6 Most Important Things in Business Today
Elon Musk has attacked the U.S. Securities and Exchange Commission (SEC) in a new tweet. According to The Wall Street Journal:
Elon Musk risked reigniting a battle with federal securities regulators on Thursday when he appeared to openly mock the Securities and Exchange Commission only days after the Tesla Inc. chief executive settled fraud charges with the agency.
Seemingly without prompt, Mr. Musk sent a tweet in the early afternoon that suggested the SEC was enriching investors betting against the electric-car maker. “Just want to [say] that the Shortseller Enrichment Commission is doing incredible work,” Mr. Musk tweeted. “And the name change is so on point!”
General Electric Corp. (NYSE: GE) has agreed to a rich pay package for its new CEO. According to The Wall Street Journal:
General Electric Co. has agreed to pay its new chief executive, Larry Culp, as much as $21 million a year for four years—with the potential for hundreds of millions of dollars more depending on GE’s stock performance.
Mr. Culp, a board member who succeeded John Flannery in GE’s top job, signed an agreement with the company that pays him $2.5 million a year in salary and an annual bonus with a target of $3.75 million, the company said in a securities filing after the market closed Thursday.
He will also receive annual equity awards valued at $15 million starting next year, the company said.
Toyota Motor Corp. (NYSE: TM) has announced a huge recall. According to The Wall Street Journal:
Toyota Motor Corp. is recalling 2.4 million vehicles globally to fix a fault in the hybrid system that could cause them to lose power.
The recall mainly affects certain Prius variants produced between October 2008 and November 2014, the auto maker said Friday.
In the U.S., the recall covers more than 800,000 vehicles: the model year 2010-2014 Prius and the larger model year 2012-2014 Prius v. The recall also covers certain hybrid versions of the Auris hatchback, which isn’t sold in the U.S.
The CEO of Snap Inc. (NYSE: SNAP) said he expects the company to make money next year. According to CNBC:
Snap CEO Evan Spiegel outlined the company’s goals for profitability in 2019 and apologized for its redesign in a 15-page memo sent to employees dated Sept. 26, Cheddar reported.
In the memo, Spiegel said that the redesign was “rushed” and outlined the other problems with the app. This led to the company’s first decline in daily users. As he wrote, “The biggest mistake we made with our redesign was compromising our core product value of being the fastest way to communicate.”
He also said that he has a “stretch goal” to break even during the fourth quarter of 2018 and become profitable in 2019.
Senator Bernie Sanders says McDonald’s Corp. (NYSE: MCD) ought to raise worker pay. According to CNN Business:
Amazon? Check. Disney? Check. McDonald’s?
The fast food chain is Senator Bernie Sanders’ next minimum wage target. He wants McDonald’s to give its workers a pay raise to $15 an hour.
In a letter to CEO Steve Easterbrook on Thursday, Sanders demanded McDonald’s boost workers’ paychecks and let workers unionize. Sanders had previously called on Amazon CEO Jeff Bezos to increase the company’s minimum wage, and Amazon followed through this week.
Bond yields hit levels not seen since 2011. According to CNN Business:
The American economy continues to hum along: Consumers and companies are spending, and the job market is solid. Could that be too much of a good thing?
Bond traders seem to think so: The yield on the US 10-year Treasury rose above 3.2% Thursday morning. That’s the highest it’s been since July 2011. On Wednesday, the 10-year yield gained more than on any day since the November 2016 presidential election. The 30-year yield also popped above 3.3%, its highest level since October 2014.