Category: 3. Business

  • Atlanta Fed chair steps down as Trump attacks central bank’s independence | Federal Reserve

    Atlanta Fed chair steps down as Trump attacks central bank’s independence | Federal Reserve

    The head of the Federal Reserve Bank of Atlanta announced plans to step down amid an extraordinary campaign by Donald Trump to exert influence over the US central bank.

    Raphael W Bostic, president of the Atlanta Fed, will retire from the role in February – creating another vacancy on the Fed’s powerful policy committee.

    As the Trump administration continues to demand interest rate cuts, and even target some Fed officials, Bostic is the latest senior figure to depart.

    After Adriana Kugler resigned in August from the Fed’s board of governors, Trump replaced her on interim basis with Stephen Miran, one of his top advisers.

    The US president will not pick Bostic’s successor, however. The Atlanta Fed will now conduct a nationwide search for its next president.

    Bostic, 59, could have remained in post for another six years. He was the first African American and openly gay president of a regional Federal Reserve bank in the Fed’s history.

    The Fed’s rate-setting Open Market Committee (FOMC) has 12 members at any one time. These include the central bank’s seven board governors; the president of the New York Fed; and four of the 11 other regional Fed presidents, who rotate through yearly terms.

    “I feel incredibly fortunate to have worked with the Atlanta Fed’s outstanding staff to fulfill the Federal Reserve’s mission and serve the Sixth District and the American people,” said Bostic. “I’m proud of what we accomplished during my tenure to turn the lofty goal of an economy that works for everyone into more of a reality, and I look forward to discovering new ways to advance that bold vision in my next chapter.”

    Jerome Powell, the Fed chair, paid tribute to Bostic. “His perspective has enriched the Federal Open Market Committee’s understanding of our dynamic economy,” said Powell. “And his steady voice has exemplified the best of public service – grounded in analysis, informed by experience, and guided by purpose.

    “His leadership has strengthened our institution and advanced the Federal Reserve’s mission.”

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  • Anthropic announces $50B investment in new US data centers to meet AI demand

    Anthropic announces $50B investment in new US data centers to meet AI demand

    SAN FRANCISCO — Artificial intelligence company Anthropic announced a $50 billion investment in computing infrastructure on Wednesday that will include new data centers in Texas and New York.

    Anthropic, maker of the chatbot Claude, said it is working with London-based Fluidstack to build the new computing facilities to power its AI systems. It didn’t disclose their exact locations or what source of electricity they will need.

    A report last month from TD Cowen said that the leading cloud computing providers leased a “staggering” amount of U.S. data center capacity in the third fiscal quarter of this year, amounting to more than 7.4 gigawatts of energy, more than all of last year combined.

    Oracle was securing the most capacity during that time, much of it supporting AI workloads for Anthropic’s chief rival OpenAI, maker of ChatGPT. Google was second and Fluidstack came in third, ahead of Meta, Amazon, CoreWeave and Microsoft.

    Anthropic said its projects will create about 800 permanent jobs and 2,400 construction jobs. It said in a statement that the “scale of this investment is necessary to meet the growing demand for Claude from hundreds of thousands of businesses while keeping our research at the frontier.”

    The tech industry’s huge amount of spending on computing infrastructure for AI startups that aren’t yet profitable has fueled concerns about an AI investment bubble.

    Investors have closely watched a series of intertwined deals over recent months between top AI developers such as OpenAI and Anthropic and the companies building the costly computer chips and data centers needed to power their AI products. Anthropic said it will continue to “prioritize cost-effective, capital-efficient approaches” to scaling up its business.

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  • Circle quarterly profit beats estimates on stablecoin growth – Reuters

    1. Circle quarterly profit beats estimates on stablecoin growth  Reuters
    2. Circle’s Third-Quarter Revenue Increased More Than Estimated  Bloomberg.com
    3. Circle’s Rapid USDC Expansion Fails to Boost Struggling Shares Amid Rising Expenses and Divided Analyst Opinions  Bitget
    4. Stablecoin issuer Circle’s shares on track for lowest close since going public  MarketWatch
    5. Circle Stock falls after record USDC growth fails to lift investor sentiment  Yahoo Finance

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  • Bessent, US Treasurer to strike final penny at Philadelphia Mint – Reuters

