2024-12-06 22:56

Dec 6 (Reuters) - The US watchdog for consumer finance on Friday announced it was ordering federal supervision of Google Payment Corp., the internet giant's (GOOGL.O) , opens new tab payment arm, a decision the company immediately said it was challenging in court. The Consumer Financial Protection Bureau announced the step saying it had determined services offered by Google Payment had posed a risk to consumers. The regulator's step and the subsequent lawsuit marked a government tussle with a Silicon Valley behemoth in the final weeks of President Joe Biden's administration. The regulator's move could be reversed after President-elect Donald Trump returns to the White House in January. Under Biden, the CFPB has been more closely scrutinizing the growing sector of financial services provided by Silicon Valley rather than traditional banks. The agency cited nearly 300 consumer complaints, many of which concerned reports of fraud, scams and unauthorized transactions. It said it did constitute a finding that the company had engaged in wrongdoing. The CFPB order nevertheless said consumer complaints indicated Google Payment had failed to investigate complaints about erroneous transfers, among other potential violations, and that the law allowed for supervision even if Google has discontinued the services in question. In a lawsuit filed after the CFPB announcement, Google Payment Corp. said the regulator had relied on a small number of unsubstantiated complaints concerning a product it no longer offered. "As a matter of common sense, a product that no longer exists is incapable of posing such risk," the company's complaint said. The CFPB declined to comment on the lawsuit. Financial regulators use confidential supervisory exams to spot and correct companies' violations of law. Last month, the CFPB finalized new regulations subjecting tech companies to the same supervision currently faced by banks if those companies offer digital wallets and payment services. The agency has also persisted in rulemaking in the final weeks of Biden's administration despite calls from Republican lawmakers to desist. Sign up here. https://www.reuters.com/technology/us-regulator-places-google-payment-corp-under-supervision-2024-12-06/

2024-12-06 21:57

BUENOS AIRES/ASUNCION, Dec 6 (Reuters) - South America's agricultural sector, a key source of global food, celebrated on Friday as the regional Mercosur bloc and the European Union struck a free trade agreement, though farmers said they wanted to see the small print of the deal. The agreement was reached after 25 years of negotiations, in Uruguay's capital, Montevideo, that were attended by the President of the European Commission, Ursula von der Leyen, and the leaders of Argentina, Uruguay, Paraguay and Brazil, the four member states of the South American bloc. The deal still faces a lengthy process to be ratified and go into effect, which could take years. It could get blocked with France a staunch opponent, in part over fears of increased South American farm goods arriving in Europe. "Any market opening is favorable, I think it's an opportunity, but you have to look at the fine print, what the conditions are," Carlos Castagnani, president of the Argentine Rural Confederations, told Reuters. "We have to ensure that our way of producing is respected." Argentina is the world's top exporter of processed soy, the no. 3 for corn, and a key supplier of wheat and beef. South American farmers and exporters are keen to have greater access to the huge European market. However, fears that environmental clauses will limit trade and opposition from some EU countries to the agreement have dampened expectations. Among the European demands are limits on the use of genetically modified seeds and deforestation, which have been common practices in South America in recent decades. Argentina's grain exporters and processors' chamber CIARA-CEC said that while the agreement was a positive step for the bloc, its real impact would not be immediate. Products such as oil or biodiesel, will only see significant tariff reductions starting in seven to ten years, CIARA-CEC president Gustavo Idigoras told Reuters. Argentina was over a decade ago the world's largest supplier of biodiesel, but was hit badly by European tariffs and other protectionist measures. The agreement is important for South America's producers to stay competitive, with major economies around the world threatening protectionist policies, said Pedro Galli, member of the Rural Association of Paraguay, a key soybean exporter. However, Hector Cristaldo, president of the Union of Production Guilds, the main association of Paraguayan soybean producers, called for calm as the final text gets finalised and emphasized the complexity of the process that awaits the deal. Sign up here. https://www.reuters.com/world/south-american-farmers-hail-mercosur-eu-deal-wary-fine-print-2024-12-06/

