Sergio Marchionne stepping down as CEO of Fiat Chrysler

Fiat Chrysler’s on Saturday announced the sudden resignation of longtime CEO Sergio Marchionne, who is stepping down due to complications from surgery. Replacing him will be the be the former boss of FCA’s Ram and Jeep brands, Mike Manley. The company said in a statement that « unexpected complications arose while Mr. Marchionne was recovering from surgery and that these have worsened significantly in recent hours. » « As a consequence, Mr. Marchionne will be unable to return to work, » the statement said. –This is a developing story Source:…

A transatlantic trade war is brewing. Can it be stopped?

How to negotiate a trade deal Europe is hoping crunch talks with the United States next week will head off the threat of car tariffs and a transatlantic trade war. But expectations for the meeting between President Donald Trump and European Commission President Jean-Claude Juncker could hardly be lower. « Anything short of an outright disaster would be considered a success, » Judith Lee, an international trade lawyer at Gibson Dunn, said of the talks scheduled for Wednesday in Washington. The United States has put tariffs on aluminum and steel…

Facebook’s rhetoric on misinformation doesn’t match its actions

Should these InfoWars videos be allowed on Facebook? Facebook has said it finds claims that survivors of a violent tragedy are actually actors duping the public to be « abhorrent. » The company has said that content with such claims violates its community standards, and has pledged to remove such posts. But when contacted by CNN over the last week about two InfoWars videos on Facebook which strongly suggest survivors of the Parkland shooting were acting, the company chose to leave the videos online. The videos feature InfoWars founder Alex…

The classic car industry could be hurt by tariffs, too

Bentley ‘Le Mans Sport ‘ was a Jazz Age speed demon Higher tariffs on cars and parts could sideswipe the collector car industry. More than 20 million cars are classified as « collector cars » in the United States, according to Hagerty Insurance, a company that insures them. More than $1.5 billion worth of collectable vehicles are sold at auction each year, but that represents only a tiny slice of the trade. About 95% of collector car sales are not at auctions. The cars themselves cover a vast price range,…

Elon Musk crossed a line, analyst says

Musk’s tweets distract from his mission, says tech analyst The world needs to see the real Elon Musk. « The public perception of Elon Musk more recently is he is thin-skinned and short-tempered, » said tech analyst Gene Munster in an interview with Christine Romans on CNN on Friday. Munster penned an open letter to Musk asking him to take a break from Twitter. « That’s not who Elon Musk is. » Munster told Romans. « It’s important that the world sees what we think is the real Elon Musk.…

Power outage at GE

GE changed our lives. Why was it kicked out of the Dow? General Electric is transforming itself for the future, but the iconic company is still dogged by major problems from the past in its power division. Profit at GE Power plunged 58% during the second quarter as orders for gas turbines tumbled, GE (GE) said on Friday. The slump at GE Power, the company’s largest division by revenue, underscores the challenges facing GE even as the company breaks itself apart by selling off its rail, health care, light bulb…

Trump escalates his war with the Fed

President Donald Trump has escalated his highly unusual battle with the Federal Reserve. He tweeted early Friday that higher interest rates are taking away America’s competitive edge with China. The Federal Reserve was constructed to be an independent financial institution, free from the whims of politics. The Fed is raising rates to keep inflation in check and to prevent the economy from overheating. Higher rates, however, strengthen the dollar against the world’s currencies, which makes the United States a more expensive — and potentially less attractive — place to invest.…

Microsoft posts its first $100 billion sales year, thanks to the cloud

Microsoft unveils Surface Go, its cheapest tablet yet Microsoft’s bet on the cloud helped propel the company to its first $100 billion sales year. Microsoft (MSFT) said Thursday that it posted $110 billion in sales for the 2018 fiscal year ending in June, a 14% increase over the prior year. CEO Satya Nadella credited « early investments » in cloud services for the results. The company’s commercial cloud business hit $6.9 billion in the last quarter, jumping 53% from the same period last year. That helped push Microsoft’s overall quarterly…

Exclusive: Randi Zuckerberg responds to her brother’s Holocaust comments

Listen: Zuckerberg on Holocaust deniers Mark Zuckerberg’s sister Randi, weighing in on her brother’s controversial comments about Holocaust deniers, forcefully denounced such people and « their hateful, disgusting rhetoric. » But she said banning them from social media « will not make them go away, » and she emphasized the importance of a healthy debate over the role tech companies should play in policing content. Randi Zuckerberg, who has long worked with many Jewish community organizations, spoke out Thursday in a statement she provided exclusively to CNNMoney. Her comments came…

Microsoft’s cloud bet pushes annual sales over $100 billion

Microsoft unveils Surface Go, its cheapest tablet yet Microsoft’s bet on the cloud helped propel the company to its first $100 billion sales year. Microsoft (MSFT) said Thursday that it posted $110 billion in sales for the 2018 fiscal year ending in June, a 14% increase over the prior year. CEO Satya Nadella credited « early investments » in cloud services for the results. The company’s commercial cloud business hit $6.9 billion in the last quarter, jumping 53% from the same period last year. That helped push Microsoft’s overall quarterly…

