Why we're working less than our parents did

NEW YORK (CNNMoney)

But as a whole, Americans are working far less now than they did a generation ago, and have more leisure time than ever.

The average work week has gone from over 38 hours in 1964 to under 34 hours in 2013 -- a drop of nearly 12%, according to the Bureau of Labor Statistics.

A big reason for the decline is the growth in part-time jobs, which have surged as more women entered the workforce and the number of restaurants, shopping malls, and other establishments that employ part-time workers have exploded.

Another explanation is that people tend to stay in school longer and retire earlier, clocking fewer hours over their lifetime. Men in their 50s, for example, have been retiring or entering semi-retirement earlier and in greater numbers than those in previous generations, according to John Robinson, a sociology professor at the University of Maryland, and are partly responsible for driving down overall work hours per week.

And we're working a lot less than our grandparents, great grandparents and earlier generations. The average work week for a manufacturing employee in the 1860s was 62 hours, according to a paper from Robert Whaples, an economist at Wake Forest University.

In the 1600s, there were actually laws requiring a minimum work day, wrote Whaples. In parts of the country, most people had to work sun up to sundown -- part of the Puritanical "idle-hands-are-the-devil's-workshop" ethos.

Related: 10 hardest working countries

It wasn't easy to change that culture. Political battles that led to less religious influence over the nation's laws almost sparked a civil war. A century later, labor activists fought for decades to get the 40 hour work week.

Coinciding with the shorter work week is a rise in leisure time. Americans reported having just under 35 hours a week of "free time" in 1965 -- that's time not spent at work, doing housework, eating, sleeping or doing other activities necessary for day-to-day survival, according to research by Robinson, who directs the American's Use of Time Project at the University of Maryland.

By 2012, it had reached 42, according to the Bureau of Labor Statistics.

"People feel less rushed than they did even a decade ago," said Robinson.

And thanks to modern technology, the time we spend on housework and cooking is declining.

Just what are we doing with all these extra hours? Watching more TV, mostly.

Related: World's shortest work weeks

But technology certainly hasn't made all our lives easier.

Some people, especially those at the higher end of the earnings spectrum, report working more hours than they want to. This is particularly true for professionals who are now tied to their work by smartphones and email.

Also, many Americans are working part time not because they want to, but because their jobs have been replaced by automation, outsourced, or otherwise eliminated.

"The promise of technology is that we'd all get to work less," said Linda Barrington, head of the Institute for Compensation Studies at Cornell University's school of Industrial and Labor Relations. "But it's playing out differently for different people at different income levels."

Barrington believes the Affordable Care Act - a.k.a. Obamacare -- is the first real law intended to deal with some of the disruption of a changing workplace, as more Americans enter freelance or part-time positions that don't provide health insurance.

As happened during the industrial revolution, she feels other measures will need to take shape to make the technological revolution more beneficial to all workers.

"How are we going to change the rules again?" she asked.

First Published: July 29, 2013: 6:28 AM ET

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The secret to taking a real vacation

NEW YORK (CNNMoney)

According to a survey from American Express OPEN, just 49% of entrepreneurs planned to take vacations this summer, down from 54% last summer and 67% in 2006.

But it doesn't have to be that hard. Josh Golden, founder and CEO of Table XI Partners, found the secret to going off the grid: Delegation.

"Delegating takes practice," says Golden. "But every time I delegate something new to someone else in the firm, I wish I had done it sooner."

Letting go of the day-to-day details -- and trusting that employees can handle whatever pops up -- is one of those things business owners know they ought to do, but find incredibly difficult in practice.

Golden launched his Chicago web-development firm in 2002 with just a part-time assistant. Like many entrepreneurs, at first he did everything from strategic planning to emptying the wastebaskets -- but he quickly learned that wouldn't work for long.

"As you grow, you just can't do everything anymore," said Golden, whose firm now has more than 30 employees.

Related: 10 hardest working countries

The first step is analyzing your own strengths and weaknesses.

"It takes some honest introspection to identify the one or two things you truly are the best at," Golden said. "The goal is to spend 90% of your time on those things, while you hand over to others the tasks where you aren't really adding value."

