AmEx profits fall first quarter

NEW YORK – American Express’ first-quarter profits fell roughly 6% from a year earlier, but the company saw a 30% jump in spending on its namesake cards in the quarter as its cardmembers returned to their habits of shopping, traveling and dining.

The New York-based company posted a profit of $2.1 billion, or $2.73 a share, down from $2.24 billion, or $2.74 a share, a year earlier.

Last year’s results had a one-time boost to AmEx’s results, as the company released some reserves that it had set aside to cover potential losses earlier in the pandemic.

“Our strong first-quarter results demonstrated the continued business momentum we’ve achieved over the last several quarters despite the uncertain macro environment,” AmEx CEO Steve Squeri said in a statement.

Travel and entertainment companies have been saying for months that U.S. consumers are eager to get back to traveling after the two-year coronavirus pandemic, and gauging from American Express’ results, this appears to be true.

Menthol ruling sparks lobbying

WASHINGTON – As federal officials finalize a long-awaited plan to ban menthol cigarettes, dozens of interest groups have met with White House staffers to try to influence the process, which has the potential to save hundreds of thousands of lives while wiping out billions in tobacco sales.

Biden administration officials have heard from tobacco lobbyists, anti-smoking advocates, civil rights groups, small business owners and conservative think tanks.

The lobbying push underscores the far-reaching impacts of banning menthol, which accounts for over one-third of the U.S. cigarette market.

The White House concluded its review of the Food and Drug Administration’s proposal Thursday after nearly 40 virtual meetings with outside groups, according to a government website.

The FDA has pledged to lay out a detailed proposal for phasing out the flavor by month’s end, meaning an official announcement could come next week.

From wire reports