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Wal-Mart's U.S. CEO defends early Thanksgiving Day opening

Written By limadu on Sabtu, 30 November 2013 | 04.32

NEW YORK (CNNMoney)

CNNMoney spoke with Wal-Mart's (WMT, Fortune 500) U.S. CEO Bill Simon.

Is shopping the kind of family tradition Wal-Mart wants to perpetuate?

Simon: Our job is to try to anticipate what the customer wants... Having families out, children in the building... gives it a different feel. And it's one that's in line with who we are at Wal-Mart. It feels a lot better in the evening than it did when it was early in the morning [on Black Friday].

Related: Thanksgiving openings are the new normal

Do you wrestle with the moral implications of [opening on Thanksgiving]?

Simon: We had planned not to move [the opening time] this year, but the market moved... I have a hard time imagining it could be 4:00. Let's hope that it doesn't move.

Are you willing to draw a line?

Simon: "We've seen about as early as it can go. It's hard to imagine that it can move much more."

Simon said he worked throughout most of the night, staying up by sipping coffee and downing a Monster energy drink. He noted that the company provided the 900,000 employees who worked on Thursday with a hot meal and extra pay -- plus a 25% corporate in-store discount for their own holiday shopping. To top of page

First Published: November 29, 2013: 10:41 AM ET


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Bitcoin worth $9M buried in garbage dump

landfill

A hard drive containing about $9 million in bitcoin is trapped under mounds of trash at a landfill site like this one in the U.K.

LONDON (CNNMoney)

The device is now buried under a mountain of garbage at a landfill site in Wales. It will be almost impossible to find.

James Howells got rid of the drive, which holds a digital store of 7,500 bitcoins, between June and August this year.

The IT worker mined the virtual currency four years ago when it was the exclusive domain of tech geeks.

Back then bitcoin was worth very little. On Friday, the cryptocurrency broke through $1,200, making the missing hard drive worth around $9 million.

Related: Bitcoin worth almost as much as gold

Howells had been hanging onto it for several years before deciding to clean up his home.

After discovering the mistake late last week, a "devastated" Howells began a frantic search through computer files and other drives for a backup. There isn't one.

A trip to the garbage dump was the only option.

"As soon as I saw the site, I thought you've got no chance. The area covered is huge," he told CNN.

A spokesperson for Newport City Council said an item thrown away in the summer months would now be buried under 25,000 cubic meters of waste and earth.

The council, which operates the dump, said it has helped retrieve items in some circumstances "but this would have to be done very quickly after it was thrown away."

Howells said he's had all sorts of suggestions emailed to him about how to get the drive back.

But well-meaning individuals shouldn't bother heading to the tip on his behalf - it's closed to the public for safety reasons.

Related: 8 things you can buy with bitcoin

Speculators have helped power bitcoin's dazzling rise this year.

A growing number of businesses now accept bitcoins, including some Subway sandwich shops and Richard Branson's Virgin Galactic space travel venture, though critics claim it's unlikely to become a legitimate currency.

The program behind bitcoin was created anonymously and introduced on the internet in 2010. Unlike traditional money, bitcoins are not managed by a central authority and exist only in cyberspace.

-- CNN's Adam Dunnakey contributed to this report. To top of page

First Published: November 29, 2013: 11:08 AM ET


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Wal-Mart protesters arrested at Black Friday rallies

walmart protests

Demonstrators protesting outside a Walmart in Paramount, Calif. are arrested during a 2012 Black Friday protest. Protesters took to the streets near a number of Walmart locations again this year.

NEW YORK (CNNMoney)

Ten people were arrested on misdemeanor charges Friday at a protest near a Wal-Mart in Ontario, Calif., after they moved into an intersection and failed to disperse, Ontario Police Department Sgt. David McBride said.

McBride called the incident "peaceful," and estimated that between 100 and 150 people had attended the rally. It was unclear how many of those were actual Wal-Mart (WMT, Fortune 500) workers.

Another 10 people were issued citations at a protest near a Wal-Mart in Chicago for blocking a roadway. Protests also occurred in cities including Alexandria, Va.; Quincey, Mass.; Orlando, Fla.; Bellevue, Wash; Lakeside, Colo.; and Hyattsville, Md.

Wal-Mart's U.S. CEO defends early Thanksgiving Day opening

The protesters are calling for Wal-Mart to pay full-time employees at least $25,000 per year, and to increase opportunities for full-time work.

Wal-Mart currently employs 1.2 million hourly associates who earn an average of about $12 an hour and are also eligible for up to $2,500 a year in quarterly bonuses, spokesman David Tovar said. Of that 1.2 million, "over 50%" are full-time employees working an average of 37 hours per week, Tovar said.

Workers are considered full-time at Wal-Mart if they work 34 hours or more per week. The company's part-time workers average about 27 hours a week.

Over 475,000 of the company's associates earned $25,000 or more last year, according to a Wal-Mart presentation from September.

Protest organizers claimed rallies took place at 1500 locations Friday. Tovar said that number was hugely inflated, and that very few demonstrators were actual Wal-Mart employees.

Holiday shopping season kicks off with fights, arrests

Friday's protests were organized by OUR Walmart, a group backed by the United Food and Commercial Workers Union. OUR Walmart and the UFCW do not represent Wal-Mart workers, and say their goal is only "helping Wal-Mart employees as individuals or groups in their dealings with Wal-Mart over labor rights and standards."

OUR Walmart held similar protests last year. Last week, the National Labor Relations Board said it was ready to bring a case against Wal-Mart for allegedly retaliating against workers who took part in those protests.

The NLRB, which protects the rights of workers who organize for better working conditions, alleged that Wal-Mart stores in more than a dozen states "unlawfully threatened, disciplined, and/or terminated employees" who participated in legal strikes and protests.

Speaking to CNN Friday, Wal-Mart U.S. CEO Bill Simon denied the NLRB accusations and defended the company's labor practices, saying its pay is above the median for the retail sector.

"Black Friday...is the big stage and Wal-Mart is a big player on the big stage. Those who want to try to change an industry like retail, it's not unexpected that they would be out on Black Friday at Wal-Mart with something to say about it," Simon said. To top of page

First Published: November 29, 2013: 3:52 PM ET


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Thanksgiving openings appear to succeed

Written By limadu on Jumat, 29 November 2013 | 04.32

NEW YORK (CNNMoney)

For all the talk of shopping boycotts -- on the grounds that family values exceed the desire to save a few bucks -- American consumerism has triumphed. The crowds that typically appear before dawn Friday showed up at what's traditionally dinnertime on Thursday.

Mall managers across the country said shoppers showed up in droves this year, only they all did it earlier. That led to a smoother flow of traffic throughout the night instead of the usual rush at midnight.

The Town East Mall in the suburbs of Dallas opened at 8 p.m., and thousands made their way to Macy's (M, Fortune 500), Sears (SHLD, Fortune 500) and J.C. Penney. (JCP, Fortune 500) Their demeanor was more calm and reserved than in years past, said mall manager Chad Hastings.

Related: Braving Black Friday in the U.S.? Send us your experiences

"This is definitely a game-changer as far as what the customer expects now," Hastings said. "In future years, the customer will expect stores to open at 8 o'clock."

The earlier start also meant that foot traffic dropped in the morning's early hours, an unusual sight. South Florida's Aventura Mall was nearly empty at 5 a.m.

At a Target in Philadelphia, Qiana Roberts skipped a family dinner for a spot in line. Collin Cook ate extra early on Thursday to join the hordes at J.C. Penney in Wayne, N.J.

Shoppers say workers should be home with their loved ones. But they'll head out anyway.

"I don't like that the hours are earlier. I think people should be able to be with their families on Thanksgiving," said Kim Schaefer as she shopped for shoes at J.C. Penney.

Related: Black Friday: Is it worth it?

Ishamar Dorma cut out of Thanksgiving festivities a little early to hit the West Philadelphia Target around 4 p.m., four hours before the doors would open. He wanted to get himself a little belated birthday gift, as he has turned 23 on Wednesday.

He was among the first 50 in line to get a ticket for the doorbuster prize, a 50-inch Element TV, normally $600, but on sale for $229.

"It's a good birthday gift," said Dorma, whose sheepish grin briefly emerged from an orange knit scarf and striped hat.

Here are the kinds of discounts that beckoned them: A 50-inch Element TV going for $229 instead of $600. Half-carat diamond earrings priced at $79. Side deals like Target's $100 gift card with every iPad.

That last one convinced Charlie Wu don his parka and brave the freezing weather outside a Target in New Jersey.

"I'll buy as many iPads as they'll let me buy," he said. Some will go out as gifts. But he said he'll take advantage of the temporarily low prices and sell the rest online.

Related: J.C. Penney shows signs of life on Black Friday

On the bright side, shoppers said they felt a calmer experience this holiday season. The typical rush into stores gave way to cool-headed families meandering through store aisles, perhaps still under the sleep-inducing effect of a full-sized dinner of turkey and cranberry sauce.

"I wouldn't have gone out on Friday -- it's too crowded," said Ann Delrio, who took to a J.C. Penney in New Jersey.

The lines were still long though. And there were reports of fights. On Twitter, the hashtag #WalmartFights became a top search term as people posted videos of violent brawls over low-priced products.

