THE RE­CAP

The Washington Post Sunday - - BUSINESS -

Busi­ness

Bill Gross, the bil­lion­aire in­vestor, sued his for­mer em­ployer, the Pa­cific In­vest­ment Man­age­ment Co., or Pimco, for more than $200 mil­lion for breach of con­tract and plot­ting to oust him from the firm he founded more than four decades ago. The suit al­leges that Pimco ex­ec­u­tives plot­ted to re­move Gross in an in­ter­nal power strug­gle that led to him leav­ing the com­pany in Septem­ber 2014. He had been “on track” to re­ceive a bonus top­ping $250 mil­lion from Pimco in 2014, with most of it paid late in the year, ac­cord­ing to the suit.

Volk­swa­gen AG chief ex­ec­u­tive Matthias Müller said the com­pany will de­lay or can­cel nonessen­tial projects as pres­sure mounts to slash spend­ing in the wake of the diesel-emis­sions scan­dal. Fix­ing about 11 mil­lion rigged diesel ve­hi­cles is a costly prospect. The $7.29 bil­lion Volk­swa­gen has set aside for re­pairs won’t be enough to cover fines and po­ten­tial le­gal dam­ages, he said.

Mon­santo, one of the world’s largest seed and agri­chem­i­cal com­pa­nies, said Wed­nes­day that it was slash­ing 2,600 jobs and restruc­tur­ing oper­a­tions to cut costs in a slump­ing com­mod­ity mar­ket.

Twit­ter re­turned to its roots and ap­pointed co-founder Jack Dorsey as chief ex­ec­u­tive to steady the strug­gling com­pany as it seeks to grow its au­di­ence.

Face­book is test­ing six new ways to

re­spond to posts, from “sur­prise” to “an­gry”— af­ter users had asked for a “dis­like” but­ton.

Bristol-My­ers Squibb will pay $14.6 mil­lion to set­tle U.S. charges that its joint ven­ture in China gave cash and other ben­e­fits to gov­ern­ment health-care providers to boost drug sales.

Ama­zon.com has launched a site for hand­crafted goods to ri­val Etsy. It is called Hand­made at Ama­zon and in­cludes about 5,000 sellers from 50 states and 60 coun­tries of­fer­ing 80,000 items.

Trump ho­tels pay­ment sys­tems were hacked for nearly a year, leav­ing cus­tomer credit and debit card num­bers vul­ner­a­ble.

Ur­ban Out­fit­ters will end on-call sched­ul­ing at stores in New York af­ter pres­sure from the state’s at­tor­ney gen­eral.

Amer­i­can Ap­parel, the trendy but trou­bled Los An­ge­les cloth­ier, filed for Chap­ter 11 bank­ruptcy pro­tec­tion— yet another blow to a com­pany that has been strug­gling since oust­ing its CEO last year.

Banana Re­pub­lic’s cre­ative di­rec­tor Marissa Webb, hired last year by the brand to re­gain its style cred and boost sales at the floun­der­ing ap­parel chain, is step­ping down af­ter weak sales pre­vailed.

Cap­i­tal Busi­ness

Mayor Muriel E. Bowser (D) backed Ex­elon Corp.’s $6.4 bil­lion takeover of Pepco, re­vers­ing her pre­vi­ous de­ci­sion to op­pose the gi­ant util­ity merger. The fi­nal call now goes back to the D.C. Public Ser­vice Com­mis­sion, which unan­i­mously re­jected the merger in Au­gust.

Deals

Gan­nett reached an agree­ment to ac­quire the Jour­nal Media Group, a news­pa­per com­pany, for $280 mil­lion, giv­ing the media gi­ant con­trol of publi­ca­tions in more than 100 lo­cal mar­kets in the United States. Jour­nal Media publi­ca­tions dot the Mid­west and South and in­clude the Mil­wau­kee Jour­nal Sen­tinel, Mem­phis Com­mer­cial Ap­peal and Knoxville (Tenn.) News Sen­tinel.

Dell re­port­edly is in talks with banks to fund a takeover of data-stor­age com­pany EMC, which has a mar­ket cap­i­tal­iza­tion of $52 bil­lion. It would be the largest tech­nol­ogy-sec­tor deal on record.

Earn­ings

Al­coa profit fell to $44 mil­lion from $149 mil­lion a year ago, hurt by slump­ing prices for alu­minum and other com­modi­ties and un­fa­vor­able for­eign ex­change rates.

Pep­sico profit fell 73 per­cent to $533 mil­lion, from a year ago. Still, it topped an­a­lysts’ es­ti­mates and raised its forecast for the year af­ter North Amer­i­can snack and bev­er­age sales climbed, helped by higher prices.

Econ­omy

Fed­eral Re­serve of­fi­cials say the U.S. re­cov­ery will prob­a­bly re­main in­su­lated from the slow­down in China that has roiled the global econ­omy, keep­ing the cen­tral bank on track to be­gin end­ing its ex­tra­or­di­nary stim­u­lus later this year, ac­cord­ing to min­utes of its last meet­ing.

U.S. con­sumer bor­row­ing ad­vanced at a solid pace in Au­gust, up $16 bil­lion as Amer­i­cans took out more auto and stu­dent loans.

The U.S. trade deficit grew 15.6 per­cent to $48.3 bil­lion in Au­gust as ex­ports fell to the low­est level in nearly three years while im­ports in­creased, led by a surge in ship­ments of cell­phones from China.

Washington

Supreme Court Chief Jus­tice

John G. Roberts Jr. won’t hold up new Obama ad­min­is­tra­tion rules that give overtime and min­i­mumwage pro­tec­tions to nearly 2 mil­lion home-health-care work­ers. Fed­eral law had ex­empted home-care work­ers hired through staffing com­pa­nies from min­i­mum wage and overtime pay since 1974.

Tran­si­tions

Roscoe C. Born, a jour­nal­ist who be­came a found­ing editor of the old Na­tional Ob­server news­pa­per and re­tired as Washington editor of Barron’s, died at age 95.

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