Latest Developments

North America
CNBC

UAW union strike threatens General Motors truck production

DETROIT — Nearly 1,000 workers at a Michigan supplier plant that makes parts for General Motors pickup trucks went on strike Monday after not reaching a new contract with the company. The United Auto Workers union on Monday confirmed workers at an axle and components plant in Three Rivers, Michigan, for Dauch Corp. — formerly known as American Axle and Manufacturing — walked out of the factory and onto picket lines at 12:01 a.m. ET Monday. The union did not release a full list of demands, but said in a press release Sunday night that workers are still trying to regain wages lost during the Great Recession. "We'll stay out on strike until this company comes to its senses," UAW President Shawn Fain said during a Sunday video announcement. "The full force of the UAW international union will be standing with these workers. So, American Axle, time is up. No contract, no axles." The union said longtime workers who were making as much as $29 an hour saw their wages slashed to $14.50 in 2008. Current wages top out at $22 an hour after a five-year progression, the union said. A spokesman for Dauch in an emailed statement called the strike "disappointing." He did not immediately respond to a question about bargaining details. "The company believes that the best outcomes for everyone — our associates, the union, and the company — are reached at the bargaining table. We remain committed to negotiating with the union in good faith and hope to promptly reach a fair agreement," the company statement read. Jon Krause, a 32-year American Axle employee and member of the bargaining committee for UAW Local 2093, which represents the striking workers, told CNBC that in addition to wage increases, the workers also are bargaining for improvements in healthcare benefits, retirement and other work-related issues. "We just want the company to step up and give our members a livable wage, something that they've earned, something that they deserve," Krause said. "This local, when the company was sinking 18 years ago, kept them above water, and it's time to return that favor." Krause said the union believes that GM appears to have about two weeks' worth of axles in stock. A spokesman for GM said the automaker "is closely monitoring the situation" and "assessing any potential impact." As of Monday, production at GM's plants was operating as usual. The impacted plant produces axles for GM's Chevrolet Colorado and GMC Canyon midsize pickup trucks as well as its heavy-duty Chevrolet Silverado and GMC Sierra pickups. Other production includes smaller components for the Detroit automaker's light-duty Silverado and Sierra pickups as well as parts of Stellantis' Chrysler Pacifica minivan, a union spokesman confirmed.

UAW union strike threatens General Motors truck production
North America
CNBC

Berkshire's bet on Taylor Morrison suggests the housing market may have bottomed

The announcement of a megadeal between Berkshire Hathaway and top 10, publicly traded homebuilder Taylor Morrison Home came as a surprise to most in the industry. The consensus, however, is that it makes perfect sense and may signal optimism in a currently beleaguered housing market. Berkshire Hathaway agreed Sunday to acquire the nation's sixth-largest publicly traded builder in a $6.8 billion deal. The offer represents a 24% premium to the homebuilder's closing price on May 29 and values the company at about $8.5 billion, including debt. It comes at a time when the U.S. housing market is struggling under higher and volatile mortgage rates as well as elevated costs for construction and weaker consumer confidence. The war with Iran has also dealt a blow to the housing market. Taylor Morrison put out a somewhat aggressive, multiyear growth plan just about 15 months ago. "We've certainly seen some shifts in the market, so the targets we put out, we stand behind. The timing certainly might have been at risk," said Sheryl Palmer, CEO of Taylor Morrison, in an interview with CNBC's "Squawk on the Street" on Monday. "I think one of the things we're so excited about is homebuilding runs in five-, seven-, 10-year cycles. Berkshire thinks in probably seven-, 10-[year] and longer cycles. That alignment is very rare." It's that longer-term horizon that most analysts say is why the time is right for a deal. "What it says is that very sophisticated buyers think the valuations have bottomed," said Margaret Whelan, founder and CEO of Whelan Advisory, which specializes in homebuilder M&A. "I assume sophisticated buyers would wait and buy later or pay less if they thought the market was still going down." Stock values anticipate fundamental turns, Whelan explained, "so that means that the housing market itself is probably starting to bottom here soon, which is good, because I don't think anyone really knew that when we don't know what's going on with the rates." John Burns, founder and CEO of John Burns Research and Consulting, noted the outlook for the housing market over the next few years isn't bright, and stocks have been punished as a result. "But long-term thinkers like Berkshire Hathaway and the Japanese companies are seeing that as a platform to buy great companies for the long term, and it's really that simple," Burns said. CNBC's Property Play with Diana Olick covers new and evolving opportunities for the real estate investor, delivered weekly to your inbox. U.S. homebuilders have recently been the target of Japanese buyers. Sumitomo Forestry just closed on a $4.5 billion deal to purchase Tri Pointe Homes. All told, Japanese companies now own 33 homebuilders that operate in the U.S.