-- CNNMoney's Annalyn Kurtz and Jennifer Liberto contributed to this story To top of page

First Published: November 29, 2013: 6:26 AM ET


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Stocks: Set to end November on a high

NEW YORK (CNNMoney)

U.S. stock futures were edging higher, with the Dow Jones Industrial Average and the S&P 500 each adding 0.2%, and the tech-heavy Nasdaq up 0.4%.

Trading is likely to be quiet Friday, with U.S. indexes closing at 1:00 p.m. ET after being shuttered Thursday for the Thanksgiving holiday.

Retailers could be in focus as Black Friday gets into full swing.

The annual shopping bonanza kicked off earlier than usual, with some of the biggest stores such as Kmart (SHLD, Fortune 500), Wal-Mart (WMT, Fortune 500), Best Buy (BBY, Fortune 500), Macy's (M, Fortune 500) and Target (TGT, Fortune 500) opening their doors on Thursday evening. Early deals were disappearing fast.

The upbeat start tracks a strong finish for U.S. stocks Wednesday. Solid corporate earnings and continuing bond purchases by the Federal Reserve have helped spur strong buying this month, pushing the Dow and S&P to record highs.

Related: Fear & Greed Index

It was a fairly muted day across global markets. Major European stocks were struggling for direction in morning trade, with London's FTSE inching up 0.1%.

Asian markets were mixed, with China's Shanghai Composite edging up, while Japan's Nikkei retreated from a six-year high to close down 0.4%. To top of page

First Published: November 29, 2013: 5:13 AM ET


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Toys "R" Us deals gone in a flash

NEW YORK (CNNMoney)

Hundreds of shoppers wandered through the sprawling Toys "R" Us store in Times Square at 10 p.m. on Thanksgiving -- a time when the store used to be closed for the holiday.

Toys "R" Us opened its doors at 5 p.m. on Thursday for Black Friday shoppers this year ... even though it wasn't yet Friday. The early opening thwarted the holiday shopping plans of Agata Nowak, an IT worker from Millbrook, N.Y., who was in New York City on a business trip.

She showed up at the flagship store at 8 p.m. -- that's when it opened for Black Friday last year -- in pursuit of a discount Furby for her six-year-old daughter. But alas, she was hours late this year, and the furry robot could no longer be bought for $29.99.

"I missed it," she said. "The price is now doubled."

Nowak went shopping anyway and accumulated a bag full of Thomas & Friends train toys. But the discount magic of Black Friday was lost to her.

"I would say prices are probably the same as any other day," she said.

Related: Disgusted shopper threaten to boycott Black Thursday

Thomas Hetherington, who lives near the store in midtown Manhattan, made a similar observation while shopping in the video game section with his wife and infant child.

"This year, I feel like there's more hype and not as many deals," said Hetherington, who makes a living selling used maternity jeans on eBay (EBAY, Fortune 500).

He said the Xbox One was going for $499, the same price that he'd found elsewhere. The best deal he'd managed to find was buying one video game at full price, and getting the second one at 40% off.

"That's pretty decent," he said, "but as a Black Friday deal, it's not blowing my mind."

In an interview with CNNMoney prior to Black Friday, Richard Barry, chief merchandising officer for Toys "R" Us, listed some of the so-called "door busters" meant to lure shoppers: 55% off the Cra-Z-Loom Bracelet Maker, 50% off Disney Infinity and Skylanders Swap Force video games, 50% off Despicable Me, $100 off Power Wheels 12 Volt Corvette, $90 off the Kindle Fire with a $20 gift card, and the aforementioned Furby for 45% off.

Poll: Do you think Black Friday is worth it?

"We're planning significant intensity" for this year's holiday shopping season, said Barry. "If you're a procrastinator out there and you're thinking you've got a long time before the holidays, you'd better shape up."

So with that in mind, Blake Lipper, a student at the Art Academy of Cincinnati, was at Toys "R" Us with his mother and two sisters on Black Thanksgiving, looking for deals. But he said the discounts were more scattered compared to previous years. To top of page

First Published: November 29, 2013: 3:35 AM ET


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Sriracha factory ordered to put a lid on smell after locals pepper city with complaints

Written By limadu on Kamis, 28 November 2013 | 04.32

NEW YORK (CNNMoney)

A judge in Los Angeles County has ordered Sriracha maker Huy Fong Foods to suspend operations at a plant in the city of Irwindale that local residents claim has caused an overpowering odor.

Irwindale claimed in a lawsuit that the stench was causing watery eyes, sore throats and headaches, prompting complaints from dozens of residents.

"You couldn't stay outside in some places," Irwindale city manager John Davidson said. "We've had softball teams that have had to cancel their games and practices because their eyes were watering."

The judge's ruling orders Huy Fong to "immediately make changes in its site operations reducing odors and the potential for odors." The city has been pushing Huy Fong to install a new filtration system to address the issue.

"We want to find a balance between letting this business be a business and protecting our residents," Davidson said. "We hope this will allow us to sit down with Huy Fong and come up with a solution that meets the needs of the community."

Huy Fong declined to comment.

For most of its lifespan, Huy Fong has produced the Thai chili sauce without incident in Rosemead, Calif., but it shifted some production to Irwindale earlier this year.

While Huy Fong isn't the originator of Sriracha, the company's distinctive green-topped bottles have become a staple on grocery shelves, kitchen lines and restaurant tables since it began U.S. production in 1983.

The company produced 20 million bottles of Sriracha in 2012, or $60 million worth, all without the benefit of advertising. Consumer devotion to the brand has inspired cookbooks, embroidery, jewelry and a limited-edition flavor of Lay's potato chips. To top of page

First Published: November 27, 2013: 4:31 PM ET


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Disgusted shoppers threaten to boycott Black Friday Thursday

pledge not shop

This badge is circulating on Facebook and was shared more than 959,000 times as of mid-day Wednesday.

NEW YORK (CNNMoney)

Among their biggest targets: Kmart plans to kick Thanksgiving day off, opening stores at 6 a.m. and remaining open for 41 hours straight.

Toys "R" Us starts its doorbusters at 5 p.m. At Wal-Mart stores (many of which are open all day), the deals start at 6 p.m.

Best Buy opens at 6 p.m., and then Macy's, Kohl's, J.C. Penney, Target and Sears all open at 8 p.m.

An "I pledge to not shop on Thanksgiving" badge is circulating on Facebook and has been shared more than 959,000 times as of mid-day Wednesday.

Related: Are you working during the holidays? Share your story

"5 pm open on Thanksgiving? Really?" wrote Jaime Etheridge Krauss on the Toys "R" Us Facebook page. "A store who is devoted to children and families opens when Americans sit down at the dinner table? What about your employees?!?"

"Hey Kmart! Because of you being Open on Thanksgiving and totally disrespecting your employees, Our Family will never spend a $ in your store!" writes Frank Chip Munroe.

"Kohl's has always been my absolute favorite place to shop. However, as much as it breaks my heart to say this I will no longer be shopping at Kohl's from this point on or any of the other retailers that are opening ON THANKSGIVING. This is a day for family and giving thanks," wrote Kelli Williams Lord.

"Macy's I am disappointed in you for opening your stores on Thanksgiving. Let your employees have a day with their families! It is not the end of the world to wait until Friday to start the chaos!" wrote Katie Buchanan Reynolds.

"I always wanted to believe that Target was somehow better than Walmart in product, and in policies. I realize that Target does not share my values and will no longer get my business. Give your employees a paid day off!" wrote Sean Pierce.

"Even Ebenezer Scrooge let Bob Cratchit go home a few minutes early on Christmas Eve," wrote Dan Hall on J.C. Penney's page. "When you're eating your Thanksgiving turkey this year, remember that your employees are taking time away from their families to help satisfy your greed."

Poll: Do you think Black Friday is worth it?

Of course, the real test of shopper anger will come tomorrow night: Will the the outraged shoppers be outnumbered by people who turn out for the deals?

The holiday shopping season was cut six days shorter this year because Thanksgiving falls later on the calendar, and retailers are fearing sales could be flat. To top of page

First Published: November 27, 2013: 2:18 PM ET


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Black Friday: Is it worth it?

NEW YORK (CNNMoney)

Some of the nation's largest retailers plan to open their doors on Thanksgiving Day, kicking off with Kmart (SHLD, Fortune 500) at 6 a.m.,Toys R Us at 5 p.m. Wal-Mart (WMT, Fortune 500) and Best Buy (BBY, Fortune 500) at 6 p.m. and Macy's (M, Fortune 500), Target (TGT, Fortune 500) and others will open throughout the evening.

The big enticement will be so-called "doorbusters," limited-time only deals offered to the first shoppers in the store. Hot-ticket doorbusters are typically electronic items like TVs and laptops at deep discounts of 50% or more.

Poll: Will you shop on Black Friday or not?

Yet most stores keep such limited supplies of these deals, that few shoppers walk away with them, said Marshal Cohen, chief retail analyst at the NPD Group. "If you're looking for that ultimate score, the half-price big screen TV, if you're not the 24th person in the line, 'good luck,'" he said.

Some die-hard shoppers started camping out in front of an Ohio Best Buy as early as last week to nab its popular doorbuster deals on big-screen TVs, laptops,video games and other electronics, such as a $500 55-inch LG flat-screen TV.

