Hyundai fined $17 million for delaying recall

Hyundai recalled 43,500 Genesis sedans in 2013 -- but not quick enough for federal regulators.

NEW YORK (CNNMoney)

The company knew about problems with the vehicles' brakes in 2012, but only issued a recall in October 2013 after the government opened an investigation into the matter, federal safety regulators announced Thursday.

Hyundai told dealers to change the brake fluid in affected cars in March 2013. But the company didn't explain why, nor did it tell vehicle owners there was a problem for seven more months.

Related: Hot wheels and good deals

This particular problem affected 43,500 Genesis sedans from model years 2009-2012. The brake fluid did not sufficiently prevent corrosion, which increased the risk of a crash.

No fatalities or serious injuries were related to the defect, but the car maker did receive reports of six collisions and two minor injuries.

Hyundai is improving its processes to avoid a similar situation in the future, CEO David Zuchowski said in a statement Thursday.

The news comes a few months after General Motors (GM) was fined $35 million for delaying the recall of cars with a faulty ignition switch. That is the maximum amount the National Highway Traffic Safety Administration can fine automakers for a single violation.

First Published: August 7, 2014: 7:38 PM ET

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Malaysia Airlines to be pulled from stock market

HONG KONG (CNNMoney)

Malaysian state investor Khazanah Nasional, which owns nearly 70% of the airline, said it had submitted a proposal to the airline's board of directors to delist the company.

Under the plan, minority shareholders will be bought out. Shares were suspended.

Khazanah said delisting is the first step in a restructuring process to overhaul Malaysia's national air carrier. The fund said that more details will be announced by the end of the month.

"The proposed restructuring will critically require all parties to work closely together to undertake what will be a complete overhaul," the fund said in a statement.

After taking the business private, management could sell assets such as Firefly, its budget unit.

Related: 3 things Malaysia Airlines must do to survive

Malaysia Airlines was in big financial trouble before the twin disasters of Flight 370 and Flight 17 claimed the lives of 537 people.

It hadn't turned a profit in years, efforts to compete with low-cost carriers had failed, and the need for yet another government bailout was growing.

Analysts have long argued that Malaysia Airlines needed to slim down, and drop flashier features of a flag carrier. For example, the airline could operate fewer full-service flights and increase seat counts.

Related: Passengers' families could collect millions

MH17 was shot out of the sky over in July, in territory that's controlled by pro-Russian militants battling the Ukraine government. The United States says a surface-to-air missile took down the plane.

In March, Malaysia Airlines Flight 370 disappeared with 239 people on board. No trace of the plane has been found.

First Published: August 7, 2014: 11:06 PM ET

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Tesla settles dispute with trademark troll in China

HONG KONG (CNNMoney)

Chinese businessman Zhan Baosheng -- who registered the "Tesla" trademark years before the automaker entered the country -- had sued the company for infringement.

Tesla (TSLA) said that Zhan has agreed to allow the Chinese government to cancel his trademarks, at no cost to the company. In exchange, the California firm has withdrawn claims for compensation from Zhan.

Both parties have "completely and amicably" resolved the dispute, the automaker said in a statement.

Tesla started deliveries of its Model S luxury electric car in China earlier this year, and CEO Elon Musk sees great opportunity for growth in the country. Major global automakers such as General Motors (GM) and Ford (F) are also fighting for market share in China, now the world's biggest market for automobiles.

Related: Elon Musk wants Tesla 'elves' to service cars

The electric carmaker's headache underscores an issue that many other foreign companies have faced, including Apple (AAPL, Tech30) and Pfizer (PFE).

China's trademark laws follow a "first to file" principle that rewards squatters. Savvy operators -- called trademark trolls -- have targeted valuable foreign brands and registered them as their own.

Firms entering China then have to rebrand their products, fight in China's murky courts or pay big money to buy back the trademark.

First Published: August 8, 2014: 12:21 AM ET

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Americans are warming to self-driving cars

NEW YORK (CNNMoney)

That's the conclusion of a new study from the University of Michigan, which found that 56% of U.S. respondents had positive opinions of self-driving vehicles.

The technology sounds like science fiction -- 29% of Americans surveyed hadn't heard of it before the study -- yet it's not far from becoming reality.

