BUSINESS NEWS MARCH 30TH, 2016
AMERICANS HAVE A BUDGET DEFICIT
Since the Great Depression, Americans have been wary about spending. However, nearly 70 years after the worst crash in American history, people have started spending again. A study published by the Pew Charitable Trusts showed that the average American spends approximately $36,000 per year, up nearly 25% from 1996. The study further showed that 75% of families’ total spending was on housing, transportation, food and clothing. Everyone is being affected by the decrease in income.
BOEING TO INITIATE MASSIVE LAYOFFS
The aircraft manufacturing Goliath announced that it would be cutting approximately 4,000 jobs in order to keep pace with its rival, a company known as Airbus. In order to achieve this, Boeing spokesmen say that they should be able to cut 2% of its worldwide staff. It has slashed production of its 737 in order to facilitate a transition to the 737 MAX, the updated version of its best selling plane. Boeing also plans to cut deliveries by 20 commercial jets in 2016. Thus far, Boeing shares are down 9%.
BASKETBALL TEAM GIVES AID TO FLINT
The Detroit Pistons, in an effort to help the suffering city of Flint, Michigan, have donated $25 million. Tom Gores, owner of the Detroit Pistons, teamed up with Steve Steinour, CEO of Huntington Bank, in order to finance these donations. The two have planned for $22 million to go to small businesses, $2 million to go to mortgage financing and $1 million to go to businesses damaged by the water crisis.
TATA STEEL’S BRITISH PLANTS ‘MUST BE SOLD WITHIN WEEKS’
Britain battled to save its steel industry on Wednesday after Tata Steel put its British operations up for sale, leaving thousands of jobs at risk as a result of cheap Chinese imports. JobsThe move comes less than three months before Britons vote on the country's membership of the European Union in a referendum dominated by concerns about the economy.The government said it was working to broker a deal with potential buyers after Tata Steel sought to end its almost decade-long venture in Britain, which employs 15,000 people but has been hit by high costs and Chinese competition.