6 Most Important Things in Business Today
Alphabet Inc.’s (NASDAQ: GOOGL) Google fired the employee who wrote an anti-diversity memo. The document was widely circulated in by the press.
Uber’s chairman wrote a note to the company’s staff saying the former CEO would not return. According to The Wall Street Journal:
Uber Technologies Inc. won’t be bringing co-founder Travis Kalanick back as chief executive, the company’s chairman told employees in an attempt to quell reports the co-founder was attempting a comeback.
“Travis is not returning as CEO,” Garrett Camp, himself a co-founder, wrote Monday in a staff email reviewed by The Wall Street Journal. “We are committed to hiring a new world-class CEO to lead Uber.”
In his note, Mr. Camp said the subject of Mr. Kalanick returning as CEO came up during a product leadership meeting last week and he wanted to tamp down the speculation.
In an attempt to increase the share price of Automatic Data Processing Inc. (NASDAQ: ADP), Pershing Square founder Bill Ackman nominated three members to its board, including himself. Pershing has taken a major position in ADP stock.
Tesla Inc. (NASDAQ: TSLA) will raise $1.5 billion in debt as it expands its production in anticipation of huge demand for its new, inexpensive, Model 3.
U.S. credit card debt has moved above the level set before the financial crisis. According to Bloomberg:
Outstanding card loans reached $1.02 trillion in June, data from the Federal Reserve show, as lenders including Citigroup Inc. and JPMorgan Chase & Co. compete to sign up cardholders who may carry balances — a relatively lucrative business in a prolonged period of low interest rates.
The bet is that this time it won’t end so badly. In 2008, a drop in home prices spiraled into a global financial meltdown, and after the jobless rate surged toward 10 percent, banks wrote off more than $100 billion in credit-card loans over the next two years.
Moody’s expressed concern about banks in Qatar as the dispute between the country and its neighbors worsened. Moody’s analysts wrote:
Moody’s Investors Service has changed the outlook on Qatar’s banking system to negative from stable due to the weakening operating conditions and continued funding pressures facing Qatari banks. The outlook also captures the potential weakening capacity of the Qatar government to support the country’s banks. The outlook expresses Moody’s expectation of how bank creditworthiness will evolve in Qatar over the next 12-18 months.