Takata hid results of secret airbag tests - report

HONG KONG (CNNMoney)

The report, published by the New York Times, alleges that Takata engineers carried out secret tests on discarded airbags in 2004, after becoming concerned over an incident in Alabama in which one of the company's airbags ruptured.

The Japanese company's engineers were alarmed by what they found. But instead of alerting regulators, the report says that Takata executives "ordered the lab technicians to delete the testing data from their computers and dispose of the airbag inflaters in the trash."

The first airbag recall would not be issued until November 2008.

"All the testing was hush-hush," one former employee told the Times. "Then one day, it was, 'Pack it all up, shut the whole thing down.' It was not standard procedure."

Shares in Takata, which had been trading higher in Tokyo, plunged more than 7% after the report was published. Hideyuki Matsumoto, a Takata spokesperson, said the company had no comment.

In total, 10 different automakers have recalled vehicles due to flawed airbags that can explode and hit passengers with shrapnel. There have been four deaths and dozens of serious injuries tied to the faulty airbags, according to the Center for Auto Safety.

Related: The fix for exploding airbags may be more deadly than the problem

Last week, Takata and Honda Motor (HMC), one of the affected brands, were hit by a U.S. federal lawsuit. The suit seeks class action status on behalf of the owners of all five million Hondas affected by the recall, alleging that they've suffered inconvenience and financial losses.

Other automakers including Toyota (TM), BMW, Mazda (MZDAF), Mitsubishi (MBFJF), Subaru, Nissan, Ford (F) and General Motors (GM) have also issued recalls.

This has been a record year for car recalls affecting more than 52 million vehicles. About one in every five cars on the road has been recalled.

First Published: November 6, 2014: 11:33 PM ET

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Stocks: 5 things to know before the open

Click chart for in-depth premarket data.

LONDON (CNNMoney)

For starters, it's Friday. And the U.S. government is releasing its monthly jobs report, which just might send stocks to new record highs.

Here are five things you need to know before the opening bell rings in New York:

1. Jobs, jobs, jobs: The U.S. Bureau of Labor Statistics will post its monthly jobs report at 8:30 a.m. ET. Economists surveyed by CNNMoney project that 233,000 jobs were created in October, and the unemployment level will remain at 5.9%.

In September, employers created 248,000 new jobs and the nation's unemployment rate fell below 6% for the first time in six years.

"U.S. [jobs] data is the most important data on earth and any kind of extreme reading today could have a significant impact on the markets," said Naeem Aslam, chief market analyst at AvaTrade.

2. Market moves: U.S. stock futures are inching higher in anticipation of a strong jobs report.

Gold and oil prices were relatively flat.

The main U.S. stock market indexes all closed with gains Thursday. The Dow Jones industrial average and S&P 500 rose by about 0.4%, closing at new all-time highs.

Related: Fear & Greed Index

3. What's up Warren Buffett?: Berkshire Hathaway (BRKA), the investment company run by famed billionaire Warren Buffett, is slated to report quarterly results after the close of trading.

Berkshire has suffered some losses recently on its stakes in Coca-Cola (KO), IBM (IBM, Tech30) and British grocery chain Tesco (TSCDY).

4. Other earnings -- Disney, Allianz: Shares in Disney (DIS) were falling by about 2% premarket after the firm reported fourth quarter results that beat Wall Street expectations.

Much of Disney's success came from Marvel's summer standout "Guardians of the Galaxy" and its "Sleeping Beauty" redux "Maleficent."

Shares in Allianz (AZSEY) were surging by 5% in Germany after the company posted upbeat quarterly results and announced a dividend hike. Revenue and profits rose in the third quarter, despite problems at its asset management arm, which includes Pimco.

Investors pulled 49.2 billion euros ($61 billion) out of Pimco funds in the quarter, mostly after the founder, Bill Gross, made his abrupt departure from the company.

5. International markets overview: European markets are mostly rising in early trading.

Asian markets ended the week with mixed results.

The Russian ruble continues to weaken against the U.S. dollar -- trading near record lows -- after the central bank said it would limit its intervention in markets to support the currency.

First Published: November 7, 2014: 5:07 AM ET

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The 'temporary' recession tax you're still paying

NEW YORK (CNNMoney)

The downturn, of course, hammered state budgets. In response, 14 states and the District of Columbia tried to plug their revenue shortfalls in part by imposing temporary taxes, a new report from the Tax Policy Center found.