    1. Bessent, US Treasurer to strike final penny at Philadelphia Mint  Reuters
    2. US to mint its last penny as Treasury halts production after more than 230 years  Fox Business
    3. The last-ever penny will be minted today in Philadelphia  CNN
    4. US Mint to strike ‘final circulating penny’ on Wednesday, Nov. 12  USA Today
    5. US ends penny-making run after more than 230 years  BBC

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  • Ford CEO says he has 5,000 open mechanic jobs with 6-figure salaries from the shortage of manually skilled workers: ‘We are in trouble in our country’

    Ford CEO says he has 5,000 open mechanic jobs with 6-figure salaries from the shortage of manually skilled workers: ‘We are in trouble in our country’

    Ford’s CEO Jim Farley thinks America needs a wake-up call.

    Speaking on the Office Hours: Business Edition podcast, Farley said Ford had 5,000 open mechanic positions that it hasn’t been able to fill, despite an eye-popping $120,000 salary—nearly double the American worker’s median salary.

    And it’s not just Ford, added Farley. The carmaker’s struggle to fill jobs that require training and manual labor are indicative of a general shortage for manual-labor jobs in the U.S., he added.

    “We are in trouble in our country. We are not talking about this enough,” Farley told host Monica Langley. “We have over a million openings in critical jobs, emergency services, trucking, factory workers, plumbers, electricians, and tradesmen. It’s a very serious thing.”

    While President Donald Trump has centered his economic agenda on bringing manufacturing back to the U.S., there remains a gap between the number of factory jobs open and the number of people willing to fill them.

    There were more than 400,000 manufacturing jobs open as of August, according to preliminary data from the Bureau of Labor Statistics, despite a 4.3% unemployment rate, which is higher than in previous years. A 2024 study from the Manufacturing Institute and Deloitte also found more than half of the 200 manufacturing firms surveyed said recruiting and retaining workers was their top struggle.

    Yet, Farley said jobs in the trades like those at Ford “made our country what it is,” and allowed people like his grandfather—who worked on the company’s flagship Model T and was employee 389 at the company—to have good lives.

    Farley said the company is doing better on wages. It got rid of the lowest tier of its wage scale, and agreed to give workers a 25% salary bump over four years as part of its agreement with the United Auto Workers union in 2023. 

    Still, part of the problem for the shortage of manufacturing jobs is the lack of education and training, according to Farley. He noted, for example, learning to take a diesel engine out of a Ford Super Duty truck takes at least five years. The current system is not meeting the standard, he added.

    “We do not have trade schools,” he said. “We are not investing in educating a next generation of people like my grandfather who had nothing, who built a middle class life and a future for his family.” 

    To be sure, younger people may be leading the charge on filling the gap in manufacturing positions. Gen Z is increasingly straying from the traditional college path and attending trade schools in an effort to avoid cumbersome student loans while also snagging a well paying job. 

    Enrollment in vocational school jumped 16% last year, rising to the highest level since National Student Clearinghouse started tracking data in 2018, Fortune previously reported. However, the top jobs paying more than $200,000 per year mostly require advanced degrees, according to a study by job platform Ladders. 

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  • Kim Kardashian’s Skims valued at $5bn after raising new funding | Kim Kardashian

    Kim Kardashian’s Skims valued at $5bn after raising new funding | Kim Kardashian

    Skims, founded by reality TV star and entrepreneur Kim Kardashian along with CEO Jens Grede, said on Wednesday it had raised $225mn in new capital, valuing the shapewear label at $5bn.

    Kardashian’s ventures, including her cosmetics brand SKKN, have attracted young shoppers and benefited from her vast social media following. Similarly, other celebrity-backed brands have also drawn venture capital investment, as firms bet on the marketing power and built-in audiences of high-profile founders to drive consumer demand.

    Elf Beauty agreed to buy Hailey Bieber’s makeup and skincare brand, Rhode, for about $1bn earlier this year, while Rihanna-backed Fenty Beauty and Khloé Kardashian’s Good American have also drawn venture capital funding.

    Skims said it plans to use the new capital to broaden its intimates and shapewear lines, expand further into apparel and activewear and enhance its retail presence and international growth.

    “This milestone reflects continued confidence in our long-term vision and coupled with disciplined execution, positions Skims to unlock its next phase of growth,” Grede said in a statement.

    Skims, founded in 2019, said it was on track to exceed $1bn in net sales in 2025. Earlier this year, Coty sold a 20% stake in Kardashian’s beauty brand to Skims, consolidating the two businesses under a single brand.