FCC calls out ‘lack of candor’ in Sinclair-Tribune deal

The Federal Communications Commission on Thursday formally referred Sinclair Broadcast Group’s proposed acquisition of Tribune Media to an administrative judge hearing, and called into question whether some of its divestments in the deal were a « sham. » Sinclair has been waiting on FCC approval to complete its $3.9 billion purchase of Tribune, further increasing Sinclair’s reach across the country. Citing the sale of three stations Sinclair had planned in order to fall within government ownership caps, the FCC in its hearing order said, « The record raises significant questions…

Merck pledges to cut prices for seven drugs

Here’s why drug prices are so high Merck joined fellow pharmaceutical giants Novartis and Pfizer on Thursday in pledging to limit drug price increases in the United States. Merck said it’s cutting the price of Zepatier, a drug that treats hepatits C, by 60% and reducing the price of six other medications by 10% each. The company also said it will not raise the average price of the drugs it sells beyond the annual rate of inflation in the United States and will continue to « evaluate our portfolio to…

Another Wells Fargo mess: Pet insurance ripoff

These companies are trying to win back your trust Not even pet insurance is safe from Wells Fargo’s scandals. Wells Fargo (WFC) has begun refunding customer who were harmed when the bank charged them for products including pet insurance, legal services, home warranties and other forms of insurance, a person familiar with the matter told CNNMoney on Thursday. An ongoing review at Wells Fargo has found billing and telemarketing problems with so-called « add-on » products that are added to customer accounts, the source said. Hundreds of thousands of Wells…

Trump rips Fed for raising interest rates

Fed Chair: The economy is doing very well President Donald Trump said on Thursday that he’s « not thrilled » with the Federal Reserve for raising interest rates. Breaking with tradition to avoid criticizing the Fed, Trump told CNBC he’s worried that the central bank’s policies will interfere with the economic recovery. « I don’t really — I am not happy about it, » Trump said in excerpts released by the network. Even though he’s frustrated, Trump said he’s « letting them do what they feel is best. » He…

How 2006 changed the internet

Kids vs ‘dumbphones’ from the 2000s Programming note: Go back to the decade that’s responsible for your smartphone and social media addictions: ‘The 2000s’ airs Sundays at 9 p.m. ET/PT starting July 8 on CNNTV and CNNgo. During a six-month period in 2006, two pivotal events helped upend the internet as we knew it: Twitter launched in March and Facebook announced News Feed in September. The two services introduced the social media news feed to a mass audience, changing how we engage with friends, consume news and view the world.…

24% of Tesla Model 3 orders have been canceled, analyst says

Analysis: Why it’s time for Tesla to grow up Tesla is finally making enough cars — it just can’t sell enough of them. Cancellations for Model 3 orders have picked up in recent weeks. Refunds now outpace deposits for Tesla’s new mass-market electric car, according to Needham & Co. analyst Rajvindra Gill. In an analyst note delivered to clients Thursday, Gill cited extended wait times for the car, the expiration of a $7,500 tax credit, and the fact that Tesla has not yet made the $35,000 base model of the…

How the NBA Finals and rainy baseball hurt eBay

PayPal: We’re not leaving eBay Kevin Durant, Steph Curry and the rest of the dominant Golden State Warriors team caused a problem for eBay. A stormy start to the baseball season didn’t help either. Ebay owns ticket seller StubHub, and lackluster sales to sporting events and concerts dragged down the company’s second quarter earnings, CEO Devin Wenig said on a call with analysts Wednesday evening. He called it a « tough landscape » for sports. Among the bigger problems: Many early season baseball games rained out, leading to what Wenig…

Comcast drops its $65 billion bid for 21st Century Fox

Disney wins antitrust approval for Fox takeover Disney has won the war for 21st Century Fox. Comcast announced Thursday that it will drop its pursuit of the 21st Century Fox assets that it was fighting over with Disney. Comcast had bid $65 billion for Fox’s movie studio, which is responsible for franchises like « Avatar » and « X-Men, » along with Fox’s regional sports networks and cable channels like FX and National Geographic. Disney’s most recent bid was $71 billion. The battle with Disney isn’t completely over: Comcast said…

It’s a big earnings day. Here are 5 things to know before the bell

Click chart for in-depth premarket data. 1. Big day for earnings: Dozens of big-name companies are reporting quarterly results on Thursday. Blackstone (BX), BNYMelon (BK), Domino’s Pizza (DPZ), Philip Morris International (PM), Scholastic Corp (SCHL) and Union Pacific (UNP) are a handful of the key firms releasing earnings before the open Thursday. Then Microsoft (MSFT), Capitol One (COF), E*Trade (ETFC) and Skechers (SKX) will follow after the close. Unilever (UL) reported its second quarter earnings, but shares were steady in London. 2. Strong dollar, weak pound: The US dollar is…

Tesla’s plan to make cars in China won’t be easy to pull off

Tesla to build factory in China Tesla hopes that making cars in China will help supercharge its sales. That’s easier said than done. The US electric car maker was given the green light this month to build a production center in Shanghai, following years of negotiations with Chinese officials. Once complete, the factory will allow Tesla (TSLA) to build up to 500,000 vehicles a year in the world’s biggest market for automobiles. The first cars should begin rolling off the production line within five years, but Tesla will have to…

