The daily business briefing: September 16, 2016

Fiat Chrysler announces recall over air bag defect, Deutsche Bank shares plummet, and more

The Deutsche Bank logo in Germany
(Image credit: Thomas Lohnes/Getty Images)

1. Fiat Chrysler recalls 1.9 million vehicles over air bag defect

Fiat Chrysler announced Thursday that it was recalling 1.9 million vehicles worldwide due to an air bag defect that has been linked to three deaths and five injuries. The defect involves air bags and seat-belt pretensioners that do not deploy in some crashes. The equipment was installed in the Chrysler Sebring, 200, Dodge Caliber, Avenger, Jeep Patriot, and Compass SUVs between 2010 and 2014. About 1.4 million of the recalled vehicles were sold in the U.S.

Reuters

2. Deutsche Bank shares plummet on report of mortgage-security settlement

Deutsche Bank shares plunged by about 8 percent early Friday after a report that the U.S. Justice Department had asked the German lender to pay $14 billion to settle several investigations over the sale of mortgage securities during the financial crisis. The settlement was first reported in The Wall Street Journal; Deutsche Bank later confirmed that the Justice Department had proposed a $14 billion settlement, but said it had "no intent to settle these potential civil claims anywhere near the number cited. The negotiations are only just beginning."

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The Wall Street Journal MarketWatch

3. Samsung says replacement Galaxy Note 7s available shortly

Samsung officially recalled 1 million Galaxy Note 7 smartphones sold in the U.S., and told customers Thursday that replacements would be available in most stores no later than Sept. 21. Samsung has received 92 reports of overheating Galaxy Note 7 batteries in the U.S., resulting in 26 burns and 55 cases of property damage. The recall, which Samsung is undertaking in cooperation with the U.S. Consumer Product Safety Commission, marked a major setback for the South Korean electronics giant, which was hoping its latest smartphone update would help boost sales as rival Apple launched the new version of its iPhone.

CNET Reuters

4. Stocks get boost as weak sales figures douse rate-hike expectations

U.S. stocks rallied on Thursday after the release of worse-than-expected U.S. retail and automobile sales figures, which decreased expectations that the Federal Reserve would raise interest rates next week. Retail sales dropped by 0.3 percent last month; economists had forecast just 0.1 percent decline. The Dow Jones Industrial Average and the S&P 500 closed up by 1 percent. The tech-heavy Nasdaq Composite Index gained 1.5 percent, helped by a 3.4 percent surge for Apple shares.

Reuters MarketWatch

5. U.S. fails 'competitiveness' test due to political polarization

The U.S. is "failing the test of competitiveness" largely due to its dysfunctional political system, according to a Harvard Business School U.S. Competitiveness Project report released Thursday. Politicians largely agree on a number of policies such as tax reform, easing immigration for highly skilled workers, and investing in infrastructure, which could unlock growth, but partisan gridlock is preventing compromises that could lead to progress, the researchers say.

Forbes

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