Market Beats | Snowstorm in Chicago Deepens US Flight Chaos; US Consumer Durables and Personal Goods Inflation Slows in October; White House Backs Bipartisan Deal, Raising Chances of Government Reopening; Visa and Mastercard Agree to Cut Swipe Fees to End Two-Decade Retailer Fight; Warren Buffett Donates Over $1.3 Billion in Berkshire Shares; Switzerland Nears Deal to Cut US Tariffs to 15% From 39%; Tesla Faces More Executive Departures

—— Snowstorm in Chicago Deepens US Flight Chaos; US Consumer Durables and Personal Goods Inflation Slows in October; White House Backs Bipartisan Deal, Raising Chances of Government Reopening; Visa and Mastercard Agree to Cut Swipe Fees to End Two-Decade Retailer Fight; Warren Buffett Donates Over $1.3 Billion in Berkshire Shares; Switzerland Nears Deal to Cut US Tariffs to 15% From 39%; Tesla Faces More Executive Departures

1. Snowstorm in Chicago Deepens US Flight Chaos

Snow in Chicago, one of the nation’s busiest aviation hubs, compounded travel chaos across US airports Monday as government-mandated flight restrictions entered their fourth day.

As of 7:15 a.m. in New York, US airports had canceled 1,432 flights — about 5.5% of 25,733 scheduled departures — and “the number is growing,” aviation analytics firm Cirium reported. Chicago O’Hare International Airport, LaGuardia Airport, and Newark Liberty International Airport recorded the highest cancellation rates at 8% or more. Delta Air Lines Inc. had the most canceled flights.

Airlines already battered by weekend disruptions are now facing worsening delays as winter weather descends on Chicago, where several inches of snow are expected, according to the National Weather Service.

Meanwhile, the political impasse in Washington has surpassed 40 days. The Senate took a key step toward reopening the government Sunday as several moderate Democrats sided with Republicans, but strong opposition in the House has left the timing of a final vote uncertain.

The Federal Aviation Administration’s air traffic controllers are set to miss their second paycheck. Over the weekend, the FAA issued notices highlighting large portions of US airspace facing delays due to staff shortages.

Transportation Secretary Sean Duffy warned that the strain on the aviation system could worsen ahead of the Thanksgiving travel rush — and even reach a “near standstill” if controllers continue to work without pay. As part of the FAA’s restrictions, major airports are limiting private jet access. Airlines must cancel 6% of flights starting Tuesday morning, up from 4% since last Friday, with cuts expected to reach 10% by Friday.

While international routes aren’t directly affected, connecting travelers face significant delays as foreign carriers queue alongside dozens of domestic flights awaiting takeoff.

The disruptions will increase airline costs, particularly for unavoidable expenses such as pilot wages, according to Bloomberg Intelligence analysts George Ferguson and Melissa Balzano. However, the shutdown could also help carriers’ fourth-quarter margins as they eliminate smaller, less profitable routes.

“If the reduction lasts beyond the near term, it stands to result in higher fares, particularly for business class, which should aid United, American, and Delta,” they wrote.

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2. US Consumer Durables and Personal Goods Inflation Slows in October

US consumer durables and personal goods inflation cooled in October for the first time in three months, reflecting a modest increase in retailer discounting, according to data from OpenBrand.

The firm’s measure of prices for big-ticket items and personal-care products rose 0.22% last month, down from a 0.48% increase in September. OpenBrand, which tracks prices daily across online marketplaces, retailer websites, and brick-and-mortar listings, said price growth slowed across all product groups except communications devices. The average discount size edged up to 20.4%, near the highest since July 2023, while the frequency of markdowns declined slightly. Prices in both appliance and personal goods categories fell.

Separate data from PriceStats also indicated easing inflation overall, though price pressures remained firm in import-heavy categories such as household equipment, furniture, and electronics.

“The uptrend in inflation has stalled somewhat in October,” said Michael Metcalfe, head of macro strategy at State Street, which recently acquired PriceStats. “This still requires careful monitoring as we move into the seasonal discounting season, but for now inflation remains firm but not frightening.”

