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The Spokesman-Review Newspaper
Spokane, Washington  Est. May 19, 1883

In brief: China scrambles to reassure jittery stock traders

From Wire Reports

BEIJING – Chinese authorities are scrambling to reassure jittery investors after soaring stock markets plunged, threatening to set back economic reform plans.

The market benchmark soared 150 percent from the start of the boom late last year in one of the world’s fastest runups. It hit a peak June 12 and then reversed course and plunged 28 percent. It rebounded temporarily Tuesday before losing 5.2 percent Wednesday.

Hours after trading closed Wednesday, the country’s two major stock exchanges announced they will lower security transaction fees by 30 percent effective Aug. 1, in a move seen aimed at shoring up market confidence.

A prolonged slump could disrupt Communist Party plans to use stock markets to make China’s state-dominated economy more productive.

HP goes forward with split

SAN FRANCISCO – Hewlett-Packard is moving forward with plans to split into two companies, filing paperwork to create a new entity that will sell commercial technology, while a separate spinoff will sell personal computers and printers.

HP said in a regulatory filing Wednesday that the new company called Hewlett Packard Enterprise will include units of the old HP that sold computer hardware, software and tech services for large organizations. CEO Meg Whitman, who will lead the new enterprise company, said in a statement that the split remains on track to occur by November.

Robot kills VW contractor

BERLIN – A robot has killed a contractor at one of Volkswagen’s production plants in Germany, the automaker said Wednesday.

The man died Monday at the plant in Baunatal, north of Frankfurt, VW spokesman Heiko Hillwig said.

The 22-year-old was part of a team that was setting up the stationary robot when it grabbed and crushed him against a metal plate, Hillwig said.

He said initial conclusions indicate that human error was to blame, rather than a problem with the robot.

WASHINGTON – U.S. construction spending posted a solid gain in May, pushing total activity to the highest point since fall 2008, with the strength led by a big jump in nonresidential projects.

Total construction spending increased 0.8 percent in May, following an even bigger 2.1 percent advance in April, the Commerce Department reported Wednesday. The gains pushed total activity to a seasonally adjusted annual rate of $1.04 trillion, the highest level since October 2008.

All major categories showed increases in May, led by a 1.5 percent rise in nonresidential building, which reflected increases in spending on hotels, manufacturing facilities and amusement parks. Residential construction was up a more modest 0.3 percent. Spending on government projects rose 0.7 percent.