The daily business briefing: May 3, 2016
Johnson & Johnson ordered to pay $55 million in talc-powder case, Congress under pressure after Puerto Rico default, and more

- 1. Johnson & Johnson loses $55 million talc-powder cancer verdict
- 2. Puerto Rico defaults on $367 million
- 3. Supreme Court rejects challenge to Seattle's $15 minimum wage
- 4. Bad news on China manufacturing weighs on U.S. stocks
- 5. Amazon expands same-day deliveries under pressure over minority exclusion

1. Johnson & Johnson loses $55 million talc-powder cancer verdict
A jury on Monday ordered Johnson & Johnson to pay $55 million to a woman, Gloria Ristesund, who said the company’s talc-powder feminine hygiene products caused her ovarian cancer. The company plans to appeal the verdict, its second straight loss. Johnson & Johnson faces 1,200 lawsuits filed by people accusing it of inadequately warning consumers about potential cancer risks from its talc-based products. Johnson & Johnson spokeswoman Carol Goodrich said research over 30 years has shown cosmetic talc to be safe.
2. Puerto Rico defaults on $367 million
Puerto Rico defaulted on $367 million in debt payments on Monday, increasing pressure on Congress to address the U.S. territory's debt crisis. Puerto Rico's Government Development Bank, which funds most of its public agencies, was due to make a $422 million debt payment on Monday, but instead paid just $22 million in interest and swapped $33 million in debt for paper with later maturities. Another $2 billion is due this summer, and Treasury Secretary Jacob Lew warned Congress that a "taxpayer-funded bailout" could become its only option unless it approves proposed restructuring legislation.
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.
USA Today The Wall Street Journal
3. Supreme Court rejects challenge to Seattle's $15 minimum wage
The Supreme Court on Monday rejected a challenge to Seattle's $15 minimum wage law. The law, similar to those approved in several cities, requires companies with more than 500 employees nationwide to hike wages to $15 an hour by 2018, while smaller businesses have until 2021. The International Franchise Association and a handful of local businesses said the policy was unfair to franchises, because they are really small businesses but are being treated as parts of massive brands, such as McDonald's and Burger King.
4. Bad news on China manufacturing weighs on U.S. stocks
U.S. stock futures dropped early Tuesday after weak manufacturing data from China and an interest rate cut in Australia fueled what one analyst called "a little bit of panic" about economic trouble in the region. Dow Jones Industrial Average futures were down 100 points, or 0.6 percent, early Tuesday. Pfizer shares, however, gained before the bell after the drug maker reported better-than-expected quarterly sales. On Monday, U.S. stocks closed up near the day's highs after U.S. manufacturing data indicated slow-but-steady economic growth.
5. Amazon expands same-day deliveries under pressure over minority exclusion
Amazon is taking its free same-day deliveries to the Bronx and Chicago's South Side following complaints that the data-driven boundaries for the service excluded some minority communities. The online retail giant promised to expand the service in three cities after a Bloomberg News analysis detected racial discrepancies in Atlanta, Boston, Chicago, Dallas, New York, and Washington. "I am pleased to see that Amazon.com and its CEO, Jeff Bezos, are doing the right thing," said Rep. Bobby Rush, a Democrat whose district includes Chicago.
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.
-
Book reviews: ‘Red Scare: Blacklists, McCarthyism, and the Making of Modern America’ and ‘How to End a Story: Collected Diaries, 1978–1998’
Feature A political ‘witch hunt’ and Helen Garner’s journal entries
By The Week US Published
-
The backlash against ChatGPT's Studio Ghibli filter
The Explainer The studio's charming style has become part of a nebulous social media trend
By Theara Coleman, The Week US Published
-
Why are student loan borrowers falling behind on payments?
Today's Big Question Delinquencies surge as the Trump administration upends the program
By Joel Mathis, The Week US Published
-
'Like a sound from hell': Serbia and sonic weapons
The Explainer Half a million people sign petition alleging Serbian police used an illegal 'sound cannon' to disrupt anti-government protests
By Abby Wilson Published
-
The arrest of the Philippines' former president leaves the country's drug war in disarray
In the Spotlight Rodrigo Duterte was arrested by the ICC earlier this month
By Justin Klawans, The Week US Published
-
Ukrainian election: who could replace Zelenskyy?
The Explainer Donald Trump's 'dictator' jibe raises pressure on Ukraine to the polls while the country is under martial law
By Sorcha Bradley, The Week UK Published
-
Why Serbian protesters set off smoke bombs in parliament
THE EXPLAINER Ongoing anti-corruption protests erupted into full view this week as Serbian protesters threw the country's legislature into chaos
By Rafi Schwartz, The Week US Published
-
Who is the Hat Man? 'Shadow people' and sleep paralysis
In Depth 'Sleep demons' have plagued our dreams throughout the centuries, but the explanation could be medical
By The Week Staff Published
-
Why Assad fell so fast
The Explainer The newly liberated Syria is in an incredibly precarious position, but it's too soon to succumb to defeatist gloom
By The Week UK Published
-
Romania's election rerun
The Explainer Shock result of presidential election has been annulled following allegations of Russian interference
By Sorcha Bradley, The Week UK Published
-
Russia's shadow war in Europe
Talking Point Steering clear of open conflict, Moscow is slowly ratcheting up the pressure on Nato rivals to see what it can get away with.
By The Week UK Published