One exception: Wal-Mart is guaranteeing prices for some of its best deals, as long as customers are in line during specific times. If a store runs out of the product, shoppers get a voucher guaranteeing the product at the sale price.

But shoppers may not need to venture out to nab most Black Friday deals in the first place. With competition fierce, many retailers' are offering deals online that rival the ones being offered in stores, said Walter Loeb, a retail analyst and president of Loeb Associates.

Target, for example, will start offering almost all of its in-store deals in the early morning hours of Thanksgiving on Target.com before stores even open. Meanwhile, Consumer Reports has noted that Amazon (AMZN, Fortune 500) is offering Black Friday prices on big-screen TVs that are similar to deals available at Wal-Mart and Best Buy stores.

Related: Black Friday 2013: What to expect

"Prices during the holidays, even for some of the doorbusters, aren't necessarily the best prices of the season," said Patricia Huddleston, a professor of retailing at Michigan State University.

A recent survey by personal finance site, NerdWallet.com, found that 23 out of 25 stores were offering at least one product at the exact same price as last year, while some stores had multiple deal repeats or offered better prices on certain products earlier in the year.

And certain products will likely see even deeper discounts as Christmas approaches.

For example, better prices on winter clothing and generic toys are often found in the final week or two before Christmas as stores attempt to clear their shelves, said Trae Bodge, a spokesperson for RetailMeNot.com, a web site that tracks consumer deals.

So unless you have your eye on a hot product that you're worried will sell out, it's often best to wait. "Black Friday is about specific items," Bodge said. "Do the remainder of your shopping afterwards."

Related: 5 Black Friday tricks to avoid

Jessica Kessler had her first Black Friday experience several years ago, waking up at 3 a.m. on Friday to stand outside in the cold with hundreds of people waiting for Kohl's to open. Since then, she has ventured out with her husband's family in the early morning hours of Black Friday to hunt for deals. But she said there is no discount deep enough to draw her from her home on Thanksgiving.

"I was able to knock out a good bit of my shopping in the years that we went and got some deals that I was happy with," she said. "But at this point, there is no amount of savings that they could offer that would make it worth it to me." To top of page

First Published: November 27, 2013: 12:05 PM ET


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No tech bubble here

Written By limadu on Rabu, 27 November 2013 | 04.32

tech bubble

Market analysts say this Nasdaq run-up is nothing like the tech bubble of 13 years ago.

NEW YORK (CNNMoney)

It makes sense that benchmarks like the Nasdaq at 4,000 could reignite bubble fears. It comes after the recent string of successful initial public offerings from unprofitable companies like Twitter (TWTR), and reports of startup Snapchat turning down a $4 billion buyout -- despite bringing in no revenue.

But analysts say the rush to call a tech bubble, while understandable, isn't grounded in reality.

"Anytime you have a substantial run in an asset -- especially one like the Nasdaq ... you can't help but ask the [bubble] questions," said Drew Nordlicht, managing director at asset management firm HighTower Advisors. "But there are big divergences between now and the tech bubble of 2000."

2000 vs. 2013: The biggest difference between now and then: The hype in 2013 is fairly muted compared with the dot-com heyday.

Sure, Facebook's (FB, Fortune 500) IPO may have been overhyped, and select startups will continue to raise money at seemingly astronomical valuations. But analysts insist the exuberance level doesn't even come close to the old days.

"In 2000, people said the [dot-com boom] was on par with the Industrial Revolution -- we were going to be living in one of those sci-fi movies," Nordlicht said. "We don't have that level of a mass fever pitch today."

Todd Salamone, senior research VP at Schaefer's Investment Research, agreed.

"There was a 'sky's the limit' mentality in 2000, in terms of revolutionary technology leading to productivity enhancements," Salamone said. "There was no prediction that was too high. Today there is a lot more hand-wringing, more caution."

By the numbers: It's not just about irrational excitement: Tech company valuations this time around simply don't rival those of 2000.

Back in 2000, a person would hardly blink an eye at a company like Cisco (CSCO, Fortune 500) trading at 66 times earnings estimates for the coming year, said Nordlicht, the HighTower managing director.

These days, Cisco's price-to-earnings ratio is hovering below 12 -- near that of mighty Apple (AAPL, Fortune 500). Even Google (GOOG, Fortune 500), which has generally reported strong earnings this year and is poised to overtake Exxon Mobil (XOM, Fortune 500) in market capitalization, is trading at 24 times earnings expectations for next year.

While the Nasdaq does have outliers like Netflix (NFLX) trading at more than 200 times earnings, such high ratios aren't the norm -- and the broader index are much more grounded in reality than 13 years ago.

"These ratios aren't levels that have defined peaks in the past," said Salaome, the Schaefer's senior research VP. "Far from it."

Price-to-earnings ratios soared so high in 2000 because "people were buying companies based on future prospects -- where you expected them to be a in a decade," Nordlicht said. "You don't see that today. Even if people aren't demanding profitability right now, they want to see a road that leads to profit."

Related story: 8 things to know about the 2013 bull market

A slower rise to 4,000: Looking at the Nasdaq's overall gains, Salamone pointed out the 1999-2000 run-up was "parabolic": The index hit 3,000 in November 1999 and topped 4,000 the following month, before reaching a high above 5,000 in March 2000.

"Today's move is not what I would call parabolic," Salamone said. This time around, the Nasdaq took nearly a year to jump from 3,000 to 4,000.

What's more, the Nasdaq has risen along an overall 2013 bull market, on stronger macroeconomic conditions: the Federal Reserve's bond-buying program, the overall improving economy and low earnings expectations. The Nasdaq's 32% gain so far in 2013 is only six percentage points above that of the S&P (SPX) 500 index, and ten points above the Dow's (INDU) jump.

Startups will continue to raise gobs of cash, and select tech sectors like social-media stocks may get rather frothy. But the established techs in the Nasdaq -- and the index's gain -- aren't where to look if you're trying to prove a bubble.

In fact, Salamone thinks the memory of 2000 is still too fresh to let the excitement soar into bubbly exuberance.

"In 2000, everybody looked back and was shocked by how badly they were burned," he said. "Now everyone's afraid of that happening again -- and it's hard to have a bubble when everybody fears a bubble." To top of page

First Published: November 27, 2013: 3:48 AM ET


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Stocks: Cheery mood on Thanksgiving eve

sp 600

Click on chart for more premarket data.

NEW YORK (CNNMoney)

U.S. stock futures were continuing to edge higher Wednesday morning.

The main indexes in the U.S. have risen by 23% to 33% so far this year thanks to an economic recovery spurred on by the U.S. Federal Reserve.

Hewlett-Packard (HPQ, Fortune 500) shares surged in premarket trading Wednesday after the firm reported quarterly earnings and sales that beat expectations after the close Tuesday.

Airline investors were staying alert Wednesday morning as they wait on a judge to rule on various issues surrounding the merger between US Airways (LCC, Fortune 500) and American Airlines (AAMRQ, Fortune 500). The ruling is expected around 10 a.m. ET.

Related: Fear & Greed Index

On the economic front, the U.S. government will release its weekly report on initial jobless claims at 8:30 a.m. ET. The report comes a day earlier than usual because of Thursday's Thanksgiving holiday.

Also at 8:30, the Census Bureau will release data on durable goods orders. At 9:55, the University of Michigan and Thomson Reuters will release their consumer sentiment index.

Related: No tech bubble here

U.S. stocks finished slightly higher Tuesday, continuing to set new records. The Nasdaq index, which is dominated by tech stocks, closed above 4,000 for the first time in 13 years.

European markets were pushing higher in morning trading, in part due to agreement on a new coalition government in Germany led by Chancellor Angela Merkel.

Related: Europe's golden visas lure rich Chinese

Asian markets ended with mixed results. Chinese indexes posted modest gains while Japan's benchmark Nikkei lost 0.4%.

Tensions in the region are rising after China announced the creation of a controversial new air defense zone. Both the United States and its close ally, Japan, refuse to recognize the zone. To top of page

First Published: November 27, 2013: 5:29 AM ET


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5 Black Friday tricks to avoid

NEW YORK (CNNMoney)

"So many people get caught up in the frenzy of Black Friday weekend. All retailers prey on that, " said Marshal Cohen, chief retail analyst at the NPD Group.

So if you decide to brave the stores this Black Friday (or in some cases, Thanksgiving Day), watch out for these common retail tricks.

1. Inferior products: Just because that big screen television looks like the one you've had your eye on for months, it doesn't mean it's the same model.

Many retailers sell cheaper versions of TVs, laptops, tablets and other items made specifically for the holiday season. The items look like the higher-priced model, but typically have fewer features.

Related: Buyer bewarel: Retail cards have a costly trap

For example, a tablet may come with a smaller storage capacity, while a TV or camera will have a lower resolution, Cohen said. "It's a good deal, but it's a money saver for the retailer and the manufacturer," he said.

Consumer Reports warns that these products may also carry shorter warranties.

In order to see whether the product is the one you want, come prepared with the product specifications and model number and make sure to ask about warranty terms.

