German downturn bodes ill for eurozone

A decline in private sector output in April and falling car sales suggest the German economy is slowing again.

LONDON (CNNMoney)

Financial data provider Markit said its initial purchasing managers' index (PMI) reading for German manufacturing and services fell to a 6-month low of 48.8 from 50.6 in March, pointing to the first contraction in output since November.

The reading for the eurozone as a whole was unchanged at 46.5, indicating a drop in activity for the 19th time in the past 20 months. New business in manufacturing and services in the eurozone suffered its steepest rate of decline since December.

Renewed concerns about the outlook for southern Europe following the messy Cyprus bailout at the end of March may have contributed to subdued business confidence.

Markit Chief Economist Chris Williamson said the data reflected a weak start to the second quarter and suggested the region's downturn could intensify rather than ease in the months to come.

"Worryingly, the rate of loss of new business gathered further momentum, suggesting that activity and employment could fall at steeper rates in May," he said.

"The renewed decline in Germany will also raise fears that the region's largest growth engine has moved into reverse, thereby acting as a drag on the region at the same time as particularly steep downturns persist in France, Italy and Spain," Williamson added.

Related: China manufacturing expansion slows

French private sector output continued to contract in April, although the pace of decline slowed.

Markit said its April PMI data pointed to a contraction in the eurozone economy of 0.4%, compared with 0.2-0.3% expected in the first quarter of the year.

The International Monetary Fund cut its 2013 forecast for the eurozone economy last week, saying it expected gross domestic product to contract by 0.3%. The European Central Bank is slightly more pessimistic, predicting a fall of 0.5% this year.

European policymakers continue to predict a gradual recovery in output in the second half of the year but are coming under growing pressure to relax a policy of austerity that has contributed to a sharp loss in domestic demand.

Recession in Germany would remove one of the few sources of eurozone growth at a time when the global outlook is also deteriorating. New car sales in Germany fell by 13% in the first quarter of 2013, suggesting a loss of confidence among consumers as well as businesses.

First Published: April 23, 2013: 6:19 AM ET

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Even Abenomics can't ignore Japan debt

Japan will soon hit a gross public debt-to-GDP ratio of 230%.

HONG KONG (CNNMoney)

The gambit, the brainchild of Prime Minister Shinzo Abe, is already having an effect. The yen has depreciated sharply and stocks are at multi-year highs. The IMF has endorsed the plan and Japan has largely avoided charges of currency manipulation.

But some economists are warning that Japan would be wise to attack its rising debt levels with similar vigor by hatching a plan to cut welfare benefits and raise taxes in the medium term.

The problem is severe. Japan's gross public debt is projected to hit 230% of GDP by 2014 after years of sustained deficits.

The Organization for Economic Cooperation and Development, which largely gave its blessing to Abenomics in a report Tuesday, cautioned that Japan must do more to arrest rising debt.

"Stopping and reversing the rise in the debt-to-GDP ratio is crucial," the OECD report said.

It's the same story at the IMF: "Japan needs more ambitious plans to bring down debt, plus structural reforms to shift the economy into higher gear," IMF managing director Christine Lagarde said last week.

Related story: Japan defends easy money gamble

For many years, very low interest rates allowed Japan to issue debt and not be overwhelmed by servicing payments. And Japanese citizens, famous for their savings habit, were happy to buy government bonds. In contrast to countries like Greece, almost all Japanese debt is held domestically.

But risks remain, especially if interest rates spike.

"A significant rise in the long-term interest rate would compound Japan's fiscal predicament and hurt the economy and the financial institutions holding government bonds," the OECD said.

Japanese policymakers, including Finance Minister Taro Aso, have played down this risk.

"We are paying attention to that issue, but [Japan] is different than Greece," Aso told CNN last week.

Related story: Japan owns almost as much U.S. debt as China

Even if rates stay low and the worst scenario is avoided, Japan needs to address long-term structural problems to put its economy on a more sustainable footing.

"Given the unprecedented size of its debt ratio and the risk of higher interest rates, Japan needs a detailed and credible medium-term plan of spending cuts and tax increases, accompanied by improvements in the fiscal policy framework," the OECD said.

The country has to get social security payments to its aging population under control, the group said. Hiking the retirement age is one idea.

Japan's parliament voted last year to double the country's sales tax, but the OECD advocated further measures, including an increase in environmental taxes and a higher value-added tax. The OECD also wants Japan to broaden its tax base by eliminating deductions and loopholes.

