BUSINESS NEWS JANUARY 4th 2016
U.S. MANUFACTURERS END 2015 ON A SOUR NOTE
Stocks on Wall Street crashed with the Dow ending the day down by close to 270 points. Fresh fears about a slowdown in Chinese economy ignited concerns about global growth thus spooking the markets. American manufacturers ended the year 2015 on a sour note as business contracted in December for the second straight month. The Institute for Supply Management said its manufacturing index slipped to 48.2% last month from 48.6% in November. Readings under 50% indicate more companies are shrinking instead of expanding. The manufacturing sector has been hit by a stronger dollar, decline in exports and investment cutbacks by the energy and drilling equipment sectors.
For more on the story log on to http://www.marketwatch.com/story/us-manufacturers-still-struggling-ism-finds-2016-01-04
U.S. CONSTRUCTION SPENDING DIPS IN NOVEMBER
U.S. construction spending shrunk to 0.4% in November to a seasonally adjusted annual rate of $1.12 trillion, according to the Commerce Department. The October data, originally reported as 1%, was revised down to 0.3%. In November, private construction spending declined by 0.2%, but was 12.1% higher on a year-on-year basis.
For more on the story log on to http://www.marketwatch.com/story/construction-spending-dips-04-in-november-2016-01-04
U.S. SUES VOLKSWAGEN OVER EMISSIONS SCANDAL
The U.S. Department of Justice has filed a suit against Volkswagen, alleging it installed illegal emissions defeat devices in nearly 600,000 diesel-engine vehicles. The civil complaint, filed on behalf of the Environmental Protection Agency, alleges that the German auto maker violated the Clean Air Act. The defeat device caused vehicles to exceed the EPA’s standards. A Volkswagen Spokesperson said the firm is developing remedies to bring the vehicles into full compliance with regulations as soon as possible.
For more on the story log on to http://www.wsj.com/articles/u-s-sues-volkswagen-over-emissions-scandal-1451932799?mod=mktw
STARBUCKS ADDS A NEW DRINK TO ITS MENU
Starbucks customers will be able to purchase a Latte Macchiato, a new drink on the coffee chain’s menu in the U.S., Canada and select parts of Latin America. The latte macchiato contains just two ingredients, espresso and milk. The coffee chain is hoping the latte macchiato matches the success of the flat white, a drink it introduced last year.
For more on the story log on to http://www.cosmopolitan.com/food-cocktails/news/a51490/starbucks-introduces-latte-macchiato/