Zuckerberg apologizes for Holocaust comments

What should Facebook do about InfoWars? Facebook CEO Mark Zuckerberg tried to clarify his controversial comments on Holocaust deniers Wednesday afternoon, after he was quoted earlier in the day saying some deniers who post on Facebook aren’t « intentionally getting it wrong. » Zuckerberg made his comments during an interview with ReCode’s Kara Swisher, published Wednesday morning. During the interiew, he cited Holocaust denials as an example of controversial misinformation that Facebook would allow to remain on the platform. Facebook has said that it allows conspiracy theories to remain on…

Berkshire just had its best day in nearly 7 years

Buffett not worried about a trade war Big US companies have been binging on their own stock. But Warren Buffett’s Berkshire Hathaway hasn’t been taking part in the bonanza. That soon may change. Berkshire Hathaway (BRKB) announced late Tuesday that the company loosened an old company rule and can now buy back stock whenever Buffett and Berkshire Vice Chairman Charlie Munger « believe that the repurchase price is below Berkshire’s intrinsic value, conservatively determined. » In other words, Buffett and Munger can pretty much decide to buy stock whenever the…

Amazon Prime Day was bigger than Cyber Monday and Black Friday

See Amazon’s new Prime delivery initiative Amazon Prime Day was a massive success. The company says its self-proclaimed holiday of deals was the biggest shopping event in Amazon history. Sales exceeded Cyber Monday, Black Friday and last year’s Prime Day. Prime members bought more than 100 million products, Amazon said Wednesday. The most popular purchases in the United States were Instant Pots, personal water filters and the 23andMe DNA test. Laundry detergent, smartphones, pans, light bulbs, and video games and consoles were big sellers internationally. At Amazon-owned Whole Foods, organic…

Larry Kudlow: No recession in sight

Another strong jobs report. Here’s why unemployment went up Some economists warn that President Donald Trump’s trade war with China and deficit-financed tax cuts will speed the arrival of a recession. But don’t tell that to Larry Kudlow, who is positively euphoric on the economy. Trump’s top economic adviser thinks the recovery from the Great Recession, already the second-longest in history, could keep going until 2024. « It’s possible that a real growth cycle is in front of us for the next four, five or six years, » Kudlow said…

Malta wants to become ‘Blockchain Island’

Are you a blockchain believer? The small European island of Malta is becoming a blockchain hub. Striving to turn the Mediterranean nation into « Blockchain Island, » the government is opening its doors to blockchain and other so-called distributed ledger technologies. These technologies allow transactions to quickly be carried out between people without interference or control by third parties. Blockchain promises to improve security and reduces transaction costs. Malta believes the island can become a haven for cryptocurrencies like Bitcoin — the most well-known application of ledger technologies — but…

Amazon’s stock is at an all-time high. We’re live from NYSE

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc.2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones…

Warren Buffett may soon join the stock buyback party

Buffett not worried about a trade war Big US companies have been binging on their own stock. But Warren Buffett’s Berkshire Hathaway hasn’t been taking part in the bonanza. That soon may change. Berkshire Hathaway (BRKB) announced late Tuesday that the company loosened an old company rule and can now buy back stock whenever Buffett and Berkshire Vice Chairman Charlie Munger « believe that the repurchase price is below Berkshire’s intrinsic value, conservatively determined. » In other words, Buffett and Munger can pretty much decide to buy stock whenever the…

Why Europe’s record fine against Google won’t hurt the tech giant

Google fined $5B for antitrust breach in Europe Europe has imposed a record fine on Google. But it’s probably too little, too late. The €4.34 billion ($5 billion) penalty announced Wednesday by the European Commission is the latest salvo in an extended battle between Google and regulators in Brussels, who have subjected the tech company to three antitrust investigations. The fine may be a record, but it’s one that Google (GOOGL) can absorb without too much pain. And the penalty won’t cause Europeans to fall out of love with Google’s…

Europe hits Google with a record $5 billion fine

Google brings new features to Android, Gmail at developer conference Europe has hit Google with a record $5 billion fine. The company was ordered by the European Commission on Wednesday to pay €4.34 billion ($5 billion) for unfairly pushing its apps on smartphone users and thwarting competitors. « Google has used Android as a vehicle to cement the dominance of its search engine, » Margrethe Vestager, Europe’s top antitrust official, said in a statement. « They have denied European consumers the benefits of effective competition in the important mobile sphere,…

Historic trade deal covers a third of the world’s economy

How to negotiate a trade deal The European Union and Japan signed a huge free trade deal on Tuesday that cuts or eliminates tariffs on nearly all goods. The agreement covers 600 million people and almost a third of the global economy. It’s also a major endorsement of a global trading system that is under increasing threat from protectionism. It will remove tariffs on European exports such as cheese and wine. Japanese automakers and electronics firms will face fewer barriers in the European Union. The dismantling of trade barriers stands…