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82eb129dd92bf3f43ae2ead736cc9855 | https://www.cnbc.com/2015/09/29/drone-start-up-flying-high-after-big-win-in-dc.html | Drone start-up flying high after big win in DC | Drone start-up flying high after big win in DC
VIDEO0:3300:33Drone startup flying highStart-ups
A drone start-up coming off a big win with the Federal Aviation Administration now has a fresh cash pile to put more planes in the air.
Washington, D.C.-based Measure announced Wednesday it completed a "significant" funding round for an undisclosed amount and will become independent from investment firm 32 Advisors. The 1-year-old "drone as a service" company uses the unmanned aircraft to gather data for clients in areas ranging from agriculture to insurance to disaster relief.
The cash stream comes shortly after Measure cleared a major hurdle with the FAA, which can give exceptions for commercial use in the absence of blanket regulations for businesses. Earlier this month, it gave Measure permission to deploy more than 300 models of the aircraft, more than any other commercial operator.
Read MoreWhy it's so hard for DC to make rules for drones
Measure says the money will help it expand industrial offerings and open a new Texas office at a time when diverse sectors have started to experiment with the budding technology.
"We think that services are the future. Large customers won't have to worry about owning and operating their own drone fleet," Measure CEO Brandon Torres Declet told CNBC.
Getty Images
The start-up already works with IBM, UPS and the American Red Cross, among others. It operates on the logic that its aircraft can help companies that otherwise could not afford or manage their own drones. Declet declined to give guidance on Measure's client base and sales, but said that the company has generated revenue "since the very beginning."
Drones hold enormous potential in taking pictures, gathering data and reaching difficult spots. Many existing customers have used a plan that starts at $50,000, but smaller businesses can access the drones at much lower price points.
Still, Measure's services are a bet with an uncertain return.
"We'll see what the demand is for this type of service. A lot of companies don't even realize what they can do with this technology," said David Swindell, director of the Center for Urban Innovation at Arizona State University and a drone policy expert.
Read MoreArmed drones are the industry's latest headache
To help address those concerns, Measure has worked on a return on investment calculator to help agricultural clients gauge if the drones will pay off. He believes increasing scale in the coming years will help Measure make the services more affordable for smaller clients.
"I think there's an opportunity here for everyone at every price point," Declet said.
His growth optimism comes amid a messy legal landscape in the United States. Patchwork laws have sprung up around the country as the FAA works to release preliminary regulations for using the aircraft commercially. Regulators are also taking into account privacy concerns as more drones take flight.
However, Declet stressed that the FAA exception earlier this month gives Measure "all of the legal and regulatory approvals (it needs) to operate today."
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cafd640cc0afa23b2001710684eeca39 | https://www.cnbc.com/2015/09/29/e-fund-world-bigger-is-still-better.html | In the hedge fund world, bigger is still better | In the hedge fund world, bigger is still better
VIDEO3:1503:15Bill Ackman: Benefits of short sellers Squawk Box Next 20
Stock market tumult has delivered a stinging hit to a number of areas, notable among them the hedge fund industry, which has seen a promising year turn south in a hurry.
Total hedge assets are back lingering near the $3 trillion mark, after a brutal August sucked out $78.4 billion. Investors on their own added $10.5 billion, but that wasn't nearly enough to offset the losses due to poor performance, according to recent data from industry tracker eVestment.
The culprit was a brutal month that left major stock market averages down 6 percent or more and sent many individual investors scurrying to the sidelines.
Hedge funds actually outperformed the market for the month, with an aggregate loss of 2.31 percent compared to the 6.03 percent drop in the .
The best strategies this year include one mainstay: Going big.
Dave Greenwood | Getty Images
Large funds, with more than $1 billion in assets, have been outperforming their smaller competitors for years, with five-year annualized returns of 8.52 percent, according to Preqin. The trend held in August, with large funds down 1.68 percent, medium (more than $250 million and less than $1 billion) off 1.57 percent and small funds losing 2.4 percent, according to eVestment.
The trend didn't hold up completely: Nelson Peltz's Trian fund dropped 4.8 percent in August (though still outperforming the broader market) while Bill Ackman's Pershing Square plunged 7.7 percent for the month, according to a recent Reuters report.
Read MoreBig-money investors get active in volatile times
The bigger players "have consistently generated outperformance in both the short and long term when compared to smaller-sized hedge funds. Furthermore, these funds have posted superior average returns while also maintaining lower volatility and higher Sharpe ratios over multiple time horizons," Amy Bensted, head of hedge fund products at Preqin, said in a statement. (The Sharpe ratio measures returns adjusted for risk.)
One other notable winner is a surprise: Russia.
In a year when every other emerging market strategy has failed, research firm HFR said its Russia/Eastern Europe Index returned 6.71 percent through August. By comparison, the index lost nearly 26 percent in 2014 and gained just 4.4 percent in 2013, a year that saw the S&P 500 climb some 32 percent.
As the broader market has struggled this year, shorting, or betting against stocks, also has been a winner. The HFRI Short Bias Index gained 5.3 percent in August and was one of only four winning strategies for the month.
Read MoreHarvard's fund is looking for short-sellers
Peter Laurelli, eVestment's head of research, said overall hedge funds are likely to see the money flow dry up, though multistrategy funds could stand above the crowd.
"For the industry in general, flows for the rest of the year are going to be relatively flat," he said in an interview. "We'll see inflows remain very muted, with some redemptions at the end."
Hedge fund investors remain most interested in global macro strategies, with 46 percent of the group saying it's their preferred strategy, according to a Credit Suisse survey cited by brokerage Convergex. Event-driven was next at 44 percent, followed by long-short in the equity markets.
The good news for the industry is the survey found 93 percent saying they would be increasing allocations this year. Laurelli said that "in a wonderful world" total assets could pass $4 trillion in 2016.
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da88bd83c8ca4768624bd460f49d0b8b | https://www.cnbc.com/2015/09/29/edward-snowden-joins-twitter.html | Edward Snowden joins Twitter | Edward Snowden joins Twitter
A frame grab made from AFPTV footage of Edward Snowden.AFPTV | AFP | Getty Images
Twitter got yet another high-profile addition on Tuesday when Edward Snowden sent out his first tweet:
Tweet Snowden
He is using the @Snowden handle with the following description: "I used to work for the government. Now I work for the public. Director at @FreedomofPress."
Snowden had already amassed 88,000 followers within about 40 minutes of sending out that first tweet. Most notable is that he is thus far only following one account: the National Security Agency (NSA).
US should sanction China for hacking: Rackspace exec
Twitter's interim CEO and founder Jack Dorsey responded to Snowden with this tweet:
Tweet Dorsey
Snowden gained notoriety in 2013 for leaking details of the once-secret U.S. surveillance programs conducted by the NSA. He fled to Russia, where he was granted asylum despite demands by the United States that he return to face espionage and other charges.
—The AP contributed to this report.
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02abf3ba89190cba2d63ccb9b0e985ad | https://www.cnbc.com/2015/09/29/facebook-is-going-to-100-trader.html | Facebook is going to $100: Trader | Facebook is going to $100: Trader
VIDEO2:3102:31Facebook is going to $100: TraderTrading Nation
The information technology sector dragged on the on Tuesday as stocks struggled to hold onto gains. Within the group, Facebook was one of the worst performers, tumbling about 3 percent.
However, one options trader thinks the social media company could rally 15 percent in just one month.
"I'm making a stance, right here today on Sept. 29th, 2015, that Facebook will hit $100 by Nov. 1st," Andrew Keene of KeeneOnTheMarket.com said Tuesday on CNBC's "Trading Nation."
"The market is very weak, Facebook's been weak over the last couple of days," Keene acknowledged. But, "If the market can turn around, Facebook can move higher. If it reports strong earnings, Facebook can move higher," he said.
The company is expected to report third-quarter earnings at the end of October, which Keene said could give its stock price a boost. Facebook shares have seen substantial gains this year, but have fallen more than 6 percent in the last week.
Looking at the weekly chart, Keene said Facebook's upward trend is still intact.
He is buying a November 95/100 bull call spread for $1.25, which represents a bet that Facebook will reach $100 by November options expiration.
Read More No, Facebook is not going to charge users a privacy fee
As the broader market has sold off, Keene said, Facebook had managed to make higher highs and higher lows. It's only recently that the social media giant started to dip, he said.
Want to be a part of the Trading Nation? If you'd like to call into our live Wednesday show, email your name, number and a question to TradingNation@cnbc.com
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cc8088e9bd61f40d4256dbb123875051 | https://www.cnbc.com/2015/09/29/fed-in-a-box-will-there-ever-be-a-good-time.html | Fed-in-a-box: Will there ever be a good time? | Fed-in-a-box: Will there ever be a good time?
VIDEO1:5601:56Goldman Sachs cuts S&P forecastPower Lunch
Reduced expectations for economic growth, corporate earnings and stock market gains hardly seem the ideal climate for raising interest rates, but such is the box in which the Federal Reserve finds itself.
Each concern was highlighted Tuesday in a Goldman Sachs analysis that gained significant Wall Street attention. The bank's strategy team cut its full-year earnings estimate by 4 percent to $109, its gross domestic product projection for 2016 by 14 percent to 2.4 percent and further knocked down its year-end target for the stock market index, from 2,100 to 2,000. If that wasn't enough, Goldman also cut its global growth expectations for next year, from 4.3 percent to 3.7 percent.
"Flat is the new up," Chief U.S. Equity Strategist David Kostin and his team proclaimed as the new motto for investors in 2016.
Don't expect those words to show up in any presidential campaign slogans.
The downbeat outlook comes as the market waits on tenterhooks for the Fed to make a move on interest rates. Expectations, including from Goldman, are that the U.S. central bank still will hike this year, probably at December's Federal Open Market Committee meeting.
But faced with a bogged-down economy and the prospect of a government shutdown either in October or December, the Fed will find itself hiking into a less-than-ideal environment.
Read More John Boehner just made Janet Yellen's life harder
"They sort of made their bed, didn't they?" said Jim Paulsen, chief investment strategist at Wells Capital Management.
Janet YellenMary Schwalm | Reuters
Indeed, the Fed has been stuck at zero since late 2008 and could have used any number of opportunities along the way to raise rates but has chosen to stay ultraeasy, each time finding a new rationale for not moving.
Read More Bill Gross to the Fed: 'Get off zero, now!'
Like many other market participants, Paulsen said Friday's nonfarm payrolls report could mark the final point after which the Fed will have no choice but to raise. Economists expect the data to show creation of 206,000 new jobs and an unemployment rate holding steady at 5.1 percent, according to FactSet.
More importantly, Wall Street will be watching for signs of wage growth. The projection is for a climb of just 0.2 percent, pretty much in line with the slow pace over the past seven years, but a sudden jolt, signaling an inflation surge, could cause big problems for the Fed.
"The real bad scenario would be that you just get some shockingly outsized wage (gain). Then there would be absolutely nothing they could do but raise rates, and they'd have to raise in a panic," Paulsen said. "At that point, that would be really bad. I don't think that's the most likely outcome, but it wouldn't be shocking."
How the market would take a move is difficult to gauge, but it's worth remembering that Goldman's reduction in its S&P 500 price target and its belief in a rate increase still factors in a market gain of about 6 percent through the rest of the year.
Read More RBC slashes S&P 500 call, but loves stocks (huh?)
That view looks even more optimistic considering that S&P 500 earnings are expected to have declined 4 percent in the third quarter and to register as barely flat in the fourth quarter.
Market confidence in central bank policy, then, will be critical. Stocks are currently in correction territory, with each of the major averages down around 12 percent from their 52-week highs.
"We believe the Fed as well as the rest of the world's central banks are losing their grip on market prices and that markets are likely to remain volatile while they adjust for either the (slow) removal of crisis-era policies or the waning effectiveness of them," Tony Crescenzi, market strategist at bond giant Pimco, said in an analysis. "As central banks lose their grip, market prices will be on the move."
Judging by futures activity, traders believe a recent round of hawkish talk from top Fed officials is mostly bluster. Traders assign just an 11 percent chance of an October hike, a 39 percent chance in December and a 48 percent probability all the way out into January.
In fact, some in the market believe in a scenario expressed from a couple of members at the last FOMC meeting who said negative rates are a possibility ahead.
"Considering the Fed's starting point, 2016 could be the year when we see negative fed funds as a way of getting money velocity moving up rather than down," Bob Janjuah, an often-bearish fixed income strategist at Nomura, said in a note to clients. "Such a move may work, in that risk assets could react very positively for a period of time, but in the longer run any such moves would only serve to highlight the extraordinary ongoing failure by global central banks to manage economies (both into and) since the 2008-09 crash."
To be sure, there are those on Wall Street who believe the Fed actually has waited too long to raise rates and needs to get moving.
Read MoreFed blowing its chance to raise rates: Economist
Citigroup economist Peter D'Antonio said the FOMC may have been too swayed by an August jobs report—just 173,000 new jobs—that is notoriously volatile and likely will get revised higher.
"We continue to believe that the Fed has enough evidence of labor market improvement and can make a case for inflation reverting to the 2 percent target in the medium term," D'Antonio said in a note. "So the timing of the first rate hike will depend on how quickly the uncertainty and implied drag from international and financial risks (including potential fiscal developments in December) play out and how much weight the Fed gives to these respective influences."
Paulsen, too, believes the Fed, despite the obstacles ahead, is better off making its move sooner rather than later.
"This market is finding a new level that's more like 15 or 16 times (earnings), and I think it's going to do that whether the Fed moves or not," he said. "The quicker they get into that mode the better the Fed is going to be down the road."
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149550b2de8ddf3f49ddd409ac4b71d0 | https://www.cnbc.com/2015/09/29/first-american-dollar-could-fetch-5-million.html | First American dollar could fetch $5 million | First American dollar could fetch $5 million
VIDEO0:3100:31Rare silver dollar goes up for bid
As the saying goes, a dollar ain't worth what it used to be. That is, unless it's a silver dollar from 1794.
One of these rare coins — from the first batch of dollar-denominated coins ever produced in the country — is expected to fetch $3 million to $5 million when it goes up for auction Wednesday.
It's the top lot in a sale of 104 American federal coins from the 1790s to 1830s that are part of the famed Pogue collection, being sold by Stack's Bowers Galleries.
The 1794 silver dollar is one of more than 1,750 that were minted, and roughly 100 that survived, according to Lawrence R. Stack, a founder of Stack's Bowers. Of those surviving coins, only a handful are in top condition.
The first American dollar, from 1794.Source: Stack’s Bowers
A prototype version of the coin sold for $10 million in 2013. And while the one being sold Wednesday isn't as valuable, it's still one of the most prized coins in the world, Stack said.
"It represents the founding of our economic system," he said. "Through the years the dollar has grown to be the dominant currency."
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Stack added that the coin going up for auction Wednesday has an ideal provenance. It was first acquired by Lord St. Oswald, a British aristocrat who acquired many coins during his travels to the U.S. in 1794 and 1795.
Because his travels were so well documented — and his coins kept in such pristine condition — the so-called "St. Oswald" coins are prized in the collecting community.
Lord St. Oswald's silver dollar sold at Christie's for 4,000 pounds in 1964, showing its dramatic increase in value.
Coins in general have turned out to be a wise investment for many collectors in recent years. Collectible coins gained 13 percent in value last year and 92 percent over five years, outperforming art, wine and diamonds, according to the firm Knight Frank.
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e6e8f5bec9364dee44a3a1ee1777e6dd | https://www.cnbc.com/2015/09/29/global-stocks-tumble-commodities-lead-the-slump.html | Global stocks tumble: Commodities lead the slump | Global stocks tumble: Commodities lead the slump
Asian stock markets saw sharp losses on Tuesday with their European peers set to open the session on the back foot.
Japan's Nikkei Index slumped to an 8-month low, down around 4 percent, with Hong Kong and Australian shares also seeing a heavy bout of selling.
Commodity plays were among the biggest casualties as global growth and central bank policy in the U.S. continue to concern investors.
Squawk Box Live kept you updated with all the markets movements. Here's how the morning unfolded.
(App users please click here).
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933ca53599c742aec4234b6d71e04c58 | https://www.cnbc.com/2015/09/29/history-shows-fourth-quarter-rebound-may-be-ahead.html | History shows fourth-quarter rebound may be ahead | History shows fourth-quarter rebound may be ahead
Getty Images
As investors brace for the worst quarterly loss for stocks in four years, all hope may not be lost for a fourth-quarter comeback, if history is any guide.
In the past three months, global indexes sold off as fears of an economic slowdown sent equities across the board into correction territory, marked by declines greater than 10 percent from their highs.
But as the battle between the bulls and the bears ensues, historical data show that U.S. stocks are about to enter a seasonally merry time.
Since 1995, the last three months of the year have been notoriously bullish for the stock market with the posting an average gain of 5 percent—by far the best quarterly return of all four quarters.
"In our view, conditions are coming into place for a seasonal Q4 rally," said Ari Wald, head of technical analysis at Oppenheimer. "In fact, starting October in a downtrend has been followed by the best performance of any month, whether in an uptrend or downtrend, since 1950."
Here's what seasonality shows are the best areas of the market as the year comes to an end:
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60f903aacaae56d736b12ce852755c49 | https://www.cnbc.com/2015/09/29/hku-criticised-by-pro-beijing-supporters-over-johannes-chan-role.html | HKU under pressure on Johannes Chan role | HKU under pressure on Johannes Chan role
Getty Images
The University of Hong Kong (HKU) has come under unprecedented pressure from Chinese government supporters to block the appointment of a liberal scholar, as Beijing tries to rein in freedoms a year after student-led protests rocked the city.
For more than a century, HKU, one of Asia's top universities, has served as a bastion of liberal education in the city that returned from British to Chinese rule in 1997, producing many of its top bureaucrats, politicians and lawyers.
Hong Kong's constitution guarantees the financial enclave a high degree of autonomy denied in mainland China by its Communist leaders, including academic freedom, broad individual rights and an independent judiciary.
But Beijing supporters are trying to thwart the appointment of legal scholar Johannes Chan as a university pro-vice-chancellor.
Liberals see the bid to stymie Chan as part of a broad move to limit academic freedom at an institution whose students played a major role in the 79 days of protests last year that saw thousands take to the streets demanding full democracy.
Chan is one of Hong Kong's most distinguished legal scholars and a prominent human rights advocate. He was recommended for the top academic post last year by a university search committee headed by HKU's president and a global recruiting firm.
But the university's governing council, stacked with supporters of the pro-Beijing Hong Kong government, has repeatedly delayed a vote on his appointment.
VIDEO5:3605:36Use of Firechat in protests was an accident: Open GardenSquawk Box Asia
"They are trying to send a message that if someone is sympathetic to Occupy Central ... there will be repercussions," Chan told Reuters, referring to last year's protests.
Beijing's representative Liaison Office in Hong Kong did not respond to requests for comment from Reuters, nor did the office of Hong Kong leader Leung Chun-ying.
Two sources in contact with the Liaison Office said its representatives had expressed frustration that Hong Kong universities could not be controlled.
'Bubble of freedom'
A senior Western academic at the university who declined to be identified said the campaign against Chan had created a "climate of deep apprehension for all, and a climate of fear for those who are outspoken or politically involved".
