Business News - part 4

Retailers Reject Apple Pay

Retailers Reject Apple Pay

BUSINESS

  • CVS, Rite Aid the latest retailers to reject Apple Pay
  • Retailers favoring the development of rival program
  • Retailers tiring of credit-card processing fees

Apple Pay debuted October 20 but it’s already encountering problems. Numerous retailers are opting not to enable Apple Pay in their stores.

Among the retailers reject the mobile wallet are CVS, Rite Aid, 7-Eleven, Target, Best Buy, Kmart, Gap and Wal-Mart. Prior to October 26, Apple Pay was enabled in CVS and Rite-Aid stores.

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Amazon Cloud Services Opens German Data Center

Amazon Cloud Services Opens German Data Center

BUSINESS

  • Center the second in Europe, 11th in world
  • Company is responding to customer demand
  • Customers concerned about storing data in foreign countries

Amazon Web Services opened a data center in Frankfort, Germany, in the hopes of attracting more German business and accommodating European growth.

The new data center is AWS’s second in Europe and the 11th globally. The company did not reveal the cost of the center, but it is estimated at $1.1 billion.

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GlaxoSmithKline Considering IPO of HIV Drug Business

GlaxoSmithKline Considering IPO of HIV Drug Business

BUSINESS

  • IPO probably won’t be available until 2016
  • HIV business is GSK’s fastest-growing unit
  • Company had disappointing third quarter

British pharmaceutical company GlaxoSmithKline PLC is considering an IPO of its HIV drug business, ViiV Healthcare, as it implements cost-cutting measures.

GSK owns 78% of ViiV. Pfizer Inc. and Shionogi & Co. hold the remaining 22%.

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Kimberly-Clark to Restructure, Cut 1,300 Jobs

Kimberly-Clark to Restructure, Cut 1,300 Jobs

BUSINESS

  • Restructuring plan to cut costs
  • Healthcare business to be spun off
  • Third-quarter revenue rose 3.4%

Personal-care products maker Kimberly-Clark has begun a restructuring plan aimed at cutting overhead costs from spinning off its healthcare unit by eliminating 1,100-1,300 jobs.

The majority of the job cuts will be salaried employees and will be completed in 2016. The cuts are expected to save the company $120 million- $140 million, but $130-$160 million in pretax charges are expected this quarter.

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Canadian Pacific Railroad, CSX Call off Talks

Canadian Pacific Railroad, CSX Call off Talks

BUSINESS

  • Merger would have faced regulatory scrutiny
  • There are few major railroads left
  • Railroads struggle to keep up with demand

Canadian Pacific Railway Ltd., the second largest Canadian railroad operator, has ended exploratory merger talks with CSX Corp., the third largest U.S. railroad operator. No additional negotiations are planned.

Canadian Pacific had proposed a transcontinental railroad which, the company said, would have alleviated congestion, promoted competition, generated significant shareholder value and improved customer service.

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Chesapeake Sells Assets in Eastern U.S. to Southwestern for $5 Billion

Chesapeake Sells Assets in Eastern U.S. to Southwestern for $5 Billion

BUSINESS

  • Sale will help relieve Chesapeake’s debt
  • Southwestern will expand its position in the area
  • Production to increase in 2015

Chesapeake Energy Corp. , the second-largest U.S. producer of natural gas, is selling its assets in the Marcellus and Utica shale formations to rival Southwestern Energy Co. for $5.38 billion to help pay down the company’s $12 billion debt.

The sale includes 435 wells on 413,000 acres in Pennsylvania and West Virginia. The area produces crude oil, natural gas and natural-gas liquids. Some of the wells are not yet connected to pipelines.

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Toyota Recalls 1.7 Million Cars Globally

Toyota Recalls 1.7 Million Cars Globally

BUSINESS

  • Majority of vehicles recalled in Asia
  • Recall is for three separate issues
  • Automakers facing increased scrutiny over recalls

Toyota Motor Corp., the world’s largest automaker, is recalling 1.75 million vehicles globally for three separate defects.

This is the automaker’s fourth global recall this year, bringing the number of vehicles recalled to 5.3 million in the United States alone. The global number of recalled vehicles is unknown, Toyota said.

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Iliad Drops Pursuit of T-Mobile, Shares Rise

Iliad Drops Pursuit of T-Mobile, Shares Rise

BUSINESS

  • Bid is second rejected by T-Mobile
  • T-Mobile fastest-growing mobile carrier
  • T-Mobile owner feels company better alone

Iliad SA, France’s smallest mobile carrier, saw its shares rise 13% after it abandoned a bid for the fourth-largest U.S. wireless-service provider, T-Mobile US Inc.

The carrier first expressed interest in T-Mobile in July.

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Kmart Offers Customers Credit Monitoring After Security Breach

Kmart Offers Customers Credit Monitoring After Security Breach

BUSINESS

  • Breach affected unknown number of customers
  • Malware affected retailer’s systems for a month
  • Other major retailers have suffered security breaches

Discount chain Kmart, owned by Sears Holding Corp., is offering customers free credit monitoring services after its payment systems were affected by malware. Anyone who used a credit or debit card at one of Kmart’s 1,200 stores between Sept. 1 and Oct. 9 are eligible.

The security breach occurred in early September but wasn’t discovered until Oct. 9. The type of malware used by the hackers was not detectable by anti-virus programs, the company said.

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J.C. Penney Revises Forecast, Announces Sales Strategy

J.C. Penney Revises Forecast, Announces Sales Strategy

BUSINESS

  • September sales were lower than expected
  • Sales still higher than 2012
  • New sales strategy to focus on three areas

 

 

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