The daily business briefing: May 3, 2016
1.
A jury on Monday ordered Johnson & Johnson to pay $55 million to a woman, Gloria Ristesund, who said the company’s talc-powder feminine hygiene products caused her ovarian cancer. The company plans to appeal the verdict, its second straight loss. Johnson & Johnson faces 1,200 lawsuits filed by people accusing it of inadequately warning consumers about potential cancer risks from its talc-based products. Johnson & Johnson spokeswoman Carol Goodrich said research over 30 years has shown cosmetic talc to be safe.
2.
Puerto Rico defaulted on $367 million in debt payments on Monday, increasing pressure on Congress to address the U.S. territory's debt crisis. Puerto Rico's Government Development Bank, which funds most of its public agencies, was due to make a $422 million debt payment on Monday, but instead paid just $22 million in interest and swapped $33 million in debt for paper with later maturities. Another $2 billion is due this summer, and Treasury Secretary Jacob Lew warned Congress that a "taxpayer-funded bailout" could become its only option unless it approves proposed restructuring legislation.
3.
The Supreme Court on Monday rejected a challenge to Seattle's $15 minimum wage law. The law, similar to those approved in several cities, requires companies with more than 500 employees nationwide to hike wages to $15 an hour by 2018, while smaller businesses have until 2021. The International Franchise Association and a handful of local businesses said the policy was unfair to franchises, because they are really small businesses but are being treated as parts of massive brands, such as McDonald's and Burger King.
4.
U.S. stock futures dropped early Tuesday after weak manufacturing data from China and an interest rate cut in Australia fueled what one analyst called "a little bit of panic" about economic trouble in the region. Dow Jones Industrial Average futures were down 100 points, or 0.6 percent, early Tuesday. Pfizer shares, however, gained before the bell after the drug maker reported better-than-expected quarterly sales. On Monday, U.S. stocks closed up near the day's highs after U.S. manufacturing data indicated slow-but-steady economic growth.
5.
Amazon is taking its free same-day deliveries to the Bronx and Chicago's South Side following complaints that the data-driven boundaries for the service excluded some minority communities. The online retail giant promised to expand the service in three cities after a Bloomberg News analysis detected racial discrepancies in Atlanta, Boston, Chicago, Dallas, New York, and Washington. "I am pleased to see that Amazon.com and its CEO, Jeff Bezos, are doing the right thing," said Rep. Bobby Rush, a Democrat whose district includes Chicago.