Good morning and pleased Juneteenth weekend. Here’s what you could know in business and tech information for the week forward. — Charlotte Cowles
What’s Up? (June 13-19)
Not Messing Around
Let the trustbusting start! Lina Khan, who has lengthy criticized the market dominance of Amazon, Facebook, Google and different Silicon Valley behemoths, is now in cost of regulating them after she grew to become the youngest-ever chair of the Federal Trade Commission on Tuesday. The subsequent day, the Justice Department filed its first antitrust lawsuit since President Biden took office. The motion goals to dam the merger of two of the nation’s largest insurance coverage brokers, Aon and Willis Towers Watson, and argues that their combination would “eliminate substantial head-to-head competition and likely lead to higher prices and less innovation.”
At the conclusion of his first summit with President Vladimir V. Putin of Russia, President Biden declared, “I did what I came to do.” Namely, he advised Mr. Putin to chop out the cyberattacks that Russian crime organizations — and, in some circumstances, the Russian authorities — have been inflicting on American firms and companies with growing frequency. (Mr. Putin denied that Russia was behind the assaults, regardless of a lot proof to the opposite.) Mr. Biden drew a line in the sand by stating that infrastructure was “off limits” to hackers throughout peacetime, and the pair agreed to debate the matter additional. Progress?
And similar to that, the 17-year commerce dispute between the United States and the European Union over plane subsidies was resolved — no less than quickly. The two sides agreed to droop threats of punitive tariffs on one another, which the Trump administration had imposed over the previous a number of years. Instead, they may work collectively to counter China’s looming dominance in main industries. Britain rapidly adopted in Europe’s footsteps with an identical take care of the United States. In different information, the E.U. lifted its journey ban on American vacationers, though every member state retains the proper to determine by itself restrictions.
What’s Next? (June 20-26)
Higher Rates Ahoy
At the starting of the pandemic, the Federal Reserve slashed rates of interest to close zero and indicated they may keep that low for years. That timeline might be transferring up. Now, most Fed policymakers count on to make two curiosity rate will increase by the finish of 2023, a extra aggressive plan that nods to current inflation considerations. With costs rising on all the things from properties to automobiles to clothes (and even boats), central bankers appear to be rushing up their predictions for the financial system’s recovery and dealing to maintain development regular.
Daily Business Briefing
June 17, 2021, 1:52 p.m. ET
No More Angels
After a disastrous a number of years that resulted in the closing of a whole bunch of shops, a failed acquisition and the resignation of its scandal-plagued chief government, Victoria’s Secret is doing a Hail Mary: a significant rebrand. The once-ubiquitous lingerie company has dropped its earlier advertising and marketing technique of interesting to male fantasies of “sexy” girls, embodied by the model’s supermodel “Angels.” Instead, it would function a extra inclusive, various cast of seven girls (the “VS Collective”) that features Megan Rapinoe, the soccer star and gender equality advocate, and Priyanka Chopra Jonas, the Indian actor and tech investor. But will girls purchase it — or, extra vital for the company, the underwear it’s making an attempt to promote?
Trouble at Lordstown
Lordstown Motors, a start-up automaker that took over a shuttered General Motors plant in Ohio, promised to develop electrical vans and convey again manufacturing jobs. Instead, its prototype truck burned down throughout testing in February and securities regulators are investigating the company and its claims about buyer curiosity in its autos. Now it seems the company could not have sufficient money to fabricate the vans it promised. This is unhealthy information for Lordstown’s staff in addition to its backers, which embrace massive names like G.M.