Learning to delegate also means shushing your inner perfectionist.

"It took me a while to come to terms with the fact that other people can do perfectly acceptable work without being as passionate about the business as I am," Golden said. "And there are plenty of tasks in any company where 'good enough' really is just fine."

Related: How startups can get cheap office space

Carving out time for a vacation also means more than just delegating while you're gone -- you've also got to make it part of your business plan. Golden, whose strongest skill is marketing, was still running Table XI's accounting and finance until last fall, when he finally handed over the number-crunching to a newly-hired finance director.

To get her up to speed, he used a collaborative method, common in software development, called pairing. "It's like an apprenticeship. You train someone over time, sharing knowledge until that person is independent in that role," he said. "The main thing is to resist the impulse to helicopter in and do everything yourself."

Golden's work paid off. In June, he and his wife spent nine days in Waikiki, Kauai and Honolulu. Was he worried about the company? Not quite. "I could have stayed away for another week or even two," he said.

First Published: July 29, 2013: 6:32 AM ET

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Hottest trade on Wall Street: Detroit bonds

Detroit has roughly $8.3 billion in tradeable bonds.

NEW YORK (CNNMoney)

Detroit's bonds have become the hottest trade on Wall Street, since the Motor City filed for the largest municipal bankruptcy two week ago.

Prior to the bankruptcy filing, Detroit's emergency manager, Kevyn Orr, offered to pay bondholders roughly 10 cents on the dollar to help keep the city going.

That would result in huge losses for the city's original creditors. But hedge funds, particularly those that invest in troubled or bankrupt companies, think these bonds will turn out to be lucrative in the long run.

The problem is there aren't that many available. Few have traded, and the waiting lists are long.

Related: Detroit: After bankruptcy, then what?

"The biggest problem we have is how to allocate bonds," said a trader on a major bank's municipal desk. "Only major customers are getting the opportunity to buy."

Detroit has $18 billion of liabilities, but only about $8.2 billion in bonds you can trade. The rest of the city's liabilities are tied to unfunded pensions and retirees' healthcare costs.

Of the bonds, there are $1.4 billion that have funded some of Detroit's pension costs, and those are among the most coveted by hedge funds.

These taxable bonds, known as pension obligation certificates, were issued and sold to European banks in 2005 to help fund the city's pensions. It was an unusual move by Detroit, because cities typically use local revenue to fund these obligations.

Now, hedge funds are just waiting for the banks to sell. Given Detroit's financial mess, that could happen in the next month or so as banks get skittish about keeping that debt on their books, several market experts say.

Many funds are willing to buy small amounts just to get their foot in the door.

Shortly after Detroit filed for bankruptcy, several hedge funds managed to buy $5 million of pension bonds for 41 cents on the dollar. Those were some of the only pension obligation bonds available.

Related: Michigan court clears way for Detroit bankruptcy to proceed

Hedge funds are also eyeing about $1 billion in general obligation bonds backed by Detroit. More of these have changed hands, but also in small increments. One hedge fund manager said he was able to procure $30,000 of general obligation bonds at 75 cents on the dollar from a dentist in Milwaukee. The fund was hoping to buy several millions of dollars' worth, but so far, that's all they can get their hands on.

Most of Detroit's general obligation bonds are owned by retail investors. Since the bankruptcy, these bonds have been selling at between 69 cents and 92 cents on the dollar.

While Detroit's full faith and credit seems questionable right now, the city's bonds are backed by insurance firms, including Ambac (AMBC), Assured Guaranty (AGO) and the national finance arm of MBIA (MBI). Some investors are betting that these insurers will continue to pay Detroit's bondholders for now.

Other bondholders think Orr's initial projection for what they could recover was overly pessimistic. There's some speculation that he overstated the unfunded pension liabilities. Some hedge fund managers also think a portion of healthcare costs for Detroit's city workers will be able to be deferred under Obamacare.

Betting on Detroit's bonds is still a big gamble. There have been few municipal bankruptcies in the United States, and most have been small.

