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6c844444c98a1d060d9c60900e49d652 | https://www.cnbc.com/2015/01/21/porn-industry-embraces-plus-sized-business.html | Porn industry embraces plus-sized business | Porn industry embraces plus-sized business
VIDEO1:5601:56Porno for the plus-sized is (ahem) getting biggerAdult Entertainment Expo 2016
The porn industry has a long history of spotlighting women with Barbie-like figures and impossible proportions. But just as pop culture began to feature women with more natural figures in TV, movies and advertising, the adult industry began to realize that its stars don't all have to be a size 0, either.
In the past year, Wicked Pictures produced a sex education video for plus-size people, which went on to become one of the fastest-selling titles in the line. Another studio, New Sensations, saw success with its plus-size feature films.
"Back up 20 or 30 years ago and the mindset or the cultural perception was that porn is all pretty blonde people," says Dr. Chauntelle Tibbals, a sociologist who studies the adult entertainment industry. "Now, with body positivity getting into our cultural lexicon, a lot of different women are coming to the industry and saying, 'I'm here to be a performer and I look like this.'"
Read MoreMore coverage of the Adult Entertainment Expo
The focus on plus-size women hasn't been contained to adult film studios, either. Several sex toy manufacturers, including Rapture Novelties and Pipedream Products, have begun manufacturing products for larger customers, as well. And adult toy company Sportsheets (which in 2013 was named one of the country's fastest-growing private companies by Inc.) rolled out a line of products for plus-size patrons last year.
"We've always known it has been an unaddressed consumer in our industry, but it's half the population," says Julie Stewart, president of Sportsheets. "So we decided to take a look at that and see what we could develop. ... The response was great. I think people were excited that someone in the industry was recognizing that there was a plus-size market and they have the right to healthy sex lives, too."
Plus-size porn is nothing new in the industry. It has been a fetish genre for many years. But in 2007, around the same time that the societal focus on body image came to the forefront of the national conversation, the genre began to move away from fetish and more toward the mainstream porn world.
Still, there's inequality for the performers. Plus-size stars are paid less per scene than traditional porn stars, says Jessica Drake, a performer for Wicked Pictures and creator/director of the "Jessica Drake's Guide to Wicked Sex" line of sex education films.
And many plus-size films use titles like "Whale Watchers" or "Scale Bustin' Babes."
Read MorePorn expands around the world
"Plus-size porn has been around for a long time, but it's not a constant genre," says Kelly Shibari, one of the most recognizable plus-sized performers. "It has been kind of like what mainstream film does. You're the comic relief. You're never naked or you're humiliated."
Last year, though, Shibari and Drake teamed up for "Guide to Wicked Sex: Plus Size Sex," which became the best-selling installment in the series' history. Shibari was also on the cover of Penthouse Forum (the first plus-size star to do so in that publication's 40-year history) and the principal star in a DVD for New Sensations, one of the industry's largest studios.
The rise in plus-size porn comes as people get bigger on the whole. In 2013, 154.7 million Americans, age 20 or older, were overweight, according to the American Heart Association. As more of those people watch porn, they're interested in seeing people like themselves, rather than idealized physical specimens.
"Larger women see plus-size porn performers having fun and looking gorgeous and get (a) confidence boost," says Shibari. "I have a lot of fans who are couples who send me a message saying, 'Thank you. Now I can enjoy sex with my partner.' "
Drake agrees. "When I'm doing seminars and workshops, that's my audience," she says. "I think that's more of the norm."
The increased popularity of plus-size performers, however, doesn't mean the end for traditional porn stars.
Read MoreThe Dirty Dozen: Porn's top stars
"The industry is changing, but it's not that we're swapping out one performer for another," says Tibbals. "It's that the consumer base is expanding, and we're getting new [audiences] involved."
Despite the new popularity of plus-size porn, there's a question of whether this new audience will sustain interest. Drake and Tibbals both feel the genre's popularity will continue, but Shibari says she's less optimistic, based on talks with other plus-size performers and her own upcoming work schedule.
"I hate to say it, because I don't want to be a wet blanket," she says, "but I think we've peaked or we're going to peak in the next 12 months."
Regardless of whether plus-size porn films continue to be popular, Sportsheets' Stewart says there's a big future for the category in other areas of the industry.
"I think the consumer will stay, and they're going to be looking for quality," she says. "We see this as an area worth investing in and its a consumer that's going to have brand loyalty. ... They're looking for something that speaks to them in a positive way."
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079e213e48831b61b763a34fcefab02c | https://www.cnbc.com/2015/01/22/after-ecb-greek-elections-the-next-market-hurdle.html | After ECB, Greek elections the next market hurdle | After ECB, Greek elections the next market hurdle
VIDEO1:5801:58Radical leftist in Greece's future?Fast Money
With the European Central Bank signing up for a large bond-purchasing program, the next obstacle for the European Union is the election in Greece.
Greek voters elect a new parliament on Sunday, with the anti-austerity opposition party Syriza favored to win, but without an overall majority.
"For all markets, if they gain control, all bets are off. We do not think it is possible for Greece to exit the EU. Or they could if they want to commit sovereign suicide," John De Clue, chief investment officer at the private client reserve at U.S. Bank Wealth Management, said.
The polls put Alexis Tsipras and Syriza ahead of the ruling New Democracy party of Greek Prime Minister Antonis Samaras.
Tsipras has vowed to convince the ECB and euro zone to write down the value of their Greek debt holdings to allow him to increase public spending and stimulate job growth.
"There is a good chance they could win, and if they begin moving away from fiscal austerity, other members of the EU are going to say: 'No more lending, no more life support.' On Monday morning you'll know," De Clue said.
"It's one thing when a country debases its currency, but imagine if all of a sudden, Greece is not using euros any more, what does that mean? They would have a run on banks," De Clue said.
Markets will find it difficult not to stumble if Tsipras wins a majority, as it could reignite talk of a European meltdown, and could specifically be the reason that the ECB made its bold move Thursday, in anticipation of Greece, De Clue said.
The Greek elections bring an "air of uncertainty" to global markets but will probably be a "nonevent," Bruce Bittles, chief investment strategist at RW Baird & Co., said.
"Syriza no longer wants to leave the euro, and Europe is less vulnerable to a Greek exit than three years ago. However, any further crisis in a peripheral country is clearly unwelcome in a region which is long overdue for an economic recovery," David Kelly, chief market strategist at J.P. Morgan Funds, wrote in emailed commentary.
After borrowing nearly $278 billion from the EU and International Monetary Fund, it'll be up to the next Greek government to negotiate a final bailout tranche.
The worst economy in the euro zone is tied to a bailout accord that gives it financial aid in exchange for regular inspections by the IMF, the European Commission and the ECB reforms put in place in large part due to Germany.
"Going into the weekend, (if) the Syriza party does win the election and we have a gridlock situation between Greece and its lenders. This situation is perfectly capable of elevating the volatility in the market towards its peaks and erasing all the gains which could have taken place as a result of the ECB's QE announcement," Naeem Aslam, chief market analyst at AvaTrade, said in an email.
ECB President Mario Draghi said on Thursday that the ECB would not hold more than 33 percent of the debt of a single issuer, an edict that excludes Greece from accessing the ECB's bond-buying program until at least July.
The ECB since 2010 has taken Greece's junk-rated government debt and state-backed securities as collateral in its refinancing operations so long as Greek goes along with austerity steps and reform promises made in a rescue agreement with the euro zone and the IMF.
Regardless who wins the election, the heightened unease between Athens and its creditors means that either Tsipras or Samaras will find a tough road in satisfying Europe and the IMF without politically unpopular moves at home.
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fe71adc899f838402a3dc9979c6dc4cf | https://www.cnbc.com/2015/01/22/cost-questions-prevent-people-from-using-health-insurance.html?trknav=homestack%3Atopnews%3A6 | Bad medicine: Costs, ignorance plague health insurance users | Bad medicine: Costs, ignorance plague health insurance users
A large minority of people who have health insurance aren't sure what's covered by their plans.
And too many people with insurance are still afraid to use it because of worries about the costs they believe they will face from going to the doctor—despite the fact that a sizable fraction of them have a chronic condition, according to the results of a new survey.
Hero Images | Getty Images
All of those findings, outlined in a survey released Thursday by SCIO Health Analytics, are a worrisome counterpoint to the fact that many previously uninsured Americans are now getting health coverage due to provisions of the Affordable Care Act.
The results suggest that the benefits of providing people with health coverage are lessened to a certain degree by people not using that coverage correctly, and thus incurring unnecessary health costs down the road.
Read MoreLack of 'strategy' at Obamacare site
"These findings are particularly relevant at this time as millions of Americans are once again deciding their annual health-care benefit options through open enrollment," said Siva Namasivayam, CEO of SCIO Health Analytics, whose customers included major insurers, pharmacy benefit managers and other health-care organizations.
"While Americans are spending time researching health plans, the survey reveals a significant knowledge gap in the specifics of their health-care options that may lead to unnecessary risks and costs," Namasivayam said.
SCIO's survey was conducted online by Harris Poll, which questioned more than 2,000 people age 18 and older, 1,872 of whom reported having health insurance at the time. The survey was taken about two weeks before open enrollment began on government-run Obamacare health insurance marketplaces.
The poll found that 38 percent of respondents lack a good understanding of the health services covered by their current insurance plan. That is the equivalent to some 84 million Americans. Young adults were almost twice as likely as adults age 65 and older to say they didn't have a good understanding of their plan's scope, according to the survey.
The poll also found that 20 percent of respondents said they had "avoided visiting a doctor for a general health concern within the past 12 months because of cost concerns." Men were significantly more likely to avoid doctors' visits because of cost worries than women.
SCIO noted that about half of U.S. adults have at least one chronic condition, such as heart disease, asthma or diabetes. The findings suggest that as many as 16 million adults with chronic conditions who could benefit from health-care treatment have skipped going to the doctor because they are worried about cost.
Given the fact that "treatment costs for Americans with chronic conditions are already around $277 billion annually," the company said, if people avoid getting treatment for them, there are increased risks of complications, emergency room visits, hospitalizations and other consequences "that could potentially drive health-care costs even higher."
Those worries are not necessarily based on a firm understanding of the costs, the poll found.
Read MoreHow to avoid paying Obamacare taxes
Almost half of the respondents in the survey, 44 percent, did not know what costs they would incur out-of-pocket for prescriptions drugs, such as co-pays, as opposed to what would be covered by their insurance plans.
And more than 61 percent of respondents said they did not know the costs they would face if they sought treatment from an urgent care or walk-in clinic facility.
Namasivayam told CNBC that his company's customers were "definitely worried" even before the survey that newly insured people and others with low-levels of health-care literacy would be making poor decisions related to their health.
"It's big time," Namasivayam said of those concerns. "Because you now cost more [to insurers]. You are delaying the inevitable."
"The prevention costs and the costs of taking good care of themselves is actually less than the person ending up in the ER 12 or 24 months down the road," he said. "They are going to cost you maybe five to 10 times more than the cost of prevention and the cost of care."
Namasivayam spoke Wednesday, hours after the Obama administration had announced that 7.15 million people have already enrolled in insurance effective this year on HealthCare.gov, the federally run marketplace that serves 37 states. That pace suggests that 10 million or more people will be enrolled nationally by the close of enrollment Feb. 15.
"I think that people are signing up, but people are signing up without having [a] clue about what they're getting into," he said. "The whole communication and literacy issue is a major hurdle. ... Are you telling them what they need to know? Are you really driving them to be healthy?"
The enrollment surge and the reduction in the numbers of uninsured people nationally "could be a short-term gain," Namasivayam said.
Read MoreTop Obamacare official Tavenner calls it quits
"But we may be paying in the long term if that literacy is not taken to the next step," he said.
Namasivayam said he didn't fault insured people for having difficulty figuring out their health-care plans, which he noted includes terms like out-of-pocket costs, co-insurance and co-payments are part of an often-complicated formula for determining what share of medical services are the responsibility of the health plan versus the customer.
"You almost need a Ph.D. in health-care economics to understand all this mumbo-jumbo," he said.
While the media has paid significant attention to Obamacare, particularly during its first enrollment season last year, that hasn't translated into widespread understanding of the health-care system, according to the survey's results.
Sixty percent reported that they do not have a better grasp of how the health-care system works despite that coverage.
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e6c69077505f35667ab8304ddcdd931e | https://www.cnbc.com/2015/01/22/davos-blog-europe-stimulus-the-hot-topic.html?trknav=homestack%3Atopnews%3A1 | Today's blog: Markets cheer after ECB confirms massive QE | Today's blog: Markets cheer after ECB confirms massive QE
Policymaking dominated the second day of the World Economic Forum in Davos, Switzerland, after the head of the European Central Bank (ECB), Mario Draghi, confirmed a full-blown government bond-buying program in the region.
The ECB said it would buy 60 billion euros ($70 billion) of private and public bonds each month until September 2016. Earlier, it opted to keep interest rates unchanged.
News of the program—which was larger than expected—moved markets, with stock indexes, bond prices and currencies reacting in Europe and across the world.
Read on to see how we covered the breaking news and reaction from Davos and beyond (mobile users click here):
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094b171989f99eade295a7bbd55ff516 | https://www.cnbc.com/2015/01/22/ecb-holds-rates-markets-on-edge-on-qe-hopes.html | Open-ended European QE starts 'with a bang' | Open-ended European QE starts 'with a bang'
VIDEO1:3301:33ECB QE begins in MarchSquawk Box
VIDEO2:1402:14Is ECB's big bond move too small?Squawk Box
VIDEO3:0203:02ECB leaves interest rates unchangedSquawk Box
VIDEO1:3901:39ECB QE: Germany will benefit the mostWorldwide Exchange
VIDEO2:4402:44ECB must 'play catch up' with QEWorldwide Exchange
VIDEO2:5302:53ECB has 'no other choice' than QE: CEOWorldwide Exchange
European Central Bank (ECB) President Mario Draghi announced the launch of an open-ended, expanded monthly 60 billion euro ($70 billion) private and public bond-buying program on Thursday.
The long-anticipated introduction of euro zone government bond purchases, which could amount to as much as a trillion euros, will mean the ECB will join the U.S. Federal Reserve, Bank of England and Bank of Japan in launching a quantitative easing (QE) scheme.
The program will be open-ended, lasting until at least 2016, Draghi told reporters at his regular media conference on Thursday, and will start in March this year. The hope is that it will boost the region's painfully low inflation rate, which came in at an annual minus 0.2 percent in December.
Explaining the ECB's decision, Draghi said: "Inflation dynamics have continued to be weaker than expected. While the sharp fall in oil prices over recent months remains the dominant factor driving current headline inflation, the potential for second-round effects on wage and price-setting has increased and could adversely affect medium-term price developments."
The size of the program was bigger than the 50 billion euro per month rumored prior to Draghi's announcement.
Read MoreLive blog: Markets cheer European QE
"European QE is set to start with a bang rather a whimper, a fact that will be well received by investors," said Nancy Curtin, CIO of Close Brothers Asset Management, in a research note after Draghi's announcement.
"The euro zone was in need of shock-and-awe tactics from the ECB to combat the prospect of a prolonged period of deflation, and Draghi has finally delivered on his promise to do 'whatever it takes'."
The ECB will purchase euro-denominated investment-grade securities only. The debt of countries like Greece, which are subject to international bailout programs, will be subject to "additional eligibility criteria," Draghi said.
Debt that is trading with a negative yield will also be eligible for the program. Draghi also said that in the event of a sovereign restructuring or default, public and private bondholders would be treated on equal terms.
Twenty percent of the additional purchases will be subject to risk-sharing arrangements, designed to limit the amount of risk the ECB takes on to its balance books. The majority of risk will remain with euro zone national central banks.
No more than 25 percent of each debt issue will be purchased. The maturities of the debt purchases will range between two and 30 years.
The euro slid against both the sterling and the U.S. dollar after Draghi's announcement. Europe's stock markets staged a small rally on the news of the announcement, while 10-year yields on a range of European sovereign debt fell to record lows.
Earlier in the day, the ECB announced it would hold its main interest rate unchanged. It kept its main refinancing rate at 0.05 percent, with the rate on its marginal lending facility at 0.30 percent. The rate on its deposit facility was held at -0.20 percent.
Meanwhile Denmark, whose currency is pegged to the euro, was forced to issue its second rate cut in a week in a bid to defend the krone. The Danish central bank trimmed its deposit rate from minus 0.2 percent to minus 0.35 percent.
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cde4d69a845a629778b7573f3e46cb17 | https://www.cnbc.com/2015/01/22/ences-coming-soon-to-your-living-room.html | Tech conferences coming soon to your living room | Tech conferences coming soon to your living room
VIDEO2:3602:36Sundance draws virtual attendeesEntertainment
The Sundance Film Festival attracts more than 40,000 people every year to showcase some of the most prized independent movies. But space is limited and getting to Park City, Utah, in the dead of winter can be a hassle.
So when Silicon Valley start-up Blue Jeans Network came calling with a cloud-based video offering that could potentially help the festival reach many more virtual attendees, Sundance Institute Chief Technology Officer Dave Ginsberg was all ears.
"We reach a lot of people though our programs, but we want to get to the point where you're not limited by geography to be able to enjoy what we provide," Ginsberg said in an interview ahead of the festival, which started Thursday and runs to Feb. 1.
Sundance is piloting a Blue Jeans product called Primetime, which was unveiled in December. For this year's festival, the Blue Jeans technology will be used to stream a very limited slice of the event, but Ginsberg hopes it becomes more integral next year and a bigger part of the Sundance Institute's other events and projects.
Read MorePolycom priced for perfection?
Primetime was designed to make it simple for any event to widely broadcast its live activities over the Internet. While webcasting has been around for two decades, it's lacked the social and interactivity piece to engage with dozens, hundreds or thousands of people in remote locations.
Blue Jeans, founded in 2009 to take on Cisco and Polycom with Web-based videoconferencing technology, is jumping into the events space and aiming to change how conferences reach the masses.
At Primetime's core is the ability for a remote attendee to raise his or her hand virtually and be called upon by a moderator. A person at home on a laptop, tablet or smartphone can be brought to the big screen to ask a question.
"We're marrying videoconferencing and broadcasting and then getting the audience involved in an interactive fashion," said Blue Jeans Chief Executive Officer Krish Ramakrishnan, who worked at Cisco before starting the Mountain View, California-based company. "We're changing how events are actually marketed."
VIDEO1:0801:08Power to create your own cloudTech Crowd
Blue Jeans has raised about $100 million in venture funding from investors like Battery Ventures, New Enterprise Associates, Accel Partners and Norwest Venture Partners.
At the time of Primetime's launch last month, Blue Jeans said it had 20 trial customers using it, including Red Hat and the University of Pennsylvania's Wharton School of Business. TEDx will be using the technology for conferences this year, and Ramakrishnan said he soon hopes to engage in discussions with South By Southwest, the Austin, Texas megafestival held in March that includes music and film galas as well as a tech conference.
Sundance will feature Primetime for a few sessions. The first is on Monday for the premier of the documentary "Most Likely to Succeed," about a tech-focused high school in San Diego that's offering a new educational model.
Read MoreCisco sued Arista to protect innovation: CEO
As the movie is being shown at the festival, students at the San Diego school will get to watch it and then be brought into a panel discussion with the producer, writer and others involved in the film. Some high schools in Utah will also be part of the discussion remotely.
Primetime will then be used to broadcast to a select group of people a panel on Wednesday focused on how companies are producing films for modern audiences. And Blue Jeans will have a lounge on Main Street in Park City for events including a discussion on women in film.
"We're starting small and over time hoping that we can build it out," Ginsberg said. The hope is to "build this more into structure of our festival and utilize the technology for everything it can do."
Primetime will be priced based on size and duration, with a typical 1,000 person one-hour event costing about $3,500. However, for the next 60 to 90 days, Blue Jeans isn't charging users.
Read MoreProfiting in the cloud
"Even though we've run the product for months, until we have these first marquee events, it's hard to get someone to take that leap of faith and jump in," said Stu Aaron, the company's chief commercial officer.
While the technology has all sorts of potential applications in entertainment, sports and education, actually broadcasting films from Sundance to a wide audience may not be in the cards.
As much as the festival wants to bring its content to as many people as possible, the legal issues around streaming movies and the risks of potential piracy create some limitations.
"We're always interested in making sure filmmakers have control over the product," Ginsberg said.
Correction: An earlier version of this story misspelled Ginsberg's name.
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113eab4c41b7ea052a134a285beab699 | https://www.cnbc.com/2015/01/22/verizon-posts-earnings-of-71-cents-a-share-vs-72-cents-estimate.html | Verizon revenue rises as retail postpaid subscribers increase | Verizon revenue rises as retail postpaid subscribers increase
A pedestrian talks on a mobile phone as she walks past a Verizon Wireless retail store in Washington, D.C.Andrew Harrer | Bloomberg | Getty Images
Verizon's quarterly revenue rose 6.8 percent due to an increase in subscribers who pay for services after use, and a rise in average revenue per account as users added more devices to shared data plans.
The company, however, reported a loss of $2.15 billion, or 54 cents per share, for the fourth quarter compared with a profit of $7.92 billion, or $1.76 per share, a year earlier, mainly due to valuation of benefits plan and pension adjustments.
Shares in Verizon dipped slightly to $47.95 in premarket trading after closing at $48.25 on Wednesday.
Excluding items, Verizon earned 71 cents per share, matching Wall street estimates, according to Thomson Reuters I/B/E/S. Revenue rose to $33.19 billion from $31.07 billion, slightly higher than analysts' expectations of $32.69 billion.
Verizon's retail postpaid average revenue per account rose to $158.82 from $157.21, but was below $161.64 estimated by analysts polled by research firm StreetAccount.
The company added a net 2 million postpaid subscribers, more than the 1.5 million subscribers it added last quarter and 1.65 million subscribers it added in the same quarter a year ago.
VIDEO2:1502:15Faber Report: Verizon trending right way
Customer defections, known as churn, in postpaid accounts rose to 1.4 percent. Verizon had warned earlier this month that heavy competition and promotional offers in the holiday season would increase its churn rate both from last year and the last quarter.
Total revenues in its wireless business grew 11 percent from a year ago but dropped 1.6 percent for its FiOS Internet and video product business.
Barclays slashed its Verizon rating from "equal weight" to "overweight" on Wednesday, while Evercore also downgraded its stock from "hold" to "buy" recently.
Verizon's CEO, Lowell McAdam also fended off rumors of the company buying New York City-based AOL. "I think AOL, along with lots of other media companies, are potential for us to do partnering, commercial basis or whatever," McAdam said at the Citi Media Conference on Tuesday, Jan. 6. "But to say we are having significant acquisition discussions is not accurate."
The stock has been under performing since mid-December in comparison to the rest of the Dow Jones Industrial Average, including telecom rival AT&T.
Click here to see what Verizon shares are doing before the bell.
—CNBC contributed to this report
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258e18946628a13455c3441e9f32c481 | https://www.cnbc.com/2015/01/23/box-surges-despite-wall-street-skepticism.html | Box surges despite Wall Street skepticism | Box surges despite Wall Street skepticism
VIDEO2:0802:08Box CEO: Once in a lifetime transition to cloud
VIDEO2:3102:31Have a 103 percent net retention rate: Box CEO
VIDEO1:1401:14How Box makes money
The biggest misunderstanding about enterprise cloud company Box is that it's in the consumer space, CEO and co-founder Aaron Levie said Friday, after the start-up's stock surged in its IPO.
In fact, Box works with about half of Fortune 500 companies at a time when the nature of computing in business is fundamentally changing, Levie told CNBC.
"Box helps manage corporate data and corporate information for the world's largest companies," he said in a "Squawk on the Street" interview. "The most important point is that we are participating in once-in-a-lifetime transition from on-premise computing to cloud computing."
Read MoreHere's what the 2015 tech IPO pipeline looks like
Shares of Box traded up as much as 70 percent in its trading debut Friday. The company priced its shares at $14 on Thursday evening, above expectations.
Box focuses on digital storage, file sharing, and content collaboration. The company has not yet turned a profit.
Investors interested in buying into Box should understand that enterprise technology is transitioning to a new platform and the company is focused on the profitability of deals with individual customers, Levie said.
He said Box expects to grow as both new and existing customers continue to expand their deployment of its services. The company has a 130 percent net retention rate, which means that customers who expand their use of the service more than offset those who drop it, he added.
See Levie's tweet
Asked about the high cost of attracting new customers, Levie said: "We're going after a market where tens of billions of dollars are spent every year in the legacy technology, and what we're trying to do is capture the value there and acquire customers, which is why we're spending that money."
Customers are roughly profitable after two years, he added.
Read MoreCramer: The Box IPO—call your broker immediately
Despite its many rivals, Box remains confident about its own strong competitive advantages. In particular, the company says its tools allowing workers to share files and folders in the cloud are the most secure and easy to use.
A lot of companies agree. Box boasts 44,000 paying organizations, including a wide range of industries, from General Electric to Eli Lilly.
—CNBC's Josh Lipton contributed to this report.
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32020a9326c9f957779fbdd16e119387 | https://www.cnbc.com/2015/01/23/how-much-43-hot-dogs-at-davos.html | How much? $43 hot dogs at Davos | How much? $43 hot dogs at Davos
VIDEO1:4701:47Davos, home of the $43 hot dogDavos - World Economic Forum
Brother, can you spare $100...for lunch?
Full of global leaders, policymakers, business gurus and the odd music star, the attendees at the World Economic Forum (WEF) at Davos aren't short of a dollar or two. But they might well be at the end of the week—with some of the food prices around town proving to be a little hard to stomach.
At the posh Steigenberger Grandhotel Belvédère, a conference hotspot, even humble menu items can be astronomically pricey. A hot dog with pickles, fried onions and mustard is priced at 38 Swiss francs (about $43.50). It's 48 Swiss francs for a chicken Caesar salad with parmesan (about $55). Separately, a draft beer at a local restaurant—in a pint-sized glass—can cost 6.50 Swiss francs, about $7.50.
Lawrence Delevingne | CNBC
Some items seemed priced just for the billionaires floating around WEF but it's a very different mood in the nearby shopping promenade.
Bruna Minelli runs a women's clothing shop. The knitted couture that she sells comes from Italy, meaning the sudden appreciation of the Swiss franc last week - and the cheaper euro - has left her with more than a few problems.
"It has really affected us," she told CNBC. Her current stock has been discounted, although January sales means this is usually the norm, but she said that her next batch would be priced 20 percent lower. With the euro being cheaper, customers of the town of Davos are likely to pick up a bargain in the coming months.
This might seem like a bonus for everyone, but the story doesn't end there.
Davos is primarily a town for tourists. Outside of the World Economic Forum's week, people flock to ski and stay at the hotels and the ski chalets that surround the promenade. In the summer, hikers and walkers take to the hills to take in some of the most pleasant scenery the Swiss Alps has to offer.
And this is where the problem lies with Minelli explaining that a majority of the tourists come from Germany and Austria. With a Swiss franc that's now around 30 percent stronger against the euro than it used to be, there's a real concern that these tourists won't be flocking anywhere near Switzerland, let alone the town of Davos.
Further down the promenade, it was similar story. The owner of Idea Due Mode Davos told CNBC that the lack of snow at the beginning of winter had already negatively affected the town. Her clothing is bought from Paris and was also looking to discount her goods if needed, although she said that some loyal local customers would help prop up her sales. She also spoke of rivals that bought their foreign goods in Swiss francs and, therefore, were currently losing out.
Image by CNBC's Matt Clinch
The retailers are now all anxiously waiting on whether the hotel rooms will stay full during the year and for next season, with the summer traditionally being a quieter period for tourists.
At the check-in desk at the Hotel Europe Davos, in the center of town, there was no talk of cutting prices and with the policy announcement by the Swiss National Bank only last week, it's still too early to tell whether the holiday goers have been put off.
Looking further along the town, it becomes clear that shopping in Davos is catered squarely for tourists. There's a shop selling luxury watches, several sunglass stores, cafes, restaurants, bars and boutique clothing stores.
In the local supermarket the mood was very different, selling mainly Swiss food and drink, prices had not gone up or down and were unlikely to anytime soon, according to staff at the Coop. A constant flood of locals suggested that sales were ticking along. And with a slew of supermarkets in the town - including the German discount supermarket Aldi, it looks like the grocery industry used to fighting tough battles.
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962ace6a47db6984576d2a3d849bb765 | https://www.cnbc.com/2015/01/23/in-flight-catalog-skymall-files-for-bankruptcy.html | In-flight catalog SkyMall files for bankruptcy | In-flight catalog SkyMall files for bankruptcy
Source: SkyMall
Finding it hard to flourish in a smartphone-dominated world, the parent company of in-flight catalog maker, SkyMall, has filed for bankruptcy protection, according to a court filing on Friday.
Xhibit Corp, the publicly traded company behind SkyMall LLC and several other subsidiaries, said it's facing a severe liquidity crisis and would look to sell its assets as a going concern. Shares of Xhibit, which has a market cap of about $8 million, surged 43 percent on the over-the-counter market after the announcement.
SkyMall, once the sole catalog provider for airline passengers, has faced increased competition from e-commerce providers, such as Amazon.com and eBay.com.
Read MoreAmazon is tricking you with its pricing strategy
The SkyMall business generated revenue of about $33.7 million in 2013, but only $15.8 million for the nine months ended September 28, 2014.
CEO Scott Wiley called the company a victim of evolving technology, dogged by the increased use of electronic devices on planes.
"The direct marketing retail industry is crowded, rapidly evolving and intensely competitive," the company said. Citing its lack of narrowly lack of narrowly tailored product offerings, the company said it battles competitors who have "greater, or vastly greater, resources, longer histories, more customers, and higher brand recognition."
The company will seek to sell assets as a going concern and will attempt to "sustain their scaled-down business operations as a going concern."
SkyMall did not respond to CNBC's request for comment.
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3d1fbc31ed7a70e3df0ec527dd39389d | https://www.cnbc.com/2015/01/23/porn-becomes-less-seedy-but-not-quite-mainstream.html | Porn becomes less seedy, but not quite mainstream | Porn becomes less seedy, but not quite mainstream
Adult film actress Chanel Preston, who is concerned that performers don't have enough control over health issues.Getty Images
On the surface, it would seem like 2015 is an ideal year for porn to break into the mainstream.
Adult actresses are becoming increasingly well known—making cameos on popular TV shows and sometimes trending on Facebook. Meanwhile, one of the year's more anticipated movies—50 Shades of Grey—is an erotic tale that explores themes previously relegated to the world of adult film.
Porn has come a long way from the years when it was associated with seedy movie houses and red-light districts, like those in New York City's Times Square, many of which have since disappeared.
But as some parts of the broader society appear more open to adult entertainment, others seem to be renewing the cultural war against it. Vibrators, for instance, can now be found at most corner drugstores and shopping malls at stores like Brookstone and Spencer's. Still, Chase has reportedly shut down the accounts of adult performers at its banks.
Read MoreEditor's note: Defending our porn coverage, again
"What we were seeing in adult, in terms of mainstream acceptance, was a lipstick acceptance," said Dr. Chauntelle Tibbals, a sociologist and former visiting scholar at the University of Southern California who studies the adult entertainment industry.
"It was novel to read a book by a porn star or edgy to hang with them," she said. "But when you get down to it, the nuts and bolts of our culture have not changed much, in that we are allowing legal discrimination to exist against adult entertainers."
Laszlo Czero, CEO of Docler Holdings and Jasmin.com—a video chat and live sex site—puts it more succinctly: "We are pretty far from being mainstream."
Porn certainly has had its challenges in the past couple of years. Beyond run-ins with the banking industry, the U.K.'s four biggest Internet Service Providers began automatically blocking access to porn sites for both new and existing connections in 2013. Last year, major search engines threw up barriers that impacted traffic to porn sites.
Read MorePorn stars shooting guns: The big business of sin
In July, Google modified its policy for AdWords to disallow sexually explicit content, and prohibited the promotion of most sexually themed sites. The company said it was the continuation of a long-standing guideline, but porn insiders say they were caught by surprise.
"This is another example of a mainstream company turning its back on the industry that has supported it," said Michael Fattorosi, an attorney with Fattorosi & Associates, a boutique firm that represents the adult industry, at the time.
After Google's action, Yahoo followed suit in October, discontinuing adult content listings for its directory program.
As a result of Google's sanctions, many adult-focused companies have begun shifting their ad budgets to other mediums, including magazines, newspapers, late night TV, radio and online ad networks. They concede the need to adjust their explicit content to meet different editorial guidelines.
VIDEO1:5301:53Porn billboards in Times Square?Adult Entertainment
One theory in the porn community is that the resistance from big companies about adult entertainment is largely due to advertiser concerns. In short, they fear a reputational backlash.
"Look at Facebook," said Jenny Gonzalez, vice president of sales and marketing for DatingFactory, a white label technology company for adult dating sites. Gonzalez called the social network's stance on the porn industry "extremely conservative," and shaped in part by Facebook's relationships with mainstream dating sites.
Read MorePorn business upbeat despite piracy, safety woes
The fear that Google's action could be the first step towards restricting search results for the porn industry helped give a boost to Boodigo—a porn search engine founded by porn producer and director Colin Rowntree and a group of former Google employees.
The engine eliminates results from known piracy sites, and focuses on hits for the specific type of adult entertainment the user is looking for. Since its mid-September launch, it has logged 5.2 million sessions, with over 24 million page views.
"I've created our own little porn ghetto," joked Rowntree.
So what has led to this dichotomy? Did a renewed interest in bondage cause some porn companies to push the boundaries too far?
While some recent porn themes may push the boundaries of good taste (or even happily sprint right past them), Tibbals said that has nothing to do with it. Ultimately, she said, it's that Americans—and especially American businesses—still have a problem when fantasy meets reality.
"A lot of it has to do with different media and the way we think about sex and the performance of sex," she said. "50 Shades is not real. It was a fantasy story. It didn't exist."
By contrast, however, porn has "actual nakedness and actual sex acts that are given a dollar amount," she said. "People's performance of those acts have variable rates and it makes us uncomfortable, because it's an industry situated around this idea and practice that we, as a culture, aren't comfortable with to begin with."
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4cdacb6dc204fe1310df91311dac0219 | https://www.cnbc.com/2015/01/23/russian-economy-russian-collapse-hits-home-in-miami.html | Russia's economic collapse hits home in Miami | Russia's economic collapse hits home in Miami
Four yachts sat docked outside a North Miami restaurant called Lique on Thursday night for the Russian-American Chamber of South Florida Luxury Yacht Business Mixer event. And many of the attendees had shared anxieties.
Ralph Navarro, CEO of Florida Yachts International, footed the bill to rent out the space in the hope of building connections with wealthy Russians with the ultimate goal of possibly making a sale.
The Russian-American Chamber of South Florida held a yacht mixer on Thursday.CNBC
About 300 people, most of them members of the Russian American Chamber, were in attendance, and roughly 80 percent of them are Russian business owners and managers in industries ranging from real estate to computer technology and finance.
It's a crowd that has grown increasingly concerned about its financial situation in light of the economic downturn of the country where many of them do business, CNBC's conversations with the attendees revealed.
Read MoreWarning: Russia's banking system could face 'failures'
Chingiz Askerov lives in Miami but owns a major shopping center in Moscow, Domodedova Shopping Mall, which includes grocery stores and clothing merchants as well as restaurants. He also owns commercial and residential real estate in Moscow, which he told CNBC has lost significant value with the fall of the ruble.
"Any person doing business in Russia right now is being harmed," he said.
Read MoreHow much should Russia's neighbors fear Moscow?
He noted that his business also has suffered because of low oil prices and the sanctions imposed against Russia by the United States and European Union in retaliation for its support for rebels in eastern Ukraine.
"People are buying a lot less, because having a salary in rubles does not help," he said. "It's as though everything is now worth half of what it used to be."
VIDEO1:4501:45Russia sanctions are not affecting this companySquawk Box Europe
Lique restaurant and lounge owner Alex Podolny said he can see the consequences of Russia's faltering economy among some of his clientele.
"There's difference, they are not spending like they used to," he said. "People from Russia (and) Ukraine of high net worth are definitely scared, and it's concerning to me for my own business."
Read MoreRussian business is braced for 'much worse'
He said Russian businessmen tell him they think things will worsen economically. Conversations with several people at the event made clear that some had noticed a decreasing number of Russians either coming to Miami or engaging in more business in the U.S.
On the othe rhand, Valentina Aved of Villa Valentina Realty said that she is not concerned, despite that about 80 percent of her clients are Russian. She said she still sees interest from Russian residents who are looking to rent or buy apartments in Miami and Palm Beach.
"They like new construction and are willing to pay top dollar for (a) luxury lifestyle," she said as she handed out colorful business cards to potential clients.
Read MoreUkraine turning point 'close': Russian deputy PM
She said business was booming for her.
As for yacht company owner Navarro, he said he's broadening his approach to reach out to more diverse clientele.
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3bab5c03aaffec73603440c47d5ead41 | https://www.cnbc.com/2015/01/23/why-googles-eric-schmidt-says-the-internet-will-disappear.html | The Tech Bet | The Tech Bet
VIDEO2:3002:30Google chairman declares the Internet will disappearMobile
The end of the Internet is drawing near—or at least the Internet as we know it.
That's according to someone who knows a lot about the Internet. While speaking at the World Economic Forum in Davos, Switzerland, on Thursday, Google's executive chairman, Eric Schmidt, said the current Internet will seem to vanish as it becomes a part of everyday objects and services.
"There will be so many IP addresses, so many devices, sensors, things that you are wearing, things that you are interacting with that you won't even sense it," Schmidt said. "It will be part of your presence all the time."
Eric SchmidtGetty Images
Read MoreDavos blog: CEOs and politicians debate QE and oil
Google is positioning itself to become a major provider of the Internet's next iteration that Schmidt mentioned—on earth and in space.
The search giant made headlines this week with a $1 billion investment in Elon Musk's SpaceX, according to tech blog The Information. The funds could help connect hard-to-reach areas to the Web with satellite Internet, the report said.
Google's also getting deeper into the wireless sector. It plans to sell mobile phone plans directly to consumers as early as this year, according to reports.
The company plans to work with wireless carriers Sprint and T-Mobile by piggybacking on top of their existing networks. Reports say Google will pay the companies to use space on the networks and then resell it to its own customers.
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580276b0e487c78446bebdaf73d2ac4c | https://www.cnbc.com/2015/01/24/wacky-investment-ideas-that-will-make-you-go-hmmm.html | Wacky investment ideas that will make you go, 'Hmmm ...' | Wacky investment ideas that will make you go, 'Hmmm ...'
People sure can come up with some strange investment ideas.
"Every time I think I've heard it all, I realize that people are much crazier than what Hollywood can think up," said Kevin Meehan, certified financial planner and regional president of the Wealth Enhancement Group.
Peter Glass | Getty Images
"One of my clients and his friends had a vision: If they opened a gentleman's/strip club near some major sports facilities, they thought the demographics of those who attended could match up," he said. "When spending pre- and post-game activities, they would offer some unique options."
Meehan's response?
"After I finished laughing out loud ... well, the rest of the response is unprintable," he said. "I didn't judge it. I don't know much about this industry. I don't imagine there was a prospectus available. I suppose you need some common business skills, like hiring and marketing."
"I had a client a few years ago who wanted to invest in a publicly traded firm that made marijuana processing equipment," said James Kinney, CFP and founder of Financial Pathway Advisors.
"He was insisting that the drug would soon be legal in many states and this would be the next big thing," he said. "I dismissed the idea at the time, but maybe I should have listened."
