GM shielded from ignition lawsuits by bankruptcy rule

The decision by Federal Bankruptcy Court Judge Robert Gerber upholds GM's so-called bankruptcy shield. GM acquired the shield as part of its bankruptcy reorganization when a new company was created in 2009, referred to in court as "New GM."

"Judge Gerber properly concluded that claims based on Old GM's conduct are barred," the automaker said in a statement.

The shield had been challenged both by some personal injury attorneys as well as lawyers suing on behalf of owners of the recalled cars to recover damages for the diminished value of the recalled cars.

The decision could prevent lawsuits that would have cost "New GM" billions of dollars.

"This ruling padlocks the courthouse doors," said Robert Hilliard, one of the attorneys suing GM. "Hundreds of victims and their families will go to bed tonight forever deprived of justice. GM, bathing in billions may now turn its back on the dead and injured, worry free."

The decision left the possibility for some suits to proceed if the plaintiffs can prove misdeeds by the company after the 2009 bankruptcy, "so long as those plaintiffs' claims do not in any way rely on any acts or conduct by old GM."

The old and new version of the tiny part that is at the center of the GM recall.

GM (GM) shares were up about 1% in after-hours trading following the decision.

Problems with millions of cars with faulty ignition switches, most of them built before the bankruptcy, have been tied to at least 84 deaths. It is not immediately clear how many of the accidents occurred after the bankruptcy. Accidents that occurred in the years following 2009 were not protected by the shield.

GM has admitted that its employees were wrong not to order a recall of the cars about a decade before the 2014 recall.

The decision will not stop GM from paying an estimated $400 million to victims and their family members. But GM set up a compensation fund voluntarily without waiving the legal protections it acquired as part of the bankruptcy process on pre-2009 accidents.

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Related: GM settles second suit with recall whistle-blower

CNNMoney (New York) April 15, 2015: 7:03 PM ET

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Bubble trouble: China's stock market looks too hot

Chinese equities are officially on fire. The Shanghai Composite has skyrocketed 78% since just before Halloween. It recently crested the 4,000 level for the first time since the financial crisis.

Yet stocks in China have achieved red-hot status just as the country's economy is going through a cooling off period. Growth slowed to the weakest pace since 2009.

In other words, exuberance for Chinese stocks isn't being backed up by fundamentals. Instead, the market is being carried higher by various forms of government stimulus and investor frenzy.

All of this raises the question: Is China in the midst of a bubble? And if it is, what should American investors do?

"Certainly a bubble exists," said Ankur Patel, chief investment officer at R-Squared Macro Management.

Rather than enjoy the ride up or try to profit from its eventual popping, Patel said the prudent move for U.S. retail investors is to stay away from the Chinese market altogether.

"The problem with any bubble is if you try to bet against it, bubbles can become even more irrational. The herd mentality can essentially run investors over," he said.

Related: China stocks are on an incredible mystery run

Equity euphoria hits China: There are growing signs of speculative fervor in China.

In recent years, people in China -- who tend to save significantly more than their Western counterparts -- sunk their excess savings into the real estate market.

Now that the bubble in housing is deflating, they are latching onto the skyrocketing stock market. Investors opened 4.8 million new stock trading accounts in March and then another million more in early April, according to the Financial Times.

"There's no question there's a lot of domestic euphoria about equities within China," said Albert Brenner, director of asset allocation strategy at People's United Wealth Management.

Several Chinese retail investors polled by CNNMoney said they trade stocks frequently -- up to several times a day -- in part to have fun. One Shanghai woman, who didn't give her full name, said she's not worried about trading expenses hurting performance because "fees tend to drop during bullish markets anyway."

Non-Chinese investors are also taking notice. Exchange-traded funds that track China -- the best way for U.S. investors to play China -- have soared. The iShares MSCI China ETF (MCHI) and SPDR S&P China ETF (GXC) are both up over 20% so far this year.

Related: China's stock market finally opens up to foreigners. Now what?