The results suggest that retailers are limiting price hikes to protect market share as inflation-fatigued consumers become more price-sensitive. They also point to an uneven impact of tariffs on consumer prices in recent months, rather than a consistent buildup in price pressures.

Alternative data sources like OpenBrand and PriceStats have taken on new significance as the federal government shutdown — now the longest in US history — delays the release of official statistics. The Bureau of Labor Statistics wasn’t able to collect prices in person last month, raising the likelihood that the official October CPI report, originally scheduled for release Thursday, will be delayed or canceled.

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3. White House Backs Bipartisan Deal, Raising Chances of Government Reopening

The White House on Monday expressed support for the bipartisan deal to end the US government shutdown — a key development that makes it increasingly likely the government will reopen within days.

President Donald Trump has wanted the government reopened since the start of the shutdown and views the agreement as a positive step, according to a White House official who spoke on condition of anonymity. Senate Majority Leader John Thune said he spoke with Trump on Sunday night and expects the president to sign the bill into law once Congress passes it.

The Senate resumed deliberations Monday on the agreement reached with centrist Democrats but hasn’t yet scheduled a final vote. Thune said he hopes the vote will happen “in hours and not days.” House Speaker Mike Johnson said he would give lawmakers 36 hours’ notice to return to Washington once the Senate passes the legislation — marking the first House vote since Sept. 19.

Flight disruptions and food aid delays are likely to continue until the shutdown formally ends. Still, Republicans on Monday took a victory lap, with Johnson telling reporters that the 41-day “nightmare” is finally nearing its conclusion.

Stocks rallied Monday morning on optimism that the shutdown will soon end, with the S&P 500 climbing more than 1% shortly after the opening bell and a gauge of the “Magnificent Seven” tech giants rising over 2%. Bonds declined.

The compromise reached by moderate senators excluded the extension of Affordable Care Act subsidies that Democrats had made central to their shutdown demands, sparking fierce backlash within the party just days after celebrating strong election results.

California Governor Gavin Newsom called the deal “pathetic,” while Illinois Governor Jay Pritzker criticized the Republican concessions as an “empty promise.”

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4. Visa and Mastercard Agree to Cut Swipe Fees to End Two-Decade Retailer Fight

Visa Inc. and Mastercard Inc. have agreed to reduce some of the fees they charge merchants and relax two of their most controversial rules, in an effort to end a 20-year legal battle with retailers.

Under the settlement, the payment networks will lower the average effective interchange rate — the fees retailers pay when customers use credit cards — for US transactions by 10 basis points over five years, according to regulatory filings. Standard US consumer credit-card rates will be capped at 125 basis points. “We believe that this is the best resolution for all parties, delivering the clarity, flexibility and consumer protections that were sought in this effort,” Mastercard said in an emailed statement. “Smaller merchants will gain in this settlement – more acceptance choices, reduced costs and simplified rules.”

Credit and debit card swipe fees reached a record $187.2 billion last year, according to the Merchant Payments Coalition (MPC). Retailers have long criticized these charges. While Visa and Mastercard set the interchange rates, much of the revenue goes to issuing banks such as JPMorgan Chase & Co., Capital One Financial Corp., and Citigroup Inc.

The MPC condemned the latest deal — first reported by the Wall Street Journal — arguing that Visa and Mastercard only agreed to limit the portion of the fees passed to banks, not the fees they keep. “The minuscule reduction proposed in the settlement on bank fees could still allow Visa and Mastercard to raise their own fees without any limits,” said Jennifer Hatcher, an MPC executive committee member. “All of the supposed merchant and consumer savings could easily be canceled by Visa and Mastercard increasing their fees.”

The new settlement follows an earlier agreement reached last year that would have saved merchants at least $30 billion over five years. That deal, which could have been one of the largest antitrust settlements in US history, was rejected in June 2024 by US District Judge Margo Brodie.

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5. Warren Buffett Donates Over $1.3 Billion in Berkshire Shares

Warren Buffett is donating more than $1.3 billion worth of Berkshire Hathaway Inc. shares to four family foundations, as the billionaire addresses shareholders ahead of stepping down as chief executive officer at the end of the year.