Berkshire's bet on Taylor Morrison suggests the housing market may have bottomed
North America
CNBC

'Disrupted or dead': AI is crushing a generation of startups built before ChatGPT

Five years ago, venture capitalists were pouring money into American startups selling everything from lingerie subscriptions to scheduling software, anointing them with billion-dollar valuations before most even turned a profit. It was a frothy era for startups, fueled by a combination of cheap money and pandemic-boosted demand. But even after the Federal Reserve took some froth off by starting to raise interest rates in 2022, many founders believed that they could grow into their inflated valuations, investors told CNBC. "The ChatGPT moment was when people said, 'Holy smokes, the next generation of entrepreneurs, their coding language is spoken English,'" said Samir Kaul, a partner at the venture firm Khosla Ventures, an early backer of OpenAI. "Now you're seeing 50 engineers do what it would've taken 500 engineers to do five years ago," Kaul said. "We had to completely reshuffle how we valued these companies." While the shares of public software companies like Salesforce, ServiceNow and Workday got hammered this year because of the threat from artificial intelligence, a quieter reckoning has been unfolding in the private markets. The AI boom that funneled more than $250 billion into OpenAI and Anthropic ahead of their expected mega-IPOs this year has left hundreds of startups built before ChatGPT's arrival in 2022 stranded — effectively cut off from venture funding because of their inflated valuations and outdated technology, yet not profitable enough for the public markets. There are 857 U.S. startups valued at $1 billion or more, the threshold for being deemed a "unicorn" company, according to PitchBook data. But nearly half of that group hasn't raised fresh funding in the last three years, making those valuations stale, according to the private markets data firm. Startups that last raised in 2021 are now worth 68% less on average, while those that last raised in 2022 saw a 52% decline, according to Pitchbook's own valuation estimates. As a result, more than 220 companies that had reached billion-dollar valuations in the venture boom are now fallen unicorns, according to PitchBook, which provided a list of the companies exclusively to CNBC. The estimates are based on factors including head count growth and comparisons with public companies. "A lot of those companies are pre-AI, not just in their cost structure, but also in their products," Mercury CEO Immad Akhund told CNBC. His company, which raised $200 million in funding last month, provides banking services to a third of early-stage U.S. venture-backed firms. "They're definitely in a difficult spot," he said. "All the attention's on AI, so if you're not an AI-first company, you need really strong numbers to raise." The list of fallen unicorns includes well-known brands like Glossier, The Farmer's Dog, Rothy's, Brooklinen and Savage X Fenty, the lingerie company founded by musician Rihanna. The companies were part of a wave of direct-to-consumer firms built on the hope that digital retailers could earn software-like margins.

'Disrupted or dead': AI is crushing a generation of startups built before ChatGPT
Europe
BBC Business

'It is by the grace of God that you find a diamond'

