The daily business briefing: June 29, 2016

Stocks regain some of their Brexit losses, Toyota recalls 1.4 million vehicles over non-Takata airbags, and more

The Toyota logo
(Image credit: KAZUHIRO NOGI/AFP/Getty Images)

1. Stocks regain some of Brexit plunge

The Dow Jones Industrial Average gained 269 points or 1.6 percent on Tuesday, ending a two-day sell-off sparked by Thursday's vote by the U.K. to leave the EU. The Dow lost 900 points on Friday and Monday. The S&P 500 rose by 1.8 percent and the tech-heavy Nasdaq by 2.1 percent. London's FTSE 100 index erased half of its losses, rising 2.6 percent. Paul Hickey, co-founder of Bespoke Investment Group, said it was too soon to say whether the "relief rally" would last.

MarketWatch USA Today

2. Toyota announces recall over non-Takata airbags

Toyota announced Wednesday that it was recalling 1.43 million vehicles, including 495,000 sold in North America, over faulty airbags. The recall involves Prius and Lexus models sold from 2008 to 2012. The vehicles have airbags with cracked inflators that could break apart, resulting in "an increased risk of injury," Toyota said. The airbags were not made by Takata, the supplier whose inflators have been linked to 14 deaths and triggered the largest auto safety recall in history, affecting more than 100 million vehicles.

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BBC News The New York Times

3. IKEA recalls chests and dressers after fatal tip overs

IKEA is recalling 36 million chests and dressers in the U.S. and Canada after the furniture was linked to the deaths of six children, the U.S. Consumer Product Safety Commission said on Tuesday. The recall involves roughly 100 families of chests and dressers, including six of the Swedish furnishings retailer's MALM models. The furnishings involved in the deaths were not anchored to walls, and tipped over. "It is simply too dangerous to have the recalled furniture in your home unanchored, especially if you have young children," CPSC Chairman Elliott Kaye said.

4. Canada and Mexico make trade and travel deal as Obama heads to summit

Canada and Mexico on Tuesday announced a deal to ease trade and travel restrictions ahead of Wednesday's annual North American Leaders Summit. Canadian Prime Minister Justin Trudeau and Mexican President Enrique Nieto unveiled the deal, which will end restrictions on Mexican travelers and open Mexico's market to Canadian beef. Pena Nieto said he, Trudeau, and President Obama stand united in support of open economies and borders despite protectionist and anti-immigration sentiment seen in the U.K.'s Brexit vote and Donald Trump's presidential campaign.

Bloomberg The New York Times

5. EU leaders warn U.K. Brexit will be costly

European leaders in Brussels on Tuesday warned British Prime Minister David Cameron that the U.K. would not be able to hold onto the benefits of European Union membership once it leaves the trading bloc. Before the meeting, German Chancellor Angela Merkel told her Parliament that British leaders would not be allowed to "cherry-pick" what they like about EU membership and discard the rest. Cameron called for the "closest possible relationship" with Europe when the U.K. negotiates the terms of its departure after last week's Brexit vote. EU leaders are meeting again on Wednesday, without Cameron.

The New York Times The Guardian

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