The desired reforms will be difficult to implement and require an enormous amount of political will, even if they become priorities for Abe.

Ratings agency Standard & Poor's remains skeptical, saying Tuesday that efforts to get deficits under control in Japan have gone "nowhere."

"Strong fiscal consolidation other than an increase in the sales tax is unlikely in the next few years," S&P said in a report.

First Published: April 23, 2013: 6:32 AM ET

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Stocks up as earnings trump economic weakness

Click chart for more market data.

NEW YORK (CNNMoney)

The Dow Jones industrial average rose 0.9%, the S&P 500 gained 0.8% and the tech-heavy Nasdaq gained climbed 1%.

Shares of heavily shorted Netflix (NFLX) surged 24% Tuesday, after the streaming video service reported strong subscriber gains on Monday.

Travelers (TRV, Fortune 500) helped lift the Dow, with shares climbing 3% after the insurer reported a rise in profits.

Shares of Coach (COH) jumped more than 10% after the upscale retailer posted better-than-expected sales and earnings.

Airlines have been on the news this week due to concerns about flight delays at airports resulting from the federal government's forced budget cuts. But Delta Air Lines (DAL, Fortune 500) shares rose more than 2% after reporting a first-quarter profit.

Apple's day of reckoning is here: Apple (AAPL, Fortune 500) headlines the list of companies reporting after the close, and it will be looking to reverse a slide that has dropped its stock roughly 45% since September.

Deutsche Bank analyst Jim Reid said in a report that expectations for Apple are relatively low and that tech results overall have been disappointing this earnings season.

AT&T (T, Fortune 500) is also set to report in the afternoon, and analysts will be keeping an eye on iPhone sales. Last week, Verizon (VZ, Fortune 500) reported that iPhone sales dropped 33% in the first quarter from the fourth quarter of 2012.

Related: Fear & Greed Index: We're still afraid

Eyes on the economy: Weak data on manufacturing in China weighed on shares in Shanghai. The Hang Seng declined 1.1%. The Shanghai Composite was hardest hit by the factory report, falling 2.6%. Japan's Nikkei lost 0.3%.

European markets were higher in midday trading, recovering from an earlier slump. Germany's DAX, London's FTSE 100 and France's CAC 40 were all solidly higher despite a report showing that private sector output in Germany fell for the first time since November. Caxton FX analyst Richard Driver said the picture in Germany "look very bleak indeed."

At 10 a.m. ET, the Census Bureau said new-home sales rose 1.5% in March to an annual rate of 417,000, just above economists' forecasts.

The dollar fell against the euro, the British pound and the Japanese yen.

Oil and gold prices were slightly lower.

The price on the 10-year Treasury edged up, pushing the yield down to 1.67% from 1.69% late Monday.

First Published: April 23, 2013: 9:49 AM ET

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'Smart guns' could be next step in gun control

NEW YORK (CNNMoney)

They're using technology to create guns that only fire in the right hands. These so-called smart guns can recognize a watch, a ring or even just a grip.

For more than a decade, researchers at the New Jersey Institute of Technology have been working on a grip-recognizing gun similar to the one James Bond uses in "Skyfall."

Sensors on the grip -- similar to the touchpad on a laptop -- measure the pressure applied and the size and shape of the hand holding the gun.

"If a child tries to grab the gun, their hand geometry is actually going to be smaller," said NJIT Associate Professor Michael Recce. "So they're not going to touch the sensors, and they're not going to be able to fire the gun."

Related: Remington jobs rule the rust belt

According to the Bureau of Justice Statistics, about 232,000 guns are stolen every year. Recce says these criminals would not be able to use a grip-recognizing gun.

Another company, Armatix, uses radio frequency technology in its weapons, which unlock with a watch and a PIN. If someone who isn't wearing the watch grabs the gun, it immediately deactivates.

"Anybody who picks up the handgun, whether it's a child or it's actively stolen, they can't activate the watch," said Belinda Padilla, president and CEO of Armatix USA.

Armatix already sells these personalized guns in Europe and Asia.

Triggersmart, founded by Irish entrepreneur Robert McNamara, also uses radio frequency technology to enable -- and disable -- guns. The chip that activates the gun can be placed in a ring, bracelet or potentially even embedded in the owner's hand.

