JPMorgan facing criminal probe over currency trades

HONG KONG (CNNMoney)

The largest U.S. bank by assets made the disclosure Monday in a regulatory filing. JPMorgan (JPM) said that other regulators, including the Commodity Futures Trading Commission and the U.K. Financial Conduct Authority, are pursuing civil investigations.

The bank said it was cooperating with the regulators, and was engaged in active discussion with the DOJ. "There is no assurance that such discussions will result in settlements," the filing cautioned.

The firm, led by CEO Jamie Dimon, also hiked one estimate of the possible costs of current legal proceedings against the bank to $5.9 billion.

JPMorgan (JPM) is far from the only bank under investigation for possible foreign currency market abuse. Financial regulators have been looking into whether the banks sought to manipulate interest rates, with internal and external probes involving UBS (UBS), Deutsche Bank (DB), Barclays (BCS) and the Royal Bank of Scotland (RBS), among others.

The disclosure from JPMorgan comes as U.S. officials turn up the heat on big banks.

Related: Forex fraud: Now it's getting serious

JPMorgan acknowledged the changing climate in the regulatory filing, saying that U.S. government officials have "emphasized their willingness to bring criminal actions against financial institutions" in recent months.

"Such actions can have significant collateral consequences for a subject financial institution, including loss of customers and business and the inability to offer certain products or services or operate certain businesses for a period of time," the bank said.

First Published: November 4, 2014: 5:11 AM ET

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Stocks: 5 things to know before the open

LONDON (CNNMoney)

Here are the five things you need to know before the opening bell rings in New York:

1. It's all about Alibaba: Alibaba (BABA, Tech30) is set to release its first earnings report since its mega IPO. Investors are eagerly anticipating the results. Alibaba is now worth more than Wal-Mart.

2. More earnings: Plenty of other companies will also be releasing quarterly results. Other big names reporting before the opening bell include Burger King (BKW), Office Depot (ODP), Estee Lauder (EL) and CVS Health (CVS).

21st Century Fox (FOX) will report after the close.

3. Elections and economics: Midterm elections have arrived in the U.S. The results will determine what President Obama can get done in his final two years in office. They will also tee up the 2016 presidential contest.

The European Commission slashed its expectations for eurozone growth in its latest autumn economic report. The commission now expects the economy will grow by only 0.8% this year, 1.1% in 2015 and 1.7% in 2016. It also gave major downgrades to the outlook for the two largest eurozone economies — France and Germany. The eurozone continues to struggle with terribly low inflation and high unemployment.

At 8:30 a.m. ET, the U.S. Census Bureau will release September data on the trade balance.

4. Market moves: U.S. stock futures were moving lower ahead of the open and European markets were also declining. The market mood appeared to have soured after the economic forecast came through from the European Commission.

U.S. stocks closed little changed on Monday. The Dow slipped 24 points and the S&P 500 barely budged. The Nasdaq was up just shy of 0.2%.

5. Turning Japanese: The Nikkei topped 17,000 in early trading — a level not seen since 2007 — as investors continued to cheer the Bank of Japan's decision to inject more cash into the economy. The Japanese yen continues to weaken versus the U.S. dollar.

First Published: November 4, 2014: 4:54 AM ET

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Starwood hotels let you unlock your hotel room with your phone

NEW YORK (CNNMoney)

Starting Wednesday, guests will be able to use their smartphones as room keys at ten Starwood hotels (HOT) around the world. The technology will be available in all 150 Aloft, Element, and W Hotels by early next year.

"My mobile device now is like my remote control for life," Starwood Hotels and Resorts CEO Frits van Paasschen told CNNMoney. "There's no reason why that shouldn't be your portal to get to your room, ask for what you want, or anything else."

Guests can check in using the Starwood app. They receive their room number and Bluetooth key. That means they can bypass the front desk and head straight to their room.

Related: Harry Potter hotel website crashes

To open the hotel door, it's as simple as holding the phone up to the door lock and waiting for a click.

Van Paasschen says mobile keys are a safer option for guests.

