Business Briefs – June 5, 2016

Wal-Mart’s CEO Urges Employees To Reimagine Company’s Future

FAYETTEVILLE, Ark. (AP) – Wal-Mart’s CEO Doug McMillon urged employees at the company’s annual shareholders meeting to reimagine its future in a fast-shifting retail landscape.

The company is at a crossroads, as its long-held dominance in pricing has been chipped away at by Amazon and dollar stores. But it’s fighting back on multiple fronts, growing more aggressive with prices and going after Amazon by expanding delivery services.

The event was packed with 14,000 people including nearly 6,000 Wal-Mart workers as well as shareholders, analysts and others.

U.S. Trade Deficit Increases 5.3 Percent to $37.4 Billion

WASHINGTON (AP) – The U.S. trade deficit, after falling to the lowest point in more than two years, increased in April as a surge in imported goods outpaced a rebound in exports.

The Commerce Department said Friday that the deficit increased 5.3 percent in April to $37.4 billion, up from an imbalance of $35.5 billion in March. Exports increased 1.5 percent to $182.8 billion but imports rose faster, increasing 2.1 percent to $220.2 billion.

The politically sensitive deficit with China surged 16.3 percent to $24.3 billion, a development certain to heighten trade tensions between the world’s two largest economies.

Valeant Defaults on Some of Its Debt

NEW YORK (AP) – Valeant has defaulted on some of its debt because it has yet to file its first-quarter report.

The embattled Canadian drug company said Friday that it now has 60 days to file the report with the Securities and Exchange Commission and the Canadian Securities Regulators for the quarter that ended March 31.

Valeant Pharmaceuticals International Inc. said that it received a notice of default on Thursday from the trustee under two of its senior note indentures.

The company said last month that it plans to file the first-quarter report by June 10.

Nest CEO Flies Coop 2 Years After $3.2b Sale to Google

SAN FRANCISCO (AP) – Nest Labs CEO Tony Fadell is flying the coop two years after selling the smart-thermostat maker to Google for $3.2 billion.

Fadell, best known for helping to invent Apple’s iPod, announced he was leaving Nest in a Friday blog post. His departure comes after reports published earlier this year detailed intensifying friction within Nest and delays in delivering new products.

Both Fadell and Alphabet, the parent company of Google and Nest, depicted the shake-up as a mutual decision.

Fadell will now serve as an adviser to Alphabet CEO Larry Page.