The daily business briefing: May 24, 2016

1. Toyota expands recall over Takata airbags

Toyota recalled nearly 1.6 million more U.S. vehicles fitted with front-side Takata airbags. Takata, under pressure from U.S. regulators, earlier this month declared 35 million to 40 million more inflators in the U.S. to be defective. Faulty Takata inflators can rupture, and have been linked to 13 deaths and more than 100 injuries worldwide. Toyota has now recalled 4.73 million vehicles in the U.S. over Takata airbags. The new recall involves some Corolla, Matrics, Yaris, 4Runner, Sienna, Scion xB, Lexus, ES, GX, and IS vehicles from between 2006 and 2011.

Reuters

2. Appeals court throws out $1.27 billion Bank of America penalty

A federal appeals court on Monday reversed a lower court's $1.27 billion penalty against Bank of America over mortgages sold by its Countrywide unit. The U.S. Court of Appeals for the Second Circuit said the government had failed to show that Bank of America had intended to commit fraud under a program before the financial crisis called Hustle, which cranked out shoddy mortgages then misrepresented them in sales to Fannie Mae and Freddie Mac. The government-backed lenders were then kept afloat with government money during the financial crisis.

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MarketWatch

3. Toll Brothers beats expectations as luxury home sales rise

Toll Brothers, the largest luxury homebuilder in the U.S., reported a 31 percent increase in quarterly earnings, beating analysts' expectations. Profit also was strong. The company reported Tuesday that it had sold more luxury homes at higher prices, especially in the West, signaling strength in the market for high-end housing. The stock market's rebound after a slide in early 2016 has lifted demand for luxury real estate as Toll Brothers expanded in some of the country's wealthiest areas, such as California and New York.

Reuters

4. British pound makes gains as Brexit support falls among older voters

The British pound rose on Tuesday after a poll published late Monday indicated that older UK voters are drifting away from the campaign to exit the European Union. Older Britons previously had largely backed the so-called Brexit campaign. The pound gained 0.7 percent against the dollar, its first rise in three days. Bank of England Governor Mark Carney is reiterating concerns to Parliament's Treasury Committee that a summertime referendum on the matter is causing "substantial" uncertainty.

Bloomberg

5. Ford promises more partnerships as startups push auto industry change

Chairman Bill Ford said Monday that Ford Motor Co. would be working with more companies as it expands beyond making and selling cars. "You'll see a lot of partnerships, a lot more than you used to see in the auto industry," Ford said at a conference on entrepreneurship in Detroit. He did not elaborate, although Ford is already working on strategies for self-driving cars and connecting vehicles to the internet. Ford said Detroit needs to lead as startups change how people move. "This should be mobility central, not Silicon Valley," he said.

Reuters The Detroit News