The rising popularity of lab-grown diamonds has caused a big fall in the price of the mined gems. In the West African nation of Sierra Leone the country's biggest diamond mine has closed. Stripped to the waist, men toil in the heat of the sun. The mud in the pit is sifted and shovelled. Daniel, the foreman in this remote, informal, small-scale mine in Kono, the diamond region of Sierra Leone, shows me the gravel he's picking through with his fingers. "We put it in water and we wash it," he says. "If there is anything like a diamond or any bright stone, we can see it." Daniel and five others are searching for just tiny fragments, but pickings are thin. "I have not made a lot of money yet," he says. "Sometimes for the whole of the year you can't get anything. "It is by the grace of God that you find a diamond. We are just dreaming, really. We still have that hope." Such informal mining has increased in Kono following the closure last year of the country's biggest diamond mine Koidu Holdings. It shut with the loss of 1,000 jobs after a bitter industrial dispute over the miners' pay. Officially the company says it closed due to the cost of the dispute and security concerns, but privately, insiders also acknowledge that the weakness of the global market also played a role. In just the past four years, the retail price of polished natural diamonds has fallen some 40%. The main driver has been the rapid growth of the so-called lab-grown diamond industry. These factory-made diamonds, produced from crystalised carbon, are chemically and physically identical to mined diamonds. Manufactured mostly in India and China using two different technologies – HPHT (high pressure high temperature) and CVD (chemical vapour deposition) – they cost a fraction of the price, up to 70% less. Kono's governor, Augustine Shekho, says the big fall in the global price of natural diamonds has hit the region hard over the past five years. "Lower diamond values have reduced earnings for miners, constrained investment, and weakened local economic activity."

'It is by the grace of God that you find a diamond'
Europe
The Guardian

Fired 60 Minutes correspondent Scott Pelley says CBS told him to inject ‘falsehoods’ into reporting

Scott Pelley anchors CBS News' election night coverage on 8 November 2016 at the CBS Broadcast Center in New York City. Photograph: Michele Crowe/CBS via Getty ImagesView image in fullscreenScott Pelley anchors CBS News' election night coverage on 8 November 2016 at the CBS Broadcast Center in New York City. Photograph: Michele Crowe/CBS via Getty ImagesCBSFired 60 Minutes correspondent Scott Pelley says CBS told him to inject ‘falsehoods’ into reportingVeteran journalist says executives pushed unverified claims and gave politicians a say in interviews The longtime 60 Minutes correspondent Scott Pelley, who was fired by CBS News on Tuesday after clashing with the network’s new management, issued a public statement accusing the network’s new executives of silencing employees and claiming they instructed him “to inject falsehoods and bias” into his reporting. “‘60’ has been the number-one program in America for decades because our beloved audience finds integrity, quality, and humanity in our stories,” Pelley wrote in the lengthy statement he shared on social media on Wednesday morning. “When stewardship of the program passed to my colleagues and me, our responsibility was to expand energetically into a new age of media technology while preserving the values our audience expects. Now, the new owner of our network is casting this legend aside, apparently to curry a moment of favor with the Trump administration.” Pelley criticized the new leadership at CBS, adding: “Last month, 60 Minutes lost its DNA when our entire senior leadership and two of our best on-air correspondents were cruelly fired without cause. Good people were silenced because they stood up for our audience. They stood for fairness against the forces of political bias; they stood for professionalism against chaos.” He continued: “For my part, new management has instructed me to inject falsehoods and bias into a politically sensitive story. I’ve been told to include assertions that are unverified. To date, in every case, I have managed to ignore these instructions or refuse them. “Recently, politicians have been invited to choose correspondents for interviews on the broadcast. Giving politicians control over 60 Minutes interviews is not how this is done. Finally, incompetence and unprofessionalism in the new management have wreaked havoc. In a case involving one of my stories, the entire program came within 19 minutes of not getting on the air at all.” He concluded his statement by saying that he was departing “after 37 years at CBS with one emotion – a heart brimming with gratitude for the men and women of CBS News who encouraged and enriched my work, very often at the risk of their own lives. I pray for a day when those people and their ideals are honored again – a day when sanity, competence, and courage return.” CBS News did not immediately respond to the Guardian’s request for comment about the statement. Bari Weiss addressed Pelley’s termination on the network’s morning call on Wednesday. “I know I speak for myself, and I hope I speak for everyone here when I say that I’m only interested in working in a newsroom that is built on trust and mutual respect. We cannot do our work without it. That foundation was broken on Monday, and despite our attempts to engage with Scott Pelley and to find a way back, unfortunately we weren’t able to do so, and so we had to part ways,” Weiss said, according to an audio recording of the meeting obtained by the Guardian. “We did not want that to happen, but that’s the path that he chose. That unfortunate outcome does not discount from the amazing contributions and work that Scott Pelley has done for CBS and for 60 Minutes over the course of his career.”

