Business News in Brief, Sept 19

GM and United Auto Workers Reach Deal

The United Auto Workers (UAW) union and automaker General Motors Co. have reached a preliminary four-year agreement, according to reports. The new contract gives UAW workers $5,000 in signing bonuses, higher wages for entry-level hourly workers, and possibly more jobs for the UAW. Union workers must approve the details of the contract before it becomes official. The contract is the first GM has signed with the UAW since its government-assisted bankruptcy in 2009, and could serve as a blueprint as UAW negotiates with Chrysler Group and Ford Motor Co. going forward. The UAW has long argued for a better contract, after giving the automaker concessions during the financial crisis to ensure its eventual survival.

US Stocks Make Weekly Gain

Renewing confidence in the European economy has propelled U.S. stocks, as major indices were higher last Friday for the fifth consecutive day. The Dow Jones Industrial Average climbed 0.7 percent, or 75 points, while the S&P 500 Index gained 7 points, or 0.6 percent. For the week, the Dow is up by 4.7 percent, its first weekly gain in almost a month. Last week, Treasury Secretary Timothy Geithner met with his counterparts to talk about the ongoing European debt crisis, and the European Central Bank last week unveiled a coordinated action plan with other central banks to ease funding to large banks. The Nasdaq Composite Index gained 0.6 percent last Friday, despite a massive drop suffered by smartphone maker Research In Motion Ltd., which fell by almost 20 percent.

Siemens to Exit Nuclear Power Industry

German industrial and engineering conglomerate Siemens AG said over the weekend that it would stop investing in the nuclear industry, following a decision by Germany to shut down its nuclear energy program. Peter Loescher, the company’s chief executive officer, said in the German magazine Der Spiegel that the company would exit the industry. Siemens will stop investments into developing nuclear power, and cancel its joint venture with Russian nuclear firm Rosatom. However, it will continue to supply parts to current nuclear operations. Siemens operates all 17 of Germany’s nuclear power plants. His comments come four months after German Chancellor Angela Merkel said in May that Germany would phase out nuclear power by 2022. The decision was made after the Fukushima Daiichi nuclear incident in Japan in March, following a massive tsunami which hit Japan’s coast. According to the BBC, nuclear power accounted for 23 percent of Germany’s electricity production.