Coffee chain to offer beanless espresso as sustainable option
Stocks drop sharply, with 3 major indexes down more than 1%
U.S. stocks sold off on Friday, with all three major indexes falling more than 1%, and registered losses on the week.
The S&P 500 index notched its biggest weekly percentage loss since January, while the Dow Jones Industrial Average’s weekly loss was its steepest since March 2023.
Results from a trio of big banks marked the unofficial launch of firstquarter earnings season.
JPMorgan Chase & Co., the biggest U.S. bank by assets, posted a 6% profit increase, but its net interest income forecast fell short of expectations. Its shares slid 6.5%.
Wells Fargo & Co.’s stock inched lower after profits fell 7% as net interest income dropped on weak borrowing demand.
Citigroup posted a loss after spending on employee severance and deposit insurance. Its stock dipped 1.7%.
The Dow Jones Industrial Average fell 475.84 points, or 1.24%, to 37,983.24. The S&P 500 lost 75.65 points, or 1.46%, at 5,123.41. The Nasdaq Composite dropped 267.10 points, or 1.62%, to 16,175.09.
Roku says over 500,000 accounts impacted in cyberattack
Streaming service provider Roku said on Friday it identified a second cyberattack that impacted about 576,000 additional accounts while investigating a breach that affected 15,000 user accounts earlier this year.
The company said the hackers did not gain access to any sensitive information such as full credit card numbers or other payment details.
However, the company said it identified fewer than 400 cases where the information was used to make unauthorized purchases of streaming service subscriptions and hardware products using the payment method stored in the accounts.
The company said it would refund or reverse charges for accounts where it has determined unauthorized purchases have been made.
Roku pinned the unauthorized access to “credential stuffing,” where users may have used the same credentials across different platforms.
Meanwhile, the company has enabled two-factor authentication for all the accounts to beef up security controls.
Delta Airlines launching new boarding process in May
For all the loyal Delta Airlines customers and frequent travelers out there, it’s time to say goodbye to the boarding process you’ve likely gotten pretty familiar with.
The airline is updating the boarding process for flyers, getting rid of its boarding categories like Diamond Medallions, Delta Premium Select and Sky Priority. Instead, the categories will go by zones, but the order of priority will remain the same, with the cheapest tickets boarding last.
Beginning in May, Delta will introduce eight zones, starting with “preboarding” and “first-class” as zone one. The “main cabin” groups are zones five to seven, with “basic economy” as zone eight.
According to a Delta article, updated Tuesday, the change intends to limit confusion. “Starting May 1, Delta will introduce numbered boarding zones for all flights to provide customers with more clarity about boarding sequence. Delta will still offer preboard opportunities for customers who need extra time or assistance, followed by active-duty military, then Delta 360 Members.”
US Steel shareholders approve buyout by Nippon Steel
U.S. Steel shareholders on Friday approved its proposed $14.9 billion acquisition by Japan’s Nippon Steel, taking the merger one step closer to completion even as political opposition to the deal mounts.
U.S. Steel said that over 98% of the votes were in favor of the deal under which Nippon will pay $55 per share, an amount that represented a hefty premium when the takeover was announced in December.
Since then, however, several U.S. lawmakers have come out in opposition to the deal, citing national security concerns. President Joe Biden has said U.S. Steel must remain a domestically owned American firm.
The deal has also drawn strong criticism from the United Steelworkers labor union, which is worried about potential job losses.
Regulators are also scrutinizing the deal. The Committee on Foreign Investment in the United States, a powerful panel that reviews foreign investments in U.S. companies, has met with the parties to discuss the deal, Reuters has reported.
The U.S. Justice Department has opened an in-depth antitrust investigation into the takeover, Politico reported on Wednesday.
Nippon has pledged no job cuts as a result of the deal, to honor all agreements between the union and U.S. Steel and to move its own U.S. headquarters to Pittsburgh where U.S. Steel is based.
Hess signals Exxon arbitration could push a sale into 2025
An Exxon Mobil arbitration case that could block the sale of Hess Corp. to
Chevron could drag on until year’s end, Hess said in a U.S. securities filing on Friday.
The filing signals any closing of its $53 billion sale to Chevron could fall into next year, at least six months later than a prior goal of mid-2024.
Exxon and CNOOC Ltd. filed cases before the International Chamber of Commerce last month, seeking to claim a right to a first refusal over any sale of Hess’ 30% stake in Guyana’s giant Stabroek offshore oil block.
Hess, Exxon and CNOOC are the three members of a consortium developing the oil finds.
Exxon claims the right to first refusal is part of the consortium’s operating agreement, while Hess and Chevron have said they believe the rights do not apply.
Hess said in its filing it seeks to have the merits of the arbitration heard by the third quarter of 2024 and complete the arbitration by the end of the year.
U.S. coffee chain Bluestone Lane in August will start selling an espresso coffee made from farm foods such as date seeds, guava and sunflower, seen by some as a more sustainable option than coffee beans.
The beanless coffee, to be sold in all 58 of Bluestone’s U.S. stores, will be supplied by Seattle-based startup Atomo Coffee, which said it has replicated the molecular structure of conventional coffee using raw materials that otherwise would go to waste. The company said it wants to offer a more sustainable alternative to coffee.
With concerns growing about climate change, there has been more scrutiny around the carbon footprint of agriculture. Coffee farmers are now using regenerative techniques to reduce or even eliminate carbon emissions. Coffee trees, like other plants, absorb carbon dioxide from the atmosphere, but chemicals such as nitrogen fertilizers are heavy on emissions.
“This presents an opportunity for our customers to enjoy an innovative coffee option that maintains our high standards for quality and taste while aligning with our commitment to environmental stewardship,” said Nicholas Stone, CEO of Bluestone Lane, in a statement.