    The company, known for its focus on inclusive sizing, now operates 18 retail stores in the US and two franchise locations in Mexico. Skims said it was laying the groundwork to be a predominantly physical business over the next few years.

    The company has also forged a partnership with sportswear giant Nike to launch activewear for women.

    The latest fundraising in the apparel company was led by investment giant Goldman Sachs Alternatives with participation from BDT & MSD Partners’ affiliated funds.

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  • Bessent says 'substantial' moves coming to cut US prices of coffee, other items – Reuters

    1. Bessent says ‘substantial’ moves coming to cut US prices of coffee, other items  Reuters
    2. Bessent says ‘substantial’ tariff relief on coffee and bananas is coming soon  NBC News
    3. Trump pledges to cut coffee tariffs as US food prices soar  World Coffee Portal
    4. Sen. Cortez Masto introduces No Coffee Tax Act, pushing back on President Trump’s tariffs  KDNL
    5. Treasury Secretary Bessent says Trump wants to lower coffee and banana prices ‘very quickly’  Business Insider

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  • Gold Edges Higher as Weak US Jobs Data Raise Rate-Cut Prospects – Bloomberg.com

    1. Gold Edges Higher as Weak US Jobs Data Raise Rate-Cut Prospects  Bloomberg.com
    2. Gold price rises ahead of vote to end US gov’t shutdown  Mining.com
    3. Gold Price Outlook: XAU/USD Bulls Roar Back- Rebound Testing Pivotal Resistance  FOREX.com
    4. Gold gains nearly 2% on optimism about US government reopening  Reuters
    5. Gold prices stabilizes after two-day rebound; U.S. govt reopening, Fed in focus  Investing.com

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  • Waymo says self-driving taxis will drive customers on freeways

    Waymo says self-driving taxis will drive customers on freeways

    SAN BRUNO, Calif. — The self-driving car company Waymo said Wednesday it would begin offering rides on freeways for robotaxi customers in Los Angeles, Phoenix and the San Francisco Bay Area in a significant step forward for autonomous vehicles.

    Previously, Waymo has limited its robotaxis to city streets, saying it wanted to be sure its technology was safe before deploying it at the faster speeds of freeways. But after years of testing, the company said it now believed it was ready.

    The ability to travel on interstate highways and expressways has been one of the missing puzzle pieces for self-driving technology since scientists began working on it decades ago, alongside such challenges as snowy weather and vandalism.

    “This has been a long time in the making,” Waymo co-CEO Dmitri Dolgov said in a briefing with reporters.

    “Freeway driving is one of those things that’s very easy to learn but very hard to master when we’re talking about full autonomy without a human driver as a backup, and at scale. So, it took time to do it properly,” he said.

    Waymo, a spinoff of Google, appears to be the first company to offer fully autonomous freeway rides, without a human specialist in the car, to fare-paying riders in the United States, company spokesperson Sandy Karp said.

    Wendy Ju, an associate professor of information science and design tech at Cornell University, said that freeways are a more controlled environment in some respects — fewer pedestrians, for example — but also riskier in other ways than city streets.

    “The higher speed does pose a much higher risk,” she said. “In order to predict what’s going to happen 10 seconds from now, the car has to sense what’s happening much farther down the road.”

    Ju, who has worked as a consultant in the past for autonomous vehicle companies but not for Waymo, said she has “guarded optimism” about the safety of the company’s technology.

    In a 40-minute test ride with an NBC News reporter last week, a Waymo robotaxi traveled up and down freeways in Northern California without incident: merging on and off, obeying the speed limit, following at a safe distance and handling congestion slowdowns. At one point, it avoided a human driver who tried to cross a solid white line at an exit ramp.

    The competition to deliver robotaxi services is heating up. This summer, Tesla began offering rides in Austin and in the San Francisco Bay Area with a prototype of its self-driving software. And although Tesla still has employees in each of its cars, CEO Elon Musk has said he plans to offer a rider-only service soon — something Waymo did in 2019.

    Zoox, a self-driving subsidiary of Amazon, has a rider-only service in Las Vegas that serves a set of fixed pick-up and drop-off locations, with plans to expand. And several Chinese tech companies are racing ahead with robotaxi projects of their own.

