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a8bd20929e745764e759ac32d8841b58 | https://www.cnbc.com/2015/09/10/apple-china-unit-underpaid-71-million-in-tax-in-2013.html | China says Apple unit underpaid $71 million in tax in 2013 | China says Apple unit underpaid $71 million in tax in 2013
The Apple Store in Grand Central Station in New York City.Mike Segar | Reuters
A China unit of U.S. tech giant Apple underpaid taxes in 2013 by 452 million yuan ($71 million), according to a report from the country's finance ministry, which comes as China toughens its stance on tax payments by foreign firms.
The Ministry of Finance (MOF) report, dated Sept. 9 but cited by official news agency Xinhua on Thursday, said Apple Computer Trading (Shanghai) had already repaid the taxes as well as paying 65 million yuan in late fees.
The investigation, however, underlines an increasingly hard stance being taken by Beijing against foreign firms underpaying taxes after authorities said in December they would crack down on the practice.
Read MoreIs the thrill gone for Apple investors?
A spokesman for Apple said, "During an audit of our 2013 operations, a difference in interpretation of a tax rule resulted in a balance due, which we paid with interest. We pay all the taxes we owe wherever we do business."
The finance ministry report said the Apple subsidiary had understated its revenues by 8.8 billion yuan and its costs by 3.4 billion yuan. It had also overstated its profits by 5.4 billion yuan.
China levied around $140 million in back taxes from Microsoft at the end of last year.
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79e954b2699ffec1fb9606bbfc541bd8 | https://www.cnbc.com/2015/09/10/how-pandora-thrives-in-music-industry-chaos.html | How Pandora thrives in music industry chaos | How Pandora thrives in music industry chaos
Tim Westergren, founder of Pandora.Source: Pandora
Ask Pandora founder Tim Westergren about his entrepreneurial odyssey, and you're bound to hear some version of this: "We really shouldn't be alive."
It's not hyperbole.
Two financial market meltdowns, a drawer full of maxed-out credit cards (11 to be exact), stringent regulations, severe limitations on international distribution and an exhaustive list of highly capitalized competitors are just some of the hurdles Westergren's online radio company have overcome in the past decade and a half.
Existential threats are as routine as breakfast. Oh yeah, and the music industry has at times seemed set on bleeding the company dry.
Read MorePandora's signs of strength
But with over 80 million monthly active listeners, Pandora is far from dead. In fact, take a peek at consumer trends, and you could make the case that it's beautifully positioned to benefit from the rapid convergence of mobile devices, streaming technology and content.
Pandora is the most popular music service in the Apple and Google stores and in the top 10 apps across all categories. Car companies are baking the Internet service into their multimedia dashboards, right alongside terrestrial radio. Connected TVs and Roku boxes include it by default as does the Xbox One.
That's the story of yesterday and today. But there's a new theme emerging, one that's quietly gaining resonance within the perennially stubborn music industry.
Instead of lining up to bash the service for the fraction-of-pennies per stream they get paid, artists are increasingly using Pandora as a way to communicate with fans, broadcast promotions and sell concert tickets.
Read MoreApple's music announcement hits Pandora... Again
In what can appropriately be described as music to Westergren's ears, the industry is starting to embrace his baby.
"I think we're moving out of an era where the music industry is looking for enemies and into one where it's now looking for allies," said Westergren, 49, who was chief strategy officer until last year.
At music festivals like Lollapalooza, South by Southwest in Austin and Outside Lands in San Francisco, Pandora is on site with photo booths, charging stations and streaming for fans unable to attend.
VIDEO2:0902:09Taylor Swift's Spotify digSquawk Alley
It's a message Pandora is loudly promoting and one that's at the heart of its 10-year anniversary celebration this week.
(The company was founded in 2000 as Savage Beast and sought to sell software for music store kiosks. The Pandora name and consumer streaming service were launched in 2005.)
A trained pianist and composer, Westergren created Pandora because of the challenges he and other musicians faced getting discovered.
The core of the service is the Music Genome Project, a collection of 100 musicologists who listen to songs and tag them with up to 450 characteristics to create a robust recommendation engine. When you give a thumbs up to John Legend's "You & I," the next song may be "If I ain't got you" by Alicia Keys. Or if you're a fan of TV On The Radio, you'll likely hear some Spoon and Radiohead.
Read MorePolitical ads flood Pandora before mid-terms
It's a costly model. In addition to all the human hours required to analyze 10,000 tunes a month, content is expensive. Pandora pays out close to half its revenue in the form of licensing fees, primarily through a deal signed in 2009 with SoundExchange, the entity that collects and distributes royalties for artists and copyright owners.
Even with 40 percent revenue growth and annual sales poised to top $1 billion, Pandora has racked up losses since its 2011 IPO, including $64.6 million in the first half of this year.
Not that artists have been sympathetic, often portraying the company as a culprit in the collapse of the recorded music business. Annual recorded music sales plunged to $15 billion last year from $40 billion in 1999.
I said we need to do something more like have a big Pandora bus going around the country.Jo Dee Messina, country singer
Cracker frontman David Lowery called out Pandora in 2013 for paying him all of $16.89, based on 1 million plays of his song "Low." Around the same time, Pink Floyd's Roger Waters criticized the company for waging a legal "campaign to cut the royalties paid for digital radio spins."
That was two years ago.
Pandora is now in a very different position. In June, Mumford & Sons partnered with Pandora to livestream a concert in Maryland, leading 1 million Pandora users to add a Mumford station. Earlier in the year, Pandora streamed a Jack White show from New York's Madison Square Garden, resulting in 700,000 station adds for White and a 41 percent increase in album sales after the event.
Read MoreHow to stand out at SXSW: Marketing gimmicks
Rising artists frequently show up at Pandora's office in downtown Oakland, California, for what the company calls Whiteboard Sessions. Country singer Jo Dee Messina popped in with her band on a toasty afternoon in late July to entertain over 100 employees. She was in town for a concert at the jazz club Yoshi's.
Messina, whose latest album was funded through a Kickstarter campaign, told the Pandora audience that she'd met with some company representatives at the Country Music Association festival a few weeks earlier.
They suggested she come in and perform ahead of her show. Messina was so taken by the outreach that she wanted to go bigger.
"I said we need to do something more, like have a big Pandora bus going around the country," she said at the start of her half-hour set.
Jo Dee Messina performing at Pandora’s headquarters in Oakland, California.Ari Levy | CNBC
While the idea was met with laughter, it's not so crazy. Last year, Pandora put on 79 live events, a number that's poised to rise to 120 this year for artists including Wyclef Jean.
Pandora's employee base has swelled to about 1,750, up from 1,300 a year ago.
Westergren's schedule is equally instructive. Rather than meeting with lobbyists in Washington, where he so often found himself in earlier eras, he now spends about half his time with artists, managers and labels, regularly hopping between Los Angeles and New York.
Read MoreApple Music plays defense
"I turned a complete 180," said Daniel Glass, founder of independent music company Glassnote, home to Mumford & Sons, Robert DeLong and AURORA. "I was very critical of Pandora in that I felt it was very one-way. They reached out with an olive branch and we've now become huge fans."
Glass attributes the evolution to a change in culture at Pandora. The company hired former Columbia Records executive Lars Murray last year to run industry relations. Jason Feinberg also joined Pandora as head of artist marketing after running digital strategy at independent label Epitaph Records.
There's another difference.
"They come to a lot of our shows," said Glass. "I never got a request from a Pandora person for five years. Now they have two to eight people coming to shows. That's engagement. That's partnership."
Pandora financials
Click to editDec '14Dec '13Jan '13Jan '12Jan '11Sales920.80654.79427.15274.34137.76Sales Growth (%)40.6253.3055.7099.14149.62Gross Margin (%)44.8340.5731.9337.5041.26Net Income-30.41-29.47-38.15-16.22-2.06
But don't uncork the champagne just yet. Pandora skeptics (and short-sellers) still abound, and for good reason.
Apple, with 160 times the market value of Pandora, is on a relentless pursuit to win listeners, most recently with its subscription on-demand Apple Music service that starts with three free months. Spotify has paid and free offerings and Rdio recently launched an ad-supported service to go along with its subscriptions.
Global deals are torturous for Pandora. To date, Australia and New Zealand are the only markets outside the U.S. where the service is available.
And the company is constantly skating the line between finding innovative ways to advertise, and annoying users with ad excess. More than 80 percent of revenue comes from ads, with the rest from Pandora's paid subscription offering.
Read MoreRdio goes old school
Meanwhile, this whole make love not war pursuit is still in its infancy. Cracker's Lowery doesn't believe for a second that Pandora is ready to play nice. He sees the company constantly seeking loopholes to lower the royalties it pays artists. For example, in 2013 Pandora bought a South Dakota radio station with the aim of being classified like terrestrial radio companies, which don't pay artists for performance rights.
So when Lowery hears about Pandora trying to help musicians promote themselves, it sounds more like marketing fluff than an honest strategic shift.
"I wouldn't really regard that as offsetting the low pay to all artists," Lowery said in an interview. "I don't think you can have PR events where you partner with certain artists but then across the board you're fighting fair pay to artists in fairly dirty ways."
VIDEO1:3001:30#2 mobile service in the US: Pandora CEOFast Money
While Lowery isn't a big fan of any of the emerging digital offerings, he has less of a problem with subscription services like Spotify, because there's a more substantial royalty involved.
Westergren is trying to change the conversation altogether.
The CD is dead and it's not coming back, so for the vast majority of artists, business has to be about concerts and merchandise. Pandora wants to use its 15 years of personalization technology and decade of brand building to help them find and communicate with fans. In May, the company added more data tools through the acquisition of music analytics software developer Next Big Sound.
Read MoreGoogle, Facebook and then who?
Pandora knows what people are listening to and where. Age, gender, zip code data and listening habits are attached to every member. That makes it easy to let a Jo Dee Messina fan know when the singer is coming to town, perhaps even with a special offer.
It can also help Messina.
"Their research and stats really show you where your fans are and what they like and don't like," Messina said in an email. "I will be able to use their information not only for getting music heard but to find out the strongest markets for touring."
For shows that Pandora sponsors, out-of-towners can tune into live streams or come back and listen at a later date. That all adds up to additional royalty payments and more exposure.
Pandora promotion for Outside Lands.Source: Pandora
It's a virtuous cycle and a story Westergren is eager to tell.
"People see that royalties are a piece of it, but it shifts attention away from that to what can we do to help sell more tickets," he said.
For Westergren, even being in this position is a minor miracle.
This is a company, remember, that entered the dot-com crash in 2000 without a working business model, and survived only because Westergren racked up hundreds of thousands of dollars of personal debt, paying employees with the equivalent of promissory notes.
Read MoreWill the tech stock plunge bleed to start-ups?
Later in the decade, the financial crisis struck, forcing another round of belt tightening, including eliminating one-third of its music analyst department on a single day.
Steve Hogan, Pandora's manager of music operations, has been with the company since the early days, overseeing the Music Genome. He's experienced every up and down, and through it all has continued tagging songs, building a portfolio of over 1.5 million tracks.
Now he's getting to hire again, with plans to grow his team by about 10 percent a year.
Like the majority of the music analysts, Hogan is a professional musician, who Bay Area residents can find 35 days a year playing organ at San Francisco Giants home games.
"It's a perfect day job for working musicians," Hogan said of the Music Genome. "Once we hire music analysts, they tend to stay."
Staying power is a cultural staple at Pandora, one that's being tested again on the public markets. The company's stock price has been crushed over the past 18 months, wiping out more than half its value.
The macro environment has certainly contributed, but even before the latest stock market swoon, Pandora investors were in limbo. The existing royalty structure expires at the end of the year, and the Copyright Royalty Board is expected to decide on new terms by mid-December.
Read MoreU.S. streaming revenues overtake CDs
Westergren said Pandora is arguing for status quo. He acknowledges that the issue has created a "big overhang," because Wall Street can't predict future profitability. RBC Capital Markets analyst Mark Mahaney agrees.
"You have no idea what the valuation really is, because the single biggest cost item is the royalty payment," said Mahaney, who has a "buy" rating on the stock. "My guess is there's a relief rally ahead just on removing the overhang, removing the uncertainty."
Westergren continues to play the long game. When not hanging out with musicians and wining and dining their managers, he's cozying up to employees over lunch and recruiting new blood. Pandora spokeswoman Erika White goes so far as to call him the "secret weapon" for his ability to land top talent.
VIDEO5:3005:30Revamping radioPower Pitch
He still sweats it out over the competition, watching engagement data to see which services are truly sticky and which have fad-like appeal. Politics and capital markets also pose some concerns.
Despite all that, Westergren has learned to keep things simple.
Read MoreWill it get better for Pandora
People still love radio even with the many alternative ways they can listen to music. Provide the best of radio with the best of the Web, Westergren says, and let your massive subscriber base tell you how you're doing.
"How do you translate 80 million monthly listeners into 80 million monthly consumers and activated fans?" is the question Westergren asks himself every day.
It's a big challenge. But at least it's not a crisis.
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62de188400ff4f3da61b66ebfa778973 | https://www.cnbc.com/2015/09/10/investors-snapping-up-new-homes-for-rentals.html | Investors snapping up new homes for rentals | Investors snapping up new homes for rentals
VIDEO1:2401:24Renter demand spikes builder volumeHousing
It was widely deemed a temporary play: Large-scale investors buying thousands of discounted foreclosed properties during the worst of the housing crash and turning them into single-family rentals. When home prices recovered, they would surely sell them for a hefty profit. The housing market is recovering, albeit more slowly than expected. Foreclosure volume is way down and home prices are way up, but these investors are not selling.
They are buying more, and now they are buying new.
"I actually think that we're coming into perhaps the most compelling three or four years that I've seen since I've been in the business," said Doug Brien, CEO of Starwood Waypoint Residential Trust.
Brien, standing in front of one of his company's rental homes in a brand-new housing development in Lawrenceville, Georgia, near Atlanta, says builders are the next frontier for institutional investors.
"For us operationally, being able to have a brand-new home that typically has a warranty, that works well for us. We can also customize floor plans that work for the business," added Brien.
Starwood Waypoint, which launched its business seven years ago, now owns more than 16,000 single-family rentals, the vast majority of which were foreclosures. So far it has purchased about 200 brand-new homes from builders, with an average price point of around $180,000. These homes represent about 5 percent of the REIT's portfolio.
Stephanie Dhue | CNBC
"I think the institutional capital is still looking at this very carefully, because there's a belief, and I support that belief, that it is a long-term hold and there's yield and there's appreciation to be had," said Tim Sullivan, practice leader at Meyers Research. "But the real challenge for capital now, for the institutional capital sources, is that the massive low-lying fruit is gone."
That fruit, cheap foreclosures, offered investors a relatively low-risk play, because they could buy homes at well below the cost of replacement, and not only would they see rental revenue but also property price appreciation. As this new interest develops, however, builders are starting to offer institutional buyers bulk discounts. Not only does it help builders grow revenue, but it gets them closer to normal levels of production, which has been a real struggle thus far.
Miami-based Lennar, one of the nation's largest homebuilders, is experimenting with the single-family rental market itself. It made a smart hedge during the housing crash by putting up multifamily apartment buildings. It now has 20,000 apartment units under construction, according to company reports. This year Lennar took that one step further, opening its first single-family rental community in Sparks, Nevada.
"One of the big criticisms of the single-family rental world is that they're all kind of one-offs in unique locations with unique amenities. The scalability of the management is what gets it complicated. This makes it much more like an apartment community in that it's all together and can be managed by a single entity," said Stuart Miller, Lennar's CEO.
Miller said Lennar will probably start another rental community, or possibly two.
"I'm surprised more builders haven't already taken the plunge," said Sullivan.
Ready to use your home equity? Read this first
Miller didn't say if Lennar would start selling to large-scale investors, but Brien said he has purchased some of Starwood Waypoint's homes from at least one public builder. Mostly he targets smaller, local builders.
"In some instances we're going in and buying the first 10 percent of a development, in some instances we're coming in and buying the last 10 percent of a development, and what they're trying to do is build more homes, and we're enabling them to increase their volume and their sales velocity by buying homes," said Brien. "We're talking to bigger builders who want to set up a buying program with us where we take down certain percentages of different developments and communities that they have around the country, and that's pretty exciting."
Brien claims demand is stronger than ever, especially for new product. When Starwood Waypoint first began renting its homes, the vast majority of its tenants had gone through foreclosure and had no choice but to rent. Today less than half of his tenants went through foreclosure; they are renters by choice, and they are willing to pay a premium for newly built homes.
Mortgage applications down 6.2% as refinancings slide
In many of the nation's actively selling, master-planned communities, which don't build homes just for rent, there are a significant number of renters anyway.
"Our research, which we confirmed with the CEOs of several of the institutional investors, shows that these renters live in detached homes primarily because that is the preferred lifestyle. Most of them did not even consider renting an apartment," wrote John Burns of John Burns Real Estate Consulting in a recent report. "They prefer to live in a detached home and are renting either because of necessity, flexibility or choice."
The nation's homeownership rate, which continues to fall, is now at the lowest in a half a century. While home sales are improving, both homeowners and renters are feeling less confident about the housing market now than they were even at the beginning of this year, according to Zillow. Fewer overall say now is a good time to buy.
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40366dcd83dc719bb7a205ddd3bc69fd | https://www.cnbc.com/2015/09/10/is-the-thrill-gone-for-apple-investors.html | Is the thrill gone for Apple investors? | Is the thrill gone for Apple investors?
Apple Senior Vice President of Worldwide Marketing Phil Schiller speaks on stage during a Special Event at Bill Graham Civic Auditorium September 9, 2015 in San Francisco, California.Getty Images
The following is a free preview of CNBC Pro. To get more investment analysis and the live CNBC TV feed, please subscribe.
With Apple shares down 18 percent from a mid-July record high, the pressure was on its latest product event to turn around Wall Street's concern about the company's ability to come up with a blockbuster innovation that would combat slowing iPhone sales growth.
Normally after such events, analysts and fanboys are gushing with praise about the new product lines and iPhone upgrades. This time, even the most rabid Apple fans on Wall Street and in tech media were underwhelmed, with an unusual number of bearish comments trickling out overnight into Thursday morning.
Was Wednesday's launch the first real sign that Apple may be unable to come up with "the next big thing" and more importantly, what does that mean for the stock with the largest market value in the world?
Analysts weighed in to clients:
"Apple presentation falls flatter than new iPad," Pacific Crest's Andy Hargreaves wrote in a note to clients. "We continue to believe it is unlikely to drive the upgrade rates and share gains seen in the iPhone 6 cycle."
"Overall, more disappointment than positive surprises, but nothing game changing," wrote Macquarie's Ben Schachter.
Several leading Apple blogs agreed there weren't many surprises:
"Most of the announcements were in line with expectations," said Eric Slivka, editor-in-chief of MacRumors. "As for surprises, there were only a few, such as more storage for the Apple TV than was rumored and Live Photos for the iPhone 6s and 6s Plus."
Read MoreTop analyst: Fitbit set to rebound by 80%
After years of watching Android competitors do well with the larger screen smartphone form factor, Apple launched the 5-inch display iPhone 6 last year and satisfied huge pent-up demand for a larger screen iOS device.
IPhone sales in the December quarter surged 57 percent year over year with units rising 46 percent on the year. This record-breaking success, however, sets up for a difficult comparison for the December 2015 quarter.
Wall Street tends to pay higher valuation multiples when growth accelerates, but the flip side is true as multiples tend to contract when growth slows down.
With the iPhone representing 65 percent of this year's estimated Apple revenue, details on the features of the new iPhone are critical to get investors more comfortable about future growth issues.
Unfortunately Apple's iPhone 6S/S Plus features failed to impress as many analysts and their morning notes to clients continued to worry about the potential of a iPhone slowdown in the December quarter and even the prospect of negative iPhone year-over-year sales.
"(IPhone) 6S/6S+ will be the first iPhone generation to decline year-over-year making Apple more reliant on price-reduced old model to growth units. ... It is hard to see upside to overall iPhone units for the fourth quarter of 2015 or the first quarter of 2016 as they are unlikely to (see) growth year-over-year," wrote Cowen's Timothy Arcuri.
"The product announcements were largely in line with speculation and did not seem like they can drive meaningful revenue growth. ... We remain concerned about tough iPhone compares for the next few quarters," said Mizuho's Abhey Lamba.
"The stock will have trouble getting past the tough iPhone comp issue," said Macquarie's Ben Schachter.
Read More These battered stocks are China-proof
The main issue now for Apple investors is with the lack of significant innovation in this year's products the shares lack positive fundamental catalysts, especially if growth disappoints in the next two quarters.
Due to Apple's below-market valuation of 11.5 times next year's earnings and large cash position of over $200 billion, the most likely outcome may be continued sideways movement as the company gets past the difficult compares.
To be sure, all isn't lost as this year's lack of innovation may be a setup for a better product cycle next year. The most connected Apple media insider who is renowned for getting the best Apple product detail leaks said this:
"I think the big picture with yesterday's event is how all of the new products fit together in the family and how they set up Apple for the future. For instance, the new Apple TV opens up the door for the future streaming service, while the new iPhone technologies hint at more capable, yet smaller, designs in the future," Mark Gurman of 9to5Mac said in an email to CNBC Pro.
This was a free PRO preview. PRO brings you the insight you need for smarter investing. Subscribe today.
—CNBC's Michael Bloom contributed to this story.
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86b7af5168d33d3ae39ffd17da96eccb | https://www.cnbc.com/2015/09/13/gold-hovers-near-one-month-low-as-traders-eye-fed-meeting.html | Gold inches higher as Fed meeting nears | Gold inches higher as Fed meeting nears
Getty Images
Gold turned slightly higher on Monday, clawing above the prior session's one-month low on uncertainty ahead of a Federal Reserve policy meeting that will be scrutinized for clarity on when the U.S. central bank will raise interest rates.
Spot gold was up 0.1 percent at $1,109 an ounce by 3:15 p.m. EDT. It had fallen to $1,098.35 on Friday, the lowest since Aug. 11.
U.S. gold for December delivery settled up 0.4 percent at $1,107.70, but was also close to its lowest in a month.
VIDEO2:4202:42Tale of two metalsPower Lunch
The Fed will kick off a two-day policy meeting on Wednesday. Though some in the market still reckon a "lift-off" could come this week, the view is gathering steam that faltering global growth could push that back even into next year.
"There has been so much anticipation (about the Fed rate hike) that we are now anticipated out," Macquarie analyst Matthew Turner said.
"I don't think that not raising rates in September could feel like a complete change of policy," Turner said, adding that one concern for gold could be if the dollar resumes its upward move against developed market currencies.
Read MoreGold's going to $1,000: Technician
The dollar turned up 0.1 percent after falling to a near-three-week low against a basket of major currencies. Wall Street and European shares retreated while oil prices fell as investors positioned for the Fed meeting.
Gold has benefited in recent years from ultra-low rates, which cut the opportunity cost of holding non-yielding gold while weighing on the dollar, in which the metal is priced.
"It's quite resilient coming into the Fed meeting," said Phillip Streible, senior commodities broker for RJO Futures in Chicago, adding that the market's change of direction indicates uncertainty.
A small majority of forecasters are sticking to their guns and predicting the Fed will pull the trigger this week.
"A non rate hike in September could give a temporary respite to gold, but prices are unlikely to breach recent highs around $1,170," ActivTrades chief analyst Carlo Alberto de Casa said.
Hedge funds and money managers cut their bullish stance in COMEX gold contracts to a three-week low in the week ended Sept. 8, U.S. government data showed on Friday.
Other precious metals remained under pressure, with silver down 1.6 percent at $14.38 an ounce and platinum falling 1.1 percent to $954 an ounce.
Palladium fell 1.3 percent to $584.50.
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6beea928e3f0456c69a9bef465e3576f | https://www.cnbc.com/2015/09/14/cramer-remix-detecting-a-best-of-breed-company.html | VIDEO1:1801:18Cramer Remix: What my mother taught me about investingCramer Remix
Every night, Jim Cramer goes on "Mad Money" with the mission to help people become better investors. In the past 10 years of the show, the evolution of that mission has transformed to match the surrounding environment.
The show first began as an outgrowth of Cramer's radio show called "Real Money." At that time, people were craving specific investment ideas. Everything changed when investors were hit with the Great Recession, which shifted the way investors viewed the market.
During that time, there were many big companies that were destroyed by the downturn, especially financial companies, along with the dramatic decline in economic activity.
"That era changed things, and it changed me. It changed the show," the "Mad Money" host said.
Ultimately, Cramer believes that stocks can be one of the greatest investment vehicles out there. They represent the sum progress of a business and the prospects for that business going forward. They can also share that wealth with shareholders and be very rewarding.
Cramer wants investors to come along for the ride with stocks, but that means doing it in a responsible way. That is why he always suggests an index fund as a safe way to invest.
"The show has changed over time from one where we pick stocks for you, to one where we educate you about stocks so you can understand why an index fund might be worth investing in," Cramer said.
Read More Cramer: Hot stock picks just don't cut it anymore
Kanawa_Studio | Getty Images
So, why even bother owning individual stocks?
"I think this show can play a role in your financial education and get you to the point where you make fewer errors and have more of a chance to make money longer term if you choose to invest in individual stocks as well as index funds," the "Mad Money" host said.
That is why he created the following four rules for owning stocks:
No. 1 Tips are for waiters. No. 2 You must do the homework if you are going to own an individual stock. No. 3 If you can't do the homework, then own an index fund. No. 4 If you fear losing money, don't own stocks at all because they will go down as well as up.
Read More Cramer: Want to own stocks? My top 4 rules
When Cramer was in law school, he saw the beginning of the indexing of individual stocks. He saw the bundling first of the stocks followed by the Value Line Company, an influential firm at the time, and then ultimately the . However, Cramer was more interested in individual stocks.
In 1984, when Cramer started at Goldman Sachs, he used to get a call from his mother, who loved the stock market and would call for quotes on her favorite stocks. And with all of the fancy research available at that time, she chose to invest by buying what she knew and staying on top of it.
She liked to shop at Giant Food, a progressive supermarket chain at the time, so she bought the stock. The process of homework back then was to like an idea through personal experience, read up on it with the best research and match those insights with other firms. Cramer also learned during that time that sometimes Wall Street research can be very wrong, so a healthy dose of skepticism is a good thing.
"I want to show you that it isn't reckless to try to pick individual stocks and those who say it is just don't understand the process of first-hand experience, married with research and buttressed by skepticism. It all increases the odds of successful individual stock investing while minimizing the risks of single stock ownership," Cramer said.
Adam Gault | OJO images | Getty Images
When Cramer first graduated college, he worked as a reporter covering sports and government in Tallahassee, Florida, where he made $153 a week. And while he didn't have a lot of money to spare, he did find a way to save in his IRA and began to buy individual stocks for a personal account.
"I was going to do it the right way, by researching stocks and getting an edge through that research," Cramer said.
After losing money on a few investments, Cramer decided to go to the library and research companies. Eventually, he found a company called Natomas, which had just discovered a large find in Indonesia. He took $300 and bought the stock, and it quickly caught a takeover bid.
Cramer realized from his investment in Natomas that by doing the homework, it gave him an edge over others and helped to arm him with the proper knowledge about a stock. He was hooked on stocks and never turned back. Eventually, Cramer made enough money to pay for his first year of law school when he decided to become an attorney.
Read More Cramer: My method to getting an edge on a stock
And when Cramer decided to leave Goldman Sachs after four years and open his own hedge fund, the first stock that he bought was Heinz. Why? Because he liked to own a stock that represented a call on great management that could deliver earnings through thick and thin.
What he didn't count on were the performance demands of a hedge fund manager. He quickly learned that just buying a stock because it was terrific didn't matter to the fund, and those long-term investments did not produce daily performance.
"Heinz was a staple with a good dividend and what I didn't understand at the time was when the economy heats up people dump these kinds of stocks for something more cyclical," Cramer said.
Cramer didn't get that if he wanted to perform daily, he would have to take daily action. You can't just sit there and take a beating because you own best-of-breed companies.
But here was the problem—this rotation game is not one that investors can play at home without being a full-time professional. And eventually when the market got too hot, it crashed and all of the cyclical plays were decimated.
But guess what? Heinz snapped right back. That is what happens to best-of-breed well-managed companies.
"As a home gamer, you can use the flailings of the hedge-fund performers to your own advantage by picking up best-of-breed companies," Cramer said.
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66c905b64a7f87cb7c168609bf2a98ca | https://www.cnbc.com/2015/09/14/google-hires-truecars-krafcik-to-head-its-driverless-car-unit.html | Google just got REALLY serious about driverless cars | Google just got REALLY serious about driverless cars
Getty Images
Google has appointed a former auto executive as its first CEO for its driverless cars division on Monday, in a sign the U.S. search giant is getting serious about bringing autonomous vehicles to market.
John Krafcik steps into the role, leaving his job as president of car price comparison website TrueCar. Krafcik is an auto-industry veteran with a previous role in product development at Ford, and as CEO of Hyundai Motors America, where he spent a decade of his career.
Autonomous driving is becoming a hot topic for technology companies like Google and Apple, which is reportedly working on a project in the space. But traditional auto firms have been trying to defend themselves against tech companies encroaching on their space. A consortium of German carmakers earlier this year bought Nokia's HERE mapping business – a key component of driverless cars – for 2.8 billion euros ($3.1 billion).
The hire hints at Google's seriousness about commercializing its autonomous car project and turning it into a fully-functioning business.
"This is a great opportunity to help Google develop the enormous potential of self-driving cars. I can't wait to get started," Krafcik said in a tweet on Monday.
"Self-driving cars could save thousands of lives, give people greater mobility & free us from things we find frustrating about driving today," he continued in another tweet.
Over the past few years, Google has been trying to diversify its business. Earlier this year, the Mountain View, California-based firm re-organized the business into a holding company called Alphabet with its main Google business containing units like YouTube and Android, split from other arms such as its smart thermostat section Nest.
The driverless cars project is part of Google X, the company's secret research lab. By hiring a CEO, this could put the autonomous vehicle unit on course to become a separate entity from Google X, according to a Google spokesperson quoted in the Wall Street Journal.
Google is trying to move quickly with the project and has tested their pod-like vehicles on public roads in both California and Austin, Texas.
It's unclear as of yet how driverless cars will progress but Google has previously said that it won't manufacture its own vehicles but instead looking to partner with other companies.
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adb1284e09c0b96f4fc48f3c9af168fb | https://www.cnbc.com/2015/09/15/apple-car-based-on-bmw-i3-nice-idea-ceo.html | Apple Car based on BMW i3? ‘Nice idea’: CEO | Apple Car based on BMW i3? ‘Nice idea’: CEO
VIDEO1:5401:54Mercedes-Benz unveil amazing self-driving car Tech Transformers
A driverless Apple car modeled on BMW's electric i3 vehicle "may be a nice idea", the automaker's boss told CNBC, after reports earlier this year suggested the U.S. tech giant was looking to make an electric car based on the German firm's design.
German publication Manager Magazin reported in July that Apple was interested in the body design of the i3 as a basis for its own electric car.
But Harald Krüger, the chief executive of BMW, told CNBC that while this "may be a nice idea", he had "no answer" to whether this was going to happen.
"There are always rumours in our business but as you know we are working together with a lot of IT companies like Google, like Apple, to integrate the smartphones into the cars," Krüger told CNBC in an interview at the Frankfurt Motor Show.
"But there is nothing more to add at this moment of time because we definitely look into the future development of the BMW group and digitalization of our business is…I would call it the top trend of our business."
VIDEO2:3902:39I'm a long-term China optimist: BMW CEOCEO Interviews
Speculation has been building all year that Apple is looking to develop its own electric car and jump into the auto sector. In July, Apple hired industry veteran Doug Betts, who led global quality at Fiat Chrysler Automobiles. And last month, "Project Titan" – the name for Apple's car project – got more credibility after The Guardian revealed the Cupertino-based giant was looking for an area to test the car in Silicon Valley.
America's biggest technology companies are all looking to jump into the driverless car space. Google is currently testing its own vehicle while taxi app Uber poached researchers from Carnegie Mellon University to work on autonomous driving technology.
At the same time, traditional carmakers are also looking toward driverless cars. Earlier this year, a conglomerate of German carmakers bought Nokia's HERE mapping system which is seen as a key component for autonomous driving.
Meanwhile, Krüger had an eventful time at the Frankfurt motor show. The CEO fainted on stage during the company's press conference in his first major appearance as the German automaker's boss. Krüger cancelled his appointments at the motor show and went home to recover.
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9be6bf4bc5685af89a0b9f041e9f1003 | https://www.cnbc.com/2015/09/15/cramer-fed-meeting-could-trigger-a-usd-body-slam.html | VIDEO8:5408:54Cramer: Fed meeting could trigger a USD body-slam Mad Money with Jim Cramer
At a time when there is so much volatility happening overseas, Jim Cramer says investors need to pay attention to foreign currency exchange rates versus the U.S. dollar.
After all, a strong dollar has the ability to wreak major havoc on all U.S.-based international companies because when they translate sales from weak currencies overseas, that could mean fewer dollars.
"If you're not paying attention, these currency issues can come out of nowhere and body slam your portfolio," the "Mad Money" host said. (Tweet This)
In addition, Cramer thinks that Thursday's Federal Reserve decision of whether to hike interest rates could have major impact on currencies around the globe. To get a better sense on where the currency markets could be headed, Cramer spoke with Bob Lang, a technician, founder and senior strategist at ExplosiveOptions.net as well as Cramer's colleague at RealMoney.com.
"Whether or not we get a rate hike is a gigantic deal for 2015, and it will certainly matter to the trajectory of the dollar, not to mention a host of foreign currencies, especially the ones from smaller emerging market countries," Cramer said.
