Business news

Yesterday in New York, representatives from Argentina and some of its creditors emerged from negotiations to announce that they had failed.

As NPR's Jim Zarroli reports, this meant that the country had fallen into default for a second time in more than 12 years. The repercussions of the default are unpredictable, but it could mean that the country is shut out of the international debt markets, perhaps pushing interest rates and inflation higher.

With that here are five headlines that tell the story of Argentina's default:

New Jersey used to be known as "the nation's medicine chest," but over the past two decades, many of the state's pharmaceutical industry jobs have dried up or moved elsewhere, and left millions of square feet of office space, warehouses and laboratories sitting empty.

New York City Mayor Bill de Blasio's administration is under fire for signing off on a building plan that allows a new luxury high-rise on Manhattan's western edge to have a separate entrance for low-income residents.

About 20 percent of the units in the 33-story tower will be reserved for low- and middle-income residents. But all the affordable units will be grouped in one area, and those tenants will have to enter through a separate door.

This week is summer's sweet spot — the peak time for pool parties, fresh-picked berries and cool drinks. But for economists, it may feel more like Christmas — so much to unwrap!

Each day will bring new decisions and reports that could have a big impact on the nation's economy. So economists, investors and workers will have plenty to ponder. Here's what's happening this week:

Are corporations people? The U.S. Supreme Court says they are, at least for some purposes. And in the past four years, the high court has dramatically expanded corporate rights.

When Do Chefs And Doctors Buy Generic?

Jul 25, 2014

Pharmacists and doctors are more likely than the general public to buy generic medicine, as we reported last year. And chefs are more likely than the general public to buy generic food.

The economists who figured this stuff out recently published a new update (PDF) to their research, which caught our eye.

"Foreclosure, foreclosure, foreclosure."

Real estate broker John Susani drives down a Paterson, N.J., street where every third house seems to be abandoned or boarded up. During the boom years, money flooded into Paterson.

"The banking industry allowed everyone to be a homeowner; they gave mortgages to people [just because they were] breathing," Susani says.

In some cases, he says, home prices jumped as much as 50 percent. The homes on these streets aren't worth nearly that much anymore.

Credit Suisse Reports $770 Million Loss

Jul 22, 2014



NPR's Business News starts with big losses at Credit Suisse - really big. The Swiss bank is reporting a net loss of more than $770 million for the second quarter. That's the biggest loss for the bank since the 2008 financial crisis. Much of the loss is due to a legal settlement with U.S. tax authorities. In May, the bank pleaded guilty to helping Americans evade U.S. taxes by hiding the money in Swiss accounts. Credit Suisse paid a fine of $2.6 billion. Transcript provided by NPR, Copyright NPR.



This summer, we're also focusing on the high rate of youth unemployment and hearing what some out-of-work younger adults are doing to make ends meet. Christina Gastlelum is 32. She recently moved to Maine from New York City. She tried to keep doing her job as vice president of a nonprofit remotely which did not work out.

The Johns Hopkins Health System will pay $190 million to former patients of a gynecologist who used a small camera to secretly film examinations, in one of the largest sexual misconduct settlements involving a physician.

The Baltimore-based hospital is settling a class-action lawsuit that includes more than 7,000 women and at least 62 minors; more women will likely register with the suit.

From member station WYPR, Christopher Connelly reports:



Young people are being chased out of the labor market. Though the national unemployment rate has fallen steadily in recent months, youth unemployment remains stubbornly high, and the jobless rate is even higher among young minorities. For young people between the ages of 16 and 24, unemployment is more than twice the national rate, at 14.2 percent. For African-Americans, that rate jumps to 21.4 percent.



A federal grand jury indicted FedEx last week on charges the company knowingly shipped drugs from illegal online pharmacies. NPR's Yuki Noguchi reports the disputes over shippers' responsibilities in the illegal drug trade go back many years.

R.J. Reynolds Tobacco Co., the nation's second-largest cigarette maker, is vowing to fight a verdict of $23.6 billion in punitive damages to the widow of a smoker who died of lung cancer.

Calling the massive award "grossly excessive and impermissible under state and constitutional law," the tobacco company's CEO, J. Jefferey Raborn, said the verdict was "beyond the realm of reasonableness and fairness, and is completely inconsistent with the evidence presented."

New data released by the Department of Labor shows that raising the minimum wage in some states does not appear to have had a negative impact on job growth, contrary to what critics said would happen.

In a report on Friday, the 13 states that raised their minimum wages on Jan. 1 have added jobs at a faster pace than those that did not. The data run counter to a Congressional Budget Office report in February that said raising the minimum wage to $10.10 an hour, as the White House supports, could cost as many as 500,000 jobs.

Between the Comcast kerfuffle and big layoffs at Microsoft, we weren't at a loss for tech news this week. So here's what happened since your last wrap-up, from NPR and beyond.



NPR's Business News starts with a downsized Microsoft. Microsoft announced the biggest layoffs in its history yesterday. It's cutting 18,000 jobs worldwide over the next year - that's 14% of its workforce. The company's new CEO wants to adapt to a society and an industry increasingly dependent on mobile devices. From member station KPLU, Bellamy Pailthorp reports.

A federal grand jury has indicted FedEx on charges of assisting illegal pharmacies. Prosecutors say the shipping company knowingly distributed controlled substances, NPR's Carrie Johnson reports.

FedEx is "accused of conspiring to distribute prescription drugs to people who never met with doctors — a violation of the Controlled Substances Act," Johnson says.

She says prosecutors in San Francisco demanded that representatives for FedEx appear in court on July 29.

Since late 2007, the U.S. labor force has shrunk significantly, raising questions about where former workers have gone and why.

Now the White House Council of Economic Advisers says it has found answers and has compiled them into a detailed research report released Thursday.

As it turns out, most of the missing workers have been hiding in plain sight: They are retiring baby boomers.

Discrimination against female workers who might get pregnant in the future, or have been pregnant in the past, is against the law, the Equal Employment Opportunity Commission said this week. For the first time in 30 years, the agency has updated its rules against pregnancy discrimination.

The agency clarified several policies, including one that spells out when businesses may have to provide pregnant workers light duty and another that bans employers from forcing a pregnant worker to take leave even in cases when she's able to continue on the job.