Related: Wal-Mart's 2013 Black Friday deals

2. Read the fine print: Some Black Friday sales ads include fine print that says the full discount requires a mail-in rebate. So when you get to the register, you'll have to pay a lot more upfront.

For example, Staples is advertising a Toshiba laptop for $300, but the actual register price for the laptop is $350, which can be discounted with an "easy" $50 rebate, personal finance site NerdWallet.com found.

It's also a common department store practice to advertise storewide sales that then exclude dozens of items and categories. So that "one day blowout" that offers 25% off storewide is really only offering the discount on a select assortment of items.

3. Limited Supplies: It's not called a "doorbuster" deal for nothing. Many stores carry very limited supplies of their best deals so you'll likely have to be one of the first people in the store to snag them, Cohen said.

Wal-Mart is bucking this trend by guaranteeing prices for some of its best deals, as long as customers are in in line during a specific time. If a store runs out of a coveted product, shoppers get a voucher guaranteeing it later at the sale price.

Related: Save money on holiday expenses

4. Misleading "original" prices: Some retailers may try to make you think you're getting a deeper discount than you actually are.

Oftentimes, the original price they show in ads or next to the product in stores is higher than the price the item will usually sell for, said Patricia Huddleston, a professor of retailing at Michigan State University.

5. Bait and switch: Miss out on the doorbuster deal? Retailers are hoping that you'll buy a similar nearby product, which are usually more expensive.

Before taking the bait, try using a price comparison app, like Shop Savvy or RedLaser, or do research online to compare prices at other stores.

"If consumers aren't really sure about something, they may want to take a breath and let the smoke clear," Huddleston said. "People tend to follow crowds, but just because there is a crowd around something doesn't necessarily make that a good deal." To top of page

First Published: November 27, 2013: 7:18 AM ET


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Qualcomm faces antitrust probe in China

Written By limadu on Selasa, 26 November 2013 | 04.32

HONG KONG (CNNMoney)

Beijing's National Development and Reform Commission has launched an antitrust investigation into Qualcomm, the company said in a brief statement.

Qualcomm (QCOM, Fortune 500) said the Chinese government agency had not revealed the substance of the investigation. The company wasn't aware of any charge that it had broken anti-monopoly laws, it added.

The Chinese government is waging a campaign against market abuse and corruption, which has led to greater scrutiny of corporate practices that affect the prices consumers pay. Qualcomm is the latest foreign company to be netted in the crackdown.

Related story: China offers big risk, bigger reward

Last month, state media fingered Starbucks for charging too much for coffee. In August, the government levied a $108 million fine against six dairy companies including Danone (DANOY) and Mead Johnson (MJN) for unfairly fixing the price infant formula products. And earlier this year, several foreign drugmakers, including GlaxoSmithKline, (GLAXF)were placed under investigation over bribery allegations.

Qualcomm, which makes chips for smartphones and tablets, is keen to expand in China, especially as the country prepares to adopt the next generation of high speed technology for mobile networks, known as long-term evolution.

"Looking forward, we expect continued strong growth of 3G and 3G/4G multimode devices around the world, particularly in China with the anticipated launch of LTE," Qualcomm CEO Paul Jacobs said earlier this month. To top of page

First Published: November 26, 2013: 5:34 AM ET


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Washington stalemate risks $7 milk

WASHINGTON (CNNMoney)

A key sticking point holding up the bill is funding for food stamps. House Republicans want to make changes that would drop 3.8 million people from food stamps next year, while Senate Democrats aren't keen on making these cuts.

But the clock is ticking on milk prices, too. That's because if Congress doesn't pass a farm bill by January, subsidies for dairy and other commodities will expire. And that will trigger a funding formula from the 1940s that could lead prices of several commodities like corn, soybeans and wheat to spike.

As early as January, the price of milk could double from the current national average of $3.47 a gallon.

The parties remain far apart on food stamps, which currently help 47 million people. Enrollment in the program has soared since the recession, with 15% of the population getting benefits, according to September federal data. The average monthly benefit is $133.19 per person.

Related: Our family will lose $44 in food stamps

The House bill would cut $40 billion in funding over a decade, forcing about 14 million people out of the program by 2023, according to the nonpartisan Congressional Budget Office. The proposal would also make it tougher for families to qualify for food stamps.

House Republicans say their reforms would eliminate those who shouldn't be getting food stamps by closing loopholes that let "people whose monetary resources are above eligibility standards into the program," according to a memo from the Office of House Majority Leader Eric Cantor.

A Senate version of the bill would save $4 billion from food stamps, with provisions aimed at ending fraud and abuse.

Related: Catfish inspectors among $25 billion cuts in Obama's budget

While the food stamps issue is holding up the overall farm bill, lawmakers are also divided over longstanding subsidies to farmers.

Both chambers want to end direct payments to farmers in favor of crop insurance programs to keep prices stable in disasters. But they have yet to agree on a way to end the payments.

Agricultural lobbyists struck a hopeful note on lawmakers' ability to work out a farm bill before Jan. 1.

"Congress is going to get the farm bill resolved," said Dale Moore, chief lobbyist for the American Farm Bureau Federation. "When they get back after Thanksgiving, hopefully, they'll be ready to say: 'Here's what we think we got on the middle ground.'"

Secretary of Agriculture Tom Vilsack said he thinks Congress will get a deal before Jan. 1 and avoid triggering sky-high prices of milk and other commodities.

"The key here is to focus on getting the job done and understanding that there is a consequence if the job doesn't get done," he said in a call with media. "No one wants to do that." To top of page

First Published: November 26, 2013: 7:02 AM ET


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Bitcoin to host its own Black Friday

NEW YORK (CNNMoney)

Hundreds of merchants will be joining "Bitcoin Friday" on Nov. 29, selling everything from Christmas trees to clothes, to web domains.

Bitcoin Friday deals include unlocked phones from GSM Nation and discounted plane tickets from Cheapair.com. OKCupid, which has been accepting bitcoins since April, will be participating as well.w

Media outlets are jumping into the Bitcoin deals bandwagon too: GOOD Magazine is giving away $5 discounts for subscriptions and the Free Press is slashing shipping costs. Reddit is also offering a deal on "Reddit Gold."

Gyft is also selling gift cards to Amazon (AMZN, Fortune 500), Target (TGT, Fortune 500) and Marriott (MAR, Fortune 500) hotels. And people can also make charity donations with bitcoins.

"Good companies that really get technology and the potential of Bitcoin are joining," said Holmes Wilson of Fight for the Future, an organization backing Bitcoin Friday. Wilson noted that the participating companies so far are offering "high quality special gifts."

Related: Virgin's space passengers can pay with Bitcoin

Another bitcoin perk: transaction fees are considerably less than with credit cards -- typically a fraction of a penny. That means the deals for Bitcoin Friday, in comparison to Black Friday or Cyber Monday, could be 3% to 5% cheaper than conventional deals, noted Jon Holmquist, co-founder of Bitcoin Friday.

This Friday will mark the second Bitcoin Friday, though last year's event took place a few weeks before Thanksgiving. Bitcoin gained enough notoriety over the past year that Holmquist said the digital shopping event was ready to make the jump to the big stage.

"I think we're big enough to take on Black Friday," he said.

About 150 businesses have agreed to participate in Bitcoin Friday this year, up from 75 businesses that participated in last year's event. Holmquist ultimately expects 500 merchants to participate this year.

He also anticipates a much larger consumer turnout this year. The website's email sign-up form has reached over 2,500 emails so far. Last year, fewer than 500 people purchased goods with bitcoins.

In addition to Fight for the Future, Bitcoin Friday is being backed by the Bitcoin Investment Trust. BIT founder Barry Silbert says his organization is supporting the shopping event "to spread the word and promote Bitcoin adoption."

"We wanted to show Bitcoin is going mainstream," said Fight for the Future's Wilson. "Black Friday is the biggest shopping day of the year and it's a great way to start." To top of page

First Published: November 26, 2013: 7:05 AM ET


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Startups find free money in South America

Written By limadu on Senin, 25 November 2013 | 04.32

start up chile

Start-Up Chile offers $40,000 of equity-free funding to entrepreneurs who move to Chile for six months to work on their projects.

NEW YORK (CNNMoney)

What changed? Bernardo took advantage of Start-Up Chile, one of several South American initiatives luring entrepreneurs from abroad. In 2010, he moved to Chile where the government gave him $40,000 to help grow his business.

He's not alone. Since 2010, the Chilean government has offered $40,000 of equity-free funding to startups accepted into its program Start-Up Chile. The governments in Brazil and Colombia back similar programs and Peru soon will too.

In the last three years, Start-Up Chile has accepted more than 750 companies, 25% of them from the United States. In return, business owners must move to Chile for six months and mentor local entrepreneurs.

The seed money was the main reason Bernardo relocated, but he found an added bonus. The market in Santiago is even better than San Francisco for his service, which advises restaurant owners on developing wine lists and provides a mobile sommelier-like app for their customers. There's a lot less competition in South America, he said. It's easier for his sales team to get the ear of restaurant owners when they're not bombarded by tons of Silicon Valley entrepreneurs who think their product can revolutionize the industry.

Bernardo has since branched out to São Paulo, Brazil, a larger market with even more restaurant owners interested in his pitch.