Personalized weapons makers say their products are effective and inexpensive. But even so, none are available in the United States, due to lack of demand from gun makers and owners.

Related: Guns and ammo sales spark jobs boom

With guns in the national spotlight, that could soon change. These entrepreneurs have discussed their technology with the attorney general, and Obama touted smart guns in his 23-point plan to reduce gun violence in the wake of the Newtown shooting.

Several other gun control measures -- including background checks and an assault weapon ban -- recently failed, but smart guns are still on the table. Rep. John Tierney, a Massachusetts Democrat, plans to introduce a House bill in the next few weeks requiring that all guns include personalization technology within two years.

The smart-gun makers say their products could have prevented the tragedy in Newtown, but critics are doubtful.

"The firearms were accessible to Adam Lanza. They should not have been," said Lawrence Keane, senior vice president and general counsel of the National Shooting Sports Foundation. "If [Mrs. Lanza] had one that had this sort of authorized user recognition onboard the firearm, presumably he would've had access to that."

Keane isn't completely against personalized weapons, but he says the technology isn't reliable enough yet and could even make guns more dangerous.

"It can actually encourage people to leave loaded firearms accessible, relying upon the technology which can fail at the most inopportune time," he said.

The NRA has previously expressed concerns about personalized weapons as well. They did not respond to requests for comment for this story.

Personalized gunmakers agree that this technology won't stop all gun violence, but they say it could be an important step.

"Personalized handguns and personalized technology will save lives of many people and children," said Padilla.

First Published: April 23, 2013: 6:01 AM ET

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Even Abenomics can't ignore Japan debt

Japan will soon hit a gross public debt-to-GDP ratio of 230%.

HONG KONG (CNNMoney)

The gambit, the brainchild of Prime Minister Shinzo Abe, is already having an effect. The yen has depreciated sharply and stocks are at multi-year highs. The IMF has endorsed the plan and Japan has largely avoided charges of currency manipulation.

But some economists are warning that Japan would be wise to attack its rising debt levels with similar vigor by hatching a plan to cut welfare benefits and raise taxes in the medium term.

The problem is severe. Japan's gross public debt is projected to hit 230% of GDP by 2014 after years of sustained deficits.

The Organization for Economic Cooperation and Development, which largely gave its blessing to Abenomics in a report Tuesday, cautioned that Japan must do more to arrest rising debt.

"Stopping and reversing the rise in the debt-to-GDP ratio is crucial," the OECD report said.

It's the same story at the IMF: "Japan needs more ambitious plans to bring down debt, plus structural reforms to shift the economy into higher gear," IMF managing director Christine Lagarde said last week.

Related story: Japan defends easy money gamble

For many years, very low interest rates allowed Japan to issue debt and not be overwhelmed by servicing payments. And Japanese citizens, famous for their savings habit, were happy to buy government bonds. In contrast to countries like Greece, almost all Japanese debt is held domestically.

But risks remain, especially if interest rates spike.

"A significant rise in the long-term interest rate would compound Japan's fiscal predicament and hurt the economy and the financial institutions holding government bonds," the OECD said.

Japanese policymakers, including Finance Minister Taro Aso, have played down this risk.

"We are paying attention to that issue, but [Japan] is different than Greece," Aso told CNN last week.

Related story: Japan owns almost as much U.S. debt as China

Even if rates stay low and the worst scenario is avoided, Japan needs to address long-term structural problems to put its economy on a more sustainable footing.

"Given the unprecedented size of its debt ratio and the risk of higher interest rates, Japan needs a detailed and credible medium-term plan of spending cuts and tax increases, accompanied by improvements in the fiscal policy framework," the OECD said.

The country has to get social security payments to its aging population under control, the group said. Hiking the retirement age is one idea.

Japan's parliament voted last year to double the country's sales tax, but the OECD advocated further measures, including an increase in environmental taxes and a higher value-added tax. The OECD also wants Japan to broaden its tax base by eliminating deductions and loopholes.

The desired reforms will be difficult to implement and require an enormous amount of political will, even if they become priorities for Abe.

Ratings agency Standard & Poor's remains skeptical, saying Tuesday that efforts to get deficits under control in Japan have gone "nowhere."

"Strong fiscal consolidation other than an increase in the sales tax is unlikely in the next few years," S&P said in a report.

