BUSINESS NEWS 25TH, 2016
U.S. stocks dropped Monday as investors brace for a barrage of earnings reports, a slew of fresh economic data and the Federal Reserve's decision Wednesday on interest rates. The Dow Jones industrial average, which has finished higher the past two weeks and three of the past four weeks, was down about 60 points, or 0.4% in afternoon trading. The broader Standard & Poor's 500 stock index was off 0.3% and the technology-packed Nasdaq composite was off 0.3%. All three indexes, however, were off their session lows. Heading into the week, both the Dow and S&P 500 were still flirting with new all-time highs, with both closely followed indexes within 2% of a new record.
Google is combating brain drain by creating a start-up incubator inside the technology giant.Dubbed "Area 120," the incubator is designed to keep employees with innovative ideas from leaving to start their own companies, said a person close to the company who was not authorized to discuss the matter publicly.The incubator will be run by longtime Google executives Don Harrison and Bradley Horowitz. Area 120 is a nod to Google's longstanding tradition of letting employees devote 20% of their time to their own projects if those projects are greenlighted by the company. Among the projects created by employees on 20% time: Gmail, AdSense and Google News.
STAGNATION IN EU, CHINA DRAG DOWN EXPORTS
India has experienced negative growth in exports due to various factors like stagnation in EU countries, slowdown in China and fall in commodity and crude oil prices, Parliament was informed on Monday.Some of the key reasons for negative export growth in the recent period include fall in global demand and commodity prices, impacting terms of trade for commodity exporters, Commerce and Industry Minister Nirmala Sitharaman said in a written reply to the Lok Sabha.Fall in crude oil prices has resulted in consequent decline in petroleum products' prices as well as export realisations, which are major items of export for India, she said.
SAUDI ARABIA APPROVES ECONOMIC REFORM PROGRAM
Saudi Arabia, crimped by low crude prices, on Monday unveiled a long-term blueprint for the kingdom’s economic transformation aimed at freeing itself from dependence on oil within the next five years. The project, approved by the Saudi cabinet, represents an ambitious attempt to lay out a new economic trajectory for the country in an era of cheap oil. It is the brainchild of Deputy Crown Prince Mohammed bin Salman, the powerful 30-year-old son of King Salman, who was entrusted by his father to lead what are likely to be jarring changes in the kingdom.