Related: How to successfully launch a second startup

Although funding might be the primary draw, South American incubators are instrumental in helping to obtain proper visas and open bank accounts.

"Everything down here takes a long time," said Sean Kilachand, who will receive about $88,000 over the course of a year from Start-Up Brasil to launch his company. The money must be used to hire local employees for EduSynch, Kilachand's educational assessment service.

Kilachand, a former New Yorker, knew few people and didn't speak any Portuguese when he moved to Brazil in January. Without help from the government-backed program, Kilachand says he might still be waiting for the correct visa.

When John Njoku signed up for Start-Up Chile, the program not only helped him and his team at Kwelia obtain visas, but they had Chilean ID cards and personal bank accounts set up within two weeks of arriving. After spending six months in Chile working on their software, which provides data about apartment rental prices for property managers, the team decided it was best to return to the States.

Only about 15% of companies stay longer than the six months it takes to complete Start-Up Chile, but that's "totally fine," said Horacio Melo, the program's executive director. In fact, he helps companies relocate if business will be better for them elsewhere, so that they grow a global entrepreneurial network with ties to Chile.

That network is valuable to entrepreneurs in Chile, and local startup owners are already benefiting from having foreigners -- mostly tech entrepreneurs -- there for six months. Instead of asking for equity, the program asks for what Melo calls a "social return." Program participants must mentor Chilean entrepreneurs and speak to students at local universities.

Related: Startups emerge behind bars

Melo says the program is working, pointing to the growing number of Chilean startups that apply for the program. In the first few rounds, there were no Chilean entrepreneurs accepted. In its eighth round, there were 14.

For many entrepreneurs in South America, the growing network of startups is more valuable even than the seed money.

Startup Buenos Aires -- launched this year by U.S. expat Lisa Besserman -- doesn't provide funding, but does offer weekly classes, a coworking space and hopes to ultimately bring college students from around the world to intern at Argentinian startups. It already boasts close to 700 members.

"The tremendous growth further exemplifies how much of a need there was for this," said Besserman. "They were waiting for it." To top of page

First Published: November 25, 2013: 6:07 AM ET


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Not wanted: 100,000 Medicaid enrollees

medicaid take up rates

More people currently eligible for Medicaid are signing up, thanks to Obamacare outreach.

NEW YORK (CNNMoney)

More than 100,000 people were approved for Medicaid last month in the 25 states that have opted not to expand the government program, according to a CNNMoney analysis. These folks currently qualified for Medicaid, but had not enrolled. Likely drawn in by all the campaigns to enroll the uninsured, the so-called woodwork effect, they applied through the federal Obamacare exchange.

"They are picking up people who should have been on Medicaid all along, but there was never this outreach effort," said Sara Rosenbaum, law professor at George Washington University's School of Public Health.

Expanding Medicaid has split the nation since the Supreme Court ruled in 2012 that states could decide whether to widen coverage to all residents up to 138% of the poverty level, or $15,900 for individuals and $32,500 for a family of four, as Obamacare called for. The federal government will pick up the total cost of the expansion for the first three years, after which the funding will phase down to 90%.

Many states, mainly led by Republican governors and legislators, have said they cannot afford to extend the public health program, which has 54.1 million adults and 5.5 million children enrolled nationwide. Medicaid ate up a quarter of total state spending in fiscal 2013, outstripping every other category, according to the National Association of State Budget Officers.

Share your story: Are you signing up for Obamacare?

Currently, states set their own eligibility criteria. Some are generous. New York, for instance, allows parents with incomes up to 150% of poverty and childless adults up to the poverty line to enroll. Others are much more restrictive, such as Texas, which only extends the benefits to working parents with incomes up to 25% of the poverty line and jobless parents up to 12%.

But many states also don't do a good job reaching out to people who meet the current standards. Only an estimated 63% of eligible adults are enrolled, as are 87% of children.

Now, however, there is an unprecedented national effort to sign people up for private insurance on the exchanges or for Medicaid. The federal government is pouring millions of dollars into non-profit groups and community health centers to encourage enrollment. Some organizations are checking in with people who are eligible for food stamps or unemployment insurance to see whether they qualify for Medicaid.

As a result, Medicaid rolls are mushrooming everywhere, with nearly 400,000 people signing up in October nationwide. The numbers are also notable in non-expansion states, including 13,000 in Florida and 11,700 in Texas, for instance. The applications will be sent from the federal exchange to the states, which will complete the enrollment.

Some state officials are not pleased.

"...forcing people to take government welfare is not the answer to increasing access to quality health care," said Josh Havens, spokesman for Texas Governor Rick Perry, a staunch opponent to Medicaid expansion. "Medicaid remains an unsustainable, broken system, and forcing more people into it will just push state budgets closer to the breaking point."

States will have to come up with the funds to pay for these additional enrollees, since the federal government only covers a share of the cost of the currently eligible.

"It's not free. It's 30 to 50 cents on the dollar," said Jeff Goldsmith, associate professor of public health at University of Virginia. "This was the core of states' anxiety about this bill." To top of page

First Published: November 25, 2013: 6:58 AM ET


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Highest property taxes in America

NEW YORK (CNNMoney)

They're home to the three counties that charge the highest average property taxes in the country.

By contrast, a number of counties in Alabama and Louisiana have some of the lowest.

Those are among the findings of a new residential property tax study from the Tax Policy Center, which analyzed data from the American Community Survey.

Across the United States as a whole, between 2007 and 2011, 60% of counties reported average property tax burdens of between $500 and $1,500 a year.

That might cover one month's tax burden for many homeowners in one of the three most expensive counties: Westchester County, N.Y. ($9,647 a year); Nassau County, N.Y., ($9,080) and Bergen County, N.J. ($8,893).

Another five counties in New Jersey had average annual burdens topping $8,000.

By contrast, of the 24 counties nationwide with annual property taxes below $250 a year, nearly all were in Alabama and Louisiana, the study found.

In some states, property taxes are modest in dollar terms, but rank high when the tax burden is measured as a share of home price.

Related: American dream homes: What you'll pay in 10 cities

Parts of Michigan, Nebraska, North Dakota and Ohio fall into this category. Their property taxes on average well exceed 1% of home prices, whereas in most counties in the nation, the average property taxes fall below the 1% mark.

Property taxes are some of the most opaque for taxpayers to figure out.

For one thing, there's no single formula that every county and state uses to calculate them.

In addition, the "assessed" value of your home on which your property taxes are based can bear little resemblance to your home's market value.

And there's no telling from one year's assessment to another how high your bill will be. "[M]any localities set a revenue target to meet expenditure needs and then vary the tax rate to meet this target, conditional on the tax base," the study said.

No wonder, then, when asked by Gallup what they considered to be the least fair tax, the percent of Americans who chose the local property tax has nearly doubled, from 24% in 1988 to 42% in 2005.

Of course, counties with higher property taxes tend to spend more on things like education and public services. They may also have higher priced homes. Or they may be higher simply because the local government isn't bringing in other major sources of revenue, like an income tax.

"In general, localities in states with high property tax burdens tend to have little or no other local taxes," the Tax Policy Center study noted. To top of page

First Published: November 25, 2013: 7:21 AM ET


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Foxconn to build plant in Pennsylvania

Written By limadu on Minggu, 24 November 2013 | 04.32

foxconn factory

A Foxconn factory in China. The contract manufacturer for Apple and other leading U.S. tech companies announced plans to build a plant in Pennsylvania.

NEW YORK (CNNMoney)

The company, which a year ago said it was looking at expanding its U.S. operations, will also give $10 million to Carnegie Mellon University as part of a strategic research and development partnership with the Pennsylvania college. The money will go towards research and education in the fields of robotics and advanced manufacturing.

The company made the announcement Thursday evening, only one day after Terry Gou, the founder and chairman, first met with Pennsylvania Gov. Tom Corbett.

"This is somewhat of a rarity for us that a project moved along as quickly as it has," said Steve Kratz, spokesman for the state's department of Community and Economic Development.

A location for the plant has yet to be selected.

Related: Apple faces new Chinese labor allegations

Foxconn said last December that it wanted to increase its U.S. operations beyond plants it operated in Texas and Indiana. The company has 30 employees in Harrisburg already, although state officials could not say what the facility there did now.

The statement about its U.S. expansion plans came on the heels of an announcement by Apple (AAPL, Fortune 500), a major Foxconn customer, that it planned to start building some Apple products in the United States.

Foxconn's plants in Asia are massive, employing as many as 190,000 workers at a single factory by some estimates, many of whom live at the plants as well as work there. The company has been criticized for work conditions and for the large number of workers at some plants who have committed suicide. To top of page

First Published: November 22, 2013: 7:12 PM ET


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Cable stocks surge on takeover chatter

time warner cable stock

Click the chart to track shares of Time Warner Cable.

NEW YORK (CNNMoney)

Charter Communications (CHTR, Fortune 500), the fourth largest cable provider with just over 4 million subscribers, has reportedly been in talks with major banks to borrow money to fund a possible bid for Time Warner Cable (TWC, Fortune 500), the second largest cable company with over 11 million subscribers.