"Hong Kong University was in a very special place, its own bubble of academic freedom," said the academic.
"They have moved far faster than I thought they ever would to interfere with that."
Beijing has not publicly stated its opposition to Chan's appointment but Beijing-controlled media has published more than 300 articles since November targeting him.
VIDEO5:3205:32HK's democracy movement isn't dead, yetSquawk Box Asia
Many stress his unsuitability for the job given his public support for last year's protests.
Peter Mathieson, the president of the HKU, told Reuters he believed pressure on him and others who back Chan's appointment was being "orchestrated".
He said his personal emails had been hacked and some had been published in pro-Beijing media, and added that he could not rule out the possibility Beijing was behind the episode.
The university governing council is expected to hold a final vote on Chan's appointment later on Tuesday.
Read MoreHong Kong's digitized fight for democracy
A government think-tank has been lobbying council members to vote against Chan, media has reported, sparking outrage among thousands of Chan's HKU alumni supporters and academics.
Despite the controversy, Hong Kong's universities are much more free than those in mainland China.
"Universities regard themselves as paragons of free speech and freedom of expression and a place where different views can be celebrated and used to the advantage of society," said Mathieson.
"I think my job and the job of our colleagues is to do our damnedest to see those principles protected."
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75f038915b19523126b1d2914e651931 | https://www.cnbc.com/2015/09/29/hollywood-memorabilia-goes-under-the-hammer.html | 'Star Wars' to 'Jaws': Hollywood up for auction | 'Star Wars' to 'Jaws': Hollywood up for auction
Kevin Kane | CNBC
Movie buffs now have the chance to own a piece of cinematic history.
In a three-day event starting Tuesday, Profiles in History, the Calabasas, California-based auction house, will drop the hammer on nearly 2,000 items from Hollywood's past.
"Relatively speaking, especially in contrast to the fine art market, I think memorabilia is a bargain," said Brian Chanes, who culled together the items up for auction.
For a sampling of the items up for sale, click ahead.
— By Kevin Kane, Special to CNBCPosted 29 Sept. 2015
Kevin Kane | CNBC
For men of a certain age, seeing Princess Leia in this slave outfit from "Star Wars: Return of the Jedi" is forever burned into their memories.
This costume, made up of several parts used on screen, also incorporates a few extra pieces from the set.
Unfortunately, the item is a little too delicate to play dress up. Chanes said this costume is "the only one we know of outside of the Lucas archives."
The pre-auction estimate is $80,000 to $120,000.
Kevin Kane | CNBC
This was the first spaceship seen on screen in the original "Star Wars" movie.
Measuring roughly 16 inches with working lights on the back, the "blockade runner" is expected to sell for as much as $300,000.
Overall, Chanes said he's seen "Star Wars" items increase "exponentially" over the years.
Kevin Kane | CNBC
Despite so many rebel fleet troopers wearing these helmets in the original "Star Wars," very few of them still exist.
That's because movies often repurpose these types of items, and take them apart to be used them for other science fiction movies, Chanes said.
This rare piece, the first of its kind to reach public auction, is expected to sell for up to $250,000.
Kevin Kane | CNBC
Authenticating this "Indiana Jones" movie prop was easy — it comes with a letter from "Jones" himself. Actor Harrison Ford used this whip in the film's first three installments.
Estimated hammer price is $100,000 to $150,000.
Kevin Kane | CNBC
Actor Richard Dreyfuss used this diver's light in the original "Jaws" movie. Acquired by Chanes from the film's propmaster, it's expected to fetch up to $2,500.
Kevin Kane | CNBC
Eyyy! This Triumph motorcycle was one of three used by "The Fonz" during the 10-year run of TV classic "Happy Days." (The other two went missing or were stolen.)
If you want to "sit on it," it will likely cost you between $100,000 to $150,000.
Kevin Kane | CNBC
This 1958 Chevy Impala Sport Coupe was used in 1973's "American Graffiti," making it one of the most famous cars in cinema history.
This is the first time the vehicle has been up for sale since the movie hit the big screen. It's expected to carry a price tag of up to $1.2 million.
Kevin Kane | CNBC
This puppet from the "Ted" movies was used for the actors' reference. It's one of only two Ted figures made for the film, and is expected to sell for between $12,000 and $15,000.
Kevin Kane | CNBC
The late Evel Knievel played himself in a 1977 action film called "Viva Knievel!" in which he rode this bike, the Stratocycle.
The motorcycle was later represented by a popular kids toy. This full-size, modified Harley-Davidson is expected fetch up to $300,000.
Kevin Kane | CNBC
This may be the most famous harpoon gun that's ever existed. Used by Robert Shaw's "Quint" in "Jaws," it still has some production blood on it.
Chanes said that when it comes to movie prop auctions, "Weapons are very popular. Be it knives, phasers, lightsabers — people love it."
The pre-auction estimate for the harpoon is $60,000 to $80,000.
Boxing boots worn by Sylvester Stallone in the Rocky movies.Kevin Kane | CNBC
For $50,000 you can get this knockout pair of boots from the "Rocky" Movies. The Nike boots come with a set of boxing gloves (not shown).
Both were used during the production of "Rocky II" and "Rocky III" and are autographed by Sylvester Stallone.
Superman costume made for black & white TV show The Adventures of SupermanKevin Kane | CNBC
"This is probably the most important costume in TV history," Chanes said of this Superman get-up, worn by George Reeves in "Adventures of Superman."
Because the show was originally filmed in black and white, the suit was made from gray and brown wool. This one also comes with the original muscle suit and flying mechanism Reeves used to play the Man of Steel.
This suit's price is expected to fly up to $150,000.
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17e0ea8e451cb4d4b3b3ea208305aa1f | https://www.cnbc.com/2015/09/29/how-apple-disrupted-corporate-it-box-ceo.html | How Apple disrupted corporate IT: Box CEO | How Apple disrupted corporate IT: Box CEO
VIDEO2:2602:26Box CEO: Box growth driven by mobility pushPower Lunch
If there's one thing that can bring together disruptive entrepreneurs at Box and old-line engineers Apple, it's mobility for enterprise tools, Aaron Levie said Tuesday.
"What Apple has done is enabled every individual to have a tablet and a phone that needs to be able to connect to new information from many different platforms," Levie, co-founder and CEO of Box, told CNBC's "Power Lunch." "Our growth at Box has been driven by the push to mobility, which has been core to what Apple has done over the past five years."
Box, a start-up that focuses on cybersecurity and cloud computing for businesses, is in the midst of BoxWorks, a star-studded annual customer conference in San Francisco. Levie sat down with Apple CEO Tim Cook at Tuesday's BoxWorks session, where they discussed Apple's move into enterprise, including a partnership with Box.
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Apple's flagship device, the iPhone, is primarily a consumer product. But the company has increasingly looked toward enterprise customers for revenue, Cook said. At the event, he took a playful jab at competitors Android and BlackBerry, while discussing stronger ties with Microsoft.
Though Apple's Macintosh once competed with Microsoft's Windows, Levie said Apple has separated itself by specifically pushing enterprises to be more innovative and mobile friendly.
"What a lot of people don't recognize is how important and instrumental Apple devices have been for the transformation of IT over the past three or five years," Levie told CNBC. "If you go back 10 to 15 years ago, most of corporate IT was a closed network with personal computers from Windows as the primary operating system and the way that we worked."
Aaron Levie, CEO, BoxScott Mlyn | CNBC
Both Box and Apple recently announced new products targeted at business owners.
Earlier this month, Apple revealed the iPad Pro, with a larger screen, faster processing speed and a high-powered stylus called "Apple Pencil." iPad Pro demonstrations focused on how designers or health-care professionals might use the device.
Similarly, Box announced Tuesday increased cloud storage options for high-definition and 3-D files and medical files. It also introduced a new pricing scheme and an open platform for customers to build Box applications on top of the existing platform.
—CNBC's Deborah Findling contributed to this report.
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18bc023108a58c5a3526b4a6072d6a18 | https://www.cnbc.com/2015/09/29/how-apps-may-win-in-the-ad-blocking-fight.html | How apps may win in the ad-blocking fight | How apps may win in the ad-blocking fight
Westend61 | Getty Images
With the use of ad blockers on the rise, many media companies are scrambling to find ways to make sure their ads are seen. But since ad blockers are mostly designed to work on browsers, there's one area that has an inherent advantage: apps.
"Most ad-blocking software is focused on browsers and display ads instead of ads shown in apps," a Facebook spokesperson told CNBC. "In our case specifically, ad blockers haven't had as much impact — in part because the bulk of ads shown on/by Facebook are delivered on Facebook and in other apps that integrate with us."
Interactive Advertising Bureau Senior Vice President Scott Cunningham, who is also the general manager of the IAB Tech Lab, said that in its tests of ad blockers, most ads inside apps still appeared despite the installation of ad-blocking technology. While ad blockers could theoretically stop people from getting to websites accessed by clicking on in-app ads, the advertisers still were able to get the benefit of brand recall and awareness just from having their ads displayed.
On websites, though, the censoring is complete, said Cunningham. "Once you install the ad blocker [on the browser] it pretty much shuts everything off."
Part of the reason why apps are immune from ad blocking is because they don't work with third-party sources to display an ad, said Matt Adkisson, president of content compensation company Sourcepoint. Everything is handled in-house.
Public's love for ad blockers infuriating publishers
This big Apple move might strike fear into advertisers
Ben Williams, Adblock Plus communications and operations director, admitted its service didn't block in-app ads as well as those seen on browser windows. One reason: Blocking ads in apps would force its company to breach consumer privacy.
Perhaps more important is that consumers seem to not want to block ads in-app, Williams said. He believes because consumers use apps with a specific purpose in mind, and are willing to pay for that function whether it's accepting the ad model or paying to remove ads.
"The app function employs a single [action], whereas the browser is seen as a multitool device," he said.
Facebook also points out that it gives users more access to controlling their ad experience, including which information is used for ads.
"Ad blockers are generally not as effective because they attempt to block entire types of content and can interfere with functionality that people want to receive," the spokesperson said. "We believe that control and transparency are the best way to empower people to control their information and their experience."
However, Cunningham said having brands flock to apps for advertising may not be the solution to ad blocking.
"It's a little too soon to tell who wins," he said. "Apps offer the opportunity to continue to put out nice advertising and experiences, and so far our research tells us that can continue on. Will we move to an apps-only consumption? Only time can tell."
No one disputes that ad blockers threaten an independent Internet, and the economic opportunities that digital media can provide for publishers, Cunningham said. It hurts small publishers who can't afford not to sell ads and still create editorial content, he added.
And, apps may not be safe forever. Adkisson said some ad-blocking software companies are trying to work with mobile carriers to block all ads. Any function that relies on mobile data, including apps, won't be immune. As user demand for ad blockers increases, he thinks some carriers maybe tempted to offer these services.
"While you haven't seen those companies push back against ad blocking on the net yet, I think they are going to have to," Adkisson said.
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5d182b222e0010e787388c0fc895fba6 | https://www.cnbc.com/2015/09/29/how-to-find-a-financial-advisor.html | How to find a financial advisor | How to find a financial advisor
VIDEO1:3201:32Steps to find a financial advisorStraight Talk
Looking to avail yourself of a financial advisor's services but stumped as to how to pick one?
Who better to tell you what to look for than a financial advisor himself?
"I believe there are four minimum requirements for anyone you're considering working with," said Tim Maurer, certified financial planner and director of personal finance at Buckingham and The BAM Alliance.
First, your prospective advisor needs to be educated. "Financial planning is a very broad discipline," he said. "It's not just about investments, it's not just about insurance—it's about an array of topics that also includes taxes and estate planning."
Abel Mitja Varela | Getty Images
Second, check an advisor's credentials. A "certified financial planner," or CFP, designation is a good indication an advisor knows what he or she is doing. Next, advisors should have at least five years' experience, said Maurer, "but I like 10 or 15, especially because they will already have been through multiple serious financial crises."
Read MoreDon't get emotional with investments: Advisor
Lastly, make sure the advisor operates under a "fiduciary" standard. A fiduciary has a legal and regulatory obligation to act in a client's best interest at all times. "Would you believe ... that not all advisors have made that commitment?" asked Maurer.
"Do your homework," he adds. "Make sure that you find the right financial advisor for you."
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af4be4c46483fe170d29b3ad5eb70785 | https://www.cnbc.com/2015/09/29/how-to-play-the-slide-in-big-technology-stocks.html | VIDEO1:3001:306 ways to play the slide in big techFast Money
Some big-name technology stocks stumbled on Tuesday, but the pain for the sector may not end any time soon, CNBC "Fast Money" traders said.
Google, Amazon and Facebook have blown past the this year, while Apple is in the red for 2015 after losing momentum during the summer. All of those stocks, though, failed to make significant gains Tuesday, when major U.S. averages closed mixed in up-and-down trading.
For trader Dan Nathan, high-growth technology names could see another leg down, as many sit at "very speculative valuations."
"It's all in the stock price here," he said.
Adam Berry | Getty Images
He pointed specifically to weakness for Facebook, which he contended could fall to $80 per share. It closed Tuesday at $86.67 after falling nearly 3 percent.
Trader David Seaburg disagreed with Nathan's outlook, contending Facebook was a "gift" below $90 per share.
"I'm really surprised that it's been punished so much," he said.
Read MoreFacebook is going to $100: Trader
Seaburg also took a particularly bearish outlook on Apple, saying it does not have another new product to send its stock higher. Apple announced this week that it broke a first-weekend sales record with the launch of its iPhone 6s line, but its shares shed 3 percent Tuesday.
Still, trader Pete Najarian, an Apple shareholder, contended that the iPhone upgrade cycle could sustain Apple into next year, when it may get another catalyst to kickstart stock growth.
Seaburg also touted shares of Google and Amazon. Google, in particular, has a reasonable valuation despite a 13 percent gain this year, he said.
Google shares ended barely positive Tuesday after the company unveiled new phones and streaming devices.
Read MoreGoogle launches new phones, streaming devices
Disclosures:
Pete Najarian
Long AAPL, AMAT, BAC, BMY, BP, CSX, DIS, DISCA, DKS, FOXA, GE, KKR, KO, MRK, PEP, PFE, PHM he is long calls AA, ABX, BMY, DAL, EEM, FL, MPEL, PFE, SWFT, UAL, XLF, XOM, ZIOP, he is long puts DISH, FCX, X
Dan Nathan
Dan is long PYPL Oct call calendar, BA Oct put spread, INTC Oct put spread, QQQ Oct put spread, UAL Oct/Nov put spread, XLU call spread, TWTR, PG
David Seaburg
Opinions expressed by David Seaburg are solely his own and do not reflect the views and opinions of Cowen Group, Inc
Guy Adami
Guy Adami is long CELG, EXAS, INTC, Guy Adami's wife, Linda Snow, works at Merck.
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18eeeca2052eb4ef2b53ad2a2a1058d3 | https://www.cnbc.com/2015/09/29/india-rbi-cuts-key-rate-by-25bps-to-7.html | India's central bank cuts key rate by 50 BPs to 6.75% | India's central bank cuts key rate by 50 BPs to 6.75%
The Reserve Bank of India surprised markets Tuesday by slashing its key interest rate by 0.50 percentage points to 6.75%, taking advantage of easing inflation to boost growth in an economy that hasn't been able to escape global headwinds.
A Reuters poll last week showed only one out of 51 economists had expected a 50 basis points cut in the repo rate, while 45 had expected a 25 bps cut.
The RBI had previously cut interest rates three times this year, lowering it by 25 basis points each time.
Read MoreCommodities collapse a catch-22 for India
So what prompted the RBI to cut rates this aggressively?
Runaway inflation in the past has toppled governments in India, but lower prices of commodities such as crude oil, of which India is a large importer, have helped calm inflation.
"Headline consumer price index (CPI) inflation reached its lowest level in August since November 2014. The ebbing of inflation in the year so far is due to a combination of low month-on-month increases in prices and favorable base effects," the RBI said.
The knock-on effect of the recent depreciation of the rupee will have to be carefully monitored, although benign crude prices should have an offsetting effect, the RBI noted. Taking all this into consideration, inflation is expected to reach 5.8 per cent in January 2016, the central bank estimates.
Wholesale prices meanwhile have been falling more sharply, in line with the deflationary trend in other parts of the world including China.
India's one of the world's fastest-growing major economies although activity has slowed. The slowdown in China as well as market ructions are a clear risk.
"With global growth and trade slower than initial expectations, a continuing lack of appetite for new investment in the private sector, the constraint imposed by stressed assets on bank lending and waning business confidence, output growth projected for 2015-16 is marked down slightly to 7.4 per cent from 7.6 per cent earlier," the RBI said.
Growth in the manufacturing sector has been patchy in recent years, a departure from the years leading up to the debt crisis when factories making cars and household appliances were humming. While manufacturing surveys remain in expansion territory, there has been some easing given the uncertainty overseas.
"Since our last review, however, external demand conditions have turned weaker, suggesting a more persistent drag from lower exports and cheaper imports due to global overcapacity. This contributes to continuing domestic capacity under-utilisation, decelerating new orders and a rising ratio of finished goods inventories to sales," the RBI said.
VIDEO2:5202:52The 'not-so-exciting' part of India's growth storyStreet Signs Asia
India relies less on exports for driving its economy than many of its Asian peers, but stuttering growth in major markets has dented demand for goods and services produced by Indian firms. There have been some benefits from lower commodity prices but the gains in the price reduction have been offset by importers buying higher volumes.
"With services exports moderating, the widening of the merchandise trade deficit could lead to a modest increase in the current account deficit," the RBI said.
--Reuters contributed to this article
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8d3a6b91425ed69ff8c57177b5d720cb | https://www.cnbc.com/2015/09/29/jeremy-siegel-markets-to-yellen-you-made-a-mistake.html | Jeremy Siegel: Markets to Yellen, you made a mistake | Jeremy Siegel: Markets to Yellen, you made a mistake
Is Wall Street sending the Federal Reserve a message? Wharton School finance professor Jeremy Siegel strongly believes so.
In an interview on CNBC's "Halftime Report", Siegel said he views stocks re-testing August lows as a signal that Janet Yellen should have raised rates in September.
VIDEO3:4803:48Siegel: Fed should have raised in SeptemberHalftime Report
"The uncertainty of a hike is really what's bothering markets," he said. "Investors wanted the rate hike to be over with."
Barring any catastrophes, he now expects the Federal Reserve to raise rates in either October or December.
Siegel sees bright spots in the market once investors stop being scared of the Fed raising interest rates.
"Dividend paying and value stocks will be good performers in the next three to six months," Siegel noted.
Longtime market bull Siegel predicts the Dow Jones Industrial average will hit 20,000 next year.
"I definitely think we will see Dow 20,000 in 2016," he said.
—By CNBC Producer Bree Kelly. Follow her on Twitter @Bree_Kelly
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f89c419397acea97ff9674346a7fc19a | https://www.cnbc.com/2015/09/29/lightning-round-chinese-aggressively-dumping-this.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:
Enbridge Energy Partners: "Enbridge Energy, which yields 10 percent, is doing quite well. But you see it doesn't matter. It's part of this master limited partnership accommodation where there was $1 billion for sale at the end of the day, and that seller will be back. You have got to just wait. It's still going lower."
