BUSINESS NEWS APRIL 5TH, 2016
President Obama made a forceful case Tuesday for stopping corporations from moving their headquarters overseas in order to avoid U.S. taxes, saying they are taking advantage of the American economic system and saddling the middle class with the bill. These companies “renounce their citizenship, but get all of the rewards of being an American company,” Obama said at a press conference Tuesday. Obama praised regulations issued the day before by the Treasury Department aimed at making more difficult these so-called inversions, in which U.S. companies combine with foreign firms to reduce U.S. taxes.
STARBUCKS PLANS TO OPEN BIGGEST STORE IN HISTORY
Starbucks Corp. is opening a sprawling new Roastery-branded store in New York’s Meatpacking District, part of a push to bolster growth with larger locations that offer experiences to customers.The cafe will be its biggest ever: a 20,000-square-foot (1,900-square-meter) store at 61 Ninth Ave., Starbucks said in a statement on Tuesday. The location, near Chelsea Market, won’t be ready until 2018.Chief Executive Officer Howard Schultz has said he wants to bring the Roastery model to cities globally, a bet that a new format can bring fresh vigor to the company. It’s a combination of a roasting facility and cafe that tries to teach customers more about coffee brewing and bean origins
FORD, BUILDING A PLANT IN MEXICO, DRAWS FIRE FROM TRUMP
Ford would build a new assembly plant for small cars in Mexico, continuing a trend of automakers increasing production there because of lower wages and favorable trade laws.Ford, the nation’s second-largest auto manufacturer, said it would invest $1.6 billion to construct a plant that will employ 2,800 workers and begin making vehicles by 2018.Several auto companies are expanding operations in Mexico, which has become a major auto manufacturing center. Last year Mexico produced 3.4 million vehicles, of which about 80 percent were exported to the United States and elsewhere.