Ford boosts CEO pay 11% to $23.2 million

Ford CEO Alan Mulally is credited with turning the company around.

NEW YORK (CNNMoney)

Mulally was paid $23.2 million in 2013, up from about $21 million the previous year, Ford (F, Fortune 500) said in a regulatory filing.

For 2013, the automaker's earnings rose 26% to $7.2 billion. The company also shared its strong performance with its hourly factory workers with a record profit-sharing bonus of about $8,800 each.

Mulally became Ford's CEO in 2006 and is credited with turning the automaker around, allowing it to avoid the bankruptcy and federal bailout that rivals General Motors and Chrysler Group required during the recession.

Mulally is also highly regarded in the corporate world and rumors circulated earlier this year that he would be tapped by Microsoft (MSFT, Fortune 500) to replace retiring CEO Steve Balmer. But Mulally put those rumors to bed in January and said he would stay with Ford at least through 2014.

Ford is paying Mulally more than what GM (GM, Fortune 500) paid former CEO Dan Akerson in 2013. Akerson retired in January and was replaced by Mary Barra, whose pay package totals $14.4 million.

Mulally's base salary remains the same at $2 million. His raise comes from a bigger bonus and increase in stock awards.

First Published: March 28, 2014: 4:45 PM ET

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S&P downgrades Target for data breach

Last year's data breach keeps hurting Target. S&P downgraded it one notch.

NEW YORK (CNNMoney)

The breach compromised credit card numbers and personal information of tens of millions of customers during the 2013 holiday season. Target (TGT, Fortune 500) has said the hack cost the company as much as $61 million in the final months of 2013.

S&P expects the breach to have a "somewhat lingering effect" on traffic at the retailer's stores through at least August of this year. Sales slowed in the most recent quarter, which ended Feb. 1.

Target recently said its ongoing investigation of the breach could turn up "additional information that was accessed or stolen."

But the agency also said Target's outlook is stable. Although the retailer lost $723 million in Canada last year, S&P expects those losses to narrow in 2014. The agency also considers costs due to the data breach to be "significant but manageable."

First Published: March 28, 2014: 5:22 PM ET

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GM adds 824,000 vehicles to recall

NEW YORK (CNNMoney)

Until today the recall included the Chevrolet Cobalt and HHR, the Pontiac G5 and Solstice, and Saturn Ion and Sky through model year 2007. Now the company is including all model years of those vehicles because faulty switches could have been installed as a repair after owners purchased one of the newer models.

About 95,000 faulty switches were sold to dealers and wholesalers and about 90,000 of those were used to make repairs, the company said.

The new recall adds to the 1.4 million vehicles already recalled in the United States.

In affected vehicles, the ignition can switch the car off while it is running, disabling the power steering and air bags. At least 12 deaths have been attributed to the issue. Although GM has recalled the vehicles, it has said they are still safe to drive if owners remove any extra weight from key rings.

Related: GM's steps to a recall nightmare

"Trying to locate several thousand switches in a population of 2.2 million vehicles and distributed to thousands of retailers isn't practical," said CEO Mary Barra in statement. "Out of an abundance of caution, we are recalling the rest of the model years," she said.

GM has been criticized for how it has handled the recall because it has admitted that some employees were aware of problems with the ignition switch in small cars at least as early as 2004. Barra will testify before a U.S. congressional subcommittee on April 1 as part of an investigation into the automaker's handling of the flawed ignition switch.

Owners who may have had a suspect part installed in their cars will receive a letter the week of April 21, according to the company. GM (GM, Fortune 500) dealers will replace the ignition switch for free and customers who had paid to have the switch replaced previously will be eligible for a reimbursement.

The National Highway Traffic Safety Commission urges impacted drivers to have their vehicles repaired promptly after receiving the notification from GM. In the meantime, the group advises them to follow GM's recommendation to use only the ignition key with nothing else on the key ring when driving the vehicle.

First Published: March 28, 2014: 6:16 PM ET

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Hong Kong buyers send London real estate soaring

Developers sometimes use scale models to illustrate planned London developments for Hong Kong buyers.

HONG KONG (CNNMoney)

London real estate is among the most desirable in the world, attracting wealthy investors looking for high returns -- often at the expense of city natives who are being priced out of many neighborhoods.

Foreign money so dominates that nearly 70% of newly built properties in prime areas of central London were bought by foreign nationals between 2011 and 2013, according to realtor Knight Frank.