Combined, those states and D.C. imposed 25 temporary tax measures between 2008 and 2011.

Related: States with the highest state and local taxes

Of those 25, however, 13 have since been extended, made permanent or replaced. Nine were actually allowed to expire on schedule and 3 still haven't reached their expiration date.

Connecticut, for instance, extended its temporary 10% corporate income surtax twice, and has since increased it to 20%.

Hawaii temporarily increased its lodging tax by 2 percentage points to 9.25%, then made that increase permanent.

Kansas raised its sales and excise tax from 5.7% to 6.3%. Then it ratcheted back the increase a little - to 6.15% - and made that permanent.

Similarly, Delaware increased its top income tax rate by 1 percentage point to 6.95%, then lowered it to 6.6% in two steps and made it permanent.

Related: What now for taxes after Republican sweep?

New York, meanwhile, replaced part of its recession-era income tax hike on the rich with another temporary tax hike on the even richer. The second temporary tax, now set to expire in 2017, imposes an 8.82% top rate on income over $2 million.

Among states that actually let their temporary tax hikes expire on schedule and for good are: Arizona, Maryland, New Jersey and North Carolina.

Temporary taxes weren't the only tools those 14 states used to balance their budgets, which they're required to do. Due to the depth of the recession and their limited rainy-day funds to combat it, the report found these states also -- along with most states -- had to cut spending and raise taxes in other ways.

First Published: November 7, 2014: 5:50 AM ET

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This suit will give you superhuman strength

NEW YORK (CNNMoney)

Lockheed Martin (LMT) has developed Fortis, an exoskeleton that can shoulder the first 36 pounds of whatever its user is holding. The company is beginning to test the technology in factories around the country, starting with the C-130 plant in Marietta, Ga.

Putting on Fortis looks a bit like attaching robot parts to your own appendages, with metal rods and braces outlining the body of the suit. While wearing it, a large tool feels light enough to swing around.

A 30-plus pound riveter felt "pretty much weightless" to Jim Medley, an assembly line worker at the cargo plane factory.

He was more graceful with his tools than on his feet, however: walking in Fortis is closer to a waddle. Still, Medley found that the equipment substantially lightened his load while drilling and riveting a section of a C-130J wing.

The benefit of this newfound strength (aside from feeling like a superhero) is that it enables workers to go for long periods without needing a break. The suit minimizes muscle fatigue, which increases productivity.

"It's actually holding the weight ... I just have to balance it and maneuver it to where it needs to go, " Medley said.

Fortis works by transferring weight from the arm of the exoskeleton through a series of joints and ultimately to the ground. It has counterweights on the back so users don't fall over.

The technology was under development for six years. Lockheed has developed four units so far, with more on the way. Two were sent to the Navy in mid-October for testing and evaluation at their shipyards.

Related: Shopping? The robot will help you now

"Workers there were experiencing fatigue from holding grinders up on the sides of ships for long periods of time," Lockheed's exoskeleton technology manager Patricia Aelker said.

The other two are traveling to Lockheed facilities around the country as the company tests different applications. At the C-130 plant, Fortis was put to work for riveting, grinding and overhead drilling.

"Iron Man is a fictional character that breaks the laws of physics, but Fortis is a real product for real people," Aelker said.

First Published: November 5, 2014: 11:53 PM ET

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The latest trend in housing? Roommates

NEW YORK (CNNMoney)

The percentage of adults living with someone other than a spouse or partner hit 32% nationwide in 2012, up from 26% in 2000, according to Zillow's analysis of the latest Census Bureau data.

And, judging by the ongoing decline in homeownership rates and tightened supply of rental vacancies, the trend appears to be gaining momentum.

People start pairing up when rents are climbing and incomes aren't keeping up -- and in recent years, rents have really been on a tear. They rose 6.5% over the 12 months ended in September, according to Trulia. Meanwhile, wages have remained more or less flat.

Related: Why I have a roommate at my age

The numbers make the case for sharing space.

In Brooklyn, N.Y., for example, the average one-bedroom apartment rents for more than $2,600 a month, according to Jonathan Miller, president of appraisal firm Miller Samuel. Renters willing to live together, however, pay an average of $3,200 for a two bedroom, each saving $1,000 a month. Those living in three bedrooms, which average $4,200 a month, save even more at $1,200 per person.

Related: Most innovative cities

Working adults in doubled up households tend to earn less, according to Zillow. So sharing a place enables them to afford and compete for more attractive housing.

