MEDIA
Paramount begins layoffs
Paramount, the parent company of CBS, Nickelodeon, and MTV, told its employees Tuesday it was beginning a series of long-scheduled job cuts that would winnow its staff by about 15 percent in the United States. The company’s three co-CEOs said in an internal note that the cuts — which would be “incredibly hard” — were necessitated by shifts in the entertainment industry. The layoffs, which will affect thousands of employees, are the latest in a series of cutbacks by major media players. Warner Bros. Discovery, the parent of CNN, TNT, and HBO, has slashed its staff routinely in recent years as it pays down billions in debt. Disney laid off more than 100 employees in its TV division last month. — NEW YORK TIMES
ANTITRUST
US said to consider a breakup of Google to address search monopoly
Google was found last week to have violated antitrust law by illegally maintaining a monopoly in internet search. Now discussions over how to fix those violations have begun. Justice Department officials are considering what remedies to ask a federal judge to order against the search giant, said three people with knowledge of the deliberations involving the agency and state attorneys general who helped to bring the case. They are discussing various proposals, including breaking off parts of Google, such as its Chrome browser or Android smartphone operating system, two of the people said. Other scenarios under consideration include forcing Google to make its data available to rivals, or mandating that it abandon deals that made its search engine the default option on devices like the iPhone, said the people, who declined to be identified because the process is confidential. The government is meeting with other companies and experts to discuss their proposals for limiting Google’s power, the people said. The deliberations are in their early stages. Judge Amit P. Mehta of US District Court for the District of Columbia has asked the Justice Department and Google to come up with a process for determining a fix in the case by Sept. 4. He has scheduled a hearing on Sept. 6 to discuss next steps. — NEW YORK TIMES
POLITICS
UAW blasts Trump for praising Musk’s anti-union stance
The United Auto Workers pounced on former president Donald Trump complimenting the tactics Elon Musk takes with employees of his companies, turning the remarks into messaging against the Republican nominee that the union will aim at a key constituency of voters. “I mean, I look at what you do,” Trump told Musk late Monday on X, the social media service he owns. “You walk in, you say, ‘You want to quit?’ They go on strike.” “They go on strike and you say, ‘That’s OK, you’re all gone,’” Trump said. The UAW cut a video of Trump praising Musk, the world’s wealthiest man, and posted the clip on social media sites, writing to its more than 125,000 followers on X: “He’s for the billionaires. Not for you. Donald Trump is a scab.” Trump said during the exchange that he wasn’t going to mention the name of the Musk-led company he was referring to. The billionaire has threatened staff at Tesla against unionizing, sued the National Labor Relations Board over a complaint the agency filed against SpaceX, and carried out mass firings at Twitter, now X, after acquiring the social media company in late 2022. The UAW endorsed Vice President Kamala Harris late last month ahead of a rally in Detroit, where the Democratic nominee shared the stage with Shawn Fain, the union’s president. The UAW has more than 400,000 active and retired members in Michigan and represents thousands of additional workers throughout battleground states in the upper Midwest. Pennsylvania, Wisconsin, and Michigan are expected to be among the most important swing states that will determine the winner of the November election. — BLOOMBERG NEWS
RETAIL
Home Depot sales rise due to acquisition of contractor supplier
Home Depot’s second-quarter sales rose slightly as the nation’s biggest home improvement retailer benefited from an $18 billion acquisition this spring, but customers continued to rein in spending because of broadly higher costs and elevated interest rates. Sales edged up to $43.18 billion, from $42.92 billion, beating the $42.57 billion that Wall Street had expected, accordingto a poll by Zacks Investment Research. The quarterly performance was an improvement thanks in part to the acquisition of contract supplier SRS Distribution, which contributed $1.3 billion to Home Depot’s sales for the quarter. SRS provides materials for professionals like roofers, landscapers, and pool contractors. — ASSOCIATED PRESS
AUTOMOTIVE
GM cutting back in China
General Motors has been laying off staff in China and will soon meet with local partner SAIC to plan a larger structural overhaul of its operations there, a recognition the Detroit automaker is unlikely to see its sales return to 2017 peak levels. GM is cutting staff in Chinese market-related departments, including research and development, according to people familiar with the matter. In the coming weeks, GM and SAIC will discuss possible capacity cuts as part of a strategic redirection for American nameplates sold in China. The reassessment represents a major shift in strategy for GM, which earned billions of dollars in China as recently as 2018. The automaker is pulling back as many foreign brands are struggling with a profusion of local competitors in the world’s largest car market, which is now facing massive overcapacity. — BLOOMBERG NEWS
DISEASE
Companies tied to COVID get a boost as cases rise in Asia
Shares of COVID test kit and drug makers are in the spotlight in Asia, posting strong gains in recent days following a surge of cases. Among the top performers is Chinese COVID test maker Daan Gene Co., which has jumped 17 percent this week. In Japan, drug maker Daiichi Sankyo Co. rose as much as 5.6 percent, the most in about a week, while South Korea’s Shin Poong Pharmaceutical Co. pared gains after a five-session 71 percent rally. These companies have reemerged as investor darlings amid a spike in COVID cases in the three eastern Asian countries since last month, as high temperatures and the Summer Olympics in Paris led to more indoor gatherings. — BLOOMBERG NEWS
FINANCIAL
Market volatility hasn’t deterred investors
The volatility in global financial markets hasn’t derailed investor optimism around US technology behemoths or expectations of a soft economic landing, according to a global survey by Bank of America. While the poll, conducted from Aug. 2 to Aug. 8 and covering the height of last week’s turmoil, showed a defensive rotation into bonds and cash and out of equities, long bets on the Magnificent Seven tech stocks remained the most crowded trade — albeit less so after the selloff. Large-cap growth stocks — dominated by tech — were still viewed as the likely leaders of a new US equity bull market, although conviction eased to 36 percent from 47 percent in July. — BLOOMBERG NEWS
AVIATION
Beleaguered Boeing gets a bit of good news
Boeing’s commercial aircraft deliveries are showing signs of stabilizing, with deliveries in July mirroring those in the same month a year earlier. The planemaker delivered 43 planes in July, one less than the total in June and the same as in July 2023, according to Boeing’s monthly orders and deliveries release. Of the total, Boeing delivered 32 of its workhorse 737 family models, as well as six twin-aisle 787 Dreamliners. Still, handovers a year earlier were unusually low amid a series of issues including a supplier strike and logistical disruptions. Rival Airbus delivered 77 jets in July, it said last week. — BLOOMBERG NEWS