And nowhere is the frantic race for London real estate more evident than in Hong Kong, where newspapers regularly feature full-page advertisements for new buildings and developers host sales events in swanky hotels.

Hong Kong's marquee Mandarin Oriental hotel is transformed into a showroom for London properties on most weekends, with realtors including Knight Frank and Colliers seeking to attract buyers -- many of whom are willing to shell out for an apartment sight unseen.

Competition for these buyers is intense, so much so that sellers even do battle over securing the best function rooms at the Mandarin.

"The buyers we are dealing with are very experienced investors," said Neil Batty, Knight Frank's head of international project marketing. "There are also people who come every week to look at the projects that are on offer, so they understand what's good value."

Batty said that 130 to 140 potential investors come through the doors on a typical weekend at the Mandarin. The would-be buyers are met with floor plans, view books with glossy images of Buckingham Palace, as well as a sizable supply of dim sum, croissants and coffee.

Buying at the Mandarin is a full-service experience. As a deal is signed, investors can meet with lawyers or discuss furniture options with interior designers.

Some investors hope to rent out the property to tenants. Others buy for their children studying at boarding schools and universities across the UK. Most sign up for developments that won't be completed for years.

"Asian buyers are very savvy and are used to reading plans. They are able to visualize what they are getting in the end," explained Cherrin Loo, the Head of International Residential Properties at Savills China.

Related story: Record London house prices stoke bubble fears

Jenny Leung, a Hong Kong homeowner who also has property in Australia, said she was looking to diversify her investment portfolio in 2011 when she bought an apartment in London's Canary Wharf through a property exhibit.

"You do want some kind of diversification," she said. "You don't just want to invest in your home country or home town."

Others value London real estate for its raw earning power, and see property as a stable alternative to stocks.

"If you look at the performance of the stock market over the last 10 years compared to central London, I think that most people would come out worse if they were in the stock market," said Ashley Osborne, executive director of international properties at Colliers International.

"There's just a feeling that people would rather have a stake in something that they own outright."

Related story: Rich Chinese overwhelm U.S. visa program

For developers, selling in Hong Kong is a matter of going where the money is. Euroterra co-founder Pantazis Therianos said he chose to focus on Asia after observing the success that other developers were having in the region.

But some developers fear the appetite for London properties may slow as the government prepares to tax future investment gains made by non-residents.

Currently, only UK residents are subject to capital gains tax on their second homes -- a tax that is usually levied at 28%.

The capital gains tax change, due to take effect in April 2015, will require overseas buyers to surrender some of the profits they make on UK property.

Some foreign buyers will be affected by another tax change. From this month, the government is applying stamp duty at a rate of 15% to any purchase of residential property worth £500,000 or more made through a company.

And pressure is building for measures to prevent foreign investors being offered first refusal on prime London real estate. The city's mayor has urged developers to stop marketing new homes to overseas buyers before they've been made available to Londoners.

-- CNNMoney's Mark Thompson contributed to this article.

First Published: March 27, 2014: 9:42 PM ET

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Russia looks to Asia for trade cushion

Russian President Vladimir Putin is seeking China's support on Crimea.

HONG KONG (CNNMoney)

The Kremlin's calculations rely heavily on China -- already the second largest importer of Russian goods and a voracious energy consumer.

Increased Russian reliance on China would be helped along by a thaw in relations between Moscow and Beijing in recent decades. The countries share a border, often team up on U.N. Security Council votes and frequently trade military equipment.

Should the West pursue new sanctions to isolate Russia -- possibly in response to further incursions into Ukraine -- those ties will be put to the test. Moscow could also widen the search for support to Japan and India.

Related: Ukraine to get $18 billion rescue from IMF

Energy supplies are likely to feature prominently in any shift to the East.

Russia sends more than 7 million barrels of oil a day to the world markets, and its total energy trade earns 70% of its $515 billion in annual export revenue, according to the U.S. Energy information Administration.

It has long pursued a natural gas deal with China, but a final agreement between state-owned behemoths Gazprom and China National Petroleum Corp has been delayed by a disagreement over pricing.

Now, Russia may be willing to accept a lower price in exchange for the security of having another dedicated buyer for its gas. Elsewhere in Asia, Russia could pursue additional business with South Korea and Japan, two traditional U.S. allies that are also big energy importers.

