Italy political drama jolts markets

Italian Prime Minister Enrico Letta is battling to get his government and economic program back on track after Silvio Berlusconi withdrew his support for the coalition.

LONDON (CNNMoney)

Silvio Berlusconi withdrew his support for a grand coalition led by Prime Minister Enrico Letta, just a week before a parliamentary committee was due to vote on expelling the convicted fraudster from the Senate.

Milan's benchmark index fell 1.8%, and the yield on Italy's 10-year bonds rose 18 basis points to 4.6%. That is up from around 3.9% when Letta took office in April but far from the more than 7% during the peak of the eurozone debt crisis in 2011.

Other European markets fell by about 1% as a U.S. government shutdown loomed. The dollar was a shade firmer against the euro.

Related: Stocks weak as U.S. shutdown looms

Political instability is nothing new in Italy -- governments tend to last little more than a year on average.

But a prolonged period of deadlock could prevent agreement on a budget for 2014 and delay reforms needed to keep the eurozone's third largest economy on track to meet EU-mandated borrowing targets.

Letta has scheduled a vote of confidence for Wednesday and hopes to persuade disgruntled members of Berlusconi's party and other senators to back him. Failure would raise the chance of a new election and with it the risk of months of political stalemate just as Italy, and the eurozone, look to secure a recovery from recession.

"Snap elections would be the worst scenario for confidence," noted Silvio Peruzzo, economist at Nomura.

Italy's economy is showing signs of stabilizing after nearly two years of recession. Tough austerity measures have helped produce a primary budget surplus and a wide-ranging program of structural reforms is beginning to bear fruit.

Related: European IPOs stage a comeback

But growth next year will be only a sluggish 0.7% and the country's debt burden -- already above 130% of GDP -- will continue to rise, according to International Monetary Fund forecasts.

"To sustain recovery and revive growth, Italy urgently needs further structural and fiscal reform," Kenneth Kang, assistant director for Europe at the IMF, told reporters Friday.

Without reform, the recovery will remain stuck in low gear making it much harder to tackle record unemployment of 12% and sustain the budget surpluses need to halt the rise in the country's €2 trillion debt mountain.

The economy was brought to the brink of collapse in late 2011, when the cost of servicing that debt climbed to unsustainable levels.

That crisis ushered in a technocrat government led by Mario Monti, who introduced a series of tax increases and spending cuts to restore market credibility, then further bolstered by the European Central Bank's pledge to buy eurozone government bonds in return for reforms.

First Published: September 30, 2013: 9:39 AM ET

21.29 | 0 komentar | Read More

Not all Obamacare exchanges will open Oct. 1

Not all of the Obamacare exchanges will be fully operational on Oct. 1.

NEW YORK (CNNMoney)

Residents and small business owners in certain states will not be able to fully sign up for a policy online in October because technical glitches have put enrollment on hold temporarily or forced state officials to implement old-fashioned work-arounds.

But state and federal officials stress that these delays will not have a major impact on Americans because coverage doesn't actually begin until January 1. As long as residents sign up by December 15, they'll be covered starting in 2014.

The District of Columbia was one of the latest to announce a hiccup. The district last week said that residents eligible for Medicaid or federal subsidies will not be able to enroll in a policy until November, giving officials another month to work out bugs that have been producing high error rates during testing.

Some features of the D.C. Health Link will operate next month, said Richard Sorian, exchange spokesman. Residents of the nation's capital will be able to set up a personal account and compare the 34 policies that will be available in 2014. They can use a calculator to estimate the size of their subsidy. And they can enroll if they earn more than 400% of the poverty line -- $45,960 for an individual and $94,200 for a family of four --and don't qualify for government assistance.

Those eligible for Medicaid or subsidies will be notified when their applications can be completed.

Related: I'm signing up for Obamacare

Meanwhile, small business owners in D.C. will find their exchanges are fully operational, Sorian said. They will be able to browse and enroll in one of 267 policies starting Tuesday.

But entrepreneurs in the 35 exchanges being partly or fully run by the federal government won't be able to complete their enrollment online until November 1, the Department of Health and Human Services announced Thursday. They will be able to look at the plans offered in their area online and enroll via fax or by mail. Businesses won't know the amount of their federal tax credits -- and thus their exact premium cost -- until November.

Senior administration officials said the government is delaying online enrollment because it wants to make sure the technology is working properly.

Getting both the individual and small business exchanges up and running for October 1 has been a huge technological lift for state and federal governments. Not only do the exchanges have to communicate with insurers' computers so participants can compare plans, but they have to connect to the Internal Revenue Service to verify Medicaid and subsidy eligibility, and to the Department of Homeland Security to confirm citizenship status.

At least two other states -- Colorado and Oregon -- won't have online enrollment fully available for a few weeks. In Colorado, residents who are eligible for Medicaid or a subsidy will have to call a customer service center to complete the final steps of the online application during October. The small business exchange will be fully operational.

And Oregon residents will have to apply through a paper application, over the phone or through an insurance agent or non-profit counselor for the first two weeks of October, after which they can apply online. Small businesses will be able to start applying using the same methods on October 15, and can't enroll online until November.

Oregon set up these "soft launches," as it is calling them, to make sure trained personnel are involved to catch any initial technical glitches, said Rocky King, executive director of Cover Oregon.

"It's not a delay, it's a stage," he said. "The complexity of the system is just amazing."

First Published: September 30, 2013: 9:49 AM ET

21.29 | 0 komentar | Read More

Washington spooks stocks

Click chart for more markets data.

NEW YORK (CNNMoney)

The Dow Jones Industrial Average, the S&P 500 and the Nasdaq all dropped nearly 1% in early trading Monday.

More selling ahead? Despite Monday's slide, the three major indexes are still up between 15% and 24% for the year. The Dow and S&P 500 are up over 3% in September alone, and hit record highs just two weeks ago. All three indexes are up for the quarter, led by the Nasdaq, which has risen 11%.

But some strategists are predicting that stocks should fall further if the government closes up shop -- even if it's only a brief shutdown.

Related: 8 things you need to know about the debt ceiling

Citigroup analyst Tobias Levkovich said that the "rancorous debate in Washington" coupled with slowing economic growth could push the S&P 500 down to 1600, a drop of more than 5% from its current level.

Levkovich and several other analysts also expect companies to cut their 2014 profit forecasts when they report third quarter earnings over the next few weeks. That could be another wake up call for investors, who had been bullish all year despite some big risks.

Related: Fear & Greed Index shows investors are becoming increasingly fearful

The shutdown isn't the only thing in Washington that investors are worried about. Stocks have pulled back recently as the U.S. gets closer to hitting the debt ceiling. If Congress fails to increase the debt limit, the U.S. government won't be able to pay all of its bills later this month.

Related: Obamacare and biotech boost health care stocks

What's moving: Shares of Apple (AAPL, Fortune 500) dropped more than 1% ahead of CEO Tim Cook's anticipated lunch meeting with activist investor Carl Icahn.

Social media stocks Facebook (FB), Zynga (ZNGA), and LinkedIn (LNKD) fell Monday. There is increased chatter that Twitter may file its financial statements with the Securities and Exchange Commission this week, although it's not clear if that will happen if the government shuts down.

Some investors believe that Twitter's upcoming initial public offering could steal some momentum from other social media stocks since it is assumed that Twitter's growth will be very strong.

J.C. Penney (JCP, Fortune 500) dipped sharply Monday morning before bouncing back. The retailer, which has been hemorrhaging money, announced last Friday that it had raised roughly $810 million through a public offering. Shares are trading near lows not hit since late 2000.