"If you lose your mobile device, you notice right away. If you have to use your passcode to get into your phone, even if someone finds your phone they can't get into your room." van Paasschen said.

Starwood, the parent company of Sheraton, Westin, and St. Regis hotels, is not the only chain trying to make key cards obsolete. Hilton (HLT) is working on a similar technology.

And most major hotel chains are funneling money into improving their apps and mobile services. They're betting on mobile options like check-in and check-out to win over millennials. Apps may also provide a better way to sell room service, upgrades, and other offerings.

Related: How much should you tip housekeeping?

Starwood says mobile keys and check-in are just an initial step in its mobile plans.

"We're increasingly going to upgrade the functionality of the app so you can do things like tell us where you are and what you want," van Paasschen said. "We can start to send you offers targeted to exactly what you want."

First Published: November 4, 2014: 6:45 AM ET

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Singapore tops the list of best places to do business

Singapore is the best place to do business, the World Bank said.

LONDON (CNNMoney)

No wonder, then, that the tiny island nation tops the World Bank's ranking of the best places to do business in the world -- for the ninth year in a row. New Zealand and Hong Kong ranked second and third on the list.

The report notes that business owners in Singapore spend an average of 82 hours a year trying to resolve tax issues. That's half as much as the 175 hours that business owners spend dealing with tax issues in the U.S., which ranked seventh on the list.

It praises New Zealand for an efficient planning system that makes it easy for people to get a business off the ground and cites Hong Kong's low corporate tax rate.

Switzerland entered the top 20 for the first time after it passed new rules protecting minority shareholders.

The good news is that 80% of the 189 countries the World Bank ranked have improved their scores since last year.

Tajikistan, Benin and Togo are three countries that showed the most improvement.

Benin, which jumped 16 spots to number 151, passed new laws protecting minority shareholders, while Togo climbed 15 spots to 149, after making it easier to get a construction permit. Tajikistan moved up nine spots to 166.

Here are the top 10:

1. Singapore

2. New Zealand

3. Hong Kong

4. Denmark

5. Korea

6. Norway

7. United States

8. United Kingdom

9. Finland

10. Australia

First Published: November 3, 2014: 5:31 AM ET

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Wall Street donors dump Democrats

Wall Street isn't digging the Democratic party right now.

NEW YORK (CNNMoney)

A record 63% of the political contributions from employees and corporations in the banking and investment sectors went to Republicans this election cycle, according to data from the Center for Responsive politics. It's the largest dollar figure ($78 million) and percent for the GOP in any midterm election.

The donations are likely based on a bet that Republicans have the best shot at victory on Tuesday.

Related: Wall Street predicts GOP mid-term victory

"You want to be with the winner," said Dorsey Farr, co-founder of French Wolf & Farr, an investment advisory firm in Atlanta. "A lot of times you'll see companies give to both parties. If they see the tide turning, they'll go with the flow."

The figures don't include money channeled through political action committees, which have played an increasingly prevalent role in campaign finance in recent years.

But the boosted election expenditures from the financial world this time around also have to do with the fact that the Democratic Party has turned up the heat on Wall Street since the financial crisis.

"Democrats are just more of the regulatory party," said Ray La Raja, a political science professor at the University of Massachusetts - Amherst, adding that they used to be more amenable to the things Wall Street cared about.

Related: Complete coverage of the 2014 midterms

"In the past bankers could work with any party. Now, all things equal, they'd rather work with Republicans," he claimed.

But beyond the strategic calculations, there's also a philosophical element, with many on Wall Street having grown tired of being punished for their industry's past deeds.

Almost all of the major banks have paid out unprecedented multi-billion settlements in recent years for their role leading up to the financial meltdown.

They've also become a political punching bag.

Early in his first term, President Obama famously contended that he didn't get elected to help out "a bunch of fat cat bankers on Wall Street." And he's repeatedly tried to close tax loopholes that benefit hedge fund and private equity managers.

"Wall Street feels rightly or wrongly like they've been demonized by this administration," asserted La Raja.

But it doesn't really matter to most people whether or not a bunch of investor types have had their feelings hurt.

