Berlin court upholds city's ban on Uber
LONDON -- A Berlin court Friday upheld a ban imposed on Uber, the ride-sharing service, that had barred it from operating in the German capital.
The decision, however, stands in contrast to a ruling earlier this month by a separate court in Frankfurt that overturned a nationwide ban against the startup's car-sharing service, which connects drivers with prospective passengers through a smartphone application.
As part of the decision Friday, the Berlin court agreed with the local authorities, which ruled in August that Uber did not have the proper licenses or safety checks in place to operate in the city.
The court's ruling followed heavy lobbying by the German taxi drivers' associations that accuse the startup of not complying with the rules followed by regular German taxi drivers. Uber is valued at more than $15 billion and operates in more than 100 cities around the world.
Centuries-old cities in Europe have become a major battleground for the fast-growing American startup, which has spread across both continents since the service was founded in 2009.
Earlier this year, more than 10,000 taxi drivers across Europe took to the streets to protest Uber's ride-sharing service.
-- The Associated Press
Air Berlin cancels $5 billion Boeing order
Boeing Co. lost an order valued at almost $5 billion as Germany's Air Berlin, struggling with losses and dwindling traffic, scrapped aircraft purchases that included the 787 Dreamliner.
Air Berlin, partly owned by Abu Dhabi's Etihad Airways PJSC, said Friday it was abandoning a deal for 18 of Boeing's single-aisle 737s and 15 Dreamliners. Chicago-based Boeing isn't due any compensation because of the cancellation, Air Berlin said in a statement.
The move underscored the financial straits at Air Berlin, which is working to refinance debt and cut spending. For Chicago-based Boeing, losing the 787s will erode this year's net-order tally for the planes while leaving the company's total backlog little changed. Most of Boeing's Dreamliner sales were booked before the wide-body jet's commercial debut in 2011.
"The normal pattern you see for aircraft orders is you have a huge amount of launch orders, and then you inevitably have a bit of a slowdown," Robert Stallard, an RBC Capital Markets analyst in London, said Friday in a telephone interview. "Over time, you'll see more orders."
Boeing's backlog of all jets was almost 5,200 planes at the end of the second quarter, according to data compiled by Bloomberg Intelligence. The total included 3,931 narrow-body 737s and 869 twin-aisle Dreamliners. Through Tuesday, Boeing had 24 net orders for the 787 in 2014.
-- Bloomberg News
Russian bill limits foreign stake in media
MOSCOW -- The lower house of Russian parliament Friday approved a bill that would limit foreign ownership in Russian media to 20 percent amid a severe strain in Russia-West ties regarding Ukraine.
The Kremlin-controlled State Duma on Friday voted 430-2 to pass the measure, which is widely seen as the Kremlin's move to further stifle media freedom. The bill needs to be approved by the equally pliant upper house and signed by President Vladimir Putin to become law, steps considered to be a formality.
The current law limits foreign ownership of broadcast media to 50 percent and doesn't restrict print media.
While all nationwide television stations are controlled by the state and most print media are full of adulation of Putin, some print outlets with foreign ownership, including the Vedomosti business daily and the Russian Forbes magazine, often have been critical of the Kremlin policies.
Alexander Viknokurov, the main investor in Dozhd, a leading independent TV station, said Friday that Vedomosti and Forbes were the top targets of the new legislation.
-- The Associated Press
Air-bag recall affects 850,000 Fords
NEW YORK -- Ford is recalling about 850,000 cars and SUVs because of a problem that could stop the air bags from working in a crash.
The recalled models include the 2013-14 Ford C-Max compact, Fusion midsize, Escape SUV and the Lincoln MKZ luxury car, all sold in North America.
Ford said the restraints control module in the car could short circuit, causing the air-bag warning indicator to light up. If the short circuit occurs, restraint devices including the air bags, pretensioners and side curtains might not work in a crash.
The short circuit could also affect the car's stability control and other systems.
Ford Motor Co. said it is unaware of any accidents or injuries related to the problem. Dealerships will replace the restraints control module at no cost.
The company said 745,000 of the vehicles were sold in the U.S., with 82,000 sold in Canada and 20,000 sold in Mexico.
-- The Associated Press
Gross leaves Pimco, joins Janus Capital
Bill Gross, who co-founded Pacific Investment Management Co. more than four decades ago and rose to become manager of the world's biggest bond mutual fund, is leaving amid a dispute with management over how to move the firm forward and end record redemptions.
Gross, 70, and until Friday manager of the $222 billion Pimco Total Return fund, will join Janus Capital Group Inc. to oversee a new bond fund, according to a statement from Denver-based Janus.
"I look forward to returning my full focus to the fixed income markets and investing, giving up many of the complexities that go with managing a large, complicated organization," Gross said in the statement. "I chose Janus as my next home because of my long standing relationship with and respect for CEO Dick Weil and my desire to get back to spending the bulk of my day managing client assets."
The departure of Gross caps a tumultuous year for Pimco and marks the end of an era for the firm he helped create in 1971. Pimco in January announced the biggest management reorganization in its history after the abrupt resignation of former CEO Mohamed El- Erian, who had clashed with Gross over management of the firm. Gross's main fund has trailed rivals and investors have turned away from traditional fixed-income strategies in anticipation of rising interest rates.
-- Bloomberg News
Business on 09/27/2014