Related: How the government will shut down

Government shutdown hits world markets: European markets were all down in afternoon trading on fears over what the U.S. shutdown could mean for economies in Europe. Most Asian markets closed with losses, though the Shanghai Composite moved higher. China launched a free trade zone in Shanghai on Sunday, an experiment in promoting trade and expanding foreign investments in China.

First Published: September 30, 2013: 9:55 AM ET

21.29 | 0 komentar | Read More

European IPOs stage a comeback

The European IPO market is recovering from 2012, but is not nearly as robust as it was before the eurozone crisis hit.

LONDON (CNNMoney)

According to data from Dealogic, new listings on European stock exchanges this year have raised $16.2 billion, nearly triple the amount raised in the same period last year.

The revival comes as concerns about the break-up of the eurozone have all but disappeared and equity markets have rallied.

U.S. investors are slowly rebuilding their exposure to Europe, after previously fleeing the region when the sovereign debt crisis was raging. And company profits are rising as Europe emerges from recession.

"There's a fundamental earnings recovery story in Europe that U.S. investors find quite compelling," said Gareth McCartney, a London-based managing director at UBS (UBS).

McCartney points out that the IPO market in the U.K. has been particularly strong, held up by issuers in the property and insurance markets.

Related: The American IPO market is on fire!

But it's not time to pop the champagne quite yet -- European IPO activity still hasn't hit the levels seen in 2010 and 2011 when over $30 billion was raised each year.

Looking ahead to the rest of the year and into 2014, the European IPO market is expected to maintain its upward momentum, even if the volumes from a couple of years ago remain out of reach.

"The pipeline of potential IPOs remains very healthy and continues to grow. We'll see a continued recovery of the European market into 2014," said McCartney.

Leon Saunders Calvert, head of banking and research at Thomson Reuters, said Europe is the only region expected to see an increase in offerings over the next few months as activity in U.S. and Asian markets slows.

"There will be continued slow growth in the European IPO market. But that growth comes off a ridiculously bare market in 2012," said Saunders Calvert.

Among the high profile listings expected for the rest of the year, Britain's Royal Mail is set to be privatized in a deal expected to value the company at roughly £3 billion ($5 billion).

Earlier this year, real estate firm LEG Immobilien raised roughly $1.6 billion when it listed in Frankfurt. This was one of the largest IPOs in the world this year.

Related: Alibaba drops plans for IPO in Hong Kong

There have been 578 IPOs around the world so far this year, raising nearly $100 billion, according to Dealogic.

The New York Stock Exchange has grabbed the biggest share, according to Thomson Reuters data. It played host to 69 IPOs, representing 27% of all cash raised. The tech-heavy Nasdaq came in second place, with the same number of listings but a smaller amount of money raised.

First Published: September 30, 2013: 5:28 AM ET

19.33 | 0 komentar | Read More

Is Obamacare a jobs killer?

NEW YORK (CNNMoney)

Critics claims the Affordable Care Act -- a.k.a. Obamacare -- will cost the economy jobs. But economists' views are mixed on the issue.

Nine out of 14 economists polled by CNNMoney said businesses are putting off hiring in light of health care reform, which stipulates that employers with 50 or more workers provide affordable health insurance starting in 2015.

And CNNMoney has heard anecdotal stories from small businesses owners that healthcare reform is causing them to give employees fewer hours.

But there is also reason to believe the job killing criticism could be overblown.

As of 2010, 97% of small businesses had fewer than 50 employees, according to the U.S. Census. That means Obamacare's employer mandate applies only to 3% of America's small businesses. Of companies with more than 50 workers, 96% already offer health plans, government data shows.

The ADP jobs survey -- one of the largest surveys of private employers -- shows that small businesses are still hiring strong.

"There is little evidence that fiscal austerity and Health Care Reform have had a significant impact on the job market," said Mark Zandi, chief economist of Moody's Analytics and a collaborator on the ADP report, in a press release with the August survey.

The case for hurting job growth: Uncertainty was the big reason economists gave for why employers might not be hiring -- uncertainty over how much it's going to cost to insure additional workers, and how much health care premiums for existing employees might go up.

"The ambiguity over the law's actual impact on health care premiums imparts uncertainty over where true labor costs will be going," said Sean Snaith, director of the Institute for Economic Competitiveness at the University of Central Florida. "It is understandable that businesses would choose to delay any hiring that is not absolutely essential rather than running into that fog."

A few of the economists predicted the legislation would cost the economy around 10,000 jobs per month.

Related: See the Obamacare premiums

Several also mentioned that Obamacare is one of many policy uncertainties out of Washington that's acting to suppress job growth -- the others primarily relating to the seemingly endless talk of a government shutdown.

Other economists said businesses are bound to hire less because the cost of each employee will likely go up.

"Any time you attach an extra cost to labor you will cause it to be less fully utilized," said Robert Brusca, chief economist at Fact and Opinion Economics, a Manhattan consultancy.

Related: The overblown Obamacare myth about small business

The case against: Economists saying Obamacare is not having a meaningful impact on jobs tend to argue that hiring is not driven by labor costs, but rather demand for goods.

"Work still needs to be done," said David Wyss, a fellow at Brown University. "But it may be biasing toward more part-timers."

Others noted that most people already have work-provided health insurance, and many small companies are exempt from the law because they employ fewer that 50 people.

"Not enough companies are negatively impacted, and those that are are adjusting in other ways," said Zandi.

One economist speculated that the health care law will boost jobs, as all those exchanges will need people to run them.

First Published: September 30, 2013: 7:43 AM ET

19.33 | 0 komentar | Read More

Mark Cuban insider trading trial set to start

Mark Cuban's insider trading trial is finally set to start five years after the SEC first filed charges against him.

NEW YORK (CNNMoney)

The controversial owner of the NBA's Dallas Mavericks and a star of the reality television show "Shark Tank" is accused of dumping his whole stake in the company Mamma.com in 2004 before details of a pending stock offering were announced, avoiding a $750,000 loss on the holding.

Mamma.com, a search software company, has since changed its name to Copernic and been purchased by Constellation Software (CNSWF).

Cuban was the largest individual shareholder in Mamma.com at the time he was contacted by the company's CEO and told the company intended to sell more shares to raise funds.

According to court documents, Cuban became angry and said he opposed the sale because it would dilute his 6% stake. But he then said "Well, now I'm screwed. I can't sell." However, Cuban sold his entire stake of 600,000 shares of the company immediately after getting more details of the planned stock sale from the company's financial advisers.

Related: The gray art of not quite insider trading

Cuban argued in court that while he was prohibited from disclosing the plans for a stock sale by the company, he was not prohibited from trading his shares on the information. In July 2009, U.S. District Court Judge Sidney Fitzwater granted Cuban's motion to dismiss the case. But a court of appeals decision reinstated the case. Fitzwater will oversee the jury trial set to start Monday.

The case against Cuban is a civil case, not a criminal case. He can be forced to pay a fine, which he is used to doing. The NBA has fined him an estimated $1.8 million through a course of 19 infractions during his career, according to Bleacher Report, including a $100,000 fine once for telling CNNMoney of his interest in signing LeBron James a month before the superstar formally became a free agent.

Cuban made most of his fortune when he sold the Internet company he started, Broadcast.com, to Yahoo for $5.7 billion in 1999. Yahoo ended up shuttering the Internet broadcaster just a few years later.

The looming federal government shutdown won't immediately halt federal court cases, as the courts have enough funds to operate for at least 10 days. The SEC is one of the agencies that will be subject to the shutdown, although certain employees will be exempted and stay on the job.