Writer Dina Wilcox and executive coach, Ann Fry, live in Manhattan, one of the nation's most expensive housing markets. Both in their late 60s, most of Wilcox's and Fry's peers live with significant others or by themselves.

But these two have found life more enjoyable and affordable by splitting things like the utility bills and food costs in their Harlem apartment. Fry, for example, pays just $1,500 a month for her share of housing expenses.

"Financially, it's terrific. It meant I could pay what I was paying in my old sublet," said Fry.

There's also the added bonus of companionship: The two often entertain and cook together, she said.

Dina Wilcox and Ann Fry live together in an apartment in Harlem.

Thikshan Arulampalam, 46, said he has had a roommate for almost the entire 18 years he's lived in New York City. He's been thankful for the savings. Money got very tight after he was laid off last year and started his own IT company.

"My friends think I am crazy and should move to a suburb and live on low rent on my own," he said.

Related: Colleges with the highest paid grads

Not surprisingly, the metro areas with the largest percentage of doubled (or tripled or quadrupled) up households are the priciest ones. Among the cities where 42% or more of households include roommates: Honolulu, Los Angeles, Riverside, Calif., Miami, and New York, according to Zillow's analysis of Census data.

Cities where roommates are few and far between are mainly small affordable places in the Midwest, where slow growth means little pressure on housing stocks and rents and home prices are reasonable. These are places like Sheboygan, Oshkosh and Wausau, Wisc. as well as Ithaca, N.Y.

First Published: November 5, 2014: 6:52 PM ET

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Stocks: 5 things to know before the open

Click chart for in-depth premarket data.

LONDON (CNNMoney)

U.S. stock futures are dipping lower after both the Dow Jones Industrial Average and the S&P 500 surged to new all-time highs Wednesday.

Here are five things you need to know before the opening bell rings in New York:

1. Market movers: Shares in Tesla (TSLA) are set to jump Thursday after the company posted earnings that beat expectations. Whole Foods (WFM) stock is also expected to pop after reporting record sales.

Shares in Time Warner (TWC) -- which owns CNNMoney -- could also be on the move after its quarterly results impressed investors.

2. Earnings: Some of the big names reporting earnings before the opening bell include AOL (AOL, Tech30), AstraZeneca (AZN), Cablevision (CVC), and DirecTV (DTV). Walt Disney (DIS) and Zynga (ZNGA) will post after the close.

In Europe, investors will be parsing through earnings from Adidas (ADDYY), Commerzbank (CRZBY), Siemens (SIEGY) and fashion brand Hermes (HESAY).

Related: Fear & Greed Index

3. Oil: OPEC will present its World Oil Outlook at 8:30 a.m. ET. Traders are hoping it will give more insight into long term plans for oil production and prices.

Crude oil prices have fallen by about 26% since the middle of June and are currently trading below $79 per barrel in New York, which is squeezing many nations that depend on energy exports.

Related: These countries are getting killed by cheap oil

4. Economics: There's a focus on U.S. jobs this morning. The U.S. government will post weekly jobless claims at 8:30 a.m. ET. The Challenger Job Cuts report for October will also be out at 7:30 a.m.

Central banks are also top of mind: Traders are waiting on the European Central Bank to issue its latest monetary policy decision at 7:45 a.m ET and hold a news conference at 8:30 a.m.

The Bank of England will also issue its policy decision this morning.

Related: CNNMoney's Tech30

5. International markets overview: All the major European markets were declining in early trading.

Asian markets mostly closed in the red.

First Published: November 6, 2014: 5:10 AM ET

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Red-leaning states say yes to a higher minimum wage

NEW YORK (CNNMoney)

Based on the results tallied by 2:45 a.m. EST, voters in Alaska, Arkansas, Nebraska and South Dakota -- all red-leaning states -- had approved proposals to raise their state-level minimum wages over the next few years.

Alaska: The minimum wage will rise from $7.75 an hour today to $9.75 by 2016.

Arkansas: The minimum wage will rise from $6.25 an hour now to $8.50 by 2017.

Nebraska: From $7.25 today to $9.00 by 2016.

South Dakota: From $7.25 currently to $8.50 next year; it will be adjusted for inflation thereafter.

They join 12 other states and Washington, D.C., all of which have moved in the past two years to raise their state minimums.