Related: Millionaire tax on the ballot in Illinois

In fact, the populist backlash against Wall Street excess still plays a prevalent role in politics. In a recent interview with Salon, prominent Senator Elizabeth Warren (D-Massachusetts) lambasted the president's economic team for picking Wall Street over Main Street.

And possible 2016 Democratic presidential candidate Hillary Clinton had to backpedal from comments she made at an event earlier this month in which she told the crowd, "don't let anybody tell you that it's corporations and businesses that create jobs."

Warren spoke at that same event, and political commentators were quick to speculate that Clinton was appealing to her party's left leaning, anti-Wall Street base.

According to La Raja, the populist theme will continue to resonate with voters into the 2016 Presidential election as long as the economic recovery remains sluggish for many Americans.

Related: Will this get millennials to buy homes?

On the other hand, "If all engines are running and the economy is doing well, populism dies."

Still, it's not as if Wall Street has totally abandoned Democrats. Senator Cory Booker (D-New Jersey) was the top recipient of contributions from members of the investment community this election, having raked in almost $1.9 million.

Charles Schumer (D-New York), traditionally a friend of Wall Street who sits on the the influential Senate Finance Committee, pulled in about $850,000.

"I'm sure they're not going to piss off a powerful Democrat," La Raja said of big Wall Street donors.

First Published: November 3, 2014: 7:28 AM ET

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Stocks: 3 things to know before the open

Click chart for in-depth premarket data.

LONDON (CNNMoney)

Here are three things you need to know before the opening bell rings in New York:

1. Timid trading after stocks hit records: It looks like stocks could start the month on the back foot after October's fireworks. U.S. futures are edging lower and there's a lack of direction in the markets.

European markets were edging lower in early trading. Asian markets ended with mixed results.

October was an explosive month, ending with a bang on Friday. The Dow, S&P 500 and Nasdaq rallied by more than 1% on Halloween. Both the Dow and the S&P 500 closed at record highs and the Nasdaq is at its highest point since the March 2000 Dot-com peak.

The latest reading on the CNNMoney Fear & Greed index shows investors are still feeling fearful, but the extreme fear from mid-October has been shaken out of the markets.

Related: Faster Internet access in the middle of the ocean

2. Earnings: Sysco (SYY) and Sprint (S) will report quarterly earnings before the opening bell. Herbalife (HLF) will report after the close.

L'Oreal (LRLCF) is expected to report after the close of trading in Paris.

HSBC (HSEA) reported earnings in the early morning. Third quarter underlying pre-tax profit fell 12%, in part because the global bank set aside $378 million to cover its exposure to an investigation into alleged rigging of the foreign exchange market. Its shares were about 0.5% lower in London trading.

3. Economics: The ISM Manufacturing Index is set to come out at 10 a.m. ET. At the same time, the U.S. government will report monthly construction spending.

Throughout the day, automakers will be releasing data on October car and truck sales.

New monthly data from HSBC and Markit show the Chinese manufacturing sector is just barely growing. The HSBC Purchasing Managers' Index came in at 50.4 in October, up from 50.2 in September. A number over 50 indicates growth, while a number below 50 indicates contraction.

First Published: November 3, 2014: 5:08 AM ET

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How I taught my kids to invest

The Ellerbroek family.

NEW YORK (CNNMoney)

That's the message Angie Ellerbroek is instilling in her three children. They are all under 12-years-old, but they already own stock.

"We're middle class of the middle class," Angie, who lives in the Midwest, told CNNMoney. "We live within our means. We don't buy new vehicles."

Angie and her husband were frustrated that their childrens' saving accounts were making a mere 0.17% a year in the bank. In other words, nothing.

They had worked hard to save up a bit of money for their kids -- about $1,500 for each child. In the fall of 2011, Angie had an epiphany: It was time to put the savings in the stock market.

"I explained everything to the kids before investing their savings, and they were on board," she said.

Related: Who's getting rich off the stock market?

Each child started by putting money into one stock -- something they had a connection to.

"I bought Apple (AAPL, Tech30) for my son because he loves computers. I bought Disney (DIS) for one daughter because she loves Disney movies. And for my youngest I bought Honeywell (HON)because she was sick and taking spoons of honey for her cough, and we have a Honeywell thermometer," she explained.