First Published: April 23, 2013: 6:32 AM ET

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German downturn bodes ill for eurozone

A decline in private sector output in April and falling car sales suggest the German economy is slowing again.

LONDON (CNNMoney)

Financial data provider Markit said its initial purchasing managers' index (PMI) reading for German manufacturing and services fell to a 6-month low of 48.8 from 50.6 in March, pointing to the first contraction in output since November.

The reading for the eurozone as a whole was unchanged at 46.5, indicating a drop in activity for the 19th time in the past 20 months. New business in manufacturing and services in the eurozone suffered its steepest rate of decline since December.

Renewed concerns about the outlook for southern Europe following the messy Cyprus bailout at the end of March may have contributed to subdued business confidence.

Markit Chief Economist Chris Williamson said the data reflected a weak start to the second quarter and suggested the region's downturn could intensify rather than ease in the months to come.

"Worryingly, the rate of loss of new business gathered further momentum, suggesting that activity and employment could fall at steeper rates in May," he said.

"The renewed decline in Germany will also raise fears that the region's largest growth engine has moved into reverse, thereby acting as a drag on the region at the same time as particularly steep downturns persist in France, Italy and Spain," Williamson added.

Related: China manufacturing expansion slows

French private sector output continued to contract in April, although the pace of decline slowed.

Markit said its April PMI data pointed to a contraction in the eurozone economy of 0.4%, compared with 0.2-0.3% expected in the first quarter of the year.

The International Monetary Fund cut its 2013 forecast for the eurozone economy last week, saying it expected gross domestic product to contract by 0.3%. The European Central Bank is slightly more pessimistic, predicting a fall of 0.5% this year.

European policymakers continue to predict a gradual recovery in output in the second half of the year but are coming under growing pressure to relax a policy of austerity that has contributed to a sharp loss in domestic demand.

Recession in Germany would remove one of the few sources of eurozone growth at a time when the global outlook is also deteriorating. New car sales in Germany fell by 13% in the first quarter of 2013, suggesting a loss of confidence among consumers as well as businesses.

First Published: April 23, 2013: 6:19 AM ET

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U.K. moves to block Europe's Tobin tax

The U.K. is going to court to try to stop 11 EU states implementing a financial transactions tax.

LONDON (CNNMoney)

The U.K. has challenged the proposal at the European Court of Justice, the EU's highest court, just days after the world's leading financial centers wrote to G20 finance ministers urging them to oppose the tax or risk damaging feeble economic growth.

The U.K. government said it wasn't opposed in principle to a global tax on trading but believed the EU proposal would hurt jobs and growth and hit savings and pensions.

"While we will not participate in a Europe-only tax, we have also said we will not stand in the way of other countries, but only if the rights of countries not taking part are respected," said a U.K. Treasury spokesperson, adding that the proposal did not meet those requirements.

Many European governments are desperate to identify new sources of revenue to plug holes in their budgets, made larger by the recession, without placing further burden on individuals. They also face popular pressure to ensure the banking industry pays a bigger share of the cost of dealing with the economic fallout of the financial crisis.

Such levies are often dubbed "Tobin taxes" after Nobel Prize winning economist James Tobin, who proposed taxing foreign exchange transactions in the 1970s to curb speculation.

Even though the U.K. won't participate, opponents argue the tax will push up the cost of trading because it will be levied on transactions with EU banks operating in London, and the higher costs will be passed on to companies and individuals.

Financial industry lobbyists are fighting back. In the joint letter to the G20 meeting last week, associations representing New York, London, Hong Kong and other major markets said the proposed tax would hurt the world economy at a time of significant uncertainty.

Eleven EU countries agreed to enact the tax to raise billions of euros from the financial services industry and deter speculation. It's the first time the EU has introduced a new tax without the support of all members.

The Association for Financial Markets in Europe, one of the signatories to the G20 letter, welcomed the U.K. decision to mount a legal challenge.

"All the evidence shows that the tax will have serious harmful economic effects," the association's chief executive, Simon Lewis, said in a statement.

The countries planning to introduce the tax include the eurozone's top four economies -- Germany, France, Italy and Spain. They decided to press ahead after attempts to get EU-wide agreement failed.

While the tax is only set at 0.1% of financial transactions and 0.01% of derivatives, analysts say it could have big economic consequences that will reverberate around the world. If levied on each party to a transaction, the costs could spiral out of control.