But according to a source familiar with the matter, Time Warner Cable has reached out to Comcast (CMCSA, Fortune 500) for a possible deal. There are currently no ongoing conversations though, the source added. With over 21 million subscribers, Comcast is the nation's largest cable provider. (Time Warner Cable was spun off from CNNMoney owner Time Warner (TWX, Fortune 500) in 2009.)

Time Warner Cable and Comcast declined to comment, while Charter could not be reached.

Shares of Time Warner Cable jumped almost 10% on the chatter, while Comcast and Charter shares also gained ground. Another smaller cable company, New York-based Cablevision (CVC, Fortune 500), shot up on the reports as well. Cablevision has long been considered a takeover target.

Related: Who's cutting the cord? Cable stocks soaring

Citing people familiar with the situation, the Wall Street Journal said Charter has held talks with Bank of America (BAC, Fortune 500), Barclays (BCS) and Deutsche Bank (DB) to help come up with financing for a Time Warner Cable bid.

The company may also be reaching out to sovereign wealth funds and wealthy individuals to help pay for the buyout without taking on too much debt. Time Warner Cable is worth $34 billion -- almost three times as much as Charter.

Media mogul John Malone's Liberty Media (LMCA) is the largest shareholder in Charter and Malone has been a loud supporter of more consolidation in the cable industry, which is facing rising costs in programming.

Plus, cable companies are worried about losing subscribers, as some consumers cut the cord and shift to devices like Apple (AAPL, Fortune 500) TV and Roku as well as streaming video services like Aereo, Netflix (NFLX), Hulu and Amazon's (AMZN, Fortune 500)' Prime Instant Video.

While speculation of a deal has been rising for several months since Malone became a shareholder of Charter, the financing efforts represent "perhaps the most concrete step discussed to date," said Nomura analyst Adam Ilkowitz in a note to clients.

He expects Charter will have to raise about $25 billion in total -- $15 billion in debt and $10 billion in cash from other sources.

A merger between the two would likely save $500 million in programming expenses a year, Ilkowitz said.

But IHS cable networks analyst Erik Brannon said those savings may or may not trickle down to consumers, given the rising expenses and intense competition among cable providers.

Meanwhile, further consolidation between the nation's largest cable providers could raise concern among government regulators -- most notably the Department of Justice and the Federal Communications Commission. Citing unnamed sources, CNBC reported that Comcast is seeking advice on antitrust and FCC concerns.

A merger between Comcast and Time Warner Cable would result in one company with over 32 million subscribers, or nearly a third of all cable subscribers, Brannon said. But he doesn't think a merger between the two is likely.

"I don't think it makes sense for Comcast at this point," he said, noting that Time Warner Cable has been losing an average of about 175,000 subscribers per quarter recently. During the third quarter alone, the company lost a startling 306,000 subscribers due to its month-long fight with CBS (CBS, Fortune 500). "There isn't much upside versus the expenditures Comcast would have." To top of page

First Published: November 22, 2013: 1:32 PM ET


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Credit Suisse banker sentenced to 30 months in prison

NEW YORK (CNNMoney)

Serageldin, who had been extradited from the UK in April, had pled guilty to the charges. At the time of his February 2012 indictment, authorities said he faced up to 45 years in prison if convicted. Preet Bharara, the U.S. Attorney for the Southern District of New York, announced the sentencing late Friday evening.

According to the statement from Bharara's office last year, Serageldin's manipulated the prices of the mortgage bonds to try to cover up the trading loss. His price manipulation, it said, was responsible for $540 million of the $2.85 billion charge that Credit Suisse (CS) was forced to take in early 2008.

Serageldin's co-conspirators, David Higgs and Salmaan Siddiqui, have also pleaded guilty and are awaiting sentencing. To top of page

First Published: November 22, 2013: 7:56 PM ET


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Cable stocks surge on takeover chatter

Written By limadu on Sabtu, 23 November 2013 | 04.32

time warner cable stock

Click the chart to track shares of Time Warner Cable.

NEW YORK (CNNMoney)

Charter Communications (CHTR, Fortune 500), the fourth largest cable provider with just over 4 million subscribers, has reportedly been in talks with major banks to borrow money to fund a possible bid for Time Warner Cable (TWC, Fortune 500), the second largest cable company with over 11 million subscribers.

But according to a source familiar with the matter, Time Warner Cable has reached out to Comcast (CMCSA, Fortune 500) for a possible deal. There are currently no ongoing conversations though, the source added. With over 21 million subscribers, Comcast is the nation's largest cable provider. (Time Warner Cable was spun off from CNNMoney owner Time Warner (TWX, Fortune 500) in 2009.)

Time Warner Cable and Comcast declined to comment, while Charter could not be reached.

Shares of Time Warner Cable jumped almost 10% on the chatter, while Comcast and Charter shares also gained ground. Another smaller cable company, New York-based Cablevision (CVC, Fortune 500), shot up on the reports as well. Cablevision has long been considered a takeover target.

Related: Who's cutting the cord? Cable stocks soaring

Citing people familiar with the situation, the Wall Street Journal said Charter has held talks with Bank of America (BAC, Fortune 500), Barclays (BCS) and Deutsche Bank (DB) to help come up with financing for a Time Warner Cable bid.

The company may also be reaching out to sovereign wealth funds and wealthy individuals to help pay for the buyout without taking on too much debt. Time Warner Cable is worth $34 billion -- almost three times as much as Charter.

Media mogul John Malone's Liberty Media (LMCA) is the largest shareholder in Charter and Malone has been a loud supporter of more consolidation in the cable industry, which is facing rising costs in programming.

Plus, cable companies are worried about losing subscribers, as some consumers cut the cord and shift to devices like Apple (AAPL, Fortune 500) TV and Roku as well as streaming video services like Aereo, Netflix (NFLX), Hulu and Amazon's (AMZN, Fortune 500)' Prime Instant Video.

While speculation of a deal has been rising for several months since Malone became a shareholder of Charter, the financing efforts represent "perhaps the most concrete step discussed to date," said Nomura analyst Adam Ilkowitz in a note to clients.

He expects Charter will have to raise about $25 billion in total -- $15 billion in debt and $10 billion in cash from other sources.

A merger between the two would likely save $500 million in programming expenses a year, Ilkowitz said.

But IHS cable networks analyst Erik Brannon said those savings may or may not trickle down to consumers, given the rising expenses and intense competition among cable providers.

Meanwhile, further consolidation between the nation's largest cable providers could raise concern among government regulators -- most notably the Department of Justice and the Federal Communications Commission. Citing unnamed sources, CNBC reported that Comcast is seeking advice on antitrust and FCC concerns.

A merger between Comcast and Time Warner Cable would result in one company with over 32 million subscribers, or nearly a third of all cable subscribers, Brannon said. But he doesn't think a merger between the two is likely.

"I don't think it makes sense for Comcast at this point," he said, noting that Time Warner Cable has been losing an average of about 175,000 subscribers per quarter recently. During the third quarter alone, the company lost a startling 306,000 subscribers due to its month-long fight with CBS (CBS, Fortune 500). "There isn't much upside versus the expenditures Comcast would have." To top of page

First Published: November 22, 2013: 1:32 PM ET


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Foxconn to build plant in Pennsylvania

foxconn factory

A Foxconn factory in China. The contract manufacturer for Apple and other leading U.S. tech companies announced plans to build a plant in Pennsylvania.

NEW YORK (CNNMoney)

The company, which a year ago said it was looking at expanding its U.S. operations, will also give $10 million to Carnegie Mellon University as part of a strategic research and development partnership with the Pennsylvania college. The money will go towards research and education in the fields of robotics and advanced manufacturing.

The company made the announcement Thursday evening, only one day after Terry Gou, the founder and chairman, first met with Pennsylvania Gov. Tom Corbett.

"This is somewhat of a rarity for us that a project moved along as quickly as it has," said Steve Kratz, spokesman for the state's department of Community and Economic Development.

A location for the plant has yet to be selected.

Related: Apple faces new Chinese labor allegations

Foxconn said last December that it wanted to increase its U.S. operations beyond plants it operated in Texas and Indiana. The company has 30 employees in Harrisburg already, although state officials could not say what the facility there did now.

The statement about its U.S. expansion plans came on the heels of an announcement by Apple (AAPL, Fortune 500), a major Foxconn customer, that it planned to start building some Apple products in the United States.

Foxconn's plants in Asia are massive, employing as many as 190,000 workers at a single factory by some estimates, many of whom live at the plants as well as work there. The company has been criticized for work conditions and for the large number of workers at some plants who have committed suicide. To top of page

First Published: November 22, 2013: 7:12 PM ET


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Credit Suisse banker sentenced to 30 months in prison

NEW YORK (CNNMoney)

Serageldin, who had been extradited from the UK in April, had pled guilty to the charges. At the time of his February 2012 indictment, authorities said he faced up to 45 years in prison if convicted. Preet Bharara, the U.S. Attorney for the Southern District of New York, announced the sentencing late Friday evening.

According to the statement from Bharara's office last year, Serageldin's manipulated the prices of the mortgage bonds to try to cover up the trading loss. His price manipulation, it said, was responsible for $540 million of the $2.85 billion charge that Credit Suisse (CS) was forced to take in early 2008.