United States Steel: "I can't be positive about steel, because the Chinese are dumping steel so aggressively. As a matter of fact, only Nucore has been the only steel company that I will recommend. I'm very sorry, I don't have a reason."
Hewlett-Packard Co: "The company is splitting, and I think the parts are worth more than the whole. However it is in technology and technology is going lower right now. I think that you can own it for a while but you must understand there is going to be more pain ahead."
TruBlue Inc: "It does staffing and staffing has been really good. Just to be sure, I don't think that the stock is done going down. I think it's got some room to go. But I do like the broad enterprise software that it does."
Read more from Mad Money with Jim Cramer
Cramer Remix: Why Glencore is my biggest worry Cramer: Stocks stuck in a vortex of hate right now Cramer: 5 worries driving the market lower
Icahn Enterprises: "I would hold it. The man [Carl Icahn] just came on and did a very long video about the problems with high yield debt. I would like to think he is hedged against the worst parts of this market. However I don't currently know what is in it, and that is always worrisome to me. That is kind of a black box."
Rite Aid Corp: "Rite Aid is in a house of pain. Why? Because it missed the last quarter and it's got a lot of debt and the companies that are very indebted and miss quarters get punished. I do think that the company has fundamental value and I am sticking by it, particularly after that acquisition."
Avon Products Inc: "Sherilyn McCoy [CEO] is a very good executive, but the company is down at $3. Look, let's put it this way: it could go to $2 and that's a very big decline on a percentage basis though."
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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1a47acb4adc20043bf8014e8458975ce | https://www.cnbc.com/2015/09/29/london-tops-san-francisco-for-tech-talent-theres-a-catch.html | London tops San Fran for tech talent (there’s a catch) | London tops San Fran for tech talent (there’s a catch)
VIDEO0:3000:30London is the tech hub of EuropeBig Data
A new report is trying to pour cold water on the idea that Silicon Valley is the place to find the best and most technology talent. Step forward … London.
According to analysis from Stack Overflow, an online developers' forum, and the U.K. capital's promotional company, London & Partners, the city is home to more tech talent than New York, San Francisco and any European city.
London houses more than 71,000 professional developers with the nearest European competitor city being Paris with 40,538 IT programmers.
Amazon
"London is a hotbed for tech talent. With Europe's fastest-growing tech hub and some of the world's leading universities, London based businesses can benefit from access to an unparalleled talent pool," Mayor of London Boris Johnson, said in a press release accompanying the report.
But the report has a caveat: London may have more developers than the combined areas of San Francisco City and the Valley but if the area studied is expanded to include the wider San Francisco Bay Area, then the total number of developers rises to 83,262, over 11,000 more than London.
Also, London tech workers are paid less than their San Francisco counterparts. In Britain's capital, the average salary for an IT professional is $87,622 but in San Francisco, this rises to $123,054.
Still in Europe, London is leading the way in several of the most in-demand areas of development. London has more developers who can make apps for Google's Android mobile operating system than Berlin and Paris combined. And if somebody is looking for a Microsoft developer, London has 30,062 of those, versus 18,758 in San Francisco.
The sad fact about Europe’s $1B-tech companies
London has been an attractive city for venture capitalists to park their money, particularly in the financial technology, or fintech, sector, where the U.K. capital is seen as a leader. Britain's technology companies raised $1.5 billion during the first six months of the year with London-based companies securing 80 percent of that money, according to London & Partners. London also houses a number of unicorns – or businesses worth over $1 billion – such as TransferWise and Funding Circle.
At the same time, U.S. technology companies including Amazon, Facebook and Google have all established headquarters in the city.
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5b4be717404bc40dad18d19aa7745704 | https://www.cnbc.com/2015/09/29/making-coke-at-home-keurig-introduces-kold-machine.html | Making Coke at home? Keurig introduces 'Kold' machine | Making Coke at home? Keurig introduces 'Kold' machine
The Coca-Cola Company
Making a glass of Coke at home will soon be possible, if you don't mind paying more than $300 for a machine that sits on your kitchen countertop. Plus an extra dollar or so per drink.
Keurig says it will start selling a machine Tuesday that makes single servings of cold drinks including Coke, Sprite and flavored seltzer. The machine is similar to Keurig's brewers, which let people make cups of coffee and tea by inserting a pod into the machine and pressing a button.
Coca-Cola is betting big on Keurig Kold, too; the company owns a minority stake in Keurig Green Mountain.
Keurig CEO Brian Kelley says the machine is a way for people to have a variety of drinks at their disposal, without the cans and bottles.
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e7f9ae652aaaa3e3edc2cafa94d0171a | https://www.cnbc.com/2015/09/29/malaysia-can-ride-out-china-slowdown-low-oil-prices-em-outflows.html | Malaysia can ride out 'almost perfect storm', minister says | Malaysia can ride out 'almost perfect storm', minister says
Abdul Wahid Omar, a minister in the Malaysia Prime Minister's Department overseeing the economic planning unit, speaks during an interview in Kuala Lumpur, Malaysia.Getty Images
Malaysia's economy and currency are suffering from "an almost perfect storm" due to an outflow of funds from emerging markets, low oil prices and China's slowdown, the country's economic planning minister said on Tuesday.
But he said Malaysia was better placed than in the 1990s Asian financial crisis to ride out hard times.
"A lot of people ask us whether we are going to go back to 1997, 1998," Abdul Wahid Omar told Reuters in an interview on the sidelines of the U.N. General Assembly in New York. "Circumstances are very different between then and now. The circumstances are much better - our fundamentals are much stronger."
Omar said Malaysia was suffering particularly because it was an emerging market at a time of capital outflows, it was a net exporter of oil and gas at a time of a significant drop in prices, and it was perceived to be badly affected by the Chinese slowdown as China was its largest trading partner.
"It's almost like a perfect storm for Malaysia," he said.
VIDEO4:2604:26Tracking the outlook of Malaysia's economyCapital Connection
But he said a close look at the data allowed a more hopeful view.
"Based on fundamentals, our currency does not deserve to be this low ... over time we believe that the ringgit will come back to reflect its fundamental value."
The ringgit has lost a quarter of its value against the U.S. dollar this year and fallen to its lowest levels since the Asian financial crisis 17 years ago. Bonds have also fallen.
Read More Emerging markets rout stirs unease about capital curbs
Omar said that despite the ringgit's decline, Prime Minister Najib Razak had made it clear there would be no return to the capital controls of the 1990s, nor a return to a peg to the dollar.
He said the situation for Malaysian corporates was much better than in 1998.
"They are less leveraged and not many of them have foreign currency liabilities and those that do have U.S. dollar borrowings, for example, that's because they have U.S. dollar assets or revenue streams in U.S. dollars. So we have better matching of assets and liabilities."
"As far as the overall economic management, fiscal management, we are on the right track and obviously we are better prepared and more resilient to face the challenges that may come our way."
Read MoreMalaysia's 1MDB pushes for quick asset sales
Omar said he could not give a timeframe for recovery, but a special economics committee he chairs was recommending "proactive measures to be taken from time to time to deal with the current situation."
"It's our responsibility to make sure our businesses are prepared for more challenging times.
"We must make sure we provide the support and assistance to our people to ease their burden ... this will include making sure that their access to credit will not be impaired and they are able to sustain their business and for the people to be able to continue to remain employed."
Omar declined to address details of the case of troubled strategic investment fund 1MDB, which has helped shake confidence in Malaysia, saying investigations must be allowed to take their course.
Read More Timeline: The twists and turns in the tale of 1MDB
The power and property fund, whose advisory board is chaired by the prime minister, has amassed debt of more than $11 billion and a number of foreign jurisdictions have reportedly begun investigations concerning the fund or its staff.
"What has happened has happened and there is that parliamentary process with the public accounts committee and the various investigations by respective agencies. We must allow them to do their job," he said.
"What is actually more important is to make sure that management will be able to execute the rationalization plan so that they will be able to realize sufficient proceeds from the assets to pay off their debts."
He noted that the management had said it was "hopeful that the proceeds will be sufficient to cover the debts."
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2f8b6e2c2ab8906a137a30b68541a93e | https://www.cnbc.com/2015/09/29/medicare-drug-plan-prices-set-to-rise-in-2016-some-by-a-lot.html | Medicare drug plan prices set to rise in 2016, some by a lot | Medicare drug plan prices set to rise in 2016, some by a lot
VIDEO0:3500:35Medicare costs on the rise
Seniors, get ready to dig deeper into your wallets, or to start shopping more.
More than 15 million people enrolled in the top 10 Medicare "Part D" prescription drug plans will face average premium hikes of 8 percent next year, according to a new analysis. Those top 10 plans account for more than 80 percent of enrollment in such drug plans, the Avalere Health consultancy found.
Five of the top prescription drug plans will see double-digit premium hikes next year.
Avalere also found that the average prescription drug plan premium in 2016 will top $40 per month for the first time in the federally subsidized program's history. If all Part D enrollees stay in their current plan, the average premium for all prescription drug plan would rise from $38.83 per month this year to $41.34 per month in 2016.
Medicare beneficiaries should carefully review their prescription drug plan options in 2016. ... With many plans taking large premium increases in 2016, those beneficiaries that choose not to change plans will likely pay more in premiums than if they look for lower-cost options.Colin Shannonsenior manager, Avalere
The findings come as rising prescription drug costs have drawn renewed attention from Congress and Democratic presidential candidates, including Hillary Clinton and Sen. Bernie Sanders. Trustees in the Medicare program said that in 2014, there was a 14 percent overall increase in the cost of Part D benefits, and a per-capita increase of 11 percent. The trustees singled out the very high prices of new specialty medication, including for hepatitis C, as a driving factor in the cost increases to Medicare.
Avalere said there will be drop in the number of Medicare Advantage plans that offer enrollees a $0 deductible for their prescription drug benefits, meaning there were be fewer options for customers looking for limit their out-of-pocket health costs.
But Medicare Advantage premiums overall are set to drop slightly for 2016, by 1 percent on average, Avalare said. The average monthly premium for the increasingly popular Medicare Advantage plans, which are privately run but federally subsidized, will be $32.60 per month.
Controversial drug CEO was accused of serious 'harassment'
Avalere also found that 81 percent of the nearly 17 million Medicare Advantage beneficiaries will have an option of enrolling in a plan with a $0 monthly premium, compared with 78 percent of those beneficiaries in 2015.
Most Medicare Advantage plans include a prescription drug benefit. People in traditional Medicare must separately shop for and enroll in a Part D plan to cover their medications.
The overall trend of higher average prices for Part D plans, and the shrinking number of options for $0 deductibles within the Medicare Advantage market, are yet more evidence that Medicare beneficiaries should be actively looking around to see if they can find better deals, said Colin Shannon, senior manager at Avalere.
"You've got to shop," Shannon said.
"Medicare beneficiaries should carefully review their prescription drug plan options in 2016 to make sure they choose a plan that is right for them," said Shannon. "With many plans taking large premium increases in 2016, those beneficiaries that choose not to change plans will likely pay more in premiums than if they look for lower-cost options."
Clinton calls drug price hike 'outrageous,' vows plan
But if the past is any guide, most seniors will stay put in their current plans when open enrollment begins Oct. 15, despite the opportunity for a better deal, and despite that many Medicare beneficiaries are on fixed incomes.
Shannon noted that Kaiser Family Foundation research has found that only about 13 percent of Medicare beneficiaries change plans from year-to-year. He said that the difficulty of researching the plan options, and then balancing their respective costs and benefits before making a decision to switch, can be a challenge for seniors.
"It's hard, there's no question about it," Shannon said.
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cacdf85b631177dcd8378c55077cacc0 | https://www.cnbc.com/2015/09/29/mgm-ceo-macau-ugly-vegas-optimistic-northeast-lame.html | MGM CEO: Macau 'ugly,' Vegas 'better,' Northeast 'lame' | MGM CEO: Macau 'ugly,' Vegas 'better,' Northeast 'lame'
Chairman and CEO of MGM Resorts International Jim MurrenJim Watson | AFP | Getty Images
It has not been a good year to be a shareholder in a major casino company. Yet MGM Resorts Chairman and CEO Jim Murren is smiling at the Global Gaming Expo in Las Vegas this week: "We're doing better, thank God."
Murren sat down for a lengthy interview covering topics from Macau to Massachusetts, from REITs to Reid (as in Harry).
"We're really struggling in Macau," he said, stating the obvious about the Chinese gambling hub. Revenue is down as much as 40 percent. However, Murren said comparisons should start to get easier this month. He expects the Macau market to bottom by the end of the year. "I do think in 2016, revenues in the market will be up ... but it's been ugly this year."
Read MoreMacau casino shares fall as junket firm sounds alarm on VIP gamers
MGM Resorts and Wynn are both opening new properties in the next year, but Murren said MGM tweaked its Cotai casino resort layout to cater more to the mass market instead of the high-roller, junket business, which has all but disappeared in a mainland China corruption crackdown. Murren also said for the first time, the Macau government has brought together all six companies running gambling operations there in order to discuss what they plan to do beyond making money — small businesses, training locals to be management, health care, the environment. "It's kind of like a report card," he said. "This has been a great exercise. I know we've learned a lot. They've learned a ton."
Beyond Macau, MGM has an established relationship on the Chinese mainland with a hotel partnership, which Murren thinks gives his company a leg up on the competition. "MGM is well-known in China," he said, before joking, "They still think we make movies — I couldn't break it to them."
But it wasn't until last week in Washington that Murren met Chinese President Xi Jinping for the first time. "He's a scientist, he's thoughtful," Murren said, adding that he came away from the meeting feeling better about Beijing's commitment to American business. "Despite what you hear in the headlines, the big-picture, down-at-the-granular level, the 'let's get some work done' level, it's better than it's been in my 18 years."
Problems in China have bled over into Las Vegas, where revenue is down from a year ago on the Strip as a whole, due in large part to a decline in gamblers from Asia. Murren said at his properties, however, revenues are growing. "We've exceeded our forecasts," he said. "Next year looks better."
VIDEO1:0201:02MGM Resorts CEO expects NHL team for Vegas
One reason Murren likes the look of 2016 is that a $400 million arena with 20,000 seats the company is building with sports and entertainment firm AEG will be completed then.
"When you spend $400 million on an arena, you'd like to get some revenue from that," he said. "I would bet ... a lot ... that we will get a hockey team, a professional hockey team, and I bet we will know by the end of the year."
He said MGM has no interest in being part owner of a team, because it wants to keep the arena "neutral" so every company in town feels comfortable supporting a new team and buying suites. Murren is confident that any concerns that professional sports leagues have about a pro team playing in a town which makes a living from gambling have been allayed.
"I will make another bet," he said. "If we get an NHL hockey team, basketball's around the corner."
VIDEO2:1702:17MGM Resorts sues Connecticut over 'lame slot box'
Murren was born and raised in Connecticut, but now his company is suing the Nutmeg State for allowing two Native American tribes to compete to build a satellite gaming operation off tribal land near the Massachusetts border. MGM Resorts is building an $850 million casino resort in Springfield, Massachusetts, in part to draw from the Connecticut market, and Murren said the governor of Connecticut is breaking state law by allowing a satellite operation to proceed without a competitive bidding process.
"This is how ridiculous this is," he said, getting heated. "We've got two tribes that have made a gazillion dollars operating a duopoly in Connecticut, and at the whiff of competition ... their first reaction is, 'Let's just grant a concession to two Native American tribes to build some slot box on the border of Connecticut and Massachusetts without even a bid.'"
Murren mocked the proposed satellite operation — "It's a shopping center, that's sexy" — while still insisting it could threaten his company's massive investment. "If the tribes want to put $850 million into their own resorts to make them better, game on. But instead, no, they just want to spend a couple hundred million dollars building some lame kind of slot box with a few tables just to try to cut off some revenue, and the state thinks that's OK."
VIDEO2:4102:41Jim Murren: MGM Resorts will decide on a REIT by end of the year
Investors have been waiting to see what decision the company makes about its financial structure, and whether it will spin off part of MGM Resorts into a real estate investment trust. Murren said the company will decide on a REIT. "I've got advisors on advisors."
There's likely to be some form of a trust, which doesn't have to pay federal taxes but does have to give nearly all profits back to investors.
"There is no doubt in my mind that gaming real estate, and MGM real estate, is undervalued in the marketplace today," Murren said. "There's also no doubt that there are multiple ways to try to create visibility and value around that real estate."
Earlier plans this year to move quickly to break MGM Resorts into two companies right away — one a REIT, the other an operating company — were proposed, in Murren's words, "at the wrong time, and it was the wrong format."
His team is working to figure out the right time and the right format. "I believe that there will be more REITs in the gaming space."
Murren is a Republican, but he has been a supporter of outgoing Senate Majority Leader Harry Reid, a passionate Democrat.
"It hurts Nevada a lot," Murren said of Reid's upcoming retirement. Reid called bankers when they refused to return Murren's calls — MGM was perhaps minutes away from bankruptcy during the construction of CityCenter. The bankers took Reid's calls, and MGM survived.
"I don't think I have to be a Republican or a Democrat on this topic," Murren said about Reid leaving the Senate. "I think I can be a Nevadan on this topic, and it's gonna hurt."
Murren's blunt talk about competition from Connecticut — "lame" "slot box" — made this reporter suggest he sounded Trump-like. He laughed, "How's my hair?"
As for the Republican presidential race, the CEO said that while the debates have been "kinda fun to watch," he hopes they will become more substantive. He said he likes John Kasich and Jeb Bush, then added with a laugh: "I love Chris Christie, I love listening to that guy. I think he picked Abigail Adams (to be the first woman on the $10 bill)."
It was different, and he liked that. "I don't like the guys who said 'My mom.' How hokey is that?"
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4f7abe2823089c8b6de4700ce474cdca | https://www.cnbc.com/2015/09/29/microsoft-reorganizes-its-financial-results-reporting.html | Microsoft reorganizes its financial results reporting | Microsoft reorganizes its financial results reporting
Sam Yeh | AFP | Getty Images
Microsoft said it was changing the way it reported financial results to reflect its emphasis on cloud and mobile businesses.
Starting this quarter, the company will report revenue and operating income based on three businesses—Productivity and Business Processes, Intelligent Cloud and More Personal Computing.
The Productivity and Business Processes will include Office and Office 365 as well as its Dynamics and Dynamics CRM (customer relationship management) online software.
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The Intelligent Cloud segment will include server products and services such as Windows Server and Azure.
The More Personal Computing segment will include results from licensing of the Windows operating system, devices such as Surface and phones, Xbox gaming consoles, and search.
The company previously reported under six segments, which were lumped together under two broad categories - Devices & Consumer and Commercial.
Microsoft is scheduled to report first-quarter results on Oct. 22.