The 95-year-old investor will convert 1,800 Class A shares into 2.7 million Class B shares, according to a statement released Monday. Of those, 1.5 million shares will go to the Susan Thompson Buffett Foundation, named after his late wife, and 400,000 shares each will be donated to the Sherwood Foundation, the Howard G. Buffett Foundation, and the NoVo Foundation, all run by his children.

Buffett began his large-scale philanthropic giving in 2006, pledging billions to the Bill & Melinda Gates Foundation and his family’s foundations. Later, he co-founded the Giving Pledge with Bill and Melinda Gates, encouraging billionaires to donate most of their wealth during their lifetime or after death. Last year, Buffett announced that the Gates Foundation will no longer receive donations after his passing, with his three children overseeing a new charitable trust instead.

Buffett is expected to hand the CEO role to Greg Abel by year-end. Letters like the one released Monday — and the annual ones accompanying Berkshire’s financial results — have long been required reading for investors seeking his trademark mix of wisdom, wit, and insight.

While Buffett said he will no longer write Berkshire’s annual report letter or speak at the annual meeting, he plans to continue addressing shareholders through his traditional Thanksgiving message.

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6. Switzerland Nears Deal to Cut US Tariffs to 15% From 39%

Switzerland is close to securing a 15% tariff rate on its exports to the US, according to people familiar with the matter — a major relief after the country was hit with a punishing 39% levy in August.

A deal could be finalized within the next two weeks, the people said, though they cautioned that the negotiations remain delicate and could still fall apart, as they did in late July. A Swiss government spokesperson declined to comment, and both the White House and the Office of the US Trade Representative didn’t immediately respond.

The previous round of talks collapsed, leading to Switzerland being slapped with the highest tariff rate imposed by the US on any developed nation. Since then, Swiss officials have sought better terms — an effort that gained traction last week when a group of Swiss billionaires and corporate leaders met with President Donald Trump in the Oval Office.

The meeting reportedly went so well that Trump instructed Trade Representative Jamieson Greer to intensify negotiations, which he did in direct talks with Swiss counterparts on Friday. A deal would represent the culmination of weeks of shuttle diplomacy by Switzerland’s top trade envoy Helene Budliger Artieda, alongside a well-coordinated corporate charm offensive.

A 15% rate would bring Switzerland in line with the European Union and mark a dramatic improvement from the 39% tariff Trump announced on Aug. 1 — Switzerland’s national day.

The initial punitive tariff was tied to Trump’s view of a $40 billion US goods deficit with Switzerland, though Swiss officials countered that the imbalance was offset by imports of services.

The Aug. 1 announcement was particularly shocking to Swiss officials, who believed they had already reached a deal with US negotiators awaiting only Trump’s final approval.

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7. Tesla Faces More Executive Departures

Tesla Inc. is losing key leaders from its Cybertruck, Model 3, and Model Y programs — the latest wave of high-level exits this year as the electric-vehicle maker contends with volatile sales and an uncertain outlook.

Siddhant Awasthi, who oversaw the development and production ramp-up of the Cybertruck as program manager for three years, said on LinkedIn that he has left the company. Awasthi, who joined Tesla as an intern in 2017, had shifted to the Model 3 program in July. “This decision wasn’t easy, especially with so much exciting growth on the horizon,” he wrote.

Separately, Emmanuel Lamacchia, program manager for Tesla’s top-selling Model Y SUV, also announced his departure after eight years. Neither executive specified their next career moves.

The departures add to a growing list of senior exits at Tesla, which has struggled with tepid consumer demand and the loss of key US incentives, even as it expands into new areas such as robotaxis and humanoid robots. David Lau, Tesla’s vice president of software engineering, left for OpenAI earlier this year after nearly 13 years, while Milan Kovac, head of engineering for the Optimus robot, also stepped down. In June, Bloomberg reported that Omead Afshar — a powerful Tesla executive and longtime confidant of CEO Elon Musk — had left the company.

Tesla is on track for its second straight annual decline in vehicle sales, even as the Model Y and Model 3 remain among the top-selling vehicles in the US. The angular Cybertruck, however, has disappointed, facing multiple recalls and lagging sales since its 2019 debut.

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