Janus to settle charges

Janus Capital Group Inc. said Wednesday it had finalized a $226.2 million settlement with state and federal regulators about improper trading allegations, part of a scandal sweeping the $7 trillion mutual funds industry.

Janus will pay $100 million to investors — $50 million in restitution and $50 million in civil penalties — and reduce the fees it charges investors by $125 million during five years.

The Denver-based company will pay $1.2 million to the Colorado attorney general’s office for investor education, future enforcement and attorney’s fees. It also will institute measures to guard against future problems.

The announcement finalized an agreement tentatively reached in April between Janus and the Securities and Exchange Commission, and regulators in Colorado and New York. Janus said it consented to the agreement without admitting or denying the findings.

Labor

Delta to cut more jobs

Struggling Delta Air Lines Inc. plans additional job cuts as part of its effort to avoid bankruptcy, chief executive Gerald Grinstein said late Wednesday in a memo to Delta employees.

Grinstein sent the memo after concluding a daylong meeting with Delta’s board to unveil his plan.

Atlanta-based Delta has already laid off more than 16,000 employees in the past three years, as it has lost more than $5 billion amid high fuel costs and stiff competition from low-fare carriers. The company and subsidiaries had 70,300 employees as of June 30.

The memo does not say how many more jobs will be cut, and a spokeswoman declined to comment.

Also Wednesday, Delta said it is considering exchanging some of its debt, possibly for equity in the company, as part of its larger effort to avoid bankruptcy.

Earnings

Nestle profits sweeten

Nestle SA posted a modest 2 percent increase in profits for the first half of the year as it faced such challenges as higher prices for raw materials like milk and coffee as well as cooler temperatures, which dampened consumers’ appetite for such treats as ice cream.

The world’s biggest food and drink company also said Wednesday that it failed to meet its target for organic growth, one of its main performance yardsticks that measures volume growth that includes price increases but not the effect of acquisitions.

The news pushed share prices down 5.1 percent, to close at $239.63 on the Zurich exchange.