The tax will apply to all transactions where the buyer or seller resides in one of the 11 nations, and also if a security is issued in one of participating countries.

First Published: April 22, 2013: 8:56 AM ET

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Solar jobs outnumber ranchers in Texas, actors in California

A new map tallies up the number of solar-energy workers in each state.

NEW YORK (CNNMoney)

Those stats come from solar research group The Solar Foundation, which rolled out a map last week showing which states have the most solar jobs. Unsurprisingly, sunny states like California and Arizona are near the top of the list. But some Northern states like New Jersey and Michigan -- not known for their splendid weather -- also show a high number of solar jobs.

What those states lack in climate they make up for in high electricity prices and favorable tax and regulatory policies, which attracts solar developers, said Andrea Luecke, executive director of The Solar Foundation.

Solar supporters are going on the offensive about their field's jobs angle. The industry receives considerable government support, and talking about its employment advantages broadens the conversation beyond global warming.

Related: China trounces U.S. in green energy investments

In addition to tallying up solar jobs by state, The Solar Foundation's map contains information like how many solar companies are headquartered in each state and what their local workers are doing.

Nationwide, nearly half of all solar works are employed installing solar panels. That job pays about $18 an hour, or nearly $38,000 a year -- a bit more than the median national wage of $34,750, according to the Bureau of Labor Statistics. (BLS was the source the Solar Foundation used for its numbers on coal miners, actors and ranchers. The agency confirmed the numbers, though it said its own survey could miss workers in those industries who are self-employed or mis-categorized.)

About a quarter of the nation's solar workers are employed in solar panel manufacturing, while most of the rest do development, sales and marketing.

Wyoming has the fewest solar workers, at 50. Utah is billed as the biggest underachiever, employing just 290 workers despite being the 7th sunniest state in the country.

Nationwide, the solar industry says it employs 119,000 people, up 13% from the year before -- one of the fastest growth rates for any industry.

It's a stat that the industry's supporters like to tout.

Like many energy sources, solar receives support from the federal government. In 2010, more than $1 billion in federal money went to the solar industry, according to the Energy Information Administration. The funds cover a variety of initiatives, including job training programs, tax breaks amounting to 30% of a project's cost, and federal loan guarantees.

"There's been so much controversy around investment in green jobs," Luecke said. "People want to see the results."

First Published: April 22, 2013: 9:21 AM ET

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Stocks: More earnings on deck

NEW YORK (CNNMoney)

The Dow Jones industrial average and S&P 500 edged slightly lower, while the tech-heavy Nasdaq rose 0.3%.

The Dow's decline was led by shares of General Electric (GE, Fortune 500) which fell 2% after JPMorgan Chase downgraded the stock to neutral.

Technology stocks were big gainers Monday. Shares of Microsoft (MSFT, Fortune 500) rose 3% after CNBC reported that hedge fund ValueAct was going to announce it was taking a $2 billion stake in the company. That would make ValueAct Microsoft's biggest shareholder.

Caterpillar (CAT, Fortune 500), considered a bellwether for the global economy because of its size and reach, missed earnings and revenue forecasts. The mining and construction equipment maker also trimmed its earnings outlook for the year, citing a slowdown in mining. Despite the weakness, shares of the Dow component rose slightly higher.

Shares of Netflix (NFLX) were up more than 4%. The company, which is hoping for a boost from its "House of Cards" video series, is on deck to report earning after the close.

Meanwhile, oil services firm Halliburton (HAL, Fortune 500) handily beat earnings and revenue estimates. The stock climbed more than 3%, making it among the top gainers in the S&P 500.

Analysts expect earnings for S&P 500 companies to rise by 2% for the first quarter, according to S&P Capital IQ. But earnings season is far from over. So far, 104 S&P 500 companies have reported, with 70 beating forecasts, 23 missing and 11 coming in in line.

Aside from earnings, shares of Power One Inc. (PWER) surged more than 50% after Swiss company ABB (ABB) agreed to buy the solar power company in a $1 billion deal.

Related: Fear & Greed Index firmly in fear

Investors will also get another glimpse into the health of the housing market Monday, when the National Association of Realtors releases the latest data on existing home sales at 10 a.m. ET. Housing reports have been somewhat mixed lately, giving investors reason to pause.

Gold may be back in the spotlight. After last week's rout, the precious metal was up 2%, to $1,426 an ounce. That helped push the SPDR Gold Shares Trust ETF (GLD) up almost 2%, and shares of gold miner Randgold (GOLD) spiked almost 5%.