First Published: September 30, 2013: 8:22 AM ET

19.33 | 0 komentar | Read More

Wells Fargo: A bargain if you're bullish on housing

Wells Fargo has become the leading bank in home mortgages.

(Money Magazine)

The nation's fourth-largest bank is a powerhouse in mortgages, thanks to the fact it ended up with fewer toxic assets than other big banks, and was able to snap up another large mortgage player, Wachovia.

Refis as a % of mortgage applications

Source: Wells Fargo

So is Wells, whose stock price has already risen 64% in two years, a good buy now that home prices are rising? That depends on what's driving the rebound: Is it just low rates -- now rising -- or a healthier economy too?

The housing heavyweight

Home prices are up more than 10% this year, and many signs point to a continued recovery. Builders are hiring more workers, sales of foreclosures are falling, and inventory has been getting tighter in markets from Southern California to Washington, D.C.

"[Wells] has a lot to gain from a housing recovery," says Morningstar analyst James Sinegal. It originates more than 22% of home mortgages -- double the amount of the second-biggest lender. Its balance sheet is getting healthier too. Charge-offs, or loans Wells considers uncollectible, are at their lowest since 2006.

Related: Are we still heading toward 5% mortgages?

Wells increased its dividend 20% in April to $1.20, and Edward Jones analyst Shannon Stemm expects the payout to grow 7% a year into 2018.

Rising rates hit refis

After sinking to historic lows, interest rates are rising as investors anticipate higher growth because the Federal Reserve is signaling it will slow down its economic stimulus effort, a bond-buying program known as quantitative easing.

The good news: Higher rates mean Wells' fee stream from mortgages it services becomes more predictable as fewer borrowers refinance, says S&P Capital IQ analyst Erik Oja.

The flip side is that Wells is losing a big chunk of its mortgage originations. If the economy strengthens, more home sales will make up for some of that lost refi revenue, but Christopher Mutascio, an analyst at Keefe, Bruyette & Woods, thinks it won't close the gap for Wells.

Leaning in to Wall Street

Another increasingly important part of Wells Fargo's success is its asset management business. In the second quarter of 2013, net income from managing money rose 27% compared with 2012. The stock market's performance -- the S&P 500 (SPX) returned 16% in the past year -- has bolstered results. But Wells "may not be able to sustain this momentum in a tougher equity market," Sinegal wrote in a recent report. Mutascio worries the end of quantitative easing could trigger that tough market.

Related: Wells Fargo lays off 2,300 employees

With a price/earnings ratio of 11 based on 2014 expected earnings, Wells' shares are a bit cheaper than other banks' stocks, but it has more riding on the performance of both real estate and Wall Street. That makes Wells Fargo a buy only for bulls.

First Published: September 27, 2013: 4:11 PM ET

21.29 | 0 komentar | Read More

ExxonMobil to extend benefits to same-sex couples

ExxonMobil announced Friday it will extend benefits to same-sex couples.

NEW YORK (CNNMoney)

Beginning Oct. 1, ExxonMobil employees in legal same-sex marriages will be eligible to receive health insurance coverage for their spouses, the oil giant said in a statement.

The company's decision was less of a change of heart than it was a technical update stemming from this summer's Supreme Court decision to recognize same-sex marriages for federal purposes.

Related: Pasta maker Barilla under fire for anti-gay comments

"The decision is consistent with the direction of most U.S. government agencies," ExxonMobil said in the statement. "We have made no change in the definition of eligibility for our U.S. benefit plans. Spousal eligibility in our U.S. benefit plans has been and continues to be governed by the federal definition of marriage and spouse."

ExxonMobil (XOM, Fortune 500) has long been criticized for having anti-LGBT policies. It currently has a lawsuit pending against it for discriminating against a lesbian applicant, and it received the lowest "corporate equality" score of any U.S. company in last year's Human Rights Campaign rankings.

Related: Same-sex benefits at conservative Wal-Mart: What gives?

Friday's announcement was therefore welcomed by gay rights groups.

"After years of stubbornly refusing, we commend Exxon for joining the majority of the Fortune 500 business leaders that already treat gay and lesbian married couples equally under employee benefit plans," Tico Almeida, president of Freedom to Work, said in a statement. "It's a shame Exxon waited until after the Labor Department issued official guidance explaining that their old policy does not comply with American law, and now it's time to move forward."

A growing number of companies have been updating their policies to become more LGBT-friendly. This summer, Walmart (WMT, Fortune 500) announced it will offer benefits to same-sex and domestic partners. As of the beginning of this year, 89% of U.S. companies provide health benefits to same-sex couples, according to the Human Rights Campaign.

But other companies continue to get bad press from the LGBT community. Just Thursday, pasta maker Barilla came under fire for comments its CEO made about refusing to feature same-sex couples in the company's commercials. The remarks sparked a firestorm on Twitter and led to a boycott of the company's products.

First Published: September 27, 2013: 4:41 PM ET

21.29 | 0 komentar | Read More

Airbnb wins legal victory in New York City

Users list spaces for rent on Airbnb.

NEW YORK (CNNMoney)

Airbnb offers a platform for people to rent out their homes or apartments to travelers. New York's Environmental Control Board ruled Thursday that Airbnb user Nigel Warren was permitted under city housing laws to rent out a portion of the apartment through the service because his roommate was present at the time.

Warren's landlord had been facing a $2,400 fine following an earlier ruling.

The decision is a significant one for Airbnb, which has been frustrated in New York by a law stating that residents can't rent out all or part of a property for fewer than 30 days. Airbnb has argued that the law is meant to crack down on landlords who buy residential buildings and run hotels out of them, not on individual tenants.

Related: Hey, taxi company, you talkin' to me?

Airbnb called the decision "a victory for the sharing economy and the countless New Yorkers who make the Airbnb community vibrant and strong."

"This episode highlights how complicated the New York law is, and it took far too long for Nigel to be vindicated," the company said in a blog post. "That is why we are continuing our work to clarify the law and ensure New Yorkers can share their homes and their city with travelers from around the world."

Airbnb filed motions in support of Warren, though the site warns users in its terms of service that they're the ones on the hook if they fall into legal trouble.

The New York City Buildings Department did not respond to a request for comment.

First Published: September 27, 2013: 6:59 PM ET

21.29 | 0 komentar | Read More

Wells Fargo: A bargain if you're bullish on housing

Wells Fargo has become the leading bank in home mortgages.

(Money Magazine)

The nation's fourth-largest bank is a powerhouse in mortgages, thanks to the fact it ended up with fewer toxic assets than other big banks, and was able to snap up another large mortgage player, Wachovia.

Refis as a % of mortgage applications

Source: Wells Fargo

So is Wells, whose stock price has already risen 64% in two years, a good buy now that home prices are rising? That depends on what's driving the rebound: Is it just low rates -- now rising -- or a healthier economy too?

The housing heavyweight

Home prices are up more than 10% this year, and many signs point to a continued recovery. Builders are hiring more workers, sales of foreclosures are falling, and inventory has been getting tighter in markets from Southern California to Washington, D.C.

"[Wells] has a lot to gain from a housing recovery," says Morningstar analyst James Sinegal. It originates more than 22% of home mortgages -- double the amount of the second-biggest lender. Its balance sheet is getting healthier too. Charge-offs, or loans Wells considers uncollectible, are at their lowest since 2006.

Related: Are we still heading toward 5% mortgages?

Wells increased its dividend 20% in April to $1.20, and Edward Jones analyst Shannon Stemm expects the payout to grow 7% a year into 2018.