Whether or not we get a rate hike is a gigantic deal for 2015, and it will certainly matter to the trajectory of the dollar, not to mention a host of foreign currencies, especially the ones from smaller emerging market countriesJim Cramer
Lang's position is that if the Fed does tighten, it will do it in a responsible way and try not to spook the markets. However, when Lang turned to the charts to get a read on where investors think the Fed's decision could be headed, he was surprised to find that investors don't seem to be preparing for any kind of Fed-induced dislocation.
First, Lang took a look at the CBOE Volatility Index, or VIX, which measures the level of implied volatility in put and call options on the . It is often widely used to determine the level of fear in the stock market. Lang found that the VIX has dropped sharply in the past few weeks, which indicates that investor fear has gone down as the Fed meeting approaches.
He then analyzed the Fed Fund futures, which are futures contracts designed to let traders bet directly on where the Federal Reserve will take short-term interest rates. Based on the difference between September and October Fed Fund futures, Lang calculated that the futures market is signaling only a 13 percent probability of a rate hike this week.
Lang also found telling action in the CBOE SKEW option index, which measures the tail risk of the S&P 500. This refers to the probability that the averages will get hit by a huge and unforeseen selloff. It tends to rally dramatically when investors are worried that things could go downhill. However, Lang found that since Labor Day this index has basically fallen off a cliff.
All of this data led Lang to determine that regardless of what happens investors are not worried about a selloff after the Fed meeting.
And if the Fed really is on hold, Lang said he could make a bullish case for the euro, which is great news for U.S. industrials, drug companies and consumer packaged goods firms. He also looked at the weekly chart of the FXE, the ETF that measures the strength of the euro versus the dollar.
Read more from Mad Money with Jim Cramer
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At its current levels, the FXE is only a few points away from its 50-week moving average. If it can break out above $113, Lang thinks it could go all the way to $120, which could represent a huge rally in the euro and prompt investors to buy stocks of U.S. based international companies.
Ultimately, Lang thinks that investors should not sweat the upcoming Fed meeting. And if the Fed does not raise rates, this could cause the euro, and even the yen, to roar.
"I think this is a huge call and, again, I remind you that if the dollar gets weaker then 2016 earnings estimates for all but the pure domestic companies will be going higher, which is something that could knock this bearish phase for so many international stocks right off its tracks," Cramer said. (Tweet This)
Questions for Cramer? Call Cramer: 1-800-743-CNBC
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Questions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com
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15ab02990c2071042c17f914eaf074f7 | https://www.cnbc.com/2015/09/15/europe-seen-higher-as-fed-dominates-sentiment.html | Europe accelerates gains to close up; Fed in focus | Europe accelerates gains to close up; Fed in focus
VIDEO1:1901:19Europe accelerates gains to close up; Fed in focus
European equities accelerated gains to close around 1 percent higher on Tuesday, after a choppy day of trade.
The pan-European STOXX 600 index closed 0.9 percent higher, as investors recovered from a sell-off in Asia and kept an eye on news surrounding the upcoming U.S. Federal Reserve meeting.
The U.K. FTSE 100 and German DAX indexes closed provisionally 1.1 percent higher and 0.8 percent respectively. The French CAC index ended provisionally 1.3 percent up.
U.S. stocks traded mostly higher on Tuesday, boosting European afternoon trade, as investors around the world wait to see if the Fed will finally raise interest rates this week, for the first time in nine years.
The U.S. central bank will meet on Wednesday and announce its decision on Thursday. Economists are divided as to whether a rate rise will ensue this month, given recent volatility in global markets and renewed concerns about the risk of an economic "hard landing" in China.
In Asia overnight, shares were mixed to lower, as caution prevailed ahead of the Fed meeting and concerns abou the health of China's economy simmered. Once again, Chinese stocks plunged, with the Shanghai Composite closing 3.5 percent down and the Shenzhen Composite 4.9 percent lower.
On Europe's data front, the closely-watched German ZEW economic sentiment index dropped to 12.1 points in September from 25.0 points in August. September's figure was well below expectations, with weakening emerging markets dampening the outlook for the euro zone's biggest economy.
Germany's RWE and E.ON slumped to close around 3.3 percent lower and 6.2 percent down respectively. This was after Spiegel Online reported that the energy companies were short of as much as 30 billion euros ($34 billion) needed to build a disposal site for nuclear waste as part of Germany's exit from nuclear power.
In addition, the auto sector was in focus on Tuesday after data from the Association of European Automobile Manufacturers showed new car registrations rose 11.5 percent year-on-year in August.
The news boosted European auto stocks, with Italy's Fiat Chrysler leading the pack, closing up 2.7 percent. Shares of BMW also performed well, ending around 2.2 percent higher.
Light crude oil prices gained on Tuesday, despite concerns over weak Asian demand. This supported energy stocks, with Seadrill near the top of the STOXX 600, ending more than 7 percent higher. Tullow Oil, also outperformed, closing 4.3 percent higher.
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0a1a08a7a50835c22aff42f23866ddb8 | https://www.cnbc.com/2015/09/15/is-the-uk-now-more-likely-to-leave-the-eu.html | Is the UK now more likely to leave the EU? | Is the UK now more likely to leave the EU?
caracterdesign | E+ | Getty Images
The long saga of U.K. membership of the European Union may end with a historic and traumatic as pro-Europeans face an onslaught from the Eurokeptic right – and now left.
The possibility of so-called Brexit appears to have been discounted by investors at the moment – but as the respective campaigns to leave or stay ramp up between now and whenever the vote happens (by the end of 2017), they are likely to take more notice.
On Tuesday, French bank Societe Generale made the risk of Brexit one of its "key calls" for investors, and said it would recommend reducing holdings in the pound and in U.K. shares amid the uncertainty prompted by the referendum.
After an era where U.K. politicians chased the center ground and those who raised the prospect of leaving the EU were regularly dismissed, those at the center now risk being confronted by an anti-EU pincer movement from both left and right.
The Labour Party has been pro-EU membership for decades, and was expected to broadly support the Stay campaign for the referendum. Yet with an influx of new members, a new, more Euroskeptic leader in Jeremy Corbyn, and the U.K.'s trade unions waging more power within the party than for decades, Labour cannot be automatically assumed to be on the EU side any more.
"We can't just give Cameron a blank cheque whatever he comes back with: we have to be fighting for the Europe that we want to see. He talked about...the importance of the social chapter, the EU working time directive," a Labour Party spokeswoman said of Corbyn's position on the EU.
UK’s Sanders elected: Does politics in the West need disrupting?
Pro-EU voices within the party, like former Shadow Business Secretary Chuka Ummuna, have stepped aside already over Corbyn's position.
Unite, one of the country's most powerful unions, has already said it would campaign for Brexit if the UK opts out of EU employment regulations. The issue could also be a vote-winner in some of Labour's northern constituencies where their vote share could be threatened by the U.K. Independence Party, which has long campaigned against the country's EU membership
The threat of Brexit on the right has been visible for longer, but it is no less effective for that. Arguably, it was concerns about rising support for UKIP (which did not result in the expected number of parliamentary seats in May's general election) which drove the centrist Prime Minister to hold a potentially destabilizing referendum in the first place.
Brexit on the cards? Polls point to yes
While UKIP and the Leave campaign may not have been as visible in the past few months, they have been busy. What some analysts and experts might call an unholy alliance with voices on the Left could be next on their agenda.
- By CNBC's Catherine Boyle
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07e943e7c741cae0f177a62dcc9e0338 | https://www.cnbc.com/2015/09/15/low-cost-saltwater-battery-wins-500000-award.html?__source=yahoonews&par=yahoonews | Low-cost saltwater battery wins $500,000 award | Low-cost saltwater battery wins $500,000 award
Could this be a small turning point for renewable energy?
A relatively cheap and environmentally friendly battery that uses saltwater and other commonly available materials to solve one of the biggest technical challenges facing renewable energy technologies was awarded a prize whose past recipients have gone on to have significant impact on technology and society at large.
An Aqueous Hybrid Ion battery roughly the size of a dishwasher or small refrigerator potentially stores enough solar or wind energy to power a single-family home completely off the grid in a region where sunlight is relatively plentiful, according to Dr. Jay Whitacre, a professor of materials science at Carnegie Mellon who invented the battery.
Aquion M100 Battery Module.Source: Aquion Energy
Whitacre founded Aquion Energy in 2008 and received venture funding from Kleiner Perkins Caufield and Byers shortly thereafter. It was announced Tuesday that Whitacre was given the 2015 Lemelson-MIT Prize, an award worth $500,000, for inventing the battery. (Investors in Aquion include Bill Gates and venture capital firm Kleiner Perkins Caufield and Byers.)
Past winners of the Lemelson-MIT Prize have included other influential inventors, including Ray Kurzweil, Dean Kamen, Douglas Engelbart, the inventor of the computer mouse, and Leroy Hood, who invented the DNA sequencer.
A suitable and inexpensive method for storing energy could be a boon to the adoption of renewable energy technology, especially sources such as wind and solar energy.
VIDEO1:4601:46Huge leap in solar tech?Power Lunch
When conditions are favorable, these sources are capable of capturing much more energy than users might immediately need. But when the sun is not shining or the wind is not blowing, they are of little help.
Scientists and the renewable energy industry have considered using batteries to smooth out this imbalance; energy captured when sun or wind are abundant can be stored and be meted out in leaner times.
This would make wind and solar far more competitive with fossil fuels and nuclear power, which are seen as providing a steadier stream of electricity than wind and solar.
High-tech roadways that could charge your vehicle
There already are similar batteries available, but Whitacre says they are typically made with materials that might be unsafe, are more expensive or are environmentally dangerous.
Lithium-ion batteries are a common technology that Whitacre said might be considered competitors with Aquion's batteries, but lithium-ion batteries that can perform for as many charge and discharge cycles as Aquion's saltwater battery would cost significantly more.
Whitacre said that the company should be able to sell Aquion batteries capable of powering a typical single family home for between $1,000 and $3,000, depending on the size, once the company is working at full production in the next year or two. Those batteries will last for about 3,000 cycles, or 3,000 days and nights. So, if the battery were hooked up to solar panels, one day would represent a full charge and one night might represent a full discharge. Taken together, one charge and one discharge makes one complete cycle.
A window that is also a battery
In addition, lithium-ion batteries are full of a flammable solvent, whereas the Aquion battery are nonflammable and nonexplosive, Whitacre told CNBC.
"[Our batteries] cannot burn, they are full of water," he said. "And when they dry out, they are fire retardant." The batteries also do not use heavy metals or toxic chemicals.
Michael Webber, deputy director of the Energy Institute at the University of Texas, said he was not familiar with Aquion Energy in particular, but he said that a saltwater-based battery poses a number of potential advantages over other options.
"With some battery technologies, such as lithium-ion, you have potential issues with the price and availability of the materials."
Webber said that some of the materials needed for batteries could prove difficult to source down the road. There even could be trade or supply-chain security issues that may hinder access to needed materials in countries where they are mined.
"Saltwater, on the other hand, is everywhere, so you don't have those same constraints," he said.
Aqueous-ion batteries are also easier to build than lithium-ion batteries, said Robert Fares, a researcher in Webber's lab at the University of Texas.
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"It is basically electrodes that dip into the saltwater, whereas lithium batteries undergo this complex manufacturing process," Fares told CNBC.
Stringing lithium-ion batteries together also generally requires a battery management system to manage them, which Aquion's batteries do not need.
However, there are a couple of limitations to saltwater batteries in general, Fares said. First, aqueous-ion batteries have a lower energy density than lithium batteries; lithium-ion batteries can pack more battery capacity into a smaller case than aqueous-ion batteries can.
And, generally lithium-ion batteries come out on top for efficiency.
"A battery is a box of energy where you put a certain amount of energy in, and you get a slightly smaller amount of energy out," he said. With lithium-ion, you get out a larger amount of the energy that you had put into the box.
That might not be a problem for aqueous-ion batteries, as long as they save enough money over lithium-ion to make up for the lost efficiency, Fares said.
Aquion is focusing its near-term sales efforts on areas where energy is expensive and dirty, such as island regions, developing countries or remote regions with poor energy infrastructure.
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c0ba65036ced5ec3abf9c04a3597b17e | https://www.cnbc.com/2015/09/15/these-outperforming-stocks-are-looking-risky.html | These outperforming stocks are looking risky | These outperforming stocks are looking risky
VIDEO2:4002:40Trading Nation: Big tech's big yearTrading Nation
Large tech stocks such as Google and Facebook have excelled this year. And while the has lost 4 percent this year, the Nasdaq 100 index, which tracks large cap tech stocks, is up almost 3 percent year to date.
However, the ETF that tracks the Nasdaq 100, the QQQ, could be a risky choice for investors, according to one trader.
Stacey Gilbert, head of derivatives strategy at Susquehanna, said investors are currently pricing in a higher-risk premium for QQQ than for the SPDR S&P 500 ETF (SPY). In contrast, small-cap stocks have some of the smallest risk premiums across the board, she said.
"In terms of where investors are positioning right now, quite honestly they do see more risk to the Q's here than they do the S&P 500, although they do see risk to both," Gilbert said Tuesday on CNBC's "Power Lunch."
Gilbert also pointed out that the QQQ is heavily skewed by its weightings. Apple shares, which have fallen more than 8 percent in the last three months, constitute more than 13 percent of the ETF. QQQ also comprises many biotechnology names, such as Gilead, Amgen, Biogen and Celgene.
Read More Why Apple may be a 'port in the storm'
The ETF that tracks biotechnology stocks, IBB, has gained more than 17 percent year to date.
But Albert Brenner, director of asset allocation strategy at People's United Wealth Management, also sees more risk to biotech stocks in particular.
"Although there are opportunities there, I think that one needs to be cautious in looking at that particular sector," Brenner said Tuesday on "Power Lunch."
Want to be a part of the Trading Nation? If you'd like to call in to our live Wednesday show, email your name, number and a question to TradingNation@cnbc.com.
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93ea3b8150c3891daf6580ebb1beeda2 | https://www.cnbc.com/2015/09/15/twitter-and-square-are-partnering-so-people-can-donate-to-politicians-through-tweets.html | Twitter and Square Are Partnering So People Can Donate to Politicians Through Tweets | Twitter and Square Are Partnering So People Can Donate to Politicians Through Tweets
Twitter and Square, two companies that are currently sharing a CEO, are also teaming up on a new feature that allows people to make political campaign donations directly on Twitter.
Candidates can sign up through Square, which will verify their campaign, and then tweet out a donation card complete with a "Contribute" button. Donors who already have a Square account can easily give money to their favorite candidate and then jump right back into the Twitter stream. People who don't have an account will be prompted to enter their debit card and some personal info to comply with FEC requirements. Square takes a 1.9 percent fee from each transaction (as it already does with small businesses using the service).
housands of people gather to hear Democratic presidential candidate Sen. Bernie Sanders (I-VT) during a campaign rally at the Prince William County Fairground September 14, 2015 in Manassas, Virginia.Getty Images
This is the first-ever formal partnership between the two companies, which are both currently run by Jack Dorsey. It's unclear how involved he was in the process, but it's probably safe to assume that shared leadership didn't hurt when the details were coming together.
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The deal makes sense, at least on paper. In Square's case, it's an opportunity to generate more Square Cash signups. Users who want to donate aren't required to have a Square Cash account, although it makes the process smoother if they do since, with an account, the user does not need to enter a debit card number in order to donate. It could also generate a little revenue for the company.
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The benefit for Twitter is that it should encourage politicians to keep tweeting ahead of next year's elections. Twitter becomes much more attractive to candidates if it's an easy way to generate campaign dollars, too. Social networks like Twitter, Facebook and Snapchat are all competing to get candidates sharing on their respective platforms, and this new feature should provide a little extra incentive.
In fact, more than a half dozen candidates, including Bernie Sanders and Scott Walker, are already using the new product.
Sanders tweet
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9af1eadc91324953907b0fc99f4032bf | https://www.cnbc.com/2015/09/15/understanding-funds-that-make-high-risk-investments.html | Understanding funds that make high-risk investments | Understanding funds that make high-risk investments
VIDEO1:2101:21High current income mutual fundStraight Talk
Think "investment" and you might not immediately think liquidity, or easy access to cash. Investors typically sock away money for the duration, not expecting to reap financial rewards until some distant point in the future, so an investment vehicle called a "high current income mutual fund" is likely to raise some eyebrows—and interest.
So what exactly is a high current income mutual fund? Bill Harris, CEO of Personal Capital, describes it as a mutual fund, or even an ETF, that invests in securities that can deliver "current income" (cash) every year.
solvod | iStock / 360 | Getty Images
"These funds typically hold bonds that have high interest and stocks that have high dividends, and this allows them to have the cash to distribute on an annual basis," he said.
These funds come in two flavors: high risk or low risk. "The ones with higher risk tend to invest more in stocks than in bonds, and often in stocks with higher volatility," said Harris.
Read MoreWhat is expense ratio?
The advantage of having a high current income mutual fund in your portfolio, particularly for retirees, is that it delivers regular, reliable amounts of cash, he noted. The drawback is that returns are typically "moderate."
"It's worth doing your homework, understanding this type of security, and then talking to your financial advisor to find out if it's right for you," said Harris.
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b450f747fc2fb8e5aa3e187246550bff | https://www.cnbc.com/2015/09/15/will-congress-inadvertently-halt-a-fed-rate-hike.html | Will Congress inadvertently halt a rate hike? | Will Congress inadvertently halt a rate hike?
VIDEO4:4904:49How government shutdown may affect stocksTrading Nation
Shutdown talk is again gripping Washington. With Congress heretofore unable to reach a budget agreement, the government should see a partial shutdown beginning Oct. 1. And that could be the real reason that the Federal Reserve won't raise rates, according to one strategist.
"In the end we probably won't get a shutdown, but the chances of a shutdown in the market's eyes will probably move from 5 to 10 percent, to 70 percent, back to 5 to 10 percent. And if you're a Fed governor on Thursday of this week, and you're looking at the risks, it's another reason to relax and hold off," said Larry McDonald, head of U.S. strategy at Societe Generale, in a Monday "Trading Nation" segment.
The central question for the market this week is whether the Fed will finally raise its federal funds rate target. For McDonald, the prospect of a government shutdown could alter the market's calculus.
"It would take about 0.2 percent off of GDP growth that quarter, so that's essentially like a rate hike," McDonald said. "The Fed governors will look at it like hiking rates, so therefore they'll hold off" on doing the same.
Read More These sectors could rally if the Fed stays put
Getty Images
Markets also may not take a rate hike well. Last time there was a shutdown, in 2013, the S&P 500 lost 5.5 percent and the VIX rose 70 percent in the period just before the shutdown to when the shutdown ended, said McDonald.
Currently, Congress needs to pass a continuing resolution in order to keep the government fully funded. While Republican Party leadership appears to be attempting to ward off that possibility, an effort on the part of conservatives to block federal funding for Planned Parenthood threatens to lead to a stalemate that would force a shutdown.
With a solution unlikely before the Fed makes its call, "the Fed cannot hike this week with political policy uncertainty on the rise," said McDonald.
The chances of a rate rise don't seem particularly high at the moment anyway. Traders only foresee a 25 percent chance of a September hike according to CME Group's FedWatch tool, a number that has been falling over the past few months.
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9826a6561bc84af4a4be01130d1fb07f | https://www.cnbc.com/2015/09/16/chile-quake-sparks-supply-concerns-pushes-lme-copper-to-8-week-high.html | LME copper at 8-week high after Chile quake sparks supply concerns | LME copper at 8-week high after Chile quake sparks supply concerns
Rodrigo Garrido | Reuters
London copper price hit their highest in nearly two months on Thursday after a powerful earthquake off the coast of Chile sparked concerns about supply disruptions in the world's biggest copper producer.
The magnitude 8.3 earthquake shook buildings in the capital Santiago and generated a tsunami warning for Chile and Peru. Peru this year is on track to become the world's second-biggest copper miner.
Benchmark London Metal Exchange copper climbed 1.1 percent to $5,440.50 a tonne, the loftiest since July 22.
VIDEO2:4202:42Tale of two metalsPower Lunch
Chile's state copper miner Codelco said workers at its Ventanas operations, which house a smelter and refinery, had been evacuated.
"We have no problems in any divisions. There is no damage to infrastructure or personnel," Codelco said in a message on Twitter.
Less than an hour after the initial earthquake, three aftershocks all greater than magnitudes 6.1 struck the region, the U.S. Geological Survey reported.
Waves triggered by a strong earthquake had begun hitting the country's coastline, emergency service said, but there were no immediate reports of damage.
Read MoreDoctor Copper is looking ill
Copper prices have struggled near six-year lows in 2015, due to an expected global market surplus this year and next, and slowing demand from top consumer China.
The global copper market is seen in a small surplus of nearly 200,000 tonnes this year, according to a median of analysts polled by Reuters in July.
But global miners such as Glencore this month have announced small cutbacks as some operations become uneconomic, tightening the supply pipeline and causing some analysts to turn cautiously optimistic on the metal.
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eb45ab819d6f945b771a37c247b0823b | https://www.cnbc.com/2015/09/16/china-markets-help-cement-hong-kong-as-global-financial-hub.html | China volatility cements HK's finance hub crown | China volatility cements HK's finance hub crown
Getty Images
Hong Kong's status as Asia's capital hub is likely to be enhanced by the ructions in China, as the city's track record for financial security and booming listings market attract investors eager to escape the volatility on the mainland.
Hong Kong is already the world's second most competitive economy, behind the U.S., according to a ranking by the IMD World Competitiveness Center earlier this year, thanks to high efficiency levels and business-friendly policies like zero export tariffs.
"China's volatility will further lift Hong Kong's reputation as an international financial center," said Daniel So, strategist at CIMB International Securities.
"There were fears that Hong Kong would be overtaken by Shanghai or Shenzhen once Beijing's capital market liberalization took off but now we've seen the latter two are not yet ready to be financial hubs," he continued, referring to the Beijing's seemingly botched management of stock markets.
Read More How much China volatility can the world endure?
After engineering an equity market bubble that took the Shanghai Composite to seven-year peaks in early June, Beijing began a series of aggressive, and often contradictory, policy measures once the market started tanking, such as halting initial public offerings (IPOs) and leveling accusations of malicious stock selling. Analysts and investors alike have told CNBC these actions were "immature," saying Beijing's poor planning represented a market still in its infancy.
Hong Kong's bread and butter remains servicing the needs of investors hoping to participate in China's growth story, explained So. The city is investors' preferred method of gaining exposure to the world's second-largest economy, thanks to Hong Kong's core values such as corporate governance, something mainland shareholders have long bemoaned.
"Without these values, in the long term Hong Kong won't be much different than Shanghai."
The city already boasts Asia's highest levels of corporate governance, according to a 2014 study by CLSA, on the back of clear legal framework and consistent disclosure levels. New changes introduced last year emphasized annual risk management reviews and greater board responsibility for issuers.
VIDEO3:1103:11Still downside for Hong Kong: GuppySquawk Box Europe
Perhaps the most telling sign of a city's appeal to foreign companies is the strength of the local initial public offering (IPO) market.
The first six months of the year saw the Hong Kong Stock Exchange (HKEx) become the world's largest IPO market in terms of funds raised, with IPO proceeds hitting $17.3 billion, a 45 percent increase on-year and around eight times higher than rival Singapore's performance.
"I think the difference between Hong Kong and the other centers in the Asian region is that we are more specialized in certain aspects of the financial market, for example, equity," K.C. Chan, Hong Kong's Secretary for Financial Services and the Treasury, told CNBC.
The IPO momentum is unlikely to stop, with a healthy pipeline scheduled for the remainder of the year.
Read More A cheaper yuan actually boosts these HK stocks
China Reinsurance Group, the mainland's largest re-insurer, filed an IPO application last month that could raise up to $2 billion in the fourth quarter, according to Reuters estimates. Meanwhile, China Huarong Asset Management, the mainland's largest bad-loan buyer by assets, could raise as much as $3 billion in an offering expected in late September or October.
"With a number of sizable deals up for listing in the second half of the year, we maintain our forecast for 2015 for an estimated 110 IPOs raising over $26 billion despite global market uncertainties," KPMG said in a July report.
Moreover, the anticipated launch of the Shenzhen-Hong Kong Stock Connect in the second half is expected to boost the Hong Kong stock market and positively impact IPOs, the report added.
The new Stock Connect will allow Shenzhen investors to buy Hong Kong-listed shares and vice-versa, similar to last year's Shanghai-Hong Kong Connect. The program is currently pending regulatory approval, HKEx CEO Charles Li said in August.
VIDEO3:4603:46Hong Kong benefits as China freezes IPOsStreet Signs Asia
Steady financial policy is also a vital component of Hong Kong's international attraction.
Beijing's decision to devalue the renminbi (RMB) last month sparked initial speculation that Hong Kong could delink its local dollar (HKD) from the U.S. dollar (USD), but experts say that's unlikely to happen.
"De-pegging the HKD from the USD means, most likely, it will be pegged to the RMB, given that economic cycles between the mainland and Hong Kong have converged over the years," Aidan Yao, emerging Asia economist at AXA Investment Managers, said in a recent report.
Read MoreHong Kong's digitized fight for democracy
"However, pegging the HKD to the RMB poses one obvious problem, being that the yuan is not yet fully convertible, with its capital account still subject to various restrictions."
Chan does not see Hong Kong abandoning the dollar peg either.
"The Hong Kong dollar is very unique because number one, it is a currency used in HK and the other thing is that we are also the currency for international transactions," Chan said.
"The dollar peg gives HK dollar huge confidence and it's a very important currency for intermediation in the market," he said.
Read MoreHK: The future is fintech, among other innovations
Ensuring free flows of capital is essential for a financial hub like Hong Kong, so subjecting its currency to capital controls is an unlikely scenario since it would just undermine the city's global position, he explained.
Moreover, Hong Kong's $340 billion in currency reserves, roughly 120 percent of gross domestic product, ensures protection from a looming U.S. interest rate hike.
However, the city's political future is more complicated.
Stability was threatened last year following a flood of pro-democracy protests aimed at granting the city direct elections without intervention from Beijing. But after Hong Kong lawmakers rejected a China-backed electoral reform package in June, the odds of further protests are reduced, for now.
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df1124657d03b67206c082133372457b | https://www.cnbc.com/2015/09/16/cramer-billion-dollar-unicorn-start-ups-beware.html | CoreyFord | Getty Images
As Jim Cramer headed to San Francisco's Dreamforce conference this week, he kept hearing about these fantastic "billion-dollar unicorn" companies that are disrupting technology industry and waiting in the initial public offering wings. And while they may have sexy products and sky-high valuations, these unicorns scare the heck out of him.
"I am more afraid of being hit by a speeding fastball of money being tossed at a start-up than I am of anything the Giants can throw at the mound," the "Mad Money" host said.
Cramer sees the same investors over and over again screaming hot, hot, hot over these prospective public companies. But he wondered, hot to whom?
So while Cramer may not be a technology expert to determine the winners or losers at Dreamforce, he does know one thing that many do not know at the conference.
"I know the stock market, and I can tell you that this stock market is uniquely inhospitable to pretty much every single unicorn out there with only a couple of exceptions," Cramer said. (Tweet This)
Venture capitalists can talk their face off about addressable markets and destruction of competition, but Cramer questioned if they know anything about the stock market or the kind of shareholder demand that ultimately controls the profits that these companies make. There just isn't enough money coming in from the sidelines for the unicorns to be able to buy these deals.
I know the stock market and I can tell you that this stock market is uniquely inhospitable to pretty much every single unicorn out there save two.Jim Cramer
To clarify, Cramer was not referring to Airbnb and Uber. He said they are not valued at ridiculous valuations because there are so many people that use their services, and believes there will be an appetite for both retail and institutional investors. He added that there will be plenty of room for both companies, just as there was for Facebook and Alibaba.
Rather, Cramer is referring to any of the so-called disruptive companies that jump on the sharing economy bandwagon with algorithms that do things like crowdsource or enable mobile payments and digital wallets. Enough already!
Cramer went down the list of money that has been lost in cool things that many people use: Yelp, Box, Twitter, HomeAway, GrubHub, Millennial Media, Rocket Fuel, Lending Club and Etsy.
Read more from Mad Money with Jim Cramer:Cramer Remix: Surprising stock to buy if Fed movesCramer: Fed meeting could trigger a USD bodyslamCramer's Fed cheat sheet: Prepare for 6 pitfalls
"These are thanks-for-nothing companies. Meaning, thanks for bringing public companies that ultimately killed our portfolios," Cramer said.
Cramer suspects that the average investor is now sick and tired of exactly these kind of stocks, and many of the money-losing companies will find the IPO window nailed shut going forward.
"So, unicorns of the world listen up: never forget that your ultimate exit market isn't the consumer, it is the people who buy stocks. And in this extremely difficult market for IPOs your companies aren't welcome until they grow not just a horn, but some profits," Cramer added.
In many cases, those profits might just be as rare as unicorns themselves.
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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ca79d28356ed0e60df8d347177ee4ff6 | https://www.cnbc.com/2015/09/16/cramer-remix-know-this-about-beer-takeovers.html | VIDEO1:0301:03Cramer: You need to know this about beer takeoversCramer Remix
Jim Cramer considered the rally on Wednesday to be a celebration of investors anticipating that the Federal Reserve will do nothing on Thursday—and it could be premature.
"Sometimes, when I hear about this endless parlor game of will they raise or won't they, I feel like we have to step back and talk about what we're really about, our core DNA here on 'Mad Money,' which is evaluating companies as potential investments," the "Mad Money" host said.
Cramer wants investors who have saved for retirement and are ready to invest to look for opportunities to buy shares in companies at prices they like.
Thursday could be one of those opportunities.
So here is Cramer's game plan: If the Fed raises rates without a statement of reassurance that it is done raising rates, do not take the bait of the first sell. In fact, Cramer doesn't think he would even take action on Friday considering the amount of hot money that is betting that the Fed will not raise rates. Selling could be heavy.
If things get really ugly on Friday or Monday, Cramer wants investors to beware that various sectors will take a nosedive. Beware that they may continue to downslide with the market.
Read More Cramer: Stocks to buy in a Fed induced selloff
Janet YellenKevin Lamarque | Reuters
In the past, when Cramer always knew that he could turn to the merchants-of-vice companies when navigating an uncertain environment. It's really hard to get more uncertain than the current landscape with a possible rate hike looming, potential for another government shutdown and a real chance of a worldwide recession.
The category of vice stocks stem from humanity's lowest impulses like drinking, smoking and, to a lesser extent, gambling. Many investors have had the theory that just when the economy heading downward, that was the time to load up on tobacco and alcohol stocks as they would deliver recession-proof numbers.
"While vice in general is always going to be popular, the market still demands growth and many of the stocks on the vice menu have found themselves growth challenged for a variety of reasons," Cramer said.
Ultimately, even with the talks of red-hot takeovers in the beer category, Cramer cannot recommend vice stocks at the current levels. Especially as they are desperately in need of margin expansion. The best way to do that is to merge with a competitor and cut costs, and there is just too much work to be done in this environment.
This week, Cramer is in San Francisco for Dreamforce, a conference hosted by Salesforce.com that is widely regarded to be the annual mecca for all things related to cloud computing.
Salesforce is on track to become the fastest enterprise software company to reach $7 billion in revenue by the end of 2015. Not to mention, it practically invented the cloud.
However, when Cramer spoke with Salesforce Chairman and CEO Marc Benioff on Wednesday, the "King of Cloud" emphasized that the company is not just about the cloud.
"This isn't about the cloud, Jim, and it never was about the cloud. It's about the customer," Benioff said. (Tweet this)
Read More King of Cloud to Cramer: CRM isn't about the cloud
CoreyFord | Getty Images
Cramer also kept hearing about these fantastic "billion-dollar unicorn" companies at Dreamforce that are disrupting technology industry and waiting in the initial public offering wings. And while they may have sexy products and sky-high valuations, these unicorns scare the heck out of him.
"I am more afraid of being hit by a speeding fastball of money being tossed at a start-up than I am of anything the Giants can throw at the mound," the "Mad Money" host said.
Cramer sees the same investors over and over again screaming hot, hot, hot over these prospective public companies. But he wondered, hot to whom?
So while Cramer may not be a technology expert to determine the winners or losers at Dreamforce, he does know one thing that many do not know at the conference.
"I know the stock market, and I can tell you that this stock market is uniquely inhospitable to pretty much every single unicorn out there with only a couple of exceptions," Cramer said. (Tweet This)
Read More Cramer: Billion-dollar unicorn start-ups—beware!
Cramer also thought that with Dreamforce in full action this week, it is worth remembering that the sexiest technology stocks sometimes aren't the best to invest in. Sometimes it is best to stick with a survivor that knows how to reinvent itself, like Cisco Systems.
The networking giant has been working to move into various higher-growth areas, such as the internet of things and cybersecurity, while still providing shareholders with a 3.2 percent yield.
With the stock on a pullback recently, Cramer wondered if this could be a gift for shareholders or if they should worry about how the company will fare in a worldwide slowdown.
To find out more, the "Mad Money" host spoke with Cisco CEO Chuck Robbins, who commented on the rapid change of the technology industry and need for Cisco to partner with companies, such as its recent partnership with Apple.
"When you think about where we are, the pace of change in this business is unprecedented…Now you've got geopolitical dynamics, and you've got rapid economic transitions. And the pace of the technology change in our customer's expectations of us are going to require for us to partner, because we can't do it all alone," Robbins said.
In the Lightning Round, Cramer gave his take on a few caller-favorite stocks:
Starbucks: "My charitable trust owns a ton of it, [CEO] Howard Schultz is doing an amazing job. I like the new mobile payment situation. It is good to buy right here."
