Business News at a Glance
Posted June 24, 2018 10:18 p.m. EDT
Trump’s Trade War Shuts Cheesemakers Out of Foreign Markets
As President Donald Trump’s aggressive trade measures prompt other countries to retaliate, dairy farmers and cheesemakers in Wisconsin are growing anxious about what will happen to all of the milk and cheese they churn out and typically sell overseas. “If export markets get shut off, I could see us getting to the point where we’re dumping our milk in the fields,” said Jeff Schwager, president of Sartori Co. The ramifications of the president’s protectionist approach are beginning to be felt as the dairy industry now faces substantial tariffs on products it exports as Mexico, Canada and other countries retaliate against Trump’s steel and aluminum tariffs.
States Take On Soaring Prices of New Drugs
New York state officials are demanding that Vertex Pharmaceuticals — the maker of a drug for cystic fibrosis that costs $272,000 a year — give a steeper discount to the state’s Medicaid program. It is the first test of a new law aimed at reining in drug costs in New York’s Medicaid program. Earlier this year, Massachusetts asked the federal government for permission to limit its coverage in an effort to secure larger discounts from drugmakers. Other states, like California and Vermont, have passed laws requiring drug companies to turn over certain financial details if they raise prices significantly.
Uber’s Big Test in London: Asking for a New Chance
Uber this week begins an appeal to reverse a decision by the British capital’s regulators to revoke its operating license. If it cannot make its case, that ruling could ultimately ban Uber cars from the city of 8.8 million, one of the company’s most lucrative markets. Uber will argue that new policies installed under chief executive Dara Khosrowshahi show a willingness to address government concerns. The case before Westminster Magistrates’ Court has ramifications far beyond London, and, given changes the city has already wrung, it could embolden others grappling with how to regulate ride-sharing services.
China Moves to Shore Up Its Economy
China gave its economy a shot in the arm on Sunday amid signs of a slowdown, as it freed up more than $100 billion for banks to use to help small businesses and heavily indebted companies. China is hoping it can help spur growth by steering loans where they are needed and blocking them where they are not. Beijing’s balancing act could soon get more difficult. President Donald Trump is ratcheting up his threats to impose more tariffs on Chinese-made goods. Beijing could be forced to reopen the lending spigots if the threats devolve into an all-out trade war.
A Moment to Reflect on Ethics, and Sip Rosé, in the South of France
A who’s who of marketing and media convened last week for the annual Cannes Lions advertising festival. Paired with the heady exuberance this year over potential ad buys was a growing sense of unease among some marketers about what kind of return they are actually getting once they pour money into big technology platforms — and also what sort of societal problems they may be unwittingly financing in the process. The mere presence of Tristan Harris, the tech ethicist who has been called “the closest thing Silicon Valley has to a conscience,” showed some of that concern.