2024-12-06 21:45

Dec 6 (Reuters) - Amazon (AMZN.O) , opens new tab customers sued the online retail giant in a new lawsuit that claims it secretly excluded their zip codes from its fast delivery service for Prime members while continuing to charge them for the service. The proposed nationwide class action lawsuit , opens new tab was filed on Thursday in federal court in Seattle by five residents of Washington, D.C., who said Amazon stopped serving historically underserved communities with its Prime delivery trucks and began outsourcing deliveries there. The lawsuit parallels a case that Washington, D.C.’s attorney general filed , opens new tab earlier this week accusing Amazon of violating the city's consumer protection provisions. Amazon in a statement said the claims were "categorically false." Amazon said it made a business decision to adjust operations in the affected zip codes for the safety of the company's drivers. "We’re always transparent with customers during the shopping journey and checkout process about when, exactly, they can expect their orders to arrive," Amazon said. A lawyer for the consumers, Jarrett Ellzey, said Amazon can adopt measures to protect drivers and their cargo but "does not have the right to charge customers for services they fail to provide." The consumers’ lawsuit seeks class action status for more than 10,000 Amazon customers. The District’s complaint estimated that Amazon unfairly continued to charge about 48,000 Prime members for the full subscription service, even though their zip codes were excluded from the company’s fastest service. Both lawsuits said Amazon in 2022 made a decision to stop using the company’s branded trucks to deliver Prime-eligible packages, and instead used other services such as UPS or the U.S. Postal Service. In a statement , opens new tab on Wednesday, Washington, D.C., Attorney General Brian Schwalb said Amazon was charging thousands of D.C. residents “for an expedited delivery service it promises but does not provide.” The lawsuits said Prime members living in two of the District’s zip codes only receive promised two-day delivery 24% of the time. Prior to the changes, Amazon Prime packages were delivered within two days 72% of the time, the lawsuits said. The case is King v. Amazon, U.S. District Court for the Western District of Washington, No. 2:24-cv-02009. For plaintiffs: Jarrett Ellzey of Ellzey Kherkher Sanford Montgomery and Janelle Bailey of Washington Injury Law For Amazon: No appearance yet Read more: Amazon denies duping US consumers over Alexa’s recording practices US antitrust case against Amazon to move forward Amazon slams authors’ class action over audiobook distribution Sign up here. https://www.reuters.com/legal/government/amazon-hit-with-us-consumer-lawsuit-over-excluded-fast-delivery-zones-2024-12-06/

2024-12-06 21:44

US will require testing raw milk for bird flu Testing will begin in six states on Dec. 16 Virus has infected half of California's dairy farms Dec 6 (Reuters) - The U.S. issued a federal order on Friday mandating that the national milk supply be tested for bird flu, Agriculture Secretary Tom Vilsack told Reuters, as authorities seek to grapple with rapid spread of the virus among dairy herds. Bird flu has infected more than 500 dairy herds in top milk state California, and more than 700 nationwide since March, according to the U.S. Department of Agriculture, raising concerns of the impact to farmers and the milk supply as well as the risk to human health from ongoing spread. Nearly 60 people have contracted the virus since April, most of them workers on infected poultry and dairy farms, according to the U.S. Centers for Disease Control and Prevention. The symptoms have been mild and CDC officials have said the risk to the general public from bird flu is low. The USDA first announced it would begin national milk testing in October after a push from industry and veterinary groups for stronger surveillance of the virus, but had not detailed the extent of the program or how it would be implemented. The testing plan, which will involve monthly or weekly sample collection from bulk milk tanks and dairy processors, will be rolled out first in California, Colorado, Michigan, Mississippi, Pennsylvania, and Oregon, Vilsack said. The latter three states have not reported bird flu infections in dairy cattle. "It gives us the opportunity to get potentially a heads up about potentially new virus in areas of a state that currently has the virus, or new states," Vilsack said of the testing. The agency will begin the testing on Dec. 16, Vilsack said. The pace of testing will depend on whether virus is detected in initial sampling, said Rosemary Sifford, USDA's chief veterinarian. The order requires farms and processors to make raw milk available for sampling, and farm owners whose animals test positive for the virus to tell the agency about animal movements and other information. The USDA currently only requires testing of lactating dairy cattle moving across state lines, a requirement laid out in its only other federal bird flu order issued in April. Both federal orders will remain in effect indefinitely, Vilsack said, adding that the testing plan was developed with industry groups, state officials and veterinarians. California this week issued a recall of milk and cream products made by raw milk company Raw Farm after bird flu was detected in its retail products and bulk milk. The Food and Drug Administration advises against consuming raw milk because it can contain pathogens, including bird flu, but says pasteurized dairy products are safe because the pasteurization process kills those pathogens. The state has about 1,100 dairies, according to the California Milk Advisory Board, meaning nearly half have been infected with bird flu. Sign up here. https://www.reuters.com/business/healthcare-pharmaceuticals/us-issues-order-mandating-bird-flu-testing-milk-supply-2024-12-06/