Serageldin's co-conspirators, David Higgs and Salmaan Siddiqui, have also pleaded guilty and are awaiting sentencing. To top of page

First Published: November 22, 2013: 7:56 PM ET


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The danger when one client is 80% of sales

Written By limadu on Jumat, 22 November 2013 | 04.32

NEW YORK (CNNMoney)

It's a lesson Marsha Friedman learned the hard way. Shortly after she founded her Florida PR firm, EMSI Public Relations, a large publishing house signed on as a client.

"The first few publicity campaigns we did for them were so successful that they kept a steady stream of clients flowing to us, to the point where that publisher accounted for about 80% of our sales," she said.

For a while, that was fine, except for one little thing: EMSI all but quit trying to drum up new business.

"We became so focused on delivering for these authors that we slowly stopped marketing. Our newsletters ground to a halt. We didn't 'waste time' networking," Friedman said.

Related: Want loyal customers? Build a culture of saying yes

That went on for about two years -- and then the ball dropped. The publisher suddenly went out of business. "We had absolutely no warning whatsoever," Friedman recalled. Her firm was forced to basically start from scratch.

Determined not to lay anyone off, Friedman kept her four employees (the firm now has 18), and started working 14-hour days and weekends to hustle up new business. She took a pay cut and slashed expenses so deeply that even free coffee, formerly an office staple, fell by the wayside.

Lining up enough new clients to keep the business afloat took seven or eight months, which Friedman said easily could have killed the company. She built a new client base in three ways.

First, since she and her staff had learned that they liked working with authors, Friedman launched a letter-writing campaign, contacting new authors mentioned in Publishers Weekly.

"I worked hard on developing a clear, engaging letter about publicizing their book, and sent the letters via their publishers," Friedman said. At one point, she was mailing 100 letters each week.

Related: Best social network for your business

At the same time, Friedman got in touch with "everyone I knew in the business world -- including family members, former colleagues and friends -- and asked them for referrals," she said. "It helped that I had all those relationships to call on in this crisis."

Third, and most important, she revived the firm's newsletter, which still goes out twice a week to current and prospective customers.

"The newsletter isn't a sales pitch," Friedman said. "Instead, it gives expert tips on things like how to write a press release, or how to get on talk radio."

She noted that this strategy isn't new, and in fact is the basis of social media marketing. "But many entrepreneurs hesitate to do it, because it seems like giving away the store."

In her experience, the opposite is true: "Becoming known as a source of helpful advice gets your name out there and builds trust. And, no matter how much free information you give out, most people would still rather hire a pro than try to do your job themselves."

Giving away helpful tips has worked for EMSI. The firm now has over 100 regular clients and, these days, is always on the lookout for more.

Related: 9 apps every business traveler needs now To top of page

First Published: November 22, 2013: 6:30 AM ET


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Federal cuts biting into home heating aid

liheap pumping gas oil

Federal budget cuts have hit a program that helps the poor heat and cool their homes this winter. Some 300,000 fewer households will be helped this year.

WASHINGTON (CNNMoney)

This is the second year that so-called sequester, or deep government spending cuts, will hit a federal program that pays the tab to heat and cool homes for the nation's poorest.

The dollars won't stretch far.

It means Lyman Curtis, single dad of five kids, will only be able to reliably heat his home in Dexter, Maine, for the first half of this winter, maybe through February.

After that, Curtis will drive to the local gas station to buy kerosene oil in 5-gallon increments -- all he can afford to buy at one time.

"I know a lot of people who do it that way, because there's just not enough money to heat your home and pay for groceries in your everyday life," said Curtis, 38, who is the primary caregiver for his kids and relies on disability benefits and food stamps to survive.

The cost of heating the four-bedroom home he's staying at runs 600 gallons or around $2,100 from November through April or May, based on current prices. His heating benefit is $800.

Still, Curtis is one of the lucky ones. He's among the 6.3 million who will at least get some help this year through the federal program called the Low Income Home Energy Assistance Program.

Related: Federal cuts hit seniors who want to live at home

It's tougher this year for everybody because the cost to keep homes warm is up about 6% on average, according to a lobbying group for state directors who divvy up the government money and federal energy estimates.

"We're purchasing a product that is volatile and contingent on weather conditions," said Mark Wolfe, executive director of National Energy Assistance Directors Association. "The problem is the economy is not getting better fast enough and energy prices are going up."

This year, under sequester, the program will deliver $3.1 billion in heating help, down from the high of $5.1 billion during the recession, which went to 8 million households. The problem is, the need for heating help remains high, say many state directors.

A November Census Bureau supplemental report on poverty noted that this is one of several federal programs that help keep families out of poverty, while also noting the poverty rate hasn't budged over the past two years.

"Our ability to help these folks is diminished. . .A few years ago, we could cover two tanks of fuel, now we can't even cover one," said Joseph Diamond, who runs the Massachusetts Association for Community Action, which administers the program in Massachusetts.

And when the money runs out, families turn to candles, gas stoves and space heaters, which pose major fire hazards, warn administrators of the program. Last month, a day after the power company cut off electricity for unpaid bills, a fire caused by a candle swept through a Bronx apartment killing three young brothers.

Related: Poverty level doesn't budge

In Boston, the program last month helped Sylvia Fearon, 71, who ran out of money for heating oil during a cold snap.

On Oct. 24, she was shivering so badly, she had started to pack up to head for a shelter. Action for Boston Community Development came to her rescue and arranged the delivery of 150 gallons of heating oil to heat her home, thanks to the program.

"I wouldn't be able to heat my house without them. I really appreciate the program," said Fearon, a retired nursing assistant.

Yet 150 gallons isn't going to last very long, said Fearon, who is retired and lives on $11,000 a year from social security benefits.

"I'm trying to be very careful to keep my thermostat low, to around 68 degrees inside," she said.

Meanwhile, Curtis emphasized that he didn't consider himself a person who is sitting around expecting a handout.

"We are single parents raising children the best way we can ... but just do not have the financial means to do it all," Curtis said. "We do not want to have to depend on programs like this, we just do not have a choice." To top of page

First Published: November 22, 2013: 6:37 AM ET


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Buyer beware: Retail cards have costly trap

shady credit card offers

Beware of tempting credit card offers from retailers that appear too good to be true.

NEW YORK (CNNMoney)

Many retailers advertise credit cards with an introductory 0% interest rate, which can be a great deal if you pay off your balance in full before the offer period expires. But if you don't, and even if you're only short a couple of dollars, some retailers will charge you what is called deferred interest and retroactively apply the full APR to your entire original balance -- not just the amount that wasn't paid back on time.

It's "as if you never had an interest-free period to begin with," and the average APR charged is a whopping 25%, according to CardHub.com, which analyzed the financing options from 50 of the largest retailers.

Related: Google launches prepaid card

Say you open a credit card offering 0% interest for six months that will default to 20% once the introductory period ends. By the end of the six month period, you only pay back $799 of the $800 you spent, and don't pay off the full balance until the next month. If the card carries a deferred interest option, you could end up paying an extra $55, whereas a traditional credit card offer would leave you with $2 in interest, according to CardHub's analysis.

"When consumers see a no-interest offer, they tend to take that at face value, thinking they're gaining a true respite from finance charges for the advertised length of time," said CardHub CEO Odysseas Papadimitriou.

Related: America's favorite credit cards

CardHub found that 42% of retailers that offer financing options charge deferred interest and 41% of those stores aren't transparent about the terms. Only 29% of retailers who charge deferred interest provide clear terms and put key information, like the APR they charge once the introductory period ends, in an easy-to-find location.

Retailers charging deferred interest include Amazon, Apple, Lowes, Walmart, Pottery Barn and Macy's, according to CardHub, which scored each retailer individually on its policies.

"We all know that too few people truly read the fine print of financial agreements, which means most folks won't find out that they have signed up for deferred interest until their costs are suddenly inflated," said Papadimitriou. The average household already has $6,700 in credit card debt... we don't need hidden costs adding to our problems." To top of page

First Published: November 22, 2013: 6:40 AM ET


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The Wall Street Stupidity Index

Written By limadu on Kamis, 21 November 2013 | 04.32

Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2013 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2013 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2013. All rights reserved. Most stock quote data provided by BATS.
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A very strange scandal

(Fortune)

The reason the Stapleses could pull off a scheme that seemingly benefits everyone begins with corporate bond offerings and a little-known provision called a survivor's option. If you buy a bond and die, your heirs are allowed to cash in the bond at face value immediately rather than having to wait until it matures. The survivor's option is meant for estate planning purposes. On Wall Street some call it a death put. Issuers have used the provision to attract elderly couples -- a key debt-buying demographic.


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Zambia's resource problem

Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2013 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2013 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2013. All rights reserved. Most stock quote data provided by BATS.
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Sold! Elvis Presley Inc. has a new owner

Written By limadu on Rabu, 20 November 2013 | 04.32

elvis

Elvis, surrounded by fans after a 1958 concert.

HONG KONG (CNNMoney)

Authentic Brands Group announced Tuesday that it has purchased the intellectual property associated with the rock-and-roll icon from Core Media Group.

Authentic Brands, which already controls the Marilyn Monroe and Juicy Couture brands, will own and manage global rights to a vast library of thousands of Elvis photos, album covers, movie posters, archive video footage and events like "Elvis Week."

