US Stocks Suffer Worst Month in Three Years
US stock markets fell slightly on Monday, wrapping up the worst month for US stock markets since 2012. The Dow Jones industrial average lost 6.6 percent in August, while the S&P fell 6.3 percent and the tech-heavy Nasdaq composite slipped 6.9 percent during the month. The declines were driven by massive selloffs in recent days sparked by uncertainty about the Chinese economy. Investors have also been concerned that the Fed is getting ready to increase interest rates, which have been kept low since the onset of the recession.
Auto Union Slams GM Over China Production Speculation
Reports surfaced earlier this week that General Motors is considering importing its new Envision SUV from China, angering the United Auto Workers union (UAW), which blasted the automaker on Tuesday. The Envision is currently made in, and only available in China, but speculation has surfaced recently that the company might begin selling the model in the US. A spokesman for the company declined to comment on the reports, but UAW officials were more than happy to share their thoughts. "After the sacrifices made by US taxpayers and the US workforce to make General Motors the profitable quality company it is today, UAW members are disappointed with the tone-deaf speculation that the Envision would be imported from China," commented UAW vice president Cindy Estrada. GM has also declined comment so far about speculation that GM is considering moving peoduction of other models to China.
Target Reaches $67 Million Settlement with Visa over 2013 Data Breach
Target Corp. has reportedly agreed to pay as much as $67 million to banks that issue Visa credit cards in a settlement over a 2013 incident in which hackers stole personal information for millions of card holders. The agreement only covers Visa-related firms, and Target is working on a similar agreement with Mastercard-issuing firms. The size of the two agreements should approach the $100 million settlement paid out by Heartland Payment Systems over a similar breach in 2008. In all, the breach at Target exposed some 40 million credit and debit cardholders during the 2013 holiday shopping season.
US Housing Starts Surge to 8-Year High
The US Commerce Department reported Tuesday that housing starts surged to a near eight-year high in July as the world's largest economy continues to improve. According to the report, housing starts rose 0.2 percent last month to a seasonally adjusted annual pace of 1.21 million units. That's the fastest pace of groundbreaking on new homes since October 2007. That marks the fourth straight month in which starts were over the one million unit pace, and was the fastest pace for starts since October 2007. The pace also exceeded the consensus projection from a group of economists in a recent Bloomberg survey, which called for a pace of 1.19 million units. Combined with recent positive readings on jobs, retail sales and manufacturing, Tuesday's report helps paint a picture of a US economy that is finally approaching pre-recession health.
Google Reveals Major Restructuring Plan
Google surprised investors this week by revealing a bold new restructuring plan under which a new parent company called Alphabet Inc. will be created. As a subsidiary of Alphabet, Google will continue to run the search giant's most notable businesses, like search, Android and YouTube, while various other ventures will be organized separately under the Alphabet umbrella. Google founders Sergey Brin and Larry Page will oversee Alphabet, while Sundar Pichai will be assigned the role of CEO at Google. Check out a letter Page sent to Google employees, informing them of the restructuring, below.