Still, Jim Spiotto, a partner at law firm Chapman and Cutler and a veteran of several municipal bankruptcies, said that overall, bondholders have recovered more in municipal bankruptcies than corporate ones.

But he cautioned investors should be wary of Detroit, because it might not follow suit. "Detroit has a long history of disappointing people. Detroit could very well be an aberration from other municipal bankruptcies."

First Published: July 29, 2013: 6:24 AM ET

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JPMorgan to exit commodities businesses

NEW YORK (CNNMoney)

The announcement comes as the bank reportedly nears a settlement with the U.S. government over the manipulation of electricity markets in California.

JPMorgan (JPM, Fortune 500)said it "is pursuing strategic alternatives for its physical commodities business...including, but not limited to: a sale, spin off or strategic partnership."

The move will not affect the bank's trading activities, such as the buying or selling of futures contracts.

Earlier this week, the Senate held a hearing on bank ownership of physical commodities, during which several witnesses said involvement from the big banks is dangerous for the financial system and may be driving up prices for consumers.

The hearing followed a story in the New York Times on Sunday alleging Goldman Sachs (GS, Fortune 500) was stockpiling aluminum in Detroit, leading to higher prices for aluminum products like soda cans and cars.

People familiar with JPMorgan's involvement in California's electricity markets say the bank would bid to deliver electricity to a utility on a future day, and then raise the price, ensuring the power would not get bought.

Consumers would then have to compensate the bank for the cost of making the bid, under California's "make whole provision," which requires ratepayers to cover certain costs incurred by energy sellers.

It's not clear how JPMorgan made money on this arrangement, or if it was technically legal.

The government agency charged with policing electricity markets -- the Federal Energy Regulatory Commission -- and JPMorgan have declined to comment on the case.

Barclays and Deutsche Bank (DB) have also been recently fined by the government for improper electricity trading.

First Published: July 26, 2013: 5:51 PM ET

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The government wants SAC Capital's billions

Steven Cohen's hedge fund SAC Capital was indicted for criminal insider trading.

NEW YORK (CNNMoney)

The U.S. Attorney for Southern District of New York's filing Thursday of civil and criminal charges against Cohen's hedge fund opens the door for the government to seek significant penalties.

"A criminal conviction would forever taint SAC and Steven Cohen, but ultimately the big financial penalties could come from the civil case," said John Coffee, a professor of securities law at Columbia University.

So far Cohen has escaped criminal charges and, as of now, faces no possibility of jail time.

The real penalty now could be a financial blow to the hedge fund manager, whose personal fortune is estimated at roughly $9 billion.

SAC Capital at its height had $15 billion in assets under management. This year, as the government's investigation expanded, up to $5 billion has been withdrawn from the firm, according to published reports. The majority of the firm's money comes from Cohen.

Several securities lawyers said the scope of the government's civil indictment indicate that prosecutors might try to go after all of the firm's assets.

Related: SAC indictment depicts culture of law-breaking

The government gets to that demand by painting a picture of rampant insider trading at a fund where "hundreds of millions of illegal profits" from insider trading were "commingled" with legitimate profits. The government is seeking not just the illegal profits but even legal profits that may have been generated from that money.

The 40-page civil indictment outlines how these profits infiltrate every level of the firm.

"I don't know how easy it will be to prove, but it may be frightening enough to get SAC to seek a settlement," said Coffee.

On Friday, SAC Capital's lawyers pleaded not guilty to the federal criminal charges against the hedge fund. SAC Capital said Thursday that it plans to continue to operate as it works through these matters.

Both SAC and Cohen face fines from several different lawsuits, but the civil penalties sought by the U.S. Attorney's Office are expected to be steepest. The government said the actual figure will be determined at trial, and U.S. Attorney Preet Bharara declined to comment on possible penalties during a news conference Thursday.

Related: Not guilty plea entered by SAC Capital

The government can also seek penalties from its criminal case, but the maximum penalty for each count of securities fraud is $25 million. SAC has been indicted on four counts of securities fraud.

The hedge fund was also indicted on a charge of wire fraud. In that case, the government can seek twice the gains or losses generated from illegal trades.