HSBC Holdings: "It's too hard for me! We've got to go with Wells Fargo. My charitable trust does that. We've got to keep it simple, right?"
Read More Lightning Round: Time to buy this stalled stock
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0d1637c37529ac757057b1175b5bad34 | https://www.cnbc.com/2015/09/16/cramer-stocks-to-buy-in-a-fed-induced-selloff.html | VIDEO11:1811:18Cramer: Stocks to buy in a Fed induced selloff Mad Money with Jim Cramer
Jim Cramer considered the rally on Wednesday to be a celebration of investors anticipating that the Federal Reserve will do nothing on Thursday—and it could be premature.
"Sometimes when I hear about this endless parlor game of will they raise or won't they, I feel like we have to step back and talk about what we're really about, our core DNA here on 'Mad Money,' which is evaluating companies as potential investments," the "Mad Money" host said.
Cramer wants investors who have saved for retirement and are ready to invest to look for opportunities to buy shares in companies at prices they like.
Thursday could be one of those opportunities.
Yet the "Mad Money" host finds that most investors only see two options with the ; buy if the Fed does nothing, sell if it raises.
Given the incredible run that the market has had going into the Fed meeting, Cramer thinks it could be possible that the averages get hammered if the Fed takes action. Yet, if it does nothing, the market could continue to rally and investors will regret that they didn't take action and buy high-quality companies when they had the chance.
We need to stop fretting about a rate hike and start worrying about missing opportunitiesJim Cramer
Janet YellenKevin Lamarque | Reuters
"Less intrepid souls will most likely put money to work tomorrow after the meeting if they stay the low-rate course. Ultimately, I wouldn't be surprised if the traders who bought ahead don't boot stocks no matter what, just being glad they got some gains," Cramer said. (Tweet This)
That could be a fantastic buying opportunity.
More importantly, Cramer recommended having a fail-safe plan in place. After all, the Fed could surprise and decide to raise rates a quarter of a point and say it will take more action going forward. If that occurs, the gains from the past few days could be thrown out the window.
So here is Cramer's game plan: If the Fed raises rates without a statement of reassurance that it is done raising rates, do not take the bait of the first sell. In fact, Cramer doesn't think he would even take action on Friday considering the amount of hot money that is betting that the Fed will not raise rates. Selling could be heavy.
If things get really ugly on Friday or Monday, Cramer wants investors to beware that various sectors will take a nosedive. Beware that they may continue to downslide with the market.
No. 1 Anything that's good for your body. That includes exercise, natural and organic. It includes Under Armour, Nike, White Wave and General Mills.
No. 2 Social, mobile, cloud and artificial intelligence. That means Salesforce, Google and Facebook.
Read more from Mad Money with Jim Cramer
Cramer Remix: Surprising stock to buy if Fed moves Cramer: Fed meeting could trigger a USD bodyslam Cramer's Fed cheat sheet: Prepare for 6 pitfalls
No. 3 Domestic retailers, as they are more immune to a strong dollar that will be caused by a rate hike. This includes Target, Panera and Kroger.
No. 4 Biotech will be creamed, as always. That could be a chance to pick up Cramer-faves Celgene and Regeneron.
"We need to stop fretting about a potential rate hike and start worrying about missing any opportunities that could be created by a Fed-induced selloff," Cramer said. (Tweet This)
Many investors fear the outcome on Thursday's Fed meeting. Yet, what they should be more afraid of is the fear of passing up an opportunity that may not come back for a very long time.
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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72ef9a207c4c2ec7448513ac12fda3a1 | https://www.cnbc.com/2015/09/16/heres-whats-important-about-ios9.html | The Tech Bet | The Tech Bet
VIDEO3:4303:43What's important about iOS9?Internet
Uh oh.
Apple fans experienced difficulties when trying to download iOS9, the company's newest mobile operating system, 9to5Mac.com reported Wednesday.
Tweet
The company did not immediately respond to CNBC's request for comment.
This time every year, Apple graces its ecosystem with a plethora of advancements on its operating system. It's no different this time around with today's release of iOS9.
One of the key features to this upgrade is the battery life.
Attendees take photographs of the Apple Inc. iPhone 6s and iPhone 6s Plus smartphones after a product announcement in San Francisco, Sept. 9, 2015.David Paul Morris | Bloomberg | Getty Images
Sensors will keep the screen from turning on if it's face down on a table and a new "low-power mode" will help extend battery life by one hour before charging.
This software will also take up less room than prior upgrades, being that it's only 1.3 gigabytes versus 4.6 gigabytes.
Read MoreThis day in history, September 16, 2016
After installing, the default for passcodes will be six digits as opposed to four, which makes a hack attack a little more difficult.
In addition, this upgrade also promises a smarter Siri, a News app that will pull stories based on what you like to read and easier multitasking on the iPad with Slide Over, Split View and Picture in Picture.
--CNBC.com's Fred Imbert contributed to this report.
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431206c55dd8203e97f3347ad2434d43 | https://www.cnbc.com/2015/09/16/hkstps-allen-ma-hong-kong-science-park-attracting-top-tech-talent.html | 'Hong Kong Science Park is no white elephant' | 'Hong Kong Science Park is no white elephant'
VIDEO3:0603:06Can HK Science Park live up to its hype?Global Opportunities: Hong Kong
As the head of the Hong Kong Science & Technology Parks (HKSTP) Corporation, Allen Ma is no stranger to the term "white elephant."
The unflattering term, used to describe high maintenance projects that yield little benefit, is a label one of HKSTP's properties, the Hong Kong Science Park, has sometimes been tagged with.
"I think it's a very unfair term," Ma said, adding that there is no lack of interested parties waiting to move into the tech facility.
Ma told CNBC that phases one and two of the Science Park were nearly fully occupied, while the third research and development (R&D) phase that opened in September last year was half full.
"If we open up the floodgates and allow everyone to come to the Science Park, it is going to 100 percent occupied. But we are very strict in terms of the kind of companies we want to attract," he explained.
Set up in 2001, HKSTP's role is to drive the development of Hong Kong as a regional hub for innovation, through managing the Hong Kong Science Park, InnoCentre and Industrial Estates.
Its strategy is straightforward; create a vibrant tech ecosystem that attracts the best and the brightest, that will then act as a catalyst for innovation and deliver economic benefits to Hong Kong.
But as the region's competition for talent intensifies, Ma said putting the best physical facilities in place may not be enough.
"Infrastructure is no longer a differentiation, every science park in the world has the infrastructure. What makes us different from the other science parks is the services that we offer," he said.
That includes marketing and hiring support, plus steps to help connect companies to funding by venture capitalists and angel investors.
Its effort is beginning to bear fruit.
Hong Kong Science Park, Tai Po, New Territories, Hong Kong.Ian Trower | Getty Images
Last year, the Science Park facilitated a record number of deals for its tenants.
"We attracted close to 200 million Hong Kong dollars ($25.8 million) of new investment into companies at the Science Park last year, and I am very confident we are going to exceed this number this year," Ma said.
Another coup was convincing the world's largest consumer drone manufacturer, DJI, to undertake next phase of R&D in Hong Kong.
Read MoreHong Kong 1% shun Europe markets as well as China
The Shenzhen-based company moved part of its operations to Hong Kong Science Park in February this year, occupying a 20,000 square-foot facility.
"DJI has always used Hong Kong as a logistic and international talent hub," said DJI's spokesperson Michael Perry, adding that the move was mostly to tap on young Hong Kong engineers who wanted to develop their robotic skills.
Of course, it helps that DJI founder, mainland-born Frank Wang Tao, was a graduate from the Hong Kong University of Science and Technology.
Hong Kong's drawbacks are its limited space and high costs, said Perry, but initiatives like the Science Park did help lower some of those barriers.
"One of the amazing things about Science Park is that they actually allow us to have the space to go out and fly, test new equipment and try new things," said Perry.
As a drone-maker, DJI faces unique challenges on the regulatory front, including the openness of the local city toward developing commercial applications for the drones.
"A lot of cities and countries don't have a common rule, so that's something that we're looking to develop as we go along," he said.
Read MoreSchools wasting money on computers for kids: OECD
Another company that chose to build its home at the Hong Kong Science Park is bio-tech company, Novoheart.
Its founder, local-born and U.S. educated Ronald Li, said Hong Kong's edge lies in being part of China, albeit one with a stronger regulatory environment.
However, there are still frustrations.
"The local community is not entirely familiar with the sector (unlike) the U.S., EU where the industry is more established, and there are professionals who know how to evaluate what you're trying to get done.
"But the market there is also more saturated, so there are more competitors. So it is a give and take situation, different places have different issues and you have to learn how to manage," Li said.
Despite that disadvantage, Li is confident that Hong Kong can speed up, and catch up.
"Hong Kong has a very strong track record for bringing things from zero to prominence; supporting small, medium enterprise in the 1970s, to becoming a global financial market in the 1980s, 1990s. We also saw Hong Kong becoming a global wine hub within just a few years. So I think with the right policy push, things can happen very quickly," he said added.
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42642ea69019d85bfc6cba8d03da51bd | https://www.cnbc.com/2015/09/16/social-media-key-to-hong-kongs-occupy-central-fight-for-democracy.html | Hong Kong's digitized fight for democracy | Hong Kong's digitized fight for democracy
VIDEO5:3605:36Will there be an Occupy Central 2.0?Squawk Box Asia
VIDEO6:3806:38What did Xi Jinping achieve with US visit?Squawk Box Asia
VIDEO2:4102:41Can Hong Kong remain a top financial hub?Global Opportunities: Hong Kong
One year ago, as Hong Kong protesters fought against a proposed electoral rule change by Beijing, social media, and technology more broadly, was key to spreading the message, so that it was heard not just by protesters but around the world.
Even those not attending were able to get involved; Showing solidarity with the protest was as simple as sharing an image of a yellow umbrella on Facebook, Instagram and Twitter accounts to symbolize the movement that carried its name.
Hong Kong is run by Beijing in a 'one country, two systems' policy, which enables the island to enjoy freedoms not permitted for mainlanders. It was against this political backdrop that thousands flooded the streets of Hong Kong to protest against proposed changes to Hong Kong's electoral system, in which China would screen all nominees in the first direct elections for Hong Kong's leader, due to be held in 2017.
The Hong Kong Federation of Students and Scholarism, a student activist group, were the first to protest outside government headquarters, on September 26, 2014. The Occupy Central with Love and Peace movement joined shortly, elevating the protests to a mass civil disobedience campaign.
Early in the action, it became clear that the battle would be waged in part via digital means. Twitter reported that 1.3 million tweets about Hong Kong were recorded between September 26-30, the beginning days of the so-called Umbrella Movement.
Protesters take part in the rally for the beginning of Occupy Central movement outside Central Government Offices in Central, HongLam Yik Fei | Getty Images
On September 28, the Hong Kong government reacted to the widespread protests by deploying policemen who used pepper spray, tear gas and batons to drive back protesters. Images were captured and shared on the internet by protesters who used umbrellas and face masks to defend themselves.
"[Social media] was definitely a documenting function and it also helped in coordinating and mobilizing the protesters especially when there were several protest sites," Tracy Loh, visiting fellow at the Department of Communications and New Media in the National University of Singapore, told CNBC in an email interview.
These images and information were not featured on major Chinese news outlets, which were focused on the then-upcoming 65th anniversary of the founding of the People's Republic of China on October 1.
"When images of police brutality went viral, it helped to spur emotions and images of the size of the protests helped to 'galvanize the troops'," said Loh.
Facebook was the social media vehicle of choice for most people involved in or following events, according to prominent figures of the Umbrella Movement, Joshua Wong and Nathan Law.
"I mainly used Facebook to update protest information quickly [as] the Scholarism page has over 315,000 likes," Joshua Wong, the 18-year old founder of Scholarism, told CNBC in a phone interview.
Read MoreHong Kong 1% shun Europe markets as well as China
Nathan Law, the Secretary General of Hong Kong Federation of Students, added that although Hong Kong people primarily used Facebook and posted in Cantonese, he also translated posts into English and post them on Twitter.
There were several Facebook pages created for the purpose of verifying information as well, such as HKVerified, which provided credible bilingual news and information updates about the protests.
Loh added that social media also played a complementary role to traditional media including newspapers and broadcast news, helping bring attention to the movement.
"Many images and stories that first appeared on social media platforms were picked up by traditional media to spread the information to audiences that were not online," she said.
The use of technology to facilitate the Umbrella Movement was not limited to social media.
Google Doc Spreadsheets were created to organize the practical logistics for several protests at different locations. Donations would flood in for the items listed in the spreadsheets. Protesters could also find out where the nearest public toilets and resting points were.
One of the more interesting apps used during the protests was FireChat, a messaging app which cleverly relies on Bluetooth instead of internet connectivity. This was a key messing app used during the Umbrella protests when telecommunications networks' services came under pressure from overcrowding in certain areas.
Aside from rallying Hong Kong people into action, technology and social media was also a "good channel for [garnering] international support," said Wong.
Hong Kong protesters used the hashtags #Ferguson and #Arabspring to respectively compare the police brutality in Missouri, United States, and the pro-democratic uprisings that swept the Middle East with events in Hong Kong.
Chris Derps Tweet
It appears the confluence of issues helped make Hong Kong's protests more relevant to international social media users and drew in more supporters for the democratic cause.
Rallies in support of Hong Kong's Umbrella Movement were held in at least 64 cities including London, New York and Taipei, according to the Facebook page of advocacy group United for Democracy: Global Solidarity with Hong Kong.
"The international support is also a way to keep pressure on the government and to increase global concern," Wong added.
The Umbrella Movement created momentum for Hong Kong's pro-democracy supporters, even though the protests ended without concessions from the government.
This was not seen as a loss, said Law, as "more and more people are devoted to constructing a strong civil society" in Hong Kong, and several other organizations have also sprung up after the Umbrella Movement in support of democratic ideals.
In June Hong Kong lawmakers voted down the controversial electoral reforms in which potential chief executive candidates have to be pre-screened by a pro-Beijing nominating committee. Beijing was adamant about not offering an alternative election framework.
This stalemate increases the uncertainty surrounding the 2017 elections for Hong Kong's chief executive.
Wong concludes: "Figuring out how to continue the Umbrella movement and [driving] Hong Kong people's determination for a better future is key."
It is almost certain there will be a large social media element to this continuing campaign.
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9c23bcc0737e824ba86683f0f5d0a95e | https://www.cnbc.com/2015/09/17/67-believe-fed-will-still-hike-this-year-survey.html | 64% believe Fed will hike this year: CNBC Survey | 64% believe Fed will hike this year: CNBC Survey
VIDEO2:1402:14What does Fed need to see to move in short term?Power Lunch
VIDEO2:0602:06When will Fed see certainty?Power Lunch
VIDEO4:0804:08Is Fed closer to or further from inflation goals?Power Lunch
The Federal Reserve stuck to its near-zero interest rate policy Thursday, and expectations now favor a December liftoff, according to a flash CNBC survey.
After the Fed decided not to raise rates, 56 percent of survey respondents said they believed the central bank would move in December. Most of the 40 economists and market watchers surveyed, 64 percent, expect the FOMC will increase short-term rates for the first time in nearly a decade at one of its two remaining meetings this year.
Traders work as Janet Yellen, chair of the U.S. Federal Reserve, is seen speaking on a television screen on the floor of the New York Stock Exchange (NYSE) in New York, U.S., on Thursday, Sept. 17, 2015.John Taggart | Bloomberg | Getty Images
Another 15 percent expect a hike in January of next year.
Read MoreFed leaves rates unchanged
In the same survey, 56 percent of respondents called Fed policy "too accommodative," while 33 percent characterized it as "just right."
According to a separate RBS measure, market expectations for the first full rate hike are priced into March. By the bank's measure, the odds of a December hike fell to 64 percent Thursday from 84 percent previously.
Read MoreFed holds off, markets now betting on hike in 2016
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76dcaaf3f3c82128e069108ca7767f9b | https://www.cnbc.com/2015/09/17/athletes-who-made-the-most-money-in-2015.html | Athletes who made the most money in 2015 | Athletes who made the most money in 2015
Roger Federer of Switzerland returns a forehand shot to Novak Djokovic of Serbia during their Men's Singles Final match on Day Fourteen of the 2015 US Open at the USTA Billie Jean King National Tennis Center on September 13, 2015Getty Images
Today, athletes are making more money than ever before. It's become commonplace to see sports figures in all major sports get record-breaking deals, like the Cleveland Cavalier's Kevin Love did when he completed a five-year, $110 million deal over the summer. For the mathematically challenged, that's more than $20 million a year—far more, in fact, than the average chief executive of a major corporation.
Read More Why corporate CEO pay is so high, and going higher
Using Forbes Magazine's recently compiled list of the highest-paid athletes in 2015 to date, CNBC has put together a list of the top five earners. While it would seem to make sense that the biggest names in the most popular U.S. sports make the most money, the list proves that this may not necessarily be the case: Big-paycheck names such as Alex Rodriguez, LeBron James and Tom Brady actually failed to make the cut. A few names on this list, ranked from lowest to highest earners, may come as a surprise to many readers.
—By Steven Hanley, special to CNBCPosted 20 Sept. 2015
Roger FedererGetty Images
Roger Federer, the No. 2-ranked tennis player in the world right now, takes the crown as the richest tennis player of the year, and the fifth-highest paid athlete of 2015.
Federer, who made a mere $9 million from match play this year, makes the majority of his money off the court. As arguably the most-popular male tennis player in the world, Federer has been able to land endorsement deals with powerhouse companies such as Nike, Rolex, Gillette and Credit Suisse. These endorsements have netted Federer $58 million dollars this year, bringing his 2015 total to a whopping $67 million.
Lionel Messi of FC Barcelona shoots at goal during the La Liga match between Club Atletico de Madrid and FC Barcelona at Vicente Calderon Stadium on September 12, 2015 in Madrid, Spain.Getty Images
Lionel Messi, perhaps the most skilled soccer player ever to grace the field, comes in as the fourth-highest paid athlete of 2015 with just under $75 million. Messi also owes a lot of his wealth to endorsements from companies such as Samsung and FIFA ($22 million this year), but the majority of his earnings come from contracts with various soccer teams. In 2015, Messi made $52 million alone by playing for arguably the best club team in the world, Barcelona, as well as for the Argentine national team.
Despite its small (but growing) fan base in the United States, soccer is widely considered to be the most popular sport in the world. Messi, along with superstar Cristiano Ronaldo, is undoubtedly the face of soccer worldwide.
Cristiano Ronaldo of Real Madrid CF reacts as he fail to score during the La Liga match between Real Madrid CF and Real Betis Balompie at Estadio Santiago Bernabeu on August 29, 2015 in Madrid, Spain.Getty Images
Cristiano Ronaldo, also known as CR7, is constantly juxtaposed to Messi as the best player in the world. However, he has made slightly more than his Argentinean superstar rival this year. Ronaldo, like Messi, has made $52 million from playing for both Real Madrid and the Portuguese national team, but he holds a slight edge in endorsement deals. As the world's most-followed athlete on social media platforms, Ronaldo has been able to land a large deal with Nike, as well as launch his own clothing line, CR7. These deals have earned Ronaldo $27 million this year, bringing his 2015 total earnings to nearly $80 million.
Manny PacquiaoGetty Images
Manny "Pacman" Pacquiao, the Filipino-born boxer, ranks as the second-highest paid athlete with $160 million. That sum is double Cristiano Ronaldo's earnings on the year—but much of that was actually earned in one fell swoop. Pacquiao's 2015 earnings probably qualify him as having the world's richest hourly rate, because his one-hour May 2 battle with Floyd Mayweather earned him a staggering $120 million.
Pacquiao did not prevail against his challenger, but "The Fight of the Century" made him an awfully wealthy loser, with the help of the more than 4 million people who shattered Pay Per View records, and generated $400 million in revenue.
Floyd Mayweather Jr.Getty Images
If the "Fight of the Century's" loser is No. 2, you'd have to assume that the victor is No. 1. Floyd "Money" Mayweather—infamous for flaunting his pile of cash—comes in as the highest-paid athlete of 2015 with an astounding $300 million. Like Pacquiao, Mayweather made the vast majority of his money from their faceoff. The 60 percent that Mayweather secured from pay-per-view buys netted him $220 million, the most money ever made by an individual in a single event.
The remaining $80 million that Floyd made this year came from two main sources: less-significant matches that netted him at least $60 million and endorsements from Burger King, FanDuel and Hublot, which totaled $15 million in revenue.
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972e720b090d538145823179669c6d7c | https://www.cnbc.com/2015/09/17/billionaire-ken-griffin-buys-200m-condo-complex.html | Billionaire Ken Griffin buys $200M condo complex | Billionaire Ken Griffin buys $200M condo complex
VIDEO0:4300:43Ken Griffin drops $200M on NYC penthouse
Hedge fund billionaire Ken Griffin has purchased several floors of a new condo tower in Manhattan for around $200 million, in what is believed to be the most expensive single residential real estate deal in U.S. history.
According to people familiar with the situation, Griffin recently bought three entire floors of 220 Central Park South, a condo tower under construction in midtown Manhattan. The triplex, which will be located on midlevel floors of the 65-story building, includes a main residence as well as separate units for staff, household help and guests. Altogether, the various units will total more than 18,000 square feet.
Kenneth GriffinAmanda Gordon | Bloomberg | Getty Images
A spokesperson for Griffin declined to comment. Earlier reports said Griffin bought the penthouse at 220 Park, though sources said that information is incorrect.
The deal is part of a larger possible New York expansion for the Chicago-based Griffin and his hedge fund. Citadel is in the process of looking for more space in Manhattan, and press reports say the firm recently signed a deal to lease 200,000 square feet at 425 Park Avenue, an office tower under construction between 55th and 56th streets.
Commercial real estate brokers said that under terms being discussed, part of the space being considered would lease for $300 a square foot, which would be a record in New York City.
$100 million zombie homes may signal market top
If the deal goes through, Griffin would break two records in the same year—the most expensive residential and commercial deals in New York City.
People familiar with the situation said Griffin recently moved into a different apartment in New York, and that the new triplex would be an investment rather than a residence. Either way, he wouldn't be moving into 220 Central Park South anytime soon, since the building is scheduled to be completed at the end of 2016 or early 2017. The 950-foot tower, designed by famed architect Robert Stern, has become the "it' building among global billionaires looking for status pads in New York.
The deals also come amid Griffin's contentious divorce. He and Anne Dias are battling over financial terms and child support for their three children.
In court filings, Dias said Griffin earns a gross income of $100 million a month, or around $68.5 million a month after taxes. As part of the divorce proceedings, Griffin is trying to block an effort by Dias to have sole custody of the children and move to New York.
The Griffins also have homes in Aspen, Colorado, Hawaii and Florida. According to the Chicago Tribune, Griffin bought two full-floor condos at the Waldorf Astoria in Chicago last year for nearly $30 million. The couple also owns multiple full-floor units at the nearby Park Tower in Chicago.
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1e09472fed6bb9737a673d3ff3c50b79 | https://www.cnbc.com/2015/09/17/christmas-holiday-forecast-calls-for-modest-growth.html | Calling Christmas before you've started shopping | Calling Christmas before you've started shopping
Shoppers browse sale merchandise at a Sears store in Peoria, Illinois.Daniel Acker | Bloomberg | Getty Images
Labor Day has barely come and gone, but that hasn't stopped one analytics firm from issuing the first of many Christmas holiday sales forecasts that will be released over the next few months.
According to ShopperTrak, which compiles sales and traffic data from the 80,000 tracking devices it has in bricks-and-mortar stores, retail sales in November and December are expected to rise 2.4 percent.
The prediction accompanied ShopperTrak's back-to-school results, released Thursday, which found that August sales rose 4.7 percent. That was despite 2.7 percent fewer visits from shoppers. And in July, sales increased 4 percent compared to the prior year.
"Several trends indicate a successful November and December, including the rise of the educated consumer—who visits the store less but buys more—and the lengthening of the shopping season," said Kevin Kearns, ShopperTrak's chief revenue officer.
Last year, ShopperTrak said holiday sales increased 4.6 percent, topping its forecast for 3.8 percent growth and representing the biggest gain since 2005. That year, sales registered 5.2 percent growth.
Some shoppers actually like Christmas creep
To be sure, there is still a lot of time before the holiday shopping season kicks off in earnest. For one, the Federal Reserve on Thursday will announce whether it will raise interest rates, and if so, by how much. Some experts worry that rate hike could cause shoppers to reign in spending.
Analysts have also expressed concern about fluctuations in the U.S. stock market, which could weigh on consumer confidence.
Earlier this week, outplacement firm Challenger, Gray & Christmas predicted retailers would hire roughly 755,000 seasonal employees during the final three months of the year, about the same as last year.
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9e55329b60ba6fdc466e96c514c6a3f7 | https://www.cnbc.com/2015/09/17/did-the-federal-reserve-make-the-right-decision-today.html | Did the Federal Reserve make the right decision on Thursday? | Did the Federal Reserve make the right decision on Thursday?
The Federal Reserve held its key federal funds rate unchanged.
Did the Federal Reserve make the right decision on Thursday? Take our poll below.
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3d6ff190ae9d231510797dc4c697739c | https://www.cnbc.com/2015/09/17/dollar-nurses-losses-after-fed-refrains-from-rate-hike.html | Dollar recovers from three-week low in technical rally | Dollar recovers from three-week low in technical rally
Getty Images
The dollar rebounded from a three-week low on Friday, a day after the Federal Reserve kept U.S. interest rates on hold, in a late technical rally after a steep sell-off the previous session.
The Fed decision largely disappointed investors who wanted to get the process of normalizing rates going even at a gradual pace. It was largely expected though.
However, it was the Fed's dovish message, specifically the uncertain global growth outlook that could weigh on the world's largest economy, that took the market by surprise.
Market participants had anticipated two scenarios: a Fed hike with dovish undertones, or no move, but with upbeat comments about the U.S. economy.
Investors continued to sell the dollar earlier in the session before taking profits on their long positions in other currencies such as the euro and yen.
VIDEO2:3802:38Hedge funds moving away from FX speculation: PrincipalSwiss Franc
"This is nothing more than a technical correction in the dollar," said Omer Esiner, chief market analyst at Commonwealth Foreign Exchange. "The Fed's decision has introduced heightened volatility in the market."
Markets have reduced expectations for a rate increase this year, which could dim the short-term outlook for the dollar.
Rates futures placed an 11 percent chance on Friday that the Fed would raise rates in October, down from 41 percent early on Thursday, according to CME Group's FedWatch program.
A December move by the Fed had a 42 percent chance, with traders putting a 52 percent probability for a rate increase at the Fed's late-January meeting.
In late trading, the dollar index was up 0.7 percent at 95.191, after dropping to a three-week low of 94.063.
Read MoreEuro zone fears for bailout if Fed hikes rates
Some analysts expect the dollar to bounce back in the near term as soon as it becomes clear that the Fed is ready to end its zero-rate policy.
"With the Fed still projected to hike later this year, we expect the dollar to perform relative to currencies such as the euro, yen and sterling in coming months," said Allan von Mehren, chief analyst at Danske Bank in Copenhagen.
The prospect of loose monetary conditions for longer reignited investors' appetite for riskier currencies such as the Australian and New Zealand dollars, which gained.
The Australian dollar was up 0.3 percent against the greenback at US$0.7189, while the New Zealand dollar also rose 0.3 percent, to US$0.6400.
The euro was down 1.2 percent against the dollar at $1.1294 after hitting a three-week high of $1.1459.
Against the yen, the dollar was flat at 119.96 yen.
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82b7a2d651470c6c6acf77c04aa86e0b | https://www.cnbc.com/2015/09/17/experts-say-dont-forget-about-africa-asia-amid-fed-hype.html | Fed up with Fed hype? Check out these ideas instead | Fed up with Fed hype? Check out these ideas instead
Oshodi market in Lagos, Nigeria.Pius Utomi Ekpei | AFP | Getty Images
Amid all the hype surrounding U.S. interest rates, finance veterans at the Milken Institute's Asia Summit reminded investors not to ignore profitable themes in high-growth emerging regions.
"The key is to try and see the future...A U.S. interest rate increase of 25 or even 50 basis points doesn't make any difference," noted Michael Milken, the former junk-bond king who is chairman of the institute that bears his name.
What does make a difference is education, skills for the future, and jobs of the future, said the man who is considered one Wall Street's most successful come-back stories after his 1990 conviction for securities fraud.
Such comments aren't the norm at finance conferences but then again, the Milken Institute's annual affair isn't just your typical convention. The summit is geared towards human capital and how financial markets can address urgent social and economic problems.
"The growing middle class in Asia is one of the dominant stories of the world, and the youth and rising population of sub-Saharan Africa will be the next major global change over the next few decades," Milken said.
Read More"Challenging time" for South Africa's economy: FinMin
Medical research and public health have been two of the primary drivers of global growth but sub-Saharan Africa has yet to benefit from that, he added. Pointing to Southeast Asia's booming retail market as an example, he explained how health improvements helped the region increase life expectancy by nearly 70 percent in two generations.
"If you're living longer, healthier lives, ultimately you will become a consumer," he said, suggesting that medical advancements could do the same for Africa.
VIDEO4:5304:53Milken: Africa's potential is enormousSquawk Box Asia
Indeed, a Pew Research Center survey on Thursday indicated that the majority of Sub-Saharan countries surveyed identified improving health care as their number one priority.
"Africa is an area of opportunity for asset managers like ourselves to engage in as those capital markets develop,' echoed Thomas Finke, chairman and CEO of Babson Capital Management.
Finke, who says he "doesn't take [U.S] rate bets," is looking at investing in African infrastructure, private equity, as well as sovereigns and corporates.
The Federal Reserve's decision is undoubtedly relevant for emerging markets (EMs) but the sector can still remain attractive in the face of higher interest rates, experts said.
Read MoreChart: How well buffered are EMs now?
"Our clients are now looking for opportunities in EMs, albeit very selectively," noted Sheila Patel, CEO of International at Goldman Sachs Asset Management. "They look for drivers in each economy."
She said her clients were interested in the movement of manufacturing out of China into Southeast Asian nations such as Thailand, Indonesia and Malaysia, despite the latter two being named the most vulnerable to a U.S. rate hike.
Internet and e-commerce plays are another major theme of interest, she noted.
"If you look at Chinese e-commerce and the billions of transactions that go on every year and similar companies in India, Southeast Asia, it's in the millions," Patel said. "Clients see the huge opportunity in that and that's the type of thing they want to invest in."
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42865853149a497d05daac070ccd0412 | https://www.cnbc.com/2015/09/17/fed-holds-rates-steady-asia-responds.html | Global markets unconvinced by Fed inaction | Global markets unconvinced by Fed inaction
VIDEO5:2605:26Thiam: Welcome normalization as soon as possibleStreet Signs Asia
VIDEO3:1003:10Is the Fed's caution causing market volatility?Worldwide Exchange
VIDEO3:3003:30Analyzing the Fed's decision to stand pat on ratesSquawk Box Asia
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VIDEO1:4801:48Are we on the cusp of a currency war?Worldwide Exchange
If the Federal Reserve hoped its decision to keep interest rates steady on Thursday would soothe frayed nerves at home and overseas, it's likely to be disappointed.
While a delay in a rate rise on paper should help support risk assets, markets were left wanting after Fed Chair Janet Yellen's statement, which did little to offset investor uncertainty or encourage on the health of the domestic U.S. economy.
Read MoreThe Fed may have just stoked a 'currency war'
A trader on the floor of the New York Stock Exchange reacts to news that the Federal Reserve decided to not raise interest rates on September 17, 2015 in New York City.Getty Images
The U.S. Federal Reserve cited concerns over the global economy and financial market volatility among the factors that played a role in keeping interest rates near zero.
Europe's markets slumped on Friday following a sell off in Japanese stocks and average gains in Asia. The EuroStoxx 600 traded over 2 percent lower. French and German stocks both tumbled in excess of 3 percent in the afternoon trading in the aftermath of the Fed's decision to hold rates.
U.S. stocks followed suit, plunging more than 1 percent pressured by concerns over the implications of the Federal Reserve's decision to leave short-term interest rates unchanged.
"If the Federal Open Market Committee's objective was to convey confusion, it has succeeded, thereby ploughing a deep furrow of instability and destabilization, and shining a very bright light on the large debt and liquidity trap it and other G7 central banks have spent seven years crafting," said Marc Ostwald, strategist at ADM Investors Services.
Speculation on the Fed's move has kept markets on edge for months and, along with China growth fears, has caused severe volatility across most asset classes, with global stock markets losing a hefty $5 trillion of their value in 6 days in August according to Deutsche Bank.
From the summer peak to August low, global equities fell by around 12 percent, mostly in the week leading up to the 'Black Monday' mini-crash on 24 August. Many equity markets fell by 20 percent from their previous highs, putting them in official 'bear market' territory, with China leading the way.
Read MoreFrom jittery to joyful, bond markets cheer Fed
Now markets are looking to the new "dot path" which details Fed members' projections for interest rates in the world's biggest economy and are studied by traders to try and figure out the future path of interest rates.
The dot plot now shows the path for rates to be more dovish. In June the median dot indicated rates of 1.625 percent by the end of 2016, while the current median dot is at 1.375 percent.
"A dovish and dithering Fed inspires little confidence The Fed's decision to leave rates on hold was not a surprise to a market positioned that way but the tone of the statement and the new lowered 'dot-path' (median sees one hike this year, four in 2016, five in 2017 and three in 2018 for a 3.375 percent Funds rate peak) have dragged Treasury yields down. That is not dollar-supportive," said macro strategist at Societe Generale, Kit Juckes.
"However, any bounce in risk assets will be short-lived," Juckes said, adding that in currency markets, the Yen "could be the biggest winner" if the risk mood sours.
