Peanut harvest hurt by bankruptcy
There will be significantly fewer peanuts pulled from the ground in eastern New Mexico this harvest season because of lingering fallout from the bankruptcy and sale of a peanut-processing plant that was at the heart of a 2012 salmonella outbreak and nationwide recall.
Peanut farmers are expected to bring in 6 million pounds less this year, according to forecasts released this week by the U.S. Department of Agriculture. That represents nearly a 30 percent drop in production in New Mexico from the year before.
The forecast calls for nationwide production to approach 5 billion pounds, an increase over last year, but those numbers won't include as many Valencia peanuts as in years past. Grown along the New Mexico-Texas border, the sweet variety is coveted for making natural butters and is what fueled the processing plant in Portales before it closed.
Business stockpiles rise 0.2 percent
U.S. businesses increased their stockpiles in August by the smallest amount in more than a year, while sales fell by the largest amount since January. The data suggest that the economy is still having trouble gaining momentum.
Inventories edged up a slight 0.2 percent in August after a 0.4 percent July increase, the Commerce Department reported Wednesday. It was the smallest gain in stockpiles since June 2013. Total business sales fell 0.4 percent in August after a 0.7 percent sales increase in July. It was the biggest monthly sales decline since a 1.1 percent drop in January.
When companies add goods to their stockpiles, it typically reflects optimism about future demand. When inventory growth slows, it can be a sign of concerns about future demand.
Inventories held by retailers fell 0.3 percent, while inventories held by wholesalers rose 0.7 percent. Inventories at the manufacturing level edged up a slight 0.1 percent.
Netflix price hike cuts growth
Netflix's subscriber growth in the latest quarter lagged management's forecast as the Internet video service's recent price increases turned off potential new viewers.
The disappointing performance announced Wednesday spooked investors already on edge after Time Warner Inc.'s HBO channel announced plans to compete against Netflix by offering an Internet-only package in the U.S beginning next year.
Netflix's stock plunged $103.49, or 23 percent, to $345.
The service gained about 3 million subscribers worldwide during the three months ending in September. Netflix Inc. had predicted it would add about 3.7 million customers in the third quarter.
Netflix CEO Reed Hasting blamed most of the shortfall on a price increase of roughly a $1 per month that kicked in during May. The increase boosted Netflix's U.S. price to $9 per month.
ePass expands electronic sales
China's half billion online shoppers will soon have an easier way to shop in the U.S.
Alipay, the payments unit recently spun off from Chinese e-commerce powerhouse Alibaba, is launching a service for U.S. retailers called ePass. Alipay has already been working in beta mode with retailers such as luxury deal site Gilt.com, The Gap and H&M.
"We want to demystify the Chinese consumer for U.S. retailers," said Jingming Li, president and chief architect of Alipay U.S., which has a U.S. base in Santa Clara, Calif., alongside its affiliate Alibaba.
Alipay targets English-reading young professionals in the four biggest regions of China (it doesn't offer a translation service). The move will let U.S. retailers tap into the estimated 500 million Chinese online shoppers who spent $298 billion online in 2013.
EPass will be available to any U.S. retailer interested in reaching the Chinese consumer, Li said.