In brief: Retail sales up despite decline in auto sales
WASHINGTON – U.S. retail sales edged up in July despite a drop in auto sales. A category of purchases that excludes the most volatile sectors rose by the most in seven months, a sign that stronger consumer spending could boost economic growth.
The Commerce Department said retail sales increased 0.2 percent in July from June. Sales had risen 0.6 percent in June from May. The change in both months was driven by autos, which surged 2.9 percent in June but fell 1 percent in July.
“Core” retail sales, which exclude the volatile auto, gas and building supply categories, rose 0.5 percent in July. These sales had risen 0.1 percent in May and 0.2 percent in June. July’s gain was the biggest such advance since a similar 0.5 percent rise in December.
Train in deadly crash loses operating license
TORONTO – A U.S.-based rail company whose runaway oil train derailed and exploded in a Quebec town, killing 47 people, has lost its operating license in Canada, that country’s transportation agency said Tuesday.
The Canada Transportation Agency is suspending the certificate of fitness for Montreal, Maine & Atlantic Railway and its Canadian subsidiary.
The agency said it is not satisfied that the troubled company, which has filed for bankruptcy since the July 6 disaster, has demonstrated that its third-party liability insurance is adequate for ongoing operations.
Nine indicted, accused of huge penny stock fraud
NEW YORK – Nine people have been charged in a $140 million penny stock fraud investigation, federal authorities in New York said.
U.S. Attorney Loretta Lynch announced the charges Tuesday. She said the international scheme is believed to be one of the largest penny stock frauds in history.
An indictment accuses the defendants of artificially inflating the value of worthless penny stocks and selling them to investors across the globe.
They also allegedly tricked the victims into paying to join phony lawsuits to recoup their losses.
FBI agents arrested six of the defendants Tuesday in New York, Arizona, New Jersey, Florida and California. A seventh is being held in Canada and two are at large.
Company abandons plans to slaughter horses
ALBUQUERQUE, N.M. – An Iowa company is dropping plans to slaughter horses in the wake of a federal judge’s ruling that temporarily banned the practice as part of a lawsuit filed by animal welfare groups, a company executive said Tuesday.
Responsible Transportation, which owns a slaughterhouse in Sigourney, Iowa, was among two companies that had secured federal permits for horse slaughter. But the Iowa company’s president, Keaton Walker, said his firm cannot afford to wait for more court deliberations and was turning its focus to cattle.
“We just can’t sit with our heads down,” Walker said. “We have to get back to work.”
The other company with a federal permit, Valley Meat Co. of Roswell, N.M., was “still prepared to stay the course,” company attorney Blain Dunn said. Valley Meat has pushed for more than a year for permission to convert its cattle plant into a horse slaughterhouse.
Chain reviewing change to allow antibiotics
NEW YORK – Chipotle Mexican Grill is reviewing a change to start using some beef treated with antibiotics, but said no decision has yet been made on the matter.
The Denver-based chain stressed in a news release Tuesday that its beef, chicken and pork continues to come from animals that are not given antibiotics or added hormones whenever possible. But it said it’s considering allowing meat that comes from animals given antibiotics to treat illnesses.