Fired 60 Minutes correspondent Scott Pelley says CBS told him to inject ‘falsehoods’ into reporting
North America
CNBC

McDonald's unveils new global growth strategy to win over diners as competition rises

McDonald's on Monday unveiled its latest global growth strategy to help the fast-food giant become customers' first choice as it faces new rivals and consumer spending stretched by high gas prices. A new restaurant design, better-tasting food and drinks, consumer-led innovation and improved customer service are the four cornerstones of the new plan, which the company calls "McDonald's > NEXT." Executives made the announcement at McDonald's biennial Worldwide Convention for franchisees, held this year in Las Vegas. The chain released its last global strategy, known as "Accelerating the Arches," in November 2020 as its sales bounced back from the pandemic. The growth plan comes as restaurants compete for a smaller pool of customers, and a new crop of chains, including Raising Cane's and 7 Brew Drive Thru Coffee, threaten McDonald's sales. So far, McDonald's, the largest U.S. restaurant chain by revenue, has managed to hold onto its dominant spot, with four straight quarters of same-store sales growth. "Traditional competitors are upgrading their menus, and a new wave of specialists are emerging and redefining taste and quality across chicken, beef, and beverages," McDonald's CEO Chris Kempczinski wrote in a memo to the chain's global system. "In a world where every restaurant is a swipe away, there is no such thing as second place," he added. To become diners' first option, McDonald's plans to focus on menu innovation that elevates taste and quality, like improvements to its McCrispy chicken line. For years, the chain has sought to improve and expand its chicken offerings as rivals like Chick-fil-A stole its customers. Plus, Americans have been eating more chicken than beef for the past 16 years, due to health concerns tied to the consumption of red meat and higher beef prices, according to U.S. Department of Agriculture data. "We're raising the bar for our menu by improving quality and consistency at scale and innovating in spaces where we see growth potential and know matter to our customers, like chicken, beef and beverages," said Jill McDonald, the chain's global chief restaurant experience officer. The chain also wants to "co-create" with customers by listening more closely to what consumers want and how they interact with brands. Recent examples include the popularity of its viral Grimace milkshake and its collaboration with "A Minecraft Movie." The new restaurant design will give McDonald's a recognizable look, but it should also ease employee headaches and improve kitchen operations. The company said back-end systems will be more intuitive and connected, for example. McDonald's is also testing automated order taking at five U.S. restaurants using a system it named ARCHY to let employees focus on other tasks. More broadly, the chain also said it wants to "redefine hospitality" by improving customer service and training employees to interact more with diners. In September, the company will hold an investor day that will include more details about the strategy and relevant financial targets.

McDonald's unveils new global growth strategy to win over diners as competition rises
Europe
BBC Business

Universal park officially named as government pledges £1.3bn

Universal's planned UK theme park will be named Universal United Kingdom Resort, it has been revealed, and will be supported by £1.3bn in government funding. Comcast NBCUniversal said it expected the attraction to draw 8.5 million visitors a year when it opens in 2031, with ambitions for it to become Europe's most-visited theme park. The US entertainment giant said it would invest £5bn in building the resort, in Kempston Hardwick, Bedfordshire, with a further £1bn planned over its first 10 years. The government's contribution will go towards upgrading local infrastructure and transport links to help accommodate visitors from across the UK and overseas. Ahead of the announcement, Chancellor Rachel Reeves visited the site where site preparation works had already begun. She said the investment would "unlock nearly £50bn of economic growth" and create thousands of jobs. The Labour politician continued: "Our own investment in transport and infrastructure means that local people will benefit - improving connectivity, backing our creative industries, and bringing millions of visitors to the UK from across the world." Part of the government's investment will fund upgrades to Wixams station to create a four-platform stop, as well as improvements to the A421, which were expected to cost £474m. Wixams is the Thameslink line stop closest to the resort, but there is also a planned East West Rail station at Stewartby, expected to open in the early 2030s. More than 100 people in the UK have already been employed to work on the project, with Universal promising a total of 20,000 jobs during the construction period. Once the attraction opens, it said a further 8,000 jobs would be created and about 80% of those roles would go to people from Bedfordshire and surrounding areas. Mark Woodbury, chairman and CEO of Universal Destinations & Experiences, said: "This new theme park and resort will create so many new opportunities for the people of Bedford and beyond and allow us to share our distinct experiences with guests from around the world."