Angie also got into the action, purchasing shares of Toyota (TM) since she believed it was a strong brand in 2011 and the recall crisis seemed to be behind it.

Related: Is Apple the perfect stock?

Investing is now dinner table conversation -- and a fun game as the entire family follows the market. While the Ellerbroeks have a friendly competition going to see who has gained the most each week, the reality is everyone is doing very well -- certainly better than they would have if they kept their money in the bank.

The daughter invested in Disney has the most bragging rights. She is up over 140%. The son in Apple is up 85% and even got to experience a stock split earlier this year. The youngest daughter is up close to 70% -- roughly on par with the S&P 500 return since her initial investment.

Bringing up the rear is mom, although Angie isn't complaining about her 67% return either.

"Regardless of our unrealized gains, it's been a good lesson for the kids to watch their investments," Angie said.

The family has since diversified the investment portfolios somewhat, although they don't see the kids' funds as particularly risky since the plan is to keep the money in the market for a long time.

Angie knows the benefits only too well. An aunt who worked hard for UPS (UPS) and didn't have any children of her own would occasionally gift her nieces and nephews stocks. Angie received her first one when she around age 10 or 12.

"When I grew up and used it, I had about $80,000 that had accrued and split so many times. That helped us buy our first house," Angie said.

It was a better lesson about money -- and the power of investing over time -- than any she has learned in the classroom. Now her kids are learning too.

First Published: November 1, 2014: 8:08 AM ET

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Branson: The dream of space tourism lives on

NEW YORK (CNNMoney)

"We are determined to know what went wrong and are working closely with authorities to get that information," Branson said Saturday at a press conference in the Mojave Desert, near the site of the accident.

From CNN: 1 dead, 1 injured in SpaceShipTwo test flight failure

Branson continued to express sorrow for the loss of life. But he also addressed a question on many people's mind: Will Virgin continue its space tourism business?

"We're going to learn what went wrong, discover how we can improve safety and performance and then move forward together," Branson said. "Four hundred engineers who work here and most people in the world would love to see the dream living on."

Commercial flights were set to start in 2015.

The Virgin Galactic spaceship that exploded Friday cost nearly $500 million to develop.

Virgin has sold more than 700 tickets to space already, each costing more than $250,000, for future flights. Several celebrities have already signed up, including Justin Bieber, Ashton Kutcher, Leonardo DiCaprio and Stephen Hawking.

Anyone who has bought a ticket and is now nervous about space flight will be able to get a full refund, Branson assured. The company has received more than $80 million from bookings.

The special plane is called SpaceShipTwo, and it was designed to carry six passengers.

Virgin Galactic has planned for years to sell trips to transport passengers about 62 miles above Earth -- the beginning of outer space -- and let them experience a few minutes of weightlessness before returning.

Friday's mission was SpaceShipTwo's solo flight number 35, according to the company. A specialized jet carried it into the air and then the crafts separated at 50,000 feet.

They disconnected normally, but within minutes, the spaceship experienced "an in-flight anomaly," Virgin Galactic said.

The plane was designed and built by Mojave-based Scaled Composites, a subsidiary of defense contractor Northrop Grumman (NOC).

The project operates under the wing of The Spaceship Company, a venture that's jointly owned by Branson and Abu Dhabi's Aabar Investments PJS.

"Space is hard and today was a rough day," Virgin Galactic CEO George Whitesides said Friday.

The deadly accident marked the second time in a week that a private U.S. space company suffered a major loss. On Tuesday, a NASA contractor -- the Orbital Sciences Corporation (ORB) -- blew up its own unmanned Antares rocket when it started to malfunction. It was bound for the International Space Station with 5,000 pounds of supplies and experiments.

The space community showed signs of solidarity after Friday's explosion.

Elon Musk, CEO of SpaceX, sent his sympathies over Twitter to the families of the pilots and the Virgin Galactic team.

NASA Administrator Charles Bolden also offered condolences.

