Feds to appeal ruling blocking overtime rules
The Obama administration says it will challenge a federal court’s decision to block implementation of a regulation that would make an estimated 4 million more higher-earning workers eligible for overtime pay.
The U.S. Labor Department filed a notice of appeal Thursday, the same day the administration’s rule had been set to take effect nationwide.
Twenty-one states sued to block the rule, arguing it would unduly burden the public and private sectors.
Last week, a federal judge in Texas issued an injunction suspending it to allow for further scrutiny.
The lead plaintiff is Nevada Attorney General Adam Laxalt, who’s a frequent critic of what he calls Obama administration overreach. Texas, which has sued the Obama administration nearly 50 times, is also a plaintiff.
Starbucks CEO steps down to focus on innovation
Starbucks says CEO Howard Schultz, who transformed the chain into a global coffee brand, is stepping down from that role at the chain he joined more than 30 years ago.
The Seattle-based company announced Thursday that Kevin Johnson, who was named president and chief operating officer last year, will become chief executive as of April 3.
Schultz, currently chairman and CEO, will become executive chairman to focus on innovation and social impact activities, among other things.
In a message to Starbucks employees, Schultz spoke of his “enduring love” for the company and called himself “incredibly excited” to work on projects such as the expansion of premium Starbucks Roasteries around the world.
He is credited with turning around the coffee chain’s fortunes since returning as its CEO in 2008. Schultz, 63, has overseen the expansion of the company’s popular loyalty program and mobile app and worked to expand food and beverage offerings.
Speaking on a conference call, Johnson called Schultz one of the world’s “most iconic leaders and entrepreneurs.”
Top-selling Camry to get 2018 revamp
Toyota plans to reveal a new version of America’s top-selling sedan next month at a time when U.S. buyers are moving away from cars toward SUVs and trucks.
The Japanese automaker said Thursday it would show off the 2018 Camry at Detroit’s North American International Auto Show in January. It is likely to arrive in showrooms late next summer.
Toyota gave few details about the eighth-generation Camry, which last was redesigned for the 2013 model year. Typically Toyota redesigns the interior, exterior and suspension, but it also has added new engines and transmissions. A teaser photo of the car shows a more rakish, sportier look, something the Camry has lacked for years.
Mortgage rates rise since Trump election
Long-term U.S. mortgage rates marked a fifth week of surges in the aftermath of Donald Trump’s election win, reaching their highest levels this year.
Mortgage giant Freddie Mac said Thursday the average rate on a 30-year fixed rate loan rose to 4.08 percent from 4.03 percent the previous week. The benchmark rate topped its 3.93 percent level of a year ago.
The rate on 15-year home loans, a popular choice for people who are refinancing, jumped to 3.34 percent from 3.25 percent.
Long-term mortgage and interest rates have climbed in the four weeks since Trump’s surprise victory on Nov. 9. Bond investors are looking toward tax cuts and increased government spending to upgrade roads, bridges and airports under a Trump administration, which could fuel inflation.
Modest consumer impact from OPEC production cuts
OPEC’s decision to cut production gave an immediate boost to oil prices, but the impact on consumers and the U.S. economy is likely to be more modest and gradual.
The cartel agreed Wednesday to cut output by 1.2 million barrels a day, reversing a strategy that produced lower oil prices and pain for U.S. drillers but saved money for consumers.
Even if OPEC members carry through on their promises, global oil production would only fall by about 1 percent. There is still more supply than demand – the reason oil prices collapsed beginning in mid-2014.
The agreement has sparked a two-day rally in oil of about 12 percent to above $50. If the price keeps rising, some of the slack from OPEC cuts will be picked up by producers in the United States – good news for drillers and oilfield workers in Texas and North Dakota. President-elect Donald Trump has vowed to increase drilling in the U.S., the world’s third-largest producer after Saudi Arabia and Russia, which would help ensure there is plenty of oil.