    Waymo’s decision to start using freeways coincides with major expansion plans. The company has announced plans to more than double the number of cities it operates in, with some cold-weather cities, such as Denver and Detroit, on its list. The company said Wednesday it would begin curbside service at San Jose’s airport, the second major airport to accept Waymo after Phoenix. The company is preparing to add a new van to its fleet called the Zeekr RT to supplement the Jaguars that it uses. And earlier this year, Waymo signed a partnership with Toyota to explore putting Waymo’s technology into personally owned vehicles.

    Robotaxi services such as Waymo’s and Tesla’s work much like ridehailing from Lyft or Uber, with customers ordering a ride on a smartphone app by entering a destination and accepting a fare determined up front. But instead of humans behind the wheel, software generally drives the vehicles aided by cameras and, in the case of Waymo, other sensors such as lidar.

    But safety concerns remain paramount. Cruise, a former subsidiary of General Motors, has stood as a cautionary tale since 2023 when California revoked its permits to operate a fleet of robotaxis, following a crash in San Francisco in which one of Cruise’s cars dragged a pedestrian for 20 feet while she was pinned underneath the vehicle. A Waymo recently struck and killed a cat in San Francisco, and its vehicles have sometimes been sitting ducks for arson or vandalism.

    Waymo has not had a human fatality, and in July, the company said it had passed more than 100 million miles without a human behind the wheel.

    Srikanth Saripalli, the director of the Center for Autonomous Vehicles and Sensor Systems at Texas A&M University, said he thinks Waymo’s technology is as good as a human driver and he praised the company’s safety record. But he said Waymo still needs to prove that it can safely handle situations outside California and the Sun Belt.

    “Their safety record among all autonomous companies is amazing, but when you compare them to humans, they’ve been very careful about the kind of cities they want to drive in,” he said.

    “In Phoenix, the roads are all perpendicular, the roads are nice, the weather is nice, and it still took them almost a decade to get to a freeway,” he said. He has worked as an industry consultant but not for Waymo.

    About 18% of all traffic fatalities occur on interstate highways or other freeways and expressways, according to data compiled by federal safety regulators.

    To tackle highways, Waymo said it had studied hazards such as aggressive cut-ins, construction on shoulders, hydroplaning and high-speed collisions. It said it has been giving freeway rides to employees and their guests for more than a year. And even now, the company said it would expand its use of freeways gradually as it watches for how the vehicles respond, rather than making it available to all of its customers at once.

    The company said its robotaxis would stick to the speed limits on freeways, as they do city streets, even if human drivers around a vehicle are breaking the speed limit.

    “The Waymo driver goes up to the posted speed limit. So, for example, if the speed limit is 65, that’s the maximum speed limit, and it does not exceed it, unless in extraordinary circumstances,” said Jacopo Sannazzaro, a product manager at Waymo.

    Freeway capability is an important part of a car service, especially in cities such as Los Angeles and Phoenix, where it’s common for daily car trips to include at least some time on an interstate. Sticking to local streets often means a longer ride.

    And while some traffic regulators and city-dwelling critics have braced for the possibility that robotaxis will add to traffic congestion, Waymo said it believes those concerns are unfounded.

    “We do not expect Waymo to make congestion worse on the freeways,” said Pablo Abad, a Waymo product manager. He said the company had “not seen any impact on the congestion in the service areas where we operate.”

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  • Starbucks’ staff strikes could undermine its turnaround plans

    Starbucks’ staff strikes could undermine its turnaround plans

    Danielle Kaye,Business reporter and

    Natalie Sherman,Business reporter

    Reuters A young female union leader in a black and red woollen hat is standing among other picketers outside a Starbucks. Some of the other picketers in the background are holding signs whose message is not visible in the image. The female union member in the foreground is holding a megaphone as if she is about to start speaking into it.Reuters

    Starbucks workers attend a rally as they go on a one-day strike outside a store in Buffalo, New York, US, November 17, 2022.

    Starbucks has been working hard to bring back customers, promising faster service and a return its coffeehouse roots, with ceramic mugs and hand-written notes.

    But though sales show signs of perking up, the company is still wrestling with a years-long labour fight that threatens to hamper its turnaround.

    Picket lines could greet customers collecting their morning latte at some US stores on Thursday, as the company faces another strike by unionised baristas, calling for better pay and increased staffing.

    The walkout, expected to affect stores in at least 25 cities, is the third major strike to hit the company in the US since the union, Starbucks Workers United, launched four years ago.