2014 minimum wage, state by state

Voters in Illinois also approved a measure Tuesday night to raise that state's minimum wage from $8.25 today to $10. But the vote was nonbinding, operating as more of an opinion poll, and the results won't change Illinois law.

Meanwhile, the Democratic push in Congress to raise the federal minimum wage to $10.10 from $7.25 has gone nowhere.

Banks to pay everyone at least a 'living wage'

At a more local level, voters in the California cities of San Francisco, Oakland and Eureka also were asked to weigh in on a higher minimum wage.

Votes there are still being tallied, but preliminary numbers suggest the measure was approved in San Francisco, where the minimum wage would be gradually raised to $15 by 2018, up from $10.74 currently.

L.A. mayor calls for $13.25 minimum wage

San Francisco Mayor Edwin Lee declared victory on the issue, saying "San Francisco voters sent a message loudly and clearly to the nation that we can take on the growing gap between rich and poor, we can give a well-deserved raise to our lowest-wage workers, and we can do it in a way that protects jobs and small business."

If the final tally does confirm majority approval of the wage hike in San Francisco, that city will be at the front of the pack with Seattle, which recently approved a $15 minimum by 2017.

Many low-wage workers not protected by minimum wage

First Published: November 5, 2014: 1:20 AM ET

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Stocks: 5 things to know before the open

Click chart for in-depth premarket data.

LONDON (CNNMoney)

Here are the five things you need to know before the opening bell rings in New York:

1. Midterm election results: CNN projections show Republicans won the balance of power in both the Senate and the House.

This gives the GOP control of Congress and the power to pin down President Obama during his last two years in office. Many investors expect that the Republican takeover of the Senate will lead to more pro-business policies, and benefit the energy and financial sectors.

U.S. stock futures were pushing higher before the open.

2. Earnings and economics: Time Warner (TWC), Tim Hortons (THI) and Mondelez International (MDLZ) are set to post quarterly results before the opening bell.

Tesla Motors (TSLA), CBS (CBS), News Corp (NWS) and Whole Foods (WFM) will report after the close.

Shares in TripAdvisor (TRIP) are getting pummeled premarket -- down 12% -- after the travel website reported worse than expected earnings Tuesday. Competitor Priceline (PCLN, Tech30) also took a beating in the market earlier this week after issuing a weak forecast.

On the economics side, the ADP national employment report for October will be published at 8:15 a.m. ET. This comes just ahead of Friday's highly anticipated monthly jobs report from the U.S. government.

Related: Fear & Greed Index

3. European market movers: European markets were all rising in early trading.

A stand-out performer was British grocery chain Marks and Spencer (MAKSY). The company reported better than expected earnings and shares shot up by 8%.

Meanwhile, Rolls-Royce (RYCEY) shares were edging down by about 1% in London, a day after the company said it was cutting 2,600 staff and appointing a new finance chief.

4. Asian market movers: Shares in Japan's Softbank (SFTBF) declined by 2.3% after the telecom company slashed its earnings expectations for the year, based on its investment in Sprint (S). The struggling U.S. carrier said this week it's laying off 2,000 people, after posting another quarter of massive losses.

Shares in Japanese automaker Nissan (NSANY) got a 2% boost after it reported better than expected quarterly results. The weaker yen has helped, making it cheaper for foreigners to buy its cars.

Meanwhile, Asian markets ended with mixed results, though the moves were not particularly dramatic.

Related: CNNMoney's Tech30

5. Tuesday market recap: U.S. stocks closed mixed Tuesday. The Dow Jones industrial average posted a gain of nearly 18 points, while both the S&P 500 and Nasdaq slid about 0.3%.

First Published: November 5, 2014: 5:28 AM ET

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Jetpacks are real. And they're awesome

NEW YORK (CNNMoney)

Jetpacking may sound like something out of a science fiction film, but I experienced firsthand why it's an activity that's quickly gaining popularity among thrill seekers worldwide.

Don't feel bad if you've never heard of jetpack rides. They've been around for just a few years and are only available in a limited number of warm weather locales. But the plunging price tag for jetpacks could expand the water sport's appeal.

How was it? In a word, thrilling. My experience at Jetpack America in Newport Beach, Calif. was a lot of fun despite the somewhat unnerving initial feeling that naturally goes along with strapping on a 30-lb. pack and jumping into the water.

There's definitely a learning curve that goes with this water sport. Think: not as simple as hopping on a jet ski but not as difficult to get the hang of as surfing.