The indictment only specifies profits from one set of trades in the pharmaceutical companies Elan (ELN) and Wyeth in 2008 and 2009. The profit from those trades was approximately $275 million.

In a separate case against Cohen, the SEC is seeking financial penalties for what it says is a failure to supervise employees engaged in insider trading. Coffee estimates that any penalties from the SEC case would be smaller than those possible in the U.S. Attorney's case.

The SEC has already extracted one penalty from SAC. In March, the firm paid $615 million to the agency to settle insider trading charges.

Bharara has said that the government wants to extract meaningful penalties so this case and other insider trading cases can have a deterrent effect.

First Published: July 26, 2013: 4:27 PM ET

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Starbucks sees big growth in China

Starbucks is opening more stores in inland Chinese cities, such as this one in Chengdu, Sichuan Province in Southwest China.

NEW YORK (CNNMoney)

According to its latest quarterly report, Starbucks (SBUX, Fortune 500) saw a 30% year-over-year jump in revenues from its Asia-Pacific region, lifted by outstanding sales in China.

"The very strong sales volumes prove that the coffee concept can succeed in traditional tea-drinking countries," said R J Hottovy, director of consumer equity research at Morningstar, Inc. "It's resonating very well with [inland] cities."

Starbucks' solid sales growth in the region was driven by the 500 new stores it opened in China last year, and its Chinese expansion plans aren't slowing down.

The Seattle-based coffee giant said it plans to open its thousandth store in China by the end the year. In addition to already being in major cities like Beijing and Shanghai, the company says its stores will have penetrated lesser-known cities. By 2014, Starbucks said China will surpass Canada to become the second largest market, after the United States.

Related: Starbucks' caffeine-fueled expansion

In the last five years, overall retail coffee sales in China climbed by 10%, beating growth in Hong Kong, Japan and the 3% global average, according to data from research company Euromonitor International.

Starbucks said its marketing strategy in China is similar to that of its Western markets. It continues to focus on its core food and beverage products while also offering other locally oriented choices.

"The demographics they are targeting are younger and more affluent groups," Hottovy said.

Starbucks opened its first store in Taipei in 1998, followed by its first mainland China store in Beijing in 1999. But the coffee shop market is beginning to heat up. "Increasing competition will be the most pressing issue as more Western coffee brands enter the Chinese market," he said.

In 2012, an average Chinese person consumed about two cups of coffee per year. That's a far cry from the global average of 134 cups a year, according to Euromonitor. Coffee has less than 1% of the Chinese hot-drink market share. By contrast, tea makes up 54% of the market.

"It's still too early to say that coffee is going to replace tea, or that the Chinese flavor profile is changing," said Dana LaMendola, analyst of hot drinks at Euromonitor.

First Published: July 26, 2013: 6:24 PM ET

21.29 | 0 komentar | Read More

The government wants SAC Capital's billions

Steven Cohen's hedge fund SAC Capital was indicted for criminal insider trading.

NEW YORK (CNNMoney)

The U.S. Attorney for Southern District of New York's filing Thursday of civil and criminal charges against Cohen's hedge fund opens the door for the government to seek significant penalties.

"A criminal conviction would forever taint SAC and Steven Cohen, but ultimately the big financial penalties could come from the civil case," said John Coffee, a professor of securities law at Columbia University.

So far Cohen has escaped criminal charges and, as of now, faces no possibility of jail time.

The real penalty now could be a financial blow to the hedge fund manager, whose personal fortune is estimated at roughly $9 billion.

SAC Capital at its height had $15 billion in assets under management. This year, as the government's investigation expanded, up to $5 billion has been withdrawn from the firm, according to published reports. The majority of the firm's money comes from Cohen.

Several securities lawyers said the scope of the government's civil indictment indicate that prosecutors might try to go after all of the firm's assets.

Related: SAC indictment depicts culture of law-breaking

The government gets to that demand by painting a picture of rampant insider trading at a fund where "hundreds of millions of illegal profits" from insider trading were "commingled" with legitimate profits. The government is seeking not just the illegal profits but even legal profits that may have been generated from that money.

The 40-page civil indictment outlines how these profits infiltrate every level of the firm.

