Simulator not running XCTest tests

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I am new to running unit tests in Xcode (with XCText). I created an empty iOS application and just tried running the tests (which should fail by default). The iOS simulator starts and the toolbar console just shows "testing..." and it just hangs forever. I don't see any error in the console. If I try running the tests on a device (iPhone 5 in my case), the tests run just fine.

I am using Xcode 5.1.1 and simulator 7.1

Any idea on what could be causing this?

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