Universal park officially named as government pledges £1.3bn
Europe
The Guardian

George Santos reportedly investigated by DoJ over suspicious Kalshi bets

George Santos outside court in Suffolk county, New York in 2024. Santos was sentenced to seven years for fraud. Photograph: Stefan Jeremiah/APView image in fullscreenGeorge Santos outside court in Suffolk county, New York in 2024. Santos was sentenced to seven years for fraud. Photograph: Stefan Jeremiah/APRepublicansGeorge Santos reportedly investigated by DoJ over suspicious Kalshi betsDisgraced former congressman said to have put bet on whether he would be at Trump’s State of the Union speech Federal authorities are investigating whether George Santos, the disgraced former Republican congressman from New York, engaged in insider trading by betting on a prediction market on his own attendance to the State of the Union address, multiple news outlets reported on Tuesday. Santos allegedly placed a bet on Kalshi, a popular online prediction market, over whether he would be in attendance at Trump’s State of the Union address in February, according to NPR, which first reported on the investigation citing anonymous sources. Santos had shared his intention to be at the event on social media, before telling his followers that travel woes had nixed the plan. Kalshi, whose representatives also did not reply to a request for comment, flagged the trade to the Commodity Futures Trading Commission (CFTC), according to the Associated Press. Anonymous sources confirmed to several other news outlets that the Department of Justice was investigating the matter. The justice department and the CFTC did not immediately respond to a request for comment. Reports of the federal investigation comes as Kalshi and Polymarket have faced scrutiny from lawmakers over concerns about insider trading. Questions have swirled about well-timed, profitable online bets on the Iran war. In April, Kalshi fined three congressional candidates for betting on their own races. That same month, a US soldier involved in the capture of the Venezuelan president, Nicolás Maduro, was taken into custody over bets he made about the deposed head of state on Polymarket. Asked by NPR whether he had a Kalshi account, Santos said: “I’m not saying yes. I’m not saying no.” “I hate to disappoint but I don’t engage with rag reporting anymore…” Santos wrote on X, appearing to reference the reports. “Business as usual on my end haters!” he said. Santos had a short stint in Congress, representing New York’s third district. He was expelled in December 2023 after a House ethics committee report detailed how he used campaign funds for purchases including travel, cosmetic treatment and luxury goods. In April 2025, Santos was sentenced to seven years in prison after pleading guilty to wire fraud and identity theft. Months later, Trump commuted his sentence.

George Santos reportedly investigated by DoJ over suspicious Kalshi bets
Europe
BBC Business

Three quarters of workers not on track for 'moderate' pension income, report suggests

Too many people face a "cliff-edge drop in income" when they retire, with more than three quarters not on course to save enough for a "moderate" lifestyle, a pensions trade body has warned. A new report by Pensions UK suggested what it termed a moderate lifestyle cost £32,700 for one person and £45,400 for two - but estimated just 23% of the working population were on course to reach such a level. Rising bills have pushed up the cost of retirement, it said, adding to calls for action to boost retirement savings. According to the report, a minimum retirement lifestyle costs around £13,900 annually for a one-person household and £22,500 for two people. Meanwhile, a comfortable lifestyle in retirement is estimated to cost £45,400 for a single person and £62,700 for a couple. Pensions UK said only 9% of workers were in line to get to that level. The trade body estimates the level of income needed to have a minimum, moderate or comfortable standard of living as a pensioner each year. The calculations are developed and maintained independently by the Centre for Research in Social Policy at Loughborough University. They are intended as a guide for those planning their retirement savings. The minimum standard is calculated to include money for a couple's weekly groceries, a week's holiday in the UK, eating out about once a month and some affordable leisure activities about twice a week. Some 82% of the working population would reach the minimum standard, the report said. "Far fewer will go beyond that. That is out of step with what people expect for their future. Without action, too many risk facing a cliff-edge drop in income when they stop work," said Zoe Alexander, from Pensions UK. The incomes needed had increased compared with a year ago, primarily as a result of the rising cost of food and socialising, the report said. The increases were broadly in line with rising prices, as measured by inflation, though housing costs are excluded.

Three quarters of workers not on track for 'moderate' pension income, report suggests