Rising rates hit refis

After sinking to historic lows, interest rates are rising as investors anticipate higher growth because the Federal Reserve is signaling it will slow down its economic stimulus effort, a bond-buying program known as quantitative easing.

The good news: Higher rates mean Wells' fee stream from mortgages it services becomes more predictable as fewer borrowers refinance, says S&P Capital IQ analyst Erik Oja.

The flip side is that Wells is losing a big chunk of its mortgage originations. If the economy strengthens, more home sales will make up for some of that lost refi revenue, but Christopher Mutascio, an analyst at Keefe, Bruyette & Woods, thinks it won't close the gap for Wells.

Leaning in to Wall Street

Another increasingly important part of Wells Fargo's success is its asset management business. In the second quarter of 2013, net income from managing money rose 27% compared with 2012. The stock market's performance -- the S&P 500 (SPX) returned 16% in the past year -- has bolstered results. But Wells "may not be able to sustain this momentum in a tougher equity market," Sinegal wrote in a recent report. Mutascio worries the end of quantitative easing could trigger that tough market.

Related: Wells Fargo lays off 2,300 employees

With a price/earnings ratio of 11 based on 2014 expected earnings, Wells' shares are a bit cheaper than other banks' stocks, but it has more riding on the performance of both real estate and Wall Street. That makes Wells Fargo a buy only for bulls.

First Published: September 27, 2013: 4:11 PM ET

19.33 | 0 komentar | Read More

ExxonMobil to extend benefits to same-sex couples

ExxonMobil announced Friday it will extend benefits to same-sex couples.

NEW YORK (CNNMoney)

Beginning Oct. 1, ExxonMobil employees in legal same-sex marriages will be eligible to receive health insurance coverage for their spouses, the oil giant said in a statement.

The company's decision was less of a change of heart than it was a technical update stemming from this summer's Supreme Court decision to recognize same-sex marriages for federal purposes.

Related: Pasta maker Barilla under fire for anti-gay comments

"The decision is consistent with the direction of most U.S. government agencies," ExxonMobil said in the statement. "We have made no change in the definition of eligibility for our U.S. benefit plans. Spousal eligibility in our U.S. benefit plans has been and continues to be governed by the federal definition of marriage and spouse."

ExxonMobil (XOM, Fortune 500) has long been criticized for having anti-LGBT policies. It currently has a lawsuit pending against it for discriminating against a lesbian applicant, and it received the lowest "corporate equality" score of any U.S. company in last year's Human Rights Campaign rankings.

Related: Same-sex benefits at conservative Wal-Mart: What gives?

Friday's announcement was therefore welcomed by gay rights groups.

"After years of stubbornly refusing, we commend Exxon for joining the majority of the Fortune 500 business leaders that already treat gay and lesbian married couples equally under employee benefit plans," Tico Almeida, president of Freedom to Work, said in a statement. "It's a shame Exxon waited until after the Labor Department issued official guidance explaining that their old policy does not comply with American law, and now it's time to move forward."

A growing number of companies have been updating their policies to become more LGBT-friendly. This summer, Walmart (WMT, Fortune 500) announced it will offer benefits to same-sex and domestic partners. As of the beginning of this year, 89% of U.S. companies provide health benefits to same-sex couples, according to the Human Rights Campaign.

But other companies continue to get bad press from the LGBT community. Just Thursday, pasta maker Barilla came under fire for comments its CEO made about refusing to feature same-sex couples in the company's commercials. The remarks sparked a firestorm on Twitter and led to a boycott of the company's products.

First Published: September 27, 2013: 4:41 PM ET

19.33 | 0 komentar | Read More

Airbnb wins legal victory in New York City

Users list spaces for rent on Airbnb.

NEW YORK (CNNMoney)

Airbnb offers a platform for people to rent out their homes or apartments to travelers. New York's Environmental Control Board ruled Thursday that Airbnb user Nigel Warren was permitted under city housing laws to rent out a portion of the apartment through the service because his roommate was present at the time.

Warren's landlord had been facing a $2,400 fine following an earlier ruling.

The decision is a significant one for Airbnb, which has been frustrated in New York by a law stating that residents can't rent out all or part of a property for fewer than 30 days. Airbnb has argued that the law is meant to crack down on landlords who buy residential buildings and run hotels out of them, not on individual tenants.

Related: Hey, taxi company, you talkin' to me?

Airbnb called the decision "a victory for the sharing economy and the countless New Yorkers who make the Airbnb community vibrant and strong."

"This episode highlights how complicated the New York law is, and it took far too long for Nigel to be vindicated," the company said in a blog post. "That is why we are continuing our work to clarify the law and ensure New Yorkers can share their homes and their city with travelers from around the world."

Airbnb filed motions in support of Warren, though the site warns users in its terms of service that they're the ones on the hook if they fall into legal trouble.

The New York City Buildings Department did not respond to a request for comment.

First Published: September 27, 2013: 6:59 PM ET

19.33 | 0 komentar | Read More

Airbnb wins legal victory in New York City

Users list spaces for rent on Airbnb.

NEW YORK (CNNMoney)

Airbnb offers a platform for people to rent out their homes or apartments to travelers. New York's Environmental Control Board ruled Thursday that Airbnb user Nigel Warren was permitted under city housing laws to rent out a portion of the apartment through the service because his roommate was present at the time.

Warren's landlord had been facing a $2,400 fine following an earlier ruling.

The decision is a significant one for Airbnb, which has been frustrated in New York by a law stating that residents can't rent out all or part of a property for fewer than 30 days. Airbnb has argued that the law is meant to crack down on landlords who buy residential buildings and run hotels out of them, not on individual tenants.

Related: Hey, taxi company, you talkin' to me?

Airbnb called the decision "a victory for the sharing economy and the countless New Yorkers who make the Airbnb community vibrant and strong."

"This episode highlights how complicated the New York law is, and it took far too long for Nigel to be vindicated," the company said in a blog post. "That is why we are continuing our work to clarify the law and ensure New Yorkers can share their homes and their city with travelers from around the world."

Airbnb filed motions in support of Warren, though the site warns users in its terms of service that they're the ones on the hook if they fall into legal trouble.

The New York City Buildings Department did not respond to a request for comment.

First Published: September 27, 2013: 6:59 PM ET

21.29 | 0 komentar | Read More

Wells Fargo: A bargain if you're bullish on housing

Wells Fargo has become the leading bank in home mortgages.

(Money Magazine)

The nation's fourth-largest bank is a powerhouse in mortgages, thanks to the fact it ended up with fewer toxic assets than other big banks, and was able to snap up another large mortgage player, Wachovia.

Refis as a % of mortgage applications

Source: Wells Fargo

So is Wells, whose stock price has already risen 64% in two years, a good buy now that home prices are rising? That depends on what's driving the rebound: Is it just low rates -- now rising -- or a healthier economy too?

The housing heavyweight

Home prices are up more than 10% this year, and many signs point to a continued recovery. Builders are hiring more workers, sales of foreclosures are falling, and inventory has been getting tighter in markets from Southern California to Washington, D.C.

"[Wells] has a lot to gain from a housing recovery," says Morningstar analyst James Sinegal. It originates more than 22% of home mortgages -- double the amount of the second-biggest lender. Its balance sheet is getting healthier too. Charge-offs, or loans Wells considers uncollectible, are at their lowest since 2006.

Related: Are we still heading toward 5% mortgages?

Wells increased its dividend 20% in April to $1.20, and Edward Jones analyst Shannon Stemm expects the payout to grow 7% a year into 2018.