Liquidity-fueled bubble? Hoping to avoid a so-called "hard landing," China's central bank is pumping liquidity into the market by cutting rates. That's good for risky assets like stocks, but liquidity-driven moves are susceptible to bubbles.

Liquidity is also being pumped by the Hong-Kong Shanghai Stock Connect Program, which allows investors to buy Shanghai stocks through Hong Kong -- and vice versa. Not only is fresh foreign capital flowing onto Mainland China for the first time, but excess liquidity inside China is flooding into Hong Kong.

Related: Chinese investors trade way more than Americans

Goldman Sachs isn't worried: Of course, not everyone believes it's time to call China's rapid rise a bubble.

Timothy Moe, co-head of macro research in Asia at Goldman Sachs, told CNBC the market "certainly is getting frothy" amid "very frenetic retail activity."

"Is that a bubble that will crash the system? The answer is not yet," Moe said.

In other words, just because Chinese stocks look very speculative doesn't mean the party has to end today.

One possibility, Patel said, is for the bubble to end "benignly" if China's growth regains momentum, justifying current valuations. He said that looks unlikely and there's a better chance the opposite will occur.

Another possible outcome is the stock market keeps roaring ahead before imploding, like it did the last time.

"To be clear, what's underway in China is an out-and-out bubble, but there's plenty of money to be made riding bubbles up a bit," Bespoke Investment Group wrote in a note to clients. The firm said it "may be worthwhile to consider a small position" in Chinese ETFs like the SPDR S&P China ETF (GXC).

Just remember: Bubbles are notoriously difficult to time, even for sophisticated investors.

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CNNMoney (New York) April 15, 2015: 10:10 PM ET

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Japan now holds more U.S. debt than China

Data from the Treasury Department released Wednesday show that Japan owned $1.2244 trillion worth of U.S. government securities at the end of February, compared to $1.2237 trillion for China.

Both countries unloaded U.S. debt during the month of January, but China sold more, making Japan the top U.S. creditor for the first time since the financial crisis.

The Treasury data should be taken with a grain of salt: Transactions carried out by other nations on behalf of China and Japan aren't included, making the final tally more of an educated guess.

Related: Bubble trouble? China's stock market looks too hot

But the Japan-China switch is backed by larger trends, and changes in the way Beijing manages its foreign reserves. Treasury data show that over the past year, China's U.S. debt holdings dropped by $49.2 billion, while Japan's increased by $13.6 billion.

China had been buying Treasuries as a way to keep its currency, the yuan, pegged to the U.S. dollar. That helped lower the value of the yuan and made China's exports more competitive in foreign markets.

But in recent years, partly due to U.S. pressure and partly as an effort to curb its own inflation, China has allowed the yuan to rise in value.

Closer to home, there's another major buyer of U.S. debt: the Federal Reserve. At last count the central bank owned around $2.5 trillion worth of Treasuries, up from around $800 billion at the end of 2007.

Related: U.S. runs out of investor visas again as Chinese flood program

CNNMoney (Hong Kong) April 15, 2015: 11:32 PM ET

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China's economic growth drops to slowest pace since 2009

Gross domestic product expanded by 7% in the first three months of 2015, compared to the same period last year, according to China's National Bureau of Statistics.

While that matches the expectations of economists surveyed by CNNMoney, it is quite a decline from the final quarter of 2014, when growth came in at 7.3%.

Moderate economic expansion isn't all bad news, said Andrew Colquhoun of Fitch Ratings. "It means the economy is adjusting to a more sustainable path -- we'd expect the economy to slow as it re-balances."

The strength of China's economy is often difficult to judge at the beginning of the year because of the Lunar New Year holiday. But recent data on manufacturing activity and exports have disappointed, and analysts expect slower growth going forward.

The downturn is putting additional pressure on the central government as it works to transition China to a consumption-led economy. Policymakers are also trying to avoid a sudden slowdown in economic growth, which could cause unemployment to surge and consumption to lag.

Experts say a downturn in China's real estate sector is the single biggest risk to the economy, which relies on the industry to boost growth and for new jobs. Other challenges include ballooning government and corporate debt.