"I don't know how easy it will be to prove, but it may be frightening enough to get SAC to seek a settlement," said Coffee.

On Friday, SAC Capital's lawyers pleaded not guilty to the federal criminal charges against the hedge fund. SAC Capital said Thursday that it plans to continue to operate as it works through these matters.

Both SAC and Cohen face fines from several different lawsuits, but the civil penalties sought by the U.S. Attorney's Office are expected to be steepest. The government said the actual figure will be determined at trial, and U.S. Attorney Preet Bharara declined to comment on possible penalties during a news conference Thursday.

Related: Not guilty plea entered by SAC Capital

The government can also seek penalties from its criminal case, but the maximum penalty for each count of securities fraud is $25 million. SAC has been indicted on four counts of securities fraud.

The hedge fund was also indicted on a charge of wire fraud. In that case, the government can seek twice the gains or losses generated from illegal trades.

The indictment only specifies profits from one set of trades in the pharmaceutical companies Elan (ELN) and Wyeth in 2008 and 2009. The profit from those trades was approximately $275 million.

In a separate case against Cohen, the SEC is seeking financial penalties for what it says is a failure to supervise employees engaged in insider trading. Coffee estimates that any penalties from the SEC case would be smaller than those possible in the U.S. Attorney's case.

The SEC has already extracted one penalty from SAC. In March, the firm paid $615 million to the agency to settle insider trading charges.

Bharara has said that the government wants to extract meaningful penalties so this case and other insider trading cases can have a deterrent effect.

First Published: July 26, 2013: 4:27 PM ET

21.29 | 0 komentar | Read More

JPMorgan to exit commodities businesses

NEW YORK (CNNMoney)

The announcement comes as the bank reportedly nears a settlement with the U.S. government over the manipulation of electricity markets in California.

JPMorgan (JPM, Fortune 500)said it "is pursuing strategic alternatives for its physical commodities business...including, but not limited to: a sale, spin off or strategic partnership."

The move will not affect the bank's trading activities, such as the buying or selling of futures contracts.

Earlier this week, the Senate held a hearing on bank ownership of physical commodities, during which several witnesses said involvement from the big banks is dangerous for the financial system and may be driving up prices for consumers.

The hearing followed a story in the New York Times on Sunday alleging Goldman Sachs (GS, Fortune 500) was stockpiling aluminum in Detroit, leading to higher prices for aluminum products like soda cans and cars.

People familiar with JPMorgan's involvement in California's electricity markets say the bank would bid to deliver electricity to a utility on a future day, and then raise the price, ensuring the power would not get bought.

Consumers would then have to compensate the bank for the cost of making the bid, under California's "make whole provision," which requires ratepayers to cover certain costs incurred by energy sellers.

It's not clear how JPMorgan made money on this arrangement, or if it was technically legal.

The government agency charged with policing electricity markets -- the Federal Energy Regulatory Commission -- and JPMorgan have declined to comment on the case.

Barclays and Deutsche Bank (DB) have also been recently fined by the government for improper electricity trading.

First Published: July 26, 2013: 5:51 PM ET

21.29 | 0 komentar | Read More

Starbucks sees big growth in China

Starbucks is opening more stores in inland Chinese cities, such as this one in Chengdu, Sichuan Province in Southwest China.

NEW YORK (CNNMoney)

According to its latest quarterly report, Starbucks (SBUX, Fortune 500) saw a 30% year-over-year jump in revenues from its Asia-Pacific region, lifted by outstanding sales in China.

"The very strong sales volumes prove that the coffee concept can succeed in traditional tea-drinking countries," said R J Hottovy, director of consumer equity research at Morningstar, Inc. "It's resonating very well with [inland] cities."

Starbucks' solid sales growth in the region was driven by the 500 new stores it opened in China last year, and its Chinese expansion plans aren't slowing down.

The Seattle-based coffee giant said it plans to open its thousandth store in China by the end the year. In addition to already being in major cities like Beijing and Shanghai, the company says its stores will have penetrated lesser-known cities. By 2014, Starbucks said China will surpass Canada to become the second largest market, after the United States.