Rising rates hit refis

After sinking to historic lows, interest rates are rising as investors anticipate higher growth because the Federal Reserve is signaling it will slow down its economic stimulus effort, a bond-buying program known as quantitative easing.

The good news: Higher rates mean Wells' fee stream from mortgages it services becomes more predictable as fewer borrowers refinance, says S&P Capital IQ analyst Erik Oja.

The flip side is that Wells is losing a big chunk of its mortgage originations. If the economy strengthens, more home sales will make up for some of that lost refi revenue, but Christopher Mutascio, an analyst at Keefe, Bruyette & Woods, thinks it won't close the gap for Wells.

Leaning in to Wall Street

Another increasingly important part of Wells Fargo's success is its asset management business. In the second quarter of 2013, net income from managing money rose 27% compared with 2012. The stock market's performance -- the S&P 500 (SPX) returned 16% in the past year -- has bolstered results. But Wells "may not be able to sustain this momentum in a tougher equity market," Sinegal wrote in a recent report. Mutascio worries the end of quantitative easing could trigger that tough market.

Related: Wells Fargo lays off 2,300 employees

With a price/earnings ratio of 11 based on 2014 expected earnings, Wells' shares are a bit cheaper than other banks' stocks, but it has more riding on the performance of both real estate and Wall Street. That makes Wells Fargo a buy only for bulls.

First Published: September 27, 2013: 4:11 PM ET

21.29 | 0 komentar | Read More

ExxonMobil to extend benefits to same-sex couples

ExxonMobil announced Friday it will extend benefits to same-sex couples.

NEW YORK (CNNMoney)

Beginning Oct. 1, ExxonMobil employees in legal same-sex marriages will be eligible to receive health insurance coverage for their spouses, the oil giant said in a statement.

The company's decision was less of a change of heart than it was a technical update stemming from this summer's Supreme Court decision to recognize same-sex marriages for federal purposes.

Related: Pasta maker Barilla under fire for anti-gay comments

"The decision is consistent with the direction of most U.S. government agencies," ExxonMobil said in the statement. "We have made no change in the definition of eligibility for our U.S. benefit plans. Spousal eligibility in our U.S. benefit plans has been and continues to be governed by the federal definition of marriage and spouse."

ExxonMobil (XOM, Fortune 500) has long been criticized for having anti-LGBT policies. It currently has a lawsuit pending against it for discriminating against a lesbian applicant, and it received the lowest "corporate equality" score of any U.S. company in last year's Human Rights Campaign rankings.

Related: Same-sex benefits at conservative Wal-Mart: What gives?

Friday's announcement was therefore welcomed by gay rights groups.

"After years of stubbornly refusing, we commend Exxon for joining the majority of the Fortune 500 business leaders that already treat gay and lesbian married couples equally under employee benefit plans," Tico Almeida, president of Freedom to Work, said in a statement. "It's a shame Exxon waited until after the Labor Department issued official guidance explaining that their old policy does not comply with American law, and now it's time to move forward."

A growing number of companies have been updating their policies to become more LGBT-friendly. This summer, Walmart (WMT, Fortune 500) announced it will offer benefits to same-sex and domestic partners. As of the beginning of this year, 89% of U.S. companies provide health benefits to same-sex couples, according to the Human Rights Campaign.

But other companies continue to get bad press from the LGBT community. Just Thursday, pasta maker Barilla came under fire for comments its CEO made about refusing to feature same-sex couples in the company's commercials. The remarks sparked a firestorm on Twitter and led to a boycott of the company's products.

First Published: September 27, 2013: 4:41 PM ET

21.29 | 0 komentar | Read More

Wells Fargo: A bargain if you're bullish on housing

Wells Fargo has become the leading bank in home mortgages.

(Money Magazine)

The nation's fourth-largest bank is a powerhouse in mortgages, thanks to the fact it ended up with fewer toxic assets than other big banks, and was able to snap up another large mortgage player, Wachovia.

Refis as a % of mortgage applications

Source: Wells Fargo

So is Wells, whose stock price has already risen 64% in two years, a good buy now that home prices are rising? That depends on what's driving the rebound: Is it just low rates -- now rising -- or a healthier economy too?

The housing heavyweight

Home prices are up more than 10% this year, and many signs point to a continued recovery. Builders are hiring more workers, sales of foreclosures are falling, and inventory has been getting tighter in markets from Southern California to Washington, D.C.

"[Wells] has a lot to gain from a housing recovery," says Morningstar analyst James Sinegal. It originates more than 22% of home mortgages -- double the amount of the second-biggest lender. Its balance sheet is getting healthier too. Charge-offs, or loans Wells considers uncollectible, are at their lowest since 2006.

Related: Are we still heading toward 5% mortgages?

Wells increased its dividend 20% in April to $1.20, and Edward Jones analyst Shannon Stemm expects the payout to grow 7% a year into 2018.

Rising rates hit refis

After sinking to historic lows, interest rates are rising as investors anticipate higher growth because the Federal Reserve is signaling it will slow down its economic stimulus effort, a bond-buying program known as quantitative easing.

The good news: Higher rates mean Wells' fee stream from mortgages it services becomes more predictable as fewer borrowers refinance, says S&P Capital IQ analyst Erik Oja.

The flip side is that Wells is losing a big chunk of its mortgage originations. If the economy strengthens, more home sales will make up for some of that lost refi revenue, but Christopher Mutascio, an analyst at Keefe, Bruyette & Woods, thinks it won't close the gap for Wells.

Leaning in to Wall Street

Another increasingly important part of Wells Fargo's success is its asset management business. In the second quarter of 2013, net income from managing money rose 27% compared with 2012. The stock market's performance -- the S&P 500 (SPX) returned 16% in the past year -- has bolstered results. But Wells "may not be able to sustain this momentum in a tougher equity market," Sinegal wrote in a recent report. Mutascio worries the end of quantitative easing could trigger that tough market.

Related: Wells Fargo lays off 2,300 employees

With a price/earnings ratio of 11 based on 2014 expected earnings, Wells' shares are a bit cheaper than other banks' stocks, but it has more riding on the performance of both real estate and Wall Street. That makes Wells Fargo a buy only for bulls.

First Published: September 27, 2013: 4:11 PM ET

19.33 | 0 komentar | Read More

ExxonMobil to extend benefits to same-sex couples

ExxonMobil announced Friday it will extend benefits to same-sex couples.

NEW YORK (CNNMoney)

Beginning Oct. 1, ExxonMobil employees in legal same-sex marriages will be eligible to receive health insurance coverage for their spouses, the oil giant said in a statement.

The company's decision was less of a change of heart than it was a technical update stemming from this summer's Supreme Court decision to recognize same-sex marriages for federal purposes.

Related: Pasta maker Barilla under fire for anti-gay comments

"The decision is consistent with the direction of most U.S. government agencies," ExxonMobil said in the statement. "We have made no change in the definition of eligibility for our U.S. benefit plans. Spousal eligibility in our U.S. benefit plans has been and continues to be governed by the federal definition of marriage and spouse."

ExxonMobil (XOM, Fortune 500) has long been criticized for having anti-LGBT policies. It currently has a lawsuit pending against it for discriminating against a lesbian applicant, and it received the lowest "corporate equality" score of any U.S. company in last year's Human Rights Campaign rankings.

Related: Same-sex benefits at conservative Wal-Mart: What gives?

Friday's announcement was therefore welcomed by gay rights groups.

"After years of stubbornly refusing, we commend Exxon for joining the majority of the Fortune 500 business leaders that already treat gay and lesbian married couples equally under employee benefit plans," Tico Almeida, president of Freedom to Work, said in a statement. "It's a shame Exxon waited until after the Labor Department issued official guidance explaining that their old policy does not comply with American law, and now it's time to move forward."

