6 Most Important Things in Business Today
Facebook Inc. (NASDAQ: FB) has started a program to give users more privacy. According to The Wall Street Journal:
In a preview of how Facebook Inc. is changing its privacy policies, the site this week will start asking European users for permission to use their personal data to power features like facial recognition and some forms of targeted advertising.
Even with the updates, opting out of those features will remain more difficult than sharing such information with the social-media giant.
Southwest Airlines Co. (NYSE: LUV) has begun a probe into an accident that killed one person in flight. According to The Wall Street Journal:
Southwest Airlines Co. said it is accelerating inspections of some engines following a fatal failure on a flight between New York and Dallas.
The airline said it expects within 30 days to complete its examination of fan blades on CFM56 engines of the type that broke apart on a Boeing Co. 737-700 on Tuesday. The engine failure forced an emergency landing and caused the first fatality in an accident on a U.S. airline since 2009.
Tesla Inc. (NASDAQ: TSLA) has sped up production of its Model 3. According to Bloomberg:
Tesla Inc. will begin around-the-clock production at its Fremont, California, assembly plant to boost Model 3 output, chief executive officer Elon Musk told employees.
The electric-car maker will try to build 6,000 of the sedans a week by the end of June, Musk wrote in an email Tuesday first obtained by the blog Electrek. A Tesla spokesman declined to comment. The company’s shares rose as much as 2.7 percent in after-hours trading.
Morgan Stanley (NYSE: MS) researchers said the stock market may be in for a shock. According to CNBC:
Investors hoping that tax cuts and aggressive government spending plans will add another leg to the bull market likely are going to be disappointed, Morgan Stanley argues in an analysis that contends the end of big returns is near.
The firm maintains that boosts from fiscal policy are largely priced into the market and unlikely to last much longer.
Starbucks Corp. (NASDAQ: SBUX) will close stores for training after a racial profiling incident. According to CNNMoney:
Starbucks says it will close its 8,000 company-owned stores in the United States for one afternoon to educate employees about racial bias.
The announcement follows an uproar over the arrest of two black men who were waiting for a friend at a Philadelphia Starbucks last week. The store manager called the police.
The racial bias training will be provided on May 29 to about 175,000 workers.
Toys “R” Us turned down an offer to keep some of its operations open. According to CNNMoney:
Toys “R” Us has rejected a bid from the billionaire toymaker behind Bratz dolls and Little Tikes.
Isaac Larian placed a $675 million bid for 200 of the remaining 735 Toys “R” Us locations in the United States, and almost all of more than 80 locations in Canada. Toys “R” Us is still considering other offers, but it’s not clear whether those would keep US stores open.
Sources with knowledge of the matter say the bid was too low.