Must Read Money Stories for Wednesday, June 29

by June 29, 2016

Must Read Money Stories

Ikea Recall

Ikea is recalling approximately 29 million pieces of furniture that critics have called responsible for the death of several children. The Consumer Product Safety Commission blames certain Ikea chests and dressers for crushing six toddlers since 1989, the New York Times writes. The reported number of injured children is 36. Ikea USA’s president said the furniture was only dangerous due to incorrect assemblage that neglected to strap it to the wall. Regulators have suggested that Ikea may not be the lone subject of their investigation.

A Heavy Price

Volkswagen’s tab for cheating on U.S. emission tests could reach as high as $15 billion. Reuters reports that the car company will use approximately $10 billion to buy back vehicles while allocating several billion dollars for funding clean energy in the U.S. The company settled with the Justice Department, the Federal Trade Commission, the Environmental Protection Agency and various regulators in California after admitting to violating the U.S. Clean Air Act. Volkswagen said it installed software that allowed some 11 million cars to pass their emissions tests while still producing a pollutant level that exceeded the legal limit.

Saudi Oil Frenzy

The potential decision of Saudi Arabia to release an initial public offering of its oil company has raised excitement for investment banks. Bloomberg writes that banks worldwide are jostling to come into the good graces of the country. Some are diversifying their staff to include more Saudis while sending executives to Riyadh, the nation’s capital. The Kingdom of Saudi Arabia is said to be trying to reduce its oil dependence by selling off state assets.

Stocks Bounce Back

In case you haven’t read enough about the Brexit, here’s another headline. Reuters reports that the U.S. stock market rebounded Tuesday after two days of losses sparked by Britain’s decision to leave the European Union. Global equity markets had dropped by $3 trillion since the vote, but most of them saw an uptick Tuesday. Some investors and analysts said the change reflected the relative stability of the U.S. economy, which eventually counterbalanced the “shock” of the Brexit.

Ikea” by flickr user “Seth Werkheiser” CC license CC by-SA-2.0