After a few minutes of learning the basics, I managed to take off, fly a few feet above the water and make basic turns. Ten minutes later I was able to soar about 25 feet in the air and dive beneath the surface.

Of course, this wouldn't have been possible without a comprehensive training course that put me at ease.

It was also hugely helpful to have an instructor in my ear at all times calmly telling me what I was doing right -- and wrong. The training and supervision from multiple instructors and requirement to wear a life jacket also made the whole experience feel safer than it may sound at first blush.

Related: Branson still plans to be first space passenger

How does it work? The jetpack is powered by a jet ski or a pod that sucks up huge amounts of water and shoots it to the jetpack through a hose. An instructor or the user then controls the throttle, regulating how much water propels the rider.

"It's truly the newest water sport out there. There really hasn't been anything since the jet ski or parasailing," said Dean O'Malley, president of Jetpack America.

It's not cheap. Flights at Jetpack America range between $99 for a 10-minute flight and $699 for a 60-minute "James Bond Flight Experience" that includes premium video (three GoPro (GPRO) cameras), a T-shirt and a hat.

My 25 minutes of flying time ($169 on Groupon (GRPN)) felt about right because the learning process was tiring.

The lofty price tag stems from the fact that until recently, jetpacks retailed for an eye-popping $100,000. That's not even counting the $10,000 to $20,000 in liability coverage each unit carries.

Related: Floating train could whisk you from DC to NY in an hour

Cheaper prices propel expansion: However, jetpacks manufactured by Shanghai-based X-Jetpacks are now selling for $9,500 plus the additional cost of a jet ski.

"If you look at the numbers, very quickly you can pay off the initial investment and be operating under a strong cash flow positive business," said O'Malley.

The toughest part is finding the perfect location that offers a constant stream of thrill seekers and warm weather.

For obvious reasons, Florida is already a popular place for jetpack operators. Jetpack America has locations in Newport Beach and San Diego, plus it recently expanded to Las Vegas.

Liftoff mode? Thanks to the lower prices, the company is also looking at expanding north to seasonal spots like San Francisco, Seattle and even Vancouver. It provides training and equipment for new entrants to the jetpack market all over the world, including Cabo San Lucas, the Cayman Islands, Singapore and Vietnam.

"We've done so much to expand the awareness and grow the sport but we haven't hit that tipping point where it's truly mainstream, which is frustrating. It's also exciting knowing that there is that next level we will hit at some point," said O'Malley.

Jetpack America leans heavily on Facebook (FB, Tech30), Instagram and YouTube to drum up interest. The company also sports lofty rankings and lots of positive reviews on sites like Yelp (YELP) and TripAdvisor (TRIP).

Eventually, jetpacking could achieve lift off and gain enough popularity to take a piece of the $646 billion that Americans spend on outdoor recreation each year.

"It's the perfect kind of attraction for the generation that requires a little more stimulus to keep their pulses going," said Jess Ponting, a tourism professor at San Diego State University.

First Published: November 5, 2014: 7:08 AM ET

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JPMorgan facing criminal probe over currency trades

HONG KONG (CNNMoney)

The largest U.S. bank by assets made the disclosure Monday in a regulatory filing. JPMorgan (JPM) said that other regulators, including the Commodity Futures Trading Commission and the U.K. Financial Conduct Authority, are pursuing civil investigations.

The bank said it was cooperating with the regulators, and was engaged in active discussion with the DOJ. "There is no assurance that such discussions will result in settlements," the filing cautioned.

The firm, led by CEO Jamie Dimon, also hiked one estimate of the possible costs of current legal proceedings against the bank to $5.9 billion.

JPMorgan (JPM) is far from the only bank under investigation for possible foreign currency market abuse. Financial regulators have been looking into whether the banks sought to manipulate interest rates, with internal and external probes involving UBS (UBS), Deutsche Bank (DB), Barclays (BCS) and the Royal Bank of Scotland (RBS), among others.

The disclosure from JPMorgan comes as U.S. officials turn up the heat on big banks.

Related: Forex fraud: Now it's getting serious

JPMorgan acknowledged the changing climate in the regulatory filing, saying that U.S. government officials have "emphasized their willingness to bring criminal actions against financial institutions" in recent months.

"Such actions can have significant collateral consequences for a subject financial institution, including loss of customers and business and the inability to offer certain products or services or operate certain businesses for a period of time," the bank said.

First Published: November 4, 2014: 5:11 AM ET

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