The daily business briefing: March 23, 2016
1.
European stocks bounced back on Wednesday after falling Tuesday on security concerns stoked by the Brussels terrorist bombings. The pan-European FTSEurofirst 300 index rose by half a percent as all of its major markets showed improvement. The markets got a boost from better-than-expected indicators of business sentiment in the region. Travel-related shares were hit particularly hard after the explosions at the Brussels airport and a subway station, but they posted modest gains early Wednesday.
2.
Lumber Liquidators will pay $2.5 million to settle allegations that some of its imported flooring contained levels of cancer-causing formaldehyde that violated California air-safety standards. The penalty, announced Tuesday, marked the end of an inquiry by the California Air Resources Board. Last year, Lumber Liquidators entered a guilty plea for environmental crimes associated with the China-made flooring, and paid $13.2 million in fines. The company's stock soared by about 15 percent Tuesday after the CARB case was resolved.
3.
The Supreme Court on Tuesday discussed Puerto Rico's efforts to use a bankruptcy law to avoid defaulting on billions of dollars in public debt. Puerto Rico hopes to revive a local law that would give the commonwealth leeway in restructuring $70 billion in debt, including $20 billion owed by its public utilities. A federal appeals court said a U.S. bankruptcy law lets states authorize such bankruptcy filings, but bars Puerto Rico (and Washington, D.C.) from doing it. The justices appeared split on the issue.
4.
Starbucks pledged Tuesday to start donating 100 percent of its leftover food to the needy. The coffee shop chain is partnering in the initiative with the nonprofit organization Feeding America and food collection group Food Donation Connection. The network will oversee the distribution of perishable, ready-to-eat meals from Starbucks' 7,600 outlets to food banks.
5.
Armani, one of the biggest names in fashion, pledged Tuesday to eliminate fur from its clothing starting with its fall 2016 collections. Giorgio Armani said in a statement that technological advances now offer "valid alternatives" to fur, making "the use of cruel practices unnecessary as regards animals." The Humane Society of the United States, the Fur Free Alliance, and People for the Ethical Treatment of Animals have periodically campaigned against the Italian fashion house for its use of rabbit fur.