Company Highlights: Fed Rate Hike, Twitter Bans
Musk: People banned from Twitter won’t be restored for weeks
NEW YORK — Elon Musk says Twitter won’t allow anyone who’s been kicked off the site to come back until it puts in place procedures on how to do so — a process that will take at least a few weeks. This would mean that people banned from the site for violating Twitter’s rules on harassment, violence or COVID-related election and misinformation will not be able to return before the US midterm elections next Tuesday. The pledge came after Musk met with a handful of civil society leaders on Tuesday. Meeting attendees said they asked Musk not to restore banned users’ accounts until the midpoint. They also asked Twitter to have a transparent process for how it plans to restore accounts and enforce voter integrity measures already in place.
CVS and Walgreens announce opioid settlements totaling $10 billion
CVS and Walgreens have agreed in principle to pay a total of about $10 billion to settle lawsuits over the toll of strong prescription opioids. A local government attorney also said Wednesday that settlement talks are continuing with Walmart. The developments involving the nation’s largest drugstore chains could be the latest huge settlements announced in years of litigation between government entities and drugmakers, distributors and pharmacies over opioids. Governments say pharmacies were filling prescriptions they should have flagged as inappropriate. Opioids have been linked to more than 500,000 deaths in the United States over two decades, and the crisis is intensifying.
Medical Marijuana Companies Lead Donors for Legal Weed Campaigns
JEFFERSON CITY, Mo. — Donors associated with companies holding medical marijuana licenses are providing the bulk of the funding for ballot measures that would legalize recreational marijuana in several states. An analysis of campaign finance data by The Associated Press shows that marijuana legalization campaigns raised about $23 million in Arkansas, Maryland, Missouri, North Dakota and South Dakota. South. Entities associated with the existing marijuana industry provided the bulk of the money in every state except North Dakota, where a national cannabis advocacy group is the top donor. The advocacy group New Approach is also the main backer of a Colorado initiative to legalize psychedelic mushrooms.
CVS Health exceeds forecasts and sets aside billions for settlement
CVS Health reported a loss of more than $3 billion in the third quarter after setting aside funds for a potential opioid litigation settlement, but still beat expectations and raised its 2022 guidance. The healthcare giant has detailed a planned national lawsuit settlement over how it handled prescriptions for strong painkillers linked to an overdose outbreak. The company set aside $5.2 billion in the quarter to cover payments over 10 years under a deal that, if accepted, would be one of the biggest settlements of the crisis. During the quarter, CVS Health saw sales increase across all three businesses.
European Central Bank urges banks to speed up climate work
FRANKFURT, Germany – The European Central Bank is warning that many financial institutions are moving too slowly to protect themselves and Europe’s banking system from the impact of climate change. It also set new deadlines for meeting these requirements. The ECB says progress has been made but a review of 186 banks released on Wednesday showed change was uneven and “the glass remains half full”. The bank has set progressive deadlines for banks to comply with climate requirements by the end of 2024. Both the ECB and the Bank of England have taken climate change into account more than the US Federal Reserve.
Trouble-plagued Boeing sets ambitious recovery targets
Boeing promises Wall Street that it will make big improvements in aircraft production and cash flow generation over the next few years. Company officials told analysts on Wednesday that Boeing will generate $10 billion in annual cash flow by 2025 or 2026. This optimistic forecast is based on ramping up production of its best-selling jet, the 737 Max, from 31 to 50 per month. Company officials also say they have a handle on fixed-price contracts for the Pentagon that have cost the company billions due to budget overruns.
Estée Lauder among multinationals affected by China lockdowns
The devastating effects of COVID-19 lockdowns in China overshadowed a strong quarter at Estee Lauder and shares there tumble in early trading. International companies that depend on sales in China have been hammered by Beijing’s “Zero COVID” policies. On Wednesday, Estee Lauder lowered its annual earnings per share forecast to between $7.39 and $7.54, to between $5.25 and $5.40. Big business has not been spared the effects of China’s tough virus policies. Access to an industrial zone in the central Chinese city of Zhengzhou was suspended on Wednesday after workers who assemble Apple iPhones left following outbreaks. Starbucks reports results Thursday. In its most recent quarter, the company said comparable store sales in China fell 44%.
The S&P 500 fell 96.41 points, or 2.5%, to 3,759.69. The Dow Jones Industrial Average fell 505.44 points, or 1.5%, to 32,147.76. The Nasdaq fell 366.05 points, or 3.4%, to 10,524.80. The Russell 2000 Small Business Index fell 62.25 points, or 3.4%, to 1,789.14.