Related: Economists are really worried about China's massive property sector

China's foreign exchange reserves have also fallen, a sign that speculative capital is leaving the country as growth concerns intensify.

Colquhoun said the People's Bank of China will need to respond to weakening growth with further monetary easing. The central bank already cut interest rates twice since late last year in an attempt to boost investment and shore up the economy.

GDP growth in China remains the most comprehensive gauge of the country's economic health. China averaged economic expansion of around 10% a year over the past three decades, making it the world's second-largest economy.

Economists forecast 6.8% GDP growth for this year, and even slower expansion at 6.5% in 2016, according to the CNNMoney survey. China recorded GDP growth of 7.4% in 2014, the worst in 24 years.

Despite economic stability concerns, Chinese stock markets have continued to surge to astonishing highs. While stocks swung between gains and losses on Wednesday, the benchmark Shanghai Composite is still up 28% this year. The Shenzhen Composite has spiked over 50% year to date, making it the world's top-performing stock market.

Related: China's factories slump amid growth concerns

CNNMoney (Hong Kong) April 14, 2015: 11:18 PM ET

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How Grumpy Cat makes her millions

Grumpy Cat is part of an elite group of furry animals around the globe who have shot to Internet fame in recent years. These fuzzy creatures sign book and movie deals, do photo shoots, and act as "spokesanimals" for ad campaigns -- netting piles of cash for their owners.

Experts say the phenomenon is made possible by the rise of social media, which is changing how we interact with lovably fuzzy creatures.

Social media "adds a personal connection, so if you're interested in a character like Grumpy Cat, then either people will send you more anecdotes or videos, or you can go and seek it out," said Karen North, a social media expert and professor at the University of Southern California.

It's "a way of getting entertainment in the hands of audience members who become evangelists of the content, and spread it wider than the originator ever dreamed," North said.

Related: China spends $1.5 billion pampering pets

Owners can monetize their pets via multiple sources -- product endorsements, licensing agreements and even original merchandise.

It all starts with building a massive following online. Viral pet owners can also consider registering a trademark, whether it's a name or a distinctive feature, to help protect against any copycats, said Marty Brochstein of the International Licensing Industry Merchandisers' Association.

"Is there some specific recognizable aspect to it that makes it other than just a cat?" Brochstein said. "In terms of bringing in business, it's just like any other celebrity -- you have an agent who is either fielding offers or ferreting out business opportunities."

Grumpy Cat, for example, has an easily identifiable sourpuss face -- the product of an underbite and feline dwarfism, a genetic condition. The look has entranced millions of web followers, leading to Grumpy Cat designer apparel, a New York Times best-selling book, a movie and a coffee brand -- Grumppuccino.

The licensing and merchandising deals have translated to buckets of cash for Grumpy Cat's owner, Tabatha Bundesen.

"Grumpy Cat is making millions!," said North. "It's shocking!" Bundesen didn't respond to requests for comment.

And yes, Grumpy Cat has a manager, as does Hong Kong's own celebrity cat, Brother Cream, a chubby white and tan feline who lives in a local convenience store. Brother Cream has thousands of social media followers, and fans who visit from around the globe want to know about everything from his bowel movements to public appearance schedule, owner Ko Chee-Shing said.

Like Grumpy Cat, Brother Cream has done commercials or promotions for major brands such as L'Occitane, Shu Uemura, Microsoft (MSFT, Tech30) Xbox and Nikon (NINOY). Ads featuring his image are plastered across the city's public buses, airport baggage carts and subway stations. Groupies can buy handbags, stickers, books and folders with his image.

Related: Big dogs suffer as Hong Kong status symbols

Brother Cream has been paid hundreds of thousands of dollars for his work, padding out a stellar five-page resume. So much money has flooded in that Ko started a non-profit to dole funds out for charitable purposes, including animal rescue and food aid programs.

His fame has even helped bring more customers to Ko's shop, one of the few remaining independent convenience stores in a market dominated by international chains 7-Eleven and Circle K.

Brother Cream, who initially did nuzzle a hello to this reporter, later declined to answer any questions in favor of a nap -- in true celebrity fashion.

