The Latest News, Headlines, and Business Stories for December 20

Hi! Chick-fil-A on a Sunday!? That could be a reality if one New York politician gets his way. More on his argument for why the popular chain should stay open and the locations that could be impacted.

In today’s big story, we’re looking at how a forthcoming Apple Watch ban is causing havoc for the tech giant.

What’s on deck: 

But first, heavy is the head that wears the crown.

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The big story

A bad apple

T’was the night before Christmas, and Apple was shook
Not one engineer was resting, not even Tim Cook
Some of the stockings risked being empty and bare
Over fears of an Apple Watch ban that hung in the air

The holidays are a stressful time for Apple. A lot goes into ensuring their products, routinely Christmas list staples, get to where they need to be in time for the big day. 

But now the world’s most ubiquitous tech company has an even bigger problem: a looming ban on one of its most popular products. 

The Apple Watch Series 9 lineup and the Apple Watch Ultra 2, the newest iterations of the company’s popular smartwatch, are scheduled to be pulled from Apple’s online store (December 21) and Apple Store locations (December 24) this week, writes Business Insider’s Haley Tenore.   

The reason stems from a ruling by the International Trade Commission that the watches’ use of blood oxygen tracking violated a patent held by health-tech company Masimo.

Of course, Apple hasn’t completely thrown in the towel. In a last-minute bid to avoid the ban, Apple’s engineers are reportedly scrambling to develop a workaround to avoid infringing on the patent, according to BI’s Steven Tweedie and Haley. In its simplest form, that would involve a software update. But Masimo has already argued changing the physical hardware of the watches is necessary, which would be a much bigger lift. 

There’s also the potential for a White-House intervention wherein President Joe Biden vetoes the regulator’s ruling. But that’d mean the president would not only be picking sides between two American companies but also favoring one of the tech giants he pledged to scrutinize under his administration.

The Apple Watch fiasco isn’t Apple’s only problem heading into 2024. 

Despite a $3 trillion market cap that has it on track to finish the year as the world’s most valuable company for the fifth year running, Apple has its fair share of headaches, BI’s Hasan Chowdhury writes.

In addition to the Apple Watch ban, the tech giant is banking on its newest product — the Vision Pro — to take off. It’s a risky gambit, as virtual- and augmented-reality products have yet to catch on in a big way. 

And China, Apple’s most important international market, has also proven difficult. The rise of a local iPhone rival (Huawei’s 5G Mate 60 Pro) and increased US-China tensions have put Apple in a tricky predicament.

3 things in markets

1. Don’t look now, but the Fed could have a liquidity issue in 2024. The Fed has been reducing the size of its balance sheet by almost $100 billion a month in its bid to fight inflation. But if Treasury issuance and interest rates remain high into next year, that could eventually lead to a liquidity shortage for banks.
2. Bet on these companies looking to lead AI’s international revolution. While US-based AI stocks are overcrowded, opportunities exist in emerging markets, according to a fund manager at a $551 billion firm. These six stocks, including Infosys and Lenovo, will play a key role in the broader adoption of AI.
3. Don’t count your rate cuts before they hatch, according to BlackRock. Rick Rieder, the firm’s bond guru, doesn’t agree with market speculation that the Fed will start cutting interest rates in March. Instead, he thinks the market reacted prematurely, and chair Jerome Powell won’t be as aggressive with cuts.

3 things in tech

1. GitHub execs say coders are rushing to use its AI-coding tool. Copilot can help write and suggest code. Despite copyright concerns, it’s been a hit among developers — they often use it to help auto-complete their code.
2. Nearly a third of Gen Z says tech makes them lonelier and spend more money. Around 29% of Gen Zers said in a survey that technology makes them more lonely. But for others, it has the opposite effect, with 35% of young people saying it makes them feel less isolated. Among older generations, however, technology had less of an impact on their loneliness.
3. Bill Gates’ technology predictions. He published a six-page blog post with some of his predictions for tech in 2024. Gates believes AI will “supercharge” the innovation pipeline and radically change jobs, healthcare, and education.

3 things in business

1. Elon Musk is launching a new private K-12 school as soon as this summer. His Ad Astra School quietly moved to Texas, joining other tech-centric “microschools.” It’s part of Musk’s mysterious new nonprofit, which has generated buzz for plans to eventually build a futuristic university.
2. The future of homebuying is going to be a whole lot better. A mounting wave of lawsuits accuses some of the country’s biggest real estate brokerages of conspiring to rip off consumers. That means the old way of buying and selling homes could disappear forever.
3. TikTok is advising Shop merchants to go live for at least two hours. Some are even committing to eight- or 24-hour sell-a-thons. Livestreams are a key method for merchants to promote products and drive sales through TikTok Shop.

In other news

What’s happening today

• “Percy Jackson and the Olympians” is now on Disney+. Two of the eight episodes will be available to watch.
• Happy birthday, Kylian Mbappé. Jonah Hill, JoJo, and Bob Morley were also born on this day.
• Earnings today: General Mills, Micron Technology, Toro, BlackBerry, and other companies.

For your bookmarks

Simple, festive desserts

These 10 festive desserts need five — or fewer — ingredients. The list of sweet treats includes peppermint bark, chocolate fudge, and sugar cookies.

The Insider Today team: Dan DeFrancesco, deputy editor and anchor, in New York City. Diamond Naga Siu, senior reporter, in San Diego. Hallam Bullock, editor, in London. Jordan Parker Erb, editor, in New York. Hayley Hudson, director, in Edinburgh. Lisa Ryan, executive editor, in New York.