QUOTE OF THE DAY

“Can anyone here today piece together the effects of the Comcast-Time Warner merger and the AT&T-DirecTV merger on consumers and a free and open Internet?”

U.S. Rep. Anna Eshoo, D-Calif. Article, 1D

Wal-Mart to remodel 55 China stores

Wal-Mart China’s incoming president and chief executive, Sean Clarke, announced Tuesday that the company will spend $93 million to remodel 55 of its stores in China this year. Wal-Mart has more than 400 stores in the country and will open another 30 stores and distribution centers in China this year, according to a release. The world’s largest retailer said in October that it would open as many as 110 new Supercenters, Sam’s Clubs and distribution centers in China in 2014-16, creating about 19,000 jobs. The new facilities are planned across China, not just major cities, allowing Wal-Mart to better serve emerging groups of customers created by the country’s urbanization, the company said. The remodeling program for 55 stores in China outpaces the number of stores remodeled in 2012, 31, and last year, 45. The work will include making the flow of foot traffic better for customers, repairing and updating equipment, improving parking and access, and implementing features that reduce energy consumption. Last year, the company spent $80 million to remodel its stores.

Beebe pledges grant to venture center

The Arkansas Venture Center, an organization designed to develop entrepreneurial activity in central Arkansas, was introduced Tuesday at the Little Rock Regional Chamber of Commerce. Gov. Mike Beebe said during a news conference Tuesday that the state will provide a $500,000 matching grant for the center with the money coming from the Governor’s General Improvement Fund. “Arkansas and entrepreneurship is a real paradox,” Beebe said. He said the state has seen success with “big deals,” but struggles with smaller startup companies. Lee Watson, co-founder of the center, declined to say how much money the organization has raised from investors. He said the amount will be announced later in the summer. The center, which will offer training and mentoring, charges $150 for an annual membership. It has about 27 members.

ArcBest gets OK to protect deal details

ArcBest has been granted a confidential treatment order by the Securities and Exchange Commission, a move that allows the company to protect information that would ordinarily be disclosed in its annual report. Details of a line-of-credit agreement with PNC Bank of Pittsburgh are what ArcBest, formerly Arkansas Best, will be able to protect until Dec. 7, 2015. Companies can ask for protection of “confidential commercial or financial information” through the commission’s Corporation Finance Division. This is the fourth time that Fort Smith-based ArcBest has asked to protect the details of its agreement with PNC since July 7, 2010.

GM recalls another 2.4 million vehicles

General Motors Co., already recalling a record 11.2 million vehicles in the U.S., expanded the number of vehicles needing to be fixed Tuesday by 2.4 million and increased the cost of recalls by $200 million.

No fatalities are associated with any of Monday’s recalls, GM said in the statement.

The largest of the four recalls covers 1.34 million Buick Enclave, Chevrolet Traverse and GMC Acadia sport utility vehicles from 2009 to 2014 and Saturn Outlooks from 2009 to 2010 for front safety lap belt cables that can separate over time, Detroit-based GM said in a statement.

The company also recalled 1.08 million Chevrolet Malibus from 2004 to 2008 and Pontiac G6s from 2005 to 2008 because shift cables could wear out over time.

GM last week agreed to pay a $35 million fine as part of the U.S. government’s investigation into how it handled the recall of 2.59 million cars with potentially fault ignition switches that have been linked to at least 13 deaths. Congress and the U.S. Justice Department are still looking into why it took the automaker more than a decade to recall those cars with switches that allowed keys to slip out of the “on” position, shutting off the engine and disabling air bags.

After GM last week recalled 2.7 million vehicles in the U.S., the company said it expected to take a charge of as much as about $200 million in the second quarter, primarily for the cost of recall-related repairs announced in the quarter.

Tuesday, GM increased that to $400 million. GM took a $1.3 billion charge in the first quarter.

GM shares fell $1.18, or 3.5 percent to close at $33.07.

EU accuses three banks of fixing prices

AMSTERDAM — European Union regulators on Tuesday charged banks JPMorgan, HSBC and Credit Agricole with colluding to manipulate the price of financial products linked to interest rates.

The European Commission’s top competition regulator, Joaquin Almunia, said the banks will now have a chance to respond to the preliminary findings.

If the commission ultimately concludes the banks have broken the law, it can impose a fine of up to 10 percent of their annual revenue.

In December 2013, the commission levied fines totaling $1.4 billion on Barclays, Deutsche Bank, RBS and Societe Generale as part of the same case, which covers financial derivatives linked to a benchmark interest rate called Euribor in the period 2005-2008.

Barclays escaped fines for having notified the commission of the existence of the cartel, and the others were granted a fine reduction for cooperating in a settlement.

Almunia noted at a news conference in Brussels that the three banks cited Tuesday, which have not conceded wrongdoing or agreed to a settlement, will “in any case” not receive any reduction in penalty if they are ultimately fined.

A spokesman for HSBC said “we intend to defend ourselves vigorously.” A spokesman for Credit Agricole said the bank was still studying the ruling. JPMorgan could not immediately be reached for comment.

Business on 05/21/2014