Google (GOOG) has been working on the issue for years, unveiling a self-driving prototype in May. The system probably won't be widely available for five or six years, but executives have predicted that one day "a significant number of cars will carry Google technology." Nissan, meanwhile, said last year that it hopes to have a self-driving car on the market by 2020.

Related: Look inside Google's toy shop

California, Nevada, Florida and Michigan have passed legislation allowing the testing of self-driving cars on public roads, and the National Highway Traffic Safety Administration has issued a series of recommendations on the issue as well.

Those surveyed by the Michigan researchers said self-driving cars were likely to yield a variety of benefits, including fewer crashes, decreased emissions and lower insurance rates.

But with that said, they were still hesitant about taking a ride for the time being: just 11% said they wouldn't be concerned about riding in a self-driving vehicle.

First Published: August 4, 2014: 5:53 PM ET

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Scrabble dictionary adds 5,000 new words including 'selfie' and 'hashtag'

The official dictionary was last updated in 2005.

NEW YORK (CNNMoney)

For the first time in nearly a decade, Scrabble players are going to have some new words on their boards.

The fifth edition of the game's official dictionary includes 5,000 new words, according to publisher Merriam-Webster. The dictionary goes on sale Wednesday.

"Hashtag" (14 points) and "selfie" (nine points) weren't around when the dictionary was last updated in 2005. "Geocache" (16 points) was selected via a social media contest.

Also joining the dictionary: "emo" (five points), "bling" (eight points), "mixtape" (18 points), "beatbox" (18 points) and a handful of two letter words, like "po" (meaning "by mouth" and worth four points).

The additions "go a long way toward bringing us closer to the language as it is currently spoken," said John Chew, co-president of the North American Scrabble Players Association.

Other improvements include words and spellings used by Canadian and British speakers of English.

Related: Learn to speak 'Game of Thrones'

The game's official fan group, which organizes tournaments and reviews updates to the dictionary, is "very excited" about the development.

Chris Cree, also co-president of NASPA, said the additions "will make for more scoring opportunities and add much more to the thought process in terms of both offensive and defensive strategy."

The fourth edition of the dictionary included more than 100,000 words.

First Published: August 4, 2014: 10:01 PM ET

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Forget Samsung, Xiaomi is China's new smartphone king

HONG KONG (CNNMoney)

The upstart Chinese smartphone maker has knocked Samsung off its throne in China, shipping more units than its South Korea-based rival for the first time in the second quarter.

The performance is the latest indication that Xiaomi has evolved from niche player in China to a major force in its home market.

The company, founded just four years ago by Lei Jun, captured 14% of the Chinese market in the second quarter, according to research firm Canalys. That translates to 15 million smartphones, a 240% improvement over the same period last year.

"This is a phenomenal achievement for Xiaomi," said Canalys analyst Jingwen Wang, who praised Xiaomi's marketing and product lineup.

Related: China's red hot phone market is cooling

In a nod to the competitiveness of the smartphone business in China, Xiaomi has only a narrow lead over its rivals. Samsung, Lenovo, Yulong and Huawei all have more than 10% of the market. Samsung, in particular, is expected to rebound in the third quarter.

"[Xiaomi] does now need to deliver LTE products in China to address growing demand for 4G services if it is to retain its momentum," Wang said.

Xiaomi is still relatively unknown outside China, the destination for 97% of its shipments in the second quarter. But the company has been quietly stockpiling tech talent as it builds a business worth more than $10 billion.

Last year, the firm poached Google (GOOG) executive Hugo Barra to help fulfill its ambition to become a global player. Indonesia, Mexico, Russia, Thailand and Turkey have all been mentioned as expansion targets.

Related: China's Xiaomi poaches top Google exec

The privately-held company is known in China for its rabid fanbase and skillful marketing. Its phones -- which some critics deride as Apple knockoffs -- typically price at around $130, or just about the cost of parts and labor.

"Our business model is more similar to Amazon," Lei told CNN last year, referring to Amazon's (AMZN, Tech30) habit of selling hardware at cost.

"We sell all our products online and our gross profit rate is very low. Our price is one third of Apple's," he said. "We make our profits through content and services."