Related: Russian energy should keep flowing

Europe and the U.S. have imposed sanctions on top Russian officials and oligarchs, and one Russian bank, in response to Moscow's annexation of Crimea. They have also warned of tougher measures to come if it destabilizes other parts of Ukraine.

Throwing a wrench into energy markets, however, is something western countries hope to avoid given Europe's reliance on Russian gas.

Related: Russia's U.S. debt not a threat

There are signs, though, that Russia should not presume total Chinese cooperation if it is forced to pursue alternative markets for its exports.

Beijing has been measured in its public position on the crisis in Ukraine, sticking to well-worn statements on the need for dialogue and a diplomatic solution.

The Communist Party is extremely wary of popular uprisings, and top officials were reportedly especially unnerved by the events of the Arab Spring.

And the idea that a dissatisfied region can break away via referendum -- as happened with Crimea -- sets an unwanted example for Tibet and Xinjiang.

This unease was perhaps best reflected in China's decision to abstain, rather than vote with Russia, on a draft U.N. resolution that criticized the Crimea vote.

India is another country with cordial relations with Russia. Putin specifically thanked India -- right after China -- for "understanding" Russian actions in Crimea.

"We are grateful to the people of China, whose leaders have always considered the situation in Ukraine and Crimea taking into account the full historical and political context, and greatly appreciate India's reserve and objectivity," Putin said last week.

First Published: March 27, 2014: 10:18 PM ET

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Stocks: A strong end to a 'meh' March?

Click chart for in-depth premarket data.

NEW YORK (CNNMoney)

U.S. stock futures were all higher ahead of the opening bell.

The first three months of 2014 have been bumpy and it's possible all the major indexes could end the quarter in the red. The Dow Jones industrial average has declined by 1.9% since the start of the year. The Nasdaq is off by 0.6% and the S&P 500 is essentially flat over the same period.

A few economic reports and quarterly results scheduled for release Friday could affect market sentiment.

The U.S. government will publish personal income and spending data for February at 8:30 a.m. ET.

The University of Michigan will also be releasing it's consumer sentiment index at 9:55 a.m.

In corporate news, BlackBerry (BBRY) and Finish Line (FINL) will report earnings before the opening bell.

Shares in Blackberry have recovered by roughly 22% since the start of the year on hopes the company's CEO can revive the struggling smartphone maker. However, shares have declined over the past few days as investors worry about the company's turnaround plans and Societe Generale (SCGLF) downgraded the stock to "sell".

Related: Fear & Greed Index

U.S. stocks ended lower Thursday. The Dow was little changed, while the S&P 500 and Nasdaq ended in the red. Banks, especially Citigroup (C, Fortune 500), were among the biggest losers for the day.

European markets were up slightly in morning trading. The Dax in Germany advanced by 0.9%.

Most Asian markets closed out the trading day with gains, though the Shanghai Composite dipped by 0.2%.

First Published: March 28, 2014: 5:41 AM ET

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Lawyer wants recalled GM cars off the road

The Chevrolet HHR is one of the models included in GM's recall of 1.6 million vehicles worldwide.

NEW YORK (CNNMoney)

GM has told owners of the vehicles with flawed ignition switches that they can safely drive the cars if they remove any extra weight from key rings.

In affected vehicles, the ignition can switch the car off while it is running, disabling the power steering and air bags. At least 12 deaths have been attributed to the issue. About 1.6 million vehicles have been recalled worldwide, including the Chevrolet Cobalt and HHR, Pontiac G5 and Solstice, and the Saturn Ion and Sky built in model years 2003 through 2007.

Related: Lawsuit alleges GM botched recall

Although GM has recalled the vehicles, it hasn't told owners to stop driving them.

Robert Hilliard, the attorney seeking the court order, represents the owners of a 2006 Chevrolet Cobalt who claim the recall has diminished the value of their car due to growing consumer skepticism.

Hilliard's clients say they are concerned there are more than 1 million unsafe vehicles on the road putting other drivers at risk. They want GM to issue a "Park It Now" alert.

"It is a moral imperative that they send a letter to every one of their customers to park it now and do not drive it another foot," Hilliard said.

Related: Steps to a recall nightmare

Judge Nelva Gonzales Ramos has agreed to hear the motion on April 4 in U.S. District Court in Corpus Christi, Texas.

GM (GM, Fortune 500) says that if owners follow its directions the cars are safe to operate.

