Summary

The U.S. FTC implements a ban on most noncompete agreements, drawing criticism from business groups while aiming to boost worker wages by over $300 billion. The Biden-Harris Administration mandates airlines to refund passengers automatically for cancellations or service lapses, simplifying the process and reinforcing consumer protections. President Biden signs legislation compelling ByteDance to divest TikTok's U.S. operations within a year or face a nationwide ban, intensifying U.S.-China tech tensions. Alphabet announces its first dividend and a $70 billion stock buyback, driving shares up amid heavy investments in AI technology. Tesla's stock slumps for seven days due to price cuts, recalls, and layoffs, while Boeing reports a $355 million loss, facing scrutiny over aircraft safety amid ongoing challenges.

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For those who read...

Let's dive into the latest B-News:

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Starting with the Macro Business Landscape: 

• The U.S. Federal Trade Commission (FTC) has implemented a new rule that bans most noncompete agreements, which have been criticized for unfairly restricting workers' employment opportunities. In response, several large business groups have filed a lawsuit against the FTC, claiming the agency has overstepped its authority with this ban. The FTC claims the ban could increase wages by over $300 billion, affecting nearly 30 million workers.
• Soaring through regulatory skies, The Biden-Harris Administration has announced a new Department of Transportation aka DOT rule mandating airlines to automatically refund passengers for cancellations, significant changes, or unprovided services. The ruling aims to simplify the refund process and enforce prompt cash reimbursements, enhancing consumer protections and setting clear standards for when refunds are due. Regulations are likely to go into effect late October.

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Moving to the Corporate World:

• Within the latest development in the U.S.-China tech battle, President Joe Biden signed legislation on Wednesday forcing ByteDance, TikTok's Chinese parent company, to divest its U.S. operations within a year or face a nationwide ban on the popular app. This measure, part of a broader legislative package, intensifies the tech conflict between the U.S. and China, with ByteDance spending $7 million on lobbying efforts to fight the forced sale.
• Moving over to Wall Street, Alphabet, Google’s parent company, has announced its first-ever dividend of 20 cents per share along with a $70 billion stock buyback, propelling its shares nearly 16% higher after the bell. This move to return capital to shareholders coincides with Alphabet's heavy investments in data centers to advance its artificial intelligence capabilities, particularly their Gemini Chatbot, amid growing competition.
• Tesla's stock decline continued for seven consecutive days, reaching its lowest price dating back to January 2023, driven by a series of price cuts, recalls of its Cybertruck over pedal defects, and major layoffs indicating a shift toward developing a robotaxi rather than a new affordable car. The stock fell 3.4% on Monday, totaling a 43% drop this year, but has since risen over 22% the rest of the week.
• ​As things continue to get worse and worse, Boeing has reported a $355 million loss in the first quarter amidst falling revenues and increasing scrutiny over aircraft safety and whistleblower claims. CEO David Calhoun stated that the aerospace manufacturer remains committed to addressing its manufacturing challenges, especially those highlighted by recent incidents involving the Boeing 737 Max and the resurfacing of concerns from past crashes.

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That's all for this week's Business Column.

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Stay tuned for more updates next Friday!

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Macro Recap:

FTC Bans Restrictive Noncompete Clauses  (FTC) (NYT)

New DOT Rule: Automatic Airfare Refunds (ABC) (NPR)

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Corporate World Recap:

Tesla's Wild Stock Ride: From Lows to Highs (CNBC) (TV)

Biden Enforces TikTok Divestiture Law ​(AP) (CBS)

Alphabet Announces First Dividend, Huge Buyback (RT) (YT)

Boeing Reports $355M Loss Amid Safety Concerns (ABC)(RT)