Shanghai stock index sinks to the lowest level in a year
China’s Shanghai index hit its lowest level in 12 months, raising considerable concerns about the second-largest economy in the world. Meanwhile, and perhaps partly in response to that, oil prices yet again registered steep declines, closing just above $30/barrel yesterday, now trading below that important psychological mark.
Chinese Haier to pay $5.4 billion for GE appliance business
Chinese manufacturer group, Qingdao Haier Co., Ltd. (SHA:600690) will pay $5.4 billion for General Electric Company’s (NYSE:GE) appliance unit. Haier intends to have its products reach into homes across the world and gain an influential foothold in the international market. According to Haier, the two companies will be cooperating on their global platforms to expand their reach in advanced manufacturing, health care and industrial sectors.
With Haier taking hold of the appliance unit, GE can now focus on its industrial business including power turbines and jet engines instead of washing machines and finance. The deal is being seen as an ideal opportunity for Haier, whicj will be able to sell mainstream appliances to the US market, gaining a much-needed foothold there.
Goldman Sachs Group to pay largest regulatory penalty ever
In a historic settlement, the Goldman Sachs Group Inc (NYSE:GS) finally agreed to pay the largest regulatory penalty in US history thereby resolving the claims from both federal and state level governments over the sale of toxic mortgage bonds.
With the new agreement, the company will be included in the list of big banks list that have moved past the 2008 financial crisis. The settlement with the Justice Department involves a collection of federal and state entities in total amounting to more than $5 billion.
Obama suggests a $4 billion investment for driverless cars
The Obama administration has proposed spending $4 billion to subsidize driverless cars. The spending will be stretched across a decade with the goal of curbing traffic jams and road fatalities.
The proposal is waiting for Congressional approval with hopes that automakers and federal regulators will work in unison to come up with effective policies and potential rules so that more driverless cars can run legally in the U.S.