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171c4ba6dd1f51cce4c23d08dfa45faa | https://www.cnbc.com/2015/09/29/nasty-gals-amoruso-never-meant-to-make-an-empire.html | Nasty Gal's Amoruso: Never meant to make an empire | Nasty Gal's Amoruso: Never meant to make an empire
VIDEO1:5701:57Nasty Gal founder: Never intended to start an online empireClosing Bell
When Sophia Amoruso started selling clothes on eBay nearly a decade ago, she did not call herself a CEO. The effort she started has become Nasty Gal, a fashion retailer that has previously cracked $100 million in sales.
"It wasn't my intention to start an online retail empire," she said Tuesday on CNBC's "Closing Bell."
Read MoreAnalyst warns of retail gamechanger
Amoruso, now 31, tells the company's story in her book "#GIRLBOSS," which was released in paperback on Tuesday. Amoruso, who actress Anne Hathaway shadowed for the recently released film "The Intern," stepped down as Nasty Gal's CEO this year but remains active in the company.
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be6d263fb2408c9a187fa72a6f517a8c | https://www.cnbc.com/2015/09/29/national-coffee-day-where-to-get-free-coffee.html | National Coffee Day: Where To Get Free Coffee | National Coffee Day: Where To Get Free Coffee
Fire up the beans and get the water hot, it's National Coffee Day. To celebrate, chains across the country are offering free or steeply discounted java to customers. Here's a roundup of some of the more popular stores offering special deals:
A Dunkin' Donuts employee pours coffee in Cambridge, Mass.Lisa Poole | AP
Dunkin' Donuts: Free medium cup of hot or iced Dark Roast coffee. While the chain is also offering its rewards club members a free coupon through the Dunkin' mobile app, a spokesperson confirmed the coupon is not required to get the free coffee.
Krispy Kreme: Free 12 oz cup of joe and a free glazed doughnut.
Panera Bread: For the entire month of September, rewards members have been able to get a free hot or ice coffee.
Starbucks: Whomp whomp. The chain is not playing along and offering any free coffee. Sorry.
Wawa: The Northeast regional convenience store with a cult following is offering free self-serve hot coffee up to 24 oz.
Whole Foods: Through Wednesday, the grocery chain is selling 12-oz cups for just $.25.
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9d11425e78738c3ed69dbe0f267e8fa2 | https://www.cnbc.com/2015/09/29/nazi-gold-train-town-walbrzych-enjoys-tourism-gold-rush.html | Nazi 'Gold Train' Town Walbrzych Enjoys Tourism Gold Rush | Nazi 'Gold Train' Town Walbrzych Enjoys Tourism Gold Rush
Men walk in underground galleries, part of Nazi Germany 'Riese' construction project under the Ksiaz castle in the area where the 'Nazi gold train' is supposedly hidden underground, on August 28, 2015 in Walbrzych, Poland.Janek Skarzynski | AFP | Getty Images
WALBRZYCH, Poland - A former coal mining city is enjoying an unlikely tourism boom as authorities hunt a suspected buried Nazi-era train believed to be carrying guns and looted gold.
Restaurant owners and cab drivers have reported a surge in visitors to Walbrzych, Poland, since two amateur treasure-hunters said they had located the train. According to folklore, it was stored in a tunnel by retreating German forces in the final months of World War II.
Some believe it is loaded with gold, jewels and bank deposits stolen by Nazi commanders from nearby Wroclaw. Others believe it could contain weapons or a secret bomb.
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Even while firm evidence of the train's existence remains in short supply, the area's fortunes appear to have improved.
"Loch Ness is famous for a monster never found. This is like our Loch Ness monster," local historian Mateusz Mykytyszyn, 36, told NBC News. "We have been hoping to become a tourist town since the mines closed in the 1990s and it happened over one month because of the train story."
He added: "I've spoken with restaurant owners, taxi drivers, tour operators and they have l seen a huge rise in interest. Definitely it is a different town."
Soldiers and explosives experts began a six-day operation Monday to check for mines at the site where the treasure-hunters say the train is located.
They were searching up to three feet below the surface for booby traps or unexploded ordnance that could endanger municipal workers who are due to begin excavations in search of the train.
Souvenir sellers have already moved to cash in on the city's sudden fame, producing fake gold bars and T-shirts or mugs featuring a picture of a golden train.
Read More103-year-old WWII veteran works 5 days a week
Among the tourists drawn to the area Tuesday by the possible treasure were British visitor Paul Winslet, 50, and his Polish partner, Emilia. They came to see the city's Książ Castle, which has its own underground tunnels that were made during the Nazi occupation.
"I've seen images of the castle for years and then we saw all the news about the gold train in the British press," he said. "Emilia said it's not far from her home town so we decided to come have a look."
Emilia, 30, said of the train: "All legends eventually come to something. I believe everything will one day be found. The gold train, Atlantis, all things."
Henryk Chojnacki, a tour guide at the nearby Riese complex of Nazi-era tunnels, said the attraction was selling more tickets since news of the possible discovery was first reported in August.
VIDEO1:1901:19Nazi treasure said to be discovered on train
"Yes, there are more tourists here and it's difficult for the guides here because all the tourists keep asking about the gold train. It's tiring!"
Curious tourists are not the only ones excited by the Walbrzych mystery. The dark history of the area's Nazi occupation has inspired other treasure-hunters hoping to make similar discoveries of World War II artifacts.
Read More Who still owes what for the two World Wars?
Łukasz Kazek, a treasure-hunter from the nearby town of Walim, and Adam Hausman, that town's mayor, have used ground-penetrating radar to locate what they believe is a previously-undiscovered tunnel near an old rail station.
Even if investigators never find the gold train, Walbrzych may draw a long-lasting dividend from the search — a view held by the two original treasure-hunters, who hope to claim a 10 percent finders' reward in case their discovery is proven.
"We have already done a lot for Walbrzych," said Piotr Koper, from Poland. "It is a big advertisement for Walbrzych and the area."
His co-hunter Andres Richter, a German, said: "The train is still underground but city already has the gold!"
That view was echoed by the local historian, Mykytyszyn.
Read More WWII tunnel found in search for Nazi gold train
"Look at El Dorado. It is famous for gold never found, but has a lasting fame," he said. "Our beauty of mystery and history and or secrets of our past are now disclosed to the world and we are very happy. It's like a new era for Walbrzych and the area.
"Our town has 700 years of history and we were at a stop light until the train story. The interest in Walbrzych will stay now because there is so much to see here."
However, he added: "We must always remember the tunnels here were built on the blood and tears of the Holocaust victims and we should never forget that."
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acb1d7b9e60e88fc8c83649b1834e14d | https://www.cnbc.com/2015/09/29/nikkei-asx-poised-to-rebound-asia-markets-keep-an-eye-on-china.html | Asian stocks stabilize on final trading day of Q3 | Asian stocks stabilize on final trading day of Q3
A businessman uses his smartphone before a stock price board in Tokyo, Japan.Yoshikazu Tsuno | AFP | Getty Images
Asian stocks advanced on Wednesday, recovering from the carnage in the previous session following a modestly positive lead from Wall Street overnight.
The blue-chip and S&P 500 edged up 0.3 and 0.1 percent respectively overnight, while the Nasdaq Composite dropped 0.6 percent after a volatile session.
However, there are analysts who caution on the sustainability of the recovery.
"Some resemblance of calm has emerged, but experience says this may be no more than a dead cat bounce; woefully short-lived and lamentably hollow," Vishnu Varathan, a Singapore-based economist at Mizuho Bank, wrote in a note issued early Wednesday.
"Admittedly, some commodities are firmer but even with an almost 2 percent gain, Brent prices [remain] anemic while copper is only imperceptibly higher. Overnight gains in the U.S. equities are surely nothing to write home about... so any notion [of fading] 'risk-off' sentiment is deserving of a good dose of skepticism," he added.
Nikkei jumps 2.7%
The Nikkei index at the Tokyo Stock Exchange staged a comeback, a day after the benchmark index tumbled 4.1 percent to settle at an eight-month trough.
However on a quarterly basis, the benchmark Nikkei 225 index tumbled 14.1 percent, Reuters data showed. Wednesday marked the final trading day of the September quarter.
Below-view data released before the market open did little to dampen sentiment; industrial production fell 0.5 percent on-month in August, government data showed, missing expectations for a rise of 1.0 percent.
"The second consecutive drop in industrial production suggests that Japan's economy shrank yet again in the quarter that ends today. Additional easing by the Bank of Japan next month looks all but inevitable," Marcel Thieliant, Japan economist at Capital Economics, wrote in a note following the data release.
Meanwhile, retail sales rose 0.8 percent in August from a year earlier, also below market consensus for a 1.1 percent annual increase.
Exporters and financials were among counters that attracted the most buy orders. Toyota Motor, Nissan and Suzuki Motor elevated between 3.1 and 5.6 percent. Sony jumped 5.3 percent after Goldman Sachs initiated a 'buy' rating for the stock with a price target of 4,200 yen. Toshiba rallied 2.9 percent ahead of an extraordinary shareholders meeting scheduled for later in the day.
Bucking the uptrend, shares of Japan Tobacco slumped 6.7 percent after buying Reynolds American's Natural American Spirit Tobacco brand for $5 billion in cash.
VIDEO3:3103:31Are markets being short-sighted to focus on China?
Mainland markets up
China's Shanghai Composite index nudged up 0.5 percent in rangebound trade, as investors stayed put on the sidelines ahead of the week-long National Holiday which begins on Thursday.
Traders are also likely eyeing the release of China's purchasing managers' indexes (PMIs) on Thursday, that will shed light on the state of the country's all-important manufacturing sector.
For the quarter, the Shanghai bourse plummeted 34.1 percent while chalking up three straight months of losses.
Among gainers, Great Wall Motor powered up by the daily maximum allowable of 10 percent, while other carmakers such as SAIC Motor and Dongfeng Auto charged up 4 and 1.1 percent respectively, following news that Beijing has decided to halve sales tax on small cars from Thursday. Shenzhen-listed Changan Automobile Company jumped 10 percent.
In other news, China's State Council issued guidelines to encourage deeper links between online businesses and bricks-and-mortar stores on Wednesday, marking another sign that Beijing is shoring up its support for the economy.
Among the other indexes, the blue-chip CSI300 Index notched up 0.8 percent. By contrast, small-caps underperformed with the smaller Shenzhen Composite ticking up 0.3 percent amid choppy trade, while the start-up ChiNext board eased 0.5 percent.
In Hong Kong, the Hang Seng index recovered lost ground on Wednesday, up 1.6 percent.
Read MoreHK stocks: Between a rock and a hard place
ASX leaps 2.1%
Australia's index moved away from Tuesday's two-year closing low, thanks to advances among banking heavyweights and miners.
Commonwealth Bank of Australia led gains in the banking sector, surging 3.7 percent. Investment firm Macquarie Group climbed 2.2 percent and QBE Insurance gained 1.5 percent.
Market bellwether BHP Billiton rose 2.8 percent, clawing back some of Tuesday's steep slump. Rio Tinto and Fortescue Metals also advanced 4.5 and 9 percent respectively, as bargain hunting and short-covering bets helped to offset weaker iron ore prices overnight.
However, energy producers posted a mixed performance. Santos and Oil Search remained mired in the red, down 7 and 1.1 percent respectively, while Woodside Petroleum gained 2.7 percent.
Shares of Origin Energy halted trading on Wednesday after the power and gas retailer said on Tuesday that it would raise $2.5 billion Australian dollars ($1.8 billion) from a sale of new shares, sell assets and cut its dividend to shore up its balance sheet.
The Sydney bourse lost 12.4 percent during the July-September period.
Read MoreIs now the time to buy unloved Southeast Asian stocks?
Kospi gains 1%
South Korea's Kospi index reversed losses to finish in positive territory.
Earlier at the open, the Seoul bourse fell as much as 1.4 percent to a near three-week low, as it played catch-up to its regional peers after being shut for the previous sessions due to the Chuseok holiday.
For the quarter, the bourse slid 5.4 percent to chalk up its sharpest quarterly percentage fall since June 2013, Reuters data showed.
The bourse's top two weighted stocks Samsung Electronics and Hyundai Motor rebounded more than 1 percent each, but steelmaker Posco held on to a near 2 percent loss.
Indian markets up
The S&P BSE Sensex Index and the 50-share Nifty index gained nearly 1 percent in early trade, a day after the Reserve Bank of India (RBI) lowered its policy interest rate by a wider-than-expected move of 50 basis points.
Analysts at Morgan Stanley say another rate cut of 25 basis points is still on the cards amid cooling inflation in Asia's third-biggest economy.
"At the beginning of the year, we made a call that the RBI would be able to cut interest rates by a cumulative 150 basis points, based on our view that consumer price inflation would decelerate on a sustainable basis, therefore providing the room for the central bank to cut," Chetan Ahya and Upasana Chachra, economists at Morgan Stanley, wrote in a note.
"The decision by the RBI to cut rates by a larger than expected 50 basis points means that it has now cut interest rates by 125 basis points since January 2015," they added.
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966b56746bbeb64b1a5fa26f83a7eac5 | https://www.cnbc.com/2015/09/29/no-facebook-is-not-going-to-charge-users-a-privacy-fee.html | No, Facebook is not going to charge users a privacy fee | No, Facebook is not going to charge users a privacy fee
VIDEO0:3100:31FB warns about fee hoaxBusiness Practices
If you've visited Facebook this week you may have seen a post (or two) appear in your newsfeed warning that the social media site is going to institute a fee for users to keep their profiles private.
The message encourages users to copy and paste the text (not share) and post it if they want to be exempt from the fee.
It seems harmless enough, but it's actually a hoax and it could set you up for future scams.
Facebook identified the post as a fake on Monday.
This particular hoax has circulated the Internet in several variations since 2009 and continues to attract unsuspecting users.
While liking a post or photo will not spread a virus or steal a user's information, subscribing to a page or clicking on links could pose a threat. Scammers can use these pages to spread malware, trick users into sharing personal information and to collect published data from profiles.
The Facebook privacy hoax is one of many fake posts circulating social media. Earlier this year, bogus United Airlines and Disney pages posted giveaway scams and attracted thousands of users.
More than 25,000 people responded to the fake Disney post and more than 40,000 users interacted with the page pretending to be United Airlines, according to The Consumerist.
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Posts from companies advertising special giveaways are not uncommon, but could be fraudulent. Always look for the fine print or links to participation guidelines.
There are specific rules that businesses must follow when offering a contest. Whenever a company issues a promotion it is paired with a lengthy terms and conditions statement. The next time you see an advertisement for a sweepstakes pay close attention to the all of the supplementary material that they are require to provide.
In addition, major companies will likely be verified users, as indicated by a check mark in a blue circle on their page.
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44a007c6a01460b6c73a9fe9d4c6ff76 | https://www.cnbc.com/2015/09/29/obamacares-cadillac-tax-is-very-unpopular-except.html | Obamacare's Cadillac Tax is very unpopular, except... | Obamacare's Cadillac Tax is very unpopular, except...
Not many people actually like Obamacare's dreaded "Cadillac Tax," including, reportedly, Hillary Clinton. But that doesn't mean it will necessarily get repealed before it starts in 2018.
JGI | Getty Images
A new survey shows that while that tax, which targets high-cost, employer-based health plans, is at first glance broadly unpopular with the public, opinions change when people are told details about the tax's costs or savings.
Overall, 60 percent of respondents in this month's Kaiser Health Tracking poll said they oppose the tax when asked about it.
The tax will impose a 40 percent charge on the cost of employer-sponsored health plans that exceeds certain thresholds — $10,200 for individual coverage and $27,500 for family coverage, as of 2018. An insurer will have to pay the tax if it provides that coverage; otherwise, an employer will have to pay the tax if the plan is self-funded, as many job-based plans are.
The tax is expected to affect about one in four employers when it starts in 2018, and to rise thereafter to 30 percent of employers in 2023, and 42 percent of employers in 2028.
Obamacare 'paid' enrollment drops to 9.9M
In a report on the survey's findings, Kaiser noted that the unpopularity of the Cadillac Tax is "reflective of an overall anti-tax sentiment among Americans."
"However," the authors wrote, "when the public is presented with arguments about how the tax would affect health-care costs, opinion can be swayed."
On the one hand, when opponents of the Cadillac Tax were told that it could help lower overall health-care costs in the United States, 27 percent changed their minds about the levy, "pushing overall support [for the tax] ... to 55 percent," Kaiser said.
On the other hand, opposition to the tax grew much stronger — to 75 percent — when initial supporters of the tax were told that it would likely cause workers to pay more out of pocket for health-care services in the forms of deductibles and co-payments.
Kaiser's survey was based on a sample of 1,202 adults, and had a margin of error of 3 percentage points.
Obamacare's many double-digit price hikes for next year
Opponents of the tax, who include the U.S. Chamber of Commerce, have focused their arguments against it on the costs it will present to companies. They also claim it will lead to a reduction of benefits to employees.
However, the tax is considered an important part of the Affordable Care Act, both for its ability to generate revenue and its potential to slow the increase in health-care cost inflation.
It's estimated that the Cadillac Tax will raise $87 billion for the federal government over a decade, which will help fund subsidies that lower the cost of health coverage for people who buy Obamacare insurance plans on government-run exchanges, and to provide coverage to adults under expanded Medicaid benefits.
If Congress moved to eliminate the tax, it would face pressure to replace that revenue, or be left with the option of increasing the federal deficit.
VIDEO5:1305:13Falling health costs due to ACA an inflation factor: FurmanClosing Bell
By its steep levy on high-cost, job-based insurance plans, the Cadillac Tax is also designed to put a brake on overall health spending by discouraging overuse of medical services.
Kaiser Family Foundation Senior Vice President Larry Levitt recently called the Cadillac Tax "one of the strongest cost-containing measures in the ACA," Levitt said.
In addition to the economic and financial arguments for tossing out the levy, opponents of the Cadillac Tax also face the difficulty of overriding a likely veto by President Barack Obama if Congress moves to get rid of the tax while he remains in office.
However, on Tuesday, The New York Times reported that Hillary Clinton, who is seeking the Democratic nomination for president, plans to "speak out" against the Cadillac Tax in coming days. The Times said that Clinton's aides had told Randi Weingarten, the president of the Americans Federation of Teachers, that she intends to come out against the tax.
Unions have been among the critics of the tax, because many health benefit plans negotiated as part of collective bargaining agreements would be subject to it.
The Times also reported that "those briefed on (Clinton's) plans said she will have a method of replacing the lost revenue in the Cadillac tax through other means."
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9cb2cd0572d06901944e1a04ddb64369 | https://www.cnbc.com/2015/09/29/origin-to-raise-18b-in-share-sale-sell-assets-cut-dividend.html | Origin to raise $1.8B in share sale, sell assets | Origin to raise $1.8B in share sale, sell assets
Grant King, managing director of Origin Energy Ltd., speaks during an event hosted by the Committee for Economic Development of Australia (CEDA) in Brisbane, Australia, on Wednesday, Sept. 9, 2015. Origin Energy is Australia's largest electricity and gas retailer.Getty Images
Origin Energy, Australia's top power and gas retailer, said on Tuesday it wanted to raise A$2.5 billion ($1.8 billion) from a sale of new shares, sell assets and cut its dividend to shore up its balance sheet.
The company caved in to pressure to protect its investment grade rating as oil prices have collapsed, hurting it just as it is about to start producing from the A$25 billion Australia Pacific Liquefied Natural Gas project in Queensland.