    Baristas and their union say the new turnaround policies, have only added to their workload.

    “Every single day at this company, as of recently, has been very, very difficult to be a barista,” said Michelle Eisen, a spokesperson for the union, which says it represents workers at more than 600 stores in the US.

    “You should not be evolving to the point of running your workers to the ground,” said Eisen, who worked as a barista for 15 years before leaving Starbucks this May.

    Starbucks says it does not expect the strike to disrupt operations at the “vast majority” of its more than 10,000 company-operated stores in the US. During previous coordinated strikes, fewer than 1% of stores participated, the company said, adding that it expected the same turnout this time.

    But the action, timed to coincide with Starbucks’ Red Cup day, a major holiday sales event, risks returning unwanted scrutiny to the company at a delicate moment.

    Getty Images People use laptops inside of a Starbucks on January 14, 2025 in New York City.Getty Images

    In recent years the brand has faced consumer boycotts, a wave of new competitors and a customer backlash over high prices, as well as turmoil in its leadership ranks.

    The arrival last year of new chief executive Brian Niccol, a veteran of successful turnarounds at Chipotle and Taco Bell, raised hopes he could do the same for Starbucks. Investors sent the chain’s shares up 24%.

    He quickly embarked on changes, part of what he called his “Back to Starbucks” strategy. He banned non-customers from bathrooms, enforced a stricter dress code for staff and re-introduced comfy seating that he said would help restore the chain’s appeal.

    At the same time, Starbucks has outlined plans to invest more than $500m to improve coffeehouse staffing and training.

    ‘Building momentum’

    Progress has been slow. Last month, Starbucks reported 1% growth in sales at global stores open at least one year – its first quarterly increase in almost two years. But in the US, sales were flat.

    “We have more work to do, but we’re building momentum,” Mr Niccol said on a recent call with analysts.

    But the new strategy has been accompanied by hundreds of store closures, thousands of layoffs and the sale of a 60% stake in its China business, and labour tensions have continued to fester.

    Starbucks Workers United leaders say relations improved last year, but that contract discussions stalled when Mr Niccol – who was in charge of Chipotle when it faced complaints of labour rights violations – took the helm of the company last September.

    Even after the two sides agreed to bring in a mediator in January, they remained at odds over pay, staffing and hundreds of unresolved charges of unfair labour practice.

    Getty Images Starbucks CEO Brian Niccol with a sweater with a popped collar and blue striped button up shirt on May 28, 2025 in Dublin, Ohio.Getty Images

    A union spokesperson said Starbucks has offered no pay raises in the first year of a contract, then 2% in the years following, which he said fails to account for inflation and the cost of healthcare. Baristas overwhelmingly voted down the contract offer in April.

    The company, on the other hand, blames the union for stalled talks. The union’s demands for pay increases would “significantly affect store operations and customer experience”, Sara Kelly, the company’s chief partner officer, said in a statement last week.

    “When they’re ready to come back, we’re ready to talk,” Jaci Anderson, a spokesperson for Starbucks, said in a statement.

    “Any agreement needs to reflect the reality that Starbucks already offers the best job in retail,” she added, pointing to low staff turnover rates, and pay and benefits, that the company says add up to an average hourly wage of $30.

    Pressure on the brand

    Unionised coffeeshops account for only about 5% of all Starbucks stores that are directly owned by the corporation in the US, but union organisers say they have added roughly 100 more stores over the last 12 months.

    This continued stand-off could pose both an operational and a reputational risk for the firm, say analysts.

    The brand had already shown signs of being under pressure, said Laurence Newell, managing director in the Americas for Brand Finance, a consultancy that tracks brand strength. Starbucks fell to 45th place in its 2025 annual ranking – its lowest level since 2016 – driven in part by a decline in its reputation among customers.

    “Happy customers have to come from happy employees,” said Stephan Meier, a professor of business strategy at Columbia Business School. “You can’t do that top down.”

    This week, more than 80 Democrats in the House and Senate sent letters to Mr Niccol, accusing Starbucks of “union-busting” and urging the company to bargain in good faith.

    Joe Pine, management adviser and co-author of the “Experience Economy”, said Mr Niccol had a lot on his plate, but he was “surprised” that he had allowed the issue to remain unresolved.

    “This would seem to be one of the first things you need to do: you need to have your people on board,” he said.

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