement of this ban to seek a hearing with the Supreme Court and the incoming presidential Administration.
In other news, the Teamsters union continues to make progress at Amazon, with members at two warehouses in the New York City area voting unanimously to authorize a strike. While this does not mean an immediate strike, it gives the union the power to act quickly if needed. The Teamsters have set a mid-December deadline for negotiations concerning a new contract for workers in Staten Island and Queens, but Amazon has reportedly been unresponsive to their outreach.
Furthermore, the Federal Reserve is expected to announce a cut in interest rates this week. This move may lead to a reduction in borrowing costs for consumers, potentially impacting auto loans and credit card rates. However, experts suggest that this could be the last rate cut for some time, given the persistence of inflation.
The market has been feeling the strain, with the Dow Jones Industrial Average experiencing a decline for seven consecutive sessions as of Friday, marking its longest losing streak since 2020. As the market braces for the Federal Reserve's meeting this week, there are slight positive signals this morning.
Live from the New York Stock Exchange, this is Jane King, bringing you the latest business news.
Keyword
- TikTok
- federal appeals court
- ban
- Amazon
- Teamsters union
- strike authorization
- interest rate cut
- Federal Reserve
- inflation
- market decline
FAQ
Q: What was the outcome of TikTok's appeal regarding the potential ban in the US?
A: A federal appeals court denied TikTok's request for a delay, meaning the app could face a ban if not sold by January 19th.
Q: What is the status of Amazon workers in New York City?
A: Workers at two Amazon warehouses in New York City have unanimously voted to authorize a strike, pending negotiations on a new contract.
Q: What can consumers expect from the Federal Reserve's upcoming meeting?
A: The Federal Reserve is likely to cut interest rates, which may reduce borrowing costs for consumers, particularly for auto loans and credit cards.
Q: How has the stock market been performing recently?
A: The Dow Jones Industrial Average has experienced a seven-day decline, its longest losing streak since 2020, as markets await the Federal Reserve's decisions.