The dollar hit a three-week low against a basket of major currencies on Friday after the Fed's decision, while gold rose to a two-week high of $1,136.
In Asia, many economies now expect more market volatility ahead as the build-up to a U.S. rate hike continues.
In Japan, where the Nikkei 225 ended 2 percent down ahead of an extended weekend, Finance Minister Taro Aso told reporters after a cabinet meeting the decision to stay on hold likely reflected opinions of emerging economics voiced at the latest G20 meeting.
The summit of the Group of 20 nations in Turkey earlier this month saw several nations, including the Brazil, Russia, India and China, raise concerns that rapid U.S. rate hikes could cause a global economic slump.
"No doubt low U.S. interest rates have supported growth in emerging economies... but keeping rates below 1 percent for such a long period of time is abnormal," Aso also added.
China's markets, whose turmoil has been a major contributory factor to the Fed's decision, were slightly higher in Friday trading. Hong Kong's Monetary Authority Chief Executive, Norman Chan, also doesn't believe the ultra-low environment in the U.S. is likely to last long.
"I see capital flowing out of emerging markets to Europe and the U.S. [amid signs of rate-normalization], but the pace of outflows from Hong Kong will remain slow," he said.
Meanwhile, the Reserve Bank of Australia Governor Glenn Stevens told a parliamentary hearing that in spite of the inaction this month, the Fed is "probably" on course to raise before Christmas.
"It's also worth noting that the performance in the U.S. continues to improve. Everyone knows that, eventually, this will have to be reflected in less accommodative monetary policy."
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44bd83996ac2466ba983475b33e3f265 | https://www.cnbc.com/2015/09/17/gold-set-to-snap-3-wk-losing-streak-as-fed-holds-rates-steady.html | Gold at near 3-week high as Fed rate decision weighs on equities | Gold at near 3-week high as Fed rate decision weighs on equities
AP
Gold rose to a near three-week high on Friday as the Federal Reserve's decision to leave U.S. interest rates unchanged rattled investors' outlook on the global economy and weighed on equity markets in developed economies.
was up 0.6 percent at $1,137.80 an ounce, after earlier touching its highest level since Sept. 2, at $1,141.50. Gold was on track to finish the week up around 2.7 percent, snapping a three-week losing streak.
The Fed kept interest rates unchanged on Thursday in a bow to worries about the global economy, financial market volatility and sluggish inflation at home. It left open the possibility of modest rate rises later this year.
"More supportive is the perception that the Fed seems to have lost a little confidence itself in the rate hike cycle," said Macquarie analyst Matthew Turner. "But we still think there will be a hike in December and therefore rallies are going to be capped."
VIDEO2:4402:44What the fed means for goldFutures Now
A majority of Wall Street's top banks now expect the Fed to begin increasing rates in December, according to a Reuters poll conducted on Thursday after the Fed's policy decision.
"The later the Fed starts hiking, the more the weakness in gold prices will be shifted towards next year," said Georgette Boele, an ABN Amro analyst. "We are negative about gold mainly because we expect lower demand from investors."
The Fed also forecast that inflation would creep only slowly toward its 2 percent target, which could be seen as a negative for gold, often bought as an inflation hedge.
The dollar slumped to a three-week low against a basket of major currencies before later turning higher, while bonds rose, pushing yields sharply lower.
Read MoreEven a best-case Fed scenario might not save gold
"The Fed's hesitancy may yet reinforce investors' worries about the health of the global economy, rather than reassure them, leaving gold as one of the few lasting beneficiaries," Capital Economics said in a note.
On the physical side, gold discounts in India, the world's second-biggest consumer, widened this week as dealers struggled to offload stocks amid sluggish demand.
Chinese premiums held steady at $5-$6 despite the overnight jump in prices.
Silver was flat at $15.12 an ounce.
The longer-term outlook for the metal remains bearish, Julius Baer analyst Carsten Menke said in a note, due to its dependence on gold's movements and investment demand.
Platinum fell 0.5 percent to $975.75 and palladium was down 0.2 percent at $606.50.
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caaf806fc414f4a811da80aee197c4ce | https://www.cnbc.com/2015/09/17/marriott-guests-use-virtual-reality-to-travel-the-world.html | Marriott guests use virtual reality to travel the world | Marriott guests use virtual reality to travel the world
VIDEO0:2900:29Marriott goes virtual in NY and London
If comfy beds, fluffy towels and power plugs aplenty aren't enough for guests in New York and London, Marriott Hotels is happy to send them someplace else—in a virtual sense.
The hotel's "VRoom Service" test program runs through Sept. 23 at the New York Marriott Marquis and the London Marriott Park Lane. The pilot offers its guests room-service delivery of a virtual reality loaner kit, valued at about $900, and stocked with Samsung Gear VR headsets.
Marriott's devices are preloaded with short 360 three-dimensional (3D) virtual visits to the Andes Mountains in Chile, an ice cream shop in Rwanda, and the streets of Beijing. Called "VR Postcards," the one- to two-minute episodes run on Samsung's Milk VR open platform, and feature real travelers sharing stories about how much they learn from and value travel.
The program "uniquely combines storytelling and technology," said Michael Dail, Marriott Hotels' VP of global marketing. The headsets are "the newest way we're enhancing the in-room guest experience."
VRroom Service is but one of Marriott's menu of tech-forward amenities, which include a mobile application that lets guests request services and amenities, and its recently announced in-room streaming for subscribers of Netflix, Hulu Plus, Pandora, Crackle and YouTube.
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Nor is the hotel chain the only travel-oriented company experimenting with VR. Earlier this year, Qantas also turned to Samsung's headsets to offer first-class passengers a virtual in-flight experience. The company told CNBC this week that it added a new video feature that transports passengers via VR to the Great Barrier Reef.
In an out-of-room preview of possible travel-related virtual reality applications, last September, Marriott sent a 4-D "Teleporter" on an eight-city tour. Using Oculus Rift technology, passersby can step into a science fiction-inspired booth to "experience" a beach in Hawaii, and the view from a London skyscraper.
"We are disrupting our own industry, as we want to be the first to define the next-generation hotel experience," said Dail.
Frequent traveler and tech consultant Frank Catalano said he would welcome VR Postcards that offer tips on little-known must-sees in the city he's visiting. Yet for now, Dail says Marriott is more interested in using the technology to show "how others use travel to open their minds and what they take away from their trips, both professionally and personally."
Source: Marriott
Marriott is also hoping to catch the attention of the much sought-after millennial traveler.
"So many of our millennial guests are content creators themselves," Dail said. "We are interested to see how they use this technology and if they're inspired by the immersive aspects of virtual storytelling, as the technology is advancing so quickly."
Marriott is not the only brand bringing high-tech touches to the guest room, but at least for now, a few observers think the hotel chain has the competitive edge.
"Others are active, but not with the scope of Marriott," said Bjorn Hanson, a clinical professor at New York University's Preston Robert Tisch Center for Hospitality and Tourism. Marriott has been a leading innovator with lodging concepts, said Hanson, "but generally with a conservative approach and clear objectives."
With so many lodging choices for travelers, "anything and everything that can create a distinction, appeal to a need or preference or offer an experience" can give a hotel an edge with consumers, he added.
—Harriet 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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78f851e20e93dc446525e9f5cda85b3a | https://www.cnbc.com/2015/09/17/retirement-confidence-is-up-but-why.html | Retirement confidence is up, but why? | Retirement confidence is up, but why?
VIDEO1:2101:21When To Convert a Traditional IRA to RothIRA
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Savers in several countries "experienced a dramatic increase in their confidence that they would meet retirement goals," according to a new survey commissioned by State Street Global Advisors. Some 51 percent of U.S. investors participating in an employer–sponsored retirement plan said they were very or extremely confident they will meet their retirement goals, up from 21 percent in 2013. (Tweet This)
The survey was conducted just months after the Employee Benefit Research Institute, or EBRI, and Greenwald & Associates conducted a 2015 Retirement Confidence Survey, which found 22 percent of workers very confident about having enough money for a comfortable retirement, up from 13 percent in 2013.
"The major change in the United States is the continuing improvement in the economy, with unemployment moving down and so forth," said Fredrik Axsater, head of global defined contribution for State Street Global Advisors.
Can a doctored photo save your retirement?
But dig deeper and it becomes clear that even if confidence is rising, it may not be spreading more widely.
The increase in retirement confidence comes almost entirely from Americans who report having a retirement plan, either an IRA, a traditional pension plan, or some kind of defined contribution plan, such as a 401(k) plan, according to the EBRI and Greenwald & Associates survey. In 2013, 14 percent of that group was very confident about having enough money for a comfortable retirement, and two years later, that share doubled.
In contrast, among the 32 percent of Americans who reported not having a plan, just 12 percent in 2015 were very confident about having enough for a comfortable retirement, which the report said was statistically unchanged from 2013. (Tweet This) IRA accounts are widely available, but only slightly over half of all American workers work for employers or unions sponsoring a retirement plan.
There is also the matter of how much Americans have actually saved. A 2015 study by the National Institute for Retirement Security, using data from the Federal Reserve's 2013 Survey of Consumer Finances, found that across all American households, including those without retirement accounts, the median retirement account balance is $2,500, and for households near retirement, $14,500. Even including households' entire net worth in retirement readiness calculations, the study found that 66 percent of working families are below a conservative savings target for their age and income.
"The typical American household was further behind in retirement readiness in 2013 than in 2010 and 2007," the study said.
How much should you set aside for retirement?
Jack VanDerhei, EBRI's research director, pointed to another reason why growing retirement confidence may not be all good news: The people who are feeling more confident may be making poor assumptions about the future.
"If you've got a plan," and thus are part of the group feeling more optimistic, "you're much more likely to have participated in the equity market's increase in 2014," he said. "Is it rational if you've had an increase in equities for a single year to think your retirement prospects have exponentially increased Obviously, I would say not, but people have a tendency to extrapolate."
The result of that thinking, VanDerhei said, can be false complacency.
"From a public policy standpoint, it's probably a better thing for confidence to go down, especially among individuals who really are not on track. If their confidence goes down, we've at least got a chance that they are going to change their behavior."
These retirement plans have the highest fees
One way to promote more widespread retirement confidence is to improve access to retirement savings vehicles, said State Street's Axsater. He pointed to Britain as an example, since that country in 2012 established mandatory automatic enrollment in retirement plans.
"In the U.K., when you have greater access and people are participating in a plan, confidence goes up," he said.
A similar shift is possible in the United States, Axsater said, pointing to efforts by states to create state-based retirement plans for residents without access to workplace plans. Those plans, he said, could facilitate retirement saving for "millions of Americans, and that is something we are fully behind."
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b2d8442499d14bbfa673eacc89fc1b73 | https://www.cnbc.com/2015/09/17/take-a-look-at-the-new-fed-dot-plot.html | Take a look at the new Fed dot plot | Take a look at the new Fed dot plot
The Federal Reserve building in Washington, D.C.Bria Cousins | CNBC
The targets for appropriate federal funds rates by FOMC participants is plotted in a chart that has come to be known as the "dot plot." (Tweet this)
Here are the Fed's latest September targets, released in Thursday's statement:
Read More Did the Federal Reserve make the right decision today?
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a6f688d8be13452ad1f7d6bdb50c1026 | https://www.cnbc.com/2015/09/17/us-crude-prices-dip-opec-targets-market-share.html | US oil tumbles 4.7% to settle at $44.68 a barrel | US oil tumbles 4.7% to settle at $44.68 a barrel
VIDEO1:2401:24Commodities next week: Wild swings continueFutures & Commodities
U.S. oil prices fell about 5 percent on Friday after U.S. energy firms cut oil rigs for a third week in a row this week, data showed on Friday, a sign the latest crude price weakness was causing drillers to put on hold plans announced several months ago to return to the well pad.
The drop comes amid increased concerns about the outlook for energy demand. The U.S. central bank warned of the health of the global economy and bearish signs persisted that the world's biggest crude producers would keep pumping at high levels.
Drillers removed eight rigs in the week ended Sept. 18, bringing the total rig count down to 644, after cutting 23 rigs over the prior two weeks, oil services company Baker Hughes Inc said in its closely followed report.
Those reductions cut into the 47 oil rigs energy firms added in July and August after some drillers followed through on plans to add rigs announced in May and June when U.S. crude futures averaged $60 a barrel.
Read More The biggest winners off of the Fed decision
U.S. West Texas Intermediate (WTI) crude futures settled down 4.7 percent at $44.68 a barrel. Brent crude was down $1.80, or about 4 percent, at $47 a barrel.
VIDEO0:4400:44Oil closes down nearly 5%
U.S. oil prices, however, have averaged $46 a barrel so far this week, up a bit from the $45 average last week.
In response to falling prices, U.S. oil production has declined over the past several weeks with output down to about 9.1 million barrels per day last week from an average 9.6 million bpd from late May to mid July, the highest since the early 1970s, according to government data.
Read More
"The current rig count is pointing to U.S. production declining sequentially between the second quarter of 2015 and the fourth quarter by 250 thousand barrels a day," analysts at Goldman Sachs said in a note.
Those output reductions occurred months after U.S. energy firms slashed spending, cut thousands of jobs and idled around 60 percent of the record 1,609 oil rigs that were active in October 2014 as prices collapsed from around $107 a barrel in June 2014 to under $44 in January on lackluster global demand and lingering oversupply concerns.
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7ddcf6311d274512e5027fe5019de0a5 | https://www.cnbc.com/2015/09/17/warrnambools-middle-island-maremma-project-crowdfunding-for-penguin-guards.html | The cutest crowdfunding campaign ever | The cutest crowdfunding campaign ever
Eight-year old maremma dogs, Eudy and Tula.Middle Island Maremma Project
On Middle Island in Warrnambool, Australia, there is a peculiar conservation solution involving little penguins, marauding foxes and maremma dogs.
A world first, the Middle Island Maremma Project began in 2006 with the introduction of maremmas to protect little penguins that were being hunted by foxes.
As their name suggests, little penguins are the smallest species of penguins, standing just 40cm tall and weighing about 1kg. They are only found in southern Australia and New Zealand.
Maremmas, meanwhile, are a breed of dog indigenous to central Italy, where they have been used for centuries to guard flocks from wolves. These canines, with their bear-like heads and thick white coats, are known to be highly independent and calm but fiercely protective of their flocks.
Little PenguinsGetty Images
In 2005, the penguin colony, which remains on the island over breeding season, had been reduced by fox attacks to fewer than 10 identified birds, down from a peak of an estimated 800 penguins in 1999. A urgent conservation solution was clearly required.
Allan Marsh, a local chicken farmer, had an idea. He used maremmas to protect his free-range chickens from fox attacks, so volunteered his own chicken protector, a dog named Oddball, as the first trial dog to protect the penguins. Penguins, after all, were really just "chooks in dinner suits" to the foxes, he noted, referring to the Australian slang word for chickens.
The project, which launched in 2006, was a raging success.
"Previous methods involved poison baits, traps and shooting, but it only takes one fox to encroach the island to result in multiple penguin kills," said Peter Abbott, a maremma dog trainer and manager of tourism services in the Warrnambool City Council.
Since the introduction of the unique conservation program, not a single penguin has been lost to foxes, according to Abbott.
Read MoreKangaroos Can Fly!... with a doctor's note
The project even inspired 'Oddball', an Australian movie that premiered this week about the first canine penguin guardian.
Now the Middle Island Maremma Project needs new penguin-guards. The project hopes to raise about A$25,000 on the Pozible crowdfunding platform, which will be used to buy and train two maremma puppies, as the current eight-year old patrol dogs Eudy and Tula prepare for retirement.
"We like the crowdsourcing option as it gives us the opportunity for a wide audience to get involved, as well as showcase the project in an interesting and positive manner," said Abbott.
"[The puppies will] learn the smells and shapes of the penguin along with learning they are a normal part of island life…the dogs instinctively learn to protect the island from anything unusual such as foxes."
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8a42926c6b4b9f5a525fe9e79df50f0e | https://www.cnbc.com/2015/09/17/wells-fargo-ceo-our-goal-is-not-to-make-money.html | VIDEO9:0509:05Wells Fargo CEO: Our goal is NOT to make money Mad Money with Jim Cramer
While Jim Cramer was happy that Fed chief Janet Yellen decided to keep interest rates low on Thursday, there is one group that could have really benefitted from a rate hike. That is the banks, because they make more money from customer deposits when the Fed raises short-term rates.
"Sooner or later, though, the Fed will start tightening, and when that happens you will want to own the best bank in the country, the San Francisco-based Wells Fargo," the "Mad Money" host said. (Tweet This)
In fact, Cramer thinks Wells Fargo could be worth the wait because of its large deposit base, exposure to the mortgage market, streamlined business and fantastic management. That is exactly the reason why Cramer owns Wells Fargo in his charitable trust.
To find out what could be in store for this Cramer-fave bank going forward, Cramer spoke with Wells Fargo Chairman and CEO John Stumpf.
Our number one goal when we get up in the morning is not about making money, it's about serving customers. That is the reason for a business. The result is you make moneyJohn StumpfChairman & CEO, Wells Fargo
John Stumpf, CEO of Wells FargoAdam Jeffery | CNBC
Cramer pointed out that what makes Wells Fargo unique is that it has stated that it will not wait for the Fed to move, it will do things to make money that many other banks are not doing.
"We actually went out last quarter and said we think rates could be lower for longer. We don't speculate on rates, but we do have views on things," Stumpf confirmed.
The CEO explained that in his opinion, the Fed's commentary and lack of action on Thursday was actually a statement about the rest of the world. If the United States was viewed in isolation, then it is actually doing OK. However, when taking the global economy and lack of exports into consideration, that could take a point off of U.S. GDP growth.
So, how the heck could Wells Fargo make money with lower rates? By being opportunistic in a decline.
"How you behave, and how you think about credit and serving customers in the boom times will allow you to have the capital and the capacity when the real opportunities come in the bad times," Stumpf said.
As an example, Stumpf explained that in 2008 there were other mortgage lenders were making loans with little verification or deposit requirements. Wells Fargo did not participate in most of that activity, which allowed the company to use its capital to purchase Wachovia when things fell apart. Stumpf added that a large acquisition such as that could probably never happen again in the industry.
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"We are essentially a main street bank. We do traditional banking. Some of it is quite sophisticated, but we are not a money center bank. We don't corner aluminum markets; that's not who we are," Stumpf added. (Tweet This)
Ultimately, the CEO's goal for Wells Fargo is not to make money. It is the thought process behind how the company goes to market and managing risk that will make the difference.
"Our No. 1 goal when we get up in the morning is not about making money, it's about serving customers. That is the reason for a business. The result is you make money," Stumpf said.
Questions for Cramer? Call Cramer: 1-800-743-CNBC
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Questions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com
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ab1ddd44c6b3dcb1fa64a84a4d6f23e3 | https://www.cnbc.com/2015/09/18/5-big-risks-that-could-derail-global-markets.html | 5 big risks that could derail global markets | 5 big risks that could derail global markets
Artur Marciniec | Getty Images
A lot of investors breathed a sigh of relief on Thursday after the Fed decided to hold interest rates steady. While it will happen eventually, a number of financial experts say an increase in rates could derail global markets.
With our world more intertwined than ever before, what happens in America could impact the rest of the world. Conversely, a further slowdown in China or political upheaval in Europe could impact the U.S. and other international markets.
While the global economy is still projected to expand by about 3.3 percent this year, according to the IMF, there are several risks that could impact the global economy and its stock markets.
If anyone's been paying attention to the news lately, they'll know that China has been in a heap of trouble. Its stock market is wobbly, people aren't sure whether its growth projections are accurate, corporations are carrying loads of debt, and the list of issues goes on.
To Eric Lascelles, chief economist at RBC Global Asset Management, what's happening in China presents the biggest risk to world markets and, more specifically, its debt issues.
This year the country's corporate debt levels hit 160 percent of GDP, which is twice as high as America's corporate debt levels, while Standard & Poor's estimates that China's corporate debt will climb by 77 percent, to $28.8 trillion, over the next five years.
Much of that debt has been concentrated in the country's booming housing market, said Lascelles, and while the government is helping out local governments and companies, non-performing loans on Chinese banks have grown by 57 percent over the last year, he said.
It's still a low base—only 1.5 percent of loans aren't being paid, he said—but those growth rates are rising. If this does become a larger problem, then economic growth could slow even further, which, with China being the second-largest economy in the world representing about 16 percent of global GDP, would have an impact on all of us, Lascelles explained.
While most people expect the Federal Reserve to raise rates before the end of the year, a move in the overnight rate could still create volatility on a global stage, said Lisa Emsbo-Mattingly, Fidelity's director of research for global asset allocation.
A lot of people think that the base rate will simply be increased by about 25 basis points and that everything will look like it does now. However, bond rates bounce around and aren't as stable as people may think, and that could cause uncertainty.
As well, the U.S. government balance sheet is "extremely large," she said, and any rise in rates will impact the bonds it holds.
Read MoreDollar tumbles as Fed holds rates steady
"The technicalities of this may be more complex than what we've seen in the past," she said. "We'll see how the market reacts to a little more uncertainty in the Fed funds rate and short-term rates."
One of the consequences of a rising Fed rate could be an illiquid global bond market. Why? Because when rates rise, bond prices fall, and who wants to buy a security that's falling in price?
That's one of Jeff Mortimer's concerns. The director of investment strategy for BNY Mellon Wealth Management is worried that when people try to sell their bonds into a rising rate environment, there won't be any takers.
Read MoreThe Fed's real inflation problem
Regulation, he said, has already pushed traders out of the bond market, so there aren't as many people buying and selling fixed-income instruments as it is.
"We know that there are less people taking the other sides of trades, so how will the bond market handle selling pressure?" he questioned.
An illiquid market could impact global markets in two ways. First, bond prices will fall even farther than they should. And second, if people can't sell their bonds, they may start selling other assets.
"If you can't sell bonds, then what are you going to sell?" he asked. "You'll sell equity—that's a lot of what transpired in 2008."
VIDEO3:0703:07What's behind Fed's rate decision?Squawk Box
Over the last year, the greenback's value has steadily climbed. It's up 20 percent against the Canadian dollar, 14 percent against the euro, 10 percent against the yen and so on.
There are multiple sides to the U.S. dollar story, said Lascelles. Some countries, like Canada, Europe and Japan, like having a weaker currency as it helps exports, but emerging markets countries do not.
Many of them use American dollars to fund day-to-day operations, and if buying those dollars gets pricier, then they could find themselves strapped for cash.
As well, a too-strong dollar is bad for the U.S. It reduces its global competitiveness, and that ultimately limits economic expansion.
It's also bad for multinationals who make money in other countries and have to convert those dollars back to American bucks.
"There's no debating that a stronger dollar is negative for growth," said Lascelles.
Politics is always a risk, but Lascelles has been seeing greater shift to far right and far left politics than he has in the past.
Some of it may be just rhetoric, such as Rand Paul's "audit the Fed" bill, but with Greece's rebuff of the IMF and more right- and left-leaning parties getting into power, people have to wonder if the right economic policies will ultimately be put in place.
While he can understand why more populous ideas are being bandied about—rising unemployment and continued economic challenges is causing citizens and governments to think differently—rejecting sound economic policies will slow growth and make it difficult to ultimately reform, he said.
"A healthy does of skepticism is appropriate," he added, "but in the end these are mostly unwelcome and can jeopardize an economy."
—By Bryan Borzykowski, special to CNBC.com
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d7d8405a5f05a844f837c5efba908142 | https://www.cnbc.com/2015/09/18/airbnb-pope-visit-new-users.html | Pope visit prompts new wave of Airbnb users in Philadelphia | Pope visit prompts new wave of Airbnb users in Philadelphia
Pope FrancisGiuseppe Ciccia | Pacific Press / LightRocket | Getty Images
Pope Francis is scheduled to make his first visit to the United States next week, where he will visit Washington, D.C., New York City and Philadelphia. The excitement is drawing an interest in the sharing economy as more people are renting out their homes, and sites like Airbnb are seeing a surge of first-time users.
In Philadelphia, some estimates predict as many as 1.5 million visitors will flood the city for the pope. In a city with only 11,500 hotel rooms, it's creating a new demand—though not as much as some might have hoped.
Kathleen Townsend and her three roommates in downtown Philadelphia recently joined AirBnb, based on the hype of the pope's trip. "We heard about all these people doing it and getting thousands of dollars, but we weren't getting as much interest as we thought," she said.
Originally her four bedroom home was listed for $2,000 for a stay between Thursday through Monday. But upon learning the pope would only be in town Saturday and Sunday, they modified their booking requirement, offering the home for around $500 per night instead.
When it was posted specifically for the pope's visit, however, they were contacted by someone looking to stay during the "Made in America" music festival taking place in early September. Townsend and her roommates were going to be out of town that weekend and figured they'd give it a try.
"We were nervous at first because it was young people who were here for a concert and probably drinking…much different than people coming for the pope," Townsend said. "But it worked out great and we'd do it again."
The hype in Philadelphia, prompted the city to become the latest city to legalize rentals through online marketplaces like Airbnb, and require short-term rentals be subject to an 8.5 percent hotel tax.
The pope doesn't care about capitalism
The pope's Philadelphia visit, however, has caused a surge of extra work for Chuck Holmer, one of the managers of the City View II condominiums. Holmer regularly began patrolling sites like Airbnb and Craigslist, catching residents who are trying to rent out their place against the building's policy.
Based on photos and user posts, Holmer can often recognize which unit is being advertised, and then contacts the resident directly to straighten them out.
"I know what units look like and I know what views look like," he said. "I email people saying you need to take it off."
It's prompted the management company to take extreme measures to prevent any outsiders from staying in the building during the pope's visit. "We're requiring any visitors coming is registered ahead of time and we have pictures of them," Holmer said on the upcoming pope's visit and adding that unit owners must be present to greet their guests.
Naturally, some residents have become annoyed that despite them owning their own unit, such policy is so strictly enforced. However, Holmer reiterates it's the policy residents agreed to when moving in.
"I want to protect the resident's quality of life. I don't want the keys to someone who could be a threat to that," he said. "We have a million people coming into town and we don't want a thief among us."
Townsend, who's a rental tenant and lives next door to her landlord, said her experience was much different. "He actually contacted us asking if we we're doing anything and he was looking into it for his own place, so we said we're thinking of it, too."
Despite the green light, Townsend still hadn't found anyone to rent out the residence as of Friday. She is thinking of lowering the price again.
"I think it was over-hyped. We thought it was the whole week when it first came out and we didn't have all the facts and got excited," she said. "I guess we were a little too greedy in the beginning."
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07274b62d475335354257fd3e0128010 | https://www.cnbc.com/2015/09/18/apples-top-selling-app-says-goodbye.html | Apple's top-selling app says goodbye | Apple's top-selling app says goodbye
Mobile phone screens of the Peace appSource: Marco.org
The top paid app on the iPhone is kissing it all goodbye.
Marco Arment, a prominent Web developer who previously co-founded Tumblr, has decided to remove his ad-blocking app called Peace from the Apple App Store after almost two days atop the charts.
Peace and other ad blockers like Crystal and Purify climbed the ranks after Apple said it would let consumers download tools for iOS 9 to keep ads off mobile Web pages.
While the technology removes annoying ads and promotes faster speeds with greater privacy, it also threatens to undermine the business models of many ad-supported publishers.
Public's love for ad blockers infuriating publishers
"Achieving this much success with Peace just doesn't feel good, which I didn't anticipate, but probably should have," Arment wrote Friday in a blog post. "Ad blockers come with an important asterisk: while they do benefit a ton of people in major ways, they also hurt some, including many who don't deserve the hit."
He went on to say that his app doesn't differentiate between good actors and bad, but requires "that all ads be treated the same—all-or-nothing enforcement for decisions that aren't black and white."
Arment is offering refunds for those who purchased Peace, and said consumers who still want to use ad blockers should use Purify or Crystal.
"I know pulling Peace from the store after just two days is going to be an immensely unpopular move, and subject me to a torrent of unpleasantness," Arment wrote. "But that'll end soon enough, and that's better than how I'd feel if I kept going."
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47dbf11c7386fd0594357ee83a4716b8 | https://www.cnbc.com/2015/09/18/bond-yields-drop-as-fed-decides-to-hold-rates.html | Bond yields drop as Fed decides to hold rates | Bond yields drop as Fed decides to hold rates
Federal Reserve Chair Janet Yellen holds a news conference following the Federal Open Market Committee meeting in Washington September 17, 2015.Jonathan Ernst | Reuters
U.S. government debt prices were higher Friday as investors reacted to yesterday's decision from the Federal Reserve to hold off rising rates.
The Fed's Federal Open Market Committee (FOMC) decision was announced yesterday afternoon.
Fed Chair Janet Yellen commented in a briefing that, "In light of the heightened uncertainties abroad and the slightly softer expected path for inflation, the committee judged it appropriate to wait for more evidence, including some further improvement in the labor market, to bolster its confidence that inflation will rise to 2 percent in the medium term."
Treasurys
The Fed last raised rates nine years ago, and Thursday's decision was one of the most anticipated in years, since there was a reasonable chance the central bank could have hiked the cost of borrowing. About half of Wall Street's economists expected a rate hike, even though market expectations were just about 30 percent.
The yield on the benchmark 10-year Treasury note sat lower on Friday, at around 2.143 percent, after closing at 2.217 percent on Thursday. The yield on the 30-year Treasury bond was also lower, at 2.942 percent, after closing at 3.036 percent. The yield on a bond falls when its price rises.
On the data front, U.S. leading indicators rose 0.1 percent in August, below the expected 0.2 percent gain.
--CNBC's Patti Domm contributed to this report
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be7680626106517c3034f11fb29e8820 | https://www.cnbc.com/2015/09/18/buffalo-wild-wings-ending-ads-after-actor-lied-about-sept-11.html | Buffalo Wild Wings ending ads after actor lied about Sept 11 | Buffalo Wild Wings ending ads after actor lied about Sept 11
VIDEO0:3500:35Buffalo Wild Wings pulls TV ad featuring Steve Rannazzisi
Buffalo Wild Wings will stop airing TV commercials featuring comedian Steve Rannazzisi, who said this week that he lied about being in the World Trade Center during the Sept. 11 attacks.
"Upon careful review, we have decided to discontinue airing our current television commercials featuring Steve Rannazzisi," the Minneapolis company said in a statement Thursday.
The New York Times first reported Rannazzisi's admission earlier this week. Rannazzisi, who is also a star on the FXX show "The League," has said in the past that he was working as an account manager for Merrill Lynch on the 54th floor of one of the World Trade Center towers when it was hit with a plane. He and described the "pandemonium" he witnessed when he ran out into the street.
Steve Rannazzisi in a Buffalo Wild Wings video commercialSource: YouTube
In an interview with comedian Marc Maron, Rannazzisi also said six of the 10 members on a basketball team he played on died.
This week, Rannazzisi said on Twitter he was in fact working in another part of the city, and not at the World Trade Center.
"I don't know why I said this," he wrote. "This was inexcusable."
A representative for Rannazzisi, Matthew Labov, said Thursday the actor had no comment following the decision by Buffalo Wild Wings.
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Buffalo Wild Wings said it started airing the most recent ads featuring Rannazzisi in August, after featuring him in ads around March Madness earlier this year.
Sally Smith, CEO of Buffalo Wild Wings, had said Wednesday in an interview with Yahoo Finance that Rannazzisi was selected for the company's marketing because "The League" fit with its image. When working with public figures, she said companies have to consider how to vet them.
"There's always a risk and there's always things that you need to be aware of," Smith said.
Comedy Central also planned to air a stand-up special starring Rannazzisi this weekend. The channel said Wednesday it was evaluating how to proceed, and said it had nothing further to add Thursday.
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2039de6a44d4ecf4961dbc7a326b6aaa | https://www.cnbc.com/2015/09/18/capitalism-is-moral-and-it-works-catholic-priest.html | Capitalism is moral, and it works: Catholic priest | Capitalism is moral, and it works: Catholic priest
Father Robert A. Sirico, President of the Acton InstituteSource: Acton Institute
For those who view free markets as the source of global economic imbalances, Robert Sirico has a simple message: Capitalism should not be confused with unfettered consumption.
In the aftermath of the financial pandemic of 2008—which left the world economy in tatters and helped fuel the rise of critics such as economist Thomas Piketty—that missive has become a much tougher sell than it was during the boom years. Yet Sirico, a Roman Catholic priest and staunch defender of free markets, has remained undaunted in his mission, even as Pope Francis takes aim at the inequalities that have taken root under market economies.
As the Pope prepares for a whistle-stop tour through the Northeast that will have him addressing a portion of the 70 million U.S. Catholics, his recent remarks have stoked a new debate about the morality of free markets. Does capitalist excess constitute the "dung of the devil" or a "subtle dictatorship" that can't be reconciled with widespread global poverty and a struggling working class?
Sirico, however, told CNBC in an interview that free markets are wrongly conflated with the urge to splurge on goods, or idolizing material wealth. Capitalism, Sirico insisted, is far more than that.
"The economic question with regard to morality is a subset of a broader theological question: Is human freedom compatible with religious beliefs?" said Sirico, the head the Acton Institute, a right-leaning think tank that studies the nexus between religion and liberty.
Sirico expressed broad agreement with the Pope on those left behind, but at the same time said laissez-faire capitalism and entrepreneurship is still the best way to address the challenges of poverty and economic need.
"If you love the poor, it's not enough to have good intentions," he said. "You can wish the poor to have bread, but if you don't build bakeries and factories, the poor don't get it."