U.S. stocks finished higher Friday, though all three major indexes suffered their worst week of the year so far, dropping more than 2%.

European markets were higher in afternoon trading, supported by hopes that Italy may soon have a new government after President Giorgio Napolitano was elected for a second term. Asian markets were mixed, with the Shanghai Composite declining 0.1% and the Hang Seng adding 0.1%.

Japan's Nikkei rose 1.9% and the yen fell to almost 100 against the U.S. dollar after the G-20 gave its blessing to Japan's new monetary policy experiment.

The dollar rose against the euro, and was flat versus the British pound and the Japanese yen.

Oil priced edged slightly higher.

The price on the 10-year Treasury edged up, pushing the yield down to 1.69% from 1.70% late Friday.

First Published: April 22, 2013: 9:57 AM ET

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Next-generation ATMs boast video chat, exact change

Bank of America is rolling out Teller Assist machines that allow customers to video chat with bank tellers and receive exact change down to the penny.

NEW YORK (CNNMoney)

By investing in "new-fangled ATMs," banks are hoping to keep customers coming back and cut costs at the same time, said Mark Schwanhausser, a senior financial services analyst at Javelin Strategy.

It costs banks an average of $1.25 to conduct an ATM transaction, compared to $4.25 each time a customer makes a transaction with a teller at a branch, Javelin found. And while costs may rise for more advanced ATMs, it's still likely to be cheaper than in-person banking, said Schwanhausser.

Plus, ATMs that perform many of the functions that tellers do could allow banks to reduce staffing. "But they're not looking at it as a way to replace tellers completely -- it's a way to give the customer the choice," he said.

Related: ATM fees on the rise

At Bank of America (BAC, Fortune 500) new Teller Assist machines, for example, you can swipe your debit card, credit card, driver's license or photo ID for authentication and then a live teller -- physically based in Delaware or Florida -- pops up on the screen to assist you.

You can then cash checks and receive exact change down to the cent. You can also withdraw cash in $1, $5, $20 and $100 bills. And soon, you'll be able to split deposits between accounts and make loan and credit card payments. To perform most of the more advanced functions, you need to be video chatting with a teller. But you can always perform standard transactions -- like getting $40 -- without connecting to an agent.

The bank says the machines will be able to perform about 80% of the services a traditional teller can, and they will be open longer than traditional bank branches -- from 7 a.m. to 10 p.m. on weekdays and 8 a.m. to 5 p.m. on weekends. Currently in 12 locations in Boston, the bank plans to place the ATMs in branch lobbies, 24-hour areas and drive-through locations across the country this year.

Related: Say goodbye to more bank branches

Earlier this year, Citi (C, Fortune 500) unveiled new Citibank Express machines in Asia that allow customers to log in using their fingerprints and open accounts and apply for loans and credit cards using videoconferencing. They may also eventually be able to print new credit and debit cards. The bank plans to expand the machines globally later this year, though it won't reveal specific countries yet.

Meanwhile, Wells Fargo (WFC, Fortune 500) is introducing ATMs with 19-inch screens that will be open 24 hours and dispense $1, $5, $20 and $100 bills, instead of only $20 bills like traditional ATMs. The first new ATM was opened in Washington, D.C., on April 15, and the bank plans to expand to other U.S. locations.

It is also updating the interface on existing ATMs so that screens are personalized for each customer -- for example, it will give you the option to withdraw $80 right away if that's the amount you typically request and it will show you how much cash you've taken out over the past month.

Related: New ATMs dispense $1 and $5 bills

Chase (JPM, Fortune 500) also has a new model of ATM that allows customers to receive exact change and to pay credit card bills. It has opened about 650 of these "self-service kiosks" so far and plans to have around 900 by the end of the year. It is currently piloting the option of dispensing coins in addition to bills and is "evaluating options" regarding videoconferencing services.

PNC (PNC, Fortune 500), meanwhile, has upgraded more than half of its 7,200 ATMs over the past year to dole out change down to the dollar.

Schwanhausser said he wouldn't be surprised to see a growing number of banks investing in more advanced ATMs.

"If people gravitate toward that and there's enough volume there, I would expect ATMs to take on a greater roll in banking," he said.

First Published: April 22, 2013: 6:05 AM ET

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