Kinney gave the client the polite brush-off, saying, "OK, I'll consider that."
"In the meantime, I was thinking, I wonder how that fits into your asset allocation," he said. "It doesn't get into any of the socially responsible funds."
Maybe sourcing drugs is a better idea?
When Holly Thomas was a banker in the early 2000s, a real estate developer client approached her about a commercial loan to invest in a poppy farm in Colombia. She is now a CFP and founder of her own firm, Holly P. Thomas.
The client, originally from that South American country, had a good reputation for repaying his loans. Not wanting to make any accusations, Thomas decided to play it straight and ask him some questions.
"What kind of rate of return do you expect?" she asked. About 15 percent to 20 percent, he replied.
Read MoreInvestors puzzle over alternatives
Thomas said she thought, OK, and then came up with an objection: "How do you know you'll get this return?" she asked the client.
He replied that he already had the buyers lined up. "That's when I got scared," Thomas said.
"In retrospect, I didn't know whether to call the FBI, but he had such a straight face and made me wonder: Could it have been about poppy seeds?"
The loan was declined.
"The craziest request was bitcoins," said Michael Miller, CFP and wealth manager with Miller Premier Investment Planning.
An elderly client of Miller's got the idea from an email newsletter, researched the past returns and decided to check with his advisor.
Miller said he thought, Oh, no, not another one.
"Did he understand what a bitcoin was? Yes," he said. "Did he understand the mechanics behind it? No."
Read MoreGoing alternative for the wrong reasons
Miller told the client: "I believe this is another fad. Not a place for a retiree."
"I had this picture in my mind of a guy going with a barrel of cash and exchanging it for bitcoins," he said. "But if bitcoins are supposed to be better than dollars, why are they taking dollars for them?"
How about some Iraqi dinars?
"It defies rationality," said Rick Kahler, CFP and owner of Kahler Financial Group, referring to an inquiry from a client in his 50s who was thinking about how to fund his retirement.
"He wanted to buy 1 million Iraqi dinars for about $2,000, thinking that when Iraq emerges from war and stabilizes, they'd be worth $1 million," Kahler said. "I thought, Oh, my gosh. Where do I begin?"
He added, "It takes a while to get your head around the question, and it would take hours and a whiteboard to explain, so I just said, 'I don't think it's a good investment at all,' " he said.
I had a client a few years ago who wanted to invest in a publicly traded firm that made marijuana processing equipment.James Kinneyfounder of Financial Pathway Advisors
"A few years ago, there was an offering of Green Bay Packers stock, which isn't wacky but actually pretty cool," said Donald Nicholson Jr., CFP and senior financial advisor with Donald W. Nicholson & Associates.
"A client called to ask if this would be a good investment," he said. "I laughed and said, 'If they won!' "
"I agreed it would be cool, a good stock to hold on to," Nicholson added. "It's a guy thing, with bragging rights for your buddies."
He recalled another "different" idea. Nicholson had a young client who wanted to buy truckloads of scrap metal "down south" and sell it "up north."
Read MoreDrunk on liquid alternatives?
"Our response was, 'Are you kidding me? That's a terrible investment. This makes no sense,' " he recalled.
Nicholson said he suspects the client eventually tired of being told no.
"We never heard from him again after that," he said. "Maybe our portfolios seemed too boring to him."
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e1a785fe65153ec732618f12d738659b | https://www.cnbc.com/2015/01/25/ecb-now-faces-another-battle-dealing-with-greece.html | ECB now faces another battle: Dealing with Greece | ECB now faces another battle: Dealing with Greece
After finally launching it's highly anticipated QE program, the European Central Bank now faces another major task: dealing with Greece.
If the pre-polls for Sunday's elections are correct, the next Prime Minister of Greece will likely be Alexis Tsipras, leader of the radical-left Syriza party. Tsipras' economic advisors say one of their first missions will be to renegotiate the debt Greece owes to the ECB—an explosive idea in both political and central banking circles.
"There are are some red-lines that will simply be non-negotiable, for the ECB in particular," said Doug Rediker of International Capital Strategies, who was formerly the U.S. representative to the International Monetary Fund (IMF).
Alexis Tsipras, leader of the radical leftist party Syriza, delivers a speech during a congress of the party in Athens, on January 3, 2015. Syriza.Angelos Tzortzinis | AFP | Getty Images
Syriza remains undeterred. "Our party's mandate is to renegotiate," said Yanis Varoufakis, who is tipped by some to be Syriza's new finance minister.
Varoufakis, who was most recently an economics professor at the University of Texas in Austin and describes himself as a libertarian Marxist, argued that there was no hope of Greece paying back all that it owes.
"Greece went bankrupt in 2010 and what did Europe do in its infinite wisdom? It tried to deal with a solvency problem by extending the largest loan in history on the weak shoulders of the bankrupted Greek state."
Read MoreAll Greek to me: What may happen in crucial vote
Greece certainly has a mountain of debt, owing more than $350 billion, not just to the European Central Bank (ECB) but also to the IMF, other European governments, and private investors.
Katie Slaman, CNBC
To the ECB specifically, Greece owes 27 billion euros ($30 billion), in the form of bonds bought by the central bank on the open market back in 2010 and 2011, at the height of the European financial crisis. Under former ECB President Jean Claude Trichet, Mario Draghi's predecessor, the central bank bought the bonds in an effort to lower Greece's interest rates so it could borrow again at an affordable rate from the capital markets.
Now, many of those bonds are coming due. Greece has a principal repayment of 3.5 billion euros in July and another 3 billion euros in August.
Syriza's economic policy team wants the ECB to dramatically ease Greece's repayment terms. When CNBC spoke with several members of Syriza, it was clear this this was a top priority—and could lead to a showdown between the leftists and the central bank.
"The ECB can do a lot of things," said John Milios, a self-described Marxist with a PhD in economics. "One solution could be a swap."
In exchange for the bonds currently held by the ECB, Milios wants to give the central bank a different type of bond—a "zero-coupon perpetual." In other words, a bond that pays a zero interest rate for the entire duration of the bond, which in this case, would be forever.
In the restructuring world, zero coupon perpetuals are snarkily referred to as "wallpaper."
But Milios insists the ECB would eventually get paid back. The country would begin buying back the debt, i.e. repaying it, once the economy has grown sufficiently that the country's debt-to-GDP ratio falls to 20 percent, from the current level of 174 percent.
Milios calculates this would take 58 years. He's written a paper, available here, in which he suggested that his suggested policy for Greece should take place in all of the highly indebted euro zone countries.
Syriza leader Alexis Tsipras talks to CNBC ahead of the Greek electionsKatie Slaman, CNBC
Varoufakis suggested a slightly different variation on Milios' plan. He too wanted the ECB to accept a zero-coupon perpetual, but one with GDP warrants attached. These are payments a debtholder receives that are tied to a country's GDP growth, and have been used in sovereign debt restructurings in the past. The holder of the warrants gets paid when the economy grows.
What does the ECB think of these ideas? That's unknown as yet, as a spokesperson for the central bank declined to comment on anything related to Greece until after the results of the elections were known.
But the suggestion that a Syriza government may not want to pay back the ECB on time puts Greece in a tenuous position when it comes to the central bank's newly announced quantitative easing program.
During last Thursday's press conference, Mario Draghi said: "There are obviously some conditions before we can buy Greek bonds."
Read MoreECB stimulus may ease Greek concerns
Greek bonds will be excluded from the new program until at least July, Draghi explained, because the bank already owns so much Greek debt that it exceeds ownership limits. Draghi implied however that once Greece pays back the bonds due in July, the country's debt will become eligible for the program.
However, Draghi also said the country must be in compliance with the bailout program imposed by the IMF and the European Commission on the country—a program that Tsipras has also promised to renegotiate.
Syriza risks overplaying its hand, said International Capital Strategies' Rediker. "Given that the ECB controls the liquidity of the Greek banking system, and also serves as its regulator through the SSM (Single Supervisory Mechanism), going toe-to-toe with the ECB is one battle that could end very badly for the Greek government."
If the ECB were to stop funding the liquidity of the Greek banks, the banks could collapse—an event that could lead to Greece abandoning the euro and printing its own money once more.
Milios didn't believe it would come to that, saying, "No one wants a collapse of banks in the euro zone. This is going to be Lehman squared or to the tenth. No one wants to jeopardize the future of the euro zone."
Meanwhile, the Syriza team's plans don't stop with the ECB. Syriza wants a writedown of the nearly 200 billion euros in loans from the European Financial Stability Fund and other European governments that Greece has received.
However, the European Commission has long said that a writedown is out of the question—although lower interest rates and longer maturities are a possibility, as long as Greece sticks to the terms of its bailout program.
Follow us on Twitter: @CNBCWorld
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72de329545fb9ac5d9ca20514c59150a | https://www.cnbc.com/2015/01/26/drone-lands-inside-white-house-grounds.html | Drone Lands Inside White House Grounds | Drone Lands Inside White House Grounds
NEW DELHI, India — A drone landed inside the White House grounds early Monday, a federal law enforcement official told NBC News.
The official gave no further details about the unmanned aerial vehicle, other than to say it landed in a tree at 3 a.m. ET. The Secret Service responded and determined the drone did not pose a threat, the official said.
More from NBC News:FirstLady Shows off Her Dance MovesObamaCalls India's Prime Minister 'Tough'Boehner:The President's Overreach is 'Affront to The Rule ofLaw'
Earlier, President Barack Obama's Press Secretary Josh Earnest told a briefing on Obama's trip to India that a "device" was found within the White House grounds. Earnest gave no further details.
The device prompted an increased security presence around the White House early Monday, NBC Washington reported. Emergency vehicles with flashing lights were spotted around the building's southeast entrance.
Nedra Pickler tweet
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7221fc60e51c78c8d467eecff52d1bec | https://www.cnbc.com/2015/01/26/early-movers-post-dhi-t-shpg-goog-ups-more.html?__source=thestreet%7Cheadline%7Cheadline%7Cstory&par=thestreet | Early movers: POST, DHI, T, SHPG, GOOG, UPS & more | Early movers: POST, DHI, T, SHPG, GOOG, UPS & more
Traders on the floor of the New York Stock Exchange.Brendan McDermid | Reuters
Check out which companies are making headlines before the bell:
MeadWestVaco, Rock-Tenn—The two packaging companies will combine in a deal creating an entity with nearly $16 billion in annual sales. MeadWestVaco shareholders will receive stock in the new company, while Rock-Tenn holders will have a choice of stock or cash.
Post Holdings—The cereal maker will acquire privately-held MOM Brands For $1.15 billion, the vast majority of that in cash.
Axis Capital, PartnerRe—The two reinsurance firms will merge to create a company with a combined market value of $11 billion. PartnerRe shareholders will receive 2.18 shares of Axis Capital for each share they now own.
DR Horton—The home builder beat estimates by 5 cents with fiscal first quarter profit of 39 cents per share. Revenue was also above estimates, as the company saw a 35 percent jump in new orders, a 29 percent increase in closings, and an almost 7 percent rise in average sale prices.
Roper Industries—The appliance maker posted a mixed quarter, beating estimates by 6 cents with adjusted quarterly profit of $1.85 per share, but missing on the top line.
AT&T—The telecommunications company is buying Nextel Mexico for $1.875 billion, less any debt outstanding at the closing of the transaction.
Garmin—The company was upgraded to "outperform" from "sector perform" at RBC, based on expected strong unit growth in wearables.
UPS—Barclays downgraded UPS to "equal weight" from "overweight," noting that an increased focus on customer service has put earnings growth on the back burner as a priority, although Barclays is quick to add that it does not necessarily disagree with those priorities.
Ocwen Financial—The residential and commercial mortgage provider agreed to pay a $2.5 million penalty to settle a mortgage servicing case with the state of California. Separately, Reuters reports major mortgage bond investors have taken the first legal step toward suing Ocwen, saying it failed to properly collect payments on $82 billion in mortgages.
Shire—The drug maker received FDA approval for a drug known as Natpara, designed to treat a condition known as hypoparathyroidism.
Cablevision—The cable company will launch a wireless internet phone service next month known as "Freewheel," which will run on any WiFi connection.
Google—The tech giant signed a deal to distribute NFL video, according to a Re/code report.
Generac Holdings—The maker of backup generators could rise in Monday trading, as Generac often does when major storms hit the Northeast.
United Continental, Southwest, Delta Air Lines, and American Airlines Group—These and other airlines will be on watch as investors wait to see how many flights are canceled due to the Northeast storm and the impact on earnings.
Questions? Comments? Email us at marketinsider@cnbc.com
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2f6168d1aa8ed5c00d80a0cfd26c8c88 | https://www.cnbc.com/2015/01/26/facebook-launches-lite-app-for-emerging-markets.html | Facebook taps emerging markets with stripped down app | Facebook taps emerging markets with stripped down app
Google Play store
Facebook has quietly launched a stripped-down version of its mobile app, aimed at emerging market users with low-end mobile devices.
The social media giant confirmed to CNBC on Monday that "Facebook Lite" was an official app. It is available in eight countries: Bangladesh, Vietnam, Nigeria, Nepal, South Africa, Sudan, Sri Lanka and Zimbabwe.
Facebook Lite takes less than 1 megabyte of storage space, according to a description of the app on the Google Play store for Android apps – substantially less than the standard app, which takes around 25MB of storage. The new app is designed for 2G networks and "areas with limited network connectivity."
So far, it has been downloaded over 10,000 times and has a rating of 4.6 stars out of 5 on the app store.
VIDEO1:1301:13Facebook touts $227 billion global impactSocial Media
The move feeds in to the Menlo Park, CA-based company's plans to target the rapidly growing mobile user base in developing markets, and make the most of the slew of ultra-low cost mobile devices being launched in these markets.
India was the fastest-growing smartphone market in Asia-Pacific in the third quarter of 2014, according to the International Data Corporation.
Read MoreFacebook knows you better than your family
There is expected to be 101.5 million mobile Facebook users in India this year, 62.6 million in Indonesia and 57.9 million in Brazil, data from eMarketer showed, providing a massive user base for the social media network to tap. Facebook also said last year that 80 percent of its 100 million African users access the network via their mobile devices.
Facebook has been struggling with a slowing user growth, and has been pushing its emerging market agenda. Last year, it revamped its app for Android -- the operating with the biggest market share in developing markets. In 2013, along with other technology companies, Facebook co-founded internet.org, a project which gives people in developing countries free access to the Internet and a number of mobile services such as its own app and Google search.
With maturing user adoption in developed markets, Facebook Lite will help the social networking giant build a new audience, analysts said, but monetizing it will take longer.
"Facebook is well penetrated in Western markets, but if you look at the growth in the markets it is targeting, there's real opportunity to grow its user base," Jack Kent, senior mobile analyst at IHS, told CNBC by phone.
"Facebook's strategy has always been about growing users then monetizing later. Facebook Lite will help build an audience and gather user data and serve advertising strategy in those markets later."
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ab9de4d3ead2f1d4f89c3ea808543c0b | https://www.cnbc.com/2015/01/26/investor-landmine-beware-risky-ultrashort-bond-funds.html | Investor landmine: Beware risky ultrashort bond funds | Investor landmine: Beware risky ultrashort bond funds
PIMCO headquarters in Newport Beach, CaliforniaScott Mlyn | CNBC
Looking for shelter when interest rates finally rise? Ultrashort bond-exchange funds may not be the ticket.
Lots of investors have plowed money into these ETFs in the past few years. Total net assets in the sector has reached over $83 billion, according to Morningstar, a 10.25 percent increase since 2013. But these funds, whose holdings and even maturities vary, may not be as good at hedging against interest-rate rises as investors think, experts caution.
This brand of ETFs typically holds bonds that mature in less than a year. When interest rates rise, ultrashort bond ETFs can jump onto higher rates faster than longer-term bonds.
"Garden variety ultrashort bond ETFs with short maturities are immune to rate increases," said Mark Balasa, chief investment officer at Balasa Dinverno Foltz. "But there's close to zero return." On top of that, he added, no one knows when the Federal Reserve will finally raise rates, anyway.
Read MoreThe biggest fund flops of 2014
So Greg Lessard, president of Aspen Leaf Partners in Colorado, has been steering his clients away from these ETFs. The reason, he explained, is that ultrashort-bond ETFs don't offer enough total return in exchange for the risks investors take. Fees and taxes can take a bite out of low yields.
Lessard points to the PIMCO Enhanced Short Maturity ETF (MINT), which has $3.8 billion in assets. Though the fund currently has a .71 percent yield, you'll need to pay a .35 percent expense ratio. Even more worrisome, the ETF, which trades like a stock, has been near flat in performance. It's up 0.08 percent so far this year, through Jan. 23, according to Morningstar data. Over the past five years through Jan, 23, MINT is up 1.13 on an annualized basis, according to Morningstar.
When you factor in taxes and inflation, returns drop into negative territory, Lessard explained.
Why take the risk of share price declines when you can get the same yield with an insured bank CD?Greg Lessardpresident of Aspen Leaf Partners
"Why take the risk of share price declines," said Lessard, "when you can get the same yield with an insured bank CD?"
Also, the PIMCO fund invests in bonds with higher credit-rate risks and interest-rate risks to get higher yields, added Neena Mishra, director of ETF Research at Zacks Investment Research. Nearly half of the fund's assets are invested in corporate bonds rather than lower-risk government versions.
Read MoreThis nifty ETF maneuver is becoming more common
The PIMCO fund isn't the only ultrashort bond ETF worrying experts, though. For example, investors have also plowed more than $1 billion into the SPDR Barclays Capital 1-3 Month T-bill ETF (BIL). The yield is flat, and the expense ratio is .13 percent. So expenses are higher than your yield, pointed out Thomas Boccellari, an analyst at Morningstar.
"And you're guaranteeing yourself a loss with the SPDR ETF," Boccellari added, even though the ETF invests in no-risk government Treasury bills with short maturities. The five-year return is negative .05 percent, through Jan. 23, according to Morningstar data.
Investors also need to understand that trading costs can add up, too, said Boccellari. Buying these ETFs through brokers may mean that you're paying $30 or $50 to buy or sell. "Those costs also eat up yields," he added, "so investors need to be aware of that."
Opt for longer-term bonds instead, say some experts. Lessard likes the iShares 1-3 year Credit Bond (CSJ), which yields .94 percent and is up .39 percent so far this year through Jan. 23, according to Morningstar, and 1.93 percent over five years on an annualized basis. He also likes the Vanguard Intermediate term bond ETF (BIV), which has had even stronger returns. The ETF yields 2.83 percent and is up 2.26 percent this year, through Jan. 23, according to Morningstar data, and 6 percent over five years, through Jan. 23, on an annualized basis.
"These ETFs still carry interest-rate risk, and their prices can decline," said Lessard. "But that risk is offset by higher yields." Investors who reinvest their fund dividends shouldn't need to worry, he added.
Laddering bonds with different maturity dates can also hedge interest-rate risk. "You can give yourself a little return, too," said Balasa at Balasa Dinverno Foltz.
"It's not all or nothing," he said, "but investors should be aware that ultrashort bond ETFs can lose value."
Correction: This version corrected the performance of the PIMCO Mint fund and other ETFs mentioned in this article.
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c61da2d694721e61447684e073944378 | https://www.cnbc.com/2015/01/26/saving-for-retirement-is-even-harder-for-women.html | The biggest financial threat women face | The biggest financial threat women face
VIDEO3:1003:10Biggest retirement mistakes FA Playbook
Saving for retirement isn't easy for anyone, what with wage growth slow and underemployment stubbornly high.
For women, it's even harder.
According to a recent study by the Transamerica Center for Retirement Studies, 62 percent of women said they were saving for retirement, but just 15 percent said they were saving enough; 22 percent were barely saving at all. That means 85 percent of women aren't saving enough money to support themselves in retirement.
There are a number of reasons why women fall behind in saving for their post-career lives, ranging from lower pay to taking time off from the workforce.
Read MoreNature or nurture? Why women don't save for retirement
Cindy Hounsell, president of the Women's Institute for a Secure Retirement (known as WISER), pointed to another reason.
"They'll save for their kids before they'll save for themselves," she said.
Is this just a product of different saving and spending habits? Hardly. Women face special hurdles when it comes to saving for the so-called golden years.
For one thing, women are more likely than men to step out of the workforce, or work part time to care for children or elderly parents.
Read More25 percent of Americans saving $0 for retirement
When they do work, women are often confronted with the gender pay gap. That gap has narrowed since it was first identified, but on average, women still are paid just 78 percent of what men with equal qualifications receive, according to The American Association of University Women.
Mark Bowden | Getty Images
Divorce, too, tends to have more negative financial consequences for women than for men. A study by Kenneth Couch, a professor at the University of Connecticut, found that even divorced women who ramped up their careers fared worse in retirement than divorced women who remarried, or women who never divorced at all.
What's more, Census Bureau data show that women who divorced reported lower household income than men in the following 12 months, and were more likely to receive public assistance.
When women do save for retirement, another challenge they face is that they may invest too cautiously. Research has found that women view themselves as less financially knowledgeable than men do, and they express less confidence in their financial decision-making.
Read MoreWhy millennial women don't save
Hounsell recalled her stepdaughter's questions as she set out to start her own business as a family therapist. The stepdaughter had no idea how to save without a 401(k), Hounsell said, nor did she know the names of companies offering low-cost Roth IRAs—an IRA where savers set aside after-tax money and investment earnings and withdrawals are tax free.
A recent study of women's financial behavior by Prudential found that the "women we surveyed feel no more prepared to make wise financial decisions today than they did two years ago or even a decade ago."
To top it off, since women have a longer life expectancy, whatever they do save has to last longer—only that's not happening. The poverty rate among women older than 65 reached 11.6 percent in 2013, and elderly women accounted for two-thirds of the elderly poor.
Luckily, women can take steps to boost their nest eggs.
First, in terms of tax-deferred savings, it's a great idea to take advantage of an employer-sponsored retirement plan like a 401(k). Catherine Collinson, president of the Transamerica Center for Retirement Studies, recommends contributing at least enough to receive the maximum employer match.
They can also contribute to a Roth IRA, and depending on income, that contribution may be tax deductible.
Read MoreRetirement savings fears grip Americans
Another opportunity to consider is the savers credit, which enables people below certain income thresholds ($61,000 for married couples filing jointly, $30,500 for single filers) to offset some of their retirement plan contributions.
Second, women can boost their financial knowledge and their confidence in making financial decisions. Investment firms hold regular seminars on retirement-related issues, and nonprofit organizations such as AARP or WISER provide information as well.
Hounsell advises seeking out financial experts who can help.
"If you have access to some kind of a planner or you can even get help in your community, that's a start," she said.
Collinson suggests looking into continuing education classes on money and saving at local community colleges and universities. There's also power in women learning about retirement saving together, she said.
"We need to find a way to cut through the noise and make it a topic among women. Men are more likely to discuss saving and planning for retirement than women are," she said.
Still, Collinson is hopeful that women will soon conquer the retirement challenges they face.
"In the years I've been doing this, people over time have become much more engaged in the topic," she said. "Women still lag behind men, however as a woman, I know that once we put our mind to something, we make things happen."
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681fde41b2f0c53140dcd2df04a232de | https://www.cnbc.com/2015/01/26/shanghai-first-major-chinese-region-to-ditch-gdp-growth-target.html | Shanghai first major Chinese region to ditch GDP growth target | Shanghai first major Chinese region to ditch GDP growth target
Danny Hu | Flickr | Getty Images
Shanghai has ditched its official economic growth target for 2015, becoming the first major city or province in China to abandon such metrics as government policy shifts towards a focus on growth quality over quantity.
The move signifies both a nationwide move to switch focus from hitting annual targets with some of the fastest growth rates in the world — now that those rates are waning — as well as an effort to de-link growth from promotions at the local level.
Growth in gross domestic product has long been a key metric to evaluate the performance of local officials, helping to determine whether they were promoted. But President Xi Jinping last year said that "we can no longer simply use GDP growth rates to decide who the [party] heroes are".
VIDEO4:3204:32China Premier discusses economic reforms
At least 70 smaller cities and counties abandoned GDP targets last year, mostly in areas with high poverty rates and those with special agricultural or ecological value.
But the move by Shanghai — one of four Chinese megacities with province-level administrative status — marks the first such move by a highly developed urban area. At least two municipal districts in Shanghai had previously cancelled gross domestic product targets for 2015, the official Xinhua news agency reported.
Read MoreHow China views the state of the global economy
Shanghai will "grow steadily, continue structural optimization, and further increase quality and efficiency" in 2015, Shanghai mayor Yang Xiong said in his government work report to the city's legislature on Sunday.
Analysts say excessive focus on gross domestic product has contributed to environmental degradation and urban sprawl as officials encouraged heavy industry and bulldozed agricultural land to build housing developments.
"It's quite significant. The government is moving away from GDP targets and focusing on other metrics that are more important, like inflation and employment," said Hong Hao, managing director for research at Bocom International, the international investment banking arm of Bank of Communications in Hong Kong.
More from The Financial Times:
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Mr Yang said Shanghai's growth had fallen to 7 per cent in 2014. The city's 7.5 per cent target for 2014 matched the central government's nationwide goal. China's national economy grew 7.4 per cent last year, the slowest in 24 years and the first time since 1998 that growth fell short of the official target.
Mr Yang said the government would focus on developing its free-trade zone, including promoting greater use of the renminbi for cross-border transactions.
The central government traditionally announces its annual growth target at the national parliament meeting in March each year. Last year Premier Li Keqiang signaled greater flexibility by announcing the 2014 target at "around" 7.5 per cent.
Mr Hong expects reduced emphasis on GDP growth this year.
"They'll set a growth target but with a lot of conditions attached," he said. "The basic message will be, 'this is how fast we're trying to grow, but if we don't get there it's OK'."
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1c8a445aa428097cf7ef2c8a0aea23ab | https://www.cnbc.com/2015/01/26/us-average-hotel-room-rate-forecast-to-rise-54-percent.html | Hotel room rates may be hiked 'aggressively,' forecaster says | Hotel room rates may be hiked 'aggressively,' forecaster says
Stock | 360 | Getty Images
Hotel owners across the U.S. are expected to be told later Monday they should be able to "aggressively" raise room prices this year, with one consultancy already forecasting the national average room rate to rise 5.4 percent.
One of the lodging industry's most prominent forecasters is expected to share room price details at the Americas Lodging Investment Summit conference in Los Angeles. The market can absorb "significant" hikes because strong fundamentals already have been pushing occupancy rates to fresh records in 2015.
VIDEO2:2002:20NYC hotel rooms on sale!
The projected 5.4 percent rise comes from Mark Woodworth at PKF Hospitality Research.
Some cities will climb more than that. Room prices in San Francisco, Oakland, California, and Santa Cruz, California, will rise by up to 10 percent, Woodworth said. Denver is forecast to have a 9.1 percent average room rate increase, and Nashville, Tennessee, could see 8.6 percent.
Read MoreThe 10 best apps for road warriors
Looking ahead, travelers reacting negatively to higher room rates eventually will slow demand growth for the industry during the next 12 months, Woodworth said.
However, room price hikes should help boost profits for U.S. hotel owners 13.2 percent to a record high, with another double-digit increase in hotel owners' profits predicted for 2016, he said.
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6721ab0152e0f1f8477435782bc8c18d | https://www.cnbc.com/2015/01/27/gold-steady-above-1290-ahead-of-fed.html | Spot gold prices lower after verdict | Spot gold prices lower after verdict
AP
Spot gold prices were little changed on Wednesday after the Federal Reserve signaled that it would remain patient when it comes raising interest rates.
In a statement after its latest policy meeting, the Fed made clear that no rate increase is imminent. Chair Janet Yellen said after last month's meeting that by saying it would be "patient," the Fed was signaling there would be no rate increase for at least two meetings.
The Fed's statement Wednesday said the factors holding inflation below its 2 percent target rate have intensified since its last meeting in December. Inflation has stayed ultra-low partly because of a plunge in energy prices and a steadily strengthening dollar.
The Federal Open Market Committee is scheduled to release a statement at the end of its two-day policy meeting later on Wednesday and a dovish bias could support a non-interest bearing asset such as gold.
`The market has more or less priced in a rate hike this year so that is status quo and if the Fed statement surprises ...more on the dovish side and rate hike expectations are pushed back into the future, then gold could find some more support,'' Commerzbank analyst Carsten Fritsch said.
``If the Fed does not deliver any surprise at all, the impact on the gold price will be neutral ...and then the focus will turn to the U.S. data next week, mostly on wage inflation.''
VIDEO4:1104:11Gold goes gaga!Futures Now
Spot gold was down 0.4 percent at $1,287.20 an ounce by 1507 GMT, trading in an $8 range. It hit a five-month high of $1,306.20 last week, before retreating on stronger risk appetite after the European Central Bank announced liquidity measures.
Read MoreHedge funds snap up gold, but where's it heading?
U.S. gold futures were down $4.70 at $1,287.00 an ounce.
The dollar rose 0.4 percent against a basket of currencies, having received a slight boost from a surprise monetary easing by Singapore.
It fell on Tuesday when U.S. data showed durable goods orders unexpectedly fell in December and business investment dropped for a fourth straight month.
With the United States readying for its first rate hike in nearly a decade, gold prices are forecast to fall for a third year in a row in 2015, a Reuters poll showed.
In the near term, gold is unlikely to fall below $1,250 because of buying interest from the Chinese ahead of the Lunar New Year next month, said Howie Lee, an investment analyst at Phillip Futures.
AP contributed to this report.
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a9fc1d299190a485f2143fd950084239 | https://www.cnbc.com/2015/01/27/hedge-funds-snap-up-gold-analysts-split-on-outlook.html | Hedge funds snap up gold, but where's it heading? | Hedge funds snap up gold, but where's it heading?
Hedge funds are snapping up gold, pushing their net long positions to levels not seen for almost two years. Meanwhile, analysts are split over what 2015 will hold for the precious metal.
Speculative investors bought gold for a fourth successive week at a "strong pace" upping long positions. Silver has also been bought for close to 12 weeks, but positioning remains "far from stretched", according to data from Bank of America Merrill Lynch.
Read MoreInvestors go long gold, short copper in oil freefall
An employee arranges one-kilogram gold bars at a Tanaka Kikinzoku Kogyo K.K. store in Tokyo, Japan.Bloomberg via Getty Images
The bank said its indicators suggest investors remain bullish for precious metals, a view which is supported by a number of investment banks and economists, but targets for where the metal will end up by year end differ dramatically.
Gold prices jumped over 1 percent last week, topping $1,300 per troy ounce for the first time since the third quarter last year, as the euro tumbled to an 11-year low after the European Central Bank's new stimulus plans were revealed.
Commodity analysts at Citi said this "elevated" gold trading ties into its raised forecast for 2015 bullion prices to the mid- $1,200s level -- up from its $1,220 estimate in the fourth quarter of 2014. But the bank said the metal may well struggle to "firmly break-out too far above" $1,300.
Gold rallied on Tuesday after two sessions of losses following weakness in the dollar and equities, as major earning disappointed on Wall Street, ahead of the U.S. Federal Reserve policy meeting Wednesday. U.S. gold futures for delivery in February climbed almost $15 to trade at $1,295 per troy ounce Tuesday afternoon.
Head of commodities research at Capital Economics, Julian Jessop said he expected to see the price of gold rise to $1,400 by the end of 2015 and $1,470 in 2016, but expects the price of fellow precious metal silver to outperform gold.
Because the market for silver is smaller and because the metal is mined along with other metals, the commodity's price has to move by large amounts before supply is changed, Jessop explained. This makes the price of silver traditionally more volatile than that of gold.
"As a result, Silver has tended to out-perform gold when the prices of both are rising, but to under-perform when both are falling," Jessop said, raising forecasts for silver from $20 to $23 per ounce for end-2015.
Read MoreWall Street's collective forecast: More volatility
Goldman Sachs remains the most bearish on precious metals in the long-term, expecting gold to pick up its decline from the third quarter of this year, in line with the start of the U.S. Fed's rate hiking cycle. For now however, the latest move from the Swiss National Bank and weaker than expected U.S. data are supportive for the yellow metal, with the bank raising its three month gold forecast to $1,295.
Goldman predicts bullion will finish the year at around $1,262, up from earlier forecasts $1,200 before tanking to $1,089 in 2016.
"Net, absent a reversal in the US and global recovery, we expect only limited further upside to gold prices despite the recent European and Swiss monetary shifts, as these are likely already largely priced in. Nonetheless, we also see limited near-term catalysts for gold prices to retrace their recent gains," analysts at Goldman Sachs led by Max Layton said.
"As we move forward through 2015 however, we believe U.S. gold prices will resume their decline given our economists' expectation that the shift to above-trend growth in the US will continue, with easing financial and lending conditions and lower oil prices helping," they said
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79559f39e071c708098b769c28dd72d5 | https://www.cnbc.com/2015/01/27/na-hack-taylor-swifts-social-media-hijacked.html | Hackers gonna hack: Taylor Swift's social media hijacked | Hackers gonna hack: Taylor Swift's social media hijacked
Taylor SwiftGetty Images
Taylor Swift's personal Twitter account was hacked on Tuesday. Two tweets were sent out to her 51.4 million followers asking them to follow @veriuser and @lizzard, who claims to have ties to the Lizard Squad, a black hat hacker group. Both accounts have since been suspended.
Swift responded to the cyber attack with a post to her official Tumblr page. "Well, now I'm awake…My Twitter got hacked but don't worry, Twitter is deleting the hacker tweets and locking my account until they can figure out how this happened and get me new passwords. Never a dull moment."
Swift is one of the most followed account on the social media site, fourth behind Katy Perry (64 million), Justin Bieber (59.7 million) and President Barack Obama (53.9 million).
The pop singer's Instagram account was also hacked. A post was sent out to her 20.2 million followers with a photo asking them to follow @Trash.
Representatives from Twitter and Instagram declined to comment.
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6624518b03871bbcb9c369d17330d4d6 | https://www.cnbc.com/2015/01/27/obama-drops-proposal-to-tax-529-college-savings-plans.html | Obama drops proposal to tax 529 college savings plans | Obama drops proposal to tax 529 college savings plans
VIDEO1:1901:19Obama drops 529 tax planFast Money
The Obama administration has decided to scrap a plan to tax 529 college savings plan withdrawals.
A White House official called the proposed change a "distraction" and said there are plenty of other ways to raise revenue as part of their budget.
Harwood tweet.
According to a source familiar with the matter, in addition to GOP complaints, House Minority Leader Nancy Pelosi had pressed Obama to drop the 529 plan.
Read MoreObama's middle class dilemma on 529s
Harwood second tweet.
Obama had proposed raising $1 billion over 10 years by taxing capital gains realized in withdrawals from 529 college savings accounts. The White House cited surveys showing that 70 percent of the assets in such accounts are held by families earning more than $200,000 per year, and noted that higher-income families benefit most from the current tax exemption for such gains.
In an aim to help the middle class, the White House proposal would then have made permanent the American Opportunity Tax Credit, which provides up to $2,500 per year for families with incomes up to $180,000. It would extend that credit, which is refundable (distributed as a government check) for some families who don't owe federal income taxes, to new categories of students such as those attending classes part time.
There was considerable political debate over whether this plan would in fact help or hurt the middle class.
—CNBC's John Harwood and Matt Cuddy contributed to this report.
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223baf1ecf760e270c4d67e167ba4fd7 | https://www.cnbc.com/2015/01/27/pg-cfo-strong-dollar-hits-earnings-outlook.html | P&G CFO: Strong dollar hits earnings, outlook | P&G CFO: Strong dollar hits earnings, outlook
VIDEO1:1501:15P&G misses on top and bottom lineSquawk Box
Procter & Gamble CFO Jon Moeller told CNBC on Tuesday was the strong dollar the major factor in the company's disappointing earnings report.
P&G reported before the opening bell adjusted quarterly earnings of $1.06 a share, 7 cents below estimates. Revenue of $20.16 billion also fell short of expectations, down 4 percent versus the prior year, including a negative 5 percentage-point impact from foreign exchange.
"There were definitely challenges, and FX was the prime one," Moeller said in "Squawk Box" interview moments after the earnings were released. "We were able to accelerate and increase some savings work to offset part of that."
P&G said its outlook for the year will remain challenging, with foreign exchange reducing fiscal 2015 sales by 5 percent and net earnings by 12 percent, or at least $1.4 billion after tax.
P&G derives roughly two-thirds of its revenue outside the United States, and the stronger dollar proves difficult for multinational corporations.
On the positive side, "we returned $4 billion in cash to shareholders," Moeller said. "We tighten our strategy by divesting some businesses. We increased our productivity and cost profile."
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3088bf535e38e447985626ce9b9ab4b3 | https://www.cnbc.com/2015/01/27/start-up-thinks-outside-the-shoebox-with-top-menswear.html | Start-up thinks outside the (shoe)box with top menswear | Start-up thinks outside the (shoe)box with top menswear
VIDEO5:3105:31Startup thinks outside the (shoe)box with luxury menswearPower Pitch
Step up your shoe game, says Evan Fript and Ben Earley, founders of Paul Evans, a luxury menswear brand.
Watch the cofounders give their 60-second pitch to a panel with Carter Weiss, founding partner at Silas Capital, Alicia Syrett, founder and CEO of Pantegrion Capital, and Kent Bennett, venture partner at Bessemer Ventures. Will the "Power Pitch" panel make them a shoe in or will they get cold feet? Watch the video to see what happens.
While working in finance, Fript and Earley searched for affordable and stylish, high-quality shoes. They said they faced limited options in retail stores, so they decided to complement their custom suits with their very own footwear brand. "We know what young, successful, professional men want. We feel strongly that today's man is much more fashion forward and excited about looking great then ever before. This of course includes having the best shoes on the market," said Fript.
"We believe that shoes make the man," added Fript.
In August 2013, they launched e-commerce startup Paul Evans. The company sells high-end men's dress shoes and leather goods. "We source, design, market and distribute all of our own products in-house in order to eliminate the middleman," said Fript.
Paul Evans’ men’s shoesSource: Paul Evans
Because of the direct-to-consumer business model, Paul Evans claims it is able to sell a shoe that would cost $800 in a department store for less than $400 on its website. Currently, 16 men's shoe styles are offered, all made from calfskin leather. The founders chose a manufacturer in Naples, Italy, where they boast well-known luxury brands and also manufacture shoes.
And the founders said beyond quality and style, convenience is also a top priority. "Men don't shop, they buy. Spending five minutes to make an online purchase that's delivered straight to your door is infinitely more convenient than trekking to a department store, making a purchase and carrying the items home," said Fript.
During the Power Pitch segment, Syrett asked the founders how they overcome their lack of retail experience.
"The fact that we don't have a retail background, I think, is actually a strength because we don't come in with these preconstrained notions of what needs to happen or how it has to be done. We're doing things our way, the way we want to do it. And we think we're bringing energy to the industry," Fript responded.
Bennett then asked how capable it is for the Italian manufacturer to scale with Paul Evans.
"They can absolutely scale and have an amazing manufacturing capability. They've been operating for decades and would love us to ramp up further. We're another source of distribution for them, so they want to grow with us," responded both founders.
In the future, the co-founders said they intend on creating a women's shoe line as well as a Paul Evans guide shop, a store model similar to that of Bonobos. Customers would be fitted by a guide, shown different shoe styles and then make their purchase online.
According to Fript and Earley, Paul Evans is growing over 80 percent each quarter with gross margins over 60 percent. Self-funded with $250,000, the co-founders told CNBC they have reached $350,000 in revenue. They project Paul Evans to become profitable and aim for 20 percent operating income this year.