Xiaomi engineers are also encouraged to speak directly to consumers, gathering feedback they use to tinker with the company's software.

The turnaround is rapid, and Xiaomi updates its Android operating system every Friday, much to the delight of its obsessed fans.

First Published: August 4, 2014: 11:52 PM ET

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Is a correction near? Wall Street on edge

NEW YORK (CNNMoney)

The Dow Jones industrial average fell more than 300 points on Thursday, erasing its gains for the year. The S&P 500 fell 2.7% last week, the biggest weekly decline since Jan. 2012.

Now, investors are trying to determine if the sell-off was overdone, or just the beginning of a larger downturn.

It's been more than two years since the S&P 500 had a correction, typically defined as a drop of 10% or more from the most recent high. Despite last week's plunge, the S&P 500 is just 3.1% below its all-time high from last month.

With stocks still relatively expensive, many investors have been waiting for a pullback to buy shares at more attractive levels.

Related: Small stocks sink -- bad sign for economy?

Nick Colas, chief market strategist at ConvergEx Group, a global brokerage in New York, says "there is no way to know right now if this is the beginning of a larger sell-off" or just a temporary blip.

The VIX (VIX), a gauge of market volatility, jumped more than 30% last week. CNNMoney's Fear & Greed Index, which includes the VIX and six other gauges of sentiment, is at a level indicating "Extreme Fear."

Investors certainly have a plenty to worry about.

The conflict in Gaza is unsettling and the showdown between Russia and the West over Ukraine is intensifying. Argentina is another hot spot, though investors seem confident that last week's default won't cause major problems in other emerging markets.

In addition to geopolitical turmoil, investors are debating how the Federal Reserve may respond to the recent spate of strong economic data.

U.S. gross domestic product, the broadest measure of economic output, increased 4% in the second quarter, bouncing back form a winter swoon in the first quarter.

The job market continued to improve in July, though the pace of hiring slowed a bit from June.

Related: Boring bonds beat sexy stocks. Here's why

The Fed is gradually winding down its stimulative policies, and investors have recently become obsessed with trying to gauge when the central bank will eventually hike interest rates. Most economists expect a rate hike will occur in the spring or summer of 2015.

"There is a lot of fear that the Fed's policies and world events will lead to a market crash in the near future," said Keith Springer, president of Springer Financial Advisors in Sacramento, Calif.

While he expects the Fed to remain on hold, Springer said stocks appear headed for a decline of between 7% and 10%.

"For the next few weeks, hunker down," he said.

A big week for media companies: The media sector will be in focus with quarterly reports due from some of the biggest names in the entertainment industry.

Both Time Warner (TWX) and 21st Century Fox (FOX) will report results next week.

Time Warner, the parent company of CNNMoney, rejected an $80 billion buyout offer from Fox, the movie and television company run by Rupert Murdoch, in June. But it is widely believed that Fox will eventually make another bid.

Investors are eager to hear what executives of both companies say about the possibility of a merger when they take questions from analysts after their earnings reports.

Murdoch's other company, News Corp. (NWS), which owns the Wall Street Journal and other newspapers, will also report results next week.

Disney (DIS), which is releasing "Guardians of the Galaxy" this weekend, will report results on Tuesday. It's been a sluggish summer at the box office this year, and investors are hoping that Disney's latest film may get people back in theaters.

Viacom (VIA) and CBS (CBS) are also set to release earnings this week.

First Published: August 2, 2014: 4:52 PM ET

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Potato salad crowd funder raises $55,000 and promised 3,330 people "a bite"

NEW YORK (CNNMoney)

His crowdfunding effort on the website Kickstarter closed Saturday night. It became a social media phenomenon since it launched a month ago and the contributions came from nearly 7,000 people. Half of those gave less than $3 and 860 gave $35 or more, according to data posted by the site.

It wasn't to sponsor the culinary creation of a famous -- or even skilled -- chef. When asked what type of potato salad he would be cooking up, the man behind the project, Zach Brown, admitted he didn't have a recipe in mind, nor any experience.

"I'm not sure. It's my first one. Probably whatever is easiest," he wrote.