VIDEO0:3700:37Australia delays Shell's takeover of BG Group
"We believe this package of initiatives is prudent in light of current market conditions and strikes a reasonable balance in the best interest of all shareholders," Origin Chairman Gordon Cairns said in a statement.
Origin plans to offer new stock to its shareholders at a massive 34 percent discount to its close on Tuesday, which was at a nine-year low.
Read MoreUS oil settles up 1.8 percent, at $45.23 a barrel
It aims to sell up to A$800 million of assets by June 2017. It raised more than $1 billion from the sale its stake in New Zealand's Contact Energy in August.
It flagged it would save A$420 million by cutting its dividend by a fifth, and would slash capital spending and working capital requirements by A$1 billion over the next two years.
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9d06075b04d1f2c17c2643e430e2d935 | https://www.cnbc.com/2015/09/29/paul-walkers-daughter-sues-porsche-over-fatal-crash.html | Daughter of late actor Paul Walker sues Porsche over fatal crash | Daughter of late actor Paul Walker sues Porsche over fatal crash
VIDEO0:3500:35Daughter of late actor Paul Walker is suing PorscheAutomobiles and Components
The daughter of late actor Paul Walker, who died in the fiery crash of a Porsche sports car in California two years ago, filed a wrongful death lawsuit against the car company in Los Angeles on Monday, court records show.
Meadow Walker claimed in the complaint that the automaker skimped on safety features for the vehicle, which could have either prevented the crash entirely or at least kept Walker alive.
Paul Walker was a passenger in the 2005 Porsche Carrera GT driven by Roger Rodas, who lost control of the vehicle before it careened into trees and a utility pole in Santa Clarita, northwest of Los Angeles, killing both men in November 2013.
VIDEO0:4500:45VW should have invested in batteries rather than diesel: BransonSquawk Box Next 20
The suit said Porsche knew the car model had a "history of instability and control issues" and added that the seat belts were designed such that in a crash, the shoulder belt anchor would be pulled along with the rear engine compartment while the seat anchor would remain in place.
"This snapped Walker's torso back with thousands of pounds of force, thereby breaking his ribs and pelvis, flattening his seat and trapping him in a supine position, where he remained alive until the vehicle erupted into flames one minute and twenty seconds later," the filing said.
"Absent these defects in the Porsche Carrera GT, Paul Walker would be alive today," the complaint added, citing the seat belt design and other issues.
Porsche could not be immediately reached for comment on Monday. But attorneys for the German car company said in April that Rodas was to blame for the crash following a lawsuit filed by his widow against the company's North American unit last year.
Read MoreAudi, Porsche R&D chiefs, VW US CEO to quit: Reuters
Attorneys for the company had then denied that the car had any defects.
Walker's death at the age of 40 led to a temporary halt in production of "Fast & Furious 7", the latest movie in the successful series about illegal street racing that helped popularize his career.
The Los Angeles Times has reported that the Los Angeles County Sheriff's Department and California Highway Patrol found that unsafe speeds were to blame for the crash, not mechanical problems. The newspaper said investigators made the determination after consulting with technicians from Porsche.
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87f69267d4f8c2830cb94d36eda810f3 | https://www.cnbc.com/2015/09/29/platinum-poised-for-worst-quarter-in-7-years-on-vw-scandal.html | Gold suffers biggest quarterly loss in a year on Fed outlook | Gold suffers biggest quarterly loss in a year on Fed outlook
Getty Images
Gold hit its lowest level in two weeks and recorded its biggest quarterly loss in a year on Wednesday as U.S. jobs data came in stronger than expected and the market awaited clarity on the timing of a hotly anticipated U.S. interest rate rise.
That capped off gold's worst quarter since the third quarter of 2014, having fallen nearly 5 percent since July. It was its fifth successive quarter of losses, the longest such streak since 1997.
Platinum remained on track for its biggest quarterly loss in seven years after plunging to its lowest level since December 2008 on Tuesday on fears of a drop in demand for diesel cars in the wake of the Volkswagen emissions scandal.
was down 1.1 percent at $1,114.46 an ounce, while U.S. gold futures for December delivery settled down $11.60 an ounce at $1,115.20.
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The metal has come under pressure from expectations that the U.S. Federal Reserve is set to hike interest rates this year, potentially lifting the opportunity cost of holding non-yielding bullion while boosting the dollar, in which it is priced.
Bullion fell as low as $1,111.60 on Wednesday, its lowest level since Sept. 16, after a report showed that U.S. private employers added 200,000 jobs in September, beating a forecast for 194,000 among economists polled by Reuters.
"The more positive the news is, the more bearish it is to gold from here on," said Eli Tesfaye, senior market strategist for brokerage RJO Futures in Chicago, noting that a report earlier this month showing record-high U.S. job openings was still contributing to negative sentiment on gold.
Spot platinum was down 1 percent at $904.75 an ounce, and has fallen nearly 16 percent this quarter.
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The metal was hit last week by news of Volkswagen's falsification of U.S. vehicle emission tests, which some investors believe could affect demand for diesel cars. Platinum is widely used in emissions-controlling automotive catalytic converters, particularly for diesel engines.
"In the short term at least, the condition of oversupply in platinum is likely to prevail," Mitsubishi analyst Jonathan Butler said.
Spot palladium was down 0.5 percent at $650.75, closing the quarter down nearly 3 percent for its third consecutive quarterly loss. Silver was down 0.6 percent at $14.52 an ounce and closed the quarter down nearly 8 percent.
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07fab1aaf515a8602156550b5d7ba162 | https://www.cnbc.com/2015/09/29/refugee-or-migrant-peter-capaldi-patrick-stewart-colin-firth-weigh-in-with-definition.html | Refugee or migrant? Dr Who, Captain Picard weigh in | Refugee or migrant? Dr Who, Captain Picard weigh in
The hundreds of thousands risking their lives in search of better ones in Europe in recent months, has thrown up a debate over whether to define those fleeing their homes as refugees or migrants.
Celebrities have now weighed in, calling upon the public to use the correct terminology when defining whether a person is a "migrant" or "refugee." When the terms are used interchangeably, this can lead to issues for both communities, according to United Nations High Commissioner for Refugees (UNHCR).
Patrick Stewart, Cate Blanchett, Peter CapaldiCBS/Jason Merritt/Matthew Horwood | Getty Images Entertainment | Getty Images
Patrick Stewart, well known for his role as Captain Jean-Luc Picard in "Star Trek: The Next Generation", and Peter Capaldi, who plays the character, Doctor Who, in the popular British show, have joined actors Cate Blanchett and Colin Firth in the UNHCR's "#WordsMatter" campaign.
The campaign is aimed at using words with greater care.
In an online video, UNHCR outlines that a "migrant" is someone who "chooses to move" country for reasons such as education or family reunions, while a "refugee" is someone "running for their life," due to conflict or persecution.
Overall, the key difference UNHCR outlines is that migrants are "free to return home," while refugees cannot.
"Words matter – and it matters how the words 'refugee' and 'migrant' are used, because they determine how governments will respond to this crisis," Laura Padoan, external relations associate at UNHCR UK, told CNBC via email.
"Refugees are defined and protected in international law and that means governments have a responsibility to meet those obligations to protect refugees. That is why words matter and why we have enlisted the support of celebrities to help us get across that message."
While European governments are accepting more refugees and have pledged at least a billion euros worth ($1.1 billion) of aid, the migrant crisis has also been controversial.
Four countries voted against the European Union's quota system to relocate refugees last week, however, they were overruled by other leaders.
Nigel Farage, leader of the U.K. Independence Party, told CNBC last week the crisis has the ability to have an even more "disruptive effect on the European Union" and while there's a big cultural and religious debate surrounding the crisis, EU leaders' decision to override those in opposition would lead to "resentment."
At the end of 2014, the UNHCR estimated 59.5 million people were displaced – against their will – due to dangers in their home countries; up from 37.5 million in 2005.
How Europeans have reacted to migrant crisis
In the video, high profile supporters and UNHCR Goodwill ambassadors, define each community and conclude that whether migrant or refugee, all people should be treated with dignity and respect.
"The bottom line is migrants, refugees, we are all human beings. We need to treat all human beings – whether refugee or migrant – with respect and dignity. But meanings matter. Words matter. Your words matter," celebrities say in the UNHCR video.
As the crisis gained momentum in August, Maya Mailer, Oxfam's head of humanitarian policy and campaigns in the U.K., told CNBC it was "primarily a refugee crisis" and countries should make these refugees feel welcome.
"Showing that these (people) are refugees, people like you and me, deserving of protection, and calling on our governments to resettle more refugees and welcome here," Mailer said when describing how to help resolve the crisis on a personal level, while knowing the difference between the two definitions.
VIDEO5:4205:42Worst European refugee crisis since WWII: ExpertInvesting Edge
What society is now facing is the "worst refugee displacement crisis" since the end of World War II, Mailer underlined, adding that what's happening in the Mediterranean is the "most visible manifestation" of the crisis' displacement.
In recent weeks, governments, charities and individuals have all ramped up efforts to help alleviate the migrant crisis.
Migrant Crisis: How ordinary people are helping out
In its reporting of the crisis, CNBC recognizes the situation as involving both "refugees" and "migrants" as it cannot independently verify the status of those seeking asylum.
—By CNBC's Alexandra Gibbs, follow her on Twitter @AlexGibbsy.
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5df39d047e0efc5634911b3f1fa7ba41 | https://www.cnbc.com/2015/09/29/retirement-savings.html | How to draw down your retirement savings | How to draw down your retirement savings
VIDEO1:1301:13Making your money last in retirementUltimate Retirement Guide
Saving for retirement is challenging, no doubt. But if you want to know what's really tricky, consider spending that money in retirement.
Retirees in the past often relied on a simple rule for retirement income: Draw down 4 percent of your savings every year and you will be all set. But the retirement landscape has changed.
For one thing, people are living longer, and their money has to last all that time. One in four people who are 65 years old today will live to age 90, and one in 10 will live to 95. (Tweet This)
Low interest rates also complicate the picture for savers. A one-year certificate of deposit came with a yield of just 0.28 percent, on average, through most of September, according to Bankrate. That's hardly enough to generate much retirement income.
Then there is the changing nature of retirement saving itself. Many people retiring now are able to count on pension and Social Security payments for the bulk of their retirement income, with investment income the icing on the cake. An AARP Public Policy Institute analysis of Census Bureau data found that in 2012, median income from Social Security for those receiving it was $13,972, and median income from pensions and retirement savings was $12,000. For these people, drawdown decisions matter, but represent just a portion of retirement income.
But as more and more people retire without defined benefit plans, their own savings, often in 401(k) accounts, will be increasingly important — and investors' choices about how to use them will be more complex.
"You need to have the safety in terms of predictable income, and you need to have part of your portfolio in risk assets. You could be looking at 30 years" of retirement, said Dan Keady, senior director of financial planning at TIAA-CREF.
How much do you really need for retirement?
Some investment pros say the 4 percent rule, first broadly proposed by William Bengen, a former financial advisor, in 1994, can still apply, but differently.
"We talk about the 4 percent guideline as a starting point," said Judith Ward, a senior financial planner with T. Rowe Price.
Take longevity, for example. At T. Rowe Price, financial planners recommend that people planning for retirement assume that their money will have to last for 30 years, said Ward. Clearly, if retirement assets remain flat, a 4 percent drawdown will not last that long.
That's why Ward and others recommend that retirees use a 4 percent withdrawal rate as a loose target, but then adjust their drawdowns depending on market conditions. When markets are in a downturn, "great, tighten the belt," Ward said. Conversely, a strong market can enable retirees to draw down a bit more, since they will still be leaving plenty of savings in the portfolio.
"People need to every year come back and look what's going on," Ward said.
Can a doctored photo save your retirement?
Another approach is to consider annuitizing some retirement savings. Annuities have gotten a bad rap at times for high fees and opaque terms, but as Americans live longer, more experts are pointing to them as tools to help your money last.
"An annuity is really like an additional pension for some people," said Keady, adding that it "adds some stability to where you are getting your income."
In addition to providing more stable income, annuities help offset the risk that investors will outlive their assets. And having an annuity that throws off income reduces the chance that retirees will have to draw on invested savings at a time when the market is weak.
"Most people don't want to be paying for basic, necessary expenses out of something that gyrates up and down," Keady said.
One annuity option to consider is longevity annuities, which start paying out at some date in the future, like when an investor turns 80. The investor spends less for the annuity because of the delay, but receives protection against outliving savings.
Last year, the Internal Revenue Service added an incentive to consider longevity annuities: Money that goes into those contracts is not counted when the government calculates the minimum required distribution of your retirement savings.
How much should you set aside for retirement?
Whatever you do, it's wise to start considering these questions sooner rather than later. Advice on saving for retirement is a lot more abundant than advice on how to draw down the money you salt away.
The good news, said Ward, is that that is starting to change. For financial experts, "I think its going to become much more the focus as the baby boomers start to retire in greater numbers," she said.
Even if you don't develop a full plan, thinking about the income you will have in retirement can encourage you to focus harder on saving.
"[People] begin not thinking about the nest egg, but they begin thinking about the income that can be produced from that nest egg," Keady said. "All of a sudden, people realize, 'Wait a second, I actually have to replace a paycheck.' "
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3603ee14de42ce18507cb39ef4befb8d | https://www.cnbc.com/2015/09/29/rocky-stock-market-faces-potential-pitfalls-into-year-end.html | Stocks rally into quarter end but pitfalls ahead | Stocks rally into quarter end but pitfalls ahead
VIDEO4:3004:30The Street gets bullish: MCD, JNJ & GPROFast Money
VIDEO2:2502:25Racing around volatility
VIDEO2:3102:31Trading Nation: Small-cap slapTrading Nation
Stocks face a make or break fourth quarter, and this year it's guaranteed to be a more volatile period with lots of potential pitfalls.
Wall Street is becoming more negative on stocks though many strategists still expect a seasonal rally that will take the S&P 500 to a gain for the year. But the index is currently down more than 8 percent year to date, and the track record for digging out of a third-quarter slide is not good.
Traders work on the floor of the New York Stock Exchange.Getty Images
"I'm less confident in this market than I've been in a long time. It doesn't mean I'm in the bear camp," said Randy Frederick, managing director, trading and derivatives at Charles Schwab. "We could be in for more of this yuck until December. I'm having a hard time imagining the catalyst that's going to bring us out of this. Q3 earnings are not going to be strong enough."
Stocks opened sharply higher Wednesday, with the up 1.4 percent at 2011. It closed 2 points higher Tuesday at 1,884, after rocking back forth in a wide range that took it between 1,899 and 1,871, just 4 points above its August low. The index entered the last day of the third quarter with a quarterly loss of 8.6 percent.
"I was thinking we could see high single-digit gains this year, but I'm now in the boat where we'll be fortunate if we get back to unchanged," Frederick said.
Read MoreIn the hedge fund world, here's what's working
The S&P 500 would have to climb 15 percent to meet the median forecast of 2,200 expected by the Wall Street strategists, surveyed by CNBC.
The last two times stocks surged that much in a quarter was back in the second quarter of 1997 and fourth quarter of 1998, the volatile years of the Asian financial crisis and the Long-Term Capital Management hedge fund collapse, respectively.
"Between the spring of 2009 and the end of the year, the S&P was up 40 percent. But we were starting way down in value and now we were just a few points from the all-time high," said Frederick. "I was hoping we'd get a Fed rate hike and that would give us a nice boost that would be a shot in the arm of confidence for the economy."
Some strategists have been paring back their expectations and now see smaller stock market gains, but Goldman Sachs strategists Tuesday said they see an actual decline. The last time stocks were negative for the year was 2011 when the S&P was less than one-tenth of a point lower than 2010's last close. The decline before that was the 38 percent drop in 2008.
The Goldman analysts ratcheted back their year-end forecast from 2,100 to 2,000 for the S&P 500. The index started the year at 2,058. The analysts also trimmed earnings estimates by 4 percent and their 2016 GDP forecast to 2.4 percent.
They cited a combination of slower economic activity in China and the U.S. and the drop in oil prices, which has slammed energy earnings.
The market faces a number of formidable challenges this quarter, including two Fed meetings. Central officials have re-emphasized that they hope to raise rates this year after passing on a hike in September. While the market puts higher odds of a first-quarter rate increase, analysts expect volatility around the Oct. 28 and Dec. 16 meetings.
Read MoreFed-in-a-box: Will there ever be a good time?
"I think the Fed has painted themselves into a box," said Jeffrey Saut, Raymond James chief investment strategist. "My model has always said the Fed raises in November even though there's not a meeting." Saut said the market would benefit from a rate hike.
The data the Fed watches will also remain key to markets, including Friday's jobs report. ADP's August payrolls Wednesday totaled 200,000 jobs, slightly better than expected, but ADP has not really been a good predictor of the government payrolls. September's nonfarm payrolls are expected to increase to 203,000 from 173,000, and unemployment is expected to remain at 5.1 percent.
There is also Chicago PMI data at 9:45 a.m. but the markets will be most focused on four Fed speakers. New York Fed President William Dudley spoke at 8:30 a.m. on liquidity. Fed Chair Janet Yellen makes opening remarks at 3 p.m. at a St. Louis Fed community banking conference, and she is followed by St. Louis Fed President James Bullard. Fed Gov. Lael Brainard also speaks on community banks in St. Louis at 8:15 p.m.
While analysts do not expect Yellen to say anything about policy Wednesday, she and the other speakers will be watched closely. Both Yellen and Dudley reinforced in the last several days that central bank officials would like to raise rates this year following the Fed meeting.
Markets have also been monitoring Washington where Congress was expected to pass a spending bill Wednesday to prevent the government from being shut down. But that vote would only cover an extension that would bring it up for another vote in December, around the time the U.S. will be getting close to its debt ceiling and will need a congressional extension.
Some analysts have said a battle around the debt ceiling could delay Fed rate hikes, but Saut does not expect the issue to be a problem for markets.
"I actually think that's not going to be a problem. The people I talk to in DC are so afraid the Republicans will get the bad rap for shutting down the government," he said.
Read MoreIf you owned these stocks, you'd still be in the black
When the Fed held off hiking rates in September, it pointed to international and financial developments that could impact U.S. growth. Since then, markets have been more nervous about a weaker China and falling commodities prices.
Saut said he's cautious on stocks. "The thing that worries me most is the Dow Theory sell signal on Aug. 25. That was when the Dow and the transports closed below the mid-October closing lows. Lots of big red warning flags for me," he said.
Saut said the sell signal could be forewarning a big selloff. "It's too soon to tell until we find if we're making a double bottom," he said. Saut said he's waiting out the current period of volatility. "I'm not doing anything. I'm exercising the rarest commodity on Wall Street — patience. There's this human need to be in it when sometimes the best strategy is to be inactive," he said.
Read MoreCarl Icahn's bold warning about… Carl Icahn?
If history is a guide, odds are against the market staging a major fourth-quarter rally. According to Bespoke, since 1930, in the years when the S&P 500 was lower on the year after three quarters, it has averaged a decline of 0.65 percent in the fourth quarter. It does gain 53.3 percent of the time.
