Editor’s Note: This is the Paw Print Rewind, a daily look at the day’s top stories.
GE to sell bulk of finance unit, returns up to $90 billion to investors
GE will shed most of its finance unit and return as much as $90 billion to shareholders as it becomes a “simpler” industrial business instead of a hybrid of banking and manufacturing.
On Friday, the company outlined a restructuring plan that includes buying back up to $50 billion worth of shares, selling about $30 billion in real estate assets over the next two years and divesting more GE Capital operations.
“The stock has been under-owned by institutional investors, and that’s going to change now.”
-Tom Donino, First New York Securities head of equity trading
GE expected to cut its 10.06 billion outstanding shares by as much as 20 percent to 8-8.5 billion by 2018.
In all, the company plans to shed $275 billion in GE Capital assets. That includes the spinoff of its Synchrony Financial credit card unit and future sales of commercial lending and consumer banking businesses with assets of about $165 billion.
The company plans to keep $90 billion in finance assets directly related to selling its products.
Blackstone Group and Wells Fargo will buy most of the assets for about $23 billion.
Nissan, BMW recall over 165,000 vehicles
Nissan and BMW are recalling over 165,000 vehicles globally due to potential fuel pump failures that could cause an engine to stall or not start.
95,031 US and Canadian 2014 Nissan Rogue SUVs and about 70,500 2014-2015 BMWs globally are affected, according to the companies.
Nickel plating could detach and block moving parts in the fuel pump made by Robert Bosch, according to the companies and National Highway Traffic Safety Administration (NHTSA) documents.
An engine that doesn’t start was more likely than one that stalls, according to the automakers. Neither company was aware of any accidents or injuries related to the recall.
In March 2014, Nissan identified an incident where a Rogue failed to start, while BMW noticed an increase in fuel pump warranty claims on certain vehicles in June 2014, according to the NHTSA documents.
The fuel pump assembly will get replaced at no cost and the recalls should begin this month.
76,242 of Nissan’s recalls SUVs are in the United States, according to the company, with 18,789 in Canada.
18,054 BMWs are affected in the US, according to the NHTSA documents.
The affected BMW models in the United States are the 2014 228i Coupe, M235i Coupe, 320i, 320xi, 328i, 328xi, 335i, 335xi, ActiveHybrid 3, 328xi Sports Wagon, 428i Coupe, 428xi Coupe, 435i Coupe, 435xi Coupe, 428i Convertible, 428xi Convertible, 435i Convertible, 328xi Gran Turismo, 335xi Gran Turismo, and 2015 428i Gran Coupe, 428xi Gran Coupe, and 435i Gran Coupe vehicles.
U.S. import prices fall in March
US import prices fell in March as rising petroleum costs were offset by declining prices for other goods, a sign of muted inflation that supports the view the Federal Reserve will probably not raise interest rates in June.
Import prices dropped 0.3 percent last month after a revised 0.2 percent gain in February, according to the Labor Department.
In the year through March, prices plunged 10.5 percent, the largest drop since September 2009.
Import prices excluding petroleum fell 0.4 percent in March. They dropped 0.3 percent in February. Imported food prices fell 1.1 percent after being unchanged in February.
Export prices edged up 0.1 percent last month for the first increase since July.
Export prices declined 6.7 percent in the 12 months through March, the largest drop since July 2009.
Copa Airlines buying 61 Boeing 737s in $6.6 billion deal
Panama-based Copa Airlines will buy 61 Boeing 737 MAX 8 and MAX 9 jets in a deal worth $6.6 billion, according to the airline.
Copa will use the airplanes to replace existing planes and support their plans for strategic growth.
The deal is the largest transaction ever between a Panamanian and an American company, according to the airline.
Copa Airlines will be the first carrier in the region to run the 737 MAX 9 on deep South American routes.