The Business Buzz: CEOs Fired, Student Loans Settled, and More

The past week has been filled with notable business news, from CEOs being fired to record-low interest rates and major mergers. Norfolk Southern CEO Alan Shaw was let go after an investigation found he violated company policies by engaging in a consensual relationship with the chief legal officer. This move comes as the company has been working to revamp its operations and improve service. Meanwhile, Navient Corp. has agreed to settle a lawsuit with the Consumer Financial Protection Bureau for $120 million. The company, which has been accused of steering student-loan borrowers into more expensive repayment options, will also be banned from servicing federal student loans. This is not the first time Navient has faced scrutiny; in 2022, the company agreed to cancel about 66,000 student loans to resolve claims that it used predatory lending practices. In the world of finance, the average rate on a 30-year mortgage in the US has fallen to its lowest level in 19 months, reflecting a pullback in Treasury yields ahead of an expected interest rate cut from the Federal Reserve next week. The European Central Bank has also cut interest rates for the second time in three months, as it continues to slow the pace of its monetary tightening. In the automotive industry, Stellantis has decided to halt production of its electric Fiat 500 model in Turin, Italy, due to a lack of orders in Europe. On the other hand, General Motors and Hyundai have announced plans to explore potential collaborations to develop vehicles, improve supply chains, and advance clean-energy technology. In the food industry, General Mills has agreed to sell its North American yogurt business, which includes the popular Yoplait brand, for $2. 1 billion in cash. The company has been looking to divest itself of certain segments and focus on growth areas such as premium pet food and organic snacks. In the world of health insurance, a major US insurer has taken an unusual hard line on doctors who it says improperly prescribed the diabetes treatment Ozempic, escalating the ongoing war over drugs that have become wildly popular for weight loss. Finally, McDonald's has decided to extend its $5 meal deal into December, a move that points to how much fast-food chains are competing for budget-conscious guests. Microsoft has also announced that it will cut 650 jobs in its Xbox unit, the third such layoffs this year as the company tries to rein in costs and integrate its massive acquisition of Activision Blizzard Inc.