But when the S&P is up year to date through the third quarter, it has almost always been higher in the fourth quarter. In years when the S&P is higher year to date through September, the average fourth quarter return has been 4.33 percent, and the index has been positive 82.5 percent of the time, or 47 of 57 occurrences.
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40a4dabff1d30b7a7cf56d6d2d800d24 | https://www.cnbc.com/2015/09/29/see-pictures-of-facebooks-new-singapore-office.html | Draft beer and scribble walls: Welcome to Facebook's new APAC HQ | Draft beer and scribble walls: Welcome to Facebook's new APAC HQ
Facebook
Prepare to be riddled with envy. Facebook just moved to a new office in Singapore, its Asia-Pacific headquarters, and it's the work-space of which dreams are made.
Located on the 22nd floor of Singapore's South Beach Tower, lofty corridors with unfinished ceilings, open working stations featuring flexible desks and intimate seating spaces make up the huge four-story office.
While Facebook doesn't disclose its employee numbers per country, the new Singapore digs have plenty of empty desks and the company is looking to fill over 40 positions, according to the website.
A quick tour of the office reveals just how seriously the company takes employees' work-life balance, with spaces designed to provide visual and physical stimulation. Work anniversaries, or Face-versaries, are celebrated with a giant balloon depicting the number of years worked attached to desks.
Click on for a peek into one of the world's most creative offices.
Facebook
Visitors entering the two-month-old office get a view of an airy pantry and kitchen stocked with juice, fruit, granola, sandwiches and nuts.
The company plans to install a full cafeteria next year that will be named Hawker Square, a reference to Singapore's local cuisine as well as the Hacker Square cultural center in the company's California headquarters.
Facebook
For those needing a stronger pick-me-up, the office has a vast wine collection and even beer on tap.
Facebook
There's an interactive map illustrating the scale of Facebook's global population across its platforms. The site itself boasts 1.5 billion users, alongside 400 million Instagram users and 900 million Whatsapp users.
Facebook
There's a massive wall for visitors to scribble on, a staple of Facebook offices around the world.
Facebook
It's common for newbies to put on weight in their first month at Facebook because of the array of free food, according to one employee. But there's a treadmill room with a view of Singapore's skyline for those keen to work it off.
Facebook
Inspiring slogans are pasted around the walls, such as "Kick the sh*t out of Option B," a line CFO Sheryl Sandberg penned following the death of her husband earlier this year. It refers to embracing your next best alternative when your desired option is no longer available.
Facebook
The office pays homage to its host country through interior design.
Chinese push-carts reminiscent of traditional dim-sum sellers offer sweet treats while walls feature the work of Singaporean artists, including one mural representing a blend of Eastern and Western cultures by Justin Lee. A separate wall features rotating Instagram prints by local artists.
Facebook
A winding staircase connecting all four floors is plastered with pink confetti stripes.
Facebook
The new location is designed to maximize efficiency and fun. There's a vending machine of office supplies such as keyboards and memory cards that employees can access anytime.
Facebook
One floor has a section with board games, including a Facebook-customized mahjong set.
Facebook
And then there's the anti-gravity playroom, where furniture is attached to the wall just to make for fun photos.
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fa948c6f276ce28767cb34e84d8e03be | https://www.cnbc.com/2015/09/29/skip-the-doctor-go-to-your-smartphone-dr-topol.html | VIDEO7:1807:18The personal health metrics movementMad Money with Jim Cramer
For most people, the way that they receive health care hasn't changed in ages: they make an appointment days, weeks or months in advance, spend what could be hours in the waiting room, and see a doctor for a few minutes, maybe get a few tests and then wait for the results.
It is an expensive, inefficient and a huge inconvenience for patients.
That is why Jim Cramer has recently turned his focus to the companies that are trying to change the paradigm, such as Teladoc. Now one of the most influential scientists in the U.S. has made the argument that technology will revolutionize the future of medicine, and make it more patient-centric and democratic.
Dr. Eric Topol is a cardiologist and director of the Scripps Translational Science Institute and editor-in-chief of Medscape.com. Earlier in the year he wrote a groundbreaking book entitled "The Patient Will See You Now," about how technologies such as the cloud, big data and smartphones, along with medical advances such as genome sequencing will give patients control over the health care system.
Cramer thinks the book is not only revelatory, but just plain smart. That is why he spoke with Dr. Topol, to discuss the future of what medicine could hold.
The theme here Jim, is about the patient generating their own data. It's a big thingDr. Topol
John Fedele | Getty Images
"Medicine today is one-off. You go to the doctor and get this one measurement, a lab test. But the medicine of the future, and it's starting right now, is real-time streaming in your real world," Dr. Topol said.
Dr. Topol could foresee a future where blood pressure and glucose monitoring in a watch that detects the patient's every heartbeat could be right around the corner.
For instance, patients spend thousands of dollars every year to go to expensive sleep labs to monitor sleeping patterns. Dr. Topol showed Cramer a ring from Finland that could capture brain waves for sleeping patterns. After all, who would still have a normal sleep pattern in an expensive sleep lab? Technology in a patient's own setting and home could change the game.
Dr. Topol is also an advocate for Theranos, the revolutionary technology that allows individuals to provide blood samples quickly and easily from over 50 Walgreens and standalone Theranos locations.
Read more from Mad Money with Jim Cramer
Cramer Remix: Why Glencore is my biggest worry Cramer: Stocks stuck in a vortex of hate right now Cramer: 5 worries driving the market lower
The common ingredient? Control of data.
"The theme here Jim, is about the patient generating their own data. It's a big thing," Dr. Topol said.
The doctor commented on the recent heat that the pharmaceutical community has been under, saying that the issue that the medical community is facing stems from a mismatch between pricing and effectiveness. There are a lot of drugs for rare diseases that are very effective, but at an extraordinary expense.
"That's the problem, is that the cost of these drugs are so high. But the ability to generate information from a gene mutation to a drug is going to be at all-time fastest velocity," he said.
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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0a96acda46dfa42e7c90a715a09d97d7 | https://www.cnbc.com/2015/09/29/soaking-rains-tropical-storm-heading-for-east-coast.html | Soaking rains, tropical storm heading for East Coast? | Soaking rains, tropical storm heading for East Coast?
Tropical Depression Eleven strengthened into Tropical Storm Joaquin late Monday after forming Sunday evening, according to a report by Weather.com.
The storm was located about 385 miles northeast of the central Bahamas early Tuesday morning.
Weather.com tweet
The official National Hurricane Center forecast track includes parts of the U.S. East Coast this weekend into early next week.
Weather.com cautioned, however, that uncertainty about the track of the storm is unusually high due to the presence of several other disturbances near the East Coast, noting that it's possible that Joaquin may never make landfall at all.
Wind shear is expected to lessen some over the next couple of days and combined with warm sea surface temperatures and plenty of moisture in the area some strengthening is likely, the site reported.
Meanwhile, heavy rains are setting up early this week in the East that will potentially last into the weekend ahead, Weather.com reported. Multiple rounds of rain are likely in some areas, raising the risk of flooding even with relatively dry soil conditions in place across the Northeast.
Weather.com tweet
Soon after that system moves through the area, Joaquin could move into the north Atlantic near the end of the week, NBC New York reported.
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60ea41f881e9df1ad9857709095fdc64 | https://www.cnbc.com/2015/09/29/strategist-markets-in-no-mans-land.html | Strategist: Markets in 'no man's land' | Strategist: Markets in 'no man's land'
VIDEO2:5902:59Markets in 'no man's land': Jeffrey SautSquawk Box
VIDEO0:4700:47Despite volatility, opportunity lives here
VIDEO3:2503:25Too early for Santa, watch the Halloween goblins: Cashin
Markets are currently in no man's land as investors try to get a better feel for the lay of the land, said Raymond James chief investment strategist, Jeffrey Saut, on Tuesday.
"I actually think we are in no man's land right here," he said in an interview on CNBC's "Squawk Box." He explained that traders are not inclined to make any big bets so late in the year, especially during an environment of uncertainty.
Saut is most concerned with the Dow theory sell signal that was created by the August stock market crash. The theory uses transportation and industrial indexes to gauge the strength and weaknesses of market moves. "There's only been one false Dow theory signal in the past 18 years and that was in the Flash Crash of May 2010," he said.
"From a fundamentals standpoint it's tough to make a huge downside case here, but anytime I get a Dow theory sell signal, it makes me nervous," he added.
Dan Greenhaus, BTIG chief global strategist, said on Tuesday that the will probably end higher this year although not extraordinarily so.
He said that volatility associated with a possible Fed rate hike could lead to some pain for financial markets.
"The only question is how much volatility beyond what we've already experienced is there going to be? But volatility is not ultimately synonymous with further downside. You can have volatility and still push higher."
— CNBC's Jeff Cox contributed to this report.
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0cc4e52981891029d0ed0dc1ab8aea31 | https://www.cnbc.com/2015/09/29/tinder-demands-removal-of-std-test-billboard-report.html | Tinder demands removal of STD test billboard: Report | Tinder demands removal of STD test billboard: Report
Graphic by the AIDS Healthcare Foundation which appears as a billboard in Los Angeles.Source: AIDS Healthcare Foundation
Mobile dating app Tinder sent a cease-and-desist letter to the AIDS Healthcare Foundation asking it to remove a billboard that links the mobile dating apps to higher STD contraction rates, the Los Angeles Times reported.
The billboard was put up in Los Angeles last week and contains silhouettes of people and the words "Tinder, Chlamydia, Grindr, Gonorrhea."
The organization defended the billboard, saying its purpose is to increase awareness about increasing rates of sexually transmitted diseases. It said it will not take down the sign.
Tinder attorney Jonathan Reichman said in a letter that "these unprovoked and wholly unsubstantiated accusations are made to irreparably damage Tinder's reputation in an attempt to encourage others to take an HIV test by your organization."
Grindr, an app for gay men, has dropped the foundation's paid ads for free STD testing.
"We were surprised at the approach [the foundation] took, and paused the campaign in order to speak with them and assess our relationship," Grindr said about cutting the ads, according to the Times.
Click here for the full report.
Tinder not just for singles: Report
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b84a9c99ac0a7d4f81eb74e269f00526 | https://www.cnbc.com/2015/09/29/top-analyst-buy-mcdonalds-on-all-day-breakfast.html | Top analyst: Buy McDonald's on all-day breakfast | Top analyst: Buy McDonald's on all-day breakfast
Getty Images
With McDonald's shares flat the past three years, the fast food operator is now a great buy, according to a top-ranked analyst of the restaurant sector.
Jason West of Credit Suisse upgraded McDonald's to "outperform" from "neutral" Tuesday morning in a note to clients.
West is one of the top analysts on Wall Street. His picks average a 16 percent one-year return with a 67 percent success rate and he is ranked in the top 5 percent of all Wall Street analysts, according to TipRanks.com.
Here's why he likes McDonald's now…
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bd34b9471e823522c500626dfeb0647f | https://www.cnbc.com/2015/09/29/trades-to-go-industrials-next-to-hit-bottom.html | VIDEO0:5800:58Top trades for the 2nd half: Energy & industrialsHalftime Report
As the second half of the trading day began, "Halftime Report" trader Stephanie Link said energy wasn't the only area topping her watch list.
She also had her eye on the struggling industrials sector.
"The last couple of days this sector has not done well," said Link. "If energy bottoms, I think this group will, too."
Trader disclosure: On September 20, 2015, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Halftime Report" were owned by the "Halftime Report" traders: Pete Najarian is long AAPL, AMAT, BAC, BMY, BP, CSX, DIS, DISCA, DKS, FOXA, GE, KKR, KO, MRK, PEP, PFE, PHM he is long calls AA, ABX, BMY, DAL, EEM, FL, MPEL, PFE, SWFT, UAL, XLF, XOM, ZIOP, he is long puts DISH, FCX, X. Stephanie Link is long AAPL, BAC, BRCM, CHKP, CRM, DAL, DG, DLPH, EL, EXP, GILD, GOOG, GOOGL, HPQ, INTC, JPM, LLY, LOW, LPX, LULU, MAT, MCD, MS, PRU, RHT, SBUX, SLB, SWK, UNH, V, VFC, WFC. Josh Brown is long AAPL, BABA, DE, DNKN, EBAY, FB, JMBA, NFLX, PYPL, SAM, SHAK, SPWR, TWTR, XLE, XON. Joe Terranova is long VRTS.
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0235f7dd4f30070eeed311dab3c4834e | https://www.cnbc.com/2015/09/29/tupperware-confident-on-consumers-despite-indonesias-weaker-rupiah.html | Is Indonesia’s consumer stronger than its currency? | Is Indonesia’s consumer stronger than its currency?
VIDEO4:1004:10How Tupperware copes with FX volatilityCapital Connection
Indonesia's currency has dropped sharply amid an emerging market sell-off, but there are signs it won't derail the country's strong consumer story, as companies come up with new ways to cope with a weaker rupiah.
"Conventional wisdom has it that consumer companies are likely to suffer margin compression as a result of rupiah depreciation, given that 70-80 percent of their costs are linked to the U.S. dollar and imported materials," noted Stevanus Juanda, an analyst at UOB KayHian, said in a note last week.
But historically, "currency depreciation has made little impact on yearly profit" in Indonesia, he said. "Consumer companies have strong pricing power and can pass on cost increases resulting from higher raw material costs or rupiah depreciation."
Read More Indonesian rupiah is at levels not seen since 1998
The rupiah has certainly seen substantial depreciation, falling around 18 percent since the beginning of this year, touching its lowest levels since the Asian Financial Crisis in 1997-1998. Market turmoil over expectations the U.S. Federal Reserve will soon raise its benchmark interest rates for the first time in nine years has spurred outflows from emerging markets.
But Stevanus has initiated coverage of Indonesia's consumer stocks at overweight, citing data from consultancy McKinsey that estimates the country's consumer class could grow to 85 million people by 2020 from 45 million in 2010, fuelled by an expanding working class and a demographic advantage from the fact the country's 15-64-year-old working age cohort is expected to make up around 70 percent of the population by 2020.
Dimas Ardian | Bloomberg | Getty Images
International brands selling in Indonesia are taking some steps to deal with the weaker currency. Tupperware, for example, counts Indonesia as its biggest market.
"What we technically do is grow the size of our sales force organization at times when we have economic imbalances," Asha Gupta, the company's group president for Asia Pacific, told CNBC on Tuesday. In emerging markets, the company still relies on its iconic Tupperware parties to sell its products.
Read More Rupiah plunge: It's not just commodities
"We also have to adopt much more aggressive pricing strategies," Gupta added. She noted that lower resin prices, due to a stronger dollar weighing on commodity prices, were providing some margin support for Tupperware.
Tupperware said in early September that it expected its local currency sales globally would rise 4-6 percent in the third quarter, but the period's foreign exchange moves would subtract around 26 cents a share from 2015 earnings; in 2014, Tupperware's diluted earnings per share (EPS) came in at $4.20. For this year, EPS is forecast at around $4.416, according to Reuters estimates.
But the company may continue to get a fillip from other consumer trends in Indonesia, such as the growing penetration of refrigerators, which can help drive demand for food-storage containers.
Sales of refrigeration appliances rose to around 35.73 trillion rupiah ($2.44 billion) in 2014, up from 9.66 trillion rupiah in 2009, according to data from Euromonitor International, which estimates there are around 83 refrigeration units for every 1,000 households.
To be sure, consumers themselves are feeling a lot less confident, with the ANZ-Roy Morgan Consumer Confidence Index declining sharply to 143.2 in September, down 18 points from its level a year ago during the "taper tantrums" as global markets convulsed under massive emerging-market fund outflows. About 64 percent of survey respondents this month expected their families to be better off financially this time next year, down 5 percentage-points from August to the lowest level since 2012. The percentage saying "now is a good time to buy" major household items fell 7 percentage points to 50 percent, a more-than-three-year low.
But with the immediate consumer outlook looking uncertain, companies are taking some unusual steps to maintain margins, such as like reducing products' size.
"Although some products have not seen price increases since July, such as shampoos and cheese, they now have lower content, suggesting that fast-moving-consumer-goods (FMCG) companies are reducing fillings to maintain margins amid weak purchasing power," analysts at PT Bahana Securities said in a note last week.
Bahana also noted retailers were bolstering margins via inventory management.
Pure electronics players raised average selling prices in September by 7.1 percent compared with July, although they remain below December 2014 levels, Bahana noted, attributing it to electronics dealers discounting older versions of products - which were likely purchased when the rupiah was stronger - during the July fasting month and keeping newer, more expensive products in inventory.
Some retailers are also cutting back on stocking new products that come at higher costs, as well as revamping their distribution systems, it noted.
Bahana doesn't expect these efforts to be entirely successful in countering the hit from the weaker rupiah, estimating that across the retail sector, every 1 percent fall in the local currency would reduce earnings per share by 2.1 percent.
But it sees one segment likely to get a boost as prices in rupiah begin to rise: "We expect the middle-end retailers to benefit from high-end consumers trading down market."
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89659f05179e33650fadf2d4611835fc | https://www.cnbc.com/2015/09/29/uk-europe-look-cheap-on-glencore-vw-news-trader.html | UK, Europe look cheap on Glencore, VW news: Trader | UK, Europe look cheap on Glencore, VW news: Trader
VIDEO4:2304:23Pro eyes Europe amid low-rate environmentSquawk Box
Highly leveraged mining giant Glencore and embattled automaker Volkswagen have weighed on European stocks recently, but ProShares Advisors' Simeon Hyman said Tuesday those market slides may be flashing buy signs across the pond.
The firm's head of investment strategy noted that European equities have already dropped substantially, and the continent—particularly the United Kingdom—may represent "a ray of hope."
"Maybe there's an overreaction both to commodities and the VW crisis," he told CNBC's "Squawk Box." "If you look at a market like the U.K., where you almost have a little bit potentially of a sweet spot, where you have valuations that look like Europe valuations, but a macro economy that looks a little bit more like the U.S.'s"
Read MoreEuropean stocks lower; Glencore up 8%
Investors who want to avoid risk should steer clear of emerging markets, which are still too dependent on commodities, Hyman said, but more diverse places like the Europe "are places where you might want to take a little bit of a bet that the Glencores and the VWs have taken an outsize bite out of those valuations."
The caveat with the U.K., he said, is that it has double the exposure to the ailing energy market than the U.S. market.
Hyman acknowledged that the Glencore and Volkswagen situations are unnerving. Shares of Glencore recovered slightly after falling 29 percent on Monday.
Hyman said for his hypothesis to bear fruit, investors must assume Glencore doesn't present systemic risk, as some market watchers have suggested it does. He said if Glencore were to fail, it would not be a Lehman moment.
Read More Should you fear a 'Glencore' moment?
"We don't know anything for certain, but what we do know from history is Enron didn't blow up the markets," he said. "Various large commodity players have had troubles in the past and it hasn't blown up all global risk assets."