Read MorePope calls for new economic order, criticizes Capitalism
Mass appeal? S&P launches 'Catholic Values' index
The pope doesn't care about capitalism
Sirico is part of a small but vocal cadre of religious figures whose public work promote the virtues of free markets. He, along with Jewish Rabbi Aryeh Spero, have argued American capitalism is in fact moored in Judeo-Christian tradition and beliefs.
However, the Pope's recent remarks have become a force multiplier for critics of capitalism, many of which promote the belief that governments must be more active in addressing social imbalances. Among those are Piketty, whose 700-page tome "Capital in the 21st Century" quickly became a rallying cry for those who argue in favor of a new economic order, and selling nearly 2 million copies in the process.
For his part, Sirico believes that Pope Francis' arguments have been misconstrued—even as he rejects arguments that boost the idea of economic redistribution.
"The same way that [former Pope] John Paul highlighted the anthropological errors of socialism, the [current] pope is underscoring the anthropological errors of capitalism," Sirico told CNBC. "The most critical statement he made is about the idolatry of money," he said, rather than a wholesale rejection of the free markets.
"Really the economic stuff is less central to the church's self-concept of life, marriage and morality," he added. "Those are the more fundamental question on the basis of his authority."
Sign by Steve LambertSource: Steve Lambert
Yet the University of Southern California graduate—who himself once dabbled in "left-wing movements" before attending seminary and immersing himself in capitalist dogma—said that the standard of life for everyone has risen over the last two centuries.
"In the last 200 years it's been clear that the poor have done better where there is less taxation and more wealth," Sirico said, adding that the true moral quandary was "not equality, it's envy. I'm not envious of Bill Gates if he earned his wealth under the rule of law."
The conflict, he argued, was between two disparate alternatives that allocate wealth and opportunity differently, with radically different outcomes. With statism and capitalism "we have two social paradigms that we have to choose between. If we choose the first, we're going to leave a lot of people behind."
Still, recent statistics frequently point to stagnation and decline at the lower end of the economic spectrum amid a simultaneous accumulation of wealth in the upper strata. Sirico argued those conditions cannot be addressed by government or charity.
"Empirically, what we know is that the poor have risen out of poverty...that's not the result of charity," or humanitarian aid, he said.
Rather, it's the result "of the market globalizing, and having access to goods and services," Sirico said. "That's not very romantic, and we need charity. But charity is not the normative way people rise out of poverty, business is."
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9b9847cd5a7e9b2190e0cefdc40406e0 | https://www.cnbc.com/2015/09/18/chart-experts-fear-fed-whiff-means-back-to-lows.html | Chart experts fear Fed whiff means back to lows | Chart experts fear Fed whiff means back to lows
Getty Images
Global stock indexes are falling Friday morning with the German DAX down 3 percent and the S&P 500 down 1 percent.
Uncertainty reigns with the market plunging 11 percent in late August and then rallying 7 percent during the past three weeks into the key Fed decision to not raise rates Thursday.
CNBC Pro asked chart experts for their take on the current prospects for the market after the significant volatility the past month.
A key adage of technical analysis is the importance of volume to show the veracity of a market move.
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e9a0abd447ccadc49143bc7b801e9276 | https://www.cnbc.com/2015/09/18/chris-christie-gop-shouldnt-waste-ammo-on-each-other.html | Chris Christie: Carly 'rude' & Trump leads—for now | Chris Christie: Carly 'rude' & Trump leads—for now
VIDEO2:4702:47Gov. Christie: GOP needs to focus on winningSquawk Box
VIDEO2:2702:27Gov. Christie: Carly's not going to be treated differently Squawk Box
VIDEO2:4202:42Gov. Christie: GOP playing out of fearSquawk Box
VIDEO3:1503:15Gov. Christie: Tax system rigged Squawk Box
Republican presidential candidate Chris Christie said Friday the GOP hopefuls should quit attacking each other and sharpen their assault on the record of President Barack Obama and Democratic hopeful Hillary Clinton.
Christie said Donald Trump is the frontrunner "for the moment," using the analogy Rick Perry in 2012 was at 30 percent in the presidential polls at the same point in the cycle, and four years later, he's out of the race for the second time.
The Trump factor in Wednesday night's debate gave CNN a network-record 22.9 million viewers, according to preliminary ratings. Fox drew an audience of 24 million last month. CNBC sponsors the next Republican debate on Oct. 28.
Politics is volatile business, Christie told CNBC's "Squawk Box" in an interview—adding that voters reward steady candidates with a serious message. "We know this will come around," he asserted.
The New Jersey governor also defended abruptly telling rival Carly Fiorina in the debate not to interrupt him.
While Christie received high marks for his performance, the former Hewlett-Packard CEO Fiorina was viewed by many observers as the candidate who stole the show.
Read More Who won the GOP's debate? Hint: The one in the dress
In one exchange, Christie said to Fiorina: "Carly, listen. You can interrupt anybody else on this stage, you can't interrupt me."
Asked about whether that was a fair reprimand, "I think she was being rude," Christie told CNBC Friday. "Carly is not going to be treated any differently by me on a debate stage because she's a woman And she wouldn't want it."
He pointed out that he spoke the same way to candidate John Kasich, governor of Ohio, but nobody raised any questions. "I treat women the same way that I treat men," he said. "I tell them the truth. And that's what they want to hear."
Christie also reacted to the firing of United Continental CEO Jeff Smisek amid an investigation into whether Smisek traded favors with the former chairman of the Port Authority of New York and New Jersey.
"I don't know anything about what went on there. Let's not jump to conclusions on things. I learned that when I was a prosecutor," he said. "Nobody knows whether anything went on. Yet in our 'accuse first and apologize later' society we indict, convict in the public medium before anything happens."
The inquiry grew out of the so-called Bridgegate scandal, which resulted in three former Christie aides being charged with engineering massive traffic gridlock in 2013 at the George Washington Bridge, run by the Port Authority, as political retaliation. The governor has not been implicated.
On CNBC Friday, Christie also talked about the economic progress he's made in New Jersey, which traditionally has been a Democratic state.
"We have a tough environment in New Jersey. I'm the first one to admit it," he said. "I wish we would lower taxes more. I vetoed more tax increases than any governor in American history."
He pointed to New Jersey's improving job market, which saw the state unemployment rate fall to a seven-year low of 5.7 percent. However, that's still higher than the national jobless rate of 5.1 percent.
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2ef60992b1da3a72658f91faf4ba03c7 | https://www.cnbc.com/2015/09/18/cramer-game-plan-forget-the-fed-opportunity-knocks.html | VIDEO11:2111:21Cramer game plan: No more Fed! Opportunity knocks Mad Money with Jim Cramer
Jim Cramer is absolutely begging investors to take a break from the Fed guessing game, at least for a couple of days. And while the averages were hit hard on Friday, Cramer thinks it could have been a lot worse if the Fed had actually raised rates.
"Would it be so terrible to focus on the real prize, buying the stocks of companies we like for the long-term when they are being pulled down by short-term worries, like the ones generated by the Fed meeting?" Cramer asked.
And yes, one day the Fed will tighten when China is back on its feet and Europe is stronger. But right now, the real fear out there is that there is deflation; wages aren't going up and the Chinese government is selling U.S. treasuries like crazy.
Therefore, Cramer has declared next week to be a Fed-free zone so he can focus on the real opportunities knocking. Here are the events and stocks that he will be watching:
Would it be so terrible to focus on the real prize, buying the stocks of companies we like for the long-term when they are being pulled down by short-term worries, like the ones generated by the Fed meeting?Jim Cramer
Monday: Lennar, Red HatOne of Cramer's favorite homebuilders, this stock has been on a roll this year. And since the Fed did not raise rates, the "Mad Money" host recommended buying the stock if the commentary around the quarter is positive.
Tuesday: AutoZone, Carnival, ConAgra, Darden, General MillsAutoZone: Cramer loves this stock because it makes his job easy. The auto parts retailer continues to report good, not great, numbers and then the company buys back the stock quickly. So, buy it right after the quarter, before the company buys the stock itself. Snap it up if it gets hammered.
Carnival: Cramer expects good things from this company.
"I am blown away by the work that Arnold Donald, the CEO of Carnival, has done to turn this ship around, and I like the group," Cramer said.
General Mills: This company has gone more natural and organic than any of the other old-line food companies out there. And it has a great dividend. A buy buy buy for Cramer.
Wednesday: Europe manufacturing dataWhile it will be a quiet day on Yom Kippur, Cramer will be interested to hear if stronger numbers will be reported for the Eurozone PMI.
Thursday: Accenture, KB Home, Nike, Bed Bath & BeyondAccenture: "I have been remiss in not telling you to buy shares in this giant every time they fall. Yes, it's that good," Cramer said.
Bed Bath & Beyond: The company has been buying the stock back at a furious pace, but what has it really done on the market? It hasn't dazzled, and Cramer thinks it's getting a bit absurd.
Read more from Mad Money with Jim Cramer
Cramer Remix: Could be irresistible to Wall Street Cramer: Phew! Fed gets it. Prepare for high prices Wells Fargo CEO: Our goal is NOT to make money
Friday: Finish Line, BlackBerryFinish Line: Opportunity could come knocking for this one ahead of its quarter, as long as Nike tells a good story.
BlackBerry: Unfortunately, Cramer does not think opportunity will be knocking for BlackBerry. Cramer says to avoid to it before, during and after it reports.
So, while the market rallied and gave up its gains this week, Cramer reminded investors that it could have been a lot worse. The good news is that the Fed chatter is starting to take a backseat, so the focus can once again resume on stocks.
That's exactly what should be done if any downturn in the weakness allows for the opportunity to buy high-quality stocks at bargain prices you like.
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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90b1a52b024b18ab8c286c22ba750c1a | https://www.cnbc.com/2015/09/18/cramer-hike-could-have-been-disastrous.html | Cramer: Hike could have been disastrous | Cramer: Hike could have been disastrous
VIDEO2:5702:57Cramer: The Fed was right
The Fed avoided a market selloff by not raising rates in September, CNBC's Jim Cramer said on Friday.
"This would have been a disaster," he said on CNBC's "Squawk on the Street." "I think the market could have been down 500 to 600 points very quickly."
Top 7 ways to trade the dovish Fed decision
Ex-Fed official: Get ready for a long rate hike wait
Cramer said that now investors can focus on investing in the companies that are doing well. September is a historically rough month for markets, and a possible government shutdown could make things trickier, he added. "I always worry about a government shutdown because it has always knocked stocks down about 8 percent."
Cramer said that the Fed should not raise rates because it could harm the auto and housing sectors, which are doing well. "Is there something that says when something is strong we got to make it weaker?" he asked. "Because that is what a rate hike would have done."
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d2ad63a6ef84b07fda283076d8bd7223 | https://www.cnbc.com/2015/09/18/cramer-remix-the-best-way-to-play-the-selloff.html | VIDEO1:0601:06Best way to play this selloffCramer Remix
Friday was a tough day with the market plunging, but Jim Cramer expected it. After all, the money managers who placed mistaken bets going into the Federal Reserve meeting had to unwind positions, and traders sold off ahead of one of the year's seasonal weak periods.
"Remember, some stocks are getting hammered simply because they need to have the Fed raise rates, particularly the financials, which happen to be the largest sector in the ," the "Mad Money" host said.
It is certainly ugly out there, and having prices fall 4.7 percent Friday didn't help. But Cramer can see that the market has a flawed mindset, where investors believe that crude has to go higher in order for the major averages to rally.
"I think you have to take heart in the fact that we avoided a potential disaster, which is what could have happened if the Fed had tightened," Cramer said. (Tweet This)
If rates rose, it could have caused major turmoil overseas and a weakening of strong markets in the U.S., such as autos and homes.
Ultimately, Cramer wants investors to be ready to do some buying for high-quality stocks at bargain levels when the opportunity presents itself. Wait for the next leg down, which won't be very deep, before pulling the trigger again.
Read More Cramer: We just avoided a huge disaster post-Fed
Reed Hastings, CEO of Netflix.Mark Neuling | CNBC
While Cramer is in San Francisco this week, he has heard about all of the snazzy start-up companies with disruptive technologies that could possibly take over the world one day. But what about a company that is already conquering the globe?
Netflix is the video streaming colossus that not only allows for TV shows and movies to be streamed, but also creates its own original programming. It reported a fantastic quarter in July, with confirmation that it added 3.3 million new subscribers. It is also expanding its international footprint substantially, and Cramer thinks it could even take over the whole world by the end of the year next year if it wanted to.
Cramer had the opportunity to speak with Netflix Chairman and CEO Reed Hastings to discuss the current environment of the Internet, how Netflix obtained rapid success and where it could be headed in the future.
Cramer pointed out that 13 years ago, Netflix traded at just 85 cents a share; it closed at $102 a share on Friday. Hastings explained the fast growth of the company, stating "It's really the Internet. The Internet is transforming so many sectors of our economy, and we are Internet TV; and that sector has grown from very small 15 years ago to starting to be significant now." (Tweet This)
In fact Hastings predicted that in the next 10 to 20 years, all of television will be on the Internet. He added that he was willing to bet that the Internet would be a fast growing industry when he first started Netflix because he saw the incredible consumer experiences that the Internet allowed.
"We are just a learning machine. Every time we out a new show, we are analyzing it, figuring out what worked and what didn't so we get better next time," Hastings added. (Tweet This)
Read More Netflix CEO: All TV will be Internet in 10-20 yrs
Cramer is absolutely begging investors to take a break from the Fed guessing game, at least for a couple of days. And while the averages were hit hard on Friday, Cramer thinks it could have been a lot worse if the Fed had actually raised rates.
"Would it be so terrible to focus on the real prize, buying the stocks of companies we like for the long-term when they are being pulled down by short-term worries, like the ones generated by the Fed meeting?" Cramer asked.
And yes, one day the Fed will tighten when China is back on its feet and Europe is stronger. But right now, the real fear out there is that there is deflation; wages aren't going up and the Chinese government is selling U.S. treasuries like crazy.
Therefore, Cramer has declared next week to be a Fed-free zone so he can focus on the real opportunities knocking. Here are the events and stocks that he will be watching:
Friday: Finish Line, BlackBerryFinish Line: Opportunity could come knocking for this one ahead of its quarter, as long as Nike tells a good story.
BlackBerry: Unfortunately, Cramer does not think opportunity will be knocking for BlackBerry. Cramer says to avoid to it before, during and after it reports.
So, while the market rallied and gave up its gains this week, Cramer reminded investors that it could have been a lot worse. The good news is that the Fed chatter is starting to take a backseat, so the focus can once again resume on stocks.
Read More Cramer game plan: No more Fed! Opportunity knocks
One stock that managed to go higher on Friday was Workday, the cloud-based provider of software for human capital management, payroll and financial management.
Essentially, Workday gives companies the applications they need to automate many of the non-revenue generating back office functions, allowing them to save money.
Workday's stock has taken a hit lately when it was crushed during the selloff in August, and then again at the end of August when analysts were concerned about it's weaker than expected billings guidance. However, Cramer thinks these fears were overblown as the numbers didn't reflect a change in the trajectory of the business.
To learn more about where Workday could be headed, he spoke with CEO Aneel Bhusri.
"I think Wall Street derives too much from calculated billings, because terms change from quarter to quarter…We feel like we are going to have a very strong second half of the year," Bhusri said.
In the Lightning Round, Cramer gave his take on a few caller favorite stocks:
Priceline: "I think Priceline is the kind of high-dollar stock that people are selling in this environment. I want to buy into it as it comes down in stages, not all at once."
ConocoPhillips: "In a market where the oil stocks are down we have to buy the highest quality, which Conoco doesn't count. I would much rather see you be buying EOG, the growth stock that my charitable trust owns."
Read More Lightning Round: Buy into this stock being sold
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b7cc91a70db61a77b57eb2757d5c36c7 | https://www.cnbc.com/2015/09/18/european-markets-to-open-lower-post-fed.html | Grim day in Europe; Dax falls 3% near bear territory | Grim day in Europe; Dax falls 3% near bear territory
VIDEO2:1002:10Grim day for Europe, as Dax edges closer to bear territory
European markets suffered a torrid Friday, after the U.S. Federal Reserve's overnight decision to hold interest rates at record lows fanned worries about the health of the global economy.
Uncertainty gripped investors, pushing the pan-European STOXX 600 to close down 1.8 percent, after recouping some earlier losses. Its ended down around 0.3 percent on the week.
Across Europe's major indexes, the picture looked bleak. Germany's DAX tanked more than 3 percent, putting it just shy of bear market territory, or a fall of 20 percent from the year's highs in April.
German stocks finished at 9,916 points. A close below 9,899 would have put the index in technical bear territory, down from 12,374 in April.
The French CAC finished around 2.6 percent lower, while London's FTSE 100 ended 1.3 percent down, having pared some earlier volatility.
Around 11.40 a.m. London time, the FTSE index dropped by around 67 points, after what traders termed a "fat finger" error. Stocks that saw sharp declines included BT, HSBC and BP.
TWEET
U.S. stocks fell sharply on Friday, pressured by concerns over the implications of the Federal Reserve's decision. The Fed decided to keep interest rates on hold at its September meeting on Thursday, staving off the first tightening of policy in the U.S. since 2006.
"Speculation will now shift to December as the next most likely month for U.S. rates to start rising. The 'data dependent' Fed will want to see further robust non-farm payroll growth between now and then, as well as indications that the pace of economic growth is not wilting under the pressure of China's slowdown," said chief economist at Markit, Chris Williamson.
"If the labor market continues to improve and push beyond full-employment alongside solid business survey data, which seems likely, it will be hard for the Fed to argue that a rate hike is not warranted, albeit with the potential for further financial market volatility adding an unknown element to the rate outlook," he added.
Oil prices suffered on Friday following the Fed's warning on the health of the global economy. Brent crude and WTI crude oil were both down well over $1 around the close of European markets, hitting energy stocks.
Insurance stocks were among the worst performers on Friday after the Fed's decision. Insurance companies benefit from higher interest rates because it means they get higher yields on the government bonds they invest in.
Dutch life insurance company Aegon closed near the bottom of indices, down more than 6 percent. Britain's Aviva and Prudential both finished more than 2.5 percent lower.
Banking stocks - another sector that benefits from higher interest rates - also took a hit on Friday. Deutsche Bank and BNP Paribas were among the worst affected, both closing more than 4.5 percent lower. Italian and Swiss lenders, including Credit Suisse and Intesa Sanpaolo, also closed sharply in negative territory.
Auto stocks were also lower after the Fed's dovish tone. The worst hit included France's Renault, down 4.2 percent, and German carmaker Daimler, down 4.3 percent.
Gold rose to a near three-week high, gaining around 0.5 percent to trade at $1,137, boosting mining stocks.
Asian shares were mixed on Friday, but Japan's Nikkei 225 tumbled on the back of renewed strength in the yen.
The Nikkei index on the Tokyo Stock Exchange and the broader Topix index were among the hardest-hit in Asia, down 2 percent ahead of an extended weekend. Markets in Japan will be shuttered until next Wednesday.
VIDEO1:0101:01Week Ahead 21 Sept
Looking ahead to next week, there's potential for further disruption in European markets after elections taking place in Greece at the weekend – the country's third time at the polls within a year.
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69016fcb05b92ed3466a442e26513460 | https://www.cnbc.com/2015/09/18/ex-fed-official-get-ready-for-a-long-rate-hike-wait.html | Ex-Fed official: Get ready for a long rate hike wait | Ex-Fed official: Get ready for a long rate hike wait
VIDEO2:5102:51Dovish Fed decision no surprise: ProSquawk Box
With the Federal Reserve opting on Thursday to not hike interest rates for the first time in nine years, it looks like policymakers will wait until next year to make a move, a former New York Fed executive vice president, Dino Kos, said Friday.
"I don't see how enough changes for them to move by December, so we're in 2016 looking at the same factors," Kos, head of regulatory affairs at CLS Bank International, told CNBC's "Squawk Box" in an interview.
The Fed's dovish policy statement, released Thursday afternoon, cited global economic and market volatility concerns, which were explained further during central bank chief Janet Yellen's news conference.
Read More Boockvar: Fed data nitpicking driving monetary policy
"It's not what I was hoping for, but it is what I expected," Kos said. "You've got to start at some point and this is a pretty good time to start actually, given we've been in a recovery for six years. Growth is OK. To me, the indicators are looking pretty good."
Fed policymakers pared back their projections for economic growth to 2.3 percent for next year. The Fed pegged inflation at 1.7 percent in 2016, still below its 2 percent target, even as the unemployment rate falls to 4.8 percent.
"When is the Fed going to move rates?" Kos said, "The sort of stock answer is the same answer we've had for the last five years: six months from now."
"We've had one small piece of the exit, which was the taper, and even that took a long time to actually get to," he said.
The Fed ended its multiyear quantitative easing bond purchases a year ago next month, but it's been left with a balance sheet of $4.5 trillion.
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73dea8c66e825ea3fe709582a2e9f890 | https://www.cnbc.com/2015/09/18/expect-very-healthy-rally-in-q4-strategist.html | Expect 'very healthy rally' in Q4: Strategist | Expect 'very healthy rally' in Q4: Strategist
VIDEO3:2903:29Problem is Fed's focused on what was: BelskiPower Lunch
VIDEO3:4403:44Pro says selloff = vote of disappointmentPower Lunch
VIDEO2:1702:17My ETFs love what the Fed did: ProPower Lunch
VIDEO3:2703:27Cutting through the Fed clutterPower Lunch
U.S. stocks tumbled Friday on uncertainty surrounding the Federal Reserve, but strategist Brian Belski is confident the market will have a "very healthy rally" in the fourth quarter.
It's just that near-term people are being "so reactive," the chief market strategist for BMO Capital Markets said Friday in an interview with CNBC's "Power Lunch."
"Once reality sets in and … calm prevails and we start doing fundamental analysis again … I think we're going to see that United States stocks remain the most stable asset in the world, the most consistent in earnings with the strongest balance sheets," said Belski.
He's sticking with his year-end price target of 2,250 for the .
Traders work on the floor of the New York Stock Exchange.Getty Images
That said, he warned that volatility will continue into 2016, particularly after the Fed's "misstep" from an investment strategy standpoint of not raising interest rates Thursday.
Belski believes the central bank's focus on global growth makes it more of a follower than a leader.
"The problem is that the Fed is focusing, like most investors, on what was and is not focusing on what is," he asserted.
What is developing right now is North American growth, fourth-quarter gross domestic product that will "surprise to the upside" and the impact of low gasoline prices finally starting to hit the consumer, said Belski.
Paul Hickey, co-founder of Bespoke Investment Group, called the Fed's move dovish, especially for stocks and, more importantly, growth stocks. That could be good for a rally heading into year end, he told "Power Lunch."
However, the equities market is entering a historically weak period, with the end of September typically one of the weakest times of the year, he pointed out. Therefore, he thinks prudence is warranted in the short term.
"When you see steep selloffs, the market usually ends up in the long run being a good buying opportunity, but in the short term you see back-and-forth action with big swings like we're seeing now," said Hickey.
Market fear rises after Fed non-move
Cramer: Hike could have been disastrous
Ben Willis, senior floor broker at Princeton Securities believes the Fed used the media to lead people to believe there was a strong likelihood it would change rates in September. Because of that, Friday's selloff was a vote of disappointment, he told "Power Lunch."
However, when the central bank does finally normalize, "it will actually cause a rally because it's taken the indecision."
Right now, Tuttle Tactical Management CEO Matt Tuttle is sticking with his strategy of cash and Treasurys—and zero stocks.
The key number for him is 2,020 on the S&P 500.
"If the S&P breaks above that, I think this correction is over and we then look to get back in but we think we might hit 1,930 before that happens."
He believes it's gotten to the point where the Fed should "just do it already" since the uncertainty is contributing to a lot of the volatility the central bank wanted to avoid.
John Buckingham, CEO of AFAM Capital, has a different strategy. He prefers equities over cash and Treasurys.
"If anything, stocks got a little cheaper today, and relative to where we are on the interest rates spectrum, boy, I'd rather have a portfolio of dividend payers, like I have, yielding 2.8 percent, than be investing in Treasurys or cash-type instruments," he told "Power Lunch."
Disclaimer
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88060f3469fd54bf80720b77cc8f1be6 | https://www.cnbc.com/2015/09/18/golden-opportunity-how-to-trade-the-metals-rally.html | VIDEO1:4901:49A golden opportunity: 4 trades in goldFast Money
After gold prices spiked on Friday, CNBC "Fast Money" traders contended the metal could tear even higher.
Gold futures for December delivery closed $20.80 higher at $1,137.80 an ounce, a day after the Federal Reserve said it would maintain its near-zero interest rate policy. Trader Guy Adami said the "move makes sense" and the metal should continue its climb.
Getty Images
Throughout the day Friday, the dollar reversed initial losses and gained against major currencies, but gold did not move with it. That "decoupling" should bode well for gold, Adami and trader Brian Kelly said.
Kelly added that a possible short squeeze could send gold above $1,300 per ounce. However, trader Tim Seymour said he would not believe in a rally until the metal broke through $1,160 an ounce.
Read MoreGold rally set to fizzle out: Expert
Trader Steve Grasso would play a possible rally through the Market Vectors Gold Miners ETF, which has fallen more than 20 percent this year. The fund usually sees more exaggerated up or down moves than gold, which makes it enticing for people betting on a rally, he said.
Disclosures:
Tim Seymour
Tim Seymour is long AAPL, BAC, CLF, DIS, F, GE, GM, GOOGL, INTC, JPM, T, TWTR, Tim's firm is long BABA, BIDU, MCD, NKE, NOK, SBUX, YHOO.
Steve Grasso
Steve is long AAPL, BA, BAC, CC, DD, DIS, DECK, EVGN, FIT, KBH, MJNA, MU, PFE, PHM, T, TWTR, GDX, firm is long GLD, AMZN His kids own EFA, EFG, EWJ, IJR, SPY.
Brian Kelly
Brian Kelly is long BBRY, GLD, Bitcoin, US Dollar, Crude Oil; he is short Yuan, British Pound, Euro.
Guy Adami
Guy Adami is long CELG, EXAS, INTC, Guy Adami's wife, Linda Snow, works at Merck.
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319a7d22e8b3ab21d43e7bd7c94947a3 | https://www.cnbc.com/2015/09/18/google-raises-millions-for-refugees-and-migrants.html | Google raises $11.3M for refugees and migrants | Google raises $11.3M for refugees and migrants
Migrants walk on a dirt road as they approach the Croatian border near the town of Sid, Serbia, September 18, 2015.Stoyan Nenov | Reuters
Three days after Google pledged to match $5.5 million in donations to humanitarian groups looking to assist refugees and migrants entering Europe, the tech giant has raised more than $11.3 million dollars.
The company previously gave more than $1 million to aid organizations in relief efforts.
"The crisis isn't over," Google wrote on its One Today page on Friday. "Your contributions can still provide critical relief to those in need. Although Google is no longer matching donations, please consider giving directly to these nonprofits."
Google says will match refugee donations up to about $5.5M
Google partnered with Doctors Without Borders, International Rescue Committee, Save the Children and UN High Commissioner for Refugees on the project.
"[Doctors Without Borders] will receive at least $1.25 million from this fundraiser, which we will use to meet medical and humanitarian needs of refugees and displaced people," an organization spokesman told CNBC on Friday.
Thousands of migrants have flooded into Europe this summer, many fleeing conflict in Syria. These refugees have faced limited food and unsanitary conditions in overcrowded, temporary camps.
Donations will go toward providing supplies and medical care to refugees.
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8764e17b552101fecd7856cda67f1390 | https://www.cnbc.com/2015/09/18/heres-what-to-watch-for-in-the-coming-earnings-season.html | Trader Talk | Trader Talk
Now that the Federal Reserve has made its decision—for better or worse—it's time to turn to what really matters: 1) the state of the U.S. economy, 2) the state of the rest of the world, and the impact this has for corporate revenues and earnings.
To the extent that the Fed lowered its expectations for growth, that is certainly a negative sign for earnings.
And earnings and revenues could use some help. The second half of the year was supposed to see an improvement over the first half's flat earnings growth, and negative revenue growth. Not happening.
Here's the current Q3 estimates from FactSet: Earnings: -4.4 percent Revenue: -2.9 percent
Much of this disappointment is due to energy, where earnings are expected to again be down a stunning 65 percent. That's not a typo—65 percent. If you remove energy, the S&P earnings would be positive 3.1 percent, revenues would be positive 2.7 percent.
Read More Pisani: Did the Fed just make a third mandate?
Trader on the floor of the New York Stock Exchange.Lucas Jackson | Reuters
The earnings number will likely improve in the coming weeks, but in the last two quarters the negative revenue numbers have not, and that is again an issue.
What we need—I have been saying this for over a year—is not more cost-cutting to hit the bottom line. What we need is more revenue growth. And we are not seeing it.
The Street is expecting higher revenues, but they have been consistently disappointed.
I'll give you an example. On average, about 60 percent of companies beat revenue estimates. That's been the average for years.
In Q1, less than 45 percent beat estimates. In Q2 only 49 percent beat. See what I mean? The Street has been surprised by the lack of revenue growth.
Read MoreFed dovishness may have stopped soothing market
What we need to hear in the coming weeks is more companies beating revenue estimates ... and by more than the average. We need to see 65 percent or more beating revenue estimates.
Can that happen? It's looking doubtful. Here's an example: the Street is pinning a lot of its hopes for earnings and revenue growth on a few sectors—consumer discretionary, up 11.6 percent, financials, where earnings growth is expected to be up 7.9 percent this quarter, and health care, which is expected to grow 7.5 percent.
Consumer discretionary may be in better shape, with gains in housing and autos, though retailers are problematic. Health care in good shape as well.
Read MoreThis bank just slashed its S&P earnings outlook to zero
Financials, however, are a problem. Now that the Fed is not acting to raise rates, there will be less upward pressure on U.S. interest rates, which would have been a benefit to banks.
This is especially true of regional banks, which are more sensitive to the "spread lending" than big global banks likeCitigroup and Goldman Sachs, that get part of their business overseas.
What's it mean? I wouldn't be surprised to see earnings estimates for some banks coming down.
Read MoreFed holds off, markets now betting on hike in 2016
We are waiting to hear comments from CEOs about the third quarter, but the early signs are a bit worrisome. Sales have been weak again. The first two out of the gate—FedEx and Oracle have not been encouraging.
FedEx is a good global barometer, it raised prices and should benefit from lower fuel costs, but doesn't appear to be reaping big headwinds.
Next week, a couple companies with odd fiscal years will report: homebuilder Lennar the 21st, and Autozone on the 22nd. Costco will come the week after.
These will provide a good look at the state of the consumer.
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79290bc95fc1fd298a064e93a46cd8a7 | https://www.cnbc.com/2015/09/18/jon-najarian-buys-intersil-on-unusual-activity.html | Jon Najarian buys Intersil on unusual activity | Jon Najarian buys Intersil on unusual activity
Source: Intersil
CNBC "Halftime Report" trader Jon Najarian bought shares of Intersil, a maker of semiconductor chips, on Friday after spotting unusual activity in the options market.
Najarian is one of the top traders in CNBC Pro's Model Portfolio competition, up 8.5 percent on the year, beating the S&P 500, which is down 4 percent.
Here is what Najarian sees and why he thinks the stock can rally from here...
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d77a462c819e1a97327aa8982e1716de | https://www.cnbc.com/2015/09/18/lightning-round-when-to-scoop-up-jc-penney.html | It's that time again! Jim Cramer rang the lightning round bell, which means he gave his take on caller favorite stocks at rapid speed:
Priceline: "I think Priceline is the kind of high dollar stock that people are selling in this environment. I want to buy into it as it comes down in stages, not all at once."
ConocoPhillips: "In a market where the oil stocks are down we have to buy the highest quality, which Conoco doesn't count. I would much rather see you be buying EOG, the growth stock that my charitable trust owns."
Del Frisco's Restaurant: "Del Frisco's did not have a good quarter and the previous quarter wasn't that good. I cannot advise necessarily holding on to that, I was disappointed with the quarter, very candidly."
CSX Corporation: "It's got the coal taint. I'm not buying anything that relies on coal to be able to make the numbers."
Read more from Mad Money with Jim Cramer
Cramer Remix: Could be irresistible to Wall Street Cramer: Phew! Fed gets it. Prepare for high prices Wells Fargo CEO: Our goal is NOT to make money
Travelers Companies: "Travelers is incredibly well-run. It buys back stock, it's not an exciting stock. I don't need excitement, frankly, I do like it."
Medtronic PLC: "I like Medtronic very much. The Covidien deal was good. I do like the fact that the tax domicile changed. Medtronic has not missed a quarter in a long time, but I do like Edward's Lifescience more though just so you know."
J.C. Penney: "I like the new CEO of J.C. Penney. The stock has been up a lot. How about we wait until it gets to $8 then we pull the trigger. It's that type of market."
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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1159160b4f8282120b516a0cc29c53f9 | https://www.cnbc.com/2015/09/18/malware-allows-users-to-cheat-at-online-poker.html | Michael Fernahl | E+ | Getty Images
Is that a card you've got up your mainframe?
A new computer malware allows users to cheat at online poker. Here's how it works: the victim becomes infected with the malware, usually from a website or while downloading some other piece of software. Once infected, the malware sends screen shots of the victim's computer screen to the attacker. That allows the attacker to see what virtual poker table the victim is playing at, follow him or her there and then see his cards. The malware is targeted specifically at the world's two largest online poker sites, PokerStars and Full Tilt.
ESET, an IT firm in Slovakia, was one of the first to write about this malware. Robert Lipovsky, senior malware researcher at ESET, tells CNBC there have been more than 1,000 documented cases of these malware attacks since March, mostly in Russia and Ukraine.
But PokerStars, a unit of Amaya, tells CNBC, "There have been no claims of attacks against the PokerStars or Full Tilt servers."
