The daily business briefing: June 16, 2017
Rape victim sues Uber over mishandling of medical records, Takata prepares to file for bankruptcy protection, and more
India rape victim accuses Uber of mishandling her medical records
A Texas woman is suing Uber accusing the ride-hailing service of obtaining and mishandling her medical records after she was raped by her Uber driver in India in 2014. Lawyers for the woman, who was identified only as Jane Doe, filed the lawsuit after Recode reported that Eric Alexander, an Uber executive who has since left the company, got the records and showed them to colleagues who were discussing the theory that a rival company had planted the story to sabotage Uber. The lawsuit accuses Uber, CEO Travis Kalanick, Alexander, and senior executive Emil Michael of intrusion into the woman's private affairs and defamation. The case comes as Uber shakes up its management in an attempt to remake its corporate culture after a sexual harassment investigation.
Takata expected to file for bankruptcy protection
Japanese auto parts maker Takata Corp. plans to file for bankruptcy protection as soon as next week, following a costly, massive recall of potentially faulty airbag inflators that have been linked to at least 17 deaths worldwide. About 100 million Takata airbags have been affected, making the recall the biggest in automotive history. Most major automakers, including General Motors and Honda, have been affected. The bankruptcy filings, first in Japan and then by the company's U.S. subsidiary, will help pave the way for a sale of the company to Key Safety Systems, a U.S. airbag maker owned by China's Ningbo Joyson Electronic Corp. Shares of the company on the Tokyo stock exchange were temporarily suspended due to the news.
Trump orders expansion of federal apprenticeships
President Trump on Thursday announced an executive order expanding federal apprenticeship programs, saying the move to create nearly 5 million apprenticeships in five years will help people left behind in the economic recovery find jobs. "Apprenticeships place students into great jobs without the crippling debt of traditional four-year college degrees," Trump said. "Instead apprentices earn while they learn." Trump plans to redirect $100 million of federal job training money to supplement the current $90 million apprenticeship program. Some corporate groups praised the plan, saying apprenticeships give companies flexibility they need, but some economists don't believe that a "skills gap" is holding back the economy.
Trump expected to roll back Obama's Cuba detente
President Trump is expected Friday to roll back some of the policies former President Barack Obama put in place under an effort to restore ties with Cuba. Trump will tighten rules that had made it easier for Americans to travel to the communist-run Caribbean island, according U.S. officials who have seen a draft of Trump's plans. Trump also reportedly will tighten restrictions against U.S. companies doing business with a conglomerate controlled by Cuba's military that has hotels and other businesses. Despite those steps, Trump is not expected to sever diplomatic ties Obama restored with the former Cold War foe. Trump will spell out his Cuba policies in a speech in Miami.
Greece's lenders agree to $9.5 billion in new loans
Greece's European lenders agreed Thursday to release $9.5 billion in new loans Athens needs to make big bond payments due in July. Meeting in Luxembourg, the debt-burdened country's creditors reinforced their commitment to providing Greece further relief if necessary, but they did not offer specifics on Greece's path after the end of the bailout in the middle of next year. The announcement of the release of the funds relieved concerns over whether Greece would be able to make the July payment and sent the Athens Stock Exchange to a two-year high on Friday. The news also helped lift stocks across Europe, with the Stoxx Europe 600 index rising by 0.6 percent. U.S. stock futures edged higher early Friday after slipping slightly on Thursday.