Related: Doggie dates have come to Tinder!

CNNMoney (Hong Kong) April 14, 2015: 8:54 PM ET

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The surprising backstory of Tinder for pot smokers

That's what co-founder Todd Mitchem hopes to create with High There -- "a social connection app for cannabis consumers."

Users can look for dates or simply other like-minded people. But for those used to dating apps like Tinder or OkCupid, the questions will probably be a bit unfamiliar.

Instead of asking for your hobbies or education, High There asks if you prefer smoking or edibles and if you're high energy or low energy. While these personality traits might seem frivolous, Mitchem said they're important for finding other users that you're compatible with.

Related: 10 alternatives to Tinder

When it launched in February, the free app was only available to users in states where marijuana use was medicinally or recreationally permitted. Now, however, it's been approved by the iOS and Android app stores to become the first global social network dedicated to cannabis enthusiasts. Mitchem said he's about to close the first round of funding for an undisclosed amount.

"We're trying to build a community of people that feel connected to each other with a common bond," he said.

But for Mitchem, High There is more than just a social network -- it's personal. He was inspired by his own life experience.

In 2009, Todd's mother was diagnosed with cancer for the second time. After treatment, her doctors told her she only had six months to live. It wasn't legal where she lived (Mitchem chose not to disclose specifics), one of her nurses recommended she get her hands on some marijuana to help with her lack of appetite and to ease her pain.

She did, and she began to grow small amounts of marijuana in her attic for personal use. When she told her neighbor, it ended their relationship.

"That's not OK," says Mitchem. He hopes High There can be a place for people to share their stories and help eliminate the stigma around the drug.

Six years later, Todd's mother is still alive. And while she isn't on High There yet, he said she plans to join.

Related: Pot startups cash in on wave of legalization

CNNMoney (New York) April 14, 2015: 10:02 PM ET

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Will.i.am is selling sheets made from old Coke bottles

Will.i.am is partnering with Coke and W Hotels on a line of bed sheets partially made from old plastic bottles.

It's not that he's fallen on hard times in the music biz, it's more that he's into recycling. So the Black Eyed Peas frontman has partnered with Coke (KO) and W Hotels on a line of bedding made with at least 30% recycled plastic.

The sheets will soon be on all W hotel beds worldwide. They don't look or feel any different than the hotel's current sheets -- the plastic is used to make polyester and simply replaces the virgin polyester currently used in the blended fabric. Each king-sized sheet will contain about 31 plastic bottles.

For W, the move was about being more eco-friendly as well as saving money. The new sheets are more durable and can be washed up to 200 times before wearing out (compared to about 100 washes now).

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The sheets will also be available for purchase at the W's store, though they aren't cheap -- a set starts at $207.

They'll carry both the W and Ekocycle brand. Ekocycle is a broader partnership between Will.i.am and Coke to use recycled content in more products.

Will.i.am said he got the idea for Ekocycle back in 2008 after attending conferences on corporate social responsibility and hearing about how firms want to cut waste.

"A lot of times the companies say what they want to do, but not how they're going to do it," he said. "Or they do it, but they don't tell anyone."

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So he pitched Coke with an idea to market recycled plastic to other firms that wanted to green their products. Coke bit, and Ekocycle launched in 2012. It now has its name on over 150 products including shoes, luggage, bicycles and chairs. Companies that want to use the Ekocycle brand pay a royalty, which is shared between Coke and Will.i.am.

"Our resources are not forever," Will.i.am said. "Sustainability is going to be something we're all talking about."

If all this sounds like a bunch of people making money while burnishing their green credentials, it is. But it's also important for those with branding experience to create a market for recycled material. This is especially true now that the cost of oil -- which is virgin plastic's main ingredient -- is so low. Cheap virgin plastic puts recycled plastic at a disadvantage.

"Recycling is more than just putting stuff in the right bin," said Darby Hoover, a resource specialist at the Natural Resources Defense Council. "And it's good that Coke is taking responsibility for its bottles."

CNNMoney (New York) April 13, 2015: 6:25 PM ET

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