Page 24 - aruba today sept 29,2015
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A24
BUSINESSTuesday 29 September 2015
Wall Street falls sharply on China growth worries Whole Foods to
slash 1,500 jobs
STEVE ROTHWELL slumped 142.53 points, or 3 lik chief market strategist at maceuticals, a Canadian in next 8 weeks
AP Markets Writer percent, to 4,543.97. Boston Private Wealth. drugmaker, to turn over
NEW YORK (AP) — Ongoing Monday’s slump put the Health care stocks are an- documents tied to price NEW YORK (AP) — Grocery
worries about the health of S&P 500 index back in a other weak link in the mar- hikes imposed earlier this chain Whole Foods is cut-
the Chinese economy and “correction,” a Wall Street ket. A sell-off in drugmakers year. The company’s U.S.- ting about 1,500 jobs over
another big sell-off in drug- term meaning a drop of extended into a second listed stock plunged $32.97, the next eight weeks as it
makers pushed the stock 10 percent or more from a week. The Nasdaq Biotech- or 17 percent, to $166.50. looks to lower prices and
market back toward its recent peak. The index is nology index dropped 6 Alcoa was among the keep up with competition.
lowest level of the year. The cuts represent about
Energy and raw mate- Traders Frank Masiello, center, and John Panin, right, talk about stock prices at the New York Stock 1.6 percent of its work-
rial companies dropped Exchange. Ongoing worries about the health of the Chinese economy and another big sell-off in force.
on reports that industrial drugmakers pushed the stock market back toward its lowest level of the year. But Whole Foods Market
profits at Chinese compa- Inc. said in a regulatory fil-
nies fell sharply in August, (AP Photo/Mark Lennihan) ing on Monday that many
heightening worries about of the reductions will come
a slowdown in the world’s down 11.7 percent from its percent, its worst day in stocks that bucked the through attrition. It an-
second-biggest econo- record close of 2,130.82, set more than four years. The trend on Monday and ticipates workers whose
my. Health care stocks fell in May of this year. sector — a recent favor- closed higher. jobs are cut will find other
sharply as drugmakers ex- Some analysts expressed ite of investors — slumped The metals maker gained jobs from the almost 2,000
tended a decline that be- surprise at the ferocity of last week after Democratic after announcing that it open positions across the
gan last week. Monday’s sell-off, given the presidential candidate Hill- will split into two indepen- company or from new jobs
Stocks have fallen sharply relative strength of the U.S. ary Rodman Clinton an- dent companies. Its baux- that’ll be created by more
in August and September economy. Hiring is coming nounced a plan to tackle ite, aluminum and casting than 100 new stores in de-
on concern that a slow- back and the housing the rising drug costs. The sec- operations will be in one velopment.
down in China is worse than market is recovering. tor has plunged 27 percent company and its engineer- Whole Foods said it has
previously thought and is “The economy here is still since reaching a peak in ing and transportation busi- added more than 9,000
spreading to other emerg- improving. There’s no rea- July. Congressional Demo- nesses will be in another. jobs in the past year and
ing market economies. The son that this selling pressure crats are also pressing a Re- The company’s stock rose created nearly 35,000 jobs
slowdown could start hurt- should be as severe as it publican committee chair- 52 cents, or 6 percent, to over the last five years.
ing U.S. companies that rely has been,” said Robert Pav- man to force Valeant Phar- $9.59.q Whole Foods was re-
on overseas demand for a cently hurt by bad pub-
large portion of their profits. licity when New York City
“Whenever the market is officials found it was over-
down, the first place to charging customers. New
look these days is China,” York City’s Department of
said John Manley, chief eq- Consumer Affairs said that
uity strategist at Wells Fargo Whole Foods stores were
Fund Management. “Right overstating the weight of
now, we need evidence some pre-packaged prod-
that China is not slowing ucts, like chicken tenders
that much and that profits and a vegetable platter.
are still going to be OK.” Whole Foods has said that
The Standard & Poor’s 500 it is taking steps to prevent
index slipped 49.57 points, overcharging, including
or 2.6 percent, to 1,881.77. training for workers and a
The index is now 14 points pledge to give away prod-
above its lowest level of the ucts if customers discover
year, set Aug. 25. they were overcharged.
The Dow Jones industrial The company has also
average lost 312.78 points, been facing intense com-
or 1.9 percent, to 16,001.89. petition, with the organic
The Nasdaq composite offerings it’s known for be-
coming more widely avail-
Hitachi pays $19M to resolve ‘improper’ payments case able.
It’s trying to appeal to a
MARCY GORDON The SEC says Hitachi paid a permanent injunction Ceresney said in a state- broader audience, with
AP Business Writer $6 million to a front com- against future violations of plans to open a new chain
WASHINGTON (AP) — Hita- pany for the African Na- the Foreign Corrupt Prac- ment. of “365” stores with lower
chi Ltd. has agreed to pay tional Congress, South Af- tices Act. prices. The first location is
$19 million to resolve U.S. rica’s ruling party. Of that, Hitachi, whose business- Hitachi sold a 25 percent set to open next year in Los
regulators’ allegations that $1 million in fees paid in a es include power systems, Angeles, and leases have
it inaccurately reported im- 2008 secret arrangement health care, defense and stake in the South African been signed for addition-
proper payments it made were masked as consult- energy, has a number of al locations in Bellevue,
to South Africa’s ruling par- ing fees in Hitachi’s books, subsidiaries in the U.S. subsidiary to the ANC front Washington; Houston; Port-
ty to win contracts to build the agency said. Hitachi It was Hitachi’s “lax” finan- land, Oregon; and Santa
power plants. won two contracts to build cial controls that enabled company, Chancellor Monica, California.
The Securities and Ex- power plants. its South African subsidiary Whole Foods shares slipped
change Commission an- Tokyo-based Hitachi nei- to make the improper pay- House Holdings, according 9 cents to $31.01 in morn-
nounced the settlement ther admitted nor denied ments and then disguise ing trading Monday. Its
Monday with the Japanese wrongdoing in the settle- them in its books, SEC En- to the SEC. That enabled shares are down about 38
conglomerate. ment, which also imposed forcement Director Andrew percent so far this year.q
Chancellor and the ANC to
share in the profits from any
power station contracts
obtained by Hitachi, the
agency said.
Representatives for Hitachi
didn’t immediately return a
request for comment.q
