The daily business briefing: January 18, 2017
GM announces additional $1 billion investment in U.S. factories, Trump looms large at Davos forum, and more
GM to increase investment in U.S. plants by $1 billion
General Motors said Tuesday that it plans to increase its investment in U.S. plants by $1 billion. The announcement came days after President-elect Donald Trump tweeted criticism of the automaker's Mexican car production. Trump has threatened several major car makers with a steep border tax on vehicles made in Mexico for export to the U.S. GM said it would bring back thousands of information technology jobs from overseas. Along with manufacturing jobs, GM said it would be adding a total of 7,000 jobs in the U.S. The new investment comes on top of $2.9 billion announced last year.
Trump's plans at forefront as Davos forum kicks off
President-elect Donald Trump's Friday inauguration loomed large on the first day of the World Economic Forum at Davos, Switzerland, on Tuesday. China's President Xi Jinping pushed back against Trump's vow to renegotiate trade deals and impose border taxes on companies that export goods to the U.S. "Pursuing protectionism is like locking oneself in a dark room," Xi said in his first Davos appearance. "Wind and rain may be kept outside, but so is light and air." During his campaign, Trump accused China of manipulating its currency and enacting other policies that cost U.S. factory jobs.
Report: 18 million would lose insurance if ObamaCare repealed but not replaced
The nonpartisan Congressional Budget Office issued a report Tuesday estimating that at least 18 million people would lose health insurance in the first year if Republicans repeal ObamaCare without replacing it. The number without health insurance coverage would rise to 32 million in a decade, and premiums would double. Republicans are rushing to make good on a promise that people won't lose coverage. President-elect Donald Trump said over the weekend that he was completing a plan to provide "insurance for everybody." Sylvia Mathews Burwell, the outgoing secretary for health and human services, said that so far "we really haven't seen a plan" to replace provisions of the Affordable Care Act that Republicans want to dismantle.
Deutsche Bank agrees to $7.2 billion settlement over toxic mortgage securities
Deutsche Bank has agreed to pay $7.2 billion in a settlement with the Justice Department over its sale of toxic mortgage securities before the 2008 financial crisis, the department said on Tuesday. The bank also admitted to misleading investors. Deutsche Bank will pay a $3.1 billion civil penalty and $4.1 billion in relief to homeowners. The agreement is the largest yet relating to a single financial institution's handling of residential mortgage-backed securities. Attorney General Loretta Lynch said the bank's conduct "contributed directly to an international financial crisis." Deutsche Bank's chief executive, John Cryan, called the bank's conduct between 2005 and 2007 "unacceptable."
Walmart says it will create 10,000 U.S. jobs this year
Retail giant Walmart said Tuesday that it plans to add 10,000 retail jobs in the U.S. this year. The new hires will work in new or expanding stores, and in e-commerce. The company said it would also provide an estimated 24,000 construction jobs as it builds and remodels stores. The announcement came as U.S. companies face direct calls from President-elect Donald Trump to create U.S. jobs.