Disclaimer
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026199b8fe1df9c7539604af1904cf7d | https://www.cnbc.com/2015/09/29/us-home-prices-rise-5-in-july-spcase-shiller.html | US home prices rise 5% in July: S&P/Case-Shiller | US home prices rise 5% in July: S&P/Case-Shiller
A sign advertising an open house in Corona Del Mar, California.Scott Mlyn | CNBC
U.S. home prices continued to rise in July, the latest S&P/Case-Shiller Home Price Index showed Tuesday.
S&P/Case-Shiller's 20-City Index rose 5 percent in July, roughly in line with analysts' estimates for a 5.1 percent increase.
The National Home Price Index, which measures all nine U.S. census divisions, ticked up at a faster annual pace in July than the previous month, rising by 4.7 percent. The index has increased by 4 percent or more since September 2012, David M. Blitzer, managing director and chairman of the Index Committee at S&P Dow Jones Indices, noted in a statement.
"Prices of existing homes and housing overall are seeing strong growth and contributing to recent solid growth for the economy," Blitzer said. "Most of the strength is focused on states west of the Mississippi."
Home prices appreciated the most on a year-over-year basis in San Francisco and Denver. Both cities saw greater than 10 percent increases.
As of July, Phoenix has registered the longest streak of year-over-year home price increases.
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e12d197c2bf21ba4409d695397c9a891 | https://www.cnbc.com/2015/09/29/va-execs-caught-in-pay-boosting-scheme.html | Exterior view of the Veterans Affairs Medical Center on May 8, 2014 in Phoenix, Arizona.Getty Images
The Veterans Administration is facing yet another embarrassment.
The VA's own Inspector General's report says two senior executives used a complicated loophole to significantly boost their pay. The report basically shows how former Under Secretary Diana Rubens created a new regional director job within the VA, volunteered to fill the position, and then took the $274,000 the government was offering in relocation expenses. The report says Kimberly Graves pulled a similar switcheroo, bagging $174,000 in relocation expenses when she created a similar director's position in another city. Both reassignments resulted in decreased responsibilities, but both executives retained their salaries, the report concluded.
The bigger issue, though, seems to be the system itself in which such executives are able to operate and take advantage of these loopholes without any prior oversight. And there may be more examples to come as the Inspector General determined that 21 out of 23 VA reassignments investigated included salary increases. In total, the VA spent over $1.8 million on the reassignments.
Read MorePutin's moves in Syria may be linked to sanction hopes
In response to the report, Chairman of the House Committee on Veterans Affairs, Rep. Jeff Miller (R-FL), said that the findings did not surprise him and they were further proof of the VA's corrosive culture.
"This report is simply the latest in a long line of investigations showing VA officials helping themselves instead of helping America's veterans," Miller said.
If you're expecting strong denials from the VA, don't. In a statement sent to CNBC today, the department says it, "has concurred with, (the Office of the Inspector General's), recommendations." The VA added that it will, "take appropriate accountability actions."
Read MoreVA grilled on budget shortfall, urged to sell boutique hotel
Also today, the VA moved to end a potentially embarrassing situation in its outpatient clinic in eastern Colorado. Fliers sent to many veterans setting up appointments at the clinic stated that bringing iPhones and backpacks into the clinic would result in their appointments being canceled. The flier put the phones and packs on a par with guns and knives. A VA spokesman tells CNBC that appointments will not be canceled and fliers were, "ill advised," and, "all program managers have been informed that the distribution of these, or similar, flyers should be immediately discontinued."
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19808d86380868ddab9e866b23afdbfb | https://www.cnbc.com/2015/09/29/volatile-stocks-lift-safe-haven-bonds.html | Safe-haven bonds higher amid volatile stocks | Safe-haven bonds higher amid volatile stocks
U.S. Treasury prices traded higher on Tuesday, against a backdrop of global stock market volatility fanned by concerns about China's economy and the timing of U.S. rate hikes.
Government bonds are often seen as a safe-haven at times of global risk aversion, pushing prices higher and yields lower.
Treasurys
The benchmark 10-year Treasury yield fell to its lowest in more than a moth at 2.05 percent, down about 4 basis points on the day. It tumbled about 7 basis points on Monday as U.S. stock markets fell.
The two-year yield was 2 basis points lower at 0.65 percent.
Coming up on the quarter's end, people are realizing that they are under exposed to Treasurys and fund managers are "chasing performance," said Dan Heckman, national investment consultant at U.S. Bank.
"People, in general, are concerned about an overall potential for slowdown and those odds have gone up internationally and perhaps domestically."
Asian stock markets fell sharply on Tuesday after data the previous day showing a sharp fall in Chinese industrial company profits renewed concerns about the outlook for the world's number two economy.
Read MoreGlobal stocks tumble: Commodities lead the slump
European markets were lower, while U.S. stocks were slightly higher.
While the timing of U.S. rate increases remained in focus for the bond market, analysts said the prospect of higher rates was so far having a limited impact.
On Monday, New York Federal Reserve President William Dudley said the central bank remains on track for a likely rate rise this year, while San Francisco Fed President John Williams also signalled support for monetary tightening.
Read More
"Despite a steady flow of Fed speak arguing for a rate rise ahead, bond yields are refusing to move higher," analysts at Rabobank said in a note.
"Two-year U.S. Treasury yields are now at 0.67 percent, which is where we started 2015; and 10-year yields are down 10 basis points since Friday's intra-day peak to 2.10 percent, the lowest since mid-August," they said.
U.S. home prices rose 5 percent in July, according to the latest S&P/Case-Shiller Home Price Index.
The September consumer confidence index came in at 103, well above the expected 96.1 estimate.
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ec17419e4a45678b096508d2ec01d885 | https://www.cnbc.com/2015/09/29/volkswagen-cut-from-dow-jones-sustainability-ranking.html | Volkswagen cut from top sustainability index | Volkswagen cut from top sustainability index
VIDEO0:3100:31Dow Jones sustainable index drops VolkswagenDow Jones Industrial Average
Volkswagen will be dropped from a leading sustainability index next month in the wake of an emissions scandal that has wiped billions off the automaker's value.
Once the darling of fuel efficient automakers, Volkswagen will be removed from the Dow Jones Sustainability Indices (DJSI) as of October 6, a press release from index organizers RobecoSAM and S&P Dow Jones Indices said Tuesday.
A review of Volkswagen's standing on the index was sparked by news that Volkswagen had manipulated emissions tests of its diesel-powered vehicles.
Used cars of German carmaker Volkswagen stand on display at a Volkswagen car dealership on September 22, 2015 in Berlin, Germany.Getty Images
Volkswagen is said to have installed sophisticated software known as "defeat devices" that only turned on full emissions controls when it sensed official testing taking place, but otherwise emitted 10 to 40 times the legal amount while on the road. The issue was first brought to light by the Environmental Protection Agency earlier this month, based on tests from West Virginia University.
It prompted an executive reshuffle that saw former CEO Martin Winterkorn resign, and Porsche boss Matthias Mueller step into his shoes late last week. In a company statement following his appointment, Mueller said his "most urgent" task would be to win back trust for VW, promising "maximum transparency."
Volkswagen was part of the DJSI's global listing for 13 years — between 1999 and 2004, and again from 2007 to 2015 — and earlier this month was named the most sustainable automaker amongst its indexed peers.
Volkswagen's press team had no comment on news of the exclusion.
Some critics say sustainability rankings risk losing credibility as a result of the Volkswagen debacle.
Linda Greer is a director at the U.S.-based environmental advocacy group Natural Resources Defense Council (NRDC). She says the Volkswagen scandal will severely tarnish the entire corporate social responsibility movement and "may take a few environmental certification and sustainability ranking systems down with it."
She told CNBC via email that rankings like the DJSI and Global Reporting Initiative rely too heavily on self-reporting and too little on independent environmental assessments.
"There has been relatively little critical assessment of these systems, though when incidents like the Volkswagen incident, and the BP oil spill, there is a brief period of arm-waving to draw attention to the limitations of these often poorly focused and biased assessments," Greer said.
What you need to know about the Volkswagen scandal
The DJSI itself weighs sustainability criteria partly through a Corporate Sustainability Assessment (CSA), comprised of an online questionnaire assessing economic, social and environmental issues, checked against supporting documents, RobecoSAM's told CNBC. Deloitte also conducts an external audit of the assessment process each year.
But Greer said some of the DJSI's questions were far too trivial.
"Much of the questioning in the scoring systems concerns itself with what sorts of management structures are in place, or what certifications have been received, rather than focusing on bottom-line environmental impact," Greer said.
"These questions crowd out the much smaller number of questions that focus on actual environmental performance … It should be a core component and one that should be prioritized," she added.
Matthias Mueller named as new Volkswagen CEO
The DJSI also measures its members through Media & Stakeholder Analysis (MSA), which takes stakeholder information and press coverage of the company into account to evaluate how companies have responded to critical sustainability issues.
Volkswagen was chucked out of the DJSI rankings for failing to meet this MSA criteria after the emissions scandal broke.
Brazilian oil firm Petrobras was also struck from the DJSI back in March following widespread corruption and fraud allegations for which the company is still under investigation. Toshiba, which was a component of the DJSI since 2000, lost its place in the midst of a widespread accounting scandal that saw its CEO resign back in July.
VIDEO1:4801:48Volkswagen’s corporate overhaul
Volkswagen could eventually re-apply to the DJSI, but would have to stay within the world's 2,500 largest companies in terms of free float market cap — which could be a problem if shares continue to tank. After that, VW would have to re-take the CSA questionnaire and face further scrutiny by the index committee.
A spokesperson for RobecoSAM, the sustainable investments firm which coordinates the DJSI with S&P Dow Jones Indices, said Volkswagen's peers will be closely scrutinized before any automakers are promoted within the index.
Five automakers remain on the list including Renault, Peugeot, Nissan, Fiat and BMW.
Clarification: This article has been changed to reflect that RobecoSAM is a sustainable investments firm.
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7c4e5427abd6597c6db6933bc8b608e3 | https://www.cnbc.com/2015/09/29/wal-mart-to-offer-free-grocery-pickup-in-some-us-cities.html | Wal-Mart to offer free grocery pickup in some US cities | Wal-Mart to offer free grocery pickup in some US cities
VIDEO0:3500:35Walmart offering grocery pick-upFood Retail
Wal-Mart Stores said it would offer customers who buy groceries online the option to pick up their orders from the parking lots of nearby stores.
The retailer will roll out the free service from this month in certain U.S. cities after trial runs proved popular, Michael Bender, chief operating officer of Wal-Mart's global ecommerce, wrote in a blog post on Tuesday.
Shoppers have to choose a pick up time and drive into a nearby store's parking lot, where associates would load the items into their cars, Wal-Mart said.
The service will be available in Atlanta, Georgia; Charlotte and Fayetteville, North Carolina; Salt Lake City and Ogden, Utah; Nashville, Tennessee; Tucson, Arizona and Colorado Springs, Colorado, the company said.
Wal-Mart said it will extend the service to more markets in the coming weeks.
The $10.9 billion U.S. online grocery shopping industry is expected to grow 9.6 percent annually through 2019, according to a December report by market research firm IbisWorld.
One of the largest players in the market is Amazon.com's Amazon Fresh, which delivers in Seattle, New York, Philadelphia, and northern and southern California.
Target said this month it will partner with Instacart to deliver groceries for as little as $3.99 per order.
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ab2845e3fd5405a204cc587ae5e21087 | https://www.cnbc.com/2015/09/29/wall-street-braced-for-turbulence.html | Wall Street set for higher open | Wall Street set for higher open
VIDEO3:3803:38What's behind the selloff on Wall Street
U.S. stock futures pointed to a positive start for Wall Street on Tuesday as commodities recovered slightly.
Oil traded more than 1.5 percent higher, with crude topping $45 a barrel and brent near $48 a barrel. Copper gained half a percent.
Glencore held more than 15 percent higher in London trade after extending recent losses with a nearly 30 percent plunge Monday amid concerns about debt levels for the commodities and trading giant. On Tuesday, a number of brokers said worries about the firm's debt pile were overdone.
Read MoreIs Glencore the mining sector's Lehman?
The bounce helped European stocks recover from a sharply lower open to trade mixed. Asian stock markets ended the day with major losses, with Chinese stocks off more than 2 percent and Japan's blue-chip Nikkei stock index closing down 4.05 percent.
Signs of weakness in China — the world's second biggest economy — has battered commodity prices such as copper and iron ore this year, and in turn companies in the metals and mining sectors.
Brendan McDermid | Reuters
Gains in commodity prices and Europe helped U.S. stock futures reverse early losses, with Dow Jones industrial average futures up about 40 points.
Tech stocks also held slightly higher in pre-market trade. The iShares Nasdaq Biotechnology ETF (IBB) was up about 1 percent in pre-market trade after plunging 6.3 percent Monday.
On Monday, the S&P 500 stock index fell to a one-month low, closing below 1900, as a plunge in biotechs weighed heavily on health care. A rise in consumer spending data for August added to an improving U.S. economic picture that could support a near-term rise in rates.
Goldman Sachs cut its year-end forecast for the S&P 500 by 5 percent to 2,000 on Tuesday, citing a combination of the slower pace of economic activity in China and the U.S. and the fall in oil prices.
Read MoreStocks head to lows, may set up for negative year
On Tuesday, S&P/Case-Shiller's 20-City Index reported a 5 percent rise in July, roughly in-line with analysts' estimates for a 5.1 percent increase.
The September consumer confidence index due out at 10:00 a.m. ET.
Marc Ostwald, a strategist at ADM Investor Services, said that while the day's U.S. economic data would get some attention, "the focus will primarily be on the fallen angels of the equity and credit markets, i.e. Glencore and Volkswagen and the fall-out for their respective sectors."
"In both cases, and in broader market terms, the facts of month and quarter end, Fed lift-off speculation, China economy concerns and underlying market liquidity problems are doubtless exacerbating, if not exaggerating the scale of the moves," he added.
German car maker Volkswagen has been firmly in the spotlight in the past week after it admitted to cheating in U.S. emissions tests. The scandal has rocked the auto sector as well as raised concerns about the outlook for Germany's economy, which is the biggest in Europe. The stock held mildly lower in European trade.
Read More Early movers: YHOO, MCD, AAPL, MSFT, PNRA, POM, LLY, JNJ & more
In monetary policy news, India's central bank unexpectedly cut rates by 50 basis points to support economic growth.
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3c20bd8cf0de20b04fde2600a6f3ac6c | https://www.cnbc.com/2015/09/29/wall-street-limping-to-the-finish-for-september.html | With two trading days left in September, stocks are testing this year's lows, and Goldman Sachs (GS) is cutting its year-end forecast for the S&P by 5 percent to 2,000, citing slower economic growth in the U.S. and China, and the fall in oil prices. (CNBC)
Billionaire investor Carl Icahn said, in a new self-produced video called "Danger Ahead," he thinks stocks could go down "a lot more" as the market comes to grips with bubbles exacerbated by the Fed's zero interest rate policy. (CNBC)
Cheniere Energy (LNG) saw in the natural gas producer to 11.43 percent from the prior 9.59 percent, according to an SEC filing. (Reuters)
Experts are beginning to warn of the dire financial impact if Glencore, one of the world's largest resource companies, is unable to control its skyrocketing debt load. Shares bounced today in London, after getting slammed Monday. (CNBC)
After nearly two years of delays, Tesla (TSLA) kicks off Model X deliveries today. The electric SUV tops out at $132,000. Tesla has booked roughly 30,000 reservations for the vehicle. (WSJ)
Ahead of Thursday's meeting with investors and analysts, General Motors (GM) CEO Mary Barra said the automaker plans new efforts to capitalize on the connectivity built into its cars. (Reuters)
Shares of Valeant (VRX) lost nearly 17 percent Monday, the GOP chairman of the House Oversight Committee to force the company to turn over documents tied to triple-digit percentage increases in two heart drugs. (Reuters)
In her first testimony to Congress since a series of sting videos, the president of Planned Parenthood is set to answer questions on Capitol Hill today, as conservatives try to find ways to defund the group. (Politico)
Lawmakers are looking to President Barack Obama to avoid a government shutdown over Planned Parenthood funding when the new fiscal year begins Thursday. (Reuters)
House Majority Leader Kevin McCarthy, who declared his candidacy to succeed House Speaker John Boehner, vowed to avoid another shutdown threat in December when the temporary funding ends and the debt ceiling needs to be raised. (CNBC)
President Barack Obama plans to hold talks at the UN today, with Cuban leader Raul Castro for the second time this year. Obama met Monday with Russian President Vladimir Putin to talk about differences over Syria. (AP & NBC News)
San Francisco Fed President John Williams is renewing his call for an interest rate hike "sometime later this year," citing near-full employment and rapidly rising house prices as possible signs of excessive economic optimism.
The July Case-Shiller read on home prices is out at 9 a.m. ET, with economists looking for a 5.1 percent increase compared to a year earlier, after a June rise of 5 percent.
The Conference Board's consumer confidence index, released at 10 a.m. ET, is expected to come in at 96.5 for September, down from the 101.5 reading for August.
There are no prominent earnings reports due out this morning, but investors get the latest results from Costco (COST) after the bell this afternoon.
Google (GOOGL) is expected to unveil two new Nexus smartphones, its new mobile operating system, and the next generation of its Chromecast streaming device at an event in San Francisco today.
Yahoo (YHOO) plans to move ahead with the spinoff of its Alibaba (BABA) stake, even though the IRS has declined to rule whether it would be tax free. Yahoo expects to complete the move during the fourth quarter.
Microsoft (MSFT) has announced a change in its financial reporting, breaking out results differently to reflect the increasing significance of its mobile and cloud businesses.
A new cold-drink machine by Keurig Green Mountain (GMCR), launching today, will drive long-term growth, following recent sales declines in its core business of single-serve coffee pods and brewers, the CEO said.
Reynolds American (RAI) announced a $5 billion deal to sell assets to Japan Tobacco. The assets include trademarks for the Natural American Spirit cigarette brand outside the U.S.
Southwest Airlines (LUV) is so intent on strengthening its grip over Dallas Love Field that it's paying United Airlines (UAL) $120 million to control two more gates at the airport.
Pepco Holdings (POM) and Exelon (EXC) have asked the District of Columbia to reconsider its prior rejection of their planned merger. The two sides are currently in discussions about a settlement of the disagreement.
A tap dancer, a writer, and a sociologist were among 24 winners of this year's "genius grants" of $625,000 over five years. They can spend to money any way they want, no strings attached. (AP)
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4e7ba9197561131ded952364283bbe72 | https://www.cnbc.com/2015/09/29/wall-street-presents-the-case-for-buying-glencore.html | Wall Street presents the case for buying Glencore | Wall Street presents the case for buying Glencore
Glencore has suffered a torrid few weeks of downgrades and all-time lows prompting some analysts to question whether the commodity and mining giant's debt mountain is sustainable.
But the downward spiral in the company's London-listed share price was halted Tuesday, as the company's stock rebounded, rallying as much as 20 percent to trade around 80p after a host of brokers came out in support of the group and the company released a statement reassuring investors of its creditworthiness.
Read MoreIs Glencore the mining sector's Lehman?
An employee walks past coal washing flotation cells, manufactured by Jameson Cells, a unit of Glencore XstrataBrent Lewin I Bloomberg via Getty Images
Analysts at Citigroup, Bernstein, UBS and Credit Suisse all issued notes on the Anglo-Swiss commodity and mining group, maintaining a "buy" rating with price targets ranging between 170p and 450p.
