13 states take egg law to U.S. justices
JEFFERSON CITY, Mo. -- More than a dozen states including Arkansas banded together Monday to ask the U.S. Supreme Court to block a California law requiring any eggs sold there to come from hens that have space to stretch out in their cages.
In a lawsuit filed directly to the high court, the states allege that California's law has cost consumers nationwide up to $350 million annually because of higher egg prices since it took effect in 2015. The lawsuit argues that California's requirements violate the U.S. Constitution's interstate commerce clause and are pre-empted by federal law.
A federal appeals court panel rejected similar claims last year in a separate case brought by six states, ruling that they failed to show California's law would affect more than just individual farmers. The latest lawsuit seeks to address that by citing an economic analysis of the California law. It also asks the Supreme Court to take up the case directly instead of requiring that it first move through the lower courts.
Missouri Attorney General Josh Hawley, a Republican who is running for U.S. Senate in 2018, is leading the lawsuit. Other plaintiff states are Alabama, Indiana, Iowa, Louisiana, Nebraska, Nevada, North Dakota, Oklahoma, Texas, Utah and Wisconsin. All have Republican attorneys general except Iowa, which has a Democrat.
-- The Associated Press
Tax-bill vote boosts Fed-Ex, UPS stock
FedEx Corp. and United Parcel Service Inc. surged the most in more than a year on expectations that they'll reap particularly big gains from the tax-overhaul package making its way through Congress.
The bills passed by the House and the Senate cut the corporate tax rate to 20 percent from 35 percent. Shipping companies like FedEx and UPS, as well as airlines and railroads, are especially well-positioned to benefit from a provision allowing them to expense capital equipment immediately, instead of over time.
FedEx jumped 3.56 percent to $239.05 on the New York Stock Exchange after soaring as much as 5.3 percent, its biggest intraday gain since September 2016. UPS gained as much as 4 percent, the most intraday since July 2015, before paring the gain to trade 2.83 percent higher at 123.72. Deutsche Bank upgraded the stock to buy from hold.
Beyond the tax package, soaring demand for global air-freight shipments is pushing up the couriers' prices, said Kevin Sterling, an analyst at Seaport Global Securities.
-- Bloomberg News
Pilot-schedule fix to cost airline $10M
FORT WORTH -- A prominent airline analyst says American Airlines will pay about $10 million to fix the pilot-scheduling mix-up that left thousands of unstaffed flights around Christmas.
J.P. Morgan Chase analyst Jamie Baker issued the estimate Monday. American didn't comment immediately.
American reached a deal late last week to pay pilots double wages for working some flights that were short-staffed after an error in the crew-scheduling system let pilots drop assignments even if no backups were available.
Baker says the settlement will deflect bad publicity and passenger concern over possible flight cancellations. He's even slightly raising his estimate of American's fourth-quarter earnings per share based on strong ticket demand.
Other analysts are downplaying impact of the mistake too. Helen Becker of Cowen is criticizing the pilots' union for publicizing the scheduling error.
Fox said to favor Disney in assets sale
21st Century Fox Inc., the global film and TV company controlled by the Murdoch family, would prefer to sell some assets to Walt Disney Co. because it's a better strategic fit and presents fewer regulatory hurdles, people familiar with the matter said.
The family is holding talks with Disney as well as Comcast Corp. about combining certain media businesses, said the people, who asked not to be identified because the discussions are private. The assets would include the 20th Century Fox film and TV studio and Fox's stake in the U.K. pay-TV provider Sky PLC, they said. The talks don't include Fox News, the Fox broadcast network or the Fox Sports 1 channel.
Fox, based in New York, declined to comment. Disney, based in Burbank, California, didn't respond to requests for comment.
-- Bloomberg News
Developer Woodbridge files Chapter 11
Woodbridge Group of Companies LLC, a high-end real estate developer, filed for bankruptcy amid the departure of its chief executive and an investigation into suspected securities fraud linked to $1 billion in investments.
The Chapter 11 filing on Monday in U.S. Bankruptcy Court in Wilmington, Del., cited "unforeseen costs associated with ongoing litigation and regulatory compliance." The U.S. Securities and Exchange Commission has been investigating whether Woodbridge defrauded investors who invested more than $1 billion. The agency also sought more information about 236 limited liability companies Woodbridge formed, according to an October SEC court filing.
Woodbridge said in a statement it's cooperating with the investigation. Chief Executive Officer Robert Shapiro resigned but will take on a consulting role as the Sherman Oaks, Calif.-based company seeks to restructure $750 million in debt, according to the statement.
-- Bloomberg News
Bitcoin's market value reaches $190B
Bitcoin's extraordinary price surge means its market capitalization now exceeds the annual output of whole economies and the estimated worth of some of the world's top billionaires.
With the debate over its bubble status still raging, the flagship cryptocurrency continued its march higher Monday, solidifying above $11,000 and taking its climb this year to more than 1,000 percent. With market tracker Coinmarketcap.com putting the total value of all bitcoins in circulation at $190 billion, it's come a long way from August, when one coin could buy you a hefty supply of avocados.
In terms of market capitalization, bitcoin has eclipsed New Zealand's gross domestic product as well as Goldman Sachs, UBS (Union Bank of Switzerland), Boeing, Bill Gates, Warren Buffett and Queen Elizabeth.
-- Bloomberg News
Business on 12/05/2017