The daily business briefing: August 2, 2016

1. Japan approves $274 billion stimulus package

The cabinet of Japanese Prime Minister Shinzo Abe on Tuesday approved $274 billion worth of financial measures meant to boost its struggling economy. Abe called the measures a "bold stimulus proposal that is an investment in the future." The plan includes infrastructure projects, low-cost loans, and other measures, with $73.5 billion in extra government spending over several years and the rest in subsidized lending and private-sector spending. Abe's government estimates the effort will increase gross domestic product by 1.3 percent over an unspecified number of years.

The New York Times The Associated Press

2. South Korea suspends sale of VW models over emissions concerns

South Korea on Tuesday suspended sales of 32 vehicle models made by Volkswagen Group pending an emissions investigation. The vehicles include Volkswagens, Audis, and Bentleys. VW had already suspended sales of most of its models a week ago in anticipation of the government's decision. Volkswagen, Europe's largest automaker, tripled its South Korea sales to 35,778 last year before losing ground after it admitted to using illegal software to cheat on emissions tests on roughly 11 million diesel vehicles worldwide.

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Reuters

3. Falling oil prices drag down stocks

U.S. stocks edged lower on Monday after oil prices dropped below $40 a barrel to their lowest level since April, before settling at $40.06. "Oil has once again re-emerged as a real driver of how investors are gauging the trend for equities," said Global Markets Advisory Group senior market strategist Peter Kenny. Rising production on top of a fuel glut dragged oil prices down 3.3 percent, the sector's worst day in just over a month. Oil prices edged higher early Tuesday.

Reuters The Wall Street Journal

4. Aetna beats expectations but drops ObamaCare expansion plan

Aetna on Tuesday posted quarterly profit and revenue growth that exceeded analysts' expectations. Chief Financial Officer Shawn Guertin said the company faced "challenges" in its products compliant with the Affordable Care Act. Aetna said it was dropping 2017 plans to expand its ACA business next year, and would review whether it would continue at all in the 15 states where it is participating in ObamaCare exchanges.

MarketWatch

5. Bottled water consumption catches up to soda

Bottled water will outsell soda for the first time this year, according to Nestle Waters, Coca-Cola Co., PepsiCo Inc., and Dr Pepper Snapple Group. Rising bottled water consumption is getting a boost from concerns over crumbling infrastructure underscored by Flint's recent water contamination crisis. At the same time, soda consumption has declined, reaching a 30-year low last year. Euromonitor says Americans will drink an average of 27.4 gallons of bottled water this year, and 1.2 gallons less of soda.

Bloomberg