"GM engineers have done extensive analysis to make sure if you use only the ignition key with no additional items on the key ring, the vehicle is safe to drive," GM spokesman James Cain said Thursday.

The automaker has urged dealers to provide customers worried about their cars with loaner vehicles. About 10,000 people have requested loaners since the cars were recalled in February. Repairs to the recalled cars will begin on about April 7, Cain said.

First Published: March 27, 2014: 8:09 PM ET

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Hong Kong buyers send London real estate soaring

Developers sometimes use scale models to illustrate planned London developments for Hong Kong buyers.

HONG KONG (CNNMoney)

London real estate is among the most desirable in the world, attracting wealthy investors looking for high returns -- often at the expense of city natives who are being priced out of many neighborhoods.

Foreign money so dominates that nearly 70% of newly built properties in prime areas of central London were bought by foreign nationals between 2011 and 2013, according to realtor Knight Frank.

And nowhere is the frantic race for London real estate more evident than in Hong Kong, where newspapers regularly feature full-page advertisements for new buildings and developers host sales events in swanky hotels.

Hong Kong's marquee Mandarin Oriental hotel is transformed into a showroom for London properties on most weekends, with realtors including Knight Frank and Colliers seeking to attract buyers -- many of whom are willing to shell out for an apartment sight unseen.

Competition for these buyers is intense, so much so that sellers even do battle over securing the best function rooms at the Mandarin.

"The buyers we are dealing with are very experienced investors," said Neil Batty, Knight Frank's head of international project marketing. "There are also people who come every week to look at the projects that are on offer, so they understand what's good value."

Batty said that 130 to 140 potential investors come through the doors on a typical weekend at the Mandarin. The would-be buyers are met with floor plans, view books with glossy images of Buckingham Palace, as well as a sizable supply of dim sum, croissants and coffee.

Buying at the Mandarin is a full-service experience. As a deal is signed, investors can meet with lawyers or discuss furniture options with interior designers.

Some investors hope to rent out the property to tenants. Others buy for their children studying at boarding schools and universities across the UK. Most sign up for developments that won't be completed for years.

"Asian buyers are very savvy and are used to reading plans. They are able to visualize what they are getting in the end," explained Cherrin Loo, the Head of International Residential Properties at Savills China.

Related story: Record London house prices stoke bubble fears

Jenny Leung, a Hong Kong homeowner who also has property in Australia, said she was looking to diversify her investment portfolio in 2011 when she bought an apartment in London's Canary Wharf through a property exhibit.

"You do want some kind of diversification," she said. "You don't just want to invest in your home country or home town."

Others value London real estate for its raw earning power, and see property as a stable alternative to stocks.

"If you look at the performance of the stock market over the last 10 years compared to central London, I think that most people would come out worse if they were in the stock market," said Ashley Osborne, executive director of international properties at Colliers International.

"There's just a feeling that people would rather have a stake in something that they own outright."

Related story: Rich Chinese overwhelm U.S. visa program

For developers, selling in Hong Kong is a matter of going where the money is. Euroterra co-founder Pantazis Therianos said he chose to focus on Asia after observing the success that other developers were having in the region.

But some developers fear the appetite for London properties may slow as the government prepares to tax future investment gains made by non-residents.

Currently, only UK residents are subject to capital gains tax on their second homes -- a tax that is usually levied at 28%.

The capital gains tax change, due to take effect in April 2015, will require overseas buyers to surrender some of the profits they make on UK property.

Some foreign buyers will be affected by another tax change. From this month, the government is applying stamp duty at a rate of 15% to any purchase of residential property worth £500,000 or more made through a company.

And pressure is building for measures to prevent foreign investors being offered first refusal on prime London real estate. The city's mayor has urged developers to stop marketing new homes to overseas buyers before they've been made available to Londoners.

-- CNNMoney's Mark Thompson contributed to this article.

First Published: March 27, 2014: 9:42 PM ET

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Russia looks to Asia for trade cushion

Russian President Vladimir Putin is seeking China's support on Crimea.

HONG KONG (CNNMoney)

The Kremlin's calculations rely heavily on China -- already the second largest importer of Russian goods and a voracious energy consumer.

Increased Russian reliance on China would be helped along by a thaw in relations between Moscow and Beijing in recent decades. The countries share a border, often team up on U.N. Security Council votes and frequently trade military equipment.

Should the West pursue new sanctions to isolate Russia -- possibly in response to further incursions into Ukraine -- those ties will be put to the test. Moscow could also widen the search for support to Japan and India.

Related: Ukraine to get $18 billion rescue from IMF

Energy supplies are likely to feature prominently in any shift to the East.

Russia sends more than 7 million barrels of oil a day to the world markets, and its total energy trade earns 70% of its $515 billion in annual export revenue, according to the U.S. Energy information Administration.

It has long pursued a natural gas deal with China, but a final agreement between state-owned behemoths Gazprom and China National Petroleum Corp has been delayed by a disagreement over pricing.

Now, Russia may be willing to accept a lower price in exchange for the security of having another dedicated buyer for its gas. Elsewhere in Asia, Russia could pursue additional business with South Korea and Japan, two traditional U.S. allies that are also big energy importers.

Related: Russian energy should keep flowing

Europe and the U.S. have imposed sanctions on top Russian officials and oligarchs, and one Russian bank, in response to Moscow's annexation of Crimea. They have also warned of tougher measures to come if it destabilizes other parts of Ukraine.

Throwing a wrench into energy markets, however, is something western countries hope to avoid given Europe's reliance on Russian gas.

Related: Russia's U.S. debt not a threat

There are signs, though, that Russia should not presume total Chinese cooperation if it is forced to pursue alternative markets for its exports.

Beijing has been measured in its public position on the crisis in Ukraine, sticking to well-worn statements on the need for dialogue and a diplomatic solution.

The Communist Party is extremely wary of popular uprisings, and top officials were reportedly especially unnerved by the events of the Arab Spring.

And the idea that a dissatisfied region can break away via referendum -- as happened with Crimea -- sets an unwanted example for Tibet and Xinjiang.

This unease was perhaps best reflected in China's decision to abstain, rather than vote with Russia, on a draft U.N. resolution that criticized the Crimea vote.

India is another country with cordial relations with Russia. Putin specifically thanked India -- right after China -- for "understanding" Russian actions in Crimea.

"We are grateful to the people of China, whose leaders have always considered the situation in Ukraine and Crimea taking into account the full historical and political context, and greatly appreciate India's reserve and objectivity," Putin said last week.

First Published: March 27, 2014: 10:18 PM ET

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China bank hit by multi-day cash run

Hundreds of customers have taken their money out of a Chinese bank after rumors suggested it was nearing collapse.

HONG KONG (CNNMoney)

The details of the bank run, which took place in a coastal province north of Shanghai and lasted at least three days, were reported by state media.

Customers were worried their savings would be lost -- a very real concern in China, which has no official insurance system to protect bank deposits.

The panic was so widespread that the bank placed stacks of cash in bank teller windows to reassure customers that it had enough funds to meet demand.

A Reuters journalist reported from the scene that the bank was staying open 24-hours a day, and that the cash needed to satisfy hundreds of waiting depositors was being trucked in by armored car.

Local government officials responded to the bank run in a video statement that sought to reassure customers that their money was safe.

The China Banking Association issued a similar statement that expressed confidence in the bank's financial health, and warned that rumor mongers would be held legally accountable.

The Sheyang county governor also said the People's Bank of China would protect depositors, although the central bank hasn't publicly addressed the situation.

In a pinch, the central bank could tap a credit facility for rural banks that was established in January.

Related story: China's high wire act on failing companies

Analysts said the episode highlights the need for deposit insurance in China, a reform that is on Beijing's to-do list. Doing so should give depositors greater confidence, and help prevent future bank runs.

The government is widely expected to begin work on the issue this year as it seeks to implement financial and economic reforms.

In the meantime, it appears that the immediate risks from this week's run are contained.

"We believe the government will not allow deposit-taking institutions to fail, so this incident will likely be resolved soon without significant repercussions on the financial system," said Zhiwei Zhang, an economist at Japanese brokerage Nomura.

UBS economist Wang Tao has before called deposit insurance a "prerequisite" for a more market-oriented economy that would include flexible interest rates.

A "crisis resolution mechanism will also lay the foundation for allowing more credit defaults and exit of small financial institutions," she said.

Attempts to contact the bank Thursday were unsuccessful, but it appeared the incident may have run its course -- with only one real victim.

Local police said in a social media post that they had "captured" the suspected gossipmonger on Wednesday night.

First Published: March 27, 2014: 2:37 AM ET

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