Business Briefing
Jobless data better than expected
The number of newly laid-off workers seeking unemployment benefits fell more than expected last week to the lowest total in a month.
The Labor Department said that first-time claims for unemployment insurance dropped by 43,000 to a seasonally adjusted 440,000. Wall Street economists expected a smaller decline of 15,000, according to a survey by Thomson Reuters.
The four-week average, which smooths out fluctuations, fell by 1,000 to 468,500, the first drop after three weeks of increases.
ONLINE COMMERCE
EBay must pay Vuitton damages
EBay Inc. will pay about $316,500 to Louis Vuitton Malletier for legal costs and damages and stop using Internet search terms the luxury goods maker protested, after a ruling by the Paris District Court.
The online auction site was found liable for harming the reputation of Louis Vuitton trademarks, the company name and domain name -- all held by LVMH Moet Hennessy Louis Vuitton.
EBay had been buying keywords such as “Viton,” “Vitton” and “Wuiton” so that online shoppers entering these misspellings into a search engine, along with anyone using the brand’s correct spelling, would be directed to links promoting EBay, a Louis Vuitton spokeswoman said.
The court, which called EBay’s actions “parasitic,” ordered the company to stop using the keywords. The court said the practice harmed Louis Vuitton’s brand.
UTILITIES
FirstEnergy to buy Allegheny
Utility company FirstEnergy said it would buy rival Allegheny Energy for about $4.7 billion in stock in a deal that would create one of the nation’s largest power companies, with customers from Ohio to New York.
The deal would create a company with 10 utilities serving 6 million customers in seven states, with $16 billion in annual revenue and $1.4 billion in profit.
WIRE TRANSFERS
Company settles smuggling case
Western Union has agreed to a $94-million settlement in a dispute with Arizona prosecutors involving the state’s efforts to reduce the flow of immigrant and drug smuggling money through wire transfers.
Authorities have alleged in court that the company had some agents who knowingly helped smugglers send money to Mexico.
As part of the settlement, Western Union will contribute $50 million to the Southwest Border Anti-Money Laundering Alliance, which includes the attorneys general of Arizona, California, New Mexico and Texas.
The company also will spend $19 million to strengthen its own anti-money laundering effort and pay $4 million for independent monitoring.
FOOD
PepsiCo profit, sales increase
PepsiCo Inc., the world’s largest snack maker, said fourth-quarter profit doubled as food sales grew in the Americas.
Net income increased to $1.43 billion, or 90 cents a share, from $719 million, or 46 cents, a year earlier, Purchase, N.Y.-based PepsiCo said. Revenue increased 4.5% to $13.3 billion, in line with analysts’ estimates.
PepsiCo affirmed its forecast of an 11% to 13% gain in earnings per share this year.
-- times wire reports
