Plus, a 6.4 magnitude earthquake hit Northern California early Tuesday morning.
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Wells Fargo has reached a $3.7B settlement with the Consumer Financial Protection Bureau (CFPB) to resolve allegations that the bank harmed more than 16 million people with deposit accounts, auto loans, and mortgages. The settlement includes a $1.7B civil penalty and more than $2B in consumer restitution. More: - The CFPB accuses the bank of illegally assessing fees and interest charges on loans for cars and homes.
- The agency said some consumers had their vehicles illegally repossessed and others had overdraft fees unlawfully applied.
- The CFPB noted that Wells Fargo has been operating these schemes for over a decade due to technology and compliance failures.
- Wells Fargo has already paid about $1.3B in consumer restitution to 11 million customers who had auto-loan servicing issues.
- Wells Fargo took a $2B charge in its Q3 earnings released in October.
- The bank said the charge was related to resolving long-running legal and regulatory issues, including making harmed customers whole.
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The Bank of Japan (BOJ) unexpectedly changed its yield curve control (YCC) policy, shocking global markets. The central bank tweaked its YCC to allow the 10-year Japanese government bond yield to move 50 basis points on either side of its 0% target. Analysts believe the move aims to ease some of the effects of a prolonged monetary stimulus. More: - In a statement, the central bank said the change is meant to improve market functioning and encourage a smoother formation of the entire yield curve while maintaining accommodative financial conditions.
- BOJ governor Haruhiko Kuroda denied the adjustment was part of a tightening of monetary policy, adding that the central bank would not forgo its yield target.
- The bank launched the YCC in September 2016, aiming to raise inflation to its 2% target after a period of economic stagnation.
- Following the YCC change on Tuesday, the yen and bond yields across the globe rose while stocks in the Asia-Pacific region fell.
- The 10-year JGB yield rose nearly 0.5%, and the Nikkei 225 declined 2.5%.
- The U.S. dollar was down 3.3% against the yen, the currency’s biggest gain against the dollar since March 1995.
- The European Stoxx 600 fell about 1%, and the U.S. 10-year treasury yield rose to 3.66%.
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Amazon has reached a settlement with the European Commission to resolve two antitrust investigations into the eCommerce giant’s practices. The EU had raised concerns about Amazon’s dual role as both a marketplace and a competitor to merchants selling on its platform. More: - Amazon was also accused of using non-public business data from sellers on its platform to benefit its own retail business.
- As part of the agreement, Amazon has committed to making several changes to its business practices.
- Amazon agreed to treat all sellers equally and make rival products more visible on its “buy box.”
- Amazon’s buy box accounts for most of the sales on the platform.
- Merchants on Amazon will also be able to choose any logistics company and negotiate their contracts directly instead of being locked into using Amazon’s logistics services.
- The agreements are legally binding and will remain in effect for five to seven years.
- By accepting these changes, Amazon has avoided formal charges of violating EU law and a potential fine of up to 10% of global revenue.
In related news: - The U.S. Navy awarded Amazon Web Services a five-year enterprise software license contract worth $723.9M.
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Elon Musk plans to restrict voting on policy-related polls to Twitter Blue subscribers. The CEO indicated Twitter would make the change while responding to a user's suggestion. On Sunday, Musk ran a poll asking his more than 120 million followers if he should step down as the company's CEO. A majority voted "yes." More: - Musk said he would abide by the poll results, warning Twitter users to be careful what they wish for.
- Earlier this month, Twitter relaunched its Twitter Blue subscription service priced at $8 per month for web and $11 per month for Apple devices.
- On Tuesday, CNBC reported that Musk was actively searching for a new CEO for the social media company.
- Following Sunday's Twitter poll, Musk said no one who could keep the company alive wanted to be CEO, indicating there would be no successor if he stepped down from the role.
- Musk has been serving as Twitter's CEO or "Chief Twit" since taking over the company for $44B in October.
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Mondelez International is selling its gum brands, like Trident and Dentyne, to Perfetti Van Melle Group, the maker of Mentos and Chupa Chups lollipops. The deal, valued at $1.35B, is part of a broader strategy by Mondelez to refocus its business on chocolates, cookies, and other snacks. More: - According to Mondelez, the $1.5B sale price represents 15 times the current year estimates for EBITDA.
- Earlier this year, Mondelez said it would exit businesses in noncore categories, such as its gum business in developed markets and its Halls cough-drop business.
- Mondelez CEO Dirk Van de Put said the company plans to expand and deepen its snacks portfolio, including developing new categories such as “well-being snacks.”
- Mondelez’s cookies and chocolate businesses, including brands like Oreo and Toblerone, accounted for 47% and 32% of the company’s 2021 sales, respectively.
- Its gum business made up roughly 10% of its 2021 sales.
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3M said it would stop producing perfluoroalkyl and polyfluoroalkyl substances (PFAS), also known as “forever chemicals,” by 2025. The substance is used in manufacturing various items, including cell phones, cleaning products, beauty products, cookware, and semiconductors. More: - PFAS does not break down quickly and has recently been found in dangerous amounts in drinking water, soils, and food.
- The substance has been linked to cancers, heart problems, and low birth weights.
- Investors and regulators have been pushing for PFAS to be phased out.
- Last month the state of California sued 3M, DuPont de Nemours, and several other companies for the rising costs of cleaning up PFAS.
- 3M generates roughly 4% of its annual revenue from sales of manufactured PFAS.
- The company expects to take a charge of about $1.3B to $2.3B over the course of its PFAS phase-out.
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- WTO Director-General Ngozi Okonjo-Iweala scolded countries for failing to make progress on fishing and agriculture negotiations due to infighting over who should lead them. Okonjo-Iweala told countries during a meeting of its General Council that six months of not negotiating is not acceptable.
- A 6.4 magnitude earthquake hit Northern California on Tuesday, knocking out power for more than 70,000 customers and leaving at least two people injured. The quake occurred around 5:30 a.m. ET near Eureka in Humboldt County.
- Ukraine has reached a deal with Elon Musk’s SpaceX to receive more than 10,000 Starlink antennas. The antennas have been instrumental in providing satellite internet service to the country as the war with Russia continues.
- According to Nikkei Asia, Apple plans to start producing its MacBook computers in Vietnam in 2023. The iPhone maker has been in talks to move some of its production outside China as U.S.-China tensions grow.
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 |  | Vanessa Omeokachie is a writer for Inside.com; she writes the daily Inside Business newsletter. Her interests include finance, technology, and entrepreneurship. In her free time, she enjoys reading, hiking, attending concerts and music festivals, traveling, and exploring. Connect with her on Twitter @VanessaOmeo or on LinkedIn. |   | | Editor | Aaron Crutchfield is based in the high desert of California. Over the last two decades, he has spent time writing and editing at various local newspapers and defense contractors in California. When he's not working, he can often be found looking at the latest memes with his kids or working on his 1962 and 1972 Fords. | |
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