"Space flight is incredibly difficult, and we commend the passion of all in the space community who take on risk to push the boundaries of human achievement," he said.

--CNN's Jason Hanna and CNNMoney's Octavio Blanco, Katie Lobosco and Jose Pagliery contributed to this report.

First Published: November 1, 2014: 2:38 PM ET

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NBC is developing a reality show with Virgin Galactic

NEW YORK (CNNMoney)

The network declined to comment. But according to Deadline, NBC is now "gathering information on the situation" regarding the reality series.

During a test flight, a "serious anomaly" caused Virgin's commercial space craft to explode over the Mojave Desert, killing one and seriously injuring another.

The show -- which was announced last year -- is an exclusive series between NBC, Virgin founder Richard Branson and reality TV super-producer Mark Burnett.

NBC described the show as an elimination competition in which normal people would compete with one another for "the ultimate prize" -- a flight into space on Virgin Galactic's SpaceShipTwo.

The series would also have "unprecedented access" to Virgin Galactic's Spaceport America facilities in New Mexico, where contestants would train for their winning flight, according to a press release issued last year.

Related: Virgin Galactic spaceship explodes

Virgin Galactic's plan for the $500 million spaceship is to transport passengers 62 miles above Earth where the planet meets the onset of space.

The flight reportedly would cost guests upward of $250,000 and celebrities like Leonardo DiCaprio and Stephen Hawking have signed up for tickets.

For Burnett -- the producer behind reality hits like "Survivor" -- "Space Race" is another attempt to accomplish his dream of using a TV show to send everyday people into space.

"I am thrilled to be part of a series that will give the everyday person a chance to see space," Burnett said last year. "NBC has come on board ... so that viewers at home will have a first class seat."

First Published: October 31, 2014: 6:40 PM ET

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Stocks: 5 things to know before the open

Click chart for in-depth premarket data.

LONDON (CNNMoney)

Here are the five things you need to know before the opening bell rings in New York:

1. It's all about Japan: The Bank of Japan has shocked global markets by boosting its aggressive stimulus program in an effort to keep the country's economic revival on track.

Japan's Nikkei index surged by nearly 5% to hit a seven-year high and stock markets around the world are rallying.

Asian markets closed with significant gains and European markets have jumped by at least 1% in early trading.

U.S. stock futures were also surging by more than 1%.

"The move by the Bank of Japan was not only unexpected, but shows the divergence between the major central banks around the globe as the Federal Reserve has just ended monetary stimulus and the Bank of Japan is speeding up the printing presses," said Angus Campbell, a senior market analyst at FxPro.

Related: Stocks give investors a big October treat

2. Stock market movers -- Starbucks, GoPro, Citigroup: Shares in Starbucks (SBUX) are taking a tumble -- down by about 3% premarket -- after the company said it expects profits will fall short of expectations during the next three months.

Shares in GoPro (GPRO) are surging by about 15% after the company reported a better-than-expected third quarter and issued an upbeat forecast for its business.

Meanwhile, Citigroup (C) shares are off by about 1.5% premarket after the company said it had to revise its third quarter earnings. The bank said profit was $600 million lower than previously stated due to higher-than-expected legal costs.

Related: CNNMoney's Tech30

3. Earnings: There are plenty of earnings to watch Friday. Anheuser-Busch InBev (AHBIF), Chevron (CVX), Clorox (CLX), and Exxon Mobil (XOM) will report earnings before the opening bell.

Overnight, Sony (SNE) reported a second quarter net loss of $1.2 billion, and the company confirmed it's on track to lose a staggering $2.1 billion this fiscal year. Shares edged higher, but missed the rally that other Japanese stocks enjoyed.

4. Economics: The Bureau of Economic Analysis will post monthly personal income and spending numbers at 8:30 a.m. ET.

The University of Michigan will report the final version of its monthly consumer sentiment index at 9:55 a.m. ET.

5. Thursday market recap: U.S. stocks closed higher Thursday. The Dow gained 221 points. The S&P 500 closed 0.6% higher and the Nasdaq moved up by 0.4%.

First Published: October 31, 2014: 6:08 AM ET

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