A growing number of companies have been updating their policies to become more LGBT-friendly. This summer, Walmart (WMT, Fortune 500) announced it will offer benefits to same-sex and domestic partners. As of the beginning of this year, 89% of U.S. companies provide health benefits to same-sex couples, according to the Human Rights Campaign.

But other companies continue to get bad press from the LGBT community. Just Thursday, pasta maker Barilla came under fire for comments its CEO made about refusing to feature same-sex couples in the company's commercials. The remarks sparked a firestorm on Twitter and led to a boycott of the company's products.

First Published: September 27, 2013: 4:41 PM ET

19.33 | 0 komentar | Read More

Airbnb wins legal victory in New York City

Users list spaces for rent on Airbnb.

NEW YORK (CNNMoney)

Airbnb offers a platform for people to rent out their homes or apartments to travelers. New York's Environmental Control Board ruled Thursday that Airbnb user Nigel Warren was permitted under city housing laws to rent out a portion of the apartment through the service because his roommate was present at the time.

Warren's landlord had been facing a $2,400 fine following an earlier ruling.

The decision is a significant one for Airbnb, which has been frustrated in New York by a law stating that residents can't rent out all or part of a property for fewer than 30 days. Airbnb has argued that the law is meant to crack down on landlords who buy residential buildings and run hotels out of them, not on individual tenants.

Related: Hey, taxi company, you talkin' to me?

Airbnb called the decision "a victory for the sharing economy and the countless New Yorkers who make the Airbnb community vibrant and strong."

"This episode highlights how complicated the New York law is, and it took far too long for Nigel to be vindicated," the company said in a blog post. "That is why we are continuing our work to clarify the law and ensure New Yorkers can share their homes and their city with travelers from around the world."

Airbnb filed motions in support of Warren, though the site warns users in its terms of service that they're the ones on the hook if they fall into legal trouble.

The New York City Buildings Department did not respond to a request for comment.

First Published: September 27, 2013: 6:59 PM ET

19.33 | 0 komentar | Read More

Record London house prices stoke bubble fears

Fears of a housing bubble in London are growing as home prices climb to record highs.

LONDON (CNNMoney)

Official data shows the median gross wage in London last year was £30,471. That compares with a rise of £33,133 in the average price of homes in the U.K. capital over the past 12 months, according to figures released by mortgage lender Nationwide on Friday.

That means many Londoners have earned more on paper from the appreciation in the value of their homes than by going to work.

Prices in London are now 8% above their 2007 peak before the global financial crisis, which saw property values collapse by about 20% across the U.K.

The findings will fuel concerns that the U.K. may be heading for another property bubble, as low interest rates, improving economic sentiment, and aggressive government subsidies push prices higher.

And there are now signs that the government may be worried. Chancellor George Osborne has asked the Bank of England to review the "Help to Buy" home subsidy scheme on an annual basis, instead of original plans for a review every three years, a Treasury spokesperson said.

Related: British housing boom - or bubble?

Help to Buy, which aims to stimulate lending and support the economic recovery, began in April by giving buyers with 5% deposits interest-free loans for five years on newly-built homes. From January, the government is planning to extend the scheme to assist buyers purchasing existing properties worth up to £600,000.

The Bank of England will be able to recommend the government lower the scheme's price cap if it feels the need to take some heat out of London prices. Earlier this week, the bank's financial policy committee said it was monitoring "emerging vulnerabilities" in the housing market.

But prices across most of Britain are much lower -- and not rising as fast --- as in the capital. Prices across the U.K. now average £170,918, that's up 4.3% over the year.

Related: U.S. housing bubble fears

Wealthy investors from overseas are driving London property prices higher as they snap up prime locations, while local residents are also competing for real estate in Europe's financial capital.

The Bank of England recently pledged to keep interest rates at record low levels for years to come, which helps homeowners by keeping mortgage rates low.

But some experts are worried that once rates start rising and government subsidies expire, homeowners could start defaulting, leaving taxpayers liable for tens of billions of pounds of lending.

First Published: September 27, 2013: 9:29 AM ET

21.29 | 0 komentar | Read More

Investors pricing in last minute debt deal

Will the government shut down? Will the debt ceiling be raised? Investors don't seem too worried. They're tuning out the political drama.

NEW YORK (CNNMoney)

The market's response: Wake us up when the games are done.

"Investors are pricing in a last-minute solution," said J.P. Morgan global strategist Anastasia Amoroso. "We've seen this sequence of events before."

Many times in fact.

That appears to be the main reason why there is no sense of panic in the market.

Related: Never-ending charade of debt ceiling fights

While it's true that stocks fell for five straight days before snapping their losing streak on Thursday, the sell-off has been relatively mild. The three major U.S. market indexes are still up between 17% and 25% for the year.

Dan Arbess, who runs Perella Weinberg Partners' Xerion fund, says traders expect a resolution. But he added that "the climate looks possibly worse than ever this time."

And if Washington grows even more dysfunctional in the coming weeks, that may really rattle investors.

#YourEconomy: How will a government shutdown affect you?

"The longer this drama continues, the greater the risk to markets and the economic recovery," Arbess said.

For William Larkin, a fixed income portfolio manager at Cabot Money Management, the drama in Washington has caused him to move money from the bond market into cash, effectively keeping it on the sidelines until the budget issues are resolved.

Related: Debt ceiling cash crunch: Millions won't get paid

The deadlines: There are two key deadlines looming. The threat of a government shutdown on October 1st is decidedly less terrifying to investors.

It happened previously. On November 14, 1995, the government failed to pass a budget and shut down. After reopening on November 19 and failing to reach an agreement again, the shutdown resumed on December 16, 1995 and finally ended on January 6, 1996.

Investors barely seemed to notice. The Dow rose on most trading days during the two shutdowns.

October 17th is the more worrisome deadline. If Congress fails to strike a deal to raise the limit on how much debt the government can hold before then, the U.S. won't be able to pay all of its bills.

Related: How government shutdown would hurt Main Street

That note on the dollar bill - "backed by the full faith and credit of the U.S. government" - could start to lose some of its punch.

But even if there is no quick agreement to boost the debt ceiling, some think investors will buy more Treasuries. Larkin predicts that Treasury prices will rise if Congress doesn't strike a debt deal because they'll be seeking safety. Treasuries will still be viewed as the safest investment in the world despite a default.

After Standard & Poor's downgraded the credit rating of the U.S. in August 2011, stocks plunged more than 5% as investors raced into Treasuries, pushing bond yields down. Of course, that happened after a deal to boost the debt limit had already been reached. S&P was upset with the political process.

Still, investors should probably brace for some volatility in the next few weeks. Morgan Stanley's research analysts sum up the debt ceiling soap opera well.

"While the show seems interminably boring, the risk is that it will be punctuated with high drama that will be material for markets and the economy."

For now though, investors have changed the channel. The market isn't glued to the latest episode of "As Congress Turns."

First Published: September 27, 2013: 9:17 AM ET

21.29 | 0 komentar | Read More

Thanks a lot, Washington! Stocks fall again

Click chart for more markets data.

NEW YORK (CNNMoney)

With several Congressional crises brewing, the Dow Jones Industrial Average, the S&P 500 and Nasdaq fell slightly. Markets are on track for a losing week. Stocks were up Thursday, but that was after a five-day losing streak.

A possible government shutdown and a rapidly approaching debt limit could prevent the government from paying all its bills.