Related story: Elvis heads to Wal-Mart's shelves

"We are honored to welcome Elvis into the ABG brand portfolio and look forward to working alongside the Presley family and the team at Elvis Presley Enterprises to increase Elvis' popularity and fan base worldwide," said Authentic Brands CEO Jamie Salter.

A purchase price was not disclosed, and Authentic Brands did not immediately respond to a request for comment.

As part of the deal, Authentic Brands will operate Graceland in partnership with Joel Weinshanker, the chairman of National Entertainment Collectibles Association.

Graceland, Elvis's former home in Memphis, Tennessee, is now a major tourist attraction, drawing more than 600,000 fans each year. Visitors to the house can eat Elvis's favorite dishes, purchase King memorabilia or stay at the Heartbreak Hotel.

"We are looking forward to working with our new partners to continue the growth and expansion we have been working towards," said Lisa Marie Presley, the late singer's daughter. The Presley family retains ownership of Graceland and its original items.

In 2005, an 85% stake in Elvis Presley Enterprises was sold to media company CKX for $114 million. Private equity firm Apollo Global Management later purchased CKX and changed the firm's name to Core Media.

Related story: The man who sells celebrity hair

Elvis, a major American icon, won the Grammy Lifetime Achievement Award at 36, and has sold over one billion records. His death at age 42 in 1977 prompted numerous conspiracy theories, and some diehard fans continue to insist the star is alive. To top of page

First Published: November 20, 2013: 2:22 AM ET


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Fired Wal-Mart workers could get jobs back

walmart protestors

Wal-Mart workers have been protesting for higher wages.

NEW YORK (CNNMoney)

On Monday, a federal agency said it is ready to bring a case against Wal-Mart (WMT, Fortune 500)for allegedly retaliating against workers who staged Black Friday protests last year.

The National Labor Relations Board, which protects the rights of workers who organize for better working conditions, said Wal-Mart illegally threatened "reprisal" against workers who protested on November 22, 2012. The agency also said Wal-Mart stores in more than a dozen states "unlawfully threatened, disciplined, and/or terminated employees" who participated in legal strikes and protests.

Wal-Mart has up to two weeks to reach a settlement, according to the NLRB. Under any settlement, Wal-Mart would either have to hire back the people it fired or compensate workers who had been disciplined, the NLRB said.

Related: Wal-Mart store's food drive for its own workers

If a settlement is not reached, the agency said it would file a complaint against Wal-Mart, after which a trial would be scheduled with an administrative law judge.

Wal-Mart spokeswoman Brooke Buchanan said the company is looking into its next steps and will take a decision very soon.

"We take this very seriously. We believe our actions were legal and justified," Buchanan said.

The NLRB did not know the exact number of workers affected, but the union-backed group OUR Walmart, which has been organizing workers, said that 117 workers had been either fired or disciplined for participating.

The labor accusations come as workers are gearing up to gather for a second year of protest on Black Friday, calling for higher wages, better hours and the right to speak up without fear of retaliation.

On Monday, OUR Walmart said the protests could be one of the largest mobilizations of working families in U.S. history.

Hundreds of workers participated last year on Black Friday, the day after Thanksgiving, when millions of people throng stores that run big holiday sales.

Last year's protesters included the fired workers. Employees have continued to strike. Earlier this month, three current and two former Wal-Mart workers were arrested while picketing outside of a Los Angeles store. To top of page

First Published: November 20, 2013: 2:19 AM ET


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Markets weak as they await Fed and data

sp 500 futures 645

Click on chart to track premarkets

NEW YORK (CNNMoney)

U.S. stock futures were lackluster as they slipped slightly below Tuesday's closing numbers.

The market is waiting for the release at 2 p.m. ET of the minutes from the Federal Reserve's most recent policy meeting.

DailyFX strategist Ilya Spika said that European markets, which often lead Wall Street, are "treading water as markets wait to see minutes from October's FOMC policy meeting."

Investors are looking for further evidence that the central bank will continue its stimulus program into 2014, extending the huge bond-buying spree that has supported the U.S. economic recovery and helped boost stock markets to record levels.

On Tuesday evening, chairman Ben Bernanke made a speech that indicated Fed support was likely to continue into 2014.

Related: Bernanke says the recent jobs reports were "disappointing"

Markets are also waiting for the monthly Consumer Price Index from the U.S. Labor Department, which is the government's key measure of inflation. That data will come out at 8:30 a.m.

Inflation for October is expected to be flat, according to Briefing.com's consensus of economist forecasts, with a slight uptick in core CPI, which excludes volatile energy and food prices.

Also, the Census Bureau will publish its monthly report on retail sales at the same time.

At 10 a.m., the National Association of Realtors will release its monthly report on existing home sales.

Related: Fear & Greed Index, still greedy

On the corporate side, retailer J.C. Penney (JCP, Fortune 500) is scheduled to report quarterly results before the opening bell, while Green Mountain Coffee Roasters (GMCR) is up in the afternoon.

Lowe's (LOW, Fortune 500) reported a double-digit gain in quarterly profit, which Chief Executive Officer Robert Niblock attributed to the strengthening market for home improvement.

Shares in JPMorgan Chase (JPM, Fortune 500) were edging slightly lower in premarket trading after the investment bank announced a $13 billion settlement with the U.S. Department of Justice over mortgage-backed securities sold ahead of the financial crisis.

Yahoo (YHOO, Fortune 500) shares rose in premarket trading following the news on Tuesday that the company is boosting its stock buyback by another $5 billion.

Related: JPMorgan can deduct big chunk of $13 billion deal

U.S. stocks slipped Tuesday to just below record levels. The Dow Jones industrial average ended slightly lower after rising above 16,000 earlier in the day.

European markets were edging lower in morning trading and Asian markets ended with mixed results. Chinese indexes closed with gains though other key markets moved down. To top of page

First Published: November 20, 2013: 5:20 AM ET


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Tech firms now hiring more women than men

Written By limadu on Selasa, 19 November 2013 | 04.32

women tech

Some 60% of tech industry jobs went to women over the past year.

NEW YORK (CNNMoney)

Over the last 12 months, the tech industry added 60,000 jobs, and 36,000 -- or 60% -- of those positions went to women, according to the Bureau of Labor Statistics.

Usually, men make up 70% to 80% of the new hires, but according to the BLS, the tide seems to have turned in the last year.

"Overall, it's a surprise to see there's a sudden increase, and obviously, it's too soon to know if a few months is a trend," said Shravan Goli, president of Dice Holdings. "There's been so much awareness building and activity from companies to pursue diversity, plus you've got the Sheryl Sandbergs and Marissa Mayers of the world -- I think all of that is starting to result in increased awareness and an attraction toward technology roles for women more than ever before."

Related: Startups have a sexism problem

Of course, women still have a long way to go before they make up at least half of the entire industry. Hiring has been male-dominated for years, and overall, women still make up less than one-third of all employees in the technology sector.

Plus, the numbers don't distinguish between different occupations. It's possible tech firms could be hiring huge teams of female administrators and still mostly male engineers.

Related: Black, female, and a Silicon Valley 'trade secret'

Earlier this year, CNNMoney's Julianne Pepitone probed influential tech companies for data on the diversity of their employees.

At companies like Cisco, Dell, eBay and Intel, there was only one department where women made up at least 50% of the employees: administration. Women were underrepresented in sales, mid- and top-level management and technician roles. (See the data) To top of page

First Published: November 19, 2013: 6:09 AM ET


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Feds open safety probe into Tesla fires

tesla model s fire

One of three Tesla Model S vehicles that has caught fire.

NEW YORK (CNNMoney)

The announcement comes after three fires in the last six weeks involving the electric car, which has gotten top safety ratings in crash tests performed by the National Highway Traffic Safety Administration. Nonetheless, the NHTSA said it has opened a probe into the cause of the fires.

"The National Highway Traffic Safety Administration is deeply committed to safeguarding the driving public. The Agency has opened a formal investigation to determine if a safety defect exists in certain Tesla Model S vehicles," said the agency's statement.

Tesla was not immediately available for comment. But CEO Elon Musk has defended the safety record of the Model S, pointing out that no one has been hurt or killed in any accident involving a Model S, and that the fires occur about one fourth as often as in the case of a traditional gasoline-powered car.

There are about 19,000 Tesla (TSLA) Model S vehicles on the road, meaning that about one in 6,300 has had a fire.

By comparison, there are 250 million cars and trucks on the road, virtually all of them gasoline powered. The latest figures from the National Fire Protection Association show that there were about 172,500 vehicle fires in the United States last year, or about one for every 1,450 vehicles on the road. Those fires were associated with 300 deaths and 800 injuries.

Related: After fire, Tesla driver says he'd buy another

"There's no reason for a recall," Tesla CEO Elon Musk said in a recent appearance in New York. "If you read the headlines, it sounds like Teslas have a greater propensity to catch fires than other cars. In reality, nothing could be further from the truth."

Musk said the fires were caused by the severity of the accidents they were involved in, not a problem with the car. He said if a recall could fix any problem, Tesla would be quick to order one.

There have been two recalls of Tesla models in the past . The problems that were addressed did not cause any accidents or injuries. To top of page

First Published: November 19, 2013: 7:00 AM ET


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