The daily business briefing: May 18, 2017
Trump's troubles drag down stocks, Ford announces fewer job cuts than expected, and more
- 1. Stocks plunge as Trump's troubles scare investors
- 2. Ford announces 1,400 salaried job cuts, far fewer than expected
- 3. Russian bank helped finance Trump partner in hotel project
- 4. Alphabet announces it is making Google Assistant available on iPhones
- 5. Brazilian assets drop after reports that president approved hush money
1. Stocks plunge as Trump's troubles scare investors
Global stocks dropped on Thursday, with several key Asia indexes down about 1 percent and the Stoxx Europe 600 Index losing 0.5 percent in early trading after the Justice Department appointed a special counsel to investigate ties between President Trump's campaign and Russia. U.S. stock futures edged down, too, early Thursday, after the main indexes plunged on Wednesday after reports that Trump might have asked then-FBI director James Comey to drop the investigation into former national security adviser Michael Flynn's Russia ties. Critics said the news could expose Trump to allegations of obstruction of justice, raising doubts he will be able to follow through on promised policies to stimulate the economy. The Dow Jones industrial average fell by 372 points, or about 1.8 percent, its biggest loss since September. The S&P 500 lost about 1.8 percent, too, while the Nasdaq composite dropped by 2.6 percent.
2. Ford announces 1,400 salaried job cuts, far fewer than expected
Ford Motor Co. said Wednesday that it planned to cut 1,400 salaried jobs in North America and Asia, far fewer than the 20,000 job cuts news outlets reported earlier in the week. Ford said it would offer eligible employees voluntary early retirement and other incentives to reduce its workforce as part of an effort to cut costs and boost its stock price. Ford said the plan would reduce a group of 15,000 managers and other non-production employees by about 10 percent, with a corresponding reduction in labor costs for that part of its workforce. Ford shares fell by more than 2 percent on Wednesday as broader markets fell.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
3. Russian bank helped finance Trump partner in hotel project
The Russian bank VEB, which has direct ties to Russian President Vladimir Putin, provided hundreds of millions of dollars in critical financing to a President Trump's one-time partner on a Toronto hotel project, The Wall Street Journal reported Wednesday. At the time of the deal, Putin sat on the supervisory board of the state-run bank, which the Journal says the Russian government uses to finance politically important projects. Trump's partner, Russian-Canadian developer Alexander Shnaider, financed the hotel after selling his company's share in a Ukrainian steelmaker for $850 million. The unknown buyer, backed by VEB, was reportedly acting on behalf of the Russian government. The payment came through at a time when the project was "financially troubled," the Journal said.
4. Alphabet announces it is making Google Assistant available on iPhones
Google parent Alphabet said Wednesday that it would make its digital personal assistant available to iPhone users, adding a rival to Apple's Siri on its own smartphones. Google debuted its Google Assistant last year on its own phones, which use the Android system that runs on most of the world's devices. The company has since offered the app, which lets users accomplish various tasks with voice commands, on more and more devices. The push to get onto Apple's phones gives it access to a smaller but lucrative part of the market.
5. Brazilian assets drop after reports that president approved hush money
Brazilian assets plunged overseas overnight, and the country's stocks were expected to plunge on Thursday following a report by a Brazilian newspaper that President Michel Temer endorsed a hush money payment to a witness in a massive corruption scandal. O Globo said it had obtained a recording, made by a food company executive as part of his plea bargaining, in which Temer discussed a payment to politician Eduardo Cunha, who was jailed in March for corruption, money laundering, and tax evasion. Police reportedly later filmed Cunha receiving $143,000. Temer denied the allegations.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Harold Maass is a contributing editor at The Week. He has been writing for The Week since the 2001 debut of the U.S. print edition and served as editor of TheWeek.com when it launched in 2008. Harold started his career as a newspaper reporter in South Florida and Haiti. He has previously worked for a variety of news outlets, including The Miami Herald, ABC News and Fox News, and for several years wrote a daily roundup of financial news for The Week and Yahoo Finance.
-
Movies to watch in November, from 'Wicked' to 'Gladiator II'
The Week Recommends A major musical adaptation, a Roman Empire sequel and a movie where Santa gets kidnapped
By Anya Jaremko-Greenwold, The Week US Published
-
Where does Elon Musk go from here?
TODAY'S BIG QUESTION After gambling big on Donald Trump's reelection bid, the world's wealthiest man is poised to become even more powerful — and controversial — than ever
By Rafi Schwartz, The Week US Published
-
Usha Vance: a political spouse with a 'conspicuous resume'
In the Spotlight The new second lady plays a behind-the-scenes role
By Joel Mathis, The Week US Published
-
Has the Taliban banned women from speaking?
Today's Big Question 'Rambling' message about 'bizarre' restriction joins series of recent decrees that amount to silencing of Afghanistan's women
By Harriet Marsden, The Week UK Published
-
Cuba's energy crisis
The Explainer Already beset by a host of issues, the island nation is struggling with nationwide blackouts
By Rebekah Evans, The Week UK Published
-
Putin's fixation with shamans
Under the Radar Secretive Russian leader, said to be fascinated with occult and pagan rituals, allegedly asked for blessing over nuclear weapons
By Harriet Marsden, The Week UK Published
-
Chimpanzees are dying of human diseases
Under the radar Great apes are vulnerable to human pathogens thanks to genetic similarity, increased contact and no immunity
By Harriet Marsden, The Week UK Published
-
Deaths of Jesse Baird and Luke Davies hang over Sydney's Mardi Gras
The Explainer Police officer, the former partner of TV presenter victim, charged with two counts of murder after turning himself in
By Austin Chen, The Week UK Published
-
Quiz of The Week: 24 February - 1 March
Puzzles and Quizzes Have you been paying attention to The Week's news?
By Sorcha Bradley, The Week UK Published
-
Will mounting discontent affect Iran election?
Today's Big Question Low turnout is expected in poll seen as crucial test for Tehran's leadership
By Sorcha Bradley, The Week UK Published
-
Sweden clears final NATO hurdle with Hungary vote
Speed Read Hungary's parliament overwhelmingly approved Sweden's accession to NATO
By Peter Weber, The Week US Published