—By CNBC's Heather Schnepf.
—Comments, questions, suggestions? We'd love to hear from you. Follow us @CNBCPowerPitch and join the #PowerPitchconversation
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b2803caec0739b9fb8e3db7ff41cdba7 | https://www.cnbc.com/2015/01/27/this-snowmobile-stock-thrives-sans-blizzard.html?__source=fincont&par=fincont | VIDEO6:4906:49Polaris CEO: More earnings power in years aheadMad Money with Jim Cramer
Despite the blizzard bust of the century, Polaris Industries still managed to thrive. The big maker of snowmobiles, all-terrain vehicles and motorcycles was up 5 percent on Tuesday amid a widespread weakness of the market.
Polaris reported earnings, and crushed it with a 4 cent earnings beat on a $1.94 basis and higher than expected sales, up 17.7 percent year over year.
Though the company's guidance was not clearly strong for 2015, Jim Cramer still thinks this stock could be a winner.
The Victory motorcycles assembly line at the Polaris Industries factory in Spirit Lake, Iowa.Getty Images
The "Mad Money" host sat down with Polaris Industries chairman and CEO Scott Wine to get the lay of the land. The CEO explained that while he was happy with the earnings, he considers this to be an ugly win.
"Our results were quite good, but we certainly look at not just how our financial results look but how we got there," Wine said. "We feel like some of the efforts in our factories and the team did a great job, but we can do better in terms of how we manage our inventory, how we manage our rework and ultimately we think there is a lot more earnings power if we can execute a little bit better in the years ahead."
The CEO elaborated, echoing the sentiments of many other companies in that the strong dollar has had a significant impact on Polaris. However, unlike many other company chiefs, he is not using the currency strength as the alibi to earnings.
"Currencies are a major impact…It's a significant headwind for us, but one that we feel we have the ability to overcome."
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Instead, the company will continue to focus on what is in its control. That includes meeting demand and investing in innovation.
"We know we get paid for the market leading innovation, and we have done that consistently over the last three or four years. Our product roadmap tells me that we should be able to do that over the next three or four," said Wine.
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4e7e33c150445586eecfbab10e05d707 | https://www.cnbc.com/2015/01/27/us-crude-prices-drop-as-stock-build-surpasses-expectations.html | Crude settles at $44.45 after Fed; lowest level since March 2009 | Crude settles at $44.45 after Fed; lowest level since March 2009
VIDEO1:4501:45Oil will go up by $25...in 2 years: ProSquawk Box Europe
VIDEO1:3001:30The new shale frontier?Worldwide Exchange
VIDEO1:4301:43Wilbur Ross's oil predictionSquawk Box
U.S. crude prices tumbled on Wednesday after the Federal Reserve reiterated that it will be "patient" in raising rates from record lows but noted that inflation remains well below its target rate.
In a statement after its latest policy meeting, the Fed made clear that no rate increase is imminent. Chair Janet Yellen said after last month's meeting that by saying it would be "patient," the Fed was signaling there would be no rate increase for at least two meetings.
The Fed's statement Wednesday said the factors holding inflation below its 2 percent target rate have intensified since its last meeting in December. Inflation has stayed ultra-low partly because of a plunge in energy prices and a steadily strengthening dollar.
U.S. crude for March delivery hit an intraday low of $44.08 after the Fed announcement. It settled down $1.78, or about 4 percent, at $44.45, its lowest since March 2009.
Brent crude oil for March delivery was last down $1.22 at $48.38 a barrel by. It hit a near six-year low of $45.19 a barrel two weeks ago.
The U.S. Energy Information Administration said U.S. crude stocks rose by 8.9 million barrels last week to 406.73 million barrels, the highest level since records began in 1982.
While the build was not quite as large as the 12.7 million barrel increase reported by industry group the American Petroleum Institute on Tuesday, prices remained under pressure despite large draws in gasoline and distillate inventories.
Read MoreThis will be 'devastating' for earnings: Analyst
Gasoline stocks fell by 2.6 million barrels while distillate stocks, which include diesel and heating oil, fell by 3.9 million barrels, the EIA said.
"Refined product demand continues to be the sole source of strength for the market, but it is not enough to overcome the tidal wave of crude oil supplies for now," said John Kilduff at Again Capital LLC in New York.
Workers connect drill bits and drill collars on Endeavor Energy Resources’ Big Dog Drilling Rig 22 in the Permian basin outside of Midland, Texas.Brittany Sowacke | Bloomberg | Getty Images
Best ways to profit from beaten-down energy stocks
Fast growing U.S. shale output has pushed oil prices almost 60 percent lower since June, with losses accelerating after the Organization of the Petroleum Exporting Countries said it would not cut output in a bid to preserve its market share.
Analysts at Goldman Sachs said in a note published on Jan. 27 they expected U.S. crude, also known as WTI, to remain near $40 a barrel in the first half of this year.
"(That) should slow supply growth and balance the global oil market by 2016," the Goldman analysts said.
"We then expect oil prices to move to the marginal cost of production," which the bank pegged at $65 a barrel for WTI and $70 a barrel for Brent.
Read MoreGoldman's Cohn: Oil could go to $30
Brent has consolidated in a narrow range just below $50 in the past two weeks as traders assess whether further price falls would push too many small producers out of the market.
AP contributed to this report.
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76314cdad9fc2abf3aa7236067314f97 | https://www.cnbc.com/2015/01/28/after-hours-buzz-facebook-qualcomm-and-more.html?__source=fincont&par=fincont | After-hours buzz: Facebook, Qualcomm and more | After-hours buzz: Facebook, Qualcomm and more
Scott Mlyn | CNBC
Check out which companies are making headlines after the bell Wednesday:
Facebook — The social-networking company fluctuated, lately lower, in after-hours trading after posting quarterly earnings and revenue that surpassed expectations.
Las Vegas Sands — The casino operator gained in after-hours trading after it hiked its dividend.
Tractor Supply — The operator of farm-and-ranch stores declined after releasing quarterly results.
Qualcomm — The technology provider fell in after-hours trading after it cut its chip guidance for the second half of 2015.
Questions? Comments? Email us at marketinsider@cnbc.com
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a7ea7ae8541f7617d7744d96a8ca04a7 | https://www.cnbc.com/2015/01/28/crude-oil-bottom-seen-at-40-cnbc-fed-survey.html | Crude oil bottom seen at $40: CNBC Fed survey | Crude oil bottom seen at $40: CNBC Fed survey
VIDEO2:3302:33Fed Survey: Bottom line on oil
Crude oil's free fall may be close to bottoming, according to CNBC's January Fed Survey.
Wall Streeters in the survey forecast that the lowest price for WTI crude in the current downturn will be $40 on average per barrel, about $6 below its current price. Among the 33 economists, money managers and investment strategists surveyed, the range of bottom estimates was $25 to $48.
Crude oil futures have tumbled nearly 60 percent from the recent peak of $107 in June.
A worker prepares to lift drills by pulleyBrittany Sowacke | Bloomberg | Getty Images
Fifty-six percent respondents say the steep slide in oil prices is primarily the result of excess supply. Only 13 percent say plunging oil is a result of weak demand, while 28 percent say it is equal parts a supply and demand issue.
Read MoreRate hike now seen in September: CNBC Fed survey
The Fed has said lower oil prices continue to be a net positive for the economy as consumers are left with more money to spend from their savings on gas. Plunging oil is seen boosting U.S. growth, with respondents predicting lower oil prices adding 0.27 percent to the gross domestic product in 2015. Meanwhile, they expect lower oil will reduce core inflation, which does not include food and energy, by 0.28 percent.
But the steep slide in commodities is not without risks, particularly their impact on inflation.
Gold rises on soft dollar ahead of Fed rate meeting
"Low wage growth and a lack of inflation pose more than idle threats to economic growth," said survey respondent Kevin Giddis, head of fixed income capital markets at Raymond James/Morgan Keegan. "If progress isn't made on both of these fronts, then there is a risk, coupled with a global slowdown, that the U.S. growth rate would retreat to levels that could be compared to a recession."
Beyond the effect on the domestic economy, geopolitical risks from lower oil prices could drag on growth.
"The biggest risk, from the decline in oil and commodity prices, is the transmission of a Russian recession to Europe, China, and beyond although it is unlikely to derail the U.S. expansion," said another survey respondent, Hugh Johnson, founder of Hugh Johnson Advisors. "With luck, we will muddle through."
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6b59072f1a04b50b1e798a91383a6483 | https://www.cnbc.com/2015/01/28/everyone-is-scared-nobel-prize-winner-shiller.html | Everyone is scared: Nobel Prize winner Shiller | Everyone is scared: Nobel Prize winner Shiller
VIDEO2:5602:56People 'fear' tech and robots: ShillerHelp Wanted
The human race has deep underlying fears about technology and the lives their children will lead and this can be seen – in all places -- in the negative yields in bond markets, Nobel Prize-winning economist Robert Shiller told CNBC.
"I think fears have been growing for years that represent the willingness of people to bid up bond prices," he told CNBC Wednesday.
"They are worried about their future. They are worried not just about next year, they are worried about the next twenty years, the next forty years. So they are desperately trying to provide for that, they'll even accept negative yields."
Robert ShillerSource: World Economic Forum
Shiller won the Nobel prize for economics in October 2013 for his research that has improved the forecasting of long-term asset prices and helped the emergence of index funds in stock markets. He was awarded the 8 million crown ($1.25 million) prize alongside fellow economists Eugene Fama and Lars Peter Hansen.
In London after a trip to the World Economic Forum, he said that the Davos event had helped him understand that there is not just pessimism about the global economy, but worry.
"There's this increasing fear of technology, information technology, artificial intelligence, robotics, 3-D printers, the internet and all these different forms," he said.
Technology, he added "seems to be changing life in such a fundamental way and what it's leaving people thinking is 'where will I be in 30 years? Look how fast everything is changing now. Where will my children be? I want to leave something for them because they could be in terrible straits'."
The World Economic Forum's (WEF) Global Risk Report, released to coincide with last week's event, warned of people designing "bespoke viruses as murder weapons" and that computers could turn rogue.
In Davos, Yahoo chief executive Marissa Mayer told delegates that she expected internet privacy to swing further into the hands of governments over the coming months. At another seminar, the Daily Mail reported, a panel of academics warned of mosquito-sized robots flying around and stealing DNA samples.
Responding to Shiller, Edmund Shing, the global equity portfolio manager at BCS Asset Management, told CNBC that he often wonders whether the world is not in the throes of a second industrial revolution but rather a technological revolution. He was concerned that a whole class of jobs could either disappear or become deflationary.
"You (might not) see any more wage increases because of the pressure from technology," he said.
Shiller added that Davos had taught him that people are trying to make sure they are in the top 1 percent of global earners. "This is desperation for many people," he said.
"The problem now is we are going through a technological revolution, unlike any in history because we seem to be getting right to core abilities that people have, that's the ability to think, to know."
He added that knowledge from humans was becoming even more absolute because of technology. The example he gave was that astronomy is becoming more redundant with the advent of mobile applications.
"They just whip out their phone and they can beat you," he said.
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3f9b64bba626a16f51709f60ba209c2f | https://www.cnbc.com/2015/01/28/icahn-short-squeeze-is-driving-apple-stock-higher.html | Icahn: Short squeeze is driving Apple stock higher | Icahn: Short squeeze is driving Apple stock higher
VIDEO3:4603:46Carl Icahn: Apple should do bigger buybackHalftime Report
A short squeeze is driving Apple stock higher after the company's record quarterly earnings performance reported on Tuesday, activist investor Carl Icahn said on Wednesday.
"I think you have an ad hoc short squeeze that has occurred and is occurring now in Apple," Icahn told CNBC's "Fast Money: Halftime Report."
Apple shares rose more than 7 percent into Wednesday afternoon after the tech giant on Tuesday easily beat Wall Street expectations on record quarterly earnings and revenue. Better-than-expected iPhone sales and strong growth in China helped push the monster quarter. The company also announced it would ship its wearable Apple Watches in April.
Read MoreWhy Apple stock is still cheap: Analyst
Despite a potential short squeeze, Apple's true value remains much higher than its current price, Icahn argued. He said he is "very pleased" with the company's results and continues to recommend the stock.
VIDEO2:5402:54Icahn: Why I'm very pleased with AppleHalftime Report
In October, Icahn asked Apple to make a tender offer for shares on the belief that the tech giant is undervalued. Icahn wrote in a letter to the company that his models value Apple at $203 per share—more than double its current price around $100.
Taking into account Apple's earnings and multiples, shares are undervalued and could shoot even higher than the earlier price target, Icahn said.
"If anything, I guess we're going to revise our guidance," Icahn said.
Read MoreBlowout: Apple crushes Wall St estimates
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fb18c4a7ff2fd992897a2308b9da3628 | https://www.cnbc.com/2015/01/28/mcdonalds-ceo-steps-aside-stock-jumps.html | McDonald's CEO Don Thompson steps aside, stock jumps | McDonald's CEO Don Thompson steps aside, stock jumps
VIDEO2:1002:10What's next for McDonald's after CEO departureSquawk Box
VIDEO3:4003:40A change in McDonald's CEO is positive: ProSquawk Box Asia
VIDEO3:0303:03McDonald's CEO to retire March 1Fast Money
Amid a tumultuous past year for McDonald's, the world's biggest restaurant chain's CEO Don Thompson is retiring after two years on the job, effective March 1. The fast food is also getting a new CFO.
The restaurant's Senior Executive Vice President and Chief Brand Officer Steve Easterbrook will replace Thompson, who is a 25-year veteran of the company, the company announced on Wednesday.
Previously, Easterbrook served as president of McDonald's Europe and led the chain's "efforts to elevate its marketing, advance menu innovation, and create an infrastructure for its digital initiatives," it said in a release. The company's CFO Pete Bensen will also transition to the role of chief administrative officer while Kevin Ozan, the company's current corporate controller, will become the chain's new CFO.
On Friday, the company delivered its latest update on its continuing U.S. turnaround, ongoing problems in Asia and the currency headwinds it faces.
Read MoreMcDonald's CEOs need to be in the hot seat
Following the CEO departure news, the company's stock ticked up 3 percent. (Click here to tracks its shares.)
As McDonald's continues its turnaround effort, Bill Smead, CEO and chief investment officer of Smead Capital Management, said he'd like to see the company take more risks and focus more on what customers want. The firm is a long-term shareholder in the company with about 180,000 shares
"Trying to please everybody is one of the issues that they're dealing with," he said in a phone interview. He also added he thinks the current low interest environment and McDonald's high dividend yield has kept McDonald's stock higher than it typically would be.
McDonald's stock is nearly flat during Thompson's tenure as CEO, compared to a 33 percent surge in the Dow and a 47 percent jump in the S&P 500.
In fiscal year 2014, global comparable sales growth, a key restaurant industry metric, dropped 1 percent, and its U.S. unit delivered a 2.1 percent decrease in comps. In fiscal year 2013, global comparable sales growth, a key restaurant industry metric, rose just 0.2 percent.
To turn around the U.S. unit, the company is shelving some menu items to reduce complexity, creating a build-your-own sandwich platform and focusing its advertising its efforts on stressing the quality of its food to consumers. It's also doubling down on its digital efforts as restaurant technology becomes an increasingly large focus in the industry.
Read MoreWhat are McDonald'sfries really made of?
In China and Japan, the chain has faced continued fallout after one of its suppliers became the center of a food safety scandal in mid-July.
A stronger dollar has also hampered its profits since its sales in currencies that have fallen like the euro are worth less in U.S. dollars.
Ahead of the CEO departure, Wall Street has been cautious on the company's stock with only six giving it either a "buy" or "overweight" rating, according to FactSet.
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fad5fa84c3d65a35c3cf73eee30445f7 | https://www.cnbc.com/2015/01/28/the-biggest-threat-to-luxury-brands-rapid-growth.html | The biggest threat to luxury brands' rapid growth | The biggest threat to luxury brands' rapid growth
The grass isn't always greener on the other side.
After years of fueling the growth of luxury labels, there are signs that the global high-end consumer is starting to cool—placing a renewed emphasis on the importance of the United States and its affluent shoppers.
Pedestrians walk past a Coach store in San Francisco.David Paul Morris | Bloomberg | Getty Images
According to a recent report by KeyBanc analyst Edward Yruma, weakness in the global economy, a strong U.S. dollar and ongoing geopolitical issues are contributing to a slowdown among consumers who live overseas.
But it isn't just international companies that are vulnerable to the shift. As a result of these trends, analysts have recently lowered their ratings on U.S.-based retailers Tiffany and Ralph Lauren—which pull in a high percentage of their sales abroad—and lowered earnings expectations for Coach.
Read MoreThe strong dollar's big winners
"Within the international luxury [category], we highlight China, Russia, Japan and Europe as particularly important markets," Yruma said. "Given the recent macro headwinds in these markets, which are largely expected to continue into 2015, we think the global high-end consumer could be challenged."
At Coach, for example, Morgan Stanley analyst Kimberly Greenberger wrote in a note to investors that deteriorating international trends are expected to weigh on the company's fiscal second-quarter earnings results—compounding its struggles to regain popularity among U.S. shoppers.
She predicted that similar to Tiffany—which disappointed investors earlier this month when it said holiday sales decreased 1 percent year over year—Coach's earnings report, to be released Thursday, will indicate that a stronger dollar pressured its sales.
Read MoreTiffany's holiday sales may be an anomaly
Greenberger noted that the yen depreciated 12 percent year over year during the accessories company's second quarter; since Japan accounts for about 11 percent of Coach's sales, it implies a 1 percent hit on the company's sales.
"Additionally, while marginal compared to Tiffany's higher dependency upon foreign tourist spending, we believe the stronger U.S. dollar certainly won't help Coach's U.S. retail locations, which may partially rely on Asian tourist spending," she said.
And after growing between 20 and 80 percent every quarter for the past five years, Greenberger noted that China only grew 10 percent in the fiscal first quarter—a deceleration she expects to continue in the second quarter.
The Chinese government's crackdown on the "gift giving" of luxury items has caused some high-end brands to lose 40 to 50 percent of their business there, said Alison Paul, vice chairman and U.S. retail and distribution leader at Deloitte.
Read MoreCoach deal does little to solve brand's woes
Another name expected to take a hit from its international exposure is Ralph Lauren. Earlier this month, Janney Capital Markets analyst Eric Tracy downgraded his rating on the luxury label to "neutral" from "buy," citing in part "intensifying global headwinds" that could hurt the label's sales. He noted that 34 percent of its revenue comes from international markets.
"I think the softness in China, the struggles in Brazil and so on, the luxury brands are not going to be able to rely on the growth there that they have in the last few years," said Paul.
Despite the changing landscape and a slowdown in sales, The Boston Consulting Group said in a new report that the luxury goods and services category will continue to grow at around 7 percent a year, "handily outpacing [gross domestic product] in many economies around the world."
According to the firm's calculations, consumers spent more than $1.8 trillion on luxury items in 2012, which includes the approximately $390 billion spent on traditional luxury goods such as apparel, cosmetics and jewelry.
Read MoreHey, big spender: Luxe buyer may not be who you think
As part of its report, BCG measured the current luxury status and growth potential of the world's 550 richest cities as defined by GDP per capita, to project the potential demand for luxury goods in each location in 2017. More than 40 percent of the top 50 cities were in the U.S.; that compares to only 12 percent for China (including Hong Kong and Taiwan) and 10 percent for Western Europe.
"A lot of [luxury brands] are turning back to Western Europe and North America and I think that's probably appropriate," Paul said.
VIDEO3:0703:07Strong buck big for US retailers: ProStreet Signs
She added that the resurgence of the aspirational shopper—someone who will splurge on luxury goods, but doesn't have the income to buy pricey items as frequently as they may like—should give U.S. luxury sales a boost.
Still, that's not to say retailers can totally ignore emerging markets—or Europe or Asia, for that matter. Some companies are even seeing resilience in these regions, thanks to a business model that touches a sweet spot for consumers.
Farfetch, for example, is a website that handles the Web operations of 300 independent luxury boutiques around the globe. Andrew Robb, the company's chief operating officer, said that Hong Kong and China is one of its fastest-growing markets.
"When e-commerce is growing at three or four times the overall market rate, if you're focused on e-commerce, you're getting the market growth anyway," he said.
Disclaimer
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44f4309703820ca9ca527f7c11842029 | https://www.cnbc.com/2015/01/28/the-most-instagrammed-restaurants-in-america-are.html?page=10 | America's most Instagrammed restaurants are... | America's most Instagrammed restaurants are...
Kohei Hara | Getty Images
Flash, filter, upload, repeat, then eat. It can be difficult to miss people documenting their latest meals while dining out.
To find the top-10 most Instagrammed restaurants in America last year, restaurant review startup MyFab5 crunched the numbers for CNBC. A range of restaurants from dining stalwarts that have been open for decades to relatively new restaurants made the cut.
Many of these are well known for signature dishes, such as Dominique Ansel's Cronuts or Café Du Monde's beignets, which fans seek out and then document on social media.
"It really helps to be known for something. You want to stand out," said Omeid Seirafi-Pour, MyFab5 co-founder and CEO in a phone interview.
Being in a touristy area also helps. Several of the restaurants are in tourist hotspots Los Angeles and New York City.
To create the list, MyFab5 sifted through geo-tagged restaurants where at least 15 percent of photos included a food-related word in the caption. This removed places like bars where food is not as center stage. It also included only the most popular location of any chain, which eliminated any outsize presence from large chains, and counted up to 25 photos from any user to exclude post flooding from restaurants' own accounts. From there, it ranked the total number of Instagrammed photos.
Still, Seirafi-Pour stressed the list has its limitations.
"Just because you're the most Instagrammed doesn't mean you're the best restaurant," he said. "Some have dimmed lighting, and you can't get good photos."
Click ahead to get the most 'Grammed restaurants.
—By CNBC's Katie LittleFirst published 28 Jan 2015
The PerchSource: The Perch | Facebook
This downtown Los Angeles rooftop lounge offers great views, a variety of indoor and outdoor seating areas, live music, French cuisine and 25 wines by the glass.
Katz DeliGetty Images
"I'll have what she's having" …. Katz's Delicatessen was already well known before Meg Ryan's famous scene in "When Harry Met Sally," but the big screen didn't hurt its popularity.
The deli, known for its pastrami, salami, brisket and more, has been serving Old Country dishes in New York City's Lower East Side for more than a century.
The Oxford Exchange.Source: The Oxford Exchange | Facebook
Drawing inspiration from various clubs and buildings in England, Oxford Exchange offers a restaurant, bookstore, retail shop, private flexible work stations and more in Tampa. Its menu features seasonal local and organic ingredients and dishes.
Russian River Brewing Co.Source: Mark | Flickr Commons
This microbrewery and brew pub in California's Sonoma County offers an extensive beer list. Customers can also buy growlers of beer to go.
The Cronut.Adam Jeffery | CNBC
This SoHo bakery helped catapult bakery mashups to fame with the Cronut, its croissant-donut hybrid shown here that draws long lines of people hoping to secure the $5 (plus tax) pastry. The company also releases a limited number of its cookie shots daily, a cookie shaped like a shot glass with milk inside.
The Loeb Boathouse in Central Park.Source: The Loeb Boathouse | Facebook
Located in New York's Central Park, the Boathouse offers a respite from the hustle and bustle of the City. It includes a lakeside restaurant, outside bar and an express café that offers a simpler menu than the more upscale main restaurant.
EggslutSource: Eggslut | Facebook
The humble egg isn't relegated to just the breakfast table at this restaurant where the ingredient takes center stage. Founded in 2011, this Los Angeles restaurant offers a limited menu that includes dishes with eggs made a wide range of ways. Shown here is a creation with carnitas, chimichurri, cotija and a fried egg on brioche.
Republique LASource: Republique LA | Facebook
This Los Angeles restaurant has a menu that changes daily based on seasonal and market availability that includes a variety of French dishes and an extensive wine list. This spread includes the restaurant's Mediterranean salad and kimchi fried rice.
Bottega LouieSource: Bottega Louie | Facebook
Another Los Angeles favorite on Instagram, Bottega Louie is a restaurant, gourmet market, café and patisserie all in one. The company's fall seasonal menu included this minestrone soup.
For diners who do not plan to be in the L.A. area any time soon, the company's e-commerce store sells macaroons, chocolates, truffles and savory options too.
Cafe Du Monde beignets.Encinalense | Wikipedia
Instagram users uploaded more than 11,000 photos last year at Café Du Monde, a traditional French coffee shop that opened during the Civil War. The New Orleans restaurant is well known for its beignets, fried pieces of dough covered with powdered sugar shown here that are sometimes filled with fruit. Like many of the most Instagrammed restaurants, it sells its most famous products online along with other accessories like mugs and T-shirts.
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68cf54dd9a7d7017dae01484bc12185f | https://www.cnbc.com/2015/01/28/why-apples-gonna-roll-higher-this-year.html?__source=fincont&par=fincont | VIDEO6:4606:46Cramer: Own Apple, don't trade itMad Money with Jim Cramer
Apple reported yet another mind-blowing quarter this week, and while Jim Cramer is already hearing the skeptical questions from investors—he thinks this amazing stock could roar even higher this year.
"Staggering, but can it continue?"
"Doesn't it have to run out, now?"
"The law of large numbers says it can't stay like this"
Cramer has heard these questions, but the standard answers don't apply because Apple is an animal of its own class.
Workers prepare for the opening of an Apple store in China.Chance Chan | Reuters
"Those questions have been among the most costly series of inquiries imaginable. They have, for years, kept you from owning the greatest stock of the greatest company on the face of the Earth," said the "Mad Money" host.
These skeptics doubted the iPod, the iPhone, the iPad, and the new iPhones four, five and six. They even doubted the big iPhone and thought China would hate the new phones. Yet, every one of these initiatives ended up being amazing.
So, while the skeptics may have moved on to doubting the Apple watch and Apple Pay, Cramer still stands his ground by continuing to advise investors to own Apple, don't trade it.
Why not trade Apple?
Cramer has seen the mistakes of other investors who left a ton of money on the table because they were worried that the stock couldn't go any higher.
At this point, Apple management has earned Cramer's trust. So, if they say something is big, it will be and the stock will climb. Give them the benefit of the doubt.
"If Tim Cook says, as he did on the call, that he can't live without his watch then you will probably not be able to live without your watch."
So, if Apple says there is still demand for their phones, and that most people haven't upgraded or bought an iPhone yet—believe the tech giant.
This is another reason why Cramer thinks this year could be the year that Apple rules retail. He speculated that those retailers that have not yet adopted Apple Pay will have to this year just to protect themselves from the customers who demand it.
---------------------------------------------------------- Read more from Mad Money with Jim CramerCramer Remix: I've never seen anything like this beforeCramer's Super Bowl stock face-off—Seahawks or New England? Cramer: How to avoid these market complainers----------------------------------------------------------
"Apple's going to roll retail like it did record companies," Cramer said.
The "Mad Money" host is on Cook's side. After all, numbers don't lie and Apple has put out some monstrous numbers.
Cramer's bottom line? Own it, don't trade it. You and your portfolio will be thanking him in the future.
Questions for Cramer? Call Cramer: 1-800-743-CNBC
Want to take a deep dive into Cramer's world? Hit him up! Mad Money Twitter - Jim Cramer Twitter - Facebook - Instagram - Vine
Questions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com
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ea468f942e4a3c3a3bf4f23d6c8daaf1 | https://www.cnbc.com/2015/01/29/5-earnings-trades-on-google-amazon-and-alibaba.html?__source=fincont&par=fincont | VIDEO1:3201:325 earnings trades on Google, Amazon & AlibabaFast Money
Technology and Internet leaders stole earnings headlines on Thursday, and results prompted sharp movements in stock prices. Amazon popped after blowing away Wall Street estimates for earnings, while Google's price resisted largely disappointing results.
Alibaba, on the other hand, slid after missing expectations. CNBC's "Fast Money" traders, like investors in the wider markets, were split on how to play the companies.
Google's Class C stock jumped about 2 percent over $520 per share in after-hours trading despite its earnings and revenue missing analysts' expectations. The company is "habitually known for missing," said trader Steve Grasso.
Read MoreGoogle misses on earnings, blames strong dollar
A flush in price could soon test shareholders' commitment, he said. But Grasso, who owns Google stock, believes investors should look past short-term fluctuations.
Google headquarters in Mountain View, CaliforniaGetty Images
"I do believe your longer-term investment in Google is going to be solid," he said.
Price movement in extended trading was "encouraging" for the stock, said trader Guy Adami. Trader Brian Kelly called it "a little bit of a pop" but added that he doesn't "think you buy this thing."
Shares shot more than 14 percent higher in extended trading after the e-commerce giant easily topped Wall Street expectations. Amazon cited strong holiday sales and growth in its Prime service.
Read MoreAmazon earnings: 45 cents a share vs. expected EPS of 17 cents
The boost might provide an opportunity to cash in on the stock, Adami said.
"I'm in the taking-profits camp here," he said.
Trader Dan Nathan also expressed skepticism about jumping into the stock on Thursday, when it climbed above $350 per share.
"Don't chase it here at $350," Nathan said.
Alibaba shares fell nearly 9 percent on Thursday after the Chinese e-commerce company fell short of analysts' expectations for revenue. "You absolutely buy it" on the drop, Kelly said.
Read MoreAlibaba's magic fades as stock plunges
Nathan didn't share the sentiment, saying selling at the current level around $90 per share would be a good move.
Disclosures:
Guy Adami
Guy Adami is long CELG, EXAS and INTC. Guy Adami's wife, Linda Snow, works at Merck.
Brian Kelly
Brian Kelly is long BTC=, US Dollar, ZBH5, HYG puts, TWTR call spreads and BBRY call spreads. He is short EWA, EWG, EWQ, EWZ, EWH, EWW, HGH5, Yen, Australian dollar, British pound, Canadian dollar, yuan and copper.
Dan Nathan
Dan Nathan is long AAPL Feb 117/107 put spreads, UAL Feb put spread, TWTR, BBRY June call spread, XLU March 48 / 44 put spread, QQQ Feb 101/ 95 put spread, XRT March 90/85 put spread and YUM Feb 72.50 puts. Today, he closed BABA Feb / Mar 95 put spread. Today, he opened YUM Feb 72.50 puts.
Steve Grasso
Steve Grasso is long AAPL, BA, CLVS, EVGN, FB, GDX, GOOGL, IMMR, KBH, KDUS, MHY, MJNA, NVIV, PFE, POT, SO, T, TMUS, TWTR and YHOO. His firm is long AXP, AMZN, TBT and MCD. His kids are long EFG, EFA, EWJ, IJR and SPY.
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42d21fed74de7a92b181c9825e7116f7 | https://www.cnbc.com/2015/01/29/midday-movers-boeing-kate-spade-viacom-more.html?__source=fincont&par=fincont | Midday movers: Boeing, Kate Spade, Viacom & more | Midday movers: Boeing, Kate Spade, Viacom & more
Scott Mlyn | CNBC
Take a look at some of Thursday's midday movers:
Royal Caribbean Cruises - The cruise operator declined after it posted weaker-than-expected quarterly results. Rival Carnival also fell.
Kate Spade - The marketer of apparel and accessories surged after its full-year sales jumped 40 percent.
Zoetis - The maker of animal drugs rose on a Reuters report that activist-investor Bill Ackman was poised to win seats on its board.
Harman International Industries - The audio-systems maker rose after it posted better-than-expected quarterly earnings.
Boeing - The plane manufacturer advanced after beating quarterly profit and revenue estimates.
JetBlue Airways - The carrier soared on better-than-expected fourth-quarter earnings. Competitors including American Airlines Group, United Continental Holdings, Delta Air Lines and Southwest Airlines rose as well.
PulteGroup - The home builder rose on better-than-expected quarterly earnings. Rivals including Lennar, KB Home, DR Horton and Toll Brothers also climbed.
Helmerich & Payne - The oil-and-gas driller fell after issuing cautious guidance.
Dow Chemical - Shares rose after the company beat fourth-quarter earnings estimates.
Campbell Soup - Shares edged higher after it said it would reorganize its business.
Viacom - The media company rose after saying it would introduce an online video streaming product for its Nickelodeon network.
Barrick Gold - The gold producer and others including Newmont Mining, Goldcorp and Yamana Gold fell with the price of the metal.
EMC - The maker of data-storage equipment dropped as it forecast a lower-than-expected profit for the year.
Royal Dutch Shell - The oil producer dropped after saying it would cut spending by $15 billion over the next three years.
Air Products and Chemicals - The maker of specialty gases rose on better-than-expected first-quarter earnings.
Thermo Fisher Scientific - The maker of scientific instruments rose after posting better-than-expected fourth-quarter earnings.
Raytheon - The weapons maker declined after it forecast 2015 revenue below estimates.
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Questions? Comments? Email us at marketinsider@cnbc.com
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2ed82e188624ab33901fd45934d03d0d | https://www.cnbc.com/2015/01/29/russia-extends-olive-branch-to-greeks.html | Russia extends olive branch to Greeks | Russia extends olive branch to Greeks
VIDEO3:5403:54We'd consider giving money to Greece: Russia Fin MinSquawk Box Europe
VIDEO2:1802:18'Life goes on': Russian fin min on sanctionsSquawk Box Europe
VIDEO0:4900:49I hope interest rates are cut: Russian Fin MinSquawk Box Europe
VIDEO1:3801:38High interest rates causing problems: Russia bank bossSquawk Box Europe
VIDEO1:2301:23EU waging 'economic war' on Russia: Bank bossSquawk Box Europe
Russian Finance Minister Anton Siluanov told CNBC that Russia would consider giving financial help to debt-ridden Greece—just days after the new Greek government questioned further European Union sanctions against Russia.
Siluanov said Greece had not yet requested Russia for assistance, but he did not rule out an agreement between the two countries if Greece came asking.
Read MoreIs Greece about to cosy up to Russia?
Anton SiluanovAndrey Rudakov I Bloomberg via Getty Images
"Well, we can imagine any situation, so if such [a] petition is submitted to the Russian government, we will definitely consider it, but will take into account all the factors of our bilateral relationships between Russia and Greece, so that is all I can say. If it is submitted we will consider it," Siluanov told CNBC in an exclusive interview in Moscow on Thursday.
Siluanov's comments come two days after Greece's new left-wing-led government distanced itself from calls to increase sanctions against Russia—indicating that Greece could be looking east to Russia for support.
On Tuesday, EU leaders issued a statement calling for "further restrictive measures" to be considered against Russia with regard to its involvement in the ongoing conflict in eastern Ukraine.
After the statement, a representative for Greece's newly elected Syriza party reported that the EU's statement was made "without our country's consent" and expressed "dissatisfaction with the handling of this."
On Thursday, Siluanov said that while Western-imposed sanctions against Russia thus far had been harmful, the country has managed to adapt.
"The sanctions that have already been imposed against Russia did have (a) negative effect on us. However, Russia companies have adjusted and the Russian balance of payments has adjusted. (The) ruble weakened and as you might see, life still goes on here and we just keep on living," he said.
Siluanov added that Russia was also willing to consider offering extra aid to Belarus, whose economy he described as "closely related" to that of Russia, but he wants reforms pushed through. Belarusian President Alexander Lukashenko warned on Thursday that his country might need to restructure its debt burden, and said that Belarus relied on Russia for help, according to Reuters. He later changed his comments on the debt burden to only mention refinancing, the news agency said.
In response, Siluanov told CNBC, "In the case of an emergency, we are ready to consider their request for help."
"Together with our Belarus(ian) colleagues, we are currently looking into the situation. We are analyzing all the factors that affect the current economic situation in both countries, namely the sanctions and the oil prices fall. We are in negotiations right now," he added.
VIDEO2:2002:20Greece cosying up to Russia a 'diplomatic irritation'Squawk Box Europe
Severe volatility in oil markets had played a substantial role in weakening the Russian economy, Siluanov said. He estimated that the combined impact of sanctions and oil price weakness on Russia's economy amounted to around $200 billion or "maybe a little more."
"The major influence(s) were the oil price falls. Our estimate of sanctions is roughly $40-$50 billion of shortage of capital, but again the main driver of this slowdown is the oil price," Siluanov said.
On Monday, Standard & Poor's downgraded Russia's credit rating to BB+, or "junk" grade, for the first time in a decade.
"Russia's monetary-policy flexibility has become more limited and its economic growth prospects have weakened," S&P said in a statement.
Russia's central bank cut its key interest rate to 15 percent on Friday, just one month after a surprise hike, amid calls from government officials and business leaders for a cut to stimulate growth in the country's sanctions-hit economy.
The ruble fell to a 2015-low after the central bank's move, falling over 2.5 percent to touch 70 against the dollar.
In December, Russia's central bank hiked its key interest rate to 17 percent from 10.5 percent in its single-biggest increase since 1998. This was in a bid to stabilize the ruble and defuse the currency crisis that was threatening the economy.
Ahead of Friday's rate cut, Siluanov said the decision to hike rates so dramatically last year was "right," but that the high interest rates did not match Russia's "macro-fundamentals".
"We hope that the interest rates will be lowered but this is a competence of the central bank—it's totally independent and we cannot influence its decisions," he said on Thursday.
"The central bank is looking into the current situation. It's analyzing it and I think it'll take the decision on whether to lower the interest rate. We see that inflation is about 12 percent year on year—and the current interest rates do not go along with the macro-fundamentals of the Russia economy."
—CNBC's Katy Barnato and Holly Ellyatt contributed to this report.
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5031d885c5ffbb2b269c7922341e6050 | https://www.cnbc.com/2015/01/29/taylor-swift-just-trademarked-her-favorite-1989-lyrics-so-shell-never-go-out-of-style.html | Taylor Swift just ensured she’ll 'never go out of style' | Taylor Swift just ensured she’ll 'never go out of style'
If 2014 wasn't earth-shattering enough for Taylor Swift, the singer who has a current net worth of $200 million thought she'd take it just that extra step further.
With countless number of awards and musical praise, an iconic breakup with Spotify and a general takeover of the Internet, Swift has now applied for trademarks on her some of her favorite phrases, to ensure her legacy continues.
Read MoreHackers gonna hack: Taylor Swift's social media hijacked
Taylor SwiftMicheal Stewart | WireImage | Getty Images
Multiple song lyrics (so far) from Swift's fifth studio album "1989" and other "Swift Inc" phrases have been filed with the U.S. Patent and Trademark Office, according to Justia, a legal database.
"Nice to meet you. Where you been?" and "this sick beat" are just some of the lyrics she wants trademarked, featured on her first two singles; however "haters gonna hate hate hate" and "shake it off" haven't shown up on the list.
The products that restrict the use of these song lyrics range from the basic clothing, printed publications and recordings to the obscure, such as skin soaps, kitchen linens, wind chimes and Christmas ornaments.
Other trademark phrases that have been filed by Swift include "Swiftstakes", "T.S." and previous studio album titles.
The "1989" studio album was 2014's top selling album, which sold a total of 3.66 million copies last year according to Nielsen Music. In addition, "1989" made Swift the first artist to have ever three albums sell more than 1 million copies within a week's span.
Read MoreThe swift rise of Taylor Inc.
VIDEO1:0501:05The Swift rise of Taylor, Inc.
Swift's move to trademark herself and her products isn't the first mind-blowing choice to hit headlines.
for printing a picture of her face on their tank tops, without her permission.
Beyoncé Knowles' lawyers are threatening to sue Etsy, after the peer-to-peer e-commerce site was caught selling mugs and other merchandise with the name "Feyoncé."