2024-12-06 21:43

Dec 6 (Reuters) - Shares of health insurance companies including UnitedHealth Group (UNH.N) , opens new tab continued to fall on Friday, two days after Brian Thompson, the CEO of the company's health insurance unit, was fatally shot outside a Manhattan hotel by a gunman lying in wait. The shooter is still at large and his motive for the attack has not been determined, police officials say. Thompson's death sparked a wide social media conversation over frustrations with navigating the U.S. health insurance system, particularly when medical expenses are not covered or insurance claims or requests for care are denied. "The anti-insurer sentiment expressed by the public after this event suggests that UnitedHealth and perhaps the industry may need to adjust how they handle coverage decisions," said Morningstar analyst Julie Utterback. Shares of UnitedHealth were down 4.8% on Friday after a 5% drop on Thursday. Rival insurers Elevance (ELV.N) , opens new tab, Centene (CNC.N) , opens new tab, CVS Health (CVS.N) , opens new tab, and Cigna (CI.N) , opens new tab also fell between 1% and 3% in afternoon trading. Those shares all lost ground on Thursday as well. The words "deny," "defend" and "depose" were carved into shell casings found at the scene, police sources told ABC and the New York Post. The words evoke the title of Jay Feinman's 2010 book critical of the U.S. insurance industry: "Delay Deny Defend: Why Insurance Companies Don't Pay Claims and What You Can Do About It." Social media sites have been flooded with angry posts attacking the companies and users sharing personal frustrations on coverage rejections and how they have been denied necessary care, as well as sarcastic videos with unsympathetic messages like "thoughts and prayers require prior authorization." Health insurance companies are reassessing the risks for their top executives with both UnitedHealth and CVS removing photos of their leadership teams from their websites after the shooting. Potential changes in coverage decisions may be prompted by internal initiatives or external pressures that could pose risks for profits, said Utterback. The insurance industry has been facing higher costs over the past few quarters due to increased demand for healthcare under government-backed Medicare plans for older adults or those with disabilities, as well as changes in Medicaid eligibility from states, which has left insurers with more patients who require more medical services. Sign up here. https://www.reuters.com/business/healthcare-pharmaceuticals/health-insurer-shares-fall-after-unitedhealth-exec-murder-2024-12-06/

2024-12-06 21:38

November nonfarm payrolls above estimates at 227,000 Ulta Beauty gains after raising annual profit forecast Lululemon Athletica up following upbeat annual forecast Indexes: Dow down 0.3%, S&P 500 up 0.3%, Nasdaq up 0.8% NEW YORK, Dec 6 (Reuters) - The Nasdaq and the S&P 500 rose to record closing highs on Friday following upbeat forecasts from Lululemon Athletica and other companies and as U.S. jobs data fueled expectations the Federal Reserve would cut interest rates this month. The Dow finished lower, as a 5.1% drop in UnitedHealth Group (UNH.N) , opens new tab shares weighed on the index. The S&P 500 consumer discretionary index (.SPLRCD) , opens new tab rose 2.4% to hit an all-time closing high. It led gains among sectors, boosted by Lululemon. Shares of Lululemon Athletica (LULU.O) , opens new tab jumped 15.9% after the sportswear maker increased full-year forecasts. Also in the consumer discretionary space, shares of cosmetics retailer Ulta Beauty (ULTA.O) , opens new tab advanced 9% after the company raised its annual profit forecast. The U.S. Labor Department report showed job growth surged in November, but an increase in the unemployment rate to 4.2% pointed to an easing labor market. "It does support the case for the Fed to continue to cut rates in the December meeting and into the first quarter," said Bill Northey, senior investment director at U.S. Bank Wealth Management in Billings, Montana. The Dow Jones Industrial Average (.DJI) , opens new tab fell 123.19 points, or 0.28%, to 44,642.52, the S&P 500 (.SPX) , opens new tab gained 15.16 points, or 0.25%, to 6,090.27 and the Nasdaq Composite (.IXIC) , opens new tab gained 159.05 points, or 0.81%, to 19,859.77. The S&P 500 registered its 57th record closing high for 2024, while the Nasdaq Composite posted its 36th record high close for the year. For the week, the Nasdaq gained 3.3%, the S&P 500 rose about 1% and the Dow fell 0.6%. Following the data, U.S. rate futures were pricing in roughly a 90% chance the Fed will lower interest rates by 25 basis points at its Dec. 17-18 policy meeting, according to LSEG calculations which previously saw just a 72% chance. The Fed has lowered rates by 75 basis points since September, when it launched its easing cycle. Fed Governor Michelle Bowman said inflation risks remained, which augured caution with rate decisions. Shares of health insurance companies including UnitedHealth extended declines from the previous session, two days after Brian Thompson, CEO of UnitedHealth's health insurance unit, was fatally shot outside a Manhattan hotel. The shooter remained at large and his motive has not been determined. The death sparked comments on social media over frustrations with the U.S. health insurance system. Among other stock moves, shares of Facebook-owner Meta Platforms (META.O) , opens new tab were up 2.4% after a U.S. appeals court upheld a law requiring China-based ByteDance to divest its popular short video app TikTok by early next year or face a ban. The Cboe Volatility Index (.VIX) , opens new tab, Wall Street's fear gauge, ended down 0.77 points at 12.77 in its lowest finish since mid-July. Declining issues outnumbered advancers by a 1.01-to-1 ratio on the NYSE. There were 354 new highs and 98 new lows on the NYSE. On the Nasdaq, 2,610 stocks rose and 1,678 fell as advancing issues outnumbered decliners by a 1.56-to-1 ratio. Volume on U.S. exchanges was 12.99 billion shares, compared with the 14.5 billion average for the full session over the last 20 trading days. Sign up here. https://www.reuters.com/markets/us/futures-steady-markets-await-november-jobs-data-2024-12-06/