Related: Click here for more on stocks, bonds, currencies and commodities

But while stocks have stalled a bit lately, investors aren't exactly panicking. The recent slump comes just a week after the Dow and S&P 500 hit record highs. All three major indexes are still up between 17% and 25% for the year.

Most investors expect Congress will strike a last-minute deal to raise the debt limit.

Related: Investors pricing in last minute debt deal

What's moving: Shares of new Dow component Nike (NKE, Fortune 500) jumped 6% and hit an all-time high following quarterly results that beat expectations.

J.C. Penney (JCP, Fortune 500) shares sank 10% on news that the struggling retailer will raise $810 million via a public offering of 84 million shares. While this money will give J.C. Penney a cash cushion for its attempted turnaround, current shareholders will see their stock diluted.

BlackBerry (BBRY), which announced plans this week to go private, released dismal earnings Friday morning, including a $965 million quarterly loss. Still, these losses were widely anticipated, since BlackBerry had preannounced results late last week. The company's stock rose nearly 2%.

Related: Fear & Greed Index back in fear mode

European markets were drifting lower in afternoon trading. Asian markets closed higher Friday after China announced that it is establishing a free trade zone in Shanghai, driving up the shares of companies with Shanghai in their names. The Nikkei finished lower.

First Published: September 27, 2013: 9:51 AM ET

21.29 | 0 komentar | Read More

J.C. Penney raises $810 million in offering

Click on chart to track JCP

NEW YORK (CNNMoney)

J.C. Penney priced the offering at $9.65 per share, which was below the Thursday closing price of $10.42. The offering raised about $810 million.

The stock rose 3% Thursday amid reports the company was seeking to raise as much as $1 billion. But they sank following the news that J.C. Penney was indeed selling shares.

The company said it plans to use proceeds from the offering "for general corporate purposes." Underwriters will have the option to purchase an additional 12.6 million shares in the next 30 days.

Goldman Sachs (GS, Fortune 500) is managing the deal, which is expected to close on Oct. 1.

Related: Is the end near for J.C. Penney?

It's been a rough year for J.C. Penney (JCP, Fortune 500). The company has been hemorrhaging money, losing $586 million in the second quarter alone. The stock is down 47% in 2013.

Activist investor Bill Ackman added fuel to the fire when he cut his losses last month. His hedge fund, Pershing Square Capital Management, sold its entire 18% stake in the company.

Ackman had tried to save the company by recruiting Ron Johnson, former head of Apple (AAPL, Fortune 500) retailing, to lead J.C. Penney as chief executive. But Johnson got rid of company discounts, distancing its customer base and sinking sales. So the company him pushed out earlier this year.

The company is now being led by interim CEO Mike Ullman, the former CEO of the company.

First Published: September 27, 2013: 7:25 AM ET

19.33 | 0 komentar | Read More

Will young people pay a lot more under Obamacare?

NEW YORK (CNNMoney)

Myth: Young people will pay a lot more for insurance under Obamacare.

Reality: It's true that premiums will likely rise for some young adults, particularly men. But that doesn't take two important considerations into account: federal subsidies and more comprehensive coverage.

The Obama administration Wednesday released a first look at how much consumers will pay for premiums in 36 insurance exchanges partly or fully run by the federal government. The exchanges open for enrollment on October 1, while coverage begins in January.

The new data showed that in Indianapolis, for instance, the sticker price for the cheapest bronze plan for a 27-year-old will be $204. Right now, he can get a policy for as little as $52.50, according to eHealthInsurance, an online marketplace.

In Fort Lauderdale, Fla., the least expensive bronze plan will cost $128, compared to $66 today.

But those comparisons are very misleading because they do not take out-of-pocket costs and coverage limits into account, said Linda Blumberg, senior fellow at The Urban Institute. The cheap insurance policies today have very high deductibles -- $10,000 each for the Indianapolis and Fort Lauderdale plans -- and don't cover mental health, brand-name drugs or pre-natal care. The out-of-pocket limit in each of these plans is $12,500.

"Part of the problem with these plans is that people think they are insured until something bad happens and then they find out they aren't covered," she said. The Obamacare plans are "real insurance."

Related: What you'll pay

Under Obamacare, the plans must cover an array of basic health benefits, including prescription drugs, maternity care and mental health. The out-of-pocket max is limited to $6,350 for an individual so the deductible on the bronze plans can't be higher than that.

And, Blumberg notes, the cheap plans on the market today are only available to healthy young adults with no pre-existing conditions. But insurers must offer the same coverage to everyone -- regardless of their health history -- under Obamacare.

Also, sticker prices on the Obamacare plans are not what most young adults will actually pay, Blumberg said. Single people earning less than $46,000 will be eligible for federal subsidies to defray premium costs. The size of the subsidy is based on age, income and residence.

So if the Indianapolis resident makes only $25,000, he will pay $70 for the bronze plan, while the young man in Fort Lauderdale would pay only $74, not too much higher than the current rates.

Young adults up to age 30 can also sign up for more bare-bones catastrophic plans under Obamacare, but they won't be eligible for subsidies. Such plans would cost $170 in Indianapolis and $86 in Fort Lauderdale.

First Published: September 27, 2013: 6:12 AM ET

19.33 | 0 komentar | Read More

Another bleak day for BlackBerry

Friday's woeful results could be one of the last public earnings reports from BlackBerry.

NEW YORK (CNNMoney)

BlackBerry warned of the loss a week ago, and also announced that it will lay off 4,500 employees by the end of the year.

Sales for the struggling smartphone maker's second fiscal quarter came in at just $1.6 billion, a 45% drop from what BlackBerry (BBRY) reported one year ago, the company said Friday.

The results included a $934 million charge for unsold Z10 devices, the first phone launched on the new BlackBerry 10 operating system. BlackBerry added that a big chunk of the devices it did sell in the quarter were of older BlackBerry 7 phones.

In what could be the understatement of the year, BlackBerry CEO Thorsten Heins said in a press release that the company is "disappointed" with the results.

"We understand how some of the activities we are going through create uncertainty, but we remain a financially strong company with $2.6 billion in cash and no debt," Heins insisted.

Shares of BlackBerry were up modestly in pre-market trading following the release. But the stock is down more than 30% so far in 2013 and nearly 90% over the past five years.

Friday's results could be one of the last public earnings reports from BlackBerry.

On Monday, Fairfax Financial -- a Canadian insurance company that is BlackBerry's largest shareholder -- said it was considering buying BlackBerry for $4.7 billion. Cynics think Fairfax is simply trying to draw in other offers and cash out its 10% stake, but if Fairfax does make an offer, it could face a bidding war over BlackBerry's valuable patents.

BlackBerry may have little left of value besides those patents. The company said last week it now plans to offer just four smartphones instead of six, and it's finally giving up on the consumer market. BlackBerry's market share has plunged in the past few years due to competition from Apple (AAPL, Fortune 500) and companies like Samsung that make phones running on the Google (GOOG, Fortune 500) Android operating system.

Instead, BlackBerry will focus on corporate customers and "prosumers" -- professional consumers who are also increasingly opting for iPhones and Androids.

BlackBerry's consumer struggles became worse with Blackberry 10, the operating system that was meant to save the company. The software's release was delayed several times -- essentially leaving BlackBerry customers with no new phones to buy. After it finally launched in January, sales of the new devices have sorely disappointed.

Related story: Terrible apps killed BlackBerry

Although BlackBerry is in bad shape, it's premature for BlackBerry diehards to worry about their service being taken away just yet. Still, some analysts think BlackBerry's userbase could fall to 0 within just two to three years as subscribers continue to leave in droves.

