Pimco stands by its chief investment officer, R. J. Reynolds vows to fight verdict and Shanghai food safety investigation hits McDonalds and Yum. Read about these and more of the day's top business news stories.
Pimco Stands By Its CIO
Allianz SE, the German parent company of Pacific Investment Management Co., issued a statement in support of its beleaguered Chief Investment Officer Bill Gross, Bloomberg News reports. "We want Bill Gross to work as CIO for as long as he is willing and able," said Jay Ralph, who oversees asset management for Allianz, whose chief executive Michael Diekmann, defended Pimco against shareholder criticism last May as Gross’ returns trailed rivals for the third year in four. Investors have pulled $64 billion from his Pimco Total Return Fund since May 2013.
Shanghai Surprise: McDonald’s, Yum Cease Using Local Meat Processor over Food Safety Concerns
McDonald's Corp and Yum! Brands Inc said they will stop using products supplied by a Shanghai meat processor after a local regulator halted the firm's operations on Sunday over food safety concerns, Reuters reports.
Both companies were embroiled in a food safety scandal in China late in 2012. The Shanghai Food and Drug Administration (SFDA) halted the operations of Shanghai Husi Food Co., Ltd, a meat supplier suspected of providing meat that had passed its expiration date to China branches of McDonald's restaurants and Yum's KFC and Pizza Hut outlets, the Xinhua news agency reported on Sunday. Yum and McDonald's both said they have stopped using meat products purchased from that company.
Anglo American Pic Disposing of Mines, Cutting Staff
Anglo American Plc will unveil on Monday its plan to dispose of its oldest South African platinum mines, which reduce the global miner's staff count by a fifth of its total workforce, according to Reuters. The move by the world’s biggest metal producer would leave 20,000 employees jobless. Anglo is looking to sell its non-core assets under a strategic review being carried off by CEO Mark Cutifani) Anglo, the world's No.5 diversified mining company by market value, signaled in April that it could dispose of at least some of its deep, high-cost platinum mines - and South African gold miner Sibanye Gold Ltd expressed interest in buying them, Reuters reported in April.
R. J. Reynolds to fight “Runaway Verdict”
America’s second largest cigarette company is vowing to challenge a $23.6 billion verdict in a lawsuit filed by the widow of a longtime smoker who died of lung cancer. R.J. Reynolds Tobacco Co. executive J. Jeffery Raborn said that the damages awarded by a jury late last week in Pensacola, Fla., “goes far beyond the realm of reasonableness and fairness and is completely inconsistent with the evidence presented. We are confident that the court will follow the law and not allow this runaway verdict to stand." The case is one of thousands filed in Florida after a 2006 state Supreme Court ruling that said smokers and their families need only prove addiction and that smoking caused their illnesses or deaths. Last year, Florida's highest court re-approved that decision, which made it easier for sick smokers or their survivors to pursue lawsuits against tobacco companies without having to prove that they knowingly sold dangerous products and hid the hazards of cigarette smoking.
Murdoch Tweets Tribune Disappointment
Media tycoon Rupert Murdoch took to Twitter late last week to announce he would not be one of the possible bidders for Tribune Publishing, CNN Money reports. “Sorry,” he tweeted. “Cross-ownership laws from another age still in place.” Federal Communications Commission rules limit how many newspapers and broadcast television stations a single company can own. Murdoch’s News Corp owns the Wall Street Journal publisher Dow Jones and the tabloid, the New York Post. Murdoch’s other company, 21st Century Fox, recently made a bid for Time Warner that the company rejected.
Horror Film Fails to Purge “Apes”
It’s the “Apes’” planet, we just live in it. Despite a strong challenge from the horror film, “The Purge: Anarchy,” “Dawn of the Planet of the Apes” became only the second of this summer’s films to hold on to box office bragging rights for two consecutive weekends. Another sequel, Disney’s “Planes: Fire & Rescue” debuted in third, while the R-rated comedy, “Sex Tape” underperformed in fourth place. “Transformers 4: Age of Extinction” rounded out the top five.