During 2011 to 2012, a lawsuit was sparked between the two fashion designer brands 'Christian Louboutin' and 'Yves Saint Laurent', all because of the red-soled high heel. In the end, Christian Louboutin achieved trademark protection over the red sole, while YSL could use that trademark red color, as long as it covered the whole of the shoe's design.
The question now is what can we expect next from Swift? Performing at the 2016 Super Bowl perhaps?
Read MoreSwift, Spotify, 'Star Wars': The talk on Twitter
Taylor Swift's Trademark requests:
"Nice to meet you. Where you been?" (Song: Blank Space) "This Sick Beat" (Song: Shake it off) "Cause we never go out of style" (Song: Style) "Could show you incredible things" (Song: Blank Space) "Party Like It's 1989" Various font styles: "Taylor Swift", "T.S.", "Swift" Album titles: "Speak Now", "Fearless" "Love Love Love" "Taylor Swift Fearless" "Swiftstakes"
Source: Justia, Trademarks section
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7b5b694edb58c0282e89755605a4d973 | https://www.cnbc.com/2015/01/29/the-motivations-behind-chinas-moves-into-latin-america.html | China's new playground: America's backyard | China's new playground: America's backyard
China is moving into the United States' backyard—but it's not clear if this is a bad thing for anyone.
Beijing is directing an increasing amount investment into Latin America, raising sphere-of-influence worries in the U.S. and trepidation among some local enterprises. But experts tell CNBC that—with the important exception of the environmental degradation typically brought on by Chinese business interests—the situation is benefiting everyone involved.
Venezuela's President Nicolas Maduro, right, walks with Chinese President Xi Jinping as they arrive to a welcoming ceremony at the Great Hall of the People on January 7, 2015 in Beijing, China.Andy Wong, Pool | Getty Images
China's involvement in Latin America can be seen as an extension of its 1999 Go Out policy, which said the country should invest abroad to secure access to natural resources, gain new markets for exports and internationalize Chinese firms. Despite this open strategy—Beijing explicitly addressed its interest in Latin America in a 2011 white paper—the growth of China's involvement in the region has taken many by surprise.
"We all thought it was a pie-in-the-sky effort. ... The relationship has changed at an incredible rate since that document, to the point now that China is an important partner for the region economically and politically," said Margaret Myers, director of the Inter-American Dialogue's China and Latin America program.
Read More Beijing still funds struggling Venezuela, for now
Calling China's growing investment in the region "remarkable," Myers said that policy analysts had once considered the possibility of a Chinese exit from Latin America, but now see the country as firmly entrenched there.
In fact, China is close to overtaking the European Union as Latin America's second largest trading partner, according to the United Nations.
Chinese investments in the region have also skyrocketed: The country invested only $231 million there in 2005, but by 2010, investment had jumped to $37 billion, according to data from the Inter-American Dialogue. Through 2013, the China Development Bank has loaned $78.3 billion to Latin America.
Several major projects center on transport, including a China-backed $10 billion railway plan to connect Peru's Pacific coast and Brazil's Atlantic coast, which wouldfacilitate the export of raw materials such as copper, gold, silver and iron ore.
China has also loaned $2.1 billion to Argentina for a grain-transporting rail system, and has bid on a scandal-plagued $3.7 billion Mexican high-speed rail development contract.
Read MoreMexican leader hit by China-linked scandal
Natural resources from Latin American are critical for China. In Peru alone, Chinese firms have recently invested $1.2 billion in an iron ore mine and $3.5 billion in a copper mine. Beijing-backed firms are also engaged in lithium mining and development in Bolivia.
Alternatives to the Panama Canal—including in Colombia and Nicaragua—have been linked to China, possibly indicating Beijing's concerns about maintaining transportation security. There's also China's long history of investing in Cuba.
Read MoreMore US and less China could be a good thing for Cuba
China's interest in extending its Go Out policy to America makes sense given the resources and allure of emerging market consumers. But many Chinese companies claim to operate independent of Beijing's directives—this includes Guodian Corp., which has major operations in Brazil's energy sector, Myers said.
While some allege that Chinese companies are always acting on Beijing's orders, Myers said that impression is erroneous, pointing out that most of the oil extracted in Latin America is sold on the international market, as opposed to being sent back to China.
VIDEO3:2203:22Chinese economy: No loss of momentum
Even if Chinese firms are acting in concert with Beijing's interests, the Chinese leadership claims Beijing is not trying to exploit its Latin American partners.
"China is experimenting with something no major power has tried before: making win-win cooperation the basic tenet of international relations," Wu Baiyi, a fellow at the Chinese Academy of Social Sciences, wrote in a reflection of the recent China-Community of Latin American and Caribbean States Forum.
At that event, Chinese President Xi Jinping promised to expedite a $20 billion loan for infrastructure, a $10 billion concessional loan and $50 million agricultural loan to the region. Xi set a goal of $500 billion in two-way trade and $250 billion in Chinese investments to Latin America in the next 10 years.
Read MoreVenezuela needs cash, but there's no easy way to get it
"Our two sides have designed an exquisite emblem for the forum," he said at the meeting earlier this month. "It is in the shape of a pair of peace doves or two clasped hands, which symbolizes close cooperation between the two sides soaring to great heights."
Such overtures have not stopped some from concluding that China is planning to gouge Latin America and harm local businesses, while others doubt Xi's ability to make good on all its promises.
"The political leadership in China wants to use its resources to expand its influence in many parts of the world, but that capacity is very limited," Victor Shih, a professor at the University of California, San Diego, who specializes in China's finances.
China has secured about half the oil production from Ecuador and Venezuela, but Beijing is exposing itself to risk as it does so—in fact, the reason the Chinese were able to secure those deals in the first place is because they are effectively a "lender of last resort" for much of the region, Myers said.
Since 2007, China has loaned Venezuela more than $50 billion to fund infrastructure, housing and mining projects, which the ailing OPEC member repays in oil shipments. About half of the oil, including fuel oil, that Venezuela ships to China is earmarked explicitly to repay its debts.
VIDEO1:4101:41Venezuela's outlook for 2015Worldwide Exchange
But Venezuela has not been a good debtor. Between January and October, oil shipments to China averaged 312,000 barrels per day, compared with 360,000 barrels per day during the period in 2013, according to ClipperData, a New York-based firm that tracks data of crude shipments around the world.
"Venezuela preferred to sell the oil to somebody that was going to pay them with new cash rather than somebody who has already paid them the cash. So they diverted their crude elsewhere," said Abudi Zein, ClipperData's chief operating officer and co-founder.
As for the U.S., Myers said American firms are not likely to see much of a downside from Chinese involvement since its interests are much more diversified than those of China, which mostly concern resources and transport.
Read More How China views the state of the global economy
And while aid from Beijing may diminish Washington's standing in the region, the U.S. government has made a point of directing its attention to other parts of the globe and could defend its Latin American interests if it wanted, she said.
In fact, a 2012 paper from the American University School of International Service concluded that a Chinese role in the region is "not an imminent threat to the United States," and the U.S. "should welcome China's involvement in [Latin American and the Caribbean] by encouraging it to be a responsible and productive stakeholder."
"Engaging China multilaterally in the region can benefit not only Latin America, the Caribbean, and China, but also the United States," the paper argued.
—CNBC's Silvana Ordoñez contributed to this report.
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6c86550b5fd5cca9055e6267aa9eab68 | https://www.cnbc.com/2015/01/29/yahoo-investors-got-their-wish-and-arent-happy.html | Yahoo investors got their wish, and aren’t happy | Yahoo investors got their wish, and aren’t happy
VIDEO2:1102:11Yahoo rose on Alibaba's back: ShareholderHalftime Report
Yahoo CEO Marissa Mayer gave shareholders what they wanted, but they didn't stay happy for long.
Shares of the embattled Internet company jumped by as much as 8 percent in after-hours trade Tuesday after it announced it would spin off its entire stake in China's Alibaba Group to shareholders. The move was applauded because it will save well over $10 billion in taxes that the company would have incurred through a traditional sale of the stake.
But in the last couple of days, the stock has given all of the gains back—and much more. In midday trading Thursday, the stock traded at $43, down about 15 percent from after-hours levels on Tuesday.
Marissa MayerRuben Sprich | Reuters
What happened? The majority of the move was due to a decline in the value of Alibaba shares, which tumbled about 10 percent Thursday morning after the company reported disappointing results. The Chinese e-commerce giant continues to account for the vast majority of Yahoo's valuation, so the stocks will usually move in tandem.
But that's not the whole story. Using some assumptions and sum-of-the-parts math, it's possible to calculate the implied value of the core Yahoo business. As it turns out, the value of the core business has declined by almost $3 per share since Tuesday.
Read MoreYahoo's Mayer saves job with Alibaba spin
Here's how the math works: On Tuesday night, Yahoo's stake in Yahoo Japan was worth about $7 per share, its net cash was worth about $6 per share and the Alibaba stake was worth about $41.50 per share. With the stock trading at $51, the core business was worth negative $3.50 per share. Applying updated share prices for Yahoo and Alibaba, core Yahoo has swung to a valuation of negative $6.30 per share. (Core Yahoo's value looks slightly higher if you assume a discount on the value of the Alibaba and Yahoo Japan stakes to account for how they might trade as "spinoff" companies.)
Clearly, the core business is worth much more than zero. Yahoo investors interviewed by CNBC along with some Wall Street analysts say the core business is realistically worth around five times earnings before interest, taxes, depreciation and amortization. That suggests a valuation of about $6 per share.
Why the disconnect? Investors say they are concerned about shrinking profits in the company's core business. Yahoo projected a decline in EBITDA for the first quarter and investors don't appear hopeful for a turnaround anytime soon. Indeed, consensus estimates reflect a 15 percent decline in EBITDA in 2015.
In fairness, there are some promising signs: The company said Tuesday it expects revenue from new areas like mobile, video and social to offset traditional display revenue declines in 2015.
The big question is how much time investors will give Mayer before they grow impatient. Some large Yahoo investors interviewed by CNBC said the Alibaba spinoff is sufficient to protect Mayer and the current Yahoo board from opposition during the upcoming proxy season. Shareholders are allowed to nominate new directors before a deadline of March 27.
Read MoreHow Yahoo may finally be sold: Why March 2015 is key
But one key shareholder has yet to speak up. Activist investor Starboard Value, which revealed a Yahoo stake last fall, has pushed for the Alibaba spinoff as well as a divestment of the Yahoo Japan shares and a merger with rival AOL. Those moves could likely generate several more dollars per share in value for Yahoo shareholders. Yahoo has said it is weighing its options regarding Yahoo Japan but it appears less willing to merge with AOL. Starboard and Yahoo both declined to comment.
With investors looking unhappy with the core business, Mayer will need to work quickly.
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0662f0f369f0f554a4b7481a8cd39685 | https://www.cnbc.com/2015/01/30/genetics-study-powerful-men-may-have-fathered-big-chunks-of-world.html?__source=yahoo%7Cfinance%7Cheadline%7Cheadline%7Cstory&par=yahoo&doc=102385051 | Powerful men may have fathered big chunks of world: DNA study | Powerful men may have fathered big chunks of world: DNA study
Millions of men are believed to carry a string of DNA bequeathed to them by Genghis Khan, the Mongolian conquerer who reputedly fathered hundreds of children. But recent research suggests he was only one of several men whose genes can now be found in significant portions of the human population, according to an article in Nature Magazine.
Statue of Genghis KhanNick Ledger | Getty Images
The evidence for Genghis's influence on today's global gene pool is not iron-clad, but it is compelling—one team of scientists in 2003 found eight percent of men in 16 different Asian populations (0.5 percent of the global male population) shared nearly identical Y-chromosome sequences. Further DNA evidence traced their lineage to Mongolia about 1,000 years ago, which corresponds pretty closely with Genghis's reign.
Read MoreAfter earnings surprise, has Amazon topped out?
The Y-chromosome is a good genetic marker because it is only found in men—while a man can father several sons by chance, there is a much lower probability that those sons will go on to father large numbers of sons themselves. The probability of having many sons increases if a man and his male descendants live in a social system that allows them to sire children with a large number of women. Such systems existed in many societies around the world.
Now geneticists say they have found Y-chromosome sequences that indicate at least 10 other major genetic lineages across Asia besides Genghis Khan's. Most of these can be traced back to periods in history when strong hierarchical structures began developing in societies in that part of the world. Those societies allowed powerful men to have many wives and concubines, increasing the chances that these genetic markers would be passed on to a growing share of the population.
Read MoreRomney: I'm not running for president in 2016
The study supports previous evidence suggesting that the Great Scourge of the Steppes was not the only prolific patriarch in history. Earlier studies identified a common ancestor in the Uí Néill dynasty of Ireland, and a Chinese nobleman known as Giocangga, whose lineage was spread through his descendants—monarchs and nobles in China's Qing Dynasty.
Read the full article in Nature Magazine.
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cc8acf9e651125b573b5cc82db20bbed | https://www.cnbc.com/2015/01/30/kenny-g-investing-was-crucial-to-my-success.html | Kenny G: Investing was crucial to my success | Kenny G: Investing was crucial to my success
VIDEO2:3002:30I'm an accounting major: Kenny GSquawk Alley
Kenny G, who has enjoyed a solo career that spans more than 30 years, says musicians entering the industry now should control their expenses and convert their finances into long-term investments.
"A lot of people don't get to be out there as long as I have. It can end any time, so be smart," said the 59-year-old sax player, whose real name is Kenneth Gorelick and has sold more than 75 million albums.
Musician Kenny G performs at Hard Rock Cafe, Times Square, Jan. 14, 2014, in New York.Gary Gershoff | WireImage | Getty Images
In an interview on CNBC's "Squawk Alley," he said multiple factors have driven his financial decision-making throughout his career. The smooth jazz artist said he actually majored in accounting in college because he "didn't want to study music" and gained a knack for "common sense" budgeting.
Read MoreDonny Osmond's advice: Reinvent yourself
Gorelick, who is widely considered one of the most successful instrumentalists of modern music, said he has always surrounded himself with smart people but has never hesitated to jump on a risky investment when he sees promise. A Seattle native, Gorelick used some of his musical earnings to invest in Starbucks in the mid-1980s as CEO Howard Schultz started to expand the company out of the Pacific Northwest.
"I didn't know really know that much about coffee, but he's such a charismatic guy, so smart, so passionate," Gorelick said.
He has also maintained investments in Apple and Microsoft, another company based in the Seattle area. Gorelick added that artists should not only branch off into new ventures, but also invest intelligently if they want long-term financial success.
"Be smart about your investments, don't think you're bigger than you are and don't think it'll last forever," he said.
Read MoreBob Dylan giving away album...to AARP members?
Even after 30 years in the business, the musician is still sporting his trademark long, curly locks. He joked that his famous hair certainly hasn't hurt his career, saying "you've got to have good hair."
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b2ab376579fea5b955c2814f3ead4c29 | https://www.cnbc.com/2015/01/30/tesla-apple-andelectronic-sex-toys-how-porn-stars-would-invest-10000.html | Adult Entertainment Expo | Adult Entertainment Expo
Source: Chris Morris
When it comes to the right place to invest your money, everyone has a suggestion. That's true in the world of adult entertainment as well.
Last week, as the stars and superstars of the porn world walked the red carpet before the AVN Awards—the industry's equivalent of the Oscars—CNBC decided to ask them how they'd invest if they had a little spare cash lying around.
Read More Goodbye geeks, hello guns! Porn's new partners
The premise was pretty basic: Stars were given $10,000 in (fictional) money to sink in whatever asset or sector they'd like. Somewhat predictably, many took the opportunity to mention their own companies and websites. Several noted that $10,000 wasn't a tremendous amount to invest. Still, everyone eventually figured out where they'd invest the cash.
Here are some of the more interesting answers.
—By Chris Morris, Special to CNBC Posted 31 Jan. 2015
Source: Chris Morris
"Apple. [The company] is always inventing new technology [and] everyone's going to want it, so it will never go down."
Source: Chris Morris
"Real estate. I own a few condos and they all went up. See, there have been a lot of economic problems with real estate, but...you don't get off the roller coaster in the middle of the ride…I didn't. Everything has gone back again. I have a bunch of good condos. They make a lot of money. I think that, right now, is the best place to invest. Entertainment is the worst place to invest."
Jessa Rhodes at the Adult Entertainment ExpoSource: Chris Morris
"I'd probably put it towards animal rescue. I'm very passionate about tigers, so that's my calling—eventually—is to have my own reservation."
Source: Chris Morris
"I'm a huge fan of biotechnology, so anything that seems like it's good for the future and the health of other people."
Source: Chris Morris
"I would probably put it into real estate. I'm trying to buy houses in areas other than California. I've had a house in Texas for a while."
"Or I would put it into my [simplified employee pension] where my financial advisor makes all the decisions."
Source: Chris Morris
"I'm really interested in owning a dog grooming business. I don't think it would be enough to start up...but it would cover the cost of pretty little bows in their hair."
Source: Chris Morris
"Tesla, absolutely. It's a great company. It's green. They're coming out with a more consumer friendly price point for the car. I think that's a really, really good idea."
Source: Chris Morris
"Teledildonics [electronic sex toys]. I think the future of sex is being able to connect online but also virtually—being able to actually experience the sensation of what your partner is doing at the time" when you might be separated from one another, she said.
Source: Chris Morris
"If I had $10K to invest in a company…I think I would invest in Uber—because I use it for everything and all of the porn community is obsessed with it, and so is LA and NY. Or maybe my favorite restaurant Chipotle."
Source: Chris Morris
"I would put it into a school to give them some sort of nutritional program to help people learn how to eat right, because I feel that's a huge epidemic in this country."
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d83f3878687f30b013ffcf8e03832e9b | https://www.cnbc.com/2015/02/01/roubini-why-qe-isnt-working.html | Roubini: Why QE isn’t working | Roubini: Why QE isn’t working
Jin Lee | Bloomberg | Getty Images
Unconventional central bank policies, including quantitative easing (QE) have failed to spur either inflation or growth as fiscal austerity continues to bite, Nouriel Roubini said in an op-ed for Project Syndicate.
"We live in a world in which there is too much supply and too little demand," wrote Roubini, the bearish economist known as "Dr. Doom," who successfully called the housing crash leading into the Global Financial Crisis. "The result is persistent disinflationary, if not deflationary, pressure, despite aggressive monetary easing."
Read More Hot topic for the 1 percent at Davos: Inequality
The reason all that easing hasn't caused inflation is because the post-2008 economic recovery has been anemic, amid a "painful deleveraging" after large buildups of both public and private debt, said Roubini, the head of Roubini Global Economics and a professor at New York University.
A host of factors have weighed on efforts to use monetary policy to spur inflation, he said, citing an output gap with firms facing limited pricing power and too many unemployed workers chasing too few jobs.
VIDEO2:0502:05ECB's QE: When will the economic benefits show?Worldwide Exchange
"Rising income inequality, by redistributing income from those who spend more to those who save more, has exacerbated the demand shortfall," Roubini said.
He also noted that property markets where booms turned to busts and rising bubbles in some other markets also pose risks. In addition, weaker commodity prices, in part due to China's slowdown, are spurring deflation, worsened by the mainland causing a global glut of manufactured and industrial goods, he said.
Read More Why surprise parties are central banks' new thing
Unconventional policies try to prevent deflation by weakening the currency and improving exports, but this "is a zero-sum game that merely exports deflation and recession to other economies," he said.
"To be effective, monetary stimulus needs to be accompanied by temporary fiscal stimulus, which is now lacking in all major economies. Indeed, the euro zone, the U.K., the U.S., and Japan are all pursuing varying degrees of fiscal austerity and consolidation," Roubini wrote.
He believes the International Monetary Fund's prescription for public investment in infrastructure is "compelling," but political constraints make it unlikely.
"This adds up to a recipe for continued slow growth, secular stagnation, disinflation, and even deflation," Roubini said.
Concerns the global economy faces a self-defeating spiral are gaining currency with other analysts as well.
"We're old, we're indebted and we're unequal. And if that happens, nominal growth just slows down," Ajay Kapur, head of Asia-Pacific and emerging markets strategy at Bank of America Merrill Lynch, told CNBC.
"Old people don't spend that much money. When you're indebted, the productivity of credit growth goes down" and the savings rates of the rich have gone from 20 percent pre-crisis to 40 percent currently, Kapur said.
"Mathematically, it's very difficult to push the economy forward, which is why you almost live in a world of perpetual QE, which is why we've been saying for a few years now that we're going to see low interest rates pretty much forever."
See Nouriel Roubini's op-ed in Project Syndicate here.
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5b296fc850c4019722b1b58975ce582a | https://www.cnbc.com/2015/02/02/a-third-of-mortgage-holders-dont-know-their-rate.html | A third of mortgage holders don't know their rate | A third of mortgage holders don't know their rate
VIDEO0:4500:45Sad, not surprising: People don't know their mortgage rate Power Lunch
Ask any American how much money they make for a living, and they'll tell you down to the weekly penny. Ask what interest rate governs their single-largest monthly expense, and more than a third don't know.
"Your mortgage rate is one of the most important numbers in your financial life, and there's a good chance that one of your neighbors has no idea regarding how much he or she is paying," said Holden Lewis, a senior mortgage analyst at Bankrate.com.
Bankrate.com surveyed a national sample of 1,000 adults and found that 35 percent did not know their mortgage interest rate. One in 7 mortgage holders were either "not too confident," "not at all confident" or had no idea about their rate.
"I'd have to ask my wife," said one borrower who asked not to be identified.
Martin Prescott | E+ | Getty Images
Most borrowers know within a general range, especially if they bought their home or refinanced their loan within the past five years.
Read More Who wins Super Bowl of housing? Seattle or Boston
"Our mortgage guy told us, 'Go home and frame this, it's the lowest I've seen in a long time,'" said Wesley Smith, who owns a home in Utah. Smith, however, was unsure of the exact rate. "I think 2.7, well it's in the high 2s."
Lenders say the finding is not at all surprising. Homebuying is stressful, and most borrowers are honed in on what their monthly payment will be, not how they get to that payment.
"They're in the heat of the moment, they're talking about rate, but really at the end of the day they're more focused on completing the process," said Matt Weaver, senior mortgage loan originator for PMAC Lending Services in Florida. "Once it's closed, it's just 'Said it, forget it.'"
Read More Pending home sales fell 3.7% in December
Most borrowers know the general range, Weaver said, with somewhere between a half and a quarter percentage point variance. That variance, however, can translate into meaningful savings, especially in today's changing lending environment. Mortgage rates have been dropping lately, and there are new lower-cost mortgage alternatives from the government.
Those two combined could make a refinance worthwhile, that is, if the borrower knows enough to apply.
"The issue is not so much that they don't know their mortgage rate, it's that they don't know that rates are a whole lot lower now," said Lewis.
Read MoreMixed signals for spring housing season
He recommends that borrowers check the current rates, and if they're not sure of their own rate, they should go check to make sure they're not missing out on an opportunity for savings; that is ... if they know where their paperwork is.
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bd28e5433e1a4b04c0057ba5c2ba9224 | https://www.cnbc.com/2015/02/02/analyst-this-is-the-bright-spot-for-us-markets.html | Tom Lee: This will turn market sentiment bullish | Tom Lee: This will turn market sentiment bullish
VIDEO0:2900:29It's been disappointing: Lee
Despite the "disappointing" start to the year, strategist Tom Lee is still bullish on the market. In fact, he still thinks stocks will have double-digit gains.
"We're really looking at a plethora of negative headlines— whether it's Europe, oil, dollar—but we really have to focus on some of the things that are going to matter, like consumer," the co-founder of Fundstrat Global Advisors said in an interview with "Squawk on the Street."
"The consumer, I think, is going to have some positive catalysts over the course of the year, and I think that is going to turn sentiment back into bullish."
For example, consumer credit is recovering, and lending standards are coming down, he said. That will play into stronger housing.
Lee expects consumer spending to pick up when people think the economic recovery feels permanent.
"I think it is a June quarter, March quarter story of consumer spending strengthening," he said.
Read MoreFebruary outlook: Retail, energy and a correction?
Lee also thinks the market will get a boost from the strong U.S. dollar. because it will cause P/Es to expand and will cause a flurry of mergers—with European companies buying U.S. firms, he said.
Although that's counterintutiive, he said 30 years of merger data show that "companies want to be where capital will have the best return.
He expects that M&A activity to take place in sectors like industrials, health care and materials
VIDEO3:0903:09Facing February market fearsSquawk Box
Strategist Bill Stone also thinks the consumer will see strength. He said markets got a glimpse of that strength in last week's disappointing report on economic growth,
"Buried underneath there was the bright spot. It was actually [the] consumer. If you only had the consumer last quarter, you would have actually had a growth rate and GDP higher than what we showed. So everything else net took away from GDP," PNC Asset Management Group's chief investment strategist said in a "Squawk Box" interview.
Read More
Data from the Commerce Department on Friday showed that GDP picked up 2.6 percent in the fourth quarter of 2014. Analysts had expected an uptick of 3 percent.
Economic growth surged 5 percent in the third quarter.
PNC it tilting away from cyclical stocks in the face of weak demand abroad, Stone said. The firm is increasing its exposure to consumer staples and continues to be bullish on health care.
Read More Here today, up tomorrow: Why gas prices may be on the rise
PNC is also positive on financials ahead of the Federal Reserve's anticipate interest rate hike. The steep yield curve over the long run and a focus on U.S. business should also boost financials, Stone said.
The Dow Jones Industrial Average, S&P 500, and fell for two consecutive months. The S&P financials surpassed energy as the worst performing sector in January.
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8765e9111a7774c5b002836dfb4f6c1c | https://www.cnbc.com/2015/02/02/sors-have-such-a-hard-time-reaching-women.html | Why do advisors have such a hard time reaching women? | Why do advisors have such a hard time reaching women?
John Burke | Photodisc | Getty Images
Depending on how you look at it, the financial advisory industry has either a huge opportunity—or a huge problem.
In the next five years, private wealth is expected to grow from $14 trillion to $22 trillion. And women will control an estimated two-thirds of that money. But many investment advisors will never see a dime of it because they don't know how to attract, or retain, female clients.
"Women represent a huge and growing opportunity," Eileen O'Connor, co-founder of Virginia-based Hemington Wealth Management, told attendees last week at TD Ameritrade's Advisor Conference. "[But] we're doing a horrible job working with women as a whole."
For as long as many advisory firms have been in business they have largely catered to men, perhaps because they were traditionally the family breadwinners and money managers. Those roles may be shifting in marriages now—an oft-cited 2013 Pew Research study found women were the breadwinners in 40 percent of households with kids—but the perception that advisors pay more attention to male clients has not.
And it's not unfounded. A study by Fidelity Investments found that even when couples interact with a financial advisor, men are still 58 percent more likely than women to be the primary contact. That may help explain why when male clients pass away, their widows are more likely than not to fire their advisors.
Seventy percent of women leave their advisors within a year of their husband's death, David Bach, author of "Smart Women Finish Rich" and vice chair of Edelman Financial, told attendees at the advisor conference. "In most cases we're still ignoring the wife," he said, " and that has to change."
Read MoreThe biggest financial threat women face
Reaching and retaining female clients is a challenge that has vexed the financial services industry for years. But progress has been slow.
Part of the problem is that there are so few women in the industry, said Shannon Eusey, president of Newport Beach, Calif.-based Beacon Pointe Advisors.
Only three in 10 advisors are women, according to a 2013 Insured Retirement Institute study, yet 70 percent of women seeking advisors say they would prefer to work with a woman.
Eusey and others note that, while female and male clients have similar goals, their approach to financial planning is different. Women tend to put more emphasis on empathy and education, and they may feel more comfortable working with other women who understand their needs. "Men are talking to women the way they talk to men, and that's not going to work," said Eusey, whose staff of more than 75 is nearly two-thirds female.
The industry does seem to be in agreement that if advisory firms are going to reach more women as clients, they're going to have to hire more of them as well. But despite efforts to recruit more women, the percentage of women in the industry has remained relatively flat over the last few years.
"We have a tough time getting the message out that this is actually a great career for women," said Cathy Curtis, head of Oakland, Calif.-based Curtis Financial Planning.
A report published last year by the Certified Financial Planners Board found that "a lack of awareness of, and misperceptions about financial planning and the CFP certification have the effect of diminishing the career's perceived value [for women], while the prospect of having to struggle with discrimination, bias and an unwelcoming environment increases costs of entry."
"Women don't know a lot about the profession and the different opportunities available," said Eusey, adding that many aren't even aware that wealth management is a career option.
Read More What do women want? Financial advisors who get it
The irony, say female advisors, is that the financial advisory profession caters both to women's strengths and their need for flexible work schedules. "You need to be a great communicator, empathetic, a good listener," said Curtis. "And it's a job that can be really flexible, so there's a good work-life balance."
Can is the operative word though. Eusey, who has four children, says she typically works from home one day a week and tries to set an example from the top that work-life balance is important. And many independent advisors say the nature of their jobs allows them to work remotely and to enjoy more flexibility than a traditional 9-to-5 career. But a lot depends on the structure, culture and policies of the firm.
"You need to ask yourselves: How is your firm being run? Is it just about the statistics and the bottom line or are you creating an environment of joy and one with work-life balance?" asked Ric Edelman, the chairman and CEO of Edelman Financial Services, in a presentation to hundreds of investment advisors at TD Ameritrade's conference.
"If you're going to attract women advisors you have to have an environment in which they can succeed," said Edelmen, adding that about 25 percent of the advisors at his firm are women and three of his four top performers are women.
"The fact is: It's really not hard to serve women well," he said—whether they're advisors or clients.
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7232b06846d680674e01441f08ece2cd | https://www.cnbc.com/2015/02/02/vaccines-should-be-voluntary-rand-paul.html?utm_source=twitterfeed&utm_medium=twitter | Vaccines should be voluntary: Rand Paul | Vaccines should be voluntary: Rand Paul
VIDEO9:1309:13Defensive? Sen. Rand Paul on voluntary vaccinesClosing Bell
While vaccines have been one of the greatest medical breakthroughs in U.S. history, they should be voluntary, Sen. Rand Paul, R-Ky., told CNBC on Monday.
It's an issue of freedom, he said.
"I'm not arguing vaccines are a bad idea. I think they are a good thing. But I think the parent should have some input. The state doesn't own our children. Parents own the children," Paul said in an interview with "Closing Bell."
Paul was echoing comments he made earlier in the day to conservative radio host Laura Ingraham.
"What happens if you have somebody not wanting to take the smallpox vaccine and it ruins it for everybody else? I think there are times in which there can be some rules, but for the first part it ought to be voluntary," he told Ingraham.
Senator Rand PaulMichael Kovac | Getty Images
The controversy over vaccinations has picked up steam with the recent outbreak of measles, which originated at Disneyland in California and has since spread over several states.
Read MoreThe US measles threat: Now at 'critical point'
"Public awareness of how good vaccines are for kids and how they are good for public health is a great idea," the senator said. However, "I don't think there is anything extraordinary about resorting to freedom."
Paul specifically took issue with the Hepatitis B vaccine being given to newborns, and the fact that multiple vaccines are given at the same time.
"I've heard of many tragic cases of walking, talking normal children who wound up with profound mental disorders after vaccines," he said.
Meanwhile, U.S. companies with cash overseas would be able to bring that money back into the country at a 6.5 percent tax rate under a new proposal by Paul and Sen. Barbara Boxer, D-Calif., instead of the current 35 percent rate.
Tax experts have criticized the proposal, saying it would raise federal revenues at first, but would reduce them in the long run and encourage companies to shift more profits abroad and wait for the next tax holiday.
Paul insisted those critics are wrong, citing a study that showed the 2005 tax holiday brought $300 billion of new capital to the U.S. and $30 billion of new tax revenue.
"The whole purpose of doing this is to bring money home," he told CNBC on Monday. "This is to lower [the] tax rate, to bring more money home and to take that new money, some of the tax revenue, and put it into the highway fund. I think this is a win, win, win."
Read MoreObama: 'Critical error' if this doesn't happen
While he'd like to make the rate permanent, or even make it lower, Paul said this was the best chance to get a lower rate signed into law this year.
"This proposal is for five years and the hope is that we will actually see that it is a net positive over five years and that we will renew it and hopefully this is a step towards making it permanent."
Paul also told CNBC he was thinking about a run for the White House in 2016.
"We're looking around the United States and seeing if the message resonates."
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8a61c1dd35471bec80198fe482d9df25 | https://www.cnbc.com/2015/02/03/how-to-rent-the-apple-watch-before-buying-it.html | How to rent the Apple Watch before buying it | How to rent the Apple Watch before buying it
The Apple Watch during an Apple event in Cupertino, CaliforniaGetty Images
Consumers who are on the fence about buying the Apple Watch will be able to take it for a test drive, so to speak, before deciding whether or not it's worth the investment.
The gadget rental start-up called Lumoid plans to rent Apple Watches as part of its wearable rental program for consumers, said, Aarthi Ramamurthy, the company's founder and CEO.
VIDEO2:3302:33Apple Watch huge risk point: TraderClosing Bell
Lumoid will roll out a waiting list on its website later this week for consumers looking to get their hands on the device when it begins shipping in April.
While details about all the applications for the Apple Watch are still emerging, industry pros are certain of one thing: The smartwatch will cost what is for most people a small fortune.
It's expected to begin pricing at $350 for the Sport model and could potentially cost as much as $5,000 for the gold edition. The iPhone maker is even reportedly installing safes in its stores to secure the high-end wearables.
Read MoreApple Watch shipping in April
Before breaking the bank on the smartwatch, consumers should be able to try it out, Ramamurthy said.
Currently, Lumoid lets customers rent a set of five wearable devices to test for seven days. At the end of the week, if the customer decides not to make a purchase, they only pay $20. That fee, however, is waived if they decide to buy one of the brands they tested. Then Lumoid ships a new model of the chosen device to the customer.
The Apple Watch will be included in this program when it becomes available, Ramamurthy said. The price for renting a set of wearables that includes the Apple device, though, will likely be priced a little more than $20, she said.
The San Francisco-based start-up, which is partly backed by Y-Combinator, also plans soon to include other new smart watches, as well, including Motorola's Moto 360.
Lumoid, which launched in January 2014, originally only rented out photo and video gear, including professional cameras, GoPros and even drones. These devices can still be rented on the company's site for a daily fee that varies based on the device.
Read More Apple Watch battery life as short as 2.5 hours, report says
But the company expanded its business into the wearables market in mid-January because it saw an opportunity to sell more devices by helping consumers decide which device best suited their needs, Ramamurthy said.
"The wearable market is really expanding," she said. "In wearables, people want to track anything from heart rate to how fast they are walking to running all the way to their blood pressure. So we looked at the market and thought there could be a slightly different business model compared to the photo video stuff."
The company, which currently only does business in the U.S., has had a few hundred orders for wearables on its site. And while the program is still in its infancy, about 48 percent of customers are buying one of the devices they tested, Ramamurthy said.
Read MoreFive Apple predictions for 2015
Some other devices consumers can rent from Lumoid include Google Glass Explorer Edition for $18 per day, a DJI Phantom 2 drone with a GoPro for $45 per day and a Polaroid Cube camera for $4 per day.
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4f1a20ce84672da30da1c0a51a87f133 | https://www.cnbc.com/2015/02/03/owdfinance-50-index.html | The CNBC Crowdfinance 50 Index | The CNBC Crowdfinance 50 Index
To get a pulse reading on the emerging equity crowdfunding market, take a look at the CNBC Crowdfinance Index. It is the average index of the 50 largest capital commitments by private U.S. companies listed on Crowdnetic's data platform, which collates real-time offerings from securities-based crowdfunding platforms, including Alchemy Global, Crowdfunder, CrowdStreet, EarlyShares, EquityNet, Jumpstart Micro, MicroVentures, OurCrowd, Patch of Land, Prodigy Network, Realty Mogul, Seed Equity, SeedInvest and Wefunder.
Companies represented on the index are operating companies raising money, not equity funds. They represent eight sectors: commerce and industry; consumer goods; energy; finance; health care; materials; services and technology. These companies are conducting offerings pursuant to Title II [Rule 506(c)] or Title III (Regulation Crowdfunding) of the JOBS Act.
The CNBC Crowdfinance Real Estate Average
The CNBC Crowdfinance Services Index
The CNBC Crowdfinance Technology Index
The CNBC Crowdfinance Vice Average
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ead720df9e9110686ce4297590fc627d | https://www.cnbc.com/2015/02/03/rich-chinese-spending-less-at-home-more-in-europe.html | Rich Chinese spending less at home, more in Europe | Rich Chinese spending less at home, more in Europe
Luxury companies have a new mantra—sell to the Chinese, just not in China.
Chinese now represent close to a third of all luxury sales around the world, but about two-thirds of their spending is overseas, according to a new report from HSBC.
The study, called the "Globe-trotting Shopper," said Chinese tourists will be the biggest driver of luxury growth in the coming years. And their spending will increasingly move beyond Hong Kong and Macau and push further into Europe, Australia and the U.S.
Asian tourists stand in front of the Louis Vuitton shop on the Champs-Elysees in Paris.Fred Dufour | AFP | Getty Images
Europe is expected to be the big beneficiary in the coming year, as the weak euro makes shopping and traveling on the Continent less expensive. Chinese tourists now account for 40 percent of all luxury sales in France, 35 percent of luxury sales in Italy and 25 percent of luxury sales in the U.K., according to the HSBC report. It said that Chinese tourists devote 80 percent of their spending budget—or about 11,000 euros ($13,000)—to shopping while they're in Paris.
In the U.S., Chinese tourists account for only 10 percent of sales, but that's expected to grow, the report said. It said Chinese tourism in the U.S. is projected to jump fourfold by 2021 and "luxury should benefit a lot from Chinese tourism."
The crackdown on corruption in China as well as the country's slowing economic growth is hurting domestic sales of high-end goods—from watches and handbags to wine and sports cars. Luxury giant LVMH just reported its first decline in annual operating profit since 2009, as sales in China slowed.
VIDEO2:1902:19Luxury cool down ... sort ofClosing Bell
Rather than building more stores in China, HSBC said luxury companies have to better cater to Chinese shopping abroad—through improved service, more attentive staff and (at least in France) more shopper-friendly hours.
It said Moncler, Burberry and Richemont are among the companies poised to benefit from the traveling Chinese.
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6d31964cde676d5b19e37c3e2436a828 | https://www.cnbc.com/2015/02/03/the-cnbc-crowdfinance-services-index.html | The CNBC Crowdfinance Services Index | The CNBC Crowdfinance Services Index
The CNBC Crowdfinance Services Index is an average index of the 25 largest capital commitments by private U.S. services companies listed on Crowdnetic's data platform, which collates real-time offerings on securities-based crowdfunding sites: Alchemy Global, Crowdfunder, EquityNet, Jumpstart Micro, MicroVentures, OurCrowd, SeedInvest, and Wefunder.
Read MoreCNBC Crowdfinance 50 Index
Companies represented on the index are operating companies raising money, not equity funds.
The CNBC Crowdfinance Real Estate Average
The CNBC Crowdfinance Technology Index
The CNBC Crowdfinance Vice Average
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9a4abf13b817dd0610f486429c9898ce | https://www.cnbc.com/2015/02/03/twitter-bringing-promoted-tweets-to-other-feeds.html | Twitter bringing 'Promoted Tweets' to other feeds | Twitter bringing 'Promoted Tweets' to other feeds
Andrew Harrer | Bloomberg | Getty Images
Dick Costolo is bringing Twitter's 'Promoted Tweet' ads outside user feeds on Twitter and its apps to Twitter feeds on Flipboard and Yahoo Japan.
Until now, when Twitter users read tweets outside the company's own apps—on news sites, like Yahoo, or apps that aggregate social content—there were no ads. Now, when users scan through their Tweets on Flipboard, ads will be inserted in there, just as they are on Twitter's apps.
For Twitter, this is a way to allow advertisers to reach a broader audience, beyond just those reading tweets on its own services, giving Twitter an opportunity to make more money. It also builds on Costolo's push for the company to cash in on the broadest audience of people who see tweets, even if they aren't logged in. Twitter isn't revealing the business model, but presumably the publishers would take a cut of Twitter's revenue from the ads.
Read More Who won the social Super Bowl? Twitter vs. Facebook vs. YouTube
"In the third quarter of 2014 there were approximately 185 Billion Tweet impressions off of Twitter," writes Ameet Ranadive, Twitter's senior director of product, in a blog announcing the news. "For the thousands of brands already advertising on Twitter, these new partnerships open a significant opportunity to extend the reach of their message to a larger audience. Twitter syndicated ads will be seen by users within Twitter content sections on third-party properties, as well as within third-party content areas."
This is a long time coming: In April Twitter announced it would start testing the ability of advertisers to run their marketing campaigns outside Twitter. Now that the company has announced its first two partners, we'll see how quickly those ads start to roll out—it's at the discretion of Flipboard and Twitter Japan.
VIDEO2:0502:05Is Twitter dead money?Fast Money
Just how big will this be for Twitter? Ranadive points out that thousands of Web and mobile apps already syndicate tweets. "Combine that with the flexibility and control of a Promoted Tweet," he writes, "and we think marketers will have an almost infinite capacity to create large-scale, rich and well-targeted advertising campaigns across a variety of platforms."
Read More Twitter video a powder keg, in a good way: Angel investor
This change comes just the week after Twitter announced a new camera and video tools for users, as well as the ability to do group chat. This latest announcement gives Costolo more ammunition as he looks to show investors that he's accelerating the pace of innovation. That's a message he's sure to repeat when the company announces earnings after the closing bell Thursday.
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bf3e98fcd08cac56c6509f34a0ad08e5 | https://www.cnbc.com/2015/02/03/us-loses-11k-per-measles-case-expert.html | US loses $11K per measles case: Expert | US loses $11K per measles case: Expert
VIDEO3:3703:37Economics of measles outbreakClosing Bell
The immediate economic effect of measles is small, but a continued outbreak to a relatively small portion of the American population would drain hundreds of billions of dollars from the U.S. economy, a health-care expert said on Tuesday.
"There could be a significant impact, for sure," said Ipsita Smolinski, managing director for health-care research and consulting firm Capitol Street on CNBC's "Street Signs."
In January, 102 measles cases were documented in the United States, more than most entire years since 2000. The disease and its vaccination have become highly publicized and politicized since an outbreak last month linked to Disneyland in California.
Read MoreWhy vaccines can't be a choice: Disease specialist
The current number of cases poses no immediate threat to the American economy, Smolinski said. But with an estimated cost of $11,000 per case, including treatment, research and lost labor, a breakout to even 5 percent of the population is "certainly concerning," she argued.
That cost would amount to roughly $175 billion, according to government estimates of the U.S. population. Even with a small chance of a larger outbreak, prolonged hysteria could lead to people avoiding airlines, retail stores or other public spaces, she added.
Read MoreExpect measles outbreak to continue: Doctor
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46c666806da83ae5785fbb6ebfb8aa35 | https://www.cnbc.com/2015/02/04/alibaba-tests-drone-deliveries-after-amazon-push.html | Alibaba tests drone deliveries after Amazon push | Alibaba tests drone deliveries after Amazon push
Alizila
Alibaba is testing drones to deliver ginger tea ordered from its Taobao e-commerce website, the company confirmed on Wednesday, as it steps up efforts to compete with American rival Amazon.
The Chinese internet group has teamed up with delivery company Shanghai YTO Express Logistics to launch a drone delivery trial in Beijing, Shanghai and Guangzhou on Wednesday, according to a blog post on Alibaba's e-commerce news website Alizila.
The move follows Amazon's announcement in 2013 that it would be testing drones to deliver packages to customers in 30 minutes or less, although the program, dubbed "Prime Air," has faced regulatory hurdles in the U.S.
Alibaba claims that its 49-renimbi ($7.84) ginger tea packets will be delivered within the hour.
Some 450 customers will take part in what the Chinese e-commerce giant described as a "one-off" test, in which tea ordered on Taobao between February 4-6 will be delivered to particular regions by drone on a first-come-first-serve basis
The drones won't land directly on a consumer's front door, but will instead land outside a residential buildings to be collected by human couriers who take over the final part of the delivery.
It comes just days after a drone made by Chinese company DJI , underlining concerns about unmanned vehicles in civilian airspace.
In the U.S., where drones are all-but banned, except when the . On Tuesday, the FAA dished out eight exemptions to companies for commercial use of small drones, however, indicating a willingness to progress in this area.
Regulation is also very tight in China, and operators of drones must seek permission from the Civil Aviation Administration of China before flying the machine.
Read MoreSmall firms' hopes soar on Amazon drone plan
And even Alibaba admitted that the full-scale use of delivery drones was some way off.
"By conducting the trial, Taobao and YTO Express officials aren't hinting that drone-delivery service is ripe for commercialization… aviation authorities in China and the U.S. are pondering regulations to govern such activities," the Alizila blog post said.
A spokesperson for Alibaba told CNBC it followed the regulations set by the aviation authority, and that there were "no further plans" for a delivery-by-drone scheme.
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182bdde400a29ff50959ceeb514662ee | https://www.cnbc.com/2015/02/04/health-insurer-anthem-hit-by-hackers-report.html | Anthem hacked, millions of records likely stolen | Anthem hacked, millions of records likely stolen
VIDEO2:2902:29Can companies be too big to hack?Street Signs
Anthem said Wednesday that its database has been hacked, potentially exposing personal information about 80 million of its customers and employees.
The health insurer said the breach exposed "names, birthdays, social security numbers, street addresses, email addresses and employment information, including income data," but added that no financial information, including credit card details, was compromised.
"Cyber attackers executed a very sophisticated attack to gain unauthorized access to one of Anthem's IT systems and have obtained personal information relating to from consumers and Anthem employees who are currently covered, or who have received coverage in the past," the U.S. second largest insurer said in a statement.
An earlier report by the Wall Street Journal said the breach was discovered last week and investigators are still determining the extent of the incursion in what could be the largest data breach disclosed by a health-care company.
Anthem said it will notify the affected members individually.
The FBI had warned last August that healthcare industry companies are being targeted by hackers, following an attack on U.S. hospital group Community Health Systems Inc that resulted in the theft of millions of patient records.
Medical identity theft is often not immediately identified by patients or their provider, giving criminals years to milk such credentials. That makes medical data more valuable than credit cards, which tend to be quickly canceled by banks once fraud is detected.
— Reuters contributed to this story
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658f044212af472e0b89ff6db687370b | https://www.cnbc.com/2015/02/04/russia-cuts-vodka-prices-as-drinkers-turn-to-moonshine.html | Russia cuts vodka prices on moonshine fears | Russia cuts vodka prices on moonshine fears
Food prices might be soaring in Russia, as inflation continues to rise – but the cost of one Russian staple is coming down: vodka.
The Russian government has cut the minimum price of vodka, in an attempt to stop people turning to moonshine – or high-proof counterfeit spirits – amid rising prices, according to local media reports.
Andrey Rudakov | Bloomberg | Getty Images
The minimum price of half a liter of vodka was cut to 185 roubles ($2.70), a reduction of 16 percent on the previous minimum price of 220 rubles, The Moscow Times reported earlier this week.
Read MoreRussia central bank cuts key rate to 15%—1 month after hike
The minimum retail price for vodka was first set in 2009 as part of a government crackdown on binge drinking. In 2014, the price was raised from 89 rubles ($1.20) to 199 rubles ($2.80), before being hiked to a record high of 220 rubles ($3.16) per half liter, the paper reported.
The price cut comes as the economic crisis in Russia starts to take its toll on the civilian population, and rising prices have pushed some to counterfeit versions of the country's traditional drink.
Counterfeit alcohol consumption has grown "as much as 65 percent" since the government's minimum-pricing policy was introduced, Vadim Drobiz, head of the Center for Federal and Regional Alcohol Market Studies think tank, told The Moscow Times.
Accompanying the rise in moonshine consumption was a fall in official vodka production, which slipped 22 percent in 2014, according to state statistics agency Rosstat.
Russia's economy has been hit hard by the severe decline in global oil prices and Western sanctions imposed on the country for its part in the Ukraine conflict. This, in turn, has caused the ruble to weaken dramatically, further pushing up the rate of inflation.
Read MoreRussia's bank rescue plans: Too little, too late?
In 2014, price growth was estimated at 11.4 percent, according to Rosstat, prompting the Russian central bank to hike interest rates to 17 percent in December in an effort to shore up the currency and push down inflation.
Although the central bank cut rates in January, the country's economy ministry warned last month that inflation could peak between 15-17 percent on an annual basis this year.
The Moscow Times contributed reporting to this story.
- By CNBC's Holly Ellyatt, follow her on Twitter @HollyEllyatt. Follow us on Twitter: @CNBCWorld
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75a0bdee0a8223f4adae609c6b1ad661 | https://www.cnbc.com/2015/02/04/staples-is-buying-office-depot.html | Staples agrees to buy Office Depot for $6.3 bln | Staples agrees to buy Office Depot for $6.3 bln
Getty Images
Staples, the No. 1 U.S. office supplier, agreed to buy nearest rival Office Depot in a $6.3 billion cash-and-stock deal to better compete against online and big-box retailers.
Staples said it would pay $7.25 per share in cash and 0.2188 of its shares for each Office Depot share.
The offer, which is likely to face close antitrust scrutiny, values Office Depot at $11.00 per share, based on Staples closing price on Feb. 2, the last trading day prior to media speculation that a deal was near.
Read More Early movers: UPS, WEN, RSH, AET, SPLS, ODP & more
The offer price is a premium of 44 percent to Office Depot's Monday's close.
Online retailers such as such as Amazon.com and big-box chains such as Wal-Mart Stores have eaten into the sales of office supply retailers.
Last month, activist investor Starboard Value called for the two companies to merge, saying a combined entity would lead to greater cost savings.
Read More How did Americans spend their gas savings? We now know
Starboard, known for its aggressive shareholder activism, had a 5.1 percent stake in Staples as of December and boosted its holding in Office Depot to nearly 10 percent the same month.
Staples said on Wednesday that it began talks to buy Office Depot in September. The deal is expected to close by the end of 2015.
Office Depot's shares closed up 21.6 percent at $9.28 on the Nasdaq on Tuesday after the Wall Street Journal reported that the two companies were in advanced talks.
Read More Staples, Office Depot in advanced talks to merge: WSJ
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a218abaf52a22cff4b634cbd19d21ae9 | https://www.cnbc.com/2015/02/04/start-up-hopes-to-take-its-ski-boot-to-the-apex.html | Start-up hopes to take its ski boot to the apex | Start-up hopes to take its ski boot to the apex
VIDEO5:3205:32Start-up hopes to take its ski boot to the apexPower Pitch
With ski season in full swing, one Colorado start-up is revamping the traditional ski boot. Unlike those old-school boots, Apex Ski Boots founder Denny Hanson says, you'll find his comfortable.
Watch Hanson pitch his start-up to a panel with Dennis Crowley, a former ski and snowboard instructor and Foursquare founder, Sam Moulton, executive editor of Outside Magazine, and Alicia Syrett, a lifelong skier and New York Angels board member.
Will this panel on CNBC's "Power Pitch" call the boots Black Diamond worthy? Click the video to find out.
A ski industry veteran and skier of 60 years, Hanson is no bunny to the slopes. He co-founded Hanson Ski Boots with his brother Chris. The two introduced a rear entry ski boot in the 1970s. The goal then was to make getting in and out of ski boots easier.
With Apex Ski Boots, a start-up founded in 2008, the Hansons are going for comfort.
"The biggest complaint from skiers of all ages and abilities is that their boots are uncomfortable," Denny Hanson told CNBC.
The boots, designed in Boulder, Colorado, and manufactured in China, combine an inner boot you can walk in with an open chassis for skiing. Hanson said the system is easy to put on and take off, and can be used for snowboarding, hiking, snowmobiling and walking to and from the ski hill.
When customers want to ski, they slide the inner boot into the rigid outer shell of the boot.
"The Apex boot shatters the myth that ski boots must hurt in order to perform well," Hanson told CNBC.
During the segment, Crowley asked why he hadn't seen anyone on the slopes with Hanson's Apex Ski Boot.
"We really started our approach to the market in the Rocky Mountains. If you were to go to Beaver Creek or Vail, Aspen, and Steamboat, you'd find a lot of Apex boots on the slope," Hanson said. He added that 10,000 skiers wear Apex Ski Boots worldwide.
But Apex Ski Boots glides down a crowded slope, competing with major brands like Head, Salomon, Nordica, Tecnica, Fischer, Atomic, Rossignol and Lange.
Read More 'Smart' glove that controls your phone
Yet, Hanson's boots line the shelves of more than 150 stores across the U.S, including major sports retail outlets like REI, Sports Odyssey and Ski Haus. The start-up ships internationally to most Alpine skiing countries from Canada to New Zealand. Apex prices its boots from $595 to $1,295, offering seven different models in different colors and styles. Hanson projects the company will be profitable by ski season of 2016.
One of Apex Ski Boots’ sylesSource: Apex Ski Boot
Hanson would not disclose monthly revenues, stressing that the ski industry is seasonal. He confirmed the start-up continues annually, with revenues up 25 percent year over year.
Since its launch, Apex Ski Boots has raised $4.9 million in funds, with investments from family, friends and angel investors. It is currently crowdfunding on angel investment platform, Circle Up, which focuses on consumer based products.
According to Hanson, Apex has raised $205,000 on Circle Up so far, with several additional verbal commitments that he said will be confirmed before closing on Feb. 27.
--Comments, questions, suggestions? We'd love to hear from you. Follow us @CNBCPowerPitch and join the #PowerPitchconversation.
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b2c7f7b97bcf42778fa08a24ba10ad23 | https://www.cnbc.com/2015/02/04/stocks-open-lower-weighed-by-oil-global-markets-eyed.html | Stocks close mostly lower on Greek news; Dow ekes out gain | Stocks close mostly lower on Greek news; Dow ekes out gain
VIDEO1:4001:40Pisani: The 1,000 point churnClosing Bell
VIDEO2:3802:38ECB: Can't assume successful end to Greek bailout review Closing Bell
VIDEO1:4701:47Volatility will continue: Trader Closing Bell
U.S. stocks closed mostly lower on Wednesday on news that the European Central Bank revoked a waiver that allowed banks to use Greek government debt as collateral for loans. Only the Dow Jones Industrial Average managed to close higher by 0.04 percent.
Just before the news around 3:30 p.m., stocks had turned positive with the Dow jumping more than 100 points. The Dollar, Euro, and U.S. 10-year all spiked going into the close.
"News out of the Greece negotiation process is causing investors to take profits," said Art Hogan, chief market strategist at Wunderlich Securities.
Read MoreECB: Banks can't use Greek debt as collateral
"The European Central Bank is telling the Greek banking system that it will no longer accept Greek bonds as collateral for any repurchase agreement the Greek banks want to conduct," said Peter Boockvar, chief market analyst at The Lindsey Group, said in a note.
"This is because the ECB only accepts investment grade paper and up until today gave Greece a waiver to this clause. That waiver has now been taken away and Greek banks now have to go to the Greek Central Bank and tap their Emergency Liquidity Assistance facility for funding," he said. "This news will like scare depositors and result in further bank runs. This all said, if Greece can come to an agreement with the troika, I'm sure the ECB will reinstate the waiver."
Donald Luskin, chief investment officer at TrendMacro, played down the news.
"If you put both of today's policy moves together (revoking the waiver and adding the Emergency Liquidity Assistance fund), what it means is that the Greek government—not the Eurosystem—will be on the hook for collateral. But there will still be a funding mechanism for the banks, in case there is a serious run on them," he said. "That's the important thing."
U.S. stocks held up relatively well for much of the day despite pressure from significant declines in oil.
"I don't think in this entire cycle (we've had a day) where oil's been off and markets stayed (mostly) up," Hogan said. "I think it's a testament to better economic data, ISM figures and auto sales."
Crude oil futures settled down nearly 9 percent below $49 a barrel, erasing almost all the big gains from the past two days.
Read MoreUS crude oil tumbles 9% on record-high stockpiles
Chevron, Caterpillar and Exxon Mobil closed in the red after leading the recent market rally, although they did not give back all their gains.
"The market knows we need some stabilization in energy prices for the economy to grow," said Nick Raich, CEO of The Earnings Scout.
Oil prices have fallen around 50 percent from a high of $114 a barrel last June on the back of an over-supply and lack of demand.
This week's earlier rebound sparked hopes that prices had hit a bottom after a seven-month rout, but growth concerns in China have prompted renewed concern for global oil demand.
China's services sector grew at the slowest pace in six months in January as growth in new business weakened, an HSBC services purchasing manager's index (PMI) showed Wednesday, Reuters reported.
China's central bank increased its economic stimulus measures even further Wednesday by cutting the reserve requirement ratio (RRR) amid growing concerns about the rate of expansion in the world's second-largest economy. The 50-basis points reduction to 19.5 percent, effective Thursday, is the first such cut since May 2012. This will lower the amount of deposits that each lender is required to hold as reserves.
Read MoreIs volatility finished? Market signs to watch
U.S. stock index futures were negative on Wednesday, as a tentative rebound in oil prices faded. Asian and European markets also traded lower as oil prices declined, putting the brakes on a rally that had seen prices rise over 19 percent over the last four sessions.
The earlier oil rally pushed U.S. stocks significantly higher for two consecutive sessions on Monday and Tuesday.
"(Wednesday) ought to be a fairly quiet, uneventful day unless oil prices go sharply lower or rebound," said Randy Frederick, chief managing director of trading and derivatives at Charles Schwab. "Wouldn't be surprising to see the market take a bit of a sideways breather today after the rally."
Traders work the floor of the New York Stock Exchange.Getty Images
The ISM non-manufacturing Index posted 56.7 for January, a slight increase from December as economic activity in the services sector grew for the 60th consecutive month.
Boockvar said in a note that the figure was good but internal components "were very mixed."
Earlier, the Purchasing Managers Index for the service sector rose in January, although companies reported the weakest level of new business growth in more than five years, financial data firm Markit said.
The ADP Employment report, which is seen as a precursor to Friday's important jobs report, showed January payrolls increased by 213,000, below estimates of 225,000.
"Bottom line, job gains slowed, due in part to the energy sector but at more than 200,000, the monthly job gains still remain good, not great," Boockvar said.
"Friday's payroll estimate for the private sector is 228,000 with an unchanged unemployment rate of 5.6 percent," he said. "But, with monthly job gains continuing at plus-200,000, the unemployment rate could be at the Fed's non-accelerating inflation rate of unemployment by the time they walk into their April meeting. If they aren't raising rates by June, they'll have some explaining to do, especially if commodity prices have stopped going down."
Read MoreAfter 1,200 days, is a correction in the cards?
Total mortgage application volume increased 1.3 percent on a seasonally adjusted basis last week from one week earlier, according to the Mortgage Bankers Association.
The Cleveland Federal Reserve's President Loretta Mester, a non-voting member of the Fed, said on Wednesday that the .
Major U.S. Indexes
The Dow Jones Industrial Average closed up 6.62 points, or 0.04 percent, at 17,673.02, with Walt Disney closing up 7.63 percent to lead blue chip gains and Merck down 3.23 percent as the greatest laggard.
Disney jumped as much as 8 percent to a new high following a blowout earnings report after the bell Tuesday. The combined gains of Disney and Visa, which rose about 2 percent, added more than 80 points to the Dow Jones Industrial Average and pushed the index into positive territory in mid-morning trade.
"(Disney's) $170 billion market cap can have a bigger influence than small caps," said Marc Chaikin, CEO of Chaikin Analytics. "I think the market is going to run into some profit taking here. If crude continues to fall we will move back down."
The S&P 500 closed down 8.52 points, or 0.42 percent, at 2,041.51, with consumer discretionary leading gains for four sectors and energy losing 1.61 percent as the greatest decliner.
The Nasdaq closed down 11.0 points, or 0.23 percent, at 4,716.70.
Apple shares briefly rose more than 1 percent to hit a record intra-day high of more than $120 a share on a split-adjusted basis.
Read MoreWednesday's midday movers: Comcast, Apple & more
In encouraging news for the stock after Apple's strong earnings report last week, ABI Research reported on Wednesday that Android smartphone shipments fell for the first time in the fourth quarter of 2014 while Apple's iOS gained 90 percent.
The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, traded just above 18.
Decliners were a step ahead of advancers on the New York Stock Exchange, with an exchange volume of 899.7 million and a composite volume of 4.1 billion in the close.
High-frequency trading accounts for about 47.5 percent of trade volume this year, down from a peak of 61 percent in 2009, according to TABB Group estimates.
The U.S. 10-year Treasury note yield fell to 1.76 percent. The U.S. dollar gained against major world currencies.
Crude oil settled down $4.60, or 8.7 percent, at $48.45 a barrel on the New York Mercantile Exchange. Gold futures settled up $3.00, or 0.24 percent, at $1,264.50 an ounce.
—Reuters contributed to this report.
On tap this week:
Wednesday
Earnings: 21st Century Fox, Allstate, CBRE Group, Everest Re, Keurig Green Mountain, Lincoln National, Prudential Financial, Under Armour, Weatherford International, Yum Brands
Thursday
Earnings: AstraZeneca, BNP Paribas, Daimler, Philip Morris, Sanofi,Michael Kors, Sirius XM Radio, Sprint, TevaPharma, Activision Blizzard,CME Group, Expedia, GoPro, LinkedIn, McKesson, News Corp., Nuance Communications, Symantec, Twitter, Buffalo Wild Wings, Lionsgate,Pandora, Tempur Sealy, Yelp
5:00 a.m.: Fed's Rosengren speaks
7:30 a.m.: Challenger Job-Cut report
8:30 a.m.: International trade
8:30 a.m.: Jobless claims
8:30 a.m.: Productivity & costs
10:30 a.m.: Natural gas inventories
3:00 p.m.: Treasury STRIPS
4:30 p.m.: Fed balance sheet/Money supply
Friday
Earnings: Moody's
8:30 a.m.: Nonfarm payrolls
12:45 p.m.: Fed's Lockhart speaks
3:00 p.m.: Consumer Credit
More From CNBC.com:
Strong dollar to spark M&A boom: StrategistGreece, Ukraine and Russia: History lessons
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008cb364473eb688ab8d71ea6ddbfde7 | https://www.cnbc.com/2015/02/04/who-qualifies-as-an-accredited-investor.html | Who qualifies as an accredited investor? | Who qualifies as an accredited investor?
The Securities and Exchange Commission allows certain securities offered by companies and private funds to be exempt from registration as long as they are only offered to, or purchased by, accredited investors. These securities can include hedge funds, venture capital funds, and companies raising capital in the burgeoning sector of equity crowdfunding.
But what, or who, is an accredited investor?
The Securities and Exchange Commission in Washington.Jim Bourg | Reuters
Simply put, an accredited investor is someone who the SEC deems capable of taking on the economic risk of investing in unregistered securities. Entities may also be deemed accredited investors, including banks, partnerships, corporations, nonprofits and trusts.
The accredited-investor guidelines are intended to identify, in a value-neutral way, who is a "sophisticated" investor with sufficient knowledge and experience in financial and business matters to evaluate the merits and risks of the prospective investment.
The SEC specifically defines an accredited investor based on income and net-worth tests.
To be an accredited investor, an individual must have had earned income that exceeded $200,000 (or $300,000 together with a spouse) in each of the prior two years and "reasonably expects the same for the current year," according to the SEC.
Or, the individual must have a net worth of more than $1 million, either alone or together with a spouse. With the passage of the Dodd-Frank Act, this now excludes a primary residence as being eligible as part of an investor's net worth (investors who had existing accredited investments but who now fail the net-worth test without their residence being valued were grandfathered).
The income test cannot be met using one year of an individual's income and the next two years based on joint income with a spouse. The only exception is if a person is married within this period.
The SEC offers an explanatory table to help investors determine if they meet the accredited-investor guidelines.
More changes to the accredited-investor standards may be forthcoming. The SEC has been debating tougher standards for accredited investors as part of the mandate in the Dodd-Frank Act to review the existing accredited investor rule. There has also been debate about whether the SEC should consider non-financial standards for accredited investors, such as education or professional background.
The Jumpstart Our Business Startups (JOBS) Act has also played a major role in changing the landscape for private investments and investor access to these offerings.
In late 2013 the SEC removed a ban on advertising by private placements offered to accredited investors, including the Internet, social media, seminars, print, or radio or television broadcast, under Rule 506(c).
Currently under review—and already delayed by the SEC from the original implementation plan—is a rule that would allow non-accredited investors (i.e., anyone) to invest in crowdfunded offerings, per the JOBS Act Title III, which covers equity crowdfunding, and the SEC's proposed Regulation Crowdfunding. Some U.S. states have enacted their own equity crowdfunding statutes as a way to circumvent the ongoing SEC review period.
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7f35ec722787bd1a06af12b9edf615a2 | https://www.cnbc.com/2015/02/05/fortunes-can-be-made-believing-in-this-stock.html | VIDEO7:2907:29Cramer: Short UA at your own peril Mad Money with Jim Cramer
Jim Cramer is seeing visionary stocks floating around out there that could represent tremendous investment opportunity. Those are the stocks that investors have to take a chance on, and either believes in the company's vision or not—stocks like Under Armour.
"Those who believe can make fortunes if they get it right. Nonbelievers make nothing. And those who bet against the believers? Well, they can lose their shirts," said the "Mad Money" host.
This is what Cramer wants investors to think about when they invest in a visionary leader like Kevin Plank, the CEO and founder of Under Armour.
Seriously, how the heck does this company even exist—do people really need better t-shirts?
CNBC
Well, yes they do. The company took the t-shirt concept to the next level when it found a way to create shirts that keep you warm in the winter and cold in the summer. How is that even possible?
Under Armour has been playing in Nike's wheelhouse lately, too. It will be releasing its new Stephen Curry basketball shoe next week and now has a 30 percent stake in the cleat market. Watch out, Nike!
Plank has proved every doubter wrong as the stock rose with each of the 19 consecutive quarters of turning out at least 20 percent growth. Not to mention the stock has gone to $73 from $4 in just the past 10 years. Yet, the haters of Under Armour still persist.
"Their faith is unshaken that Plank will fall. I am here to say that they have been, are and will remain fools. They do not understand the competitive spirit of this man," Cramer said.
The limits to Under Armour don't stop at a t-shirt or a shoe. Plank has created a network of connected people who want to stay healthy. He has also made strategic acquisitions to strengthen the bottom line, such as the purchase of My Fitness Pal for $475 million, and Endomondo for $85 million.
Cramer heard the cries of the vultures looking for a kill on the company conference call. Haters questioned how these new investments would pay off, to which Plank replied "the reason that we did what we did today was because we believe ultimately this will help us sell more shirts and shoes and reach more athletes and make them better."
---------------------------------------------------------- Read more from Mad Money with Jim Cramer Cramer Remix: Say hello to my little friend Iger is no Lyin' King: How he did it Cramer: How to make money in a violent market ----------------------------------------------------------
"I'm warning you that you short Under Armour at your own peril. Go ahead, make Kevin Plank's day," said Cramer.
Cramer is buying into this visionary. And if you're an investor who isn't a believer, at least stand on the sidelines and let the rest of the Cramericans gobble it up.
Questions for Cramer? Call Cramer: 1-800-743-CNBC
Want to take a deep dive into Cramer's world? Hit him up! Mad Money Twitter - Jim Cramer Twitter - Facebook - Instagram - Vine
Questions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com
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3e1f5b2f4fc07fc0d16b1dab2ef9b7b4 | https://www.cnbc.com/2015/02/05/its-not-too-late-to-save-for-retirement.html | It's not too late to save for retirement | It's not too late to save for retirement
VIDEO1:1901:19Federal budget could hurt retirement savings Closing Bell
When it comes to retirement, odds are, you're not ready.
Worse, you probably don't know if you'll ever be ready.
Nearly half of all Americans (46 percent) say they're concerned that they'll run out of money in retirement, according to a new survey by TIAA-CREF.
And with good reason. Last year, more than half of U.S. workers had less than $10,000 saved for retirement, according to a study by the Employee Benefit Research Institute. And another 17 percent of us had only stashed away $10,000 to $50,000—hardly what it will take to finance one's golden years in style.
But one way or another, your retirement is coming, so wherever your nest egg stands now, it's time to start catching up.
The good news is, you probably can. According to a different EBRI study, almost 6 out of 10 baby boomers and Gen Xers will make it to the finish line without running out of cash. And it's not too late to move you into that happy demographic.
You've likely heard this piece of advice many times before, but it bears repeating because too few Americans are following it: Squeeze all the juice you can out of tax-advantaged retirement accounts such as 401(k)s and IRAs.
Read MoreGot a 401(k) or IRA? This could affect you
If you aren't already contributing enough to your 401(k) to get the full employer match, you're throwing away free money—period. However, given the levels at which employer matches typically are capped, advisors recommend you not stop there. The maximum contribution allowed this year is $18,000, plus $6,000 more if you're 50 or older.
That may seem like an unreachable goal for most people. According to a 2014 report from Fidelity, the average annual contribution in 2013 was only $8,327. And the median 401(k) balance at the end of 2013 was a paltry $31,396.
But it's a new year. If you got a raise, consider routing most or all of it straight to your retirement accounts. It's money you haven't had before, so you probably won't miss it much. Do that every year for a few years, and you'll be well on the way to that contribution cap. And if you haven't already, set your contributions to be auto-deducted from your paycheck. That removes any temptation to divert it to other expenses.
The 401(k) isn't the only tax-advantaged option, of course. If you don't have access to one, or if you've maxed out your contributions, add IRAs to your "to fund" list. People under 50 can contribute up to $5,500 a year to their IRAs—Roth, traditional, or both.
Whether you choose the Roth, which allows you to withdraw the money tax free in retirement, or a traditional IRA, for which contributions are usually tax deductible, should depend on your personal tax situation. But if you have the cash, investing in one or the other is usually an excellent idea.
Read More Are you leaving money on the table at work?
U.S. tax laws include a couple of rules designed to help procrastinators prepare for retirement. First, you have until April 15, 2015, to add money to your IRA for 2014. (Annual bonus just got paid out? Pick up a fast tax break and plan for the future; it's a win-win.) Next, if you're 50 or older, you can catch up on saving with an additional $1,000 in contributions every year.
And don't forget that if you're 50 or older, you can also contribute up to $6,000 a year extra to your 401(k), thanks to a rule change initiated by Congress back in 2001 due to concerns that the boomer generation hadn't been saving enough for retirement. (See, you're really not alone in this.)
You may not have saved enough on your own behalf yet. But Uncle Sam has been planning for your retirement safety net since the day you got your first job.
Read More How investment advisors can stand out from the crowd
"Think of your retirement as three different pillars," suggested Christopher John Hickey, a chartered retirement planning counselor at Merrill Lynch. "One of those pillars is Social Security." It's crucial, he says, that you go to the Social Security site and get an update on what your benefits are projected to be at various retirement ages since the agency no longer simply mails that information out to everyone.
"A lot of husbands and wives, if they've been worrying about all their other bills, and not worrying about retirement savings, they forget how much the two of them are going to get in Social Security," he said. It may be more than you expect.
If you're behind on the planning curve, though, consider retiring later, taking the spousal benefit route, or filing and then suspending your benefits, all of which will boost the size of those monthly checks.
And if you're worried, as some are, that "Social Security is going bankrupt," and it won't exist when you retire, take heart. Even if Congress does nothing to fix the program's cash flow problem, and the Social Security Trust Fund is depleted to zero at some point in the next couple of decades, the income from Social Security taxes will still be able to fund benefits at around three-quarters of current levels.
Homeownership is still the American dream, and our desire for more and more square footage is undeniable: The average size of houses in this country has been increasing steadily for decades. But a big home can be an expensive way to feed your ego. Certified Financial Planner Sophia Bera, principal at Gen Y Planning, says her favorite piece of advice for those looking to catch up is to take a hard look at how they can cut their housing expenses.
"People who are behind on retirement savings should consider downsizing, selling their home and renting, or paying off their mortgage so that they can drastically reduce their cost of living," Bera said. "Another option would be selling their single-family home and investing in an owner-occupied rental property instead. If they own a duplex and the rent from the other unit can cover their mortgage, then they've also significantly reduced their housing costs to prepare for retirement. Plus, once the mortgage is paid off, the rent from the other unit is all profit."
Chad Smith, a CFP with Financial Symmetry in Raleigh, North Carolina, agrees with that sentiment, but suggests some less conventional ways to recoup some of your costs, such as renting out a room through sites like Airbnb or Craigslist. "A recent client I worked with who was behind the eight ball on retirement savings, had been divorced and was still living in a bigger house than she needed," Smith said. "She decided to rent out an extra room in her house to contract workers traveling to corporations in our area like IBM for short-term periods—six months to a year. This helped her bring in more income that she could direct to her savings."
Needless to say, your house isn't the only item you own that has financial potential hidden within it. Thanks to eBay and its countless cousins, you can resell just about anything you no longer need, from the jewelry you haven't worn in years to the dusty items cluttering up your garage or basement. Each individual sale may not bring in much on its own, but over time, this strategy can add a lot of extra cash to your cushion.
Smith also addresses the financial elephant in the room—where the money you could have been saving in the past went. "Another characteristic of most people in this boat is they've overspent for a period in the past," he said. "The big key here is to work on changing behavior slowly by working opportunity-cost into big decision-making." In other words, when it comes to whipping out your wallet, consider all the things your loose spending habits could prevent you from doing.
She also recommends looking at your household budget for recurring expenses you can trim. "The focus should be on big spending areas that will free up the most extra savings."
Read MoreA 5-minute fix that can help you save more
Here's an important point that many people often forget: Your retirement target figure isn't actually a specific amount of money. That goal number you think you're aiming for is just one in a complex equation. And on the other side of that equation are your total retirement expenses, which depend heavily on your health, longevity and the lifestyle you choose. If you spend less as a retiree (obviously), you need less.
Given that, it's worth considering an option that would reduce your expenses in retirement without changing your retirement lifestyle: Long-term care insurance.
According to the most recent available statistics from the Department of Health and Human Services, an American who lives to age 65 today will, on average, live to 84. And an estimated 70 percent of baby boomers are expected to use some form of long-term care during their lives, according to the Kaiser Family Foundation—likely for several years, and at prices that can drain even the most well-feathered nest egg. And there are large portions of those bills that Medicare won't cover.
Hence, the recommendation that you price out long-term care coverage. It isn't the right choice for everyone, but if you have enough assets to protect, and can afford the premiums, it can mean the difference between outliving your money and having your money outlive you.
Three caveats: First, until recently, long-term care insurance was a better deal than it is now. So good, in fact, that insurers started losing money on the policies as care costs soared and it became clear that they'd underpriced them. For the most part, in the past couple of years, those insurers that didn't get out of the business have adjusted premiums upward to compensate.
Second, while Medicare does not cover long-term care, Medicaid does in many instances. But to qualify for the Medicaid program, you have to deplete your nest egg down to nearly zero, which is not the goal here.
Third, like any other form of insurance, this one is a gamble: You're betting that you'll live long enough to need the expensive care that it covers. The actuaries are hoping that you and most of your fellow customers will live in good health right up until your last days. If they have it their way, you'll pay premiums for years, and get little value for the money.
But here's why these policies make the "recommended" list regardless. The goal of this whole exercise is to make sure that you don't outlast your stash. The longer you live, the more likely you are to get your money's worth out of a long-term care policy, which will preserve your other assets. On the other hand—morbid as it may be to contemplate—if you don't live quite that long, you're also less likely to outlive your nest egg.
Read MoreThe pros and cons of long-term care coverage
In a similar vein, John Jamieson, owner of financial advisory firm Perpetual Wealth Systems and author of "The Perpetual Wealth System," espouses another technique to avoid running out of cash before you run out of time: fixed indexed deferred annuities.
"A successful retirement is about guaranteed income that you can't outlive," said Jamieson.
His advice: "Roll over a portion of your IRA into a solid deferred fixed indexed annuity and fund this annuity with as much as possible in upcoming years."
There are a few benefits, he says. First, this protects your capital from any market downturns; second, with a lifetime income rider, you have an investment that guarantees lifelong income for you and your spouse; third, it gives your retirement nest egg the chance to have strong growth with no market losses along the way.
Earnings on a deferred annuity account are also taxed only upon withdrawal, so there's a tax benefit. And they typically include a death benefit, so that the beneficiary of the annuity is guaranteed the principal and the investment earnings.
Read MoreLongevity annuities can provide income later in life
The caveat here is, of course, that guaranteed safety like that comes at the expense of higher growth rates. A fixed indexed annuity can have caps on its returns, so the index it's linked to may have a banner year, and your investment will only return you part of those gains.
Hickey of Merrill Lynch also recommends annuities as a complement to other investments, but he prefers a standard variable annuity—especially if you find yourself in possession of a large sum to invest all at once. Even so, it's a recommendation he couples with a warning: "With an annuity, you've got to be careful what you're buying ... it's a way for you to put a lump sum in for tax-deferred growth, but examining the fees, the expenses, caps and holding periods is crucial."
If you're really behind the curve on getting started, for whatever reason, you may find the investment vehicles designed to encourage retirement savings—like 401(k)s, 403(b)s and IRAs—are too limiting. You're at the peak of your earning power, but the contribution limits are holding you back.
Hickey mentions the strategy of a client of his who, he says, didn't really get serious about building his nest egg until he was 47 because before that, he'd been more focused on paying for his three kids' education. "He said to me, 'I'm putting $5,000 a month into an S&P 500 index fund—that's what we're going to use for retirement.'"
That's actually a smart move, says Hickey: Buying basic, low-fee index funds steadily to take advantage of dollar-cost averaging generally produces strong returns over time. And considering that even the investing gurus can't consistently "beat the market," novices are well advised to stick with investments that will match the market.
Finally, he offers one last piece of crucial advice: Don't panic.
"Just because you're behind on retirement planning, it doesn't mean that you have to turn up the risk," to the point where you're not comfortable, says Hickey. High-risk and potentially high-yield investments have their merits—but only if you have the thick skin to cope with volatility, and can avoid the emotional behaviors that lead so many retail investors to sell them at the wrong time.
On the highway of investing, even if you're late, if you're not comfortable going 70 mph, then just drive 55. You may get to your goal a bit later, but you'll get there.
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75df861671088bd23e096e5a3a0106d8 | https://www.cnbc.com/2015/02/05/markets-hit-as-ecb-plays-hardball-with-greece.html | Markets hit as ECB plays hardball with Greece | Markets hit as ECB plays hardball with Greece
VIDEO3:2403:24Europe opens lower as Greek rollercoaster talks continueSquawk Box Europe
The European Central Bank (ECB) has thrown a spanner in the works of Greece's debt negotiations this week, by restricting the financing available to the country's banks.
The announcement, made late Wednesday, has sent a shockwave through the world's markets and has left many analysts believing that the euro zone's central bank is playing hardball at a crucial time for not just Greece, but for the euro zone as a whole.
In Europe on Thursday, banking stocks across the region were down 1.3 percent in the morning session, weighing heavily on wider benchmarks. The sector recovered some ground to close down 0.5 percent on the day.
Greek stocks were down around 5 percent in afternoon trading, before closing over 3 percent lower. Greece's Bank of Piraeus lost 27 percent at the open, the National Bank of Greece was down 26 percent and Alpha Bank lost 13 percent
The rout in Europe's markets comes after U.S. stocks closed mostly lower Wednesday on the news, and dented global sentiment.
Read MoreECB:Banks can't use Greek debt as collateral
The euro also fell from around 1.141 against the U.S. dollar to close to 1.132 overnight, while the yield of Greece's 10-year sovereign bond rose above 11 percent again on Thursday morning.
CNBC takes a look at why the ECB acted as it did and what it means for Greece and Europe.
Late Wednesday, the ECB revoked a waiver that allowed Greek banks to use the country's sovereign bonds as collateral for loans.
You could say that the ECB is technically just doing its job. The central bank can only accept investment-grade paper as collateral - which Greek sovereign debt isn't. But the timing of the announcement has surprised many market-watchers: The ECB is supposed to be politically neutral.
Greek banks can now only tap the liquidity funds provided by the Greek central bank which charges higher interest rates for the privilege. However, many analysts have noted that this was due to happen in March, regardless.
Nonetheless, the announcement is likely to severely restrict the refinancing options open to Greece's lenders and piles the pressure on the new Greek government and euro zone policymakers to reach a deal -- and quickly
"The steps announced (Wednesday) and the general tenor of the discussions has rightfully renewed concerns of a 'Grexit'," Dan Greenhaus, the chief strategist at BTIG, said in a note on Wednesday evening.
VIDEO3:0903:09Greek debt saga not affecting confidence: CEOEarnings
Influential figures within Greece's new government have been on a whistle-stop tour of Europe this week as the new left-leaning Syriza Party aims to overhaul the nation's bailout program with European Institutions and alleviate its debt burden.
On Wednesday, Mario Draghi, the president of the ECB, met with Greek Finance Minister Yanis Varoufakis. On Thursday, Varoufakis will meet with Wolfgang Schäuble, his German counterpart, with the latter likely to urge Varoufakis to stick to current austerity plans, despite his pre-election promises.
Investors are concerned that if it cannot find an agreement, Greece will be forced into a default on its debt -- a move that will force the country out of the 19-country euro zone, further destabilizing the region's already-shaky economy.
The situation is made even more difficult by reports from Bloomberg on Wednesday, citing two people familiar with the country's financial position, that said Greece could run out of cash in March without help from the ECB.
The ECB has said that the decision was "in line with existing euro system rules," but Simon Derrick, chief currency strategist at BNY Mellon, believes that its hard to ignore the timing of the move.
"This seemed designed to send a very clear signal to the Greek government rather than anything else.The message itself is simple enough: there is little room for compromise in the upcoming negotiations," he said in a morning note.
VIDEO2:0202:02ECB 'did what it had to' on Greek debt: PimcoEuropean Central Bank
The pressure on the new Greek government to stick with the current bailout program has clearly increased with the ECB announcement, according to Carsten Brzeski, senior economist at ING.
"Whether the Greek government will be impressed, remains to be seen," he said in a note Thursday morning. "The heat is on."
Meanwhile, Varoufakis himself, gave his response overnight ahead of his trip to Berlin.
He said in statement that that the Greek government remains "unwavering" in its goals and said the decision puts pressure on the Eurogroup to proceed rapidly to conclude a "new mutually beneficial" agreement between Greece and its partners.
- By CNBC's Matt Clinch
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f0a5a2bbad45a820abe919b8ab362016 | https://www.cnbc.com/2015/02/05/michael-kors-to-join-wearable-tech-movement.html | Michael Kors to join wearable tech movement | Michael Kors to join wearable tech movement
VIDEO4:1704:17How to trade the retail earningsHalftime Report
Fashion-savvy fans of wearable tech will need to keep their eyes peeled over the next few months.
On Michael Kors' call Thursday, CEO John Idol told analysts and investors that the affordable luxury brand "will be in wearables," and expects to deliver announcements on that front in coming months.
"That is coming from Michael Kors," Idol said, adding that the brand is not interested in being first to the market. Instead, he wants to take the time to develop a product that's viable for shoppers' everyday lives.
Read MoreThe biggest threat to luxury brands' rapid growth
"We think luxury is not just about products, it's about a lifestyle," Idol said.
The company declined to offer further details on what types of wearable tech it will offer.
In September, Fossil—which holds the license for Michael Kors watches—linked up with Intel to collaborate on wearable technology for the fashion industry. Idol said on the call that Kors is working with Fossil on that tie-up.
Read MoreSmartwatch or fitness tracker? Why age, sex matter
Designers such as Rebecca Minkoff and Tory Burch have already entered the wearable tech space.
For its part, Kors continues to focus on watches and jewelry as a pillar of growth moving forward. Idol said the company sees opportunity for 500 watch and jewelry shop-in-shops worldwide, more than double its current footprint of 230.
Kors on Thursday announced earnings per share of $1.48, easily beating consensus estimates. Its $1.3 billion in sales also topped estimates, though its domestic same-store sales growth slowed to 6.8 percent on a constant currency basis.
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ab340fda4a49a120758e91beb24b857d | https://www.cnbc.com/2015/02/05/obama-cyber-czar-anthem-hack-quite-concerning.html | Obama cyber czar: Anthem hack 'quite concerning' | Obama cyber czar: Anthem hack 'quite concerning'
kropic | Getty Images | Getty Images
President Barack Obama's cybersecurity adviser said on Thursday that he was concerned about a data breach at health insurer Anthem that has affected up to 80 million people.
"Obviously it's quite concerning that we would have yet another intrusion of this size," Michael Daniel said at a seminar organized by Bloomberg Government.
Read More80million records at risk in insurer hack attack
"It's particularly disturbing especially when it hits that many people," Daniel said, advising affected consumers to change their passwords and monitor their credit scores.
Daniel declined to comment further on the breach, which is under investigation by the FBI.
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aa2519ab93d61ef1105515015f482ef9 | https://www.cnbc.com/2015/02/05/oil-heading-for-30-currency-war-coming-analysts.html | Oil heading for $30, currency war coming: Analysts | Oil heading for $30, currency war coming: Analysts
VIDEO2:2402:24Crude's squeeze and currency wars in focusSquawk Box
So much for the rally. Oil will likely still head as low as $30, analyst John Kilduff told CNBC on Thursday.
"I still believe we're going to go to that $30 to $33 area, which is the low point from the financial crisis in 2008, 2009. What you saw over the past several days was technical in nature, a short squeeze. This volatility is a little crazy and I think that $30 target is a downside target is for technicians that are in this market," the founding partner of Again Capital said in a "Squawk Box" interview.
Read More Oil whipsawed on supply glut
U.S. crude tumbled 9 percent on Wednesday to settle at $48.45, erasing nearly all of its gains in the previous two sessions. The benchmark commodity—West Texas Intermediate—had soared 22 percent from a nearly six-year low of $43.58 last Thursday, ending the day at $53.05 on Tuesday.
The rally's sharp reversal spilled over into the stock market, with energy stocks leading the day's decline in the S&P 500.
Data on Friday that showed exploration and production companies had shut down 90 rigs in the prior week boosted the rally. Kilduff said that the industry had merely gotten rid of "the runts of the litter," noting that U.S. production had not fallen and still stands at 9.1 million barrels a day.
He said speculation that Saudi Arabia, the world's largest oil exporter, would agree to production cuts in order to reach a deal with Russia on the Syrian conflict also sent oil higher.
Read MoreOil pro: This is 'dead cat bounce'
Saudi Arabia's refusal to support cuts at a meeting of the Organization of the Petroleum Exporting Countries in November accelerated the rout. Meanwhile, Russia is facing the twin headwinds of falling oil prices and economic sanctions over its role in the conflict in neighboring Ukraine.
"People want to write off OPEC. You can't do that. They do still matter to a degree. A coordinated cut of some magnitude would stop the price slide," Kilduff said.
Fluctuations in currency markets and central bank action has also fed volatility in the oil markets. A strong U.S. dollar drives down oil prices because the commodity is bought and sold in the currency.
"At this point, FX volatility has become the prime driver in global volatility. You cannot make any investment decisions without actually understanding which way the dollar is basically heading," said David Woo, Bank of America Merrill Lynch's head of global rates and currencies research.
Forex volatility is at its highest level in 20 years for noncrisis periods, research from Bank of America released this week showed.
Read More 'Currency war' to be 'lose-lose' game: Strategist
That volatility could continue as countries around the world engage in a currency war, he said. With nations facing fiscal constraints, the only tool available to central banks to stimulate growth is a weaker currency, he said.
"If everyone's playing this game you have no choice but to play it because otherwise you get left behind. We call it war because it's a zero sum game. Somebody wins, and somebody else loses," Woo said.
There's little the United States can do to stop the dollar from strengthening because the European Central Bank and the Bank of Japan are intent on spurring growth through monetary policy.
But the most important question for oil—and the biggest risk of 2015—is the prospect that China follows suit and moves to depreciate its currency.
Read More China RRR cut: there's more where that came from
"If China decides to play the same game, it will be a disaster because commodity prices are going to crash because China consumes 40 percent of the world's basic commodities," Woo said. "And then you're going to trigger a competitive devaluation around the world. The 10-year yield is going to go to 1.25 percent if China wants to devalue [its currency] 10 percent."
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f1b9ed07d513cd2b22b1903836f67722 | https://www.cnbc.com/2015/02/05/radioshack-files-for-chapter-11-bankruptcy.html | RadioShack files Ch.11, plans Sprint partnership | RadioShack files Ch.11, plans Sprint partnership
VIDEO1:3601:36Standard General to buy up to 2,400 RadioShack storesFast Money
RadioShack filed its long-awaited bankruptcy papers Thursday evening. The troubled tech retailer aims to reorganize under Chapter 11.
Part of its plan calls for an asset purchase agreement with hedge fund Standard General and Sprint to use a "store-in-store" model that would allow the RadioShack name to exist in as many as 1,750 of the acquired shops. Other underperforming locations would shutter.
The branding on the surviving stores would primarily feature Sprint, according to a Standard General statement.
Read MoreOp-Ed: Why RadioShack's demise is a good thing
The retailer reported assets of $1.2 billion and debts of $1.39 billion, as of Nov. 1, according to the filing.
Sprint PCS is listed as one of RadioShack's biggest creditors, with a claim of $6 million in trade debt.
for the latest on the markets.
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433102c89345ed35f4a3e9dc85a81aa5 | https://www.cnbc.com/2015/02/06/ecuador-becomes-the-first-country-to-roll-out-its-own-digital-durrency.html | Ecuador becomes the first country to roll out its own digital cash | Ecuador becomes the first country to roll out its own digital cash
In 2000, Ecuador moved to ditch its stumbling currency for the U.S. dollar. Now more than 15 years later, the South American country is revamping its monetary system again—using digital currencies.
A man buys U.S. dollars from a street money changer at the rate of 25,000 sucres to the dollar in Quito, Ecuador, Jan. 11,2000, after the directors of Ecuador's Central Bank approved a plan to dollarize the economy.Martin Bernetti | AFP | Getty Images
Ecuador's Sistema de Dinero Electrónico (electronic money system) kicked off in December by allowing qualifying users to set up accounts, and it will begin acting as a real means of transaction this month.
Once the government flips the switch, the South American nation of 16 million will host the first-ever state-run electronic payment system. (Other countries, such as Sweden, use digital currencies widely, but they're not state-sponsored.) But the Ecuadorean government says the scheme is designed to support its dollar-based monetary system, not replace it.
Read MoreThe world's best place to retire—Ecuador???
"Electronic money is designed to operate and support the monetary scheme of dollarization," economist Diego Martinez, a delegate of the President of the Republic to the Board of Regulation and Monetary and Financial Policy, wrote to CNBC in a comment provided by a central bank spokesman.
Martinez said that Ecuador law expressly states that economic transactions are conducted in U.S. dollars.
Electronic money will not only help the poor, he added, but will act as a cost-saving mechanism for the government: Ecuador spends more than $3 million every year to exchange deteriorating old notes for new dollars, Martinez said. There would presumably be less wear and tear on the currency if much of it was stored at the central bank while citizens relied on mobile payments.
They keep linking it to their frustration to being on the dollar standard.Lawrence Whiteprofessor of economics, George Mason University
Still, others both inside and outside Ecuador have speculated that the country has broader goals. Claiming that there's no plausible reason for Ecuador to provide "an exclusive medium for mobile payments," Lawrence White, a professor of economics at George Mason University, wrote in a recent paper that "it is hard to make any sense of the project other than as fiscal maneuver that paves the way toward official de-dollarization."
White told CNBC that the government's bitcoin ban in July and its barring of competing e-money systems demonstrate Quito's intentions. Although Ecuadorean officials haven't publicly said they view electronic money as a potential exit from the U.S. currency, "they keep linking it to their frustration to being on the dollar standard," White said.
Read MoreChina's new playground: America's backyard
A digital currency would, in theory, allow Ecuador's central bank to issue new money that isn't directly tied to its U.S. dollar reserves. But Ecuadorean officials have repeatedly denied that there are any such plans.
In a letter posted in Spanish on the Banco Central del Ecuador website in August, officials said the proposed payment system is not intended to address the country's bills, that it will not be used to pay government workers and contractors, and that it will not lead to capital flight.
VIDEO2:3502:35How to invest in Latin AmericaWorldwide Exchange
The dollar system has been good for the country's relatively low inflation and low interest rates, White said, adding that it would be difficult to start a new currency without ruining the economy. Ecuador's most recently reported monthly inflation rate of 3.67 percent is lower than neighbors including Mexico, Chile, Costa Rica and Bolivia.
At the very least, White said, the government is looking to turn a profit from holding a monopoly on all electronic payments—and if they really wanted to benefit the poor, Quito officials would allow for competing private-sector systems to drive down costs.
Read MoreBeijing still lending to Venezuela—for now
The Central Bank of Ecuador announced earlier this week that it had signed a deal with a 60,000-member taxi organization to accept the electronic money. The project's second phase—in which users will be able to pay for select services and send money between individuals—will begin in mid-February.
Jorge Calderón, the taxi organization's president, praised the electronic money system as potentially improving service, since it will not require drivers to stash as much coinage.
I think quite rapidly people will be using it all over the place...The plan is quite aggressive—they really want the whole population to use it as soon as possible.Paul Buitinkinstructor, Universidad San Francisco de Quito
A third phase of the electronic money system will begin in the latter half of this year, according to government announcements, and will allow users to pay for public services like taxes through mobile payment.
Fausto Valencia, who is overseeing the project for the central bank, said the government expects about 500,000 people to sign up in 2015, according to several Ecuadorean reports.
Read MoreThe new Chavez? Oil trumps rain forest in Ecuador
"I think quite rapidly people will be using it all over the place," said Paul Buitink, a cryptocurrency expert who teaches at Universidad San Francisco de Quito. "The plan is quite aggressive—they really want the whole population to use it as soon as possible."
Buitink said the project has been relatively well received by the Ecuadorean public. There are some concerns about privacy, he said, but it has generally been seen as a positive step.
Despite several headlines to the contrary, Ecuador's electronic money system is dissimilar from bitcoin. While the world's most popular cryptocurrency is a digital token running on a decentralized (yet cryptographically secured) electronic network, Ecuador's new project would be controlled by the government and tied directly to the local currency—the dollar.
The project initially created buzz in in the bitcoin blogosphere, but that interest faltered once it was clear that Ecuador's project would not present a competing alternative. Not only is the technology importantly different, but Ecuador's electronic money system currently can be accessed only by qualifying citizens and residents.
Read MoreCNBC Explains: How bitcoin works
In fact, Ecuador's project is more similar to M-Pesa, a mobile phone-based money transfer service started by Vodafone, according to Pete Rizzo, the U.S. editor for cryptocurrency site CoinDesk.
In many ways, the new system will be a government-run version of Venmo—users will be able to make payments with the aid of a cellphone and store value in their accounts. But unlike the popular smartphone application, the Ecuadorean version will be able to run on "dumb" mobile devices too.
The electronic money system does not require Internet access or an account with a financial institution, and it can be redeemed for physical money at any time, the central bank's website said.
Correction: This version corrected the spelling of Fausto Valencia's name.
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b84e937a9c1293b75372ed9f7bc6e030 | https://www.cnbc.com/2015/02/06/us-created-257000-jobs-in-jan-vs.-234000-est-unemployment-rate-at-5.7pct-vs.-5.6pct-est.html | US created 257,000 jobs in Jan vs. 234,000 est; unemployment rate at 5.7% vs. 5.6% est | US created 257,000 jobs in Jan vs. 234,000 est; unemployment rate at 5.7% vs. 5.6% est
VIDEO1:2001:20Cashin: Positive jobs report 'counterintuitive'
VIDEO1:4201:42Santelli: Global markets react to US jobs
VIDEO2:0202:02January nonfarm payrolls up 257,000Squawk Box
The unemployment rate edged higher but the U.S. economy added a better-than-expected 257,000 jobs in January, according to the latest data from the Bureau of Labor Statistics.
The number of new jobs created in January was expected to total 234,000, while the unemployment rate was seen coming in at 5.6 percent.
Full-time workers surged, gaining 777,000 and numbering more than 120 million for the first time since July 2008. Their wages grew as well, with hourly earnings up 12 cents an hour, representing an annualized gain of 2.2 percent and the largest monthly gain in the economic recovery.
It was only the second time in the last 11 years that January's numbers beat Wall Street expectations and came amid a powerful run for nonfarm payrolls. Over the past three months, job creation has averaged 336,000, with upward revisions for both November and December, good for a total of just over one million during the span.
"It's a great report. The labor force finally goes up, we got a little wage growth, a lot of upward revisions," said Ed Keon, portfolio manager for Quantitative Management Associates. "We're finally getting enough internal momentum that we can stay at that roughly 3 percent (gross domestic product) growth rate, maybe even a little higher as we go through the year."
Randall Hill | Reuters
A broader measure of unemployment that includes workers who have stopped looking for jobs as well as the underemployed moved higher as well, from 11.2 percent in December to 11.3 percent in January. Those working part-time for economic reasons increased 20,000 during the month; part-time workers overall increased 40,000.
The gain in the rates likely was owing to a rise in the labor force participation rate, which had been mired at 36-year lows but improved from 62.7 percent to 62.9 percent.
December's lower-than-expected 252,000 got pushed up to 329,000, while November's surged from 353,000 to 423,000.
Gains came across the board, with retail leading the way in January with 46,000 new positions. Construction added 39,000, while health care grew 38,000.
The report could help ease some anxiety about the pace of growth, particularly in the wake of some mediocre economic reports to start the year.
"There are many concerns about global growth, concerns that have been exacerbated by the number of central banks cutting interest rates in January," said Dan Greenhaus, chief strategist at BTIG. "However, today's report is yet another which suggests the U.S. is weathering the storm and finds itself in very, very good shape."
Stock futures moved higher following the report, as did government bond yields.
Investor attention now is likely to turn toward the Federal Reserve, which has maintained a zero-interest-rate policy despite the labor market improvements.
"The strength of employment growth suggests the Fed should drop its 'patience' language in March and start raising its policy rate by mid-year," said Paul Ashworth, chief U.S. economist at Capital Economics.
Get the market reaction here.
Read MoreHere's how we fix the youth unemployment problem
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543546d2f60720d4dc900491c3b209b6 | https://www.cnbc.com/2015/02/06/will-twitter-allow-users-to-pay-to-get-verified.html | Will Twitter allow users to pay to get verified? | Will Twitter allow users to pay to get verified?
VIDEO2:3602:36Pro: These 2 things will take Twitter to next levelHalftime Report
Those following Twitter's activities are aware that the social networking site and its CEO, Dick Costolo, have been on a tear recently. The company made multiple product changes over the last month in an effort to bring in new users and enhance the experience for current ones.
But now, one angel investor told CNBC that, among other things, Twitter is planning to offer an option allowing users to pay a small fee to get verified.
Entrepreneur Jason Calacanis told CNBC's "Halftime Report" on Friday that the company will create a new revenue source called "Verified Twitter," he said, "where anyone would be able to verify their account for $1 a year or something like that."
Twitter declined to comment.
Why would the company want to cash in on the blue badges, which are currently given to key individuals and brands to help establish account authenticity?
Calacanis said that when people pay for verification, they'll be forced to input their credit card information, making it easier for Twitter to entice them into paying for other things, "like buying a subscription to The New York Times or buy a Netflix subscription."
Additionally, the angel investor says Twitter will charge verification-hungry brands "more like $100" in exchange for a verified badge and ad credits.
"Of course, nobody knows that," Calacanis said, "but I know it because I have a lot of inside information on the company." He declined to say the source of his information. (He also said he doesn't own shares in any publicly traded companies.)
Calacanis also said that Twitter is going to take its recently released group messaging feature and separate it out into a new app as well as add other apps to its mobile portfolio.
Read More Twitter climbs 10% on earnings beat
"That's going to be huge," said Calacanis, predicting that it could increase Twitter's monthly active user count by a wild 50 million to 100 million per month. "That is why you you see Dick's a little bullish on this."
Still, these two moves won't even be the largest steps Twitter takes this year.
The social networking site will split revenue with users, similar to YouTube, where content creators get a piece of the revenue pie, he said. "You will have the same phenomenon on Twitter," Calacanis said, adding that it would "take a year or two to manifest, but people will be getting paid and making a living for simply tweeting in the world."
Read More Twitter, Google near deal on tweets
The tech blogger appears to have written up more about these big plans on his personal blog.
Shares of Twitter were up more than 16 percent in midday trading Friday.
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7bc23987b6018eb2d8a2351f3169b6d1 | https://www.cnbc.com/2015/02/09/forget-rally-oil-heading-lower-analyst.html | Forget rally, oil heading lower: Analyst | Forget rally, oil heading lower: Analyst
VIDEO3:5303:53Drilling rig count in focus
Oil prices have rebounded recently, but analyst Michael Cohen doesn't think the rally will last. He's predicting prices will likely head back down.
"The market has been very focused on the rig count," the head of energy research commodities for Barclays said in an interview with "Squawk on the Street."
"What we saw in the last couple weeks is rig count falling pretty precipitously by about 80 or 90 rigs per week, but we think there are more important things to be focused on and that rig count doesn't tell the whole story."
He expects to see some weakness going into the shoulder season for demand. In addition, there is an excess supply of about a million barrels of oil a day, he said.
"We have to incentivize further storage through the course of this first half of the year. In order to do that, we expect that the front-month contracts are likely to weaken."
A man at a gas station in Dellwood, Mo.Getty Images
Oil rose for a third straight session on Monday after OPEC projected less supply from countries outside the organization and forecast greater demand for crude this year. U.S. crude futures were up $1.53, almost 3 percent, at $53.22 per barrel late in the morning. rose 67 cents, or 1 percent, to $58.47, after revisiting Friday's one-week peak of $59.06.
Read More OPEC: 'Overflowing' supply weighing on oil prices
Last week, the market rallied on news that the U.S. oil rig count was at a three-year low. The count was down 87 rigs from the week prior, and down 315 from last year, according to the oil services Baker Hughes.
However, Cohen noted that just because the rig count is down doesn't necessarily mean that production is cut.
In fact, drilling productivity is expected to increase over the course of this year, he said. In addition, there is a lag between the time that you drill a well and the time that you connect it.
For example, rig counts dropped by over 600 in Texas in 2008-2009, but production only fell 50,000 barrels per day in the Lone Star State during that period.
"There's a wave of production growth that we still see producers enjoying from the time when prices were $100 a barrel."
Read MoreWhere are oil prices headed?
—Reuters contributed to this report.
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751cf3d8af39431577e4ba83d5207662 | https://www.cnbc.com/2015/02/09/frustration-will-drive-stocks-higher-tom-lee.html | ‘Frustration’ will drive stocks higher: Tom Lee | ‘Frustration’ will drive stocks higher: Tom Lee
VIDEO5:1405:14Why stocks are going up: Tom LeeOptions Action
FundStrat Global Advisors co-founder Tom Lee's stringently bullish view on stocks has proven prescient time and time again in recent years.
Now, he says the gains for the market are just getting started.
I'm "bullish, and I think it's an up year, in a horizon where I think we'll have several more years of gains," Lee said Friday on CNBC's "Options Action."
The strategist, who has a year-end target of 2,325, says the already-long length of the bull market has caused considerable investor angst. But that doesn't mean the run is done.
"This is a bull market that's been around for a long time, and I think it's frustrating people because it's been hard to beat and it's been volatile," Lee said, referring to the plight of active managers attempting to pick stocks that will beat the broad market.
"I think that type of frustration makes it easier for the market to surprise to the upside," he added.
In addition, the promise of more capital expenditure in the year ahead bolsters Lee's hope.
"CapEx is a story that eventually has to turn. Companies can't let assets deplete forever, and accumulated depreciation to gross plant is now over 50 percent in the S&P for the first time in history," he said.
Read MoreIt's over! Stocks and oil may finally break up
Tom LeeScott Mlyn | CNBC
Because he is so bullish, Lee recommends that investors shift from defensive sectors like utilities to more cyclical sectors like technology, as well as financial and energy names.
"I think the recovery might actually have some better foundations, and I think we're seeing it in the labor market. So you know—I have my fingers crossed."
Still, even if the market rally becomes a more traditional one with the cyclical sectors leading, that won't necessarily solve the problem of active managers, according to Sterne Agee chief market technician Carter Worth.
"The S&P has been very hard to beat lately—in fact, active managers had their worst year in some 25 years—as the average stock is not performing in line with the aggregate," Worth said. "I think that's going to be an issue again this year no matter what the S&P does. There's going to be a performance problem."
Follow the show on Twitter @OptionsAction.
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96cb250581c0c349f7fee7eee9905b2c | https://www.cnbc.com/2015/02/09/ice-bucket-challenge-6-months-later.html | Ice Bucket Challenge: 6 months later | Ice Bucket Challenge: 6 months later
VIDEO1:5601:56ALS ice bucket challenges: From Elon Musk to Dr. DreMedicine
Last summer, neurology professor John Landers was stuck. His grant proposal for funding to sequence the genomes of patients with amyotrophic lateral sclerosis, or Lou Gehrig's disease, as part of a worldwide project to better understand the illness, had been rejected. The ALS Association, a nonprofit that supports research, didn't have the funds.
Then about 3 million people dumped buckets of ice water over their heads—and everything changed.
"We had a grant in with them asking for about $1 million, and although they were very excited about the project, it was beyond what they were able to do," Landers said in an interview from his lab at University of Massachusetts Medical School. "However, luckily the Ice Bucket Challenge kicked in and as a result of that, they were able to fund this."
Read MoreWhen unapproved drugs are the only hope
The Ice Bucket Challenge—a viral sensation that involved daring friends to dump ice on themselves or donate money to ALS research—raised $115 million for the ALS Association last summer (many people both dumped and donated). That compares with its total annual budget, including regional chapters, of $60 million. It's also spurred international awareness about a crippling neurodegenerative disease with no good treatments, and which is often fatal within two to five years of diagnosis.
ALS afflicts about 30,000 people at any given time in the U.S., and about 5,600 people are diagnosed with it each year. But its causes aren't well understood, making research like Landers'—called Project MinE—crucial.
"To the extent that we can understand what's going on on the genetic side, those are things we can target through drug development," Landers said. "The best way to think about this is: You bring your car into the garage and it's just not working right; until you figure out what's going wrong with the car, you can't fix it."
CNBC's Scott Wapner, Becky Quick and Jim Cramer take the Ice Bucket Challenge in support of ALS research.Adam Jeffery | CNBC
The grant to Project MinE was one of four the ALS Association announced in October as part of the initial $22 million it allocated. The others are going to a partnership between academia and industry, called ALS Accelerated Therapeutics, to speed drug development; the New York Genome Center, to further explore the genetic basis of the disease; and three medical labs in California in a project called Neuro Collaborative, which also works on drug development.
The association aims to invest $21 million to $25 million a year in research projects, spokeswoman Carrie Munk said.
The funding has also enabled more support for patients and their caregivers. The Greater Philadelphia chapter, for example, used Ice Bucket Challenge funding to buy assistive technology devices to loan to people with ALS who can't afford them: power wheelchairs, or eye-gaze technology for communication, she said.
Read MoreEx-janitor leaves $8M surprise
"Another chapter was able to reinstate a respite care program, giving caregivers of people with ALS a break," Munk said by telephone. "Previous to the Ice Bucket Challenge, they had to cut the program; now they can provide it to people who need it."
The funds, Munk said, have energized the research community. The ALS Association has received triple the number of applications for grants for young scientists than in previous years.
"A lot of times that funding enables them to continue a lifetime career in the area of ALS," she said.
VIDEO1:2801:28'Ice bucket' payoff: $115 millionSquawk Box
Other nonprofits saw more funding as well, though the ALS Association took in the bulk of it. Project A.L.S., a group that aims to fund collaborative research on the disease, took in $750,000 from the Ice Bucket Challenge, almost 10 times more than in the same period the year before.
The organization has already allocated all of the funds to research, including projects focused on testing existing drugs for use in ALS. Others supported research aimed at better understanding whether lipid metabolism, central to rare maladies like Gaucher's disease and Fabry's disease, plays a role in ALS.
"We wouldn't have been able to do it without that money," Valerie Estess, director of research at Project A.L.S., said in a telephone interview.
There's a concern, though, that the challenge will have provided just a one-time boost in funding, and then could peter out.
Read MoreIce Bucket Challenge rewriting charity model
"Of course you'd want it to continue, but what you're hoping with the initial burst in support is that you're seeding pilot studies that are going to bear fruit," said Estess, whose sister was diagnosed with ALS at age 35. "To me, nothing speaks louder than actual data."
Promising projects may then be able to draw funding from the National Institutes of Health, researchers said.
And while it may be unlikely to see a repeat of the viral videos this summer, the ALS community is hopeful the effects of a challenge that encompassed so many people will continue to pay off.
"Even if people don't dump ice over their heads in August, hopefully every year, people will remember the Ice Bucket Challenge," the ALS Association's Munk said. "We asked people, 'Why did you participate in the Ice Bucket Challenge?' The number one answer was: 'Because I was asked to.'"
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89c6a5f63ff8e1241108e28f64a2e459 | https://www.cnbc.com/2015/02/09/more-connected-cars-may-mean-more-hacked-cars.html | More connected cars may mean more hacked cars | More connected cars may mean more hacked cars
Paul Guzzo | Getty Images
Cars may be getting smarter, but that doesn't mean they are getting safer.
As vehicles become more connected to the Internet, automakers are failing to take the necessary measures to protect them against cyberattacks, according to a report released Monday by Sen. Edward J. Markey, D-Mass.
Unlike breaches on retailers, banks and other institutions—where the loss could entail a credit card number or some other personal information—a cyberattack on your car could cost you your life.
"I don't want to be hyperbolic about it, but we are connecting computers to things that can now kill you," said Jeff Williams, founder and CTO of Contrast Security. "Cars are potentially a really deadly thing if you lose control. So we are crossing a threshold into a world where you aren't just losing a spreadsheet or a credit card number, you are talking about directly harming people."
Read More Report sees weak security in cars' wireless systems
VIDEO11:0611:06Cramer: How to play the connected carMad Money with Jim Cramer
Increasingly consumers are buying cars based on their level of connectivity, according to a recent study by McKinsey. The study found that 80 percent of car buyers consider connectivity "important" or "very important."
In fact, it's forecast that more than 50 percent of vehicles sold worldwide this year will be connected to the Internet in at least some minor way, and by 2025 it is predicted that every car will be connected in multiple ways, according to the GSMA.
While hacking a car's system has thus far primarily been something "white hat" hackers have demoed to prove that vulnerabilities exist, there's the risk that as more connected cars hit the streets more cars will become targets of attacks.
"From a vulnerability perspective, I think this could become a massive problem," Williams said.
"The vulnerabilities we see today are pretty hard to exploit. Often times you have to get close to a car in order to get onto the local network, sometimes you have to even attach something to the car to exploit these things. But as we move forward, cars are getting more and more complicated, and there will be more ways to get in."
Sensors, radars, cameras and lasers are all increasingly being built into vehicles to make cars safer and more convenient. Unfortunately, all the new technology also gives hackers more points of entry to gain control remotely.
"We now have lots of wireless access on vehicles. Everything like the tire pressure monitor in the system to the entertainment systems on board used for real-time navigation or streaming. We've got Bluetooth and Wi-Fi and all sorts of things like that on modern vehicles," said Richard Wallace, director for transportation system analysis at the center for Automotive Research.
Read More Self-driving cars—the next terrorism threat?
"All of those allow someone who is not even inside the vehicle to gain access to do something malicious. Even something as simple as accessing your keyless entry system," Wallace said.
For example, some vehicles, including Tesla, have built-in wireless networks that enable the car company to send automatic software updates. While, this seems like a seamless way to issue large amounts of updates to cars' systems, it could also open up a new point of intrusion for bad guys.
"Being able to wirelessly update is great, but it also opens up another potential point for attack. If you can hack the update infrastructure and push your own update into cars then you can take over everyone," Williams said.
While remotely accessing a car to take over critical functions has proved difficult thus far, it's becoming more of a reality.
Just last week a security hole in BMW's system was exposed that allowed security researchers to spoof a cellphone station and send fake text messages to a SIM card in the car's telematics system. From there, the researchers could control the locks in the car.
"If I can unlock your car without a key, what else can I do? If I could figure out how to start the car, I could steal it. And with emerging automated vehicles, maybe you could make the vehicle drive away or smash it into something. These are real concerns," Wallace said.
Taking over a car's critical functions is not the only concern. There's also the issue of privacy.
According to Markey's report—which detailed information from 16 car manufacturers including Ford, Toyota and General Motors—there's an extensive amount of driving history data being harvested. This data can include specific location information, like where a car was last parked and distances traveled as well as time.
Nine of the automakers also used third-party companies to collect this data.
In November, the Alliance of Automobile manufacturers and the Association of Global Automakers published a set of voluntary privacy principles trying to limit the use of vehicle data used for marketing.
While Markey's report said that the agreement represents an important step forward by the automotive industry, it also stated that the established principles "continue to raise a number of questions regarding how car manufacturers will effectively make their practices transparent to consumers and provide consumers with rights to prevent sensitive data collection in the first place."
Simply put, automakers are not keeping up with the threats facing drivers in connected cars, Markey's report concludes.
According to the report, automakers' security measures are "inconsistent and haphazard." And many of the automakers reviewed by the senator's office didn't even seem to understand questions posed regarding cyberthreats, according to the report.
The industry trade group Global Automakers said in a statement to CNBC that it is "committed to finding vulnerabilities and staying ahead of possible attacks in order to protect customers while continuing to provide advanced features to enhance the driving experience."
Yet it's critical car manufacturer's address these issues sooner rather than later, Wallace said.
"Now is the time to fix it. Before we have so much connectivity and automation in cars that the bad actors have really jumped onto this because it's a target," Wallace said.
Currently, there's not a lot consumers can do to protect themselves from potential hackers, said Carl Leonard, a principal security analyst at the cybersecurity firm Websense.
"Right now, we are reliant on the car manufacturers to make sure they are doing all they can. As a consumer, you can keep your eye on the news for recalls and make sure your software is up to date. Consumers should also be careful when plugging into different wireless networks with their car," Leonard said.
Because an intrusion detection system for cars does not yet exist it's difficult for automakers and consumers to know when a vehicle is under a cyberattack, Williams said.
In fact, the only way a person would know is after it's too late.
"Every one of the systems in your car could fail and that is how you would know you were under attack," Williams said. "There's no way to know and in the worst case scenario you will never know you because you will be dead."
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37cfe0dba9d498620f6e22bc5332cddf | https://www.cnbc.com/2015/02/09/why-older-investors-make-bad-financial-decisions.html | Why older investors make bad financial decisions | Why older investors make bad financial decisions
Death and taxes may be two certainties in life, but sadly, there is another. You are highly likely to become less capable of managing your money as you age.
Old age often comes with declining cognition, of course. And now, a study of elderly people over time has measured how even slight cognitive changes affect financial literacy and financial decision making. The results are sobering.
Jose Luis Pelaez | Getty Images
Even for people who experienced minor cognitive changes but didn't have any overt dementia, every one unit decline in cognition reduced the average number of financial literacy questions they could answer correctly from 70 percent to 60 percent, the researchers found.
"Even these subtle cognitive changes that doctors and others would consider normal in old age are driving down decision-making abilities and the financial knowledge that you need to make good decisions," said Patricia Boyle, a neuropsychologist at the Rush University Medical Center's Alzheimer's Disease Center and an author of the study.
Read MoreFor many Americans, retirement won't be golden
VIDEO1:1901:19Federal budget could hurt retirement savings Closing Bell
The decline in financial decision-making ability wouldn't be quite so bad if people were retiring with defined benefit pensions. But those pensions are going out of fashion, and more and more aging investors are facing the prospect of managing their retirement finances on their own.
"These days we have 401(k) plans and lots and lots of choices that never confronted our parents. We have to choose how to invest our 401(k) plan balances. We have to choose at what speed to draw them down. We have to worry about the tax consequences. We have to worry about fees," said Anthony Webb, a senior research economist at the Center for Retirement Research at Boston College, which published the recent study.
"If you are really smart and you are in your 50s, this is something that you can handle, though the evidence is that a lot of people have difficulty even then," said Webb. "The problem for the future is, what do we do if we have a whole load of 80-year-olds who have Alzheimer's and have $1 million in their retirement plans? It's a recipe for disaster."
The recent study adds to previous research showing a decline in financial decision-making ability with age. One notable study found that financial decision-making ability follows a U–shaped pattern, improving in youth and peaking at age 53, and then declining.
Studies have also shown that confidence in one's financial decisions does not decline at the same rate as ability.
"You see very often the person who has some cognitive impairment, but at least insists externally that they have never been better," said David Laibson, a professor of economics at Harvard and one of the authors of the study identifying the U–shaped pattern. "If people were more aware and able to acknowledge their changing capacities, they would be more comfortable delegating those important decisions to others." But because they're not, he said, "we end up in a world where there is very little delegation, and often things end badly."
The problem of declining cognition is especially acute among women. They tend to live longer than men, and old age is a major risk factor for developing Alzheimer's disease. Largely because of their longevity, women account for almost two-thirds of Americans with the disease, according to the Alzheimer's Association.
Men don't get off scot-free: a study of nearly 2,000 Americans aged 70 to 89 found that 16 percent of them had some form of mild cognitive impairment, and the rate was higher for men than for women.
Still, with men being at least six years older than their female partners in nearly 1 in 5 couples, "men who do have reductions in cognitive capacity end up very often with a caregiver who can watch over them and their finances," said Laibson.
Read MoreWhen parents can't manage their money
Adding to women's challenges, they tend to accumulate less in retirement savings, thanks to time out of the workforce and the wage gap, and have generally lower levels of financial literacy and confidence. Just 20 percent of women feel very prepared to meet their long-term financial goals, a figure that has remained largely unchanged for a decade, and only a third of women believe they are in good shape when it comes to retirement savings, according to a study by Prudential.
Read MoreWhy there is a gender gap in retirement savings
And women are particularly vulnerable to elder financial abuse—they're almost twice as likely to be victimized as men, according to one study.
There are a few efforts underway to protect both men and women from the financial risks they face as their cognitive abilities decline. The Consumer Financial Protection Bureau offers financial education targeted at older Americans, for example. And some states, like Illinois, have adopted specific measures to try to prevent seniors from being financially exploited.
On the savings front, regulators have proposed new rules aimed at encouraging older Americans to allocate some of their retirement savings to annuity contracts that will pay out late in life.
Read MoreAfraid of outliving your money? Here's one solution
Awareness of the problem is growing. But for now, old age can hit your wallet as well as your health.
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f04a80e87891b85757d8ce063453d779 | https://www.cnbc.com/2015/02/10/california-drought-states-tempt-california-dairy-farms--we-have-water.html | Outside states to California dairy farmers: We have water | Outside states to California dairy farmers: We have water
VIDEO0:4400:44Greener Pastures Send Dairy Farmers Packing
With California facing its fourth year of a devastating drought, and dairy operators struggling with the high cost of hay, other states are swooping in to try to lure them away. And they're not pitching generous tax incentives, but the promise of water, a stable feed supply and abundant land.
"We just feel that we're a natural fit for dairy in Nebraska, because we have the land, we have the water and the feed, and we have low electricity rates," said Willow Holoubek, executive director of the Alliance for the Future of Agriculture in Nebraska. "We have a couple of California dairymen building in Nebraska now. One is building and one has moved most of his herd already, and we've got several more that are thinking about it."
At the World Ag Expo in Tulare, California, more than a half dozen states—Nebraska, Iowa, Kansas, North Dakota, South Dakota, Texas, and Nevada—have booths to recruit milk producers.
Sam Hodgson | Bloomberg | Getty Images
"Increasingly every year, there are more states showing up at the World Ag Expo to entice California dairies to move to their states, and they're finding a receptive audience," said Joel Karlin, a commodity manager and market analyst for Western Milling, a large agricultural livestock feed manufacturer exhibiting at the show. "California has been losing cows to other states such as Idaho, Texas and New Mexico—and now a lot of operators are looking at the Midwest more favorably since feed is cheaper, labor is cheaper and water is more plentiful."
Mark Watte, a diversified row crop and dairy farmer in Tulare, said he's considered moving his 1,000-cow operation out of California due to water shortages and burdensome regulations, but his family obligations keep him here. "In the absence of some of the personal issues, I would move in a heartbeat, because this just is not a fun place to do business anymore."
Added Watte, "All of the California dairymen that want to expand are moving into other states. There has not been a new dairy built in California in probably in 10 years, and I don't think there ever will be another one built."
Iowa's dairy recruitment team is sharing a booth at the expo with the state's corn trade group. "If we're not at the table then they will be looking at other states," said Sue Ann Claudon, executive director of the Iowa State Dairy Association. "There's a lot of options for dairy farmers, and it's good for our economy in Iowa if we grow the industry."
Read MoreUnsafe water only adds to California drought misery
The Dairy Iowa banner here at the expo touts the state's "abundant land, water, feed and forage supply." It also cites a "positive business climate," among other things.
Some governors have been known to get personally involved in pitching their states to California dairy farmers.
Last year, South Dakota Gov. Dennis Daugaard attended his third-consecutive World Ag Expo and spent time in the state's booth to promote South Dakota's agribusiness opportunities.
Daugaard, who grew up on his family's dairy farm, isn't planning to come this year but his state has a booth around the corner from the Iowa dairy recruitment space.
Read MoreGot synthetic milk? Scientists make dairy in a lab
"We're growing and we're going to continue to grow," said David Skaggs, a dairy development specialist at the South Dakota Department of Agriculture. "We've got a young family up in Merced (California) that just purchased a farm in South Dakota, and they will be moving."
California is the leading dairy state and home to approximately 1,500 dairies that house some 1.77 million milk cows, and it accounts for about 20 percent of the nation's milk production.
The state's dairy industry is seen as among the most heavily regulated in the country and it operates under statewide milk-pricing plans.
VIDEO1:4301:43Industries most impacted by drought
Last Friday, California's three largest dairy cooperatives petitioned the USDA to join the Federal Milk Marketing Order (FMMO), a system used by the majority of dairy farmers in other states.
In the petition, the groups said the statewide milk-pricing system "has cost California dairy farmers more than $1.5 billion since 2010." The groups maintain the FMMO would give them "more equitable, market-based milk prices"
Meanwhile, California has lost approximately 500 dairies since 2008, and the severe water crisis has brought new challenges because many lack water to plant alfalfa hay and need to truck in feed for their animals. Some of the feed is coming from out of state.
Read MoreCalifornia drought: 'May have to migrate people'
"California's drought the last three to four years has made it tough for dairy producers there," said Roger Hoskin, an agricultural economist with the USDA who specializes in the dairy industry. "But in the country as a whole, it's been OK for producers, although milk prices are coming down from record highs or near-record highs."
Last year, dairy farmers saw the average milk price reach a record high of $23.97 per hundredweight, or roughly the size of a 10-gallon tank. That represented a nearly 20 percent increase over the 2013 price of $20.05 per hundredweight.
The price was recently sitting around $15 per hundredweight, or down 37 percent from the record high. Robust commercial exports during 2014 played a major role in elevating dairy prices.
The USDA economist said it's not just the drought and high cost of feed that has been hurting California dairy producers but a decline in the dry milk market that's been "a big export market for them. They've taken a disproportionate hit on that market. Strong dollar is contributing and China has retreated from the market."
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be2a206301a741ad3a5b4e0a9d4a5d30 | https://www.cnbc.com/2015/02/11/billcom-raises-50-million-for-cloud-invoicing.html | Bill.com raises $50 million for cloud invoicing | Bill.com raises $50 million for cloud invoicing
Source: Bill.com
Silicon Valley Bank's expansive roster of small business clients gives it a giant window into the technology world, as long it's paying attention to the software being used by its customers.
Sometimes the bank gets excited enough about a product to invest directly in the start-up that created it. That wasn't the only factor in the bank's big new investment in Bill.com, but it played a role.
Bill.com, a provider of accounting software used by 600,000 businesses, said Wednesday it raised $50 million in equity and debt from Silicon Valley Bank along with existing backers including Emergence Capital, August Capital and Icon Ventures.
Read MoreOut of the way VCs: Banks muscle in on tech boom
"They've built a good brand and something that's clearly recognized, and we've seen clients at a bunch of different stages leveraging their platform," said Jake Moseley, senior market manager for Silicon Valley Bank. They've "differentiated themselves in the space and created a very simple and scalable solution to what we believe is a very common challenge for business customers."
That challenge involves having too many bills and invoices floating around in paper form, even at a time when technology is taking over the workplace.
Founded in 2006 by Rene Lacerte, Bill.com developed cloud-based software that lets businesses of all sizes automate accounts payable and receivable. Instead of bill approvals being passed around the office in manila envelopes or tracked via spreadsheets, Bill.com's system gives accounting and finance departments visibility into all of their outstanding invoices.
Bill.com financing rounds
Year Investors (among others) Amount 2007DCM, Emergence Capital$2.1 mln2009August Capital$8.5 mln2010Jafco (now Icon Ventures)$8.5 mln2011Financial Partners Fund$15 mln2013Scale Venture Partners$38 mln2015Silicon Valley Bank$50 mln
Lacerte says customers can chop 50 to 75 percent off the time it takes them to deal with payments and invoices, and get paid two to three times faster. The software also integrates with accounting products from Xero, NetSuite, Intuit's QuickBooks and Intacct, so data sync up easily.
There's no shortage of competition though. Some of those companies have overlapping product lines, and other start-ups like FreshBooks and Wave Accounting are bringing accounting functions to small businesses in the cloud. Lacerte says his product is the best choice for clients who want accounts payable, accounts receivable and document management in one place.
"We're really focused on magically simple business payments," Lacerte said from the company's headquarters in Palo Alto, California. Because consumers have been doing electronic transactions for years, Lacerte calls his product the "consumerization of payments applied to business world."
According to Bill.com's website, subscriptions start at $19 per user per month and go up to $49, with custom pricing for enterprise clients. Bigger companies often use Bill.com directly, while many small businesses offload payments to their banks and accounting firms, which are increasingly adopting the product.
Read MoreMom-and-pop shops fly to the cloud
Bill.com previously raised $80 million, including a $38 million financing in 2013 led by Scale Venture Partners. Lacerte said that some of the new money will go toward hiring, as the company plans to expand to 190 employees by the end of the year from about 140 today. He said the company is still two to three years from an initial public offering.
Mozilla, creator of the Firefox Web browser, has been using Bill.com for half a decade, starting with accounts payable, then receivable and then electronic payments. Jim Cook, Mozilla's chief financial officer, said the San Francisco-based developer is spending thousands of dollars a month with Bill.com, but still less than what it would cost for a single full-time employee to handle all that work.
"Just getting rid of paper and physical checks was how we started," said Cook. "As we progressed, it just became clear that it was a better way. It had a better audit trail for me, and was easier and more robust."
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8c1a6ecb2b18cd6182e9567236a75646 | https://www.cnbc.com/2015/02/11/can-monetary-policy-save-brazil.html?trknav=homestack%3Atopnews%3A6 | 'No solution' to Brazil's crisis: Economist | 'No solution' to Brazil's crisis: Economist
Henrique Meirelles | Bloomberg | Getty Images
Brazil's central bank won't be able to save the country with monetary policy, economists warned, after downgrading their 2015 growth outlook to zero as stagflation drags the once vibrant economy.
"There is no near-term solution to deepening stagflation," said Dev Ashish, Latin America economist at Societe Generale in a note on Wednesday. "Fiscal and monetary orthodoxy is not expected to yield any fruit in the near to medium term."
Annual inflation shot up to a twelve-year high of 7.1 percent in January, according to official data on Friday, well above the central bank's 4.5 percent target range. With inflation widely expected to remain elevated, analysts in Brazil revised their 2015 gross domestic product (GDP) growth forecast to zero, according to a central bank survey this week.
South America's largest nation is estimated to have grown less than 1 percent last year.
Brazil's central bank - the Banco Central do Brasil (BCP) - engaged in an aggressive tightening cycle last year to combat inflation. It pushed the benchmark short-term interest rate, the Selic, to its current multi-year high of 12.25 percent. Markets widely expect more rate hikes in the coming months.
Analysts don't have faith in the central bank's toolbox. Rate hikes dampen economic growth, so the success of additional monetary tightening depends on how effectively the government manages its finances, but that depends on economic growth, SocGen said. The bank expects public debt to rise nearly 70 percent over the next two years on the back of weak GDP.
"Monetary tightening could prove counterproductive to both growth and the , leaving its impact on inflation ambiguous….Clearly, there is more pain in store for Brazil on growth, inflation and interest rates," Ashish said.
Read MoreCheap oil is just one worry for Brazil's Petrobras
Wells Fargo economists echoed those concerns in a note on Tuesday, saying it's uncertain what higher interest rates can do to minimize the impact of a weaker currency on inflation. The real has dropped over 20 percent against the U.S. dollar in the past six months.
VIDEO2:4502:45Brazil will remain relevant in EM: Itaú BBA CEOSquawk Box Europe
Furthermore, rate hikes are hurting consumer spending, they said:
"The biggest problem for growth today in Brazil is not investment or net exports; it is the Brazilian consumer, who has basically disappeared from the economic landscape in the past several quarters. The prospects for consumer spending to strengthen in the short term are not very good as the central bank continues to push interest rates."
Recent fiscal measures by Brazilian finance minister Joaquim Levy are worsening the central bank's dilemma, Wells Fargo said. The measures, aimed at shoring up the government's balance sheet, include tax hikes, entitlement cuts and increases in administered prices such as gasoline and electricity.
"The increase in consumer prices in January is related to the policy changes made by the government in terms of administered prices and new taxes," the bank said. "The recent decision in terms of policies is threatening to up-end inflationary expectations…This means that the Brazilian central bank will have to tread lightly as it continues to tighten monetary policy going forward."
BBVA's Latin America team agreed: "As this set of prices should continue to weigh on inflation in the coming months, we expect annual inflation to continue to trend upwards in the short-term."
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25cd8f74264b5c7d6046d1996a6a8bec | https://www.cnbc.com/2015/02/11/drought-brings-challenges-opportunities-for-agricultural-equipment-sellers.html?utm_source=Test&utm_campaign=4c8e5fafb8-Hortau_Regional_Support_Team_Update5_13_2014&utm_medium=email&utm_term=0_1dc0044d8d-4c8e5fafb8- | The new tech players of the California drought | The new tech players of the California drought
VIDEO0:4600:46Farm show buzzes over dronesAgriculture
Farmer Mark Borba isn't looking to buy a shiny new tractor this year at the World Ag Expo in Tulare, California. He tends to some 9,000 acres of crops in the drought-stricken San Joaquin Valley, and about one-third of it will be pulled from production.
"I may wander around the grounds for an hour and see all the stuff that I'd like to buy, but no way am I buying anything," said Borba, who grows everything from almonds and garlic to lettuce, tomatoes and onions. "We're over-equipped because we've got equipment to farm 9,000 acres, and we'll probably farm less than 6,000 because of the drought."
The Expo, which runs through Thursday, is the world's largest outdoor farm machinery show. An estimated 100,000 people are expected to view the latest ag machinery and products from 1,500 exhibitors, including Deere, AGCO, Case IH.
But they're not alone: Nontraditional agricultural equipment firms are also on hand, showing off smart water technology, agricultural drones, dairy robotics and mechanized harvesting. Others, like AGCO, are among longtime equipment suppliers that are promoting new precision agricultural technology at the show.
Read MoreThe next hot tech bet...farming?
Robert Crain, AGCO's senior VP and general manager of the Americas, said the row crop machinery is the company's "biggest headwind now," while machinery tied to more robust livestock sector "is very, very good. The hay business, for example, and up until very recently, the dairy business, has been good for us."
Competition at the Expo is so fierce that there's talk about discounting this year, particularly for used tractors and combines.
"The used equipment has been flooding the market," said Charlie Pitigliano, who manages about 10,000 acres of farmland in the San Joaquin Valley. Pitigliano said the lower price of key row crops has led to some used machinery prices to decline by as much as 20 percent.
Pitigliano, who grows wheat, corn and wine grapes, also blames the drought for the softer used farm equipment market. "Farmers are not going to buy equipment if they can get by with what they have now," he said.
A John Deere 8600 tractor is displayed on opening day of the World Ag Expo on February 10, 2015 in Tulare, Calif.Getty Images
But the drought also has been a boom for companies selling technology tied to water efficiency and moisture-monitoring systems.
Canadian-based Hortau, which specializes in wireless, Web-based irrigation management systems, started ramping up its U.S. operations 1½ years ago—and already, the California market now represents approximately 75 percent of sales. Hortau sells a so-called tensiometer probe system, which it claims can save farmers up to 50 percent of water and improve fertilizer efficiency to root zones.
Read MoreSpaceX is looking to hire an experienced...farmer?
"A year ago, things were rough because farmers were focused on finding the water, punching more wells, and doing water deals with neighbors and things," said Joe Wiegand, a Hortau sales representative. "Now everyone's telling me, 'I'm ready to look at the technology and be water efficient and conserve that investment that I spent all that money on.'"
Netafim USA, a supplier of smart drip and micro-irrigation equipment to the agriculture market, is at the show and introducing a new flexible pipeline positioning system that helps growers spend less on infrastructure. "The technology is affordable, and the return on investment is almost immediate," said Ze'ev Barylka, director of ag sales for Netafim.
The latest in ag drone technology also is displayed. The drones allow farmers to create aerial maps to locate soil stress and plot irrigation systems and create more efficient use of water, fertilizer and pesticides.
Read More Drone gap? US may have one in farming, say experts
"We create new knowledge you didn't have before," said Mark Hull, owner of All Drone Solutions, a start-up in Exeter, California. "The drone costs a small amount compared to what you can save."
The drone space is one of the hottest areas of investment today for ag tech investors, according to Rob Leclerc, co-founder and CEO of AgFunder, an online platform for investors looking to get into the food and agriculture technology sector. He said the ag drone space saw $82 million of investment last year, led by $25 million in funding going to Airware.
Leclerc said ag tech funding is coming from venture capital based in the Silicon Valley, as well as the VC arms of big ag companies, plus private equity funds and sovereign wealth funds from Europe and Asia.
"We still have what you'd call a lot of smart money in the space," said Leclerc. "Globally, everyone understands the importance of food and food security and the role that technology will play to take that forward."
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5acf5ec0ca830ec43cba7e0d957daffd | https://www.cnbc.com/2015/02/11/teslas-musk-has-a-secret-weapon.html | Tesla's Musk has a 'secret weapon' | Tesla's Musk has a 'secret weapon'
VIDEO2:2602:26Tesla earnings stop short of estimatesSquawk Box
Leave it to Tesla's Elon Musk to spice up a quarterly earnings call with a vague comment that is sure to have investors and critics asking, "What is he up to now?"
While answering a question about the strength of demand for Tesla's Model S during Tesla's fourth quarter earnings call, Musk said he's not concerned about buyers stepping up this year.
Then he said, "I have a secret weapon on the demand side and might release a good weapon against the dealers."
It sounded as if Musk had a sly grin on his face as he made the comment.
Then again, it could be that we've come to expect answers from Musk that often leave us wondering, "What is he not telling us?"
For example, during the earnings call Musk discussed delivery later this year of the company's next vehicle, the Model X.
VIDEO1:5001:50LeBeau tests Tesla's insane modeSquawk Alley
While outlining how Tesla designers were "adventurous" in creating the crossover utility vehicle, Musk mentioned the Model X having falcon wing doors, incredible back seats and "some other things about the Model X we haven't shared yet."
It was vintage Musk.
It also shows he has no plans to change the often cryptic comments he makes about upcoming models, business plans or Tesla's future.
Read MoreTesla targets cold-weather states with new P85D
After Tesla reported a fourth quarter loss of $108 million dollars, which was worse than analysts expected, Musk did not sound worried. In fact, at one point Musk talked about future of Tesla and the lofty valuation he envisioned for the electric vehicle company. Musk didn't hold back and compared Tesla's potential to Apple.
Analysts are not quite as upbeat, however.
"Tesla missed most of its numbers in Q4," said Karl Brauer senior analyst at Kelley Blue Book. "It was close on vehicle deliveries, but revenue and earnings were off. This puts Elon Musk under greater pressure to deliver in 2015."
As for Musk's "secret weapon" to spur demand or tweak franchised auto dealers, there will be plenty of guesses. As is often the case when Musk makes vague comments about future events, we will likely get only a tidbit or two ahead of the final announcement.
Meanwhile, auto dealers who have been fighting to keep Tesla from selling cars directly can look forward to another salvo from the auto executive who firmly believes he already has "a better way to do business."
Questions? Comments? BehindTheWheel@cnbc.com.
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49c4fa7d0857073383f090e533253c7c | https://www.cnbc.com/2015/02/12/ackman-fannie-best-tradein-capital-markets.html | Ackman: Fannie 'best trade...in capital markets' | Ackman: Fannie 'best trade...in capital markets'
Bill AckmanKerima Greene | CNBC
Hedge fund mogul Bill Ackman has extremely high conviction on what was a losing trade for him last year: the stock of housing giants Fannie Mae and Freddie Mac.
"It's the most interesting risk-reward that I'm aware of in the capital markets right now," Ackman said Thursday at the Harbor Investment Conference in New York, a charity event he organized.
Ackman positions in both stocks were some of the few losers in his portfolio last year.
Read More What's up with Miami's condo conundrum?
Fannie Mae and Freddie Mac share prices declined 32 percent and 29 percent, respectively, in 2014.
Ackman recommended owning common stock over preferred shares.
He said Congress would eventually stop taking all profits from Fannie and Freddie and let them recapitalize through private markets.
Read More Summers: Why the Fed should not raise rates
He also warned that the current status of the GSEs, or government sponsored entities, was dangerous; a "slight downturn" in the markets could cause another taxpayer-led bailout.
He said it was politically unrealistic to eliminate the 30-year mortgage, long a tradition in the U.S. and the core of the GSE business.
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b16b8c7c94c77568a98e79c6c902a80b | https://www.cnbc.com/2015/02/12/airline-gets-virtual-with-its-travel-qantas-to-offer-vr.html | Coffee, tea or VR? In-flight entertainment gets virtual | Coffee, tea or VR? In-flight entertainment gets virtual
Qantas virtual reality headsets to be tested on some A380 flightsSource: Qantas
On your next international flight, you may want to forget the screen on the back seat and lose your tablet device.
In an in-flight entertainment first, Australian carrier Qantas will soon be making Samsung's virtual reality headsets, called Gear VR, available to premium passengers on some long-distance flights. A three-month trial run begins in mid-March, when Qantas is expected to make the headsets available to first-class passengers on some of the airline's A380 flights between Australia and Los Angeles.
Visitors to Qantas first-class lounges in Sydney and Melbourne have already received headsets to test.
Eventually, Qantas says the VR technology "will transport customers to an immersive virtual world … and showcase the sights and delights of network destinations, new Qantas products and the latest in-flight blockbuster movies."
Read MoreIt's not just Facebook and Google chasing virtual reality
For the trial, however, Qantas is just giving passengers an appetizer menu. The company will offer a virtual reality sampler of short features, or "vignettes," filmed in Australia and produced by Palo Alto-based technology company Jaunt. The limited run has a playlist that allows headset-wearers to watch a Qantas airplane take off and land. Other stops include a visit to the top of the Sydney Harbor Bridge, a Qantas airport lounge and Kakadu, Australia's largest national park.
"Travel and VR make a natural pair," said Jaunt CEO Jens Christensen. So adding virtual reality options to the in-flight experience seems like a logical next step.
"We've gone from no in-flight entertainment, to one drop-down screen, then screens in the seats, and now personal screens," said Christensen.
"VR is the next step on the evolutionary scale," he added. "Instead of a limited-size screen, a passenger is transported to a new location."
That's appealing if the technology is someday used to "virtually transport economy-class passengers in ultra-tight seating … to other more spacious 'realities' outside of the metal tube," said Mary Kirby, founder of the Runway Girl Network.
Qantas Samsung VR headsets to be trialed on some long-haul flightsSource: Qantas
Still, that may be just wishful thinking for now. Widespread adoption by airlines "appears unlikely now" due in part to the high costs associated with the headsets and their handling, she added.
Another concern is making passengers sick. For some passengers, visual stimulants like VR sometimes trigger side-effects like vertigo, nausea and—in the more extreme cases—seizures.
"I think putting any device that simulates motion into something that is already moving will guarantee those air sickness bags won't just be used for scribbling notes," said Frank Catalano, a tech industry consultant and a columnist at GeekWire.
The stationary filming techniques used in the Qantas VR vignettes should help, said Jaunt's Christensen, "When you're in our environments, you're stable. We found that eliminates the nausea."
But what if the virtual reality experience is too good? Will travelers no longer need to actually go to the places they've "visited" during their flights?
"We think by transporting our customers to the immersive virtual worlds of destinations that [they] have never seen, the VR Gear will actually inspire our customers to travel more," said Olivia Wirth, a Qantas executive for marketing and corporate affairs, via email.
Catalano, a frequent traveler, agreed. "You simply can't replicate the smells, the tastes, the serendipitous discoveries, the off-handed casual conversations with locals, the immersion into a new and different culture," he said. "All virtual reality can do is stimulate the appetite for the real thing."
—By Harriet Baskas, special to CNBC.com. Baskas is the author of seven books, including "Hidden Treasures: What Museums Can't or Won't Show You," and the Stuck at the Airport blog. Follow her on Twitter at @hbaskas. Follow Road Warrior at @CNBCtravel.
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a3bfdbeeb41d977d5cd691c8ea5dc144 | https://www.cnbc.com/2015/02/12/chinas-lending-push-bypasses-cash-starved-farm-sector.html | China's lending push bypasses cash-starved farm sector | China's lending push bypasses cash-starved farm sector
Daniel Acker | Bloomberg | Getty Images
As China pulls out the stops to get more lending into its economy to bolster flagging growth, farming, a sector that employs almost a third of its 1.4 billion people, remains in desperate need of funding.
Policymakers have cut interest rates, increased lending targets and freed up banks' reserves to lend more, helping to sustain a rally in Chinese shares and a property bubble, but it is not getting through to agriculture, which produces around 9 percent of China's GDP, though with pitiful productivity.
World Bank data showed the value added per farm worker in China was $750 in 2012, compared with around $63,000 in the United States.
Inefficient and obsolete farming techniques have also been blamed for causing major soil and water pollution and food scandals, but it needs investment to turn the sector around.
VIDEO4:2604:26What's behind weak China housing, lending data?Street Signs Asia
Jin Yong, a lifelong farmer in Anhui, one of China's poorest provinces, formed a corporate entity with other individual investors in an effort to improve his access to funding.
The plan is to sell organic vegetables, but the company has yet to turn a profit, and credit is part of the problem.
"We don't have rights to the land. We have things in the ground, but banks don't care. They just want evidence of ownership for collateral."
Read MoreChina goes organic amid food scandals
Beijing is aware of the problem; its recently published "number one" planning document listed modernizing farms as a key priority for 2015, including plans to encourage private investment and cheaper financing.
But lenders are steering clear.
The share of loans going to agriculture has declined every year since 2010, official data shows. In 2014 banks lent 306.5 billion yuan ($49.1 billion) to agriculture, compared with approximately 1 trillion yuan for margin finance for use in stock speculation, and 2.8 trillion yuan for real estate.
Reform dilemma
Chinese bankers who spoke to Reuters said official calls to lend to farmers were effectively countermanded by official orders to reduce the bad debt on their books.
"When banks lend, they're not going to think, 'I wonder what direction the country is expanding in?'" said a senior loan officer at one of the big five state-owned banks.
"A bank's priority is still going to be a firm's liquidity; is it good? Cash flow, is it good? Do they have the ability to repay?"
Foreign bankers told Reuters they have been approached by regulators asking them to increase lending to the sector, but they, too, are reluctant.
There is also a failure by banks to adapt to changing needs, said Cheng Enjiang, senior research fellow at Victoria University in Australia specializing in rural finance and microfinance in China.
"There has been an increase in demand for agricultural loans to larger-scale farms, but rural credit co-operatives and agricultural banks don't have feasible products tested for that," he said.
There are also political dimensions to the problem.
Agricultural analysts say self-sufficiency goals intended to minimize China's dependence on food imports have resulted in mandated production of staple grains and starches that earn far lower profit margins for farmers than fruits and meats.
Some officials also fear that increasing efficiency and profits through mechanization would ring Chinese cities with slums full of unemployed farmers.
But policies designed to keep farmers on small, low-yielding plots impedes the consolidation that could create economies of scale.
The right to buy and sell rural land is retained entirely by the local government, so not only is a farmer unable to use his land as collateral, he can't buy other people's land.
Thus Jin Yong, the aspiring organic vegetable magnate, can only rent land, and rental contracts are no use in securing bank loans.
Without major policy reforms, farming will remain a bad bet both for the farmers and the bankers.
"We don't lend to certain sectors just because the government tells us to," said a fund manager at a listed Chinese commercial bank.
"We'll only lend to a company in any sector if it means we'll come out profitable."
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09e2f602008be38e6bfa3b77359b1fe1 | https://www.cnbc.com/2015/02/12/crude-oil-production-the-looming-threat-to-american-oil-output.html | The looming threat to American oil output | The looming threat to American oil output
VIDEO3:5303:53Drilling rig count in focus
In recent weeks, the market has shifted its attention from cratering crude prices to the falling number of rigs operating in American oilfields. But in the coming months, the very life cycle of many of those wells may have many market watchers concerned about output and price stability, experts told CNBC.
Oil wells—whether conventional or unconventional—reach peak production soon after they yield the first drop of crude. The difference is how quickly they enter decline.
Read MoreUS needs to try harder if it wants to win the oil war
Conventional wells go through a long period of steady, flat production between peak and decline. In contrast, production falls rapidly in the first three years of unconventional wells—those in shale, sandstone and carbonates. They then enter a long phase of very low production.
In order to even keep production steady across an unconventional oilfield, producers must constantly drill new, high-producing wells. Now they're cutting back on exploration, and many investors and energy companies do not fully appreciate how many new wells producers will have to drill in order to get production back to where they were, said Michael Rowe, vice president of exploration and production research at Tudor Pickering Holt.
VIDEO2:1602:16Copper will rebound with oil: Pro
On Tuesday, the International Energy Agency projected that oil supplies will continue to increase throughout this year. But in fact, oil supplies and prices may be much more volatile over the coming couple years, said Murray Olson, a former geological engineer and co-founder of Calgary-based Northern Blizzard Resources.
"These rapid changes in the price of oil will be a feast-and-famine set of economic consequences for the next few years, with much instability," Olson said.
Read MoreCrude oil volatility indicates a bottom: Traders
For the last nine years, American oil production has only climbed, growing steadily from 5 million barrels per day in 2005 to 8.6 million last year.
Drillers in the top seven U.S. shale plays get 43 to 64 percent of the oil out of their wells in the first three years of pumping, according to research by David Hughes, a fellow at the Post Carbon Institute. In reports published in 2013 and 2014, Hughes has said that the U.S. Energy Information Administration's long-term oil output projections are overly optimistic.
The problem at present is that so-called "tight oil" drillers are cutting capital expenditure budgets, and creating new wells is a front-loaded investment. Nearly all of the costs come in the first two phases: drilling for exploration and hydrofracking, the process of pumping a mixture of water and chemicals into the ground to break up rock formations and release oil and gas.
Read MoreOil layoffs could come back to haunt the industry
The number of rigs drilling new oil and gas wells in the United States has fallen 25 percent from the highs in September. The slide has accelerated in the last two weeks, with another 177 rig reductions, bringing the total number of operating rigs to 1,456.
To be sure, some new wells have been drilled, but producers have delayed fracking them. In its most recent report, the North Dakota Industrial Commission pointed out that 775 drilled wells in the state's Bakken Shale were waiting to be completed at the end of November. While some of the wells were not being completed due to a backlog of work for fracking crews, some companies have made the strategic decision to put off the investment in the second phase, Hughes told CNBC.
VIDEO3:5503:55Will the oil and gas cost cuts be permanent?Squawk Box Asia
However, they've already drilled many of the most economic wells. Currently, exploration and production companies are "high-grading," or moving rigs from marginal parts of their portfolios to areas with more economical wells.
In the medium term, they will have to start drilling the less economical wells, Hughes said. That means their break-even prices will only get higher over time.
"The wells don't get any cheaper when you drill in a poor location," Hughes said. "As the sweet spots become saturated, the amount of money you have to spend to keep the production rate flat goes up."
Read MoreWhy rig cuts won't save oil: Goldman
Hughes estimates that drillers have worked their way through only about a quarter of the Bakken but said they have tapped about three-quarters of its sweet spots.
The Energy Information Administration projects that average production will continue to grow in 2015, reaching 9.3 million barrels per day and then slow to 9.5 million barrels per day in 2016. Hughes thinks U.S. producers could come close to the estimate this year, but average production in 2016 will fall short and come in below 2015 output.
Cutbacks in the U.S. oil patch show that Saudi Arabia's poker game will be successful in the next few quarters, Olson said. In November, the world's top oil exporter declined to agree to output cuts that other OPEC members sought in order to put a floor under oil prices.
Instead, the Saudis have resolved to let crude prices remain low, which squeezes high-cost production in the United States.
"Their production is more convention, so they have lesser declines to deal with and more ability to put low-cost production on quickly," Olson said. "They are holding the cards."
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f7d6031624a6cac21063c30d2687f815 | https://www.cnbc.com/2015/02/12/gold-edges-up-on-dollar-but-heads-for-third-weekly-drop.html | Gold edges up on dollar but heads for third weekly drop | Gold edges up on dollar but heads for third weekly drop
AP
Gold rose one percent on Friday, erasing a week of losses, as the dollar dropped on weaker than expected U.S. economic data.
Spot gold rose to a session high of $1,234.60 an ounce and was up 0.5 percent at $1,228 an ounce.
U.S. gold for April delivery edged up $9 at $1,229 an ounce. The United States was on a national holiday on Monday.
``We have the long weekend in the U.S., so we may continue to see some book-squaring throughout the day ahead of that,'' MKS SA head of trading Afshin Nabavi said.
Read More'Halftime' trader bets on boomers hitting open road
``We are in a holding pattern between $1,150 and $1,300 because there isn't enough clarity around when the Fed is going to be hiking interest rates and what is going to be happening with Greece,'' ING Bank senior strategist Hamza Khan said.
VIDEO1:0801:08Gold's tough runPower Lunch
A weaker dollar supports gold by making the dollar-denominated asset cheaper for holders of other currencies.
But outlook for the dollar remained upbeat despite the current pause in its long-term rally, as many investors continued to price in an interest rate hike by the Federal Reserve some time this year.
Any hike by the Fed, which has kept rates near zero since 2008 to stimulate the U.S. economy, could hurt demand for bullion, a non-interest-bearing asset.
Read MoreGold demand sinks to five-year low in 2014
Stronger global shares on Friday, lifted by hoped of a debt deal in Greece and robust growth figures from Germany, also kept gold's upside in check.
Holding in the SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell 0.23 percent to 771.51 tons on Thursday.
In the physical markets, Chinese buying remained stable ahead of the Lunar New Year holiday next week. Premiums on the Shanghai Gold Exchange traded unchanged on the day at $3-$4 an ounce on Friday.
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808f064bc7e92bc86f01d1d0b1c6585e | https://www.cnbc.com/2015/02/12/the-valuation-industry-is-now-big-business.html | The valuation industry is now big business | The valuation industry is now big business
VIDEO2:4102:41Ever wonder how much your business is worth?Squawk Box Europe
Online valuation services have become indispensable tools for consumers when house-hunting or checking their credit scores, and now the service is being used to help small and medium-sized enterprises work out their value.
Consumers on the hunt for a decent credit card deal or mortgage have long since been able to access their credit scores using services such as Experian for as little as £15 ($20) per month, but for an unlisted business, fees of around £5,000 along with a six-week wait are the norm when looking for a valuation.
Experian, one of the largest credit scoring agencies in the world, has seen its share price climb around 10 percent in the last year,but the group said it was demand from corporate customers, not consumers that is pushing growth as the stabilizing economy has helped customers in their search for personal finance products.
Read MoreHow to crack the mobile payments market
Newly launched in the U.K. this week at finance technology event Finovate, online business valuation service Bizequity aims to crack the U.K. small and medium-sized enterprise (SME) valuation market in the next two years, building on its 200,000 strong user base worldwide.
Launched in the U.S. by venture capitalist Michael Carter in July 2010, the online valuation platform allows company owners to work out the value of their business, with monthly fees starting at £40 ($60) per month.
"There are around 1.8 million small businesses in the U.K. Wewould love 10,000 SMEs using our product in the next 24 months," Carter told CNBC.
Carter said he was also in talks with credit scoring agencies on using BizEquity's tools to deliver a business to business (B2B) version of a risk and credit score, in an effort to "repurpose the credit score for the B2B market".
aphrodite74 | Vetta | Getty Images
Another competitor in the business space is recently launched DueDil, which is now the largest source of private company information in the U.K. and Ireland and has attracted attention for a large number of FTSE 100 listed companies as well as private firms.
The U.K. start-up launched in 2011 raised $17 million last year, led by U.S. based Oak Investment Partners, bringing the total invested in the company to around $23 million in the last year.
DueDil founder Damian Kimmelman said he plans to keep offering much of the service free of charge, with the company introducing premium services such as document printouts, but the vast majority of users still use its data for free.
Read MoreGoogle Wallet to pull plug on digital purchases
"Imagine if in the real estate market in London there was no value put on any property, it would be mass chaos," said entrepreneur and author Daniel Priestley.
"That is what has happened for hundreds of years for actual businesses and their owners. The 99 percent and 1 percent problem for entrepreneurs has been around knowledge of what their business is worth," he said.
BizEquity, while smaller has recently secured £3 million in investment from private equity group Frost Brooks, which is helping fuel the firm's expansion into the U.K.
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1443e169c8b461130065d6aae959a79a | https://www.cnbc.com/2015/02/13/a-conversation-everyone-should-have-and-too-often-dont.html | A conversation everyone should have—and too often don't | A conversation everyone should have—and too often don't
Want to reduce cases of doctors desperately trying to save the lives of people on the verge of dying despite them not wanting such aggressive treatment? Stop paying for it.
That's the somewhat radical idea of a Harvard Medical School doctor who is trying to change the way his physician brethren—and their patients—deal with often difficult end-of-life issues.
"Hospital systems should not be paid for medical care that is delivered to patients that is documented that they never wanted," said Dr. Angelo Volandes. "When people get care at the end of their life they just don't want, that's a medical error."
Volandes might have a tough time gaining widespread acceptance for the idea of withholding payments—a least for now. But after watching patients receive treatments that do little beyond delaying the inevitable, he is waging a crusade to get people and their families to have what he calls "The Conversation," a frank discussion about death, and how much or how little effort they want from doctors to keep them alive when they're terminally ill.
Tomas Rodriguez | Getty Images
Volandes' new book, "The Conversation," lays out what he calls "a revolutionary plan for end-of-life care" that could save seriously ill patients and their families unnecessary physical and emotional pain from the use of extreme lifesaving measures.
"Without this open conversation about death, patients are traumatized needlessly, leaving their families with the emotional scars of witnessing the hyper-medicalized death of their loved ones," Volandes wrote in his book.
Read MoreThe case of the 'anti-vaccine elitism'
"Fifty years ago, most people died at home surrounded by their loved ones; most deaths today occur in health care institutions where patients are surrounded by strangers. By most accounts, this transformation of death from a natural process occurring at home has been disastrous," he said.
The book's dust jacket ominously notes that, "Two-thirds of Americans die in health care institutions tethered to machines and tubes at bankrupting costs, even though research shows that most prefer to die at home in comfort, surrounded by loved ones."
In addition to stories about actual patients in those situation, Volandes' book contains information about tools that people can use to take control over the treatment they receive or don't receive. Those tools include livings wills, which describe what kind of medical care you would want if you're unable to speak for yourself, and health-care proxies, which identify who will speak for you in such cases.
A 2013 study by Pew Research found that 35 percent of all adults reported having "put their wishes for end-of-life decisions into writing, whether in an informal document (such as a letter to a relative) or a formal, legal one (such as a living will or health care directive)."
But that same study found that 57 percent of adults said they would tell their doctors to halt treatment if they "had a disease with no hope of improvement and were suffering a great deal of pain. And 52 percent said "they would ask their doctors to stop treatment if they had an incurable disease and were totally dependent on someone else for their care."
In an interview with CNBC, Volandes said the need to have a conversation and to make decisions about end-of-life treatments "applies to anybody who has to deal with the health-care system, which is essentially all of us."
Normally, he said, "It takes a crisis for people to really wake up to it."
Getting more people to have this conservation could significantly reduce unnecessary health-care costs incurred toward the end of life to the tune of many billions of dollars, he said.
Spending on people in the last year of their lives is dramatically higher than on other patients. About $125 billion, or $1 out of every $4 spent by Medicare, the federal government health coverage program for the elderly, goes toward medical treatment toward the end of beneficiaries' lives.
That big number is particularly striking because only around 5 percent of Medicare beneficiaries die each year
That potential savings would only increase in coming years, said Volandes, citing predictions of a marked spike in the number of Americans with dementia, which would boost costs, as the population ages for his assumption.
In those cases, in the absence of advance planning by an individual and their family, Volandes said, "it's not going to be the patient making these decision, it's the family member."
He acknowledged that having a conversation about end-of-life measures such as cardiopulmonary resuscitation, and the consequences of not receiving it, does not come easily to many people.
"I think it's difficult for families because they don't know what might happen" to a loved one in the future, he said.
But waiting to discuss those issues until they actually need to be decided can make things worse.
"I think it's extremely difficult for families, because families are often forced into this position at the worst time," Volandes said. "And I blame doctors."
Volandes doesn't exempt himself from this finger-pointing. Doctors often know the treatment and procedures they are administering to terminally ill patients are ultimately futile, costly and the source of pain and stress.
Dr. David Goodman, a Dartmouth Medical School professor, in 2013 co-authored a study published in the Journal of American Medical Association that found that while there had been an increase in the use of hospice services over the prior decade, there also had been an increase in the use of intensive care units. The study found that while more people were going to hospice, many were going there just for a few days after being in the ICU.
Goodman has cited the case of his colon cancer-stricken sister, who died while undergoing a medical procedure just a day before she was supposed to enter hospice and spend her final days there.
"Poor communication leading to unwanted care is epidemic in many health systems," Goodman said at the time the JAMA report was issued. "The patterns of care observed in this study reflect needlessly painful experiences suffered by many patients, including my sister, and other friends and family members of the research team,"
Early in Volandes' book, he writes about being a young resident and treating a 78-year-old, terminally ill lung cancer patient, a mine worker and immigrant from Ukraine whose condition left him "too confused to have a lucid conversation," and who "lacked family members to guide his decision-making."
"So his medical plan was the default for all patients: Do everything possible to keep him alive," Volandes wrote.
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Volandes in his book writes about what was done to the man, whom he calls Taras, over a 48-hour period that began when Taras stopped breathing, and a "Code Blue" was called by his nurses.
Volandes gave the man CPR, during which "all I could hear and feel were the cracking of his ribs with practically each chest compression," he wrote. Soon afterward he stuck a long needle four times into the sac around Taras' heart in an unsuccessful effort to draw out fluid.
Once Taras was stabilized, Volandes said to an another resident, "I can't believe we just did all that to a man who has one foot in the grave."
The next day, when Volandes saw Taras, "he had a tube or catheter in almost every part of his body," Volandes wrote, and also had had a hole cut into the wall of the sac around his heart so that fluid wouldn't build up.
Over the next two days, Taras' heart stopped three more times and, miraculously, the ICU team had bought him back each time. But ultimately he died 48 hours after the first Code Blue was called.
"Whatever the next new fix is, nature eventually takes her inexorable course," Volandes wrote.
Volandes, in an interview, said, "I hope people become outraged when they read about some of the stories," which detail other cases of extreme lifesaving measures applied to terminally ill patients.
But Volandes is also hoping that doctors' behaviors change, and that they go out of their way to discuss end-of-life treatments with their patients and their families long before a crisis point is reached.
"When I look at some of these doctors, some of my colleagues who have 10 years out of medical school, they weren't trained to have this conversation," Volandes said. "They were trained to be 'the medical expert.'"
"More often than not, the doctor's not going to bring it up," Volandes said.
Read MoreMany are leaving Obamacare money on the table
Doctors are uncomfortable discussing the topic, he said. In his book, he writes about himself at times having used medical jargon that obscured the fact that there was no hope of a patient surviving her disease.
During talks he gives on the subject at hospitals around the country, he said, families of patients who received lifesaving treatment even as they were in their last days often weep as they "say how horribly we as a health-care system failed them."
For Volandes, part of that practice includes his work for the nonprofit group he co-founded, Advance Care Planning Decisions, whose services include a series of videos with the purposes "of educating and improving decision-making for all patients."
Since 2013, the Hawaii Medical Service Association has been operating a program that uses the group's nearly 50 videos at all of that state's hospitals and hospices as well as most of Hawaii's skilled-nursing facilities. The program has led to an increase in the number of patients who fill out advance-care planning documents and who opt for hospice care.
Data provided to CNBC shows that at the Hilo Medical Center in Hawaii, the percentage of seriously ill, "last-stages" patients who filled out a form indicating their medical care wishes was less than 5 percent at the end of 2012, right before the videos were introduced.
When the videos began being used by nurses and social workers while talking to patients about their wishes, the percentage more than doubled in the first quarter of 2013, and later grew to as high as nearly 45 percent of all such patients by the middle of 2014.
Similarly, just over 5 percent of last-stages patients were referred to hospice care in the time period right before the videos started being used. There was a significant increase in the number of such patients going to hospice after the videos were introduced—by mid-2014 about 22 percent of such patients received a hospice referral.
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f74898868bc140232fe3531b08e2b498 | https://www.cnbc.com/2015/02/13/att-ceo-warns-fcc-and-obama-over-net-neutrality.html | AT&T CEO warns FCC and Obama over net neutrality | AT&T CEO warns FCC and Obama over net neutrality
VIDEO3:3003:30AT&T CEO on FCC's net neutrality planSquawk Box
The newly proposed net neutrality rules by the Federal Communications Commission (FCC) amount to regulation of the Internet that would stifle growth and innovation of online services and technology solutions, AT&T Chairman and CEO told CNBC.
Stephenson said in a "Squawk Box" interview that aired Friday that he supports the original idea of net neutrality, which set out to preserve a "free and open Internet ... without any blocking and without any prioritization." But he argued, "We have now, under the president's urging with the FCC, moved from pursuing a free and open Internet to regulating the Internet end to end."
Last week, FCC Chairman Tom Wheeler announced a plan that would put Internet service in the same regulatory camp as the telephone. Using Title II of the 1934 Communications Act, the agency would be given broad authority to ban providers from manipulating online content. Wheeler said he believes his approach would not discourage industry investment, because he'd withhold enforcement of sections of the law that don't apply to broadband, and he won't try to regulate industry prices.
AT&T's Stephenson disagrees—saying Wheeler's approach would put the industry in a "big moment of uncertainty and lack of clarity."
If these rules were adopted, he warned there would be litigation, with the industry probably "asking for a stay" to prevent them from going into effect.
"It's hard to put in something like this and then undo it," Stephenson said. "Title II services are taxed differently. Are we going to tax the consumer immediately for these? Are we going to wait for rulings?"
Stephenson said the courts have in the past overturned the FCC, "as recently as 2004 when some of the broadband rules were thrown out by the courts."
VIDEO1:4001:40AT&T CEO: How to shore up cyber security Squawk Box
Another hot-button technology issue, hacking, is taking center stage at Friday's presidential cybersecurity summit at Stanford University. President Barack Obama is set to sign an executive order there, aimed at encouraging companies to share more information about online threats with the government and each other. Google, Facebook, and Yahoo are not sending their chief executives to the conference, but Apple CEO Tim Cook is scheduled to address the gathering.
Stephenson won't be attending the conference, but he expressed concerned in his interview with CNBC about the threat posed by hackers. "Everything we've seen over the last couple of years from Home Depot to Sony, the issue is real now," he said. "It's a major problem not just for business but for national security. I think the implications are that significant."
But for public-private sharing to work, Stephenson said, "Congress is going to have to step up to provide liability protection for companies because that's a big issue for companies that are exchanging information with the government."
—Wire services contributed to this report.
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84b62b5e4653e25ab873095d56b8f1b4 | https://www.cnbc.com/2015/02/13/storm-is-coming-russians-still-fear-crisis.html | 'Storm is coming': Russians still fear crisis | 'Storm is coming': Russians still fear crisis
As Russia's economy continues to struggle amid swingeing sanctions, oil price declines, a weak ruble and rampant inflation, ordinary Russians are feeling the pinch – with some believing the crisis hasn't even started yet.
Russia's economy has been hit hard by and sanctions imposed on the country for its part in the Ukraine conflict. This, in turn, has caused the currency to weaken 90 percent against the dollar over the last 12 months, further pushing up the rate of inflation which stands around 11.4 percent.
To top it all off, Russia's economy is expected to enter recession this year, but one Moscow-based economist told CNBC that the crisis hadn't even started yet.
Sasha Mordovets | Getty Images
"We are on the edge of crisis, we're close but we're not yet there," Vladimir Tikhomirov, chief economist at Russian financial services firm BCS Financial Group, told CNBC.
"I can say that we have not yet seen the full effect of the economic crisis – redundancies, closing businesses, rising non-performing loans – we haven't seen those things yet but that's not to say it's not coming," he warned.
Read MorePutin says leaders have agreed on Ukraine cease-fire
"This is the calm before the storm, we know the storm is coming it just depends on how severe it is."
Russia's economy has undergone a radical tranformation from the days when it was a jewel among emerging markets. In 2015, the economy could shrink by as much as 5.5 percent, however, according to ratings agency Moody's, a far cry from the 5.6 percent growth seen back in 2008.
Against such a backdrop of shrinking growth, Russian businesses are nervous, Tikhomirov warned, although he said that they were largely powerless to change both external factors – such as the oil price decline or global slowdown -- and internal factors such as President Vladimir Putin.
"The business world is worried and concerned. It's a very challenging situation to put it mildly but a lot of the risks are not in the economy are in politics and geo-politics and that has an effect on the prospects of doing business in Russia."
"Generally, the business sector cannot do much about that -- there's not much influence they can have on politicians," he said.
Self-employed Stanislav Sergeev, who works with start-ups in Moscow and St Petersburg, says he currently has no work now and that he and other business owners are worried.
Read MoreHow long will THIS Ukraine cease-fire deal last?
"I can tell you about atmosphere and mood in Moscow and Saint-Petersburg and yes, we worry about all these things. Some of my friends who are owners of businesses have started to reduce the amount of employers by 50 percent and to reduce their income by 70 percent," Sergeev told CNBC Thursday.
He said that Russians were having to spend more of their money because of the devaluation in the ruble and warned that as the domestic market starts to collapse, and as more people become unemployed, "Therefore we expect a rise in criminality."
Russia's leaders have been keen to absolve themselves of responsibility for the economic crisis, blaming the decline in oil and "external factors," as Putin called them, for the crisis. That Russia needs to change is already recognised by the country's government, however.
Russia's Finance Minister Anton Siluanov told CNBC last week that reforms were desperately needed in order for Russia to recover, recognizing himself that the country was in "dire straits" economically.
Read MoreRussia in 'dire straits' and needs reform: FinMin
"This situation is not the result of (economic) sanctions but the result of the stupid management during 20 past years," Sergeev told CNBC,
Economist Tikhomirov added that commodity-dependent Russian economy needed to change in order for it not to be held "hostage" to fluctuations in the oil price which has fallen by around 50 percent since June last year.
He added that reforms designed to move Russia away from its reliance on oil were also slow moving. "Reforms are spoken of but little is done…Today Russia has a developed financial sector, automotive sector and these are sectors that have seen progress but the economy is still largely commodity driven and this needs to change."
The depth of the crisis depended on two factors, Tikhomirov said: whether the oil price recovers and whether there was a peaceful solution to Ukraine conflict.
Russia has had sanctions imposed on its economy for almost a year by the west for its incursions into Ukraine, which have added to its economic downturn.
Global stock markets advanced Thursday on news of cease-fire deal between Russia and Ukraine following months of escalating violence between pro-Russian rebels and the Ukraine military.
Speaking on Russian TV, Putin said the agreement would mean the removal of heavy weapons and a full cease-fire from midnight on February 15. However, given that a previous cease-fire has failed, analysts questioned how long this deal would last.
Sergeev summed the attitude of him and his friends, telling CNBC: "We hope that everybody switches on their brains and this situation returns to one of partnership (between Ukraine and Russia)."
However, Ukraine's rebels disavowed a new truce on Sunday, Reuters reported, hours after it took effect, saying it did not apply to the town where most fighting has taken place in recent weeks.
- By CNBC's Holly Ellyatt, follow her on Twitter @HollyEllyatt. Follow us on Twitter: @CNBCWorld
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af03dca457900c4e01d305c78a55857f | https://www.cnbc.com/2015/02/13/war-of-the-roses-main-street-florists-battle-against-start-ups.html | War of the roses: Main Street florists battle against start-ups | War of the roses: Main Street florists battle against start-ups
VIDEO1:4901:49War of the roses: Main St. vs. e-commerce this Valentine's Day
This year Americans will spend $2.1 billion on flowers for Valentine's Day alone. But the battle for holiday-related spending is getting fiercer than ever as small business florists face increasing competition from e-commerce players and big box retailers.
While overall spending on flowers has remained stable, smaller florists have seen sales slide nearly 40 percent in the past few years to $5.9 billion in 2014 from $9.4 billion in 2006, according to IBISWorld, a global research firm. Large e-commerce players have been in the space for years, including FTD, 1-800-Flowers and ProFlowers. Now supermarkets and big retailers are getting in on the flower action, says James Chartier, an analyst at Monness, Crespi, Hardt & Co., a boutique equity research firm in New York City.
"Over the last few years, the entry and expansion of big box retailers like Wal-Mart and supermarkets has likely had a much bigger impact on smaller florists," said Chartier in an email to CNBC. "The shift of floral sales from florist shops to online is mostly complete so online florists are only growing at a slightly faster rate than the overall market."
Read MoreWhich city spends the most for Valentine's Day?
Shop owner Frank Delli Santi in Caldwell, New Jersey, has been in business for 30 years and counting.Brad Quick | CNBC
Caldwell Flowerland, a mom-and-pop florist in Caldwell, New Jersey, has been in business for 30 years, and has seen some sales taper off amid new competitors. But shop owner Frank Delli Santi says there's a silver lining.
"It took a little dip, but it also educated customers about where to come back to," says Delli Santi, adding his in-person service keeps customers coming back.
And the flower space continues to grow with more players. AngelList, which compiles start-up data, says there are 30 new flower businesses in the U.S. alone including BloomThat and UrbanStems, which delivers flowers on demand in select cities within hours, for around $35.
And this year Whole Foods is partnering with grocery delivery start-up InstaCart in 15 cities to deliver flowers on demand for $25, plus an delivery fee.
Despite more competition from e-commerce players, Caldwell Flowerland in New Jersey keeps customers with quality service.Brad Quick | CNBC
Despite the new players in the space, Delli Santi argues that his competition is missing one asset he has: a personal touch. For example, he hosts parties in his flower store to offer customers an in-person sense of his inventory.
"We try to keep an all-year-round price, as well as consistency and quality," he said.
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5bde65a3a9b3be1d64711b06ce26f91c | https://www.cnbc.com/2015/02/13/what-is-russias-vladimir-putin-playing-at.html | What is Russia's Vladimir Putin playing at? | What is Russia's Vladimir Putin playing at?
VIDEO3:0803:08Russia-Ukraine peace deal 'opaque': Ex-diplomatSquawk Box Europe
As the dust settles on the newly-signed peace deal between Ukraine and Russia, European leaders and experts are already questioning Russian President Vladimir Putin's motives.
The deal, agreed on Thursday following 16 hours of negotiations, involves a cease-fire from February 17. Leaders also agreed on the withdrawal of heavy weaponry from the east Ukraine region, prisoner exchanges and constitutional reform by Ukraine to give certain regions more autonomy.
Less than 24 hours after the cease-fire was signed and 48 hours before it was due to start there were reports from the BBC of shelling in the Donetsk region in Ukraine.
Read More'Storm is coming': Russians still fear crisis
Russian President Vladimir PutinSefa Karacan | Anadolu Agency | Getty Images
The former British ambassador to Russia told CNBC Friday said the deal was a strategic move by President Putin, and "very opaque and open-ended."
"A pause now suits (Putin)," Andrew Wood told CNBC Europe's "Squawk Box."
"Perhaps he thought things were in danger of getting out of control; perhaps he feels he's got enough. But what he's achieved is a continuing hold over the form of government that exists in Kiev, and a significant hold over a part of Ukraine."
The ex-diplomat added: "I wouldn't say that this deal is in any way a defeat for Putin."
He also stressed that one of the deal's key provisions -- the closure of the border between Russia and Ukraine – would not happen until the end of this year, if all the conditions were fulfilled.
Read MoreHow long will THIS Ukraine cease-fire deal last?
"So there's every reason to suppose the Russians will just continue to boost their allies in the region," he said.
It is important for the West to keep open the option of supplying defensive armaments to Ukraine, "as and when the Russians break their word," Wood added.
VIDEO1:3001:30Stubbs: Seeing more Russian state control
Despite helping to broker the peace deal alongside her French counterpart Francois Hollande, German Chancellor Angela Merkel said Thursday that European officials were preparing fresh economic sanctions against Russia in case the truce did not hold.
It could be a case of once bitten, twice shy: an earlier cease-fire failed to keep to peace, and fighting between pro-Russia separatists and the Ukraine military in the east of the country resumed in September last year.
European Council President Donald Tusk said Thursday that the region's leaders were wary of the accord.
"We are very cautious after a bad experience with the so-called 'Minsk 1' peace deal so it's obvious you have to be very cautious," he told a press conference after a European Union summit. "Our trust in the goodwill in President Putin is limited -- this is why we have to maintain our decision on sanctions."
Following the summit, Finnish Prime Minister Alexander Stubb told CNBC Thursday that Russia risked being left out in the cold if it did not abide by the deal.
"If Putin doesn't grab the hand of peace at this stage I think we'll be in this for the long haul," he said.
"We're 25 years into the end of the Cold War and we've felt that Russia should have become more international and part of the international community. If they now reject this peace deal I think they'll be out in the cold for a long time."
Stubb warned that "the ink is not dry" on the deal, which might not even be implemented. "I see a glimmer of hope but I'm not confident this will last," he said.
- By CNBC's Holly Ellyatt, follow her on Twitter @HollyEllyatt. Follow us on Twitter: @CNBCWorld
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cc0464564f78e51945ccdff92f8d7a94 | https://www.cnbc.com/2015/02/15/oil-near-62-on-libya-violence-kuwait-sees-prices-supported.html | Oil near $62 on Libya violence, Kuwait sees prices supported | Oil near $62 on Libya violence, Kuwait sees prices supported
Pumpjacks operating near Ruehlermoor, Germany.Getty Images
Oil rose to near $62 a barrel on Monday, supported by concerns over the escalating conflict with Islamic State militants in Libya and predictions of lower supply levels in the second half of the year.
Egypt's air force bombed Islamic State targets inside Libya on Monday and Cairo renewed calls for a U.S.-led coalition to confront militants there, a day after the group released a video appearing to show the beheading of 21 Egyptians.
"The geopolitical risk is not something to write off," said Olivier Jakob, oil analyst at Petromatrix in Zug, Switzerland.
Libya's oil production has mostly shut down, falling to 350,000 barrels per day (bpd) from 1.6 million bpd before the 2011 ousting of leader Muammar Gaddafi.
VIDEO5:1605:16Short squeeze ahead for oil stocks?Options Action
The El Sarir oil field was still unable to pump oil on Monday after a pipeline was attacked and set on fire.
Further supporting the market, Kuwait's oil minister said oil prices would continue to rise in 2015 as supply levels fell.
"Hopefully in the second half of 2015 we will see better prices," said the minister, Ali al-Omair.
Benchmark Brent futures traded at $61.93 a barrel, up 41 cents, by 1257 GMT. U.S. crude was up 20 cents at $52.97 a barrel. Trading volumes were reduced as U.S. markets remained closed for a public holiday.
Read MoreIs it time to get back into energy bonds?
Oil markets rose strongly last week after another drop in the U.S. rig count, pushing Brent back above $60 a barrel for the first time since December.
The price of Brent crude has increased by more than 30 percent since January, supported by signs of lower oil industry spending. In January it hit $45.19, the lowest in almost six years, down from $115 last June.
Kuwait's Omair said the current oil surplus was now "definitely lower" than 1.8 million barrels per day.
"The big guessing game is whether we are now moving to a range from $60-68, or whether we're about to turn south again and head back below $60 or possibly $50," said Jeffries oil broker Christopher Bellew.
The loss of output from Libya comes as Iraq's southern oil exports have fallen sharply to below 1.5 million bpd in the first two weeks of February, shipping data tracked by Reuters showed.
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c269e397250734d1a10751df49f3fa73 | https://www.cnbc.com/2015/02/17/can-greeces-rebel-leader-rescue-the-nation-from-default.html | Can Greece's rebel leader rescue the nation from default? | Can Greece's rebel leader rescue the nation from default?
VIDEO1:4701:47Where Greek talks go from here
VIDEO3:0203:02Cramer: Take Greece talks with grain of saltMarket Outlook
VIDEO1:0301:03Greece won't exit: SiegelSquawk Box
When newly elected Greek Prime Minister Alexis Tsipras returned to Athens from his trip to Brussels last Friday, he discovered an envelope stuffed with 575 euros in cash on his desk. Stumped, he reportedly asked his aides what the money was for and was told that it represented typical reimbursement for per diem expenses for trips abroad. "You're kidding," he responded. And then, according to news reports, he promptly returned the money.
His action is a signature Tsipras move. Ever since his election in late January, the country's youngest prime minister ever—he's only 40—is telling long-suffering Greeks exactly what they want to hear: Things are different now; the era of austerity is over. The new Greek government, led by the radical-left Syriza, has turned the page and will weed out corruption domestically and tear up and renegotiate the stern terms set by the beleaguered country's creditors for its $270 billion bailout.
"After five years of bailout barbarity, our people cannot take any more," the leftist leader, branded a rebel by the international press, told the 300-member parliament.
Greek Prime Minister Alexis Tsipras, left, speaks with French President Francois Hollande before a meeting as part of the European Council Summit at the European Union Headquarters in Brussels, Feb. 12, 2015.Alain Jocard | AFP | Getty Images
Although Greeks are worried about the uncertainty ahead, they seem to love what they are hearing; polls show that Tsipras is enjoying approval ratings of as high as 80 percent.
But whether he can deliver on his promises, at least in terms of coming up with anew deal for Greece from its creditors, remains to be seen. For the second time in two weeks, talks between the Greek government and the Eurogroup to reach an agreement on how to move forward before the terms of the bailout expire on Feb. 28 ended in an impasse on Monday.
Fears that Greece will be forced to leave the Euro zone are stirring once again—and markets once again slid. "We must be logical and not ideological," scolded the EC's Commissioner for Economics and Financial Affairs Pierre Moscovici at a news conference in Brussels after Monday's talks broke up.
In response, Tsipras and his iconoclastic finance minister, Yanis Varoufakis, now infamous for their unorthodox tie-less fashion sense, insist that the whole package needs to be renegotiated from the beginning—and a bridge loan granted until that happens. A request for an extension of the existing agreement, what the Europeans want, said Varoufakis, is out of the question.
For now the duo seems to be plowing ahead aggressively, even recklessly, some say, with their agenda. "They are playing a very high-stake game of poker," said Marios Evriviades, professor of international relations at Panteion University.
At the moment, it isn't clear who has the stronger hand. Some observers view Tsipras' tactics as a shrewd show of brinksmanship; others say the tough-guy approach is foolish and bound to fail. Whether the turn-Europe-upside-down approach will work in the long run and result in a compromise of some sort that will save face for both Greece and its European partners or end in disaster is anybody's guess.
Economic realities may make Tsipras soften his stance as they sink in. Indeed, the government's January tax revenues were off by 20 percent, raising real fears that Greece may not be able to pay its bills come the end of the month. Nonetheless, Tsipras seems determined to stand by the mandate for change that Syriza received from Greece's electorate.
"His is a leadership of principled rebellion," said Nikolas Katsimpras, an adjunct lecturer at Columbia University's School of Continuing Education Negotiation and Conflict Resolution program. "He wants to stand up and disrupt the status quo. This is what he thinks he's doing, at least, but that is different than whether he is actually doing it."
So far, Greeks don't seem to mind either way. They just seem happy that someone is sticking it to the Europeans. In the last two weeks, thousands have turned up at rallies to support Tsipras and his government in Salonika and Athens—and in other cities around the world, including Paris, where "Je Suis Syriza" posters popped up.
"The public loves it because they have been feeling humiliated," said Alexis Papachelas, the editor of Kathimerini, a leading Greek daily newspaper. "They love that he's raising his voice against the Germans and Brussels."
Read MoreGreece: Who wants what and why
But Tsipras, a state-educated civil engineer, is hardly a firebrand. He speaks softly, slowly, carefully crafting his sentences and delivering them in a serious, calm tone. As demonstrated during his first address to parliament.
He almost seems Zen-like, keeping his cool amidst the chaos. He doesn't bellow or wildly flap his hands. He doesn't spew slogans in rapid-fire fashion, either. Instead, his oratorical cadence is measured, deliberate, reminding many political observers of legendary political maverick Andreas Papandreou, the socialist leader who served as prime minister in the 1980s.
He is anything but careless. Quite the contrary, he is very calculated and believes he has a mandate from his people.Mike MyattCEO coach and author of several books about leadership
"He's not an explosive personality like Andreas, but he sounds like him," adds Papachelas. "He's quiet—someone who really thinks about his next move. He's not a very spontaneous man."
This is a self-assured rebel with a velvet voice who carefully considers every word he delivers. Each move he makes is loaded with symbolism. He delivered his victory speech from the steps of the University of Athens, a more populist spot than the more sedate traditional setting of the Zappeion, a formal ceremonious building in the heart of Athens. Among his first actions: He solemnly laid flowers at a World War II memorial to fallen leftists and ordered the removal of the concrete barricades in front of parliament.
And when he and radical economist Varoufakis' hit the international circuit on a whirlwind tour of Europe last week to make their case for a new deal, their brash approach, even the casual way they dressed, seemed to make a statement to the world that this was not going to be politics as usual anymore.
Read MoreGreece's Twitter diplomacy
Diplomats these men are not. They behaved like scrawny little boys throwing a tantrum in the playground so the big boys would notice. "It's been more of a show than anything substantive," said Nicholas Economides, an economics professor at New York University's Stern School of Business.
But the tactic worked, at least as a public relations maneuver. Suddenly not wearing a tie became a badge of political cool, and the two men became darlings—the dynamic duo, if you will—of the European left. A British paper even called Varoufakis—who showed up for his meeting with his British counterpart wearing a black leather coat and an untucked open-collared blue shirt—"a rock star."
In many ways, Varoufakis is playing Robin, to Tsipras's Batman. And for the moment, Robin seems to be front and center and drawing the most headlines. Tsipras, in contrast, comes off as a mild-mannered, soft-spoken leader with an innocent smile. European Parliament Chairman Martin Shulz even playfully teased him in front of the cameras as if he were a naughty little boy for not wearing a tie.
One expert, management and leadership professor Robert Bontempo of the Columbia Business School, said it's all part of a brilliant political strategy. "It's called mad-man theory," said Bontempo, who predicted Varoufakis's time in the spotlight will be short-lived. "If I were Varoufakis, I wouldn't quit my day job. He will be the sacrificial lamb. Tsipras will blame him if the plan fails, and then it will allow him to be perceived as the more reasonable one."
It may be too early to tell if Tsipras is going to be a daring caped crusader with principled convictions determined to carry out his promises for change or if he will be a bold, reckless leader with a high threshold for risk. Perhaps he's just a shrewd political player willing to let his partner, Robin, take the bullet for him in order to achieve the seemingly impossible and come out the hero.
One thing is certain, however. Greece, for the moment, at least, is in the hands of a skilled politician, albeit an inexperienced one. "He is anything but careless. Quite the contrary, he is very calculated and believes he has a mandate from his people," said Mike Myatt, a CEO coach and author of several books on leadership. "He is committed to his values, and he is a leader with a vision and a plan. All that remains to be seen is whether he can deliver the goods."
At this point, Greeks can only hope that he will.
—By Dody Tsiantar, special to CNBC.com
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b48a29df9964db146d91d54d79840405 | https://www.cnbc.com/2015/02/17/new-york-fashion-week-fall-2015-highlights.html | New York Fashion Week fall 2015 highlights | New York Fashion Week fall 2015 highlights
Models walk the runway during the Nicole Miller fashion show in New York.Adam Jeffery | CNBC
Sayonara, Lincoln Center.
After serving as home base for New York Fashion Week over the past five years, the venue started its swan song on Thursday, when the collections kicked off their final performance on Manhattan's Upper West Side.
They did so in style. Elaborate beading and embellishment, metallics and '70s-inspired looks traipsed down the runways, in front of star-studded celebrity front rows. The shows were yet again accessorized with tech-infused collaborations, including the use of GoPros backstage and on the runways.
"We really wanted to give customers sort of three different points of view," said designer Rebecca Minkoff, who used the pint-size cameras to let fans experience the show from the front row, backstage and on stage with the band.
For your own 360-degree view of New York Fashion Week, click ahead.
—By CNBC's Krystina GustafsonPosted 17 Feb. 2015
Models walk during rehearsals for the Tommy Hilfiger Fall/Winter 2015 collection presentation during New York Fashion Week, Feb. 16, 2015.Andrew Kelly | Reuters
Bummed that football season is over? Tommy Hilfiger has you covered. The American design icon tapped into one of the country's favorite pasttimes with a sporting-enthused collection.
Hilfiger sent the theme home by having models walk on a runway crafted in the likeness of a football field. Here, models do a run-through ahead of the show.
Models walk the runway at the Oscar De La Renta Fall 2015 fashion show during New York Fashion Week, Feb. 17, 2015.Getty Images
It was a bittersweet affair at Oscar de la Renta, whose namesake designer died in October.
Former Nina Ricci designer Peter Copping made his runway debut with the ultra-feminine label, showing luxury pieces that could be worn day-to-day, as well as voluminous gowns.
Models walk the runway at the Tory Burch Fall 2015 fashion show during New York Fashion Week, Feb. 17, 2015.Getty Images for Tory Burch
Tory Burch's fall collection took a page from London bohemia. The clothes featured a combination textures, patterns and embellishments, and played on both the masculine and feminine.
Models walk the runway during the DVF fashion show in New York.Gerry Hanan | CNBC
Celebrity-hungry viewers didn't have to wait long to satisfy their craving at Diane von Furstenberg's show. Burgeoning model Kendall Jenner, best known for being a member of the Kardashian clan, was the first model to walk down the runway.
Wearing a slinky white dress, the 19-year-old reality star set the tone for a sensual show, which von Furstenberg dubbed "Seduction."
Models walk the runway at the Michael Kors Fall 2015 fashion show during New York Fashion Week, Feb. 18, 2015.Getty Images
American sportswear designer Michael Kors played off the idea that opposites attract, pitting romantic against tailored and night vs. day. He incorporated olive and chocolate hues into his lineup.
Karlie Kloss walks the runway during the Carolina Herrera fashion show in New York.Getty Images
Model Karlie Kloss closed the show at Carolina Herrera's fall show, which wasn't short on the classically elegant looks the designer is known for.
The celebrity sightings weren't limited to the runway. "Glee" actress Dianna Agron attended the show, as did Ivanka Trump.
Models pose during the Kate Spade presentation during Fashion Week in New York.Adam Jeffery | CNBC
In contrast to Kate Spade's spring collection, which celebrated the outdoors by lining the floors with real grass, the fall collection focused on the "craving for indulgence" indoors. Creative director Deborah Lloyd transformed the set into a hotel lounge, where she showed layered looks with plaids and flannels. Staying true to the brand's feminine heritage, she also featured soft pink pieces.
"I love seeing it all come together," Lloyd said. "You work so hard on each individual piece, whether it's the handbags, the ready-to-wear, the shoes, but it's a really special moment when you finally see not just one outfit but the 30 come together."
Models walk the runway during the Rebecca Minkoff fashion show in New York.Adam Jeffery | CNBC
Rebecca Minkoff has a way with young shoppers. That's why she makes an effort to design her pieces at an array of price points.
"She's buying high and low," Minkoff said. "So if I can be that person that she comes to four times a year to refresh her wardrobe then that's perfect."
For her fall collection, Minkoff tapped into a late '60s and early '70s vibe, which showcased a "diversity of texture and richness." The rock-inspired looks included shearling jackets, mixed prints and textured knitwear.
Models Lindsay Ellingson (L) and Coco Rocha attend the Rebecca Minkoff fashion show in New York.Adam Jeffery | CNBC
Shutterbugs were whipped into a frenzy when they spotted Victoria's Secret model Lindsay Ellingson front row at Rebecca Minkoff's show. The designer set the mood for her collection by again foregoing a traditional DJ-spun playlist for a live band.
Models pose at the Alice + Olivia by Stacey Bendet Fall 2015 presentation during New York Fashion Week, Feb. 16, 2015.Getty Images
Alice + Olivia's Stacey Bendet drew on the fashion and décor from the late '60s and early '70s for inspiration. She featured dark jewel tones, including greens and shades of merlot, and incorporated lace details, embroidery and beading.
"It is about bold femininity," she wrote in the show notes.
Models walk the runway during the Tadashi Shoji runway show at MBFW Fall 2015 in New York.Gerry Hanan | CNBC
Watching Tadashi Shoji's fall show, you could almost smell the red carpet. The popular celebrity designer, known for his ethereal gowns, was inspired by the "joy of flight" for fall. Cue the breezy eveningwear, metallic embroideries and embellishments.
Models walk the runway during the BCBG MaxAzria show during MBFW Fall 2015 in New York.Gerry Hanan | CNBC
Lubov Azria, who helms design for BCBG Max Azria, was inspired by her travels to Barcelona, Estonia and Latvia for fall.
"You realize everything's still done by hand," she said backstage. "To be able to bring that to life and kind of remake it is amazing."
Models walk the runway during the Alexander Wang show at fashion week in New York.Gerry Hanan | CNBC
It was a blackout at Alexander Wang's fall show. The designer's collection was heavily seeded in the gothic hue, combat boots and all. Kim Kardashian, Kanye West and baby North West sat front row at the show, as Kendall Jenner walked the runway.
Models walk the runway during the Monique Lhuillier fashion show in New York.Adam Jeffery | CNBC
Monique Lhuillier's romantic collection put showgoers in the mood for love on the eve of Valentine's Day. The ladylike looks were heavy on jewel tones and metallics, which would fit in effortlessly on the red carpet. The crowd had even more time to ooh and aah over the looks, as Lhuillier positioned her models in forward-facing stadium-style rows after they walked the runway.
Models walk the runway during the Nicole Miller fashion show in New York.Gerry Hanan | CNBC
Nicole Miller partnered with GoPro for fall, giving fans an up-close look at her forest-inspired collection. She used dark greens and forest prints to evoke the mood.
The industry veteran, who has evolved her look from the huge dresses popular in the '80s to more of a body-hugging look, credited her ability to stay relevant to the fact that she always experiments. She admitted that as the years have gone by, she's become much more hands-off backstage.
"Before I used to double-check everybody," she said. "Now it's like, there's always just so much stuff going on, I never get to double-check anybody."
Getty Images
If J.Crew can do it, so can Banana Republic. After testing the waters at New York Fashion Week with its Old Navy and Athleta brands, Gap's Banana label debuted at the event for fall. It was the second collection under new creative director Marissa Webb, who has been charged with kickstarting the brand's sales.
Melloney Birkett, vice president of women's design, said the collection was about pushing forward the lifestyle aspect of the brand, "dressing her from the moment she gets up to the moment she goes to bed."
A model poses backstage at the Costello Tagliapietra fashion show in New York.Adam Jeffery | CNBC
A model poses backstage before walking the runway at Costello Tagliapietra's fall show.
Models walk the runway during the Richard Chai fashion show in New York.Adam Jeffery | CNBC
Speaking backstage before his show, Richard Chai was all about the outerwear. That included the brand's first foray into down coats, and other jackets that were heavy on layering. The collection spoke to the label's DNA, which Chai said, he never wants to feel uncomfortable or stuffy.
"My brand's always had this element of something that felt very casual and cool but at the same time refined," Chai said. "It's never had this precious attitude."
Models walk the runway during the Lacoste fashion show in New York.Gerry Hanan | CNBC
Lacoste and "prep" are practically synonymous. But it was clear from the first pulse of music, which cued a flash of lights that startled the crowd, that things would be a little edgier for fall.
The collection played homage to René Lacoste, former tennis player and the brand's creator, by infusing the phrase "René did it first" on many of the pieces. The goal? To create "a style with a strong heritage yet more-than-ever contemporary."
Models pose in winter gear during the Moncler Grenoble presentation at New York Fashion Week.Gerry Hanan | CNBC
The ski jackets shown by outerwear label Moncler felt more than appropriate, given the freezing temperatures in New York. Things heated up inside the show as models, who stood atop rising platforms, were lifted into the air.
Behati Prinsloo walks the runway during the Desigual fall 2015 fashion show on February 12, 2015 in New York City.Adam Jeffery | CNBC
Things are always sunnier at Desigual, and it was no different for fall. Victoria's Secret model Behati Prinsloo walked the runway for the brand, which used the crossroads between cultures as its starting point for the collection.
Models walk the runway during the Reem Acra fashion show in New York.Gerry Hanan | CNBC
"Embroidered" and "bejeweled" were the two biggest takeaways from Reem Acra's opulent collection. The designer channeled a bohemian gypsy for fall, incorporating a metallic sheen on her dresses.
Models walk the runway during the Custo Barcelona fashion show in New York.Gerry Hanan | CNBC
At Custo Barcelona, it was all about classic meets sultry. Designer Custo Dalmau's looks ranged from black-and-white plaids to colorful Aztec designs in fuchsia and blue. It was his latest take on contrasting the traditional and experimental on the runway.
Getty Images
Vivienne Tam took showgoers on a journey to the exotic Far East, as seen through the eyes of a European. She featured fine silks and hand-crafted embroideries on her designs, which came in colors including rich reds, blues and metallics.
Designer Dennis Basso poses with models backstage at the Dennis Basso Fall 2015 fashion show during New York Fashion Week.Getty Images for Mercedes-Benz Fashion Week
Fur fanatics have a thing for Dennis Basso, and the feeling is mutual. The designer topped nearly every one of his fall looks with one of his famous fur creations.
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b733b7113831e061ed4d5f1b641abbf6 | https://www.cnbc.com/2015/02/17/want-money-out-of-politics-stamp-it.html | Want money out of politics? Stamp it | Want money out of politics? Stamp it
VIDEO3:0703:07Stamping money out of politics
A Vermont-based nonprofit organization is presenting a new way for getting money out of politics: Stamp it.
"Stamp Stampede," which was started by Ben Cohen, co-founder and former CEO of Ben & Jerry's Ice Cream, sells stamps with messages like these: "Not to be used for bribing politicians." They can be legally stamped on U.S. paper currency, as it does not destroy nor deface it to the point it becomes unrecognizable, according to the group's website.
Cohen told CNBC's "Squawk on the Street" on Tuesday that it is part of a much larger movement. "Millions of Americans are fed up with a system that no longer represents them because of the big money that politicians are being paid as an investment by corporations," he said.
Read More Obama immigration policy halted by federal judge in Texas
Cohen also said his organization's message is already making its way across the U.S. "Every time you stamp a dollar bill and put [it] in circulation, 875 people see it. One person stamping three bills a day reaches 1 million people," he said. More than 30,000 stamps have been sold by Stamp Stampede, its website said.
Cohen added the group also aims to amend the U.S. Supreme Court's ruling in the Citizens United case. "We either need to change some justices on the Supreme Court, [or] pass national, state [and local] legislation," he said. "Fifty-four senators voted in favor of it last time around … and you need 66." Cohen also said 17 states have voted in favor of amending the U.S. Constitution and overturning the Citizens United ruling.
The 2010 decision by the high court allowed unlimited political expenditures by corporations and unions.
"The idea is that it's supposed to be one person, one vote; not one dollar, one vote. … We need to make [it] so that politicians are no longer beholding to those that pay them big money, [for example], the corporations [and] the unions," Cohen added.
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