Related: 'We're having a baby through crowdfunding'

His effort began with a $10 goal and quickly caught steam. In the first week, Brown raised $11,000. Along the way he set new benchmarks for success. If the effort raised $3,000, for example, he promised to "rent out a party hall and invite the whole internet to the potato salad party."

Zach Brown said he doesn't know what type of potatoes he'll use, but will buy them at the "Kroger near my house."

After exceeding his goal many times over, Brown pledged to do some good with "our little Internet joke about potato salad." In an op-ed for CNBC, he promised to donate "a significant portion" to an endowment fund at a non-profit to support hunger and homeless efforts. The non-profit, The Columbus Foundation, said the fund would "be sure there is a legacy left from the campaign."

Related: 'We're crowdfunding our wedding'

In the op-ed, Brown urged prospective crowd funders to "think about what you have to offer the world" and not approach the Internet as though it is "a bottomless pit of cash."

Brown has a lengthy list of other commitments. In exchange for the money, crowd funders promise their contributors something in return -- like the hundreds of commemorative t-shirts, hats and cookbooks Brown offered. To all 6,911 donors, he committed to "say your name out loud while making the potato salad." And he owes 3,330 contributors a literal piece of his effort: "a bite of the potato salad."

First Published: August 3, 2014: 12:31 PM ET

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Portugal splits Banco Espirito Santo in $6.6 billion rescue

HONG KONG (CNNMoney)

Under the €4.9 billion ($6.6 billion) plan, most of the bank's deposits, branches, workers and operations will be transferred to Novo Banco, a new entity controlled by the Bank of Portugal.

Banco Espirito Santo's problem assets will remain with the "bad" bank, and losses will be borne by shareholders and subordinated creditors.

The bank's current customers and senior bondholders will be protected.

"Nothing changes for the customers, who will be able to carry out all operations as usual and without disruption," the central bank said in a statement. "The contents of the contractual relationships with the customers remain unchanged."

Related: 4 reasons to keep calm over Portugal bank crisis

Funding for the bailout comes from the Bank of Portugal's Resolution Fund, a mechanism designed to help control banking sector risks. A loan from the state will provide the fund with additional capital.

The bailout comes in the wake of problems at the wider Espirito Santo group, which has been rocked by revelations of financial irregularities in recent months.

The impact outside Portugal should be limited. Banco Espirito Santo accounts for less than a fifth of the country's total banking assets and only 0.25% of the eurozone banking sector.

Related: Spanish debt en fuego

Eurozone banks are still far from perfect, but they've come a long way in the last two years. EU leaders have given themselves the tools to calm market panic by creating a permanent bailout fund -- the European Stability Mechanism -- and are putting in place the essential elements of a banking union.

The European Central Bank is reviewing the assets and resilience of the region's most important banks, and eurozone states have agreed to rules on how to rescue -- or wind down -- banks that get into trouble.

-- Mark Thompson contributed reporting.

First Published: August 3, 2014: 11:55 PM ET

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Buffett's $2 billion bounce

Warren Buffett's Berkshire Hathaway has a big bounce in second quarter profit.

NEW YORK (CNNMoney)

His company, Berkshire Hathaway (BRKA), said Friday that its profit grew by nearly $2 billion in the second quarter.

The company, a broad-based investment conglomerate that includes diverse names like Geico Auto Insurance, Burlington Northern Santa Fe Railway, Dairy Queen, Benjamin Moore, Fruit of the Loom, Heinz, and See's Candies, earned a profit of nearly $6.4 billion, up from $4.5 billion during the same period last year.

In the first quarter, Berkshire's railroad operations took a hit from the extreme winter weather that hit much of the nation.

As the nation's housing market has shown signs of improvement, many of the related companies that fall under Berkshire Hathaway's umbrella saw good results.

"Clayton Homes, Shaw industries, Acme Brick Company, Benjamin Moore, Johns Manville all performed well. That's the real story as the recovery works its way through the economy," said Thomas Russo, Partner at investment firm Gardner Russo & Gardner. The firm has nearly $1 billion worth of Berkshire Hathaway shares.

Class A Berkshire (BRKA) shares traded at $188,279 Friday. Shares are up 6.40% this year.

Class B Berkshire (BRKB) shares traded at $125.83, up 6.13% year to date.

First Published: August 1, 2014: 6:01 PM ET

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