BlackBerry will not be holding a conference call with analysts Friday to discuss its results. A spokeswoman for BlackBerry said it was due to "the Fairfax news." But analysts and investors haven't heard from BlackBerry's management beyond what's been said in recent press releases.

The company didn't hold a press call after the preliminary earnings release last week. It also was silent following the announcement of Fairfax's offer.

First Published: September 27, 2013: 7:32 AM ET

19.33 | 0 komentar | Read More

Indonesia needs defense against Fed taper

Indonesia faces slowing growth, rising inflation and a sliding currency.

HONG KONG (CNNMoney)

"It's inevitable that the Fed will one day end quantitative easing," Muhamuad Chatib Basri told reporters in Hong Kong. "We need to focus on stabilization."

The southeast Asian nation is grappling with a slowing economy, rising inflation, a weakening currency and a vast current account deficit.

And investors are anxious about next year's presidential election, which will be the first time the country has shuffled its leadership in a decade.

Fears that the U.S. Federal Reserve would roll back its $85 billion a month bond-buying program as early as September had prompted sharp capital outflows from emerging markets, including Indonesia, in recent months.

The Fed's decision last week to keep its foot on the gas for the time being provided something of a reprieve for some markets, including India and Brazil, which both saw their currencies stabilize.

Despite that, Indonesia's rupiah tumbled to multi-year lows this week, although its equity market fared a little better.

Related: India shocks markets with rate hike

"We are not in good times. We are in bad times," Chatib Basri said.

The challenge for Indonesia, he said, is to manage growth expectations while shoring up its finances to insulate itself from external shocks. One way would be to lower the country's consumption of oil and gas as a way to protect itself from rising commodity prices.

The country's current account deficit nearly doubled in the second quarter of the year, hitting $9.8 billion -- equivalent to over 4% of the country's GDP.

Chatib Basri said the picture could brighten later this year thanks to an improving trade balance. Inflation is also expected to remain on track at around 9.2%.

And although GDP forecasts have been revised lower, the finance minister is confident the country will achieve its 2013 target of 5.5% to 5.9% growth. Next year's estimates are even higher at 6.1%.

"Hopefully, we can weather this storm," said Chatib Basri.

Related: BRIC markets create $100 billion buffer

That sentiment is perhaps reflected in Indonesia's stock markets, which have seen a slight pickup in recent months after tumbling earlier this year, bringing the Jakarta Compose Index up about 5% so far this year.

The country may be more resilient than other fast-growing nations in Asia. Unlike some of its neighbors, growth isn't solely determined by exports. Instead, an expanding middle class is fueling something of a virtuous cycle where more goods and services are produced and purchased in rapidly urbanizing cities across the archipelago.

McKinsey & Co. predicts that Indonesia will be the 7th largest economy in the world by 2030.

First Published: September 26, 2013: 8:52 AM ET

21.29 | 0 komentar | Read More

Stocks up after five days of losses

NEW YORK (CNNMoney)

The Dow Jones industrial average, S&P 500 and Nasdaq edged up modestly.

Stocks hit record highs earlier last week, but market sentiment has taken a hit in the past few days as investors worry about a possible government shutdown and the upcoming debt limit.

Congress has less than a week to agree on a short-term funding bill to prevent a shutdown on Oct. 1, and despite all the squabbling, investors largely assume that lawmakers will reach a last-minute deal.

"Expectations are that a stop gap budget will once again be proposed and approved," said Tom Stringfellow, chief investment officer at Frost Investment Advisors.

Earnings on the horizon: Though Washington is in the spotlight, investors will also soon turn their attention to third-quarter earnings .

Analysts expect earnings growth of 3.6% for the S&P 500 companies, according to S&P Capital IQ estimates. That would be the smallest increase in a year. But revenue is forecast to grow by 4.8%, the best pace in over a year.

Nike (NKE, Fortune 500), one of the newest members of the Dow, will release its latest quarterly results after the closing bell.

What's moving: J.C. Penney (JCP, Fortune 500) dropped further Thursday after plummeting 15% on Wednesday, following reports that the retailer might seek $1 billion through a stock sale.

Though investors are assuming the worst, J.C. Penney said it is "pleased thus far in the company's turnaround efforts," and said it expects to book positive same-store sales during the third and fourth quarters.

Shares of Bed Bath & Beyond (BBBY, Fortune 500) climbed after the retailer posted quarterly earnings Wednesday that beat expectations.

JPMorgan Chase (JPM, Fortune 500) and Morgan Stanley (MS, Fortune 500) shares advanced more than 1% following reports that the banks will help lead Twitter's initial public offering. Goldman Sachs (GS, Fortune 500) is expected to be the lead underwriter, according to previous reports.

Related: Fear & Greed Index, wallowing in fear

On the economic front, gross domestic product in the U.S. grew at an annual rate of 2.5% during the third quarter according to the government's final GDP reading. Jobless claims fell slightly to 305,000 last week, which was below expectations.

European markets were edging lower in midday trading. Asian markets ended mixed. Markets in China declined, but Japanese stocks rallied -- with the Nikkei jumping by 1.2% -- on talk of a potential corporate tax cut.

First Published: September 26, 2013: 9:49 AM ET

21.29 | 0 komentar | Read More

Extra pension payments cost Detroit billions

Investigations of Detroit's two pension funds likely to show that decades of overpayments to retirees and active employees drained about $2 billion from city coffers.

NEW YORK (CNNMoney)

The revelations will be laid out in a much-anticipated investigation into "possible waste, abuse, fraud and corruption" at the two funds. State-appointed Emergency Manager Kevyn Orr called for the city's inspector general and auditor to conduct the investigation in June, roughly a month before Detroit's historic bankruptcy filing.

The excess payments were not an example of that fraud or corruption. Instead, officials who oversaw the funds regularly approved extra payments in addition to the promised pension benefits, based on the belief that the funds could be more generous when their investments generated positive returns.

A report given to the City Council two years ago showed that those overpayments cost the city $1.9 billion in the 21 years from 1987 through 2008. An update to those numbers is expected in Thursday's report.

The report should also lay out how much of a gap there is between the funds' assets and the benefits they've promised. A filing in the city's bankruptcy case says an actuarial firm hired by Orr estimates the underfunding at $3.5 billion. As of June 2011, the two pension funds had combined assets of about $5.8 billion, down roughly 30% over a four-year period, according to their most recent financial reports.

Related: Just how generous are Detroit's pensions?

Orr has previously said that the financial shortfall in the two funds -- one for police and firefighters and the other for general city workers -- makes benefit cuts for both current workers and retirees inevitable. Still, he has said he would need to see extraordinary evidence of waste and mismanagement before he would consider proposing a takeover of the $5.8 billion pension funds.

The trustees who control the funds are opposing the city's bankruptcy filing and have countered that the funding situation is far less dire than Orr indicates.

No strangers to controversy, the funds are haunted by past allegations of mismanagement, and were even the subject of a federal fraud investigation.

Related: Detroit pensions: Bribes, a $5,000 poker chip and a big financial hole

Overall, seven people have been convicted on charges related to a corruption scheme at the pension funds, while four more are facing criminal indictments, according to an FBI document.

According to FBI and court documents, city and pension fund officials allegedly accepted bribes and kickbacks -- ranging from cash payments to lavish trips, entertainment and private plane flights -- in exchange for steering more than $200 million in pension fund investments. At least $84 million in pension fund losses have been tied to the scheme.

First Published: September 26, 2013: 10:21 AM ET

21.29 | 0 komentar | Read More