Senior Bernstein analyst Paul Gait was the most bullish on the stock as he noted that the firm's industrial assets still generate positive cash margins even at a time of severe commodity price weakness.
Citi and UBS both said the stock was heavily oversold and that the divestments the firm is planning over the next six months have more potential upside than the $2 billion outlined by Glencore.
Following the wave of support from Wall Street, shares picked up, extending gains after the group issued a statement saying it had taken "proactive steps to position our company to withstand current commodity market conditions."
"Our business remains operationally and financially robust – we have positive cash flow, good liquidity and absolutely no solvency issues. We are getting on and delivering a suite of measures to reduce our debt levels by up to $10.2 billion."
"Glencore has no debt covenants and continues to retain strong lines of credit and secure access to funding thanks to long term relationships we have with the banks," the group said in a statement.
Glencore's share price tumbled some 30 percent on Monday to an all-time low of 66p after an Investec note questioned whether there was any equity value left in mining companies like Glencore and Anglo American if major commodity prices remain at current price levels.
VIDEO1:5101:51Glencore to go private?Squawk Box Europe
Read More Glencore tanks another 29%: Who's next?
The group's share price is now down close to 75 percent so far this year, having lost about 50 percent in the last month alone, down from its stock market debut of 530p per share in 2011.
Concerns about China have hit the mining sector hard, with the price of raw materials including copper, coal and oil, some of Glencore's key mined commodities, close to levels not seen since their global financial crisis
"For us really, yesterday's pricing action has little to do with fundamentals," vice president of investment strategy and global research at Credit Suisse, Dan Scott, said, who also rates the stock a "buy" and is hesitant to offload the firm's bonds at current levels.
"Even the most bearish out there on the sell-side and I think its Nomura, has a sell target of about 120p share."
"What you saw going into yesterday's session, was very weak data out of China on industrial production and another re-pricing of macro risk and probably macro hedge funds were out there pushing down the Glencore share price," Scott added.
Analysts led by Heath Jansen at Citi said in the event that the equity market continues to express its unwillingness to value the business fairly, the company management should take the company private.
This would allow restructuring measures to be taken "easily and quickly, with a potential float of just the industrial business occurring further down the track," Jansen said in a note to clients published on Tuesday.
Read MoreCopper heads for bear market as confidence vanishes
Head Global Natural Resources at Investec Jeremy Wrathall, who runs the team that were responsible for the note that weighed so heavily on Glencore's shares on Monday said such a move was not a good idea.
"I think a lot of shareholders would have a significant issue with that, given it was floated at £5 per share. But I am sure there lots of options on the table for them," Wrathall told CNBC.
Speaking on the note that pushed shares down some 30 percent Monday, Wrathall said: "It hit a nerve, and we can't avoid that – the market is telling you something."
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dda1df73a013faa8d9ca37ae9443c87b | https://www.cnbc.com/2015/09/29/weaker-productivity-growth-hits-global-economy-wef.html | Weaker productivity growth hits global economy: WEF | Weaker productivity growth hits global economy: WEF
VIDEO2:2202:22WEF: Global economy is in a new normalSquawk Box Asia
Countries across the world are suffering from a shortfall in productivity growth that is weighing on economic expansion, according to the World Economic Forum (WEF)'s annual report on global competitiveness.
The forum said that world economic growth was not on track to recover to the heights seen before the global financial crisis of 2007/08. On top of this, WEF warned that uncertainty surrounding a slowdown in emerging markets, in particular China, could disrupt the world's growth trajectory.
Lucas Schifres | Getty Images News | Getty Images
"Rather than adjusting to this new normal, countries must step up their efforts to re-accelerate economic growth. There is evidence that, in addition to lower capital accumulation that results from reduced investments, productivity over the past decade has been stagnating and even declining," said authors led by WEF's executive chairman, Klaus Schwab, in the report.
"Increasing productivity therefore needs to be at the core of the policy agendas of governments and international organizations."
As it does every year, the report ranked countries by their relative competitiveness, factoring in governmental institutions and policies as well as the efficiency of the labor market and financial markets. It also considered other facets such as business sophistication and innovation.
Switzerland and Singapore held onto the two top places in the 2015-and 2016 rankings and the U.S. stayed in third place.
Major strengths that helped keep the U.S. competitive included its cutting-edge business sector, substantial market size and innovation, WEF said. However, it added that the country should be savvy of risks to competitiveness, in particular the appreciation of the U.S. dollar and the much-speculated about end to record-low interest rates.
VIDEO3:2403:24Should you be worried about the global economy?Capital Connection
Most countries in the top ten in 2014 maintained their ranking this year. Notable changes include Finland, which dropped four ranks to eighth place, and Netherlands, which rose three levels to fifth place, bolstered by its education and infrastructure sectors. However, the U.K. fell to tenth place from ninth.
WEF said the U.K. has helped develop London as the "epicenter of the European tech and start-up scene," with a talented workforce. However, WEF labeled the U.K. government's high deficit and the public debt as problem areas.
It added that a weaker euro – helped by the European Central Bank's decision to start quantitative easing this Spring – and a drop in energy prices has helped offset these concerns about sluggish growth in the euro zone.
China has been another hot topic in recent months, with financial markets reaching volatile extremes over concerns about the country's economic outlook. Despite this turbulence, the country managed to retain its WEF competiveness ranking of 28th place.
At the other end of the ranking, 15 of the 20 worst performing countries were from Sub-Saharan Africa, including Sierra Leone, Chad and Guinea at the bottom.
Switzerland Singapore United States Germany The Netherlands Japan Hong Kong Finland Sweden United Kingdom
—By CNBC's Alexandra Gibbs, follow her on Twitter @AlexGibbsy.
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8fcd854e2715a26764a5cda2ab6e804a | https://www.cnbc.com/2015/09/29/why-a-rate-hike-could-be-good-for-oil.html | VIDEO3:1203:12Wolfberg: Why a rate hike is good for oilFutures Now
The market can't seem to make up its mind on crude oil.
The battered commodity has recently traded in a wide range of sharp swings, and has plunged more than 52 percent over the course of one year.
But looking ahead, Darren Wolfberg, head of U.S. cash equity trading at BNP Paribas, said that there could be good news for oil on the horizon, specifically in a rate hike from the Federal Reserve.
Theoretically, a rate rise should be bad for oil, because increased interest rates would strengthen the U.S. dollar against other country's currencies.
Meanwhile, oil is inversely related to the dollar, because as the greenback rises, the value and price of oil, bought in U.S. dollars, tend to fall.
Read More
However, Wolfberg said expects the opposite to happen for two reasons.
"Historically when the Fed raises rates, that's actually the top in the dollar," Wolfberg said Tuesday on CNBC's "Futures Now." "Secondarily, the Fed's going to raise rates because the economy is good. And usually that means more demand of oil."
Crude oil has struggled to break above $47 a barrel in September, Wolfberg said Tuesday afternoon, but if it reaches above that level, he could see oil back up around $50 to $60.
Until oil recovers, "I think you really gotta buy the dips and sell the rips," he said Tuesday.
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cc7e3cd4258c6d8f617db2379d9b91da | https://www.cnbc.com/2015/09/29/why-last-man-standing-shell-axed-its-arctic-push.html | ‘Last man standing’: Why Shell axed its Arctic push | ‘Last man standing’: Why Shell axed its Arctic push
VIDEO0:3200:32Shell ditching off shore drilling in AlaskaOil
Royal Dutch Shell is the latest of the oil majors to either abandon or postpone its Arctic ambitions, as the dwindling price of oil puts more and more big exploration projects on ice.
The company announced its withdrawal on Monday, stating that it had found insufficient oil and gas at its Burger J well, approximately 150 miles from Barrow, Alaska, to warrant further exploration.
It could take a hit of up to $4.1 billion as a result, Shell said in a statement on Monday — but could shave around $1 billion off its annual exploration budget.
Shell Oil's drilling rig Polar Pioneer in Port Angeles, Wash., on May 12, 2015.Jason Redmond | Reuters
"Shell will now cease further exploration activity in offshore Alaska for the foreseeable future. This decision reflects both the Burger J well result, the high costs associated with the project and the challenging and unpredictable federal regulatory environment in offshore Alaska," the FTSE 100-listed company said.
The Arctic is likely the biggest untapped area for petroleum on Earth, holding an estimated 20 percent of the world's untapped resources. But Shell's decision to pull out follows similar scrapped or postponed projects from peers, at a time of record low oil prices, regulatory uncertainty and high-profile campaigns from environmental campaigning groups like Greenpeace.
"I think that in the Alaskan offshore Arctic, most that haven't pulled out already may do so. Shell was pretty much the last man standing in any size," Malcolm Graham-Wood of Hydrocarbon Capital told CNBC on Monday.
Several big oil players have pulled back from the Arctic following a slump in oil prices that has seen the cost of a barrel of crude tumble to below $50 by January 2015 from $110 in June 2014. This has placed huge pressure on companies and their highly expensive exploration projects — in May, Shell Oil President Marvin Odum told CNBC that drilling in the Arctic cost roughly $1 billion per year.
VIDEO1:0001:00Countries claiming Arctic oilOil
Earlier this year, Norwegian oil group Statoil delayed its Johan Castberg project in the Arctic Circle, citing falling oil prices and high expected operating costs. Russia's Rosneft also postponed exploration this year and France's Total pulled out of a natural gas project in the Russian Arctic. And in December 2014, Chevron suspended its Arctic drilling program in the Beaufort Sea due to low oil prices.
Then, on Tuesday, Russia's environmental ministry announced the postponement of all drilling operations on its Arctic Shelf for up to three years, according to media and other reports. As well as low oil prices and high costs, Russian energy companies like Rosneft and Gazprom with ties to President Vladimir Putin have also had to contend with international sanctions that have hit their ability to raise long-term funds and invest in expensive deep-water and shale oil projects.
Shell insisted on Monday that its reasons for pulling out of the Arctic were "purely technical" and did not reflect either pressure from weak prices or fears of repercussions from any oil spill in a fragile environment.
"We drilled a well and it was dry, so for the foreseeable future we are pulling out… the amount of oil found wasn't actually of commercial levels. This was why we pulled out, rather than oil prices," a Shell spokesperson told CNBC.
Getty Images
However, energy analysts said that oil prices would have played a role in the decision, with some also citing concerns about lawsuits from environmental groups and the burden of increasing federal regulations.
"I think the low prices combined with disappointing well results led to Shell's decision to halt their activity," Andy Lipow of Lipow Oil Associates told CNBC on Monday.
"Even if the drilling results had been modest, I think that the low oil prices would have resulted in a slowdown in Shell's Arctic investments. They simply need much higher oil prices to economically extract oil out of the very high cost Arctic region.
"It is possible that the potential for continued environmental lawsuits went into Shell's thinking as the lawsuits may have resulted in additional project delays and higher costs for Shell," he added.
A melting Arctic: The world is skating on thin ice
On Monday, Greenpeace's international executive director described Shell's announcement as a "defining day" for the Arctic.
"It's a huge victory for the millions of people who stood up against Shell and a disaster for other oil companies with interests in the region. Shell has gambled big and lost big, both in terms of financial cost and its public reputation," said Greenpeace's Kumi Naidoo in a statement on the group's website.
However, Chris Main, an energy strategist at Citi, noted that oil prices had put a number of expensive drilling projects on a backburner, not just those in the Arctic.
"The low oil price is putting under question a huge number of higher cost curve projects — oil sands, LNG (liquefied natural gas), deepwater, Arctic et cetera — and there has been a number of either a) project FID deferrals or b) project cancellations. And given the expected price path over the next few years, I would expect these to very well continue," he told CNBC via email.
—By CNBC's Katy Barnato. Follower her on Twitter @KatyBarnato.
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637de1f4f5dfc8b99b235e39b070de0d | https://www.cnbc.com/2015/09/29/will-bear-market-push-investors-to-active-management.html | Will bear market push investors to active management? | Will bear market push investors to active management?
If a bear market doesn't improve the outlook for active investment management, probably nothing will.
Over the last decade, assets have been flowing out of actively managed investment funds that try to beat a market benchmark and into low-cost passively managed ones that simply track the benchmark. But active fund managers are hopeful that they'll have a better shot at outperforming in a bad market than in a good one.
Jamie Grill | Getty Images
"There's a cyclicality to when active and passive strategies perform better," said Rob Almeida, an institutional portfolio manager with MFS Investment Management. "My hope is that we've hit an inflection point."
Since 2010, roughly 1 in 5 active large-cap equity and blended-fund managers have outperformed the , according to data from independent investment research firm Morningstar. That ratio may not be as bad in other asset categories using other benchmarks, but the numbers suggest that trying to beat the average return of an investment market is not worth the cost and effort.
The CNBC editorial team presents our inaugural list of the Top 50 Money Management Firms.
"About 25 percent or less of active managers beat their benchmarks in the long term and that's always been the case," said Tim Strauts, markets research manager at Morningstar. "They can't overcome the extra fees and trading costs they have, and there's a broader awareness of that."
Investors are following the performance.
The migration to low-cost passively managed funds has been massive in the last 10 years. The annual inflows into passive funds surpassed those into active for the first time in 2004, and the trend has accelerated since the financial crisis. There is currently $3.8 trillion of assets in actively managed funds and $2.5 trillion in passive.
If fund flows continue at the current pace, passive fund assets could exceed active in as little as five years, suggested Strauts. "There will always be active management, but it's pretty clear that active will be a smaller part of the market than passive at some point in the near future," he said.
Read MoreAre you overwhelmed by fund choices?
The biggest factor in the outperformance of passive indexing is not the failure of active strategies as much as the high costs that come with them.
"Cost may be the best predictor of long-term performance," said Jim Rowley, a senior investment analyst at Vanguard Group, a pioneer of low-cost indexing. "It's not that active strategies can't beat passive ones, but they can't overcome the cost advantage of indexing."
VIDEO3:5403:54Mutual funds fee fightClosing Bell
The cost of the Vanguard S&P 500 exchange-traded fund, for example, is 0.05 percent of assets compared to 0.8 percent for the average actively managed large-cap U.S. equity fund. That might not seem like a big difference, but compounded over the long term, it has proved to be an insurmountable hurdle for active managers.
A big part of the growth in passive assets is being driven by the popularity of target-date funds in 401(k) retirement plans. In the past, most companies provided a choice of actively managed funds for employees and used money market funds as the default option.
Read MoreMoney manager growth good for investors
An increasing number of plan sponsors are now automatically enrolling employees in the plan and using target-date funds as the default option. Those funds are actively managed to the extent that they rebalance a diversified portfolio of stocks and bonds based on the investor's age, but they typically invest in low-cost indexed funds rather than actively managed ones.
Beyond the cost advantage of index mutual funds and exchange-traded funds, the market has now evolved to the point where all investors can get exposure to a huge range of asset classes and markets at very low costs.
From emerging markets small-cap stocks to U.S. high-yield bonds and commodity funds, the investing spectrum has expanded exponentially and enabled what Rowley calls active indexing strategies.
"Investors can now find low-cost index funds in most investment spaces," he said. "It enables them to use passive products to build a broadly diversified portfolio and to overweight some exposures if they choose."
Registered investment advisors—the fastest-growing segment of the financial advisory industry—have become enthusiastic users of low-cost ETFs for exactly that purpose.
Don't count active fund management out, however. The desire to beat the market remains a powerful motive for many investors, and actively managed mutual funds still account for about 60 percent of total assets in the industry.
There will always be periods when active strategies outperform passive, but they tend to be short and unpredictable. There is no data that says active management does better in bear markets.Tim Strautsmarkets research manager at Morningstar
Firms that offer active management are hoping the more volatile markets this year will give their managers a better chance to beat their benchmarks and possibly reverse some of the asset flows into passive funds.
"Active managers need more dispersion of returns on companies and securities for them to outperform the market," said Almeida at MFS Investment Management. Since the spike in volatility at the end of last year, that opportunity appears to be improving.
The proportion of active managers who are beating their benchmarks so far this year has risen above 50 percent, according to Almeida's reading of Morningstar data.
The relatively short period of outperformance, however, has yet to impress investors. Virtually all the outflows from U.S. equity funds this year ($79 billion through July) have been from actively managed funds, said Strauts of Morningstar.
Read MoreShould you go active or passive when investing?
Even in smaller, less-efficient markets where investors might arguably want active managers to navigate the landscape, they are still choosing passive funds. More than 80 percent of the $217 billion in inflows to international equity funds over the last 12 months have been to passive funds.
An admitted enthusiast of passive investing, Strauts doesn't expect a bear market will drive investors back to active management.
"There will always be periods when active strategies outperform passive, but they tend to be short and unpredictable," he said. "There is no data that says active management does better in bear markets."
—By Andrew Osterland, special to CNBC.com
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0a0e1794d4cc461e6203369da5395b76 | https://www.cnbc.com/2015/09/29/yen-off-highs-as-some-calm-returns-to-global-markets.html | Dollar gets jobs-data lift as euro sags | Dollar gets jobs-data lift as euro sags
Frank van den Bergh | E+ | Getty Images
The dollar rose on Wednesday along with global stock markets, also getting lift from strong private-sector U.S. jobs data, while the euro fell back on a report euro zone inflation had turned negative.
The gains kept the dollar on track for a net rise for July, August and September of 0.75 percent, making 2015's third quarter the fourth out of the past five during which the rallying greenback has gone up against other major currencies.
U.S. private employers added 200,000 jobs in September, beating forecasts and hinting jobs growth may be sufficient for the Federal Reserve to raise interest rates later this year, according to the ADP National Employment Report.
The news lifted the , which measures the U.S. unit's strength against other major currencies. The index was last up 0.5 percent for the day and has been rising since mid 2014 on America's relatively strong economy and high interest rates.
VIDEO3:0503:05Weak yen impact will show up in Japan's CPI: ExpertSquawk Box Asia
As Wall Street posted gains of about 1 percent and U.S. Treasury yields rose, the dollar was up 0.10 percent against the yen to just under 120 yen, firmer against the Swiss franc , and down slightly against British sterling.
The euro fell against the dollar by 0.74 percent to $1.1169, and was down 0.51 percent against the British pound after a euro zone inflation report.
Euro zone prices fell by 0.1 percent on an annual basis in September after rising 0.1 percent last month. The decline missed expectations and remained well below the European Central Bank's target of just under 2 percent.
The report fed speculation the ECB will expand or extend its cheap-money asset purchases as America readies to raise interest rates.
Read MoreHow the yen dethroned the dollar in a single day
While the ECB is focused on inflation expectations and inclined to look through falls in the headline rate, traders say a sustained drop below zero could reinforce policymakers' fears about the firmer euro's impact on financial conditions.
"A weak number was expected and bolsters expectations that the ECB may have to expand its asset purchase program from the 60-billion-euros-a-month to something larger, perhaps by year-end," said Richard Falkenhall, currency strategist at SEB.
Traders said U.S. nonfarm payroll numbers due on Friday could strengthen or weaken the case for a 2015 lift-off in U.S. interest rