Business News

Capital One to buy Discover for $35 billion in deal that combines major US credit card companies

NEW YORK (AP) — Capital One Financial is buying Discover Financial Services for $35 billion, in a deal that would bring together two of the nation’s biggest lenders and credit card issuers. Discover Financial shareholders will receive Capital One shares valued at nearly $140, according to a news release issued by the companies Monday. Discover shares closed Friday trading at $110.49. Virginia-based Capital One was the 12th largest U.S. bank as of the third quarter. Illinois-based Discover was the 33rd biggest. Both banks have benefitted from Americans increasingly using their credit cards, but have also needed to set aside more money to guard against defaults.

Stock market today: Wall Street limps toward losses to begin a holiday-shortened trading week

Wall Street drifted lower before the opening of a holiday-shortened week with some high-profile retailers reporting their most recent quarterly results. Futures for the Dow Jones Industrial Average and the S&P 500 each slipped 0.3% before the bell Tuesday. Walmart posted another strong quarter of sales and profit, sending its shares up 2.7% before markets opened. Hardware and building supply retailer Home Depot slipped about 2% after it gave a lukewarm forecast for the year as high interest rates have cooled the homebuying market. Wall Street trading was closed Monday in the United States for President’s Day.

China cuts key interest rate in latest move to boost its ailing property sector

BANGKOK (AP) — China’s central bank has cut its five-year loan prime rate while leaving its one-year rate unchanged. It was the first time the five-year rate, which is a benchmark for mortgage rates, was cut since May. The five year rate was lowered by 0.25 basis points to 3.95% while the one-year rate remains at 3.45%. There was scant immediate reaction in markets to the decision, with the Shanghai Composite index remaining nearly unchanged by midday Tuesday. As markets reopened after a weeklong Lunar New Year holiday break, state-owned banks announced a flurry of plans for billions of dollars worth of loans to support developers struggling after a crackdown on excessive borrowing.

US rivalry with China expands to biotech. Lawmakers see a failure to compete and want to act

WASHINGTON (AP) — U.S. lawmakers are raising alarms about what they see as America’s failure to compete with China in biotechnology. They’re warning of risks to U.S. national security and commercial interests. But as the two countries’ rivalry expands into the biotech industry, some say that shutting out Chinese companies would only hurt the United States. Biotechnology promises to revolutionize everyday life, with scientists and researchers using it to make rapid advances in medical treatment, genetic engineering in agriculture and novel biomaterials. Because of its potential, it has caught the attention of both the Chinese and U.S. governments.

Walmart posts another strong quarter, but shoppers are spending less per trip as inflation subsides

NEW YORK (AP) — Walmart reported another quarter of stellar results, ending the year on a high note as its low prices attract shoppers looking for deals in a an economically challenging environment for many. But shoppers are spending less per trip as prices are abating. The company delivered an earnings outlook that came under analysts’ expectations. Shares still rose more than 2% before the opening bell Tuesday. Walmart also confirmed that it would buy smart TV maker Vizio for $2.3 billion. Walmart earned $5.49 billion, or $2.03 per share in the quarter ended Jan. 31. That compares with $6.27 billion, or $2.32 per share in the year ago quarter. Adjusted earnings was $1.80 per share.

Some video game actors are letting AI clone their voices. They just don’t want it to replace them

Video game studios pay professional actors to voice the soldiers, goblins, elves and aliens that populate virtual worlds. Some are also starting to use artificial intelligence to generate synthetic voice clones that can save money or bring more characters to life. The arrival of increasingly realistic AI-generated voices is forcing actors to navigate an emerging technology that could threaten their careers or bring new opportunities. Some actors — with cautious support from Hollywood’s actor union — have been willing to give it a try if they’re fairly compensated and their voices aren’t misused.

Home Depot’s strong fourth quarter overshadowed by weakening sales and expectations for 2024

Home Depot’s sales continued to weaken in its fiscal fourth quarter, as the country’s largest home improvement retailer deals with Americans who remain concerned about high mortgage rates and inflation. While its quarterly results topped analysts’ expectations, it provided a soft sales forecast for fiscal 2024. Shares slipped before the market open on Tuesday.

Virginia bank delays plans to auction land at resort owned by West Virginia governor’s family

CHARLESTON, W.Va. (AP) — A Virginia bank says it will delay plans to auction off land at West Virginia Gov. Jim Justice’s posh resort in an attempt to recover more than $300 million on defaulted business loans by the governor’s family. The Charleston Gazette-Mail reports that in a court filing Friday, Carter Bank & Trust of Martinsville, Virginia, said it will reschedule the March 5 auction to a later date. The bank also asked that a hearing set for Tuesday be postponed on a request by the Greenbrier Sporting Club in White Sulphur Springs for a preliminary injunction against the bank. The sporting club says the auction would jeopardize thousands of jobs.

Former Bank of China chairman indicted for bribery in nation’s long-running anticorruption drive

BEIJING (AP) — The former chairman of the Bank of China has been indicted on bribery charges, adding to a long list of business and government officials who have been brought down by Chinese leader Xi Jinping’s yearslong anticorruption drive. Prosecutors said Monday that Liu Liange has been accused of taking advantage of his positions at the Bank of China and previously as president of the Export-Import Bank of China. The official Xinhua News Agency said he was charged with helping others with loans and personnel appointments in return for property and cash and with making loans in violation of regulations, causing significant losses.

Biden admin providing $1.5 billion to GlobalFoundries to make computer chips in New York and Vermont

WASHINGTON (AP) — The Biden administration says that the government would provide $1.5 billion to the computer chip company GlobalFoundries to expand its domestic production in New York and Vermont. The announcement is the third award of financial support for a semiconductor company under the 2022 CHIPS and Science Act. The law enables the government to invest more than $52 billion to revitalize the manufacturing of computer chips in the United States as well as advance research and development. GlobalFoundries intends to use the funding to help pay for the construction of a new advanced chip factory in Malta, New York, increase production at its existing plant in Malta, and revitalize its plant in Burlington, Vermont.