Related: Starbucks' caffeine-fueled expansion

In the last five years, overall retail coffee sales in China climbed by 10%, beating growth in Hong Kong, Japan and the 3% global average, according to data from research company Euromonitor International.

Starbucks said its marketing strategy in China is similar to that of its Western markets. It continues to focus on its core food and beverage products while also offering other locally oriented choices.

"The demographics they are targeting are younger and more affluent groups," Hottovy said.

Starbucks opened its first store in Taipei in 1998, followed by its first mainland China store in Beijing in 1999. But the coffee shop market is beginning to heat up. "Increasing competition will be the most pressing issue as more Western coffee brands enter the Chinese market," he said.

In 2012, an average Chinese person consumed about two cups of coffee per year. That's a far cry from the global average of 134 cups a year, according to Euromonitor. Coffee has less than 1% of the Chinese hot-drink market share. By contrast, tea makes up 54% of the market.

"It's still too early to say that coffee is going to replace tea, or that the Chinese flavor profile is changing," said Dana LaMendola, analyst of hot drinks at Euromonitor.

First Published: July 26, 2013: 6:24 PM ET

21.29 | 0 komentar | Read More

The government wants SAC Capital's billions

Steven Cohen's hedge fund SAC Capital was indicted for criminal insider trading.

NEW YORK (CNNMoney)

The U.S. Attorney for Southern District of New York's filing Thursday of civil and criminal charges against Cohen's hedge fund opens the door for the government to seek significant penalties.

"A criminal conviction would forever taint SAC and Steven Cohen, but ultimately the big financial penalties could come from the civil case," said John Coffee, a professor of securities law at Columbia University.

So far Cohen has escaped criminal charges and, as of now, faces no possibility of jail time.

The real penalty now could be a financial blow to the hedge fund manager, whose personal fortune is estimated at roughly $9 billion.

SAC Capital at its height had $15 billion in assets under management. This year, as the government's investigation expanded, up to $5 billion has been withdrawn from the firm, according to published reports. The majority of the firm's money comes from Cohen.

Several securities lawyers said the scope of the government's civil indictment indicate that prosecutors might try to go after all of the firm's assets.

Related: SAC indictment depicts culture of law-breaking

The government gets to that demand by painting a picture of rampant insider trading at a fund where "hundreds of millions of illegal profits" from insider trading were "commingled" with legitimate profits. The government is seeking not just the illegal profits but even legal profits that may have been generated from that money.

The 40-page civil indictment outlines how these profits infiltrate every level of the firm.

"I don't know how easy it will be to prove, but it may be frightening enough to get SAC to seek a settlement," said Coffee.

On Friday, SAC Capital's lawyers pleaded not guilty to the federal criminal charges against the hedge fund. SAC Capital said Thursday that it plans to continue to operate as it works through these matters.

Both SAC and Cohen face fines from several different lawsuits, but the civil penalties sought by the U.S. Attorney's Office are expected to be steepest. The government said the actual figure will be determined at trial, and U.S. Attorney Preet Bharara declined to comment on possible penalties during a news conference Thursday.

Related: Not guilty plea entered by SAC Capital

The government can also seek penalties from its criminal case, but the maximum penalty for each count of securities fraud is $25 million. SAC has been indicted on four counts of securities fraud.

The hedge fund was also indicted on a charge of wire fraud. In that case, the government can seek twice the gains or losses generated from illegal trades.

The indictment only specifies profits from one set of trades in the pharmaceutical companies Elan (ELN) and Wyeth in 2008 and 2009. The profit from those trades was approximately $275 million.

In a separate case against Cohen, the SEC is seeking financial penalties for what it says is a failure to supervise employees engaged in insider trading. Coffee estimates that any penalties from the SEC case would be smaller than those possible in the U.S. Attorney's case.

The SEC has already extracted one penalty from SAC. In March, the firm paid $615 million to the agency to settle insider trading charges.

Bharara has said that the government wants to extract meaningful penalties so this case and other insider trading cases can have a deterrent effect.

First Published: July 26, 2013: 4:27 PM ET

19.33 | 0 komentar | Read More