PokerStars security also offered this advice to its users: "We recommend that players protect themselves against this sort of attack by practicing good computer security. Players should keep their operating system updated, use reliable antivirus software, and only install software from reputable sources."
But in the highest-stakes games, players can play heads up (one-on-one) tournaments for thousands of dollars. And this kind of malware would work best against just one opponent. So in other words, the higher the stakes, the bigger the potential reward. One wonders if a threat like this will be enough to force players to stay away from the big-money matches.
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afb23da2315ef9c38402958802e69401 | https://www.cnbc.com/2015/09/18/market-timer-dont-have-october-phobia.html | Market timer: Don't have 'October phobia' | Market timer: Don't have 'October phobia'
A trader on the New York Stock Exchange holds his head in October 1987 as stocks were devastated during one of the most frantic days in the exchange's history.Maria R. Bastone | AFP | Getty Images
October is synonymous with single-day stock market calamities, most notably because of the "Black Monday" crash in 1987 and the plunge in 1929 that preceded the Great Depression.
And that fear has grown this year as the stock market is already in correction territory leading into the scary month. Uncertainty surrounding interest rates after the Federal Reserve's nondecision, decision Thursday is only feeding the panic.
"There's the phrase 'October phobia,'" said Jeffrey Hirsch of the "Stock Trader's Almanac" book, newsletter and website. "It's been the month of crashes and massacres."
But "it's the best month to be buying stocks and most stock sectors," adds Hirsch, who sat down with CNBC Pro for a quick chat about his specialty, seasonal trading.
Hirsch reveals when and what to buy in October in the short video below.
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7356652e7e1b5efedcf8a417bd852d09 | https://www.cnbc.com/2015/09/18/meat-wars-this-is-winning-on-fast-food-fast-casual-menus.html | Meat wars: This is winning on fast food, fast casual menus | Meat wars: This is winning on fast food, fast casual menus
VIDEO0:3600:36McDonald's makes some big name hiresFood & Beverage
As restaurants take advantage of National Cheeseburger Day to highlight burgers, a different meat is popping up more often on the menus of limited-service restaurants, which includes fast food and fast casual.
Recent additions, such as McDonald's premium buttermilk crispy chicken deluxe sandwich or Wendy's Asiago ranch chicken club, are just two examples of this phenomenon.
Shake Shack Roadside Shack burger, left, and a McDonald's premium buttermilk crispy chicken deluxe sandwichSource: Shake Shack; McDonald's
Technomic data show the total number of chicken sandwich/wrap items rose 3.4 percent at these restaurants to 8,118 while burgers rose 1.3 percent to 7,182 during the second quarter, compared to the year-prior period.
Rachel Royster, senior coordinator of editorial content at Technomic, attributed chicken's higher growth to a "health halo" effect.
"People still want burgers. That's never going to end. They're willing to pay a premium for it. But we do see more interest in healthier items," Royster said.
Read More No McD's? No problem. BK to offer free burgers
Diners are following suit and ordering more breaded chicken sandwiches, according to data from The NPD Group. They bought about 2.3 billion of those sandwiches in the year ended in July, up 3 percent compared to a year ago. (It's worth noting that this does not include all chicken sandwiches.) This compares to 7.09 billion cheeseburgers—a much larger number though it grew just 1 percent from the prior period.
Increased customization is another factor driving burgers' slower growth. Restaurants increasingly favor letting customers choose from a plethora of toppings rather than adding as many menu items.
VIDEO2:1402:14Fast Food Friday: 4 trades to goFast Money
While limited-service restaurants are doubling down on adding chicken sandwiches to their menus, burgers are the standout winners when it comes to limited-time promotions chains use to get people in the door.
These restaurants debuted 112 burger limited-time offerings, such as Shake Shack's Roadside Shack burger or Fatburger's Western BBQ bacon Fatburger, for the year ended in August, versus just 54 for chicken.
What's behind the disparity between promotions and the full menu? One word: indulgence.
"There's definitely more indulgent offerings with burgers and when talking about LTOs, people get more excited about the indulgent offerings than the healthier ones," Royster said.
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e1ee05c4da3dc4515a77f31d5c4b33e6 | https://www.cnbc.com/2015/09/18/med-device-maker-penumbra-rings-nyse-opening-bell.html | Med device maker Penumbra rings NYSE opening bell | Med device maker Penumbra rings NYSE opening bell
VIDEO0:1400:14Today's Bell Ringer, September 18, 2015
Medical device maker Penumbra rang the opening bell at the New York Stock Exchange on Friday.
Penumbra Chairman and CEO Adam Elsesser and members of the company's management team marked the start of trading along with a stroke survivor, Phyllis Danner, to celebrate the company's IPO. Its stock will trade on the NYSE under the ticker symbol "PEN."
Getty Images
Read More Gym operator Planet Fitness rings NYSE opening bell
Penumbra's medical devices treat patients with neurological and vascular conditions, including clogged arteries and aneurisms. Its products are marketed to doctors with patients who've tried other treatments or devices to no avail, according to the company's website.
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ad7da9843c16b1d5821c9f8bedd84dc5 | https://www.cnbc.com/2015/09/18/netflix-ceo-all-tv-will-be-internet-in-10-20-yrs.html | VIDEO7:5307:53Netflix CEO: All TV will be Internet in 10-20 yrs Mad Money with Jim Cramer
While Jim Cramer is in San Francisco this week, he has heard about all of the snazzy start-up companies with disruptive technologies that could possibly take over the world one day. But what about a company that is already conquering the globe?
Netflix is the video streaming colossus that not only allows for TV shows and movies to be streamed, but also creates its own original programming. It reported a fantastic quarter in July, with confirmation that it added 3.3 million new subscribers. It is also expanding its international footprint substantially, and Cramer thinks it could even take over the whole world by the end of the year next year if it wanted to.
Read MoreSnip, snip! TV cord cutting intensifies, study says
Cramer had the opportunity to speak with Netflix Chairman and CEO Reed Hastings to discuss the current environment of the Internet, how Netflix obtained rapid success and where it could be headed in the future.
Cramer pointed out that 13 years ago, Netflix traded at just 85 cents a share; it closed at $102 a share on Friday. Hastings explained the fast growth of the company, stating "It's really the Internet. The Internet is transforming so many sectors of our economy, and we are Internet TV; and that sector has grown from very small 15 years ago to starting to be significant now." (Tweet This)
We are just a learning machine. Every time we put out a new show we are analyzing it, figuring out what worked and what didn't so we get better next timeReed HastingsChairman & CEO, Netflix
Reed Hastings, CEO of Netflix.Mark Neuling | CNBC
In fact, Hastings predicted that in the next 10 to 20 years, all of television will be on the Internet. He added that he was willing to bet that the Internet would be a fast growing industry when he first started Netflix because he saw the incredible consumer experiences that the Internet allowed.
Hastings attributed the success of original programming such as "Orange is the New Black" and "House of Cards" to Netflix's powerful data analytics.
"We are just a learning machine. Every time we put out a new show, we are analyzing it, figuring out what worked and what didn't so we get better next time," Hastings added. (Tweet This)
Read more from Mad Money with Jim Cramer
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Even more impressive, the stock remains the best performer in the , up more than 100 percent for the year. Could the recent pullback in the stock be a window of opportunity?
"When you get this kind of retreat in the stock, historically—as I always tell you, through thick and thin—it's been a terrific buying opportunity. Worst case, it goes lower and you can buy more at even cheaper prices before it rebounds," the "Mad Money" host said.
Investors were shaken on Aug. 4, when Disney reported earnings and indicated that it had suffered some subscriber loss. This bolstered fears that consumers were cutting the cable cord and flocking to subscription services such as Netflix.
"There are a few people that have cut the cord, but it is very, very small still today. But it's a worry about the long term," Hastings said.
Hastings anticipates that sports networks that have had such success in maintaining an audience will ultimately adopt an on-demand model. Consumers will be able to watch any game on any device in the future, just as companies such as HBO currently provide.
Questions for Cramer? Call Cramer: 1-800-743-CNBC
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Questions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com
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1978d05779fa158f27e6976328c6e2b0 | https://www.cnbc.com/2015/09/18/nyc-to-vote-to-strip-bank-of-america-ceo-of-chairmanship.html | NYC to vote to strip Bank of America CEO of chairmanship | NYC to vote to strip Bank of America CEO of chairmanship
Brian MoynihanPete Marovich | Bloomberg | Getty Images
New York City's $165 billion pension funds will vote to strip Bank of America CEO Brian Moynihan of his chairman title, a spokesman for the funds told Reuters on Thursday.
The funds, overseen by New York Comptroller Scott Stringer, hold 25.2 million shares, which would place them roughly in the top 60 shareholders based on the latest publicly available information.
Investors will vote on Sept. 22 on bylaw changes made last year to give Moynihan the additional job. That move undid a vote by shareholders in 2009 to require an independent chair.
Bank of America CEO should keep chairman title
The vote is expected to be close. Other large investors that have also said they will vote to separate the Chairman and CEO roles include the California Public Employees' Retirement System and California State Teachers' Retirement System.
Via email, a Bank of America spokesman said the bank has turned itself around since the financial crisis and wants "the same flexibility on corporate governance as 97 percent of the S&P 500. We respectfully recognize that stockholders have varying views, which is why the board committed to holding the vote."
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b5c26ba357be527a6dfb40beff738d2f | https://www.cnbc.com/2015/09/18/power-play-what-to-avoid-after-the-fed-leaves-rates-unchanged.html | A trader works on the floor of the New York Stock Exchange.Getty Images
Stocks are selling off the day after the Fed left interest rates unchanged. But John Buckingham, chief investment officer at AFAM Capital, tells CNBC's "Power Lunch" on Friday, stocks still provide generous income streams compared to fixed income, but it is important to diversify.
"We very much remain optimistic on the long-term prospects of our broadly diversified portfolios of undervalued stocks," Buckingham said.
Read More Stock selloff reflects global growth uncertainties
He has positions in all 10 of the S&P 500 sectors, but there are sectors he's decreasing his exposure to in this environment.
"We are modestly underweight in consumer staples, financials, health care, telecom and utilities," Buckingham said.
He is overweight consumer discretionary, energy, industrials, materials and information technology.
Consumer staples, financials, health care, telecom, utilities, consumer discretionary, energy, industrials, materials and information technology are all lower during trading.
Disclaimer
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40bf68b9b2771640e2dd70bde651615e | https://www.cnbc.com/2015/09/18/report-apple-meets-with-self-driving-car-regulators.html | Apple meets with self-driving car regulators: Report | Apple meets with self-driving car regulators: Report
Adam Jeffery | CNBC
Apple has made another step toward testing an autonomous driving car, according to documents obtained by The Guardian.
A legal counsel from the Apple met with California's Department of Motor Vehicles' self-driving car experts and regulators, The Guardian reported Friday.
The meeting could indicate that Apple plans to join rivals Uber, Google, and even legacy car-makers in developing an autonomous automobile, as California becomes on of the first states to regulate the nascent market.
Apple car could take 10 years to hit the road: Analyst
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Apple Car based on BMW i3? ‘Nice idea’: CEO
The California DMV confirmed a meeting with Apple to review autonomous vehicle regulations in a statement to CNBC. An Apple spokesman declined to comment on the rumor.
To be sure, this is not the first report of secretive company's automobile ambitions, reportedly dubbed Project Titan. The Guardian previously reported Apple was exploring private test sites for self-driving cars.
If Apple does stay involved in California regulations, it could reveal more details about plans for the cars, The Guardian said, since the state's permitting process requires strict disclosures.
Click here to read the full story from The Guardian.
This story has been updated to include a comment from the California DMV.
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fbca75ab388c8f8dd95b544f328f889d | https://www.cnbc.com/2015/09/18/rugby-world-cup-what-you-need-to-know.html | Rugby World Cup: What you need to know | Rugby World Cup: What you need to know
VIDEO1:1801:18Rugby World Cup economic winner
Friday night will see 20 countries from around the world descend on the U.K for the start of the Rugby World Cup as host nation England take on Fiji in front of 82,000 roaring fans at a floodlit Twickenham.
CNBC takes a look at the tournament.
David Rogers | Getty Images
One of the world's biggest sporting events, anticipation ahead of the 20-team tournament – which will feature global powerhouses such as New Zealand, South Africa, Australia and Ireland – has reached fever pitch.
According to organizers, 95 percent of tickets – or 2.25 million – have been sold so far, while more than 772 million households across the planet will potentially have access to matches on TV.
The final will take place on October 31st, with current world champions New Zealand, led by iconic captain Richie McCaw, hoping to become the first side in history to defend their title.
As well as all the sporting drama set to take place over the next month or so, the host nation stands to benefit financially too. Organisers say that up to £1 billion ($1.56 billion) of added value will be pumped into the U.K. economy, with a further £2 billion of indirect value added.
With matches taking place across the country, from Newcastle in the north-east to Exeter in the south west, the U.K.'s tourism industry will receive a significant boost.
According to a report from EY released at the end of last year, up to 466,000 tourists will visit the U.K. during the tournament. It is expected that they will spend £869 million on everything from transport and accommodation to match tickets and entertainment.
Michel Gangne | AFP | Getty Images
One sector of the economy that is also set to benefit are pubs. The British Beer & Pub Association (BBPA) says it expects U.K. boozers to pour more than 25 million extra pints, with over 2.5 million punters "watching at least one game in the pub." The BBPA says that "in beer sales alone," the total impact on turnover for pubs stands to be roughly £86 million.
"The Rugby World Cup is a great opportunity for pubs, and they will be making the most of it," BBPA Chief Executive Brigid Simmons said in a release yesterday. "Nothing can match the atmosphere of the Great British pub when it comes to big matches, apart from actually being there. And for those visiting the UK for the tournament, the pub is a huge attraction."
Nancy Honey | Cultura RM | Getty Images
It is hoped that as well as the immediate benefits from the tournament, a lasting legacy for the sport will be established too.
According to EY, the Rugby Football Union (RFU) will invest £10 million over four years "to help clubs improve their clubhouses and pitches", while at least £1 million will be invested in new coaches and referees.
Perhaps most significantly, the RFU is already implementing its All Schools programme to bring new players to the game.
Described by the RFU as one if its "major development programmes from the 2015 Rugby World Cup," All Schools – which began in 2012 – will see the sport taken to 750 state secondary schools, where soccer is more often than not the most popular sport.
The RFU says that together with the Rugby Football Foundation, this will create a "positive legacy" for one million children up and down the country.
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5a6b68b0619a19ad3fef4d10b06cffc2 | https://www.cnbc.com/2015/09/18/sp-could-drop-to-1800-technician.html | S&P could drop to 1,800: Technician | S&P could drop to 1,800: Technician
VIDEO3:0203:02S&P headed to 1,800?Closing Bell
VIDEO3:5203:52Closing Bell Exchange: Held hostage by emerging marketsClosing Bell
VIDEO2:4602:46There's no winning trade here: ProClosing Bell
VIDEO1:0901:0930 to close: Selloff not terribly broadClosing Bell
The charts show more downside for the market ahead, with the S&P 500 possibly dropping to 1,800, technician Dan Fitzpatrick said Friday.
"Bottoms don't start at the top. We had a multiyear uptrend. It's been consolidating for most of the year. That's broken if you look at the S&P," the technical analyst for StockMarketMentor.com said in an interview with CNBC's "Closing Bell."
"The way the market's trading today, I'm kind of looking at the next leg down as being 1,800."
That said, he's not expecting a big crash, but just doesn't see the upside from here.
"Why would somebody come in and buy? I just don't see it. I'm not generally a bear but I'm objective, and that's what I see."
A trader works on the floor of the New York Stock Exchange.Getty Images
U.S. stocks plunged Friday, with the Dow Jones industrial average and closing down more than 1.5 percent.
The Dow closed in correction territory, or more than 10 percent off its 52-week high. The S&P 500 and Nasdaq composite are about 8 percent below their 52-week highs.
O'Neil Securities' Kenny Polcari said the market was disappointed by the Federal Reserves' decision to not raise interest rates Thursday.
"I think the market has already suggested that they missed their opportunity two, three, four times earlier in the year and now they built it up, built it up, built it up that it was going to happen in September and then boom—all of a sudden now we're being held hostage by emerging markets," he said.
While the Fed's move will breed more market volatility, there could be opportunities for savvy investors, said Mark Luschini, chief investment strategist for Janney Montgomery Scott.
"We want to use this opportunity to wade into higher-quality, higher-yielding names" in areas such as consumer discretionary, consumer staples and health care, he noted.
Specifically, he likes stocks such as McDonald's, Wal-Mart and Pfizer, which all have yields above 3 percent.
Expect 'very healthy rally' in Q4: Strategist
Market fear rises after Fed non-move
StockMarketMentor.com's Fitzpatrick would look at stocks that are working and that haven't been impacted by the volatility in the market.
"Look at the news flow. If we have bad news and a stock goes up, imagine what's going to happen when we have good news. So look at these strong stocks and when the market does stabilize, and it will, then those are the stocks that you want to be in," he said.
He likes Amazon, Paycom Software and Fitbit.
However, Fitzpatrick would stay away from energy and foreign markets.
Luschini, on the other hand, likes Europe and Japan.
—CNBC's Evelyn Cheng and Ritika Shah contributed to this report.
Disclosure: Janney Mongomery Scott clients own MCD, WMT, PFE. Fitzpatrick is long AMZN, PAYC, FIT
Disclaimer
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1dd19efc2dc62abc9a244775685299a6 | https://www.cnbc.com/2015/09/18/sprint-ceo-why-iphone-forever-plan-works.html | Sprint CEO: Why 'iPhone Forever' plan works | Sprint CEO: Why 'iPhone Forever' plan works
VIDEO2:2702:27Sprint CEO: 'iPhones 'Forever'Squawk Box
Apple fans who were unable to get their hands on a new iPhone will now be able to because of Sprint's "iPhone Forever" plan, Sprint's CEO Marcelo Claure said Friday.
"Everybody is usually so mad when a new iPhone launches because they are so excited about the new technology and all the great things, but not a lot of people can get it because they are under contract with their traditional carrier," Claure said in a CNBC "Squawk Box" interview.
Marcelo Claure, CEO, SprintDavid Orrell | CNBC
With the plan, Sprint customers can exchange their old iPhones for new models at any time for $15 month, Claure added.
Claure also said the exchanges make sense from a business standpoint because iPhones retain much of their resale value. "There is a huge market for used iPhones. Not a lot of people can afford a $700 phone, but if you get an iPhone today, nobody will know it's used."
The company announced the plan last month.
Read More Sprint CEO escalates Twitter war with T-Mobile CEO
Claure also discussed Moody's credit downgrade of the company, saying it caught them offguard. "We respect what they have to say, and we're focused on the turnaround of Sprint."
Sprint shares have dropped more than 7 percent in September and over 30 percent in the last 12 months.
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37e4af617bc5f81ba5fef7df49ce7327 | https://www.cnbc.com/2015/09/18/stock-selloff-reflects-global-growth-uncertainties.html | Trader Talk | Trader Talk
Why are stocks down today? There are several reasons:
1) This is a quadruple witching expiration, the quarterly expiration of stock index futures and options, and individual stock futures and options, with large volume and volatility at the open and close;
2) Oil is down almost 4 percent, a proxy for global growth;
3) The Federal Reserve has sent a message to investors: it is more concerned about global growth than it had let on.
Read MorePisani: Did the Fed just make a third mandate?
Let's focus on the Fed for a moment. The central bank clearly stated it was concerned about the state of the global economy and its impact on the U.S. Bank of America/Merrill Lynch summed it up Friday morning: "The Fed acknowledged our concerns for global weakness, and this acknowledgement is a bearish signal for risk assets."
Traders work on the floor of the New York Stock Exchange.Getty Images
This is why we are not getting a joyous stock market rally on a dovish Fed, which we almost certainly would have had a year ago.
Another major concern is the Fed's focus. Instead of traders focusing on the monthly jobs reports, we now have an additional emphasis on "global economic and financial developments." Market participants are clearly having a hard time assessing that phrase. I am as well.
Read MoreFed dovishness may have stopped soothing market
And so are some central bank figures. Reuters reported that Bank of Korea Gov. Lee Ju-yeol told a meeting of commercial bank executives that "A big change to note this time is that the Fed cited global environments and China," and that "This made things complicated for market players and uncertainty remains severe."
What this means is that for some there are less-compelling reasons for owning stocks than there were 24 hours ago. Perhaps continued improvement in the U.S. economy will ultimately convince everyone that the U.S. is the place to be, damn the rest of the world.
Read MoreThis bank just slashed its S&P earnings outlook to zero
Let's hope so. But even then, the message is clear: for the moment, buyers can be patient, there's no need to be aggressive.
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a9e172eb76cd383a67d06fce4b536e3c | https://www.cnbc.com/2015/09/18/the-fed-has-to-deal-with-its-own-zombie-apocalypse.html | The Fed has to deal with its own zombie apocalypse | The Fed has to deal with its own zombie apocalypse
VIDEO1:2601:26Need a safe haven? Look at these assetsBonds Headlines
The Federal Reserve is scared—of lots of things, some obvious, some not so much.
Thursday's Fed decision to delay yet again the long-awaited liftoff from zero rates gave rise to still more speculation about why the U.S. central bank seems so perpetually reticent to normalize monetary policy.
There are all the usual suspects, such as low inflation, weak wage gains despite strong job growth and China plus the rest of the emerging global economy.
One reason that hasn't gotten much attention is the need for the Fed to keep rates low both for government debt and the corporations that now have $12.5 trillion in debt.
Among the prime beneficiaries of zero interest rates have been low-rated companies that have been able to borrow money at rates often in the 5 to 6 percent range.
A move to higher rates, even a small one, could have outsized impacts on those bad balance sheet companies.That puts the Fed in a bit of a Faustian bargain with issuers and holders that has become hard to break.
Janet YellenGetty Images
Not only has high-yield issuance exploded in the days of the central bank's ultra-easy accommodation, but the bottom of the ladder has gotten more crowded as well.
Read More This list of 'junk' companies keeps getting longer
About a quarter of all debt issued now in the junk universe is held by companies rated B3 or lower, according to Moody's. Credit standards have continued to loosen as well, with the ratings agency reporting that its covenant quality index—essentially a read on how strict the conditions are on corporate borrowers—is at record lows.
"Businesses as a whole in the U.S. are better placed now to absorb any shocks that might hit them," Bodhi Ganguli, senior economist at Dun & Bradstreet, said in a phone interview. "However, there are pockets of greater weakness like these zombie companies. These pockets are likely to see some more turbulence than overall conditions. Some companies definitely will go out of business."
It isn't just the zombies, though, that should worry about higher rates.
Corporate America overall has been piling on the debt, which grew 8.3 percent in the second quarter, according to figures the Fed released Friday.
Read MoreThe junk bond market 'is having a coronary'
Though total issuance has declined to its lowest level in three years, it's been a year for big deals in the junk market, with the average high-yield deal globally at a record $587 million, according to Dealogic.
Investors are taking notice to the problems in the junk market and the added issues from wobbly monetary policy.
Michael Contopoulos, high-yield strategist at Bank of America Merrill Lynch, said the high-yield space is a mess no matter what the Fed does. Global economic weakness and deteriorating fundamentals are making it increasingly harder for the Fed to underwrite junk debt through a zero funds rate.
"We have been saying for months that the global economy is weak and the Fed's dovish disposition (Thursday) only bolsters our view," Contopoulos said in a note to clients. "Domestically it becomes harder to argue that a strong dollar and the lack of inflation can be viewed as transitory, and this headwind is continuing to hurt high-yield corporates."
Earnings for junk companies have been "incredibly weak," he added, pointing out that "leverage is at all-time highs" while "defaults and downgrades are creeping into the market."
Read More Market fear rises after Fed non-move
Fed Chair Janet Yellen often uses the word "transitory" to describe various hot spots of problems, but the issues with high-yield could be more secular in nature.
"The situation almost seems unbelievable, as everything that seems to go wrong is explained as being isolated ... and treated as a surprise," Contopoulos said.
Junk bonds as a group haven't done much this year despite their traditional correlation to equity markets, with the Barclays High Yield Corporate Composite Index up less than 1 percent, though it's fallen more than 3 percent over the past three months.
The SPDR Barclays High Yield Bond exchange-traded fund has seen $436 million in inflows for 2015, but that has reversed lately. The fund has seen $211 million in outflows since the beginning of August, according to ETF.com.
Contopoulos warned investors that the Fed's indecision will have consequences and to not "try to be a hero" by continuing the reach for yield.
"The Fed had an opportunity (Thursday) to hike rates and begin to build a cushion should the global slowdown be so severe it can't be ignored. Instead, they chose to wait," he said. "We're in the midst of watching a slow-moving train wreck, and in our view the Fed confirmed as much."
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f9e4864738becd1eb157510a0608fc15 | https://www.cnbc.com/2015/09/18/the-problem-with-what-the-fed-said-economist.html | The problem with what the Fed said: Economist | The problem with what the Fed said: Economist
VIDEO2:4902:49The problem with what the Fed said
VIDEO3:1703:17Market fallout after FedSquawk Alley
VIDEO2:1802:18The pain trade
VIDEO3:0503:05Santelli Exchange: Post-Fed plan
Frederic Mishkin, a former Fed governor and current Columbia University professor of economics, said on Friday that the Fed has a serious problem in how it communicates its message.
"The key is clarity," he told CNBC's "Squawk on the Street." "If you're going to do something, say what you're going to do and actually mean it."
Mishkin took issue with a dovish statement that indicated no hike in September yet said one was inevitable sometime this year. "And I think that's inconsistent with the message that is in the statement, and that inconsistency is creating uncertainty and that could hurt the economy."
"If they didn't move at this meeting, why should they move at the next two meetings?" he asked.
Frederic MishkinCheryl Senter | Bloomberg | Getty Images
William Lee, head of North America economics at Citi, said on Friday that he doesn't believe that the Fed held back from a hike due to worries about the Chinese economy.
"I don't believe China is the excuse; I think it's the cover-up," he said on "Squawk Alley." "I think there is another reason behind it, and maybe we will find out what the reaction function will be."
Lee said that the committee members probably did not have much confidence in inflation targets.
Market fear rises after Fed non-move
Top 7 ways to trade the dovish Fed decision
In the meantime, investors will stay away from risk until the Fed makes some clear moves, said Dan Suzuki of Bank of America Merrill Lynch.
"There's a lot of concern in what the shift in monetary policy is going to do, and what the impact of rising rates is going to be on emerging markets, on currencies and commodities," he said on Friday. "But the main implication of that is that investors don't want to take on a lot of risk ahead of that change in policy."
Suzuki said that markets could see some volatility in cheap cyclicals until the Fed's actions become clearer.
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c613bffc7c12280c555480c8d74c2fb1 | https://www.cnbc.com/2015/09/18/top-5-stocks-of-the-week-and-how-to-trade-them.html | Top 5 stocks of the week and how to trade them | Top 5 stocks of the week and how to trade them
Bottles of Coors Light beer, manufactured by Molson Coors Brewing Company.Chris Ratcliffe | Bloomberg | Getty Images
CNBC Pro highlights the top performing stocks this week and analyzes whether the good times will continue for these companies.
(The price change was calculated as of midday Friday, so it is subject to change.)
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c3cae9fbdfc30b40fb2f1e775bf6c615 | https://www.cnbc.com/2015/09/18/verizon-first-to-offer-cellphone-roaming-in-cuba.html | Verizon first to offer cellphone roaming in Cuba | Verizon first to offer cellphone roaming in Cuba
VIDEO0:4800:48Verizon to expand roaming service into Cuba
Verizon Communications announced on Thursday it would begin to offer roaming wireless service in Cuba next week, becoming the first U.S. company to do so.
The announcement by the No. 1 U.S. wireless carrier follows the restoration of diplomatic relations between Cuba and the United States in July after 54 years.
The United States has set connectivity as a priority in its new relationship with the communist-run island.
The news came on the same day Cuba said its first ambassador to the United States since 1961 had presented his credentials at the White House.
Telecommunications equipment, technology and services were among the first exemptions to a U.S. economic embargo of the island after Washington and Havana announced plans to restore diplomatic relations in December.
Verizon will charge $2.99 per minute for voice calls and $2.05 per megabyte for data, making the option an expensive one. Currently, visiting Americans must purchase a pay-as-you-go cell phone through state telephone company Empresa de Telecomunicaciones de Cuba SA (ETECSA) to have cellular service on the island, or have a cellphone account in a third country. ETECSA does not offer data.
VIDEO2:1502:15Will Google connect Cuba?
Boost Mobile, part of Sprint, in April launched a prepaid plan for U.S. consumers calling and texting Cuba. In March, U.S.-based IDT Corp reached an agreement with ETECSA to provide direct international long-distance service. Previously phone communication between the two countries had to pass through third countries.
Scarcely 2 million people out of Cuba's population of 11 million have cell phones. Cuban officials cite the U.S. embargo as the reason for its weak development and say they hope to reach 60 percent mobile-phone access by 2020.
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2e0846e01e7e7040b4f5a2f897c13250 | https://www.cnbc.com/2015/09/18/what-can-yellen-and-xi-do-for-markets.html | What can Yellen and Xi do for markets | What can Yellen and Xi do for markets
VIDEO2:1202:12Key post-Fed levels
VIDEO3:1903:19Fed's emerging market impactClosing Bell
VIDEO3:4203:42What does Fed know that we don't? Closing Bell
After a post-Fed battering, markets head into the week ahead seeking clarity, especially from two key people—Janet Yellen and Xi Jinping.
Fed Chair Jane Yellen speaks at the University of Massachusetts on Thursday evening, and Chinese President Xi Jinping will be in the U.S., meeting with business leaders Wednesday and President Barack Obama on Thursday. Both Xi and Yellen could offer some reassurance on what ails markets—the fear that economic growth and financial weakness in China is worse than expected and that it could spread elsewhere, including to the U.S.
Traders work on the floor of the New York Stock Exchange.Brendan McDermid | Reuters
Stocks were crushed Friday after the Fed held off hiking rates Thursday, saying it was concerned that global and financial developments could hurt the economy and drive inflation even lower in the near term.
The S&P 500 lost 32 points Friday to 1,958, a 1.6 percent decline, but it ended down just 0.2 percent for the week. Market strategists expect the volatility to continue for now, and some say it would not be difficult to see the S&P 500 revisiting its low of 1,867 set in August.
Read MoreMarket fear rises after Fed non-move
"It's certainly a possibility particularly as we go toward another round of negative earnings revisions, as we go into the next earnings season. I think we're very dependent on the data flows as it comes out on the domestic economy. The Fed announcement was just another wake-up call that we're not in the clear and the market in the last couple of weeks traded like maybe we started to clear the concerns, but it's not over yet," said Gina Martin Adams, institutional equity strategist at Wells Fargo Securities. "We expect the market to stay very volatile and we have another Fed meeting in a month ... until we get clarity stocks remain volatile, and probably trade sideways at best."
Besides Fed speak and China, markets will be watching the U.S. data calendar. Existing home sales are reported Monday, and new home sales are Thursday. There are durable goods Thursday, and consumer sentiment and the final revision to second-quarter GDP on Friday.
Read MoreThe Fed has to deal with its own zombie apocalypse
"It's jampacked next week. You get a little housing, a little consumer, a little industrial. That could be market moving. I suspect the U.S. data is not going to show any weakness coming from overseas, so investors are going to be focused more on any data from China," said Adams. The next piece of Chinese data are leading indicators Tuesday.
Other Fed officials will be speaking ahead of Yellen's Thursday appearance, including St. Louis Fed President James Bullard who appears on CNBC's "Squawk Box" on Monday for two hours, beginning at 7 a.m. ET.
Yellen said the Fed could still hike rates this year, but markets were also concerned that it downgraded its view of U.S. growth and trimmed inflation expectations. As for Yellen, markets will look for reassurances from her on the U.S. economy, although she emphasized it was doing well when she spoke Thursday. Markets were shaken by the Fed's concerns that China could have a broader economic impact, even though markets were already rocked this summer by those same fears.
Read More UK pushes to be 'China's best partner' despite fears
""The Fed speaking calendar comes to life, but not as much as it should because there's a lack of clarity," said Jefferies money market economist Tom Simons.
"Their lack of clarity is one reason the market is acting the way it is. If they had communicated the rate hike was not a strong possibility, things would be easier to swallow today," he said.
Simons has been expecting a December rate hike. "On the margin, this makes it a little less likely they would go in December. Frankly, they were significantly more dovish than I had anticipated. You think about what needs to happen between now and then, in order for concerns to be mitigated, you need things to get better in a hurry," he said. "I don't know if three months is enough time to determine whether negative forces have abated."
Read MoreDovish Fed scares financial markets
As for Xi, Simons said he is watching for any comments on the economy; he will even be watching the Chinese leader's body language.
"If the Fed were just dealing with the U.S. economy in a vacuum they could have raised rates any time," he said. "What's keeping them from doing that is commodity prices."
The worry has been that China's slowing will filter through to the U.S. economy via emerging markets as well as bringing deflation from falling commodities prices. JPMorgan economists in a report said a 1 percent GDP shock in China equates to a half-point drag on global growth. The hit on emerging markets is one for one, but the drag on development markets is more like 0.2 percent, according to JPMorgan.
JPMorgan international economist David Hensley does not expect to get much more insight from Xi but he will be following him, as he moves from Seattle to Washington.
Read MoreCounting each word, Yellen's core message hasn't moved
"Obviously, everybody's keen to understand better what's happening with growth and policy in China, and I'm sure this is going to come up both in the business meetings and with the president, and if he (Xi) does have a press conference," said Hensley. "I think they've tried to deal with this issue already in other forums, including the G-20 meeting, to try to reassure that they're not doing anything radical with regards to their currency, which is a sore point, not only here but in Asia."
China has been looking to reform policy but it has been criticized for using a heavy hand in markets it is trying to open up, and traders have been skeptical that the country's economic reports are not trustworthy.
"One of his important messages is going to be just to reassure people that the Chinese economy is slower but not weak and is not a source of instability, and that policymakers have a steady hand and know what they're doing. Are we going to learn anything from that? Probably not. It's more about tone. Does he establish the confidence that's been missing up to now?" said Hensley.
Monday
Earnings: Lennar, Red Hat
7:00 a.m.: St. Louis Fed President James Bullard on "Squawk Box"
10:00 a.m.: Existing home sales
1:00 p.m.: Atlanta Fed President Dennis Lockhart
Tuesday
Earnings: Autozone, CarMax, Carnival, Darden, General Mills
9:00 a.m.: FHFA home prices
7:00 p.m.: Atlanta Fed's Lockhart
Wednesday
Earnings: Steelcase, Worthington Industries
9:45 a.m.: Manufacturing PMI
12:30 pm Atlanta Fed's Lockhart
Thursday
Earnings: KB Home, Nike, Accenture, Bed Bath & Beyond, Pier 1 Imports, Jabil Circuit
8:30 a.m.: Initial claims
8:30 a.m.: Durable goods
10:00 a.m.: New home sales
5:00 p.m.: Fed Chair Janet Yellen on inflation/policy at University of Massachusetts
Friday
Earnings: Blackberry
8:30 a.m.: Real GDP Q2 (third)
9:15 a.m.: St. Louis Fed's Bullard
1:25 p.m.: Kansas City Fed President Esther George
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93c1c67bc99f1ad5f16649d951699ca5 | https://www.cnbc.com/2015/09/18/yale-gets-interest-from-1648-dutch-bond-report.html | Yale gets interest from 1648 Dutch bond: Report | Yale gets interest from 1648 Dutch bond: Report
The Sterling Memorial Library on the Yale University campus in New Haven, Connecticut.Craig Warga | Bloomberg | Getty Images
Yale University will receive $153 in interest on a water bond issued in 1648 from a Dutch water authority, Bloomberg reported.
The perpetual bond, worth $509, was issued by the Dutch water authority de Stichtse Rijnlanden, per the report. It is written on goatskin and is among five of the world's oldest bonds that still pay interest, Clarion Wegerif, a spokeswoman for the water authority, told Bloomberg.
Read More The world's priciest diamond?
Yale paid 24,000 euros in 2003 to acquire the bond as an artifact but hasn't received any interest payments since. The money is due to pay out on Monday, according to the report.
Read the full coverage at Bloomberg.
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304ec8911b515bce6f46696d52633021 | https://www.cnbc.com/2015/09/19/biotech-ceo-bass-exploiting-weakness-in-system.html | VIDEO6:2506:25Acorda CEO strikes back to Kyle BassFast Money
Hedge fund heavyweight Kyle Bass has set his sights on a big bet against the biotech space, but one CEO is defending his company and fighting back against the activist's claims.
"Kyle Bass is actually not the problem," Dr. Ron Cohen, Acorda CEO & President told CNBC's "Fast Money" traders this week.
"He is unimportant in the sense that he is a symptom of a bigger disease here—because he's exploiting a weakness in a system that Congress created a couple of years ago," he added.
Read MoreBass: China's real problem is its banking sector
Cohen is referring to the Inter Partes Review procedure, nicknamed IPR. The process was originally put in place to protect company's rights against so called patent trolls — people who misuse patents as a business strategy. But Cohen says IPR now serves a very different purpose.
According to Dr. Cohen, the IPR system deliberately created a lower standard for judging whether patents are valid or not.
"What this new IPR system has done is to create a second system that companies like mine have to deal with, along with the existing Hatch-Waxman system and that's dangerous," he said.
"It's scaring away investors who as it is, have to wait between 10 and 15 years for us to successfully develop a drug," Cohen added.
The CEO claims that if these patents are not protected, biotech companies will find themselves in real trouble. That may play to the advantage of hedge fund Hayman Capital's Kyle Bass, who is betting against many of these stocks.
Bass is actively seeking to invalidate patents through IPR challenges of biotech and pharmaceutical companies, while shorting each company's stock. Bass has launched thirty two IPR challenges against biotech companies under the organization he founded, Coalition for Affordable Drugs.
The hedge fund big has been unsuccessful in his pursuit against Acorda's patents. So far, two of Bass' challenges were rejected by the patent office but he has since re-filed for the same two patents and two additional.
Bass appeared on CNBC's "Squawk on the Street" Tuesday, to discuss for the first time the goals he hopes to reach by betting against these biotech companies.
"We're going to file on less than 1 percent of the drugs that exist, but the ones that we're after are kind of egregious examples of evergreening," said Bass, speaking of drugs that have extremely long patents. That costs the public "tens of billions of dollars a year in prescription drug prices," he added.
Bass's argument is that patients are forced to pay brand name prices for drugs that he believes should already have generic counterparts, but are shielded by the patents in place. Yet the seemingly altruistic crusade could turn out to be exceptionally profitable for Bass.
"We're well funded, and we have all the time in the world the way we have this set up," said Bass. "We want challenges heard on their merits, and if we win, drug prices get lowered for everyone."
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a0c9b15f9008fcf7ae17fa4fd0c4998c | https://www.cnbc.com/2015/09/19/feds-case-for-continued-cheap-money-not-compelling-bullard.html | Fed's case for continued cheap money not compelling: Bullard | Fed's case for continued cheap money not compelling: Bullard
James Bullard, president of the Federal Reserve St. LouisKatie Kramer | CNBC
St. Louis Fed President James Bullard said he argued against last week's decision by the U.S. Federal Reserve to hold interest rates steady, and felt other policymakers had not made a compelling case for yet again delaying a rate hike.
Bullard does not currently vote on the Fed's policy setting committee and thus could not join Richmond Fed chief Jeffrey Lacker in dissenting from the decision to hold rates near zero for at least another six weeks.
But he was sharply critical of the decision in remarks to a community banking group here.
Read MoreFed has to deal with its own zombie apocalypse
"The Committee has not, in my view, provided a satisfactory answer," to how near zero interest rates align with close to full employment and continued economic growth, Bullard said. Even though inflation is weak, rates will still be extraordinarily low even after an initial rate increase, Bullard said, and thus would continue to support economic growth and ultimately higher prices.
"The case for policy normalization is quite strong," Bullard said, contending that the Fed's dual employment and inflation objectives "have essentially been met."
Rather than clarify the Fed's direction, Bullard said last week's decision seemed to increase uncertainty about the direction of the U.S. economy.
VIDEO1:4101:41Fed's Bullard: US must beware 'asset price bubbles'
Bullard has been among the more vocal proponents of an earlier rate hike, though last month on the sidelines of the central bank's Jackson Hole summit in Wyoming he acknowledged that global market volatility might cause the central bank to hold fire.
However markets have appeared more stable in recent weeks, and Bullard said there seemed no reason to hold back.
"It is as if the Fed, upon making a single 25 basis point move, will suddenly be adopting a restrictive monetary policy," he said in a prepared presentation. "But this is far from the truth."
Thirteen of 17 Fed members last week said they still expect to hike rates this year, so Bullard's criticism may be only narrowly about timing. The Fed meets again in October and December to debate whether to begin raising rates.
But it also indicates a larger degree of division creeping into the central bank's discussions, as new concerns about low global inflation weigh against the progress the U.S. economy has made in lowering unemployment.
San Francisco Fed President John Williams said on Saturday in New York the decision last week had been a "close call."
In its statement, the Fed cited global risks as a main concern.
Note: Bullard will appear on CNBC's "Squawk Box" on Monday, Sept. 21 at 7am.
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b5f83b04215478a3f0c510a0fed71ac3 | https://www.cnbc.com/2015/09/19/joe-biden-moves-closer-to-making-his-white-house-move-wsj.html | Joe Biden moves closer to making his White House move: WSJ | Joe Biden moves closer to making his White House move: WSJ
Vice President Joe BidenGetty Images
Vice President Joe Biden is dropping strong hints that he will indeed enter the 2016 White House fray, The Wall Street Journal reported on Saturday, indicating an announcement is more a question of when than if.
According to the publication, which cited sources familiar with Biden's thinking, he may make his intentions public before the first scheduled Democratic debate on October 13. His team is still debating the best time to jump into the relatively small pool of contenders for the Democratic nomination, and the WSJ stated that Biden may yet decide against a run.
Read MoreMark Cuban: I could beat Trump and Clinton
That said, aides told The Journal that plans are moving ahead to sharpen a campaign message and raise funds.
In recent weeks, speculation surrounding the vice president's intentions has reached a fever pitch as Democratic front-runner Hillary Clinton's campaign has seemingly foundered in the wake of an e-mail controversy that's called her trustworthiness into question.
The former Secretary of State still holds a sizable national lead, but has fallen behind Senator Bernie Sanders in key early voting states of Iowa and New Hampshire.
Although Biden has yet to make his plans clear, recent polling has shown him running competitively in the Democratic field, as well as against the top GOP contenders. The race, however, has been largely characterized by an anti-Washington sentiment that has given rise to outsider candidates such as Sanders and Republican front-runner Donald Trump.
The full report can be found on The Journal's website (note subscription may be required).
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a2301f87a5299d002666ef702002c509 | https://www.cnbc.com/2015/09/19/tv-watchers-giving-cable-companies-their-walking-papers-at-intensifying-pace-.html | VIDEO2:5602:56Cord cutting on the riseFast Money
It all started with a simple sentence.
"Trends among younger audiences ... will continue to put pressure on the multichannel ecosystem," said Disney CEO Bob Iger during the company's third-quarter conference call on Aug. 4. Those comments stoked fears of cord cutting and sent shares of Disney and other media companies into a tailspin.
According to a new survey, Iger's fears may be justified. The data show that the so-called "cord-cutting" phenomenon—where consumers jettison traditional cable and satellite packages in favor of streaming services—is about to get a lot worse. A new report by Magid Advisors surveyed 2,400 consumers and found that cord cutting is not only on the rise, but it's happening much quicker than industry watchers anticipated.
According to Magid, 3.7 percent of pay TV subscribers age 18 to 64 said they were "extremely likely" to cancel their pay TV service in the next 12 months. That number is up from 2.9 percent in 2014, and represents a 95 percent increase over results from 2011.
Read More TV won digital wars without firing a shot: Author
"This is not some sort of a cliff problem; this is more of a very slow drip-drip-drip problem," Magid President Mike Vorhaus told CNBC's "Fast Money" this week.
"3.7 percent is a pretty important number if you're trying to grow by 10 or 15 percent a year," he added. "That's another 3 or 4 percent that you've got to pick up. And all these small numbers add up to big dollars over time."
Even more significant are the results from respondents in the 25 to 34 age-range. Among that demographic, 7.1 percent of pay TV subscribers said they were "very likely" to cancel their service in the next 12 months.
The results are even gloomier among current non-subscribers. Just 5 percent of respondents said they were "very likely" to subscribe to pay TV service within the next 12 months.
When asked the reasons why they would consider canceling pay TV service, 77 percent of very likely cord cutters cited over-the-top video as a key factor. Half of respondents said they were satisfied with online streaming options like Netflix and Hulu, while 30 percent said pay TV was too expensive.
Observers agree that cord cutting is a threat to mainline networks and cable providers, they differ on its practical impact. For the time being, companies like Netflix, which pays more than $3 billion a year in licensing and production fees to major media companies in order to offer their content on its platform, still rely somewhat on old line broadcasters.
Read More Cutting the cord on media—and their stocks
That, however, is changing rapidly. Streaming companies are increasingly offering their own set of original programming, luring paying customers away from cable and satellite television. BTIG media and technology analyst Rich Greenfield told CNBC that a combination of more consumer options and cost considerations could indeed support the cord-cutting trend.
"The price/value of the traditional cable video bundle is getting worse by the day, with a seemingly infinite array of alternatives to spend your entertainment time," Greenfield said. "In turn, forecasting an acceleration in cord cutting/cord shaving is reasonable and prudent."
Greenfield said companies such as Netflix, Amazon and even a new Kardashian app stand to benefit "as more consumers 'cut' or 'shave' the cord," and free up dollars to spend elsewhere.
Despite the consistent increase in those likely to cut the cord, Vorhaus said the pain will likely be gradual for traditional media companies.
"There will still be plenty of people in the younger generation that have cable today and will continue to have cable into the future," he said.
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621595f9a47eb06710e779e65deea7ee | https://www.cnbc.com/2015/09/20/apples-ios-app-store-suffers-first-major-attack.html | Apple's iOS App Store suffers first major attack | Apple's iOS App Store suffers first major attack
VIDEO3:4103:41Hack attack on Apple’s iOS app storeInternet
Apple said it was cleaning up its iOS App Store to remove malicious iPhone and iPad programs identified in the first large-scale attack on the popular mobile software outlet.
The company disclosed the effort after several cyber security firms reported finding a malicious program dubbed XcodeGhost that was embedded in hundreds of legitimate apps.
It is the first reported case of large numbers of malicious software programs making their way past Apple's stringent app review process. Prior to this attack, a total of just five malicious apps had ever been found in the App Store, according to cyber security firm Palo Alto Networks.
The hackers embedded the malicious code in these apps by convincing developers of legitimate software to use a tainted, counterfeit version of Apple's software for creating iOS and Mac apps, which is known as Xcode, Apple said.
VIDEO3:2203:22iOs 9 troubles? You're not aloneClosing Bell
"We've removed the apps from the App Store that we know have been created with this counterfeit software," Apple spokeswoman Christine Monaghan said in an email. "We are working with the developers to make sure they're using the proper version of Xcode to rebuild their apps."
She did not say what steps iPhone and iPad users could take to determine whether their devices were infected, but in a broader statement released by the company, Apple said it took security "very seriously" and that iOS was "designed to be reliable and secure from the moment you turn on your device."
Apple declined to say how many apps it had removed. But researchers said infected apps included Tencent's popular mobile chat app WeChat, car-hailing app Didi Kuaidi and a music app from Internet portal NetEase.
Chinese security firm Qihoo360 said on its blog that it had uncovered 344 apps tainted with XcodeGhost.
Palo Alto Networks Director of Threat Intelligence Ryan Olson said the malware had limited functionality and his firm had uncovered no examples of data theft or other harm as a result of the attack.
Still, he said it was "a pretty big deal" because it showed that the App Store could be compromised if hackers infected machines of software developers writing legitimate apps. Other attackers may copy that approach, which is hard to defend against, he said.
Read MoreApple customers report devices crashing on iOS 9 update
"Developers are now a huge target," he said.
The tainted version of Xcode was downloaded from a server in China that developers may have used because it allowed for faster downloads than using Apple's U.S. servers, Olson said.
Didi Kuaidi said in an emailed statement users' privacy was not intruded upon, and the app has been immediately updated to address the issue.
In a mea culpa on its official Weibo microblog, NetEase apologized to users, saying their private information was not compromised and a fix has been issued.
- CNBC.com contributed to this report.
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884a0029b1429a862fe07271c6e7a588 | https://www.cnbc.com/2015/09/20/asian-stocks-set-to-fall-after-fed-takes-us-markets-down.html | Asian stocks skid on growth fears, but China bucks trend | Asian stocks skid on growth fears, but China bucks trend
Stocks on the benchmark S&P/ASX200 index are seen in this share price board at the Australian Stock Exchange in Sydney.Peter Parks | AFP | Getty Images
Asian stocks outside China skidded on Monday, tracking an uninspiring lead from Wall Street, as the Federal Reserve's decision to keep interest rates near zero stoked concerns about global growth.
"It's going to be a really tough week because we have the combination of [uncertainty] over what the People's Bank of China (PBOC) and the Fed wants. It seems that the Fed has moved the goalpost and that upset U.S. markets on Friday," Adrian Mowat, MD and chief Asian and emerging market equity strategist at J.P. Morgan, said early Monday.
"We are [seeing] people closing out risk positions so you see the weakening, [as well as] the yen and euro beginning to appreciate," Mowat added in his interview with CNBC Asia's "Squawk Box."
Dollar-yen inched down 0.2 percent at 119.77 in Asian trade, while the euro gained 0.1 percent of its value against the U.S. dollar to trade at 1.13.
Read MoreAsia's key risks this week: China flash PMI, Japan inflation
Major U.S. averages finished sharply lower last Friday, with the closing down 1.7 percent. The S&P 500 and tech-heavy Nasdaq Composite lost 1.6 and 1.4 percent respectively.
Meanwhile, attention may also turn to Greece, where Prime Minister-elect Alexis Tsipras claimed victory in the country's general elections on Sunday and will return to power in a coalition government with the right-wing Independent Greeks. Speaking to cheering crowds in a central Athens square, Tspiras said he "felt vindicated" after quitting in August to start on a clean slate with voters, Reuters reported.
China indices rebound
China's Shanghai Composite index reversed a more than 1-percent loss to end up 1.9 percent on Monday, outperforming regional peers who followed the negative cues from Wall Street.
Among the mainland's other indexes, the benchmark CSI300 Index bounced up 1.8 percent, making most of the gains in the final hour of trading. Small-caps made bigger advances to clinch more than one-week highs, with the Shenzhen Composite and start-up board ChiNext closing up 3.5 and 4.7 percent respectively.
"It's getting difficult to predict how the market is going to move on a weekly basis," said Hao Hong, managing director of research & chief strategist at the Bank of Communications International. "Last week, we saw interesting pricing action especially in the last half [and] hour before the market close. The market tends to rally or plunge 4-5 percent at the last hour of trading, making it very difficult to predict."
The country's top economic planner announced the implementation of mixed ownership reforms in electricity, oil, rail and airlines sectors as part of Beijing's overhaul of its inefficient state-owned enterprises, Reuters cited state media reports on Monday. Related stocks advanced as a result; Huadian Power International and GD Power Development rose more than 1 percent each, while Air China led gains in the aviation sector by climbing 4 percent.
In other news, current market perceptions of China are "thoroughly divorced" from the reality on the ground, according to the latest China Beige Book (CCB) survey, which has found that while the economy slowed in the third quarter, there are no signs of an impending growth collapse.
VIDEO3:2503:25Where are China stocks headed? Hard to say: ProSquawk Box Asia
ASX skids 2.2%
Australia's index finished at its lowest level in nearly a week as the possibility of a slowdown in global growth ignited 'risk-off' sentiment.
"Australian stocks have been suffering today after global sentiment was dented by the Fed leaving rates on hold. December is now the most likely date for the Fed to raise rates this year, but in the wake of last week's decision many believe they could be forced to wait until 2016, adding to the general sense of pessimism about the global economy," IG's market analyst Angus Nicholson wrote in a note.
"The main bright spot for the ASX at the moment is the prospect of further mergers and acquisitions, but a general sense of pessimism is likely to continue until some decent data on the Chinese economy starts to filter out," Nicholson added.
All four major lenders crashed between 2.4 and 3.2 percent, contributing significant downside pressure on the bourse. Investment group Macquarie Group slumped 1.9 percent and insurer QBE tanked 2.4 percent.
Miners were almost among the worst-hit, with market bellwether BHP Billiton falling 2.8 percent. Rivals Rio Tinto and Fortescue Metals also skidded 3 and 4.1 percent respectively.
Shares of energy producers turned mixed as oil prices edged up in early Asian trade. Santos erased early losses to close up 0.6 percent, while Woodside Petroleum lost 3.1 percent, recovering slightly from a more than 4-percent loss at the open. The oil and gas producer is reportedly considering raising $2-3 billion in debt to fund a sweetened takeover bid for Oil Search, whose shares ticked up 0.1 percent.
Read MoreImmigration hardman Scott Morrison is new Aussie Treasurer
Kospi loses 1.6%
South Korea's Kospi index broke a four-day winning streak after pulling back from a more than one-month high attained in the previous session.
Among losers, the bourse's top weighted stock Samsung Electronics tumbled 3.4 percent, while Hyundai Motor and Posco eased more than 3 and 2 percent respectively. Semiconductor chipmaker SK Hynix also fell 2.7 percent.
VIDEO4:4204:42Why JPMorgan still sees potential in EMsSquawk Box Asia
EM Asia down
Taiwan's weighted index chalked up losses of nearly 2 percent on Monday, with large-cap Hon Hai Precision Industry Co falling 1.5 percent following a report by the Nikkei business daily that it is buying Sharp's liquid panel display business.
Tourism stocks failed to get a boost from news that the government is raising the cap on Chinese tourists to 5,000 per day from 4,000 previously starting Monday. Formosa International Hotel and Leofoo Development closed down 1.6 and 2.2 percent respectively, while Eva Airways plunged 2.6 percent.
Malaysia's FTSE Bursa Malaysia KLCI fell 1.3 percent as investors eyed news that the U.S. Federal Bureau of Investigation (FBI) launched an into allegations of money-laundering at state fund 1MDB, the Wall Street Journal reported on Sunday citing an unidentified source.
The Malaysian ringgit lost more than 1 percent of its value versus the greenback to trade at 4.250.
Meanwhile, markets in Japan are closed for the Respect for the Aged Day.
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cc4568cc00665cbdb2c266650a999937 | https://www.cnbc.com/2015/09/20/china-pmi-japan-inflation-singapore-taiwan-data-risks-to-asia-markets.html | Asia's key risks this week: China flash PMI, Japan inflation | Asia's key risks this week: China flash PMI, Japan inflation
An investor observes stock market at a stock exchange hall in Jiujiang, China.ChinaFotoPress via Getty Images
As financial markets in Asia recover from the Fed's decision to keep rates unchanged, other risk events will likely serve up fresh volatility this week.
China's flash Caixin purchasing managers' index (PMI) for September will be announced on Wednesday at 9.45am local time.
In the previous month, activity in the mainland's manufacturing sector slowed markedly, underlining signs of sputtering growth in the world's second-largest economy. The final Caixin/Markit PMI slipped to 47.3 in August, the lowest reading since March 2009, while the official PMI dropped to 49.7 - the weakest level since August 2012.
A print above 50 indicates an expansion in activity while one below points to a contraction.
Read MoreA 'third mandate' for Fed as China worries take hold
In Japan, consumer inflation, scheduled for release on Friday, is expected to stay flat last month, according to estimates from Moody's Analytics, underscoring the need for policymakers to offer fresh fiscal and monetary support to bolster a fragile recovery. Core consumer prices were muted in July from a year-ago period.
"Japan's inflation is likely to weaken thanks to lower energy prices taking inflation further away from the Bank of Japan's [BOJ] 2 percent target," Shane Oliver, head of investment strategy and chief economist at AMP Capital, said last Friday.
Taiwan is set for a data-heavy week, with exports, unemployment and industrial output for August due Monday, Tuesday and Wednesday respectively. Moody's forecasts the string of economic indicators will reveal further negative impact from China's slowing economy and weak global demand.
"Weak Chinese demand is weighing on export-oriented industries, while low global oil prices drag on chemical and plastic manufacturing. The outlook for industrial production is subdued, as softer global demand hurts the export‐driven economy," analysts wrote in a note issued on Friday.
As such, Taiwan's central bank may cut interest rates for the first time since 2009 when it meets on Thursday, economists polled by Reuters said, amid a weaker growth outlook. Eight economists out of 14 re-polled by the newswire expect the central bank of the Republic of China to lower its discount rate to 1.75 percent from 1.88 percent. The re-poll was done last week following the Fed's decision to hold off on raising interest rates, citing worries over the global economy.
The Philippine central bank is also scheduled to meet on Thursday.
Read MoreBehind Singapore ruling party's victory, a rising star
Singapore's consumer prices likely fell for the tenth straight month in August, with the data due on Wednesday. The consumer price index (CPI) is seen easing 0.4 percent last month, according to a poll by Reuters, unchanged from July.
The country also releases industrial production data on Friday, which may continue to suggest the possibility of a technical recession and the need for monetary easing. Industrial output is expected to fall 4.8 percent in August from a year earlier, the Reuters poll said, better than the 6.1 percent drop in the preceding month. However, on a month-on-month basis, output is forecast to have slipped 0.1 percent, down from the 1.0 percent rise in July.
"Singapore's manufacturers have been hurt by China's slowing economy and continued weak external demand. Electronics production remains beset by the global PC slump, while pharmaceuticals production looks to have entered a cyclical downturn, compounding a lack of demand from Europe," Moody's analysts said last week.
Finally, it will be a holiday-shortened trading week for some countries in the region. Markets in Japan will be shuttered from Monday to Wednesday, while Singapore, Malaysia and Indonesia celebrate Hari Raya Haji with public holidays on Thursday.
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7ba1897c6d5564fbcf938a10b29fe57c | https://www.cnbc.com/2015/09/20/former-icc-chief-dalmiya-dies-at-75.html | Former ICC chief Dalmiya dies at 75 | Former ICC chief Dalmiya dies at 75
Jagmohan Dalmiya at a press conference on November 28, 2001 in Kolkata, India. Dalmiya has died of a heart attack in Kolkata. He was 75 years old. Dalmiya was in city's BM Birla Hospital since Thursday night after he complained of chest pain and breathing troubles. He is survived by his wife, son Abhishek and a daughter.Subhendu Ghosh | Hindistan Times | Getty Images
Former International Cricket Council (ICC) chief Jagmohan Dalmiya, hailed as the architect of India's rise as the game's financial superpower, passed away in a private hospital in Kolkata on Sunday.
The Board of Control for Cricket in India (BCCI) president was admitted to hospital after suffering a heart attack on Thursday. He was 75.
"Mr Dalmiya played a significant part in positioning Indian cricket at the global level and the astute administrator in him guided Indian cricket to greater heights," BCCI secretary Anurag Thakur said in a statement.
A businessman known for his marketing acumen, Dalmiya was a key figure in bringing the 1987 World Cup to the sub-continent and was elected ICC chief in 1997.
VIDEO0:3100:31Facebook expecting special guest at Town Hall
"The ICC extends its deepest condolences upon the passing away of BCCI President and former ICC President Jagmohan Dalmiya," the world governing body tweeted.
President Pranab Mukherjee, Prime Minister Narendra Modi and cricket great Sachin Tendulkar also took to Twitter to mourn the cricket administrator's death.
Read MoreWhat cricket can teach us about currencies
"Heartfelt condolences to the family & friends of Jagmohan Dalmiya. Had met him in June. Little did I realise that it would be the last (time)," Tendulkar tweeted.
"Will always cherish his encouragement & support over the years. Worked hard for the game of cricket & excelled as an administrator," added the retired batting great.
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5f02271331b0ff67601b8510d89e4274 | https://www.cnbc.com/2015/09/20/gold-hovers-near-3-week-high-as-equities-slip.html | Gold retreats from 3-week high as dollar, equities rise | Gold retreats from 3-week high as dollar, equities rise
Getty Images
Gold retreated from the previous session's near three-week high on Monday as strength in stocks and the dollar dampened a rally fueled by the Federal Reserve's decision last week to keep U.S. interest rates on hold.
Wall Street and European stocks rebounded more than 1 percent in rallies that, along with gains in the dollar and global oil markets, pointed to a tentative recovery in investor confidence after the Federal Reserve delayed an interest rate hike.
was down 0.5 percent at $1,132.91 an ounce, while U.S. gold futures for December delivery settled down 0.4 percent at $1,132.80 per ounce.
VIDEO1:4901:49A golden opportunity: 4 trades in goldFast Money
"The weaker euro and a little recovery in the equity markets has robbed it (gold) of a bit of its steam," said James Steel, chief metals analyst for HSBC Securities in New York.
"The fact that the Fed didn't raise rates last week is going to lend some sort of long-term support to the market."
Gold held in a narrow range earlier this month on uncertainty over whether the Fed would hike rates for the first time in nearly a decade, lifting the opportunity cost of holding non-yielding bullion while potentially boosting the dollar.
It rose sharply after the Fed shied away from a hike on Thursday, peaking at $1,141.50 the following day, but has now retreated below that level.
With the Fed still expected to hike rates before the end of the year, gold could come under pressure again.
Read MoreGold rally set to fizzle out: Expert
"My personal feeling is that the Fed still wants to raise rates and still expects to, but that there is still considerable uncertainty over the timing," Mitsui Precious Metals analyst David Jollie said. "While the market expects rates to rise, any upside for gold should be somewhat limited."
Later in the session, Atlanta Fed President Dennis Lockhart said that the six weeks until the Fed's next meeting in October may not be enough time to quell concerns about the global economy and possible risks to the U.S. recovery.
Silver rose 0.1 percent at $15.17 an ounce, while platinum was down 1.3 percent at $966.25 an ounce and palladium was up 1.3 percent at $610.75 an ounce.
China's platinum imports rose 16 percent in August, while palladium imports fell nearly 37 percent and silver imports more than doubled.
"The silver price is clearly finding support from China again," Commerzbank said in a note.
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adf1f548c33148d366d7fc94cda6fed9 | https://www.cnbc.com/2015/09/20/greece-election-main-parties-vie-for-power-as-polls-close.html | Syriza hangs on to power | Syriza hangs on to power
Left-wing prime minister Alexis Tsipras has secured enough votes to be declared winner of the second Greek general election this year.
CNBC keeps you up to date with the latest news from Athens.
Mobile readers click here.
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6160498733cfab6ff938e62b58d37599 | https://www.cnbc.com/2015/09/20/jamie-dimon-government-shutdown-is-just-bad-management.html | Jamie Dimon: Government Shutdown is Just Bad Management | Jamie Dimon: Government Shutdown is Just Bad Management
VIDEO1:4901:49Dimon: DC gridlock slowing economic growthClosing Bell
The head of America's largest bank called the possibility of another government shutdown "just bad management."
"A democracy is a compromise by its nature. It's not a dictatorship. So anyone who says, 'my way or the highway on one issue,' isn't necessarily thinking about the United States of America," JPMorgan Chase CEO Jamie Dimon said in an interview airing Sunday on NBC's "Meet the Press."
Read MoreDimon: Don't read too much into this, but...
Conservative Republicans are threatening to force a government shutdown over federal funding of Planned Parenthood. Congress must pass some type of spending bill by the end of the month in order to avert the government coming to a halt.
But several conservative members, outraged by videos produced by an anti-abortion rights group, say they will not vote for a bill that includes funding for Planned Parenthood. The organization runs clinics across the country that provide women's health services, including abortions in some states.
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Jamie Dimon, chief executive officer of JPMorgan Chase, at 2015 WEF in Davos, Switzerland.David A. Grogan | CNBC
Jamie Dimon, in some ways, is the embodiment of the Wall Street that many of the presidential candidates are running against and he understands why he's kind of their punching bag. "You know, we had a crisis. A lotta people got hurt. And the average American looks at what happened and they kinda blame Wall Street which I would-- it's generally true," the CEO said. But he said mistakes have been admitted and that his bank and others are part of the solution now.
As for backing someone in the 2016 election, Dimon demured, "I am not going to get involved in politics at this point." In the past, Dimon has donated to Hillary Clinton but he admitted that that he hasn't decided who he will back yet.
However, he did weigh in on whether he thought a CEO has the right attributes to be President of the United States. "I think a CEO has attributes that are important to have ... It's not sufficient though. I think you have a whole other set of attributes."
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8c9b316b52cf047b968ebbbe8cfca54f | https://www.cnbc.com/2015/09/20/mega-founder-kim-dotcom-facing-extradition.html | After years of delay, Mega founder Kim Dotcom faces extradition | After years of delay, Mega founder Kim Dotcom faces extradition
Simon Watts | Getty Images
Nearly four years after dozens of black-clad police rappelled into his New Zealand mansion and cut him from a safe room, flamboyant German tech entrepreneur and would-be hip-hop star Kim Dotcom may finally be about to face the music.
A New Zealand court hearing starting on Monday will determine whether Dotcom will face charges of copyright infringement, racketeering and money laundering in the United States related to the Megaupload file-sharing site he founded in 2005.
Well known for his hip-hop inspired photo shoots with scantily clad women and luxury cars, Dotcom had assets including computers, art works, a pink Cadillac and bank accounts holding millions of dollars frozen after the 2012 raid in the hills outside Auckland.
VIDEO2:0702:07'Wicked growth' for PrimeSquawk Alley
U.S. authorities say Dotcom and three co-accused Megaupload executives cost film studios and record companies more than $500 million and generated more than $175 million by encouraging paying users to store and share copyrighted material, such as movies and TV shows.
"The U.S. ... took down the entire Megaupload site, went ahead and froze all their assets and did this with great publicity and public fanfare and did it in coordination with the very powerful force in the United States, from Hollywood," Dotcom's lawyer, Ira Rothken, told Reuters.
"We feel as though Kim Dotcom ... will not have a fair procedural playing field because he won't have any assets with which to mount a defence for the largest copyright case in history."
Thumbing his nose at U.S. authorities, Dotcom set up a new cloud storage company call Mega after being bailed, but has since distanced himself from the business.
Monday's hearing will be watched by developers like Dotcom working in the grey areas of the law prevalent at the Internet's cutting edge for signs of how far Washington is willing to go to protect U.S. copyright holders, said Tom Pullar-Strecker, who covers technology for Fairfax Media in New Zealand.
"You just have to look at what the U.S. has achieved already through this action. Kim Dotcom's business, Megaupload, has been destroyed really through simply taking the action," he said. "It had an immediate chilling effect."
Read MoreNetflix CEO: All TV will be Internet in 10-20 yrs
Megaupload accounted for about 4 percent of total traffic on the Internet in its heyday as users stored and shared files containing everything from wedding videos to Hollywood films.
Since his arrest, Dotcom, a German national and New Zealand resident, has been barred from leaving the country or venturing more than 80 km (50 miles) from his mansion, and is required to report to police twice a week.
The prosecution must prove that a crime was committed in both the United States and New Zealand in order to trigger an extradition treaty between the allies.
In an opinion submitted in support of Dotcom, Harvard law professor and copyright expert Lawrence Lessig argued that Washington's case does not meet those requirements.
"An attempt has been made to extract facts from multiple sources and over a wide span of time, to organise a large number of otherwise disconnected facts by using systematic phraseology and to juxtapose phrases in order to create an impression of coherence and substance," Lessig wrote.
"However, the attempt fails to reach its goals."
A spokeswoman for the New Zealand Crown Law service declined to comment.
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acdf612197aaf3311e7ecbbcbd06fe64 | https://www.cnbc.com/2015/09/20/oil-prices-edge-up-as-us-drilling-declines.html | US oil settles up $2, or 4.48%, at $46.68 a barrel | US oil settles up $2, or 4.48%, at $46.68 a barrel
A pump jack and pipes at an oil field near Bakersfield, California.Lucy Nicholson | Reuters
Oil prices rallied on Monday, with U.S crude closing up more than 4 percent, amid a jump in gasoline prices and on concerns that U.S. crude production may slow as drilling steadily declines.
Global oil benchmark Brent gained 2 percent, narrowing its premium over U.S. crude to below the $2 a barrel level due to improved fundamentals for U.S. crude.
Gasoline futures on the New York Mercantile Exchange were up over 3 percent after a fire was reported on Saturday at an unit of Husky Energy's 155,000 barrel-per-day (bpd) refinery in Lima, Ohio.
The premium for refining gasoline from crude, known as the gasoline crack, reached its highest in nearly two weeks, rising a combined 17 percent over two sessions.
In crude oil, market intelligence firm Genscape added to positive sentiment by estimating a draw of nearly 810,000 barrels in the week ending Sept. 15 from storage tanks at Cushing, Oklahoma, the main delivery point for U.S. crude futures, traders who have seen the data said.
VIDEO3:1703:17The next catalyst for lower oil pricesCapital Connection
Cushing stocks fell nearly 2 million barrels in the week to Sept. 11, the biggest draw since February 2014, U.S. government data showed.
Crude traders also focused on the soon-to-expire front-month contract in the West Texas Intermediate (WTI), which serves as the U.S. benchmark. WTI's October contract will go off the NYMEX board after Tuesday's settlement, and November will move up as the front-month.
"We're seeing some crackspread action as we move toward WTI expiration and it's all contributing to the bump higher," said Donald Morton, energy trader for Herbert J. Sims & Co, an investment banking house based in Fairfield, Connecticut.
U.S. crude's front-month closed up $2, or 4.48 percent, at $46.68 a barrel.
Read MoreThe biggest winners off of the Fed decision
The front-month in Brent rose $1.36, or 2.87 percent, to $48.82.
U.S. drillers have cut the number of oil rigs in operation for three straight weeks.
Oil-rig reductions suggest a decline of more than 250,000 bpd in U.S. crude production between the second and fourth quarters of this year, Goldman Sachs said in a report.
Energy consultancy Wood Mackenzie estimated that $1.5 trillion of "uncommitted spending on new conventional projects and North American unconventional oil" was uneconomic at even $50 a barrel.
"While operators are seeking an average cost reduction of 20-30 percent on projects, supply chain savings through squeezing the service sector will only achieve around 10-15 percent on average," Wood Mackenzie said in a report.
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0cef861d413cf5f40cd22d08424f6487 | https://www.cnbc.com/2015/09/20/post-fed-what-will-the-vix-do-until-year-end.html | Post-Fed, what will the VIX do until year-end? | Post-Fed, what will the VIX do until year-end?
Aydinynr | Getty Images
Markets have seen a spike in volatility after the Federal Reserve announced its intention to keep short-term interest rates near zero for another month at least.
After being mostly in a downtrend for the past three weeks, the CBOE Volatility Index - often known as the market's "fear gauge" - headed back above its long-term average level of 20 and ended at 22.28 last Friday.
That marked a rise of 4.36 percent from Thursday's close of 21.14. The VIX measures prices of options on the and hence the magnitude of expected moves in stocks.
With uncertainty around the Fed's monetary policy set to continue, what do you think the VIX will do until year-end?
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54643a7c1a4251e1fae2478267f318ae | https://www.cnbc.com/2015/09/20/refugee-crisis-almost-11000-migrants-walk-into-austria-on-sunday.html | Almost 11,000 migrants walk into Austria on Sunday | Almost 11,000 migrants walk into Austria on Sunday
A migrant woman and her children waits on a railway track after Hungarian police sealed the border with Serbia near the village of Horgos, Serbia, September 14, 2015, near the Hungarian migrant collection point in Roszke.Marko Djurica | Reuters
Roughly 10,700 migrants walked into Austria from Hungary on Sunday while a motorway passing through the border was partially closed, police spokesmen said.
Croatia, faced with growing crowds on its territory after Hungary barricaded its border with Serbia against migrants heading north, has been bringing people to its border with Hungary, which has been shuttling them to reception centers near Austria's eastern flank.
Roughly 10,700 migrants had arrived since midnight, a spokesman for the police in the eastern province of Burgenland said. Saturday's total was roughly 10,500.
VIDEO1:4001:40Solutions not quotas needed on migrants: Slovak Minister
Almost all of those arrivals were at the town of Nickelsdorf, which has generally been the main crossing point for migrants coming from Hungary. Buses and trains took many on to emergency accommodation elsewhere, and others took taxis, a Reuters witness said.
Another police spokesman said Vienna-bound lanes on the A4 motorway, which goes through the border near Nickelsdorf, were closed for security reasons, without elaborating. The police have previously closed lanes of that motorway because of migrants setting off for Vienna on foot.
A spokesman for motorists' group OeAMTC later said the lanes had reopened, but there were traffic jams.
In Styria, a southeastern province that borders Slovenia, 500 migrants entered the country on Sunday, a spokesman for the police in that province said.
Read More
Meanwhile, 13 migrants died on Sunday in Turkish waters when a boat carrying 46 people en route to Greece collided with a dry cargo vessel and capsized, a Turkish coast guard source said.
Six of those killed were children and 20 others were rescued, the source said. Seven of those rescued were receiving treatment.
The boat had left the Turkish coast near Canakkale province.
The search continues to find 13 missing people.
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324eef37ddd7e77cceceaaeb5454f45d | https://www.cnbc.com/2015/09/20/taiwans-hon-hai-offers-to-buy-sharps-lcd-business-wants-apple-funds-nikkei.html | Foxconn offers to buy Sharp's LCD business: Nikkei | Foxconn offers to buy Sharp's LCD business: Nikkei
Sharp's LED television sets.Getty Images
Taiwan's Hon Hai offered to buy Sharp's struggling liquid panel display business and plans to seek funding from Apple, the Nikkei business daily reported on Monday.
The report did not specify how much Hon Hai, also known as Foxconn, was willing to pay for the loss-making operations, but said it would seek funding from Apple, a key Sharp customer.
Sharp said it could not yet comment on the report except to say it was "considering various options for the restructuring of the LCD business". Hon Hai was not immediately available for comment.
Osaka-based Sharp was once a highly profitable manufacturer of premium TVs and a favoured screen supplier to Apple and others, but it has come under heavy pricing pressure from Asian rivals.
In May, it sought a bailout of roughly $1.9 billion from banks and promised to cut 5,000 jobs, or 10 percent of its staff.
VIDEO2:0402:04Apple's iPhone sales dominatesSquawk Box
Chief Executive Kozo Takahashi had initially resisted calls from investors for a more drastic overhaul of the LCD business, saying he was not considering a spin-off.
But in July, he told reporters that Sharp's losses, totaling 28.8 billion yen ($240.42 million) on an operating basis in April-June, meant it needed to consider more options.
Read MoreSharp is selling the world's first 8K TV for $133K
Sources told Reuters last month that Sharp was considering a tie-up with Hon Hai as well as cash injections from other entities including the state-backed Innovation Network Corporation of Japan, a top shareholder in Sharp rival Japan Display.
Tie-up talks between Hon Hai and Sharp fell through in 2012 after the Japanese company baulked at demands that it said would have given the Taiwanese firm too much control. The two corporations remained in contact and jointly operate a plant in Osaka, western Japan, that makes large LCD panels.
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992b1accec8d3760d80e91f04cd4b10f | https://www.cnbc.com/2015/09/20/turnbull-names-former-immigration-minister-scott-morrison-treasurer.html | Immigration hardman Scott Morrison is new Aussie Treasurer | Immigration hardman Scott Morrison is new Aussie Treasurer
Scott Morrison, Treasurer of AustraliaWILLIAM WEST | AFP | Getty Images
Australian Prime Minister Malcolm Turnbull has appointed Scott Morrison as treasurer, handing the conservative lawmaker the top economic job in his new cabinet in an effort to mend party divisions following the ouster of Tony Abbott.
Morrison won both praise and condemnation as immigration minister for his ruthlessly efficient implementation of Australia's policy of turning back boatloads of asylum seekers arriving from Asia.
Most recently, Morrison had been tasked with steering through difficult welfare reforms as social services minister.
Other changes in the much anticipated cabinet reshuffle were the appointment of Maris Payne as defense minister, one of five women in the new cabinet, and former Education Minister Christopher Pyne as industry, innovation and science minister.
Read MoreOmnishambles! What's with Australian politics?
"Today, I'm announcing a 21st century government and a ministry for the future," Turnbull told reporters in Canberra. "Very big changes to meet very big challenges to help all of us seize very big opportunities."
Turnbull's Liberal Party and its junior coalition partner, the National Party, won a landslide election in 2013 under Abbott, promising stability, economic reform and to stop asylum seekers arriving by boat.
Abbott was ditched on Monday after months of destabilizing infighting and a series of gaffes and perceived policy missteps.
Turnbull, a multimillionaire former investment banker, lawyer and technology entrepreneur, is Australia's fourth prime minister in just two years.
A liberal in favor of marriage equality and action on climate change, Turnbull is popular among the business community and wider electorate but held in deep suspicion by some right-wing members of his ruling coalition.
His rise to power gave the Liberals a lift in opinion polls and was credited with helping them in their weekend by-election win in Western Australia.
VIDEO2:4802:48Here's a 'purr-fect' cafe in SydneySharing Economy
Veteran political commentator Malcolm Mackerras said the new cabinet should give the government a boost as it heads into elections expected next year.
"I think Turnbull will lead them to a second victory," he said.
Read MoreWhat a new PM could mean for Australia's economy
Along with Foreign Minister Julie Bishop and Trade Minister Andrew Robb, who retained their portfolios, Morrison, 47, was seen as one of the few stars of the Abbott government.
Morrison takes on his new role as Australia's $1.5 trillion economy grapples with the end of a powerful mining boom and as top trading partner China adjusts to slower, more consumer-focused growth. Former treasurer Joe Hockey would be resigning from parliament, Turnbull said.
Defense Minister Kevin Andrews was dropped after less than a year in the job.
The removal of Abbott and his loyalists is seen as a setback for a Japanese bid to build stealth submarines for Australia.
Abbott and Japanese Prime Minister Shinzo Abe enjoyed a close relationship that saw Japan emerge as the early front runner for the A$50 billion ($36 billion) programme.
But Japan's reluctance to commit to building the majority of the submarines in Australia has seen it lose ground to German and French proposals.
The new cabinet is expected to be sworn in on Monday.
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932cce64174319df6b1b5756c833d719 | https://www.cnbc.com/2015/09/20/ubs-chairman-fed-to-raise-interest-rates-in-december.html | UBS' Weber sticks to his guns on Fed hike call | UBS' Weber sticks to his guns on Fed hike call
VIDEO4:2904:29UBS: Fed is still in risk management mode
UBS' chairman is sticking to his call for higher U.S. interest rates this year despite being wrong on his prediction for a move at last week's highly anticipated meeting.
Last week, Axel Weber told CNBC he expected the Federal Reserve to commence its tightening of monetary policy at the conclusion of its two-day review on Thursday. But instead, the central bank held its powder dry in what analysts dubbed the most important monetary policy decision in decades.
"What I said was the Fed would move sometime this year, most likely in September, because I thought the U.S. economy was strong enough to withstand a rate hike," the former president of Germany's central bank told CNBC at the sidelines of the fourth annual Singapore Summit this weekend.
He's now expecting action at December's meeting, justifying his call by referring to the fact that the Fed's dot plot signaled higher rates will arrive this year. But once rates are actually lifted, Weber doesn't anticipate an immediate tightening cycle to follow. Rather, he believes the Fed will only move at every second meeting.
Read MoreLess than zero: Are negative rates next for the Fed?
"The Fed is more in a mode where, rather than gearing monetary policy to the most likely development of the economy, they're in a risk management mode still," he said, adding that markets have reacted adversely to the cautious tone since it indicates the U.S. economy isn't as strong as expected.
Indeed, Thursday's decision to leave rates unchanged surprised several experts, including Weber, who pointed to healthy consumer spending, housing and employment reports as factors supporting a rate hike.
Axel WeberSource: World Economic Forum
"The underlying economic data in the U.S. warrants a rate hike," Weber told CNBC last Wednesday. His sentiments were also echoed in CNBC's latest Fed Survey that showed 49 percent of respondents expected the central bank to raise rates on Thursday.
To be sure, a tepid U.S. economy wasn't the sole decision behind Fed Chair Janet Yellen's decision.
Read MoreFed puts bite back in FANG stocks: Top technician
"The Fed—unlike in the past—seemed to be focused on more global developments, also the impact of global developments on [domestic] inflation," Weber explained, noting that roughly two-thirds of U.S. inflation right now is driven by factors like the ongoing commodity slump and global output gaps.
But that global focus doesn't mean the central bank's attention has shifted to the international stage, he warned.
"The Fed is always concerned about financial stability in a more abstract, domestic sense, rather than global financial stability... It's more that the downturn in the global economy, and in particular of emerging markets and commodities, is going to have an additional impact on [U.S.] prices."
It's also taking into account the divergence of global monetary policy, he continued. The European Central Bank, People's Bank of China and the Bank of Japan are all expected to unleash further stimulus, which will have a big effect on global commodities, currencies, and stocks so the Fed is very aware of that, he said.
The central bank's real communication challenge still lies ahead, Weber concluded, citing fears that the later the Fed moves, the faster it will have to act if the economy is really strong and inflation is picking up.
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790b87383641a6e71dd5d32052b5bc8a | https://www.cnbc.com/2015/09/20/weaker-currencies-may-not-help-asian-economic-growth.html | A weaker currency can sometimes be bad for growth | A weaker currency can sometimes be bad for growth
VIDEO4:2804:28Why weaker currencies may be bad for EMsSquawk Box Asia
A weaker currency is usually perceived to be good for the economy; exports get a lift as shipments become more competitive abroad while some consumers are weaned away from costly imports to goods produced in-house.
Such a scenario should therefore be music to the ears of policymakers in Malaysia, for instance, where the local currency has been droopy for a while now, amid graft allegations against Prime Minister Najib Razak as well as a rout in commodity markets.
Read More Warning: EM bounce will be short-lived
Except it isn't. Frederic Neumann, Co-head of Asian Economics Research at HSBC, notes that in many emerging markets, a swift depreciation of the currency can actually hurt growth prospects.
Such headwinds typically play out in two ways. Firstly, a rapidly falling exchange rate pushes up local market interest rates as cash flees outside the borders.
Evidence suggests that in periods of excessive stress in currency markets, the amount of capital as a share of economic output that leaves emerging markets is greater than in the case of developed markets. As a result, domestic financial conditions tighten and borrowing costs rise.
Kuala Lumpur, MalaysiaGetty Images
Secondly, a currency in freefall also raises concerns over macroeconomic stability and limits risk appetite. In such a scenario, the amount of money lent by banks can fall by a greater amount than a simple increase in interest rates.
"The context matters, too. If, to begin with, growth is highly credit intensive, with debt driving consumption and investment, then the impact of tightening in financial conditions on growth can prove severe," Neumann says.
"In addition, if overseas demand is lackluster, the fall in the currency may lead to only a limited pick-up in exports. Unfortunately, most of emerging Asia is currently facing both conditions," he said.
So are all emerging market countries equally susceptible? No, notes Neumann.
Read More
He expects a marked tightening of financing conditions in Malaysia to adversely impact demand in the coming quarters. Indonesia and India, on the other hand, should be hurt less given the smaller debt pile in the former and somewhat more orderly forex moves in the latter.
"Fortunately, exchange rates have fallen while US dollar rates have remained relatively stable (with the latest Fed decision postponing a climb in overseas funding costs). But once these start to rise, local financial conditions in emerging markets are bound to tighten further," Neumann said.
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9b9434c764544054b0982a4f78868537 | https://www.cnbc.com/2015/09/21/3-struggling-stocks-to-watch-for-a-rally.html | Walt Disney shares look like they have found their footing after a rough run and may make a strong buy moving forward, some CNBC "Fast Money" traders said.
The stock lost 15 percent in August but is still up nearly 10 percent for the year. Investors could jump into the stock if it continues to grind higher, trader Guy Adami said.
It looks appealing if it breaks through $105 per share, about $1.50 higher than where it closed Monday, Adami said. Traders Steve Grasso and Karen Finerman, who both own Disney either personally or through their firms, said they would hold on to the stock.
China's first Disney flagship store in Shanghai last May.Getty Images
United Continental Holdings
Trader Tim Seymour said United Continental Holdings looks "beaten down" after losing more than 9 percent this year. However, he noted the stock has "upside" at the low price and because of its free cash flow.
Read MoreWhy do airlines choose routes? It's not always about $
Biogen
Drugmaker Biogen has fallen more than 12 percent this year, and trader Steve Grasso said it gives "bang for your buck." The stock dropped more than 5 percent Monday with the rest of the sector after presidential candidate Hillary Clinton tweeted that she wanted to address "price gouging" for drugs.
Read MoreBiotech falls on Clinton 'price gouging' comments
Disclosures:
Tim Seymour
Tim Seymour is long AAPL, BAC, CLF, DIS, F, GE, GM, GOOGL, INTC, JPM, T, TWTR, Tim's firm is long BABA, BIDU, MCD, NKE, NOK, SBUX, YHOO.
Steve Grasso
Steve is long AAPL, BA, BAC, CC, DD, DIS, DECK, EVGN, FIT, KBH, MJNA, MU, PFE, PHM, T, TWTR, GDX, firm is long BP, CVX, GLD, AMZN, MCD His kids own EFA, EFG, EWJ, IJR, SPY.
Karen Finerman
Karen is long BAC, C, FINL, FL, GOOG, GOOGL, IBB, JPM, KORS, KORS call spreads, M, URI, she is short SPY, Her firm is long ANTM, AAPL, BAC, C, DIS, FBT, FINL, FL, GOOG, GOOGL, GPS, IBB, JPM, KORS, KORs calls, M, M calls, SUN, URI, URI long puts, XBI, KORS call spreads, M call spreads, her firm is short IWM, SPY, MDY, USO, Karen Finerman is on the board of GrafTech International.
Guy Adami
Guy Adami is long CELG, EXAS, INTC, Guy Adami's wife, Linda Snow, works at Merck.
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d38f4b04539443adbea2abeb10aee0f9 | https://www.cnbc.com/2015/09/21/9-unconventional-pope-francis-collectibles-.html | 9 unconventional Pope Francis collectibles | 9 unconventional Pope Francis collectibles
Pope Francis bobble heads are displayed at a souvenir store in Washington, DC on August 27, 2015.Andrew Caballero-Reynolds | AFP | Getty Images
Ahead of Pope Francis' arrival in the United States on Tuesday, entrepreneurs have gotten creative when it comes to souvenirs and collectibles.
In addition to the rosary beads, biographies and commemorative T-shirts, companies have begun selling some pretty offbeat items.
Read on to see some of the lowbrow pope kitsch that's hitting high gear.
—By CNBC's Sarah Whitten Posted 21 Sept. 2015
The 2015 Commemorative Pope Toaster.Source: Amazon.com
Debby Fireman, founder of marketing company Fireworks, is spreading the love for Pope Francis with her commemorative Pope Toaster.
A metal insert of the pope's image is placed on one side of the toaster filament. An insert on the other side says "spread the love." Put in a slice of bread and voila!
The toaster works best with light-colored breads. It's being sold on ToastThePope.com for $48.95.
Philadelphia Brewing Co.'s Holy Wooder beer made for Papal visit.Source: Philadelphia Brewing Co.
If you would like to make a different kind of toast in honor of Francis' visit, there are plenty of brewing companies rolling out pope-inspired alcohol for the occasion.
Cape May Brewing Co., a microbrewery and taproom in New Jersey, has created a specialty pale ale called You Only Pope Once.
In Philadelphia, Francis' third and final stop in the U.S., Philadelphia Brewing Co. has brewed up a Belgian style triple called "Holy Wooder" (that's how they pronounce "water" in Philadelphia). Crime & Punishment Brewery is offering "Jesus Wept" and Manayunk Brewery, which had its brewing water blessed by a priest, has released "Papal Pleasure."
Pope plush doll.Source: Amazon.com
Bleacher Creatures, the company behind the true-to-life plush figures of athletes and entertainment icons, has gone one step further to bring you 10-inch stuffed pope.
The company even went so far as to create a new category for the pope-inspired plush called "inspirational."
The plush figure is being sold via the company's website for $19.99.
Kikkerland Solar Pope StatueSource: Amazon.com
In honor of the pope's arrival, Kikkerland Design has created a papal figure that waves, using solar power. Place this statue near a window or on a dashboard and it will move whenever the sun shines.
According to the company's website, 2 percent of sales of the product will be donated to UNICEF.
Pope Bobblehead.Source: Amazon.com
Joining the ranks of sports stars and other celebrities, the pope is now a bobblehead thanks to Royal Bobble.
It is the official bobblehead of the World Meeting of Families in Philadelphia and can be bought on Amazon for $29.99.
Pope cardboard cutoutSource: Amazon.com
With all the crowds pouring into D.C., New York and Philadelphia, you may not be able to get your picture taken with the pope.
But, not to worry. Catholic to the Max, a shop in Steubenville, Ohio, is selling a life-size cutout of Francis online. The 5-foot-9 cutout is made from Gatorfoam, a material stronger than cardboard, and will cost you $160.
Pope Francis musical Pope Mobile.Source: Kensington Row Collection
Want a popemobile? The replica comes with a miniature Francis and spins 360 degrees on a rotating platform.
The souvenir plays an excerpt from Handel's "Hallelujah Chorus" and will cost $85 to $105 online.
Cool Pope Francis Twin Duvet.Source: Cafe Press
You can find just about anything on the Internet, including a Pope Francis pop art duvet cover.
Sold by CafePress, an online retailer of stock and user-customized products, this twin-sized comforter could grace your bedroom, if you're willing to pay the $128 price tag.
Pope Francis Shower Curtain.Source: Cafe Press
Also from CafePress, consumers can purchase a Pope Francis shower curtain to adorn their bathtub.
The product will cost you $59.99 and does not come with a liner, rings or shower rod.
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e30d207bce5aa981b95b833273998a75 | https://www.cnbc.com/2015/09/21/a-look-at-alibaba-one-year-after-its-ipo.html | Open Sesame? Alibaba one year on | Open Sesame? Alibaba one year on
Alibaba Group Executive Chairman Jack Ma.Getty Images
One year on from its barnstorming debut on the New York Stock Exchange, Chinese e-commerce behemoth Alibaba is weighed down by more brickbats than bouquets amid fiery competition and slumping market value.
Shares have tumbled nearly 30 percent since launching the world's largest initial public offering on September 19 2014, shaving off nearly $140 billion from the company's market value since November's peak, according to Reuters.
The company's second-quarter earnings report in August failed to excite investors, with annual gross merchandise volume (GMV)— considered a proxy for gross sales—rising at its slowest pace in over three years. More weakness is expected after the firm's head of investor relations said two weeks ago that GMV for the September quarter was below expectations.
Most recently, a prediction of a further 50 percent decline in Alibaba's stock price by Barron's triggered a swift rebuke from Hangzhou headquarters, prompting worries of more price declines ahead.
In response to concerns about poor revenues, Robert Christie, Alibaba's vice president of international media, told CNBC during a phone interview that the company was more focused on the long-term and does not manage from quarter-to-quarter, adding that the firm was unable to discuss forward looking revenues.
Read MoreTencent's $1.6B plan to take on Alibaba, Amazon in cloud
Unfortunately, Alibaba's received a good deal of bad news in the past year, explained Tim Barrett, retailing analyst at Euromonitor.
"It's taken some hits amid rising competition from companies like JD.com, issues with mobile computing, and there are consumer expenditure worries across China."
VIDEO3:1803:18Alibaba's quick rebuttal to Barron'sSquawk Alley
Fellow Chinese e-commerce firm JD.com, which is also listed in New York, saw second-quarter revenue soar 61 percent on year, well ahead of Alibaba's 29 percent, while annual GMV climbed 82 percent, versus Alibaba's 34 percent.
To be sure, Barrett notes that JD.com is only growing faster because it's smaller. Of the total business-to-consumer market, JD.com only has a 14.4 percent share of internet retailing in China as of 2014 whilst Alibaba has 43.5 percent, he said.
"Additionally, Alibaba faces competition from Vipshop and Amazon, among others. These companies might not have the scale to compete with Alibaba, but they specialize in specific products, services, or markets, which might limit Alibaba's product categories and offerings expansion," said R.J. Hottovy, Morningstar strategist in a recent note.
Read MoreAlibaba is using AI to take on Amazon, Microsoft
Alibaba is also having trouble with its transition to mobile computing.
"It's take rate with mobile sales—both via T-mall and Taobao—is actually smaller than when consumers buy over PCs. This is an issue that needs to be solved," Barrett noted.
But Christie points out that Alibaba currently boasts 307 million active buyers on mobile.
The perennial issue of counterfeit products and infringing goods also remain a stubborn thorn in Alibaba's side.
"On some of their sites, there's too much counterfeit stuff and when you're a U.S. listed company, you need to have brand integrity for what you sell. Alibaba argues that they're not in control but they need to keep control," warned Bruce Rockowitz, CEO and vice chairman of Global Brands Group.
Global Brands is currently considering a joint venture with Alibaba and JD.com, and Rockowitz told CNBC that he was optimistic on the outlook for both firms.
In Alibaba's defense, the firm says it has the most aggressive anti-counterfeit program of any e-commerce company in the world, pointing to its more than 2000 staffers using cloud computing and data mining tools to identify counterfeits as well as its work with local authorities to fight the issue.
"Counterfeiting is a China problem; it's not an Alibaba problem. For the year ending December 2014, we took down 90 million counterfeit products so we are taking this very seriously," Christie noted.
VIDEO2:0602:063 issues with Alibaba
For others however, Alibaba's issues are much more fundamental.
"What we're concerned about are the company's investments in dozens of other firms. There isn't enough disclosure to know whether Alibaba is investing or whether these are just expenses," Herb Greenberg, partner at independent research firm Pacific Square, told CNBC.
This lack of disclosure could lead to inflated profits, or hidden losses, he said. In comparison, JD.com has fewer concerns about circular transactions and it does a much better job of disclosing information, he added.
But Alibaba immediately dismissed those concerns, with Christie telling CNBC that every investment the firm has made since going public reflects the company's long-term strategy, which he described as being soundly transparent to investors.
"We follow the law wherever we do business."
Moreover, China's strict mobile payment regulatory scrutiny is another major obstacle to Alibaba. Beijing plans to limit the daily amount individuals can purchase via third-party payment systems like Alipay, Alibaba's finance arm, media reported last month.
"Considering that roughly 80 percent of transactions on Alibaba's China retail marketplaces were settled through Alipay, any type of regulatory tightening and supervision policy could significantly affect Alibaba's business operations," noted Morningstar's Hottovy.
On a broader level, as the world's second-largest economy experiences a bout of financial market volatility and its slowest pace of growth in six years, investors are afraid the negative sentiment will spread to consumer spending and retailers like Alibaba. August data showed Chinese retail sales rose by a better-than-expected 10.8 percent on year, but that was still little changed from July's 10.5 percent increase.
"Alibaba is a company that is designed to be around for the next 120 years and every element of our business strategy reflects that," countered Christie.
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add6bebae2826be111fc6ce275a1c88c | https://www.cnbc.com/2015/09/21/adb-cuts-asia-2015-growth-forecasts-on-india-china-slowdown.html | ADB slices Asia growth forecasts | ADB slices Asia growth forecasts
A farmer harvests rice on a field next to residential buildings on the outskirts of Hanoi.Hoang Dinh Nam | AFP | Getty Images
Asia's growth outlook has taken a haircut from slowdowns in China and India as well as developed markets' soft recovery, the Asian Development Bank (ADB) said in a new report, cutting its forecasts for the region.
"The first half of 2015 has been softer than expected across the board," the ADB said, citing harsh winter weather and labor disputes at the U.S.'s West Coast ports and Japan's weak economic recovery as key impacts on growth. "Emerging markets are facing receding capital flows and depreciating currencies - a trend that may be exacerbated by the upcoming rise in U.S. interest rates."
The ADB cut the region's growth outlook to 5.8 percent for 2015 and 6.0 percent for 2016, down from its previous 6.3 percent forecast for both years. That compares with the region's growth rate of 6.2 percent in 2014.
Read More A weaker currency can sometimes be bad for growth
It isn't clear how much of a concern the slower growth rate should be. Piyush Gupta, chief executive of DBS, told the Milken Institute's Asia Summit last week that as economies grow in size "a glide path of slower growth" was to be expected. With China on a path to slower growth, the region's exports, particularly of commodities, are taking a hit, he noted.
But he added: "China at 5-6 percent [growth] still puts a Germany on the map every four years. It's not negative growth. It's still creating massive demand. But it might not be enough."
The ADB cut its forecast for China's growth to 6.8 percent for 2015, down from its previous forecast of 7.2 percent and below 2014's 7.3 percent growth rate. It expects the growth rate of the world's second largest economy will fall to 6.7 percent in 2016.
"Despite robust consumption demand, economic activity fell short of expectations in the first eight months of the year as investment and exports underperformed," the report said. "As external demand strengthens with the pickup in growth in the industrial countries, and as improved financial conditions support investment, downward pressure on growth will ease."
Read More China's economic growth sputters in August
India's forecasts were also cut by 40 basis points to 7.4 percent for this year, down from a previous forecast for 7.8 percent growth.
"External demand weakness and slower-than-expected pace of enacting key reforms are holding back India's growth acceleration," the ADB said, but it added that it expected 2016 growth to pick up to 7.8 percent as reforms began to take hold.
The ADB also cut the outlook for the Southeast Asian region to 4.4 percent this year, the same pace as in 2014, but down from its previous forecast for 4.9 percent. It said it expected growth to rise to 4.9 percent in 2016.
"Thailand has yet to bounce back from its 2014 slump, while infrastructure investment has fallen behind schedule in Indonesia and the Philippines. Drought in several countries, and floods in Myanmar, have hurt agriculture," the ADB said. "Vietnam, by contrast, is growing faster than anticipated earlier this year, powered by foreign direct investment and buoyant private consumption."
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e0ac2ed5b0c64c4a1ac4784a3dae8621 | https://www.cnbc.com/2015/09/21/allergan-ceo-fires-back-on-clinton-tweet.html | VIDEO7:2807:28Allergan CEO: Turing price raise 'one egregious situation'Mad Money with Jim Cramer
Jim Cramer reminded investors on Monday that when high-quality stocks go lower, they get cheaper. That is exactly how he feels about Allergan, the acquisitive drug company formerly known as Actavis.
Allergan's stock has been slammed recently, but Cramer thinks the story behind this company could be even better today than it was before. The FDA recently approved Allergan's new anti-psychotic drug, Vrylar, and the company has lined up even more acquisitions to grow its business, including the $300 million AqueSys deal earlier in the month.
Additionally, Allergan is in the process of selling its generic drug business to Teva for $40.5 billion, and if the transaction is approved by the regulators, it could give Allergan enough cash to make yet another transformative acquisition.
"This stock has powered higher year after year, and every time you have bought it into weakness, it has ultimately made you a killing," the "Mad Money" host said.
Biotech stocks were hit hard on Monday when a tweet from presidential candidate Hillary Clinton said that the price gouging by drug companies should be stopped, and would lay out a plan to stop it. If Clinton becomes president, should drug companies like Allergan be worried?
All of our intelligence says that it is going to be very hard for Hillary or any other candidate to really have a profound impact on drug pricingBrent SaundersCEO of Allergan PLC
Brent Saunders, CEO of Allergan.Adam Jeffery | CNBC
To find out, Cramer spoke with Allergan CEO Brent Saunders. The CEO said, "All of our intelligence says that it is going to be very hard for Hillary, or any other candidate, to really have a profound impact on drug pricing. That being said, we have to take this very seriously because it creates a lot of pressure on the system." (Tweet this)
Saunders explained that Allergan does not participate in egregious price increases. So while it does take single-digit price increases from time to time, the company is not in the high- priced drug game. Instead, it focuses on innovative and private paying medicines.
"The example she [Hillary Clinton] tweeted about today was just one egregious situation. I think we have to separate the one-off kind of situations with what really happens. And, keep in mind, we need to have good pricing to create innovation," Saunders said.
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Saunders cited the cure for hepatitis C as an example of this innovation. Such developments will cost money, so drug companies should be open to that while being careful about how large price increases will impact patients.
Going forward, Saunders says he has built a great growth company and is ready to make more strategic acquisitions.
"So what we have is a fantastic growth company. We have a company that is going to be growing top line double digit, expanding margins, a pipeline of 70+ mid to late stage programs and a retooled balance sheet to go out and do more smart, accretive, strategic acquisitions," he said.
Questions for Cramer? Call Cramer: 1-800-743-CNBC
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Questions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com
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