American small and medium-size companies that rely on China are scrambling to adjust their business plans in response to the escalating trade war.Traderead more
Here are the products that stand to be the most affected by China's new tariffs on $75 billion worth of U.S. goods.Marketsread more
The summit comes amid fears over a global economic slowdown, and U.S. tensions over trade allies, Iran and Russia.Politicsread more
The world's second biggest economy is past a point where it cannot ignore its enormous debt anymore, according to an analyst.China Economyread more
As demand for lab monkeys continues to rise, U.S. scientists are reporting delays in research projects because they can't obtain enough animals, according to the National...Politicsread more
Trump does have some powerful tools that would not require approval from U.S. Congress.Politicsread more
The European Union will respond in kind if the U.S. imposes tariffs on France over digital tax plan, EU chief Donald Tusk told G-7.Technologyread more
Trump said he will raise tariffs on $250 billion in Chinese goods to 30% and hike duties on another $300 billion in products to 15%.Politicsread more
Carl Medlock used to work at Tesla. Now he's one of the few people in the U.S. that can fix the company's original Roadster electric vehicles.Technologyread more
China said on Saturday it strongly opposes Washington's decision to levy additional tariffs on $550 billion worth of Chinese goods and warned the United States of consequences...Politicsread more
Stocks dropped after Donald Trump ordered that U.S. manufacturers find alternatives to their operations in China.US Marketsread more
Westinghouse Electric, a unit of Japanese conglomerate Toshiba, filed for bankruptcy on Wednesday, hit by billions of dollars of cost overruns at four nuclear reactors under construction in the U.S. Southeast.
The bankruptcy casts doubt on the future of the first new U.S. nuclear power plants in three decades, which were scheduled to begin producing power as soon as this week, but are now years behind schedule.
Costs for the projects have soared due to increased safety demands by U.S. regulators, and also due to significantly higher-than-anticipated costs for labor, equipment, and components.
Pittsburgh-based Westinghouse said it hopes to use bankruptcy to isolate and reorganize around its "very profitable" nuclear fuel and power plant servicing businesses from its money-losing construction operation.
Westinghouse said in a court filing it has secured $800 million in financing from Apollo Investment, an affiliate of Apollo Global Management, to fund its core businesses during its reorganization.
For Toshiba, the filing will help keep the crisis-hit parent company afloat as it lines up buyers for its memory chip business, which could fetch $18 billion. Toshiba said Westinghouse-related liabilities totaled $9.8 billion as of December.
Toshiba said it would guarantee up to $200 million of the financing for Westinghouse. Toshiba shares closed up 2.2 percent but have lost half their value since the nuclear problems surfaced late last year.
The Apollo loan needs court approval and is expected to carry Westinghouse for a year, people familiar with the matter said. The funds would support the company's global operations, including its healthier services and maintenance businesses, and pay for construction workers on site in Georgia and South Carolina, the people said.
However, the money cannot be used to repay the liabilities stemming from cost overruns and delays at the projects, the people said.
SCANA told investors on a conference call on Wednesday that 5,000 workers would continue working on its South Carolina site for 30 days while the company weighed options.
"Our preferred option is to finish the plants. The least preferred option is abandonment," said SCANA CEO Kevin Marsh. Southern Co said in a statement it would hold Westinghouse and Toshiba accountable for its contract.
State regulators have approved costs of around $14 billion for each project but Morgan Stanley has estimated the final bill of around $22 billion for the South Carolina project and around $19 billion for the Georgia plant.
Westinghouse's nuclear services business is expected to continue to perform profitably over the course of the bankruptcy and eventually be sold by Toshiba, people familiar with the matter said. They cautioned that the sale process will likely be highly complex and litigious.
The bankruptcy could embroil the U.S. and Japanese governments, given the scale of the collapse and the $8.3 billion in U.S. government loan guarantees that were provided to help finance the reactors.
The U.S. Department of Energy expects the parties to honor their commitments, said spokeswoman Lindsey Geisler.
The Nuclear Regulatory Commission said it was inspecting the sites to ensure the facilities met the requirements of the licenses that were issued to units of Southern Co. and SCANA.
Shares of SCANA were down 0.8 percent at $65.64 and Southern Co. fell 0.4 percent to $49.90 in trading on the New York Stock Exchange.
When regulators in Georgia and South Carolina approved the construction of Westinghouse's AP1000 reactors in 2009, it was meant to be the start of renewed push to develop U.S. nuclear
However, a flood of cheap natural gas from shale, the lack of U.S. legislation to curb carbon emissions and the 2011 Fukushima nuclear accident in Japan dampened enthusiasm for
Toshiba had acquired Westinghouse in 2006 for $5.4 billion.
It expected to build dozens of its new AP1000 reactors — which were hailed as safer, quicker to construct and more compact — creating a pipeline of work for its maintenance division.
Toshiba has said it expects to book a net loss of 1 trillion yen ($9 billion) for the fiscal year that ends Friday, one of the biggest annual losses in Japanese corporate history. Toshiba had earlier forecast a loss of 390 billion yen.
Toshiba will close the first round of bids for its chip business — the world's second-biggest NAND chip producer — on Wednesday.
A source with knowledge of the issue said that about 10 potential bidders had shown interest, including Western Digital which operates a Japanese chip plant with Toshiba, rival Micron Technology, South Korean chipmaker SK Hynix and financial investors.
Toshiba CEO Satoshi Tsunakawa said offers for the unit are likely to allow Toshiba to maintain shareholder equity. Toshiba believes the unit will be worth at least 2 trillion yen ($18 billion), he added.
The government-backed Innovation Network Corp. of
A separate source said that Foxconn, the world's largest contract electronics manufacturer, is expected to place an offer which is likely to be the highest bid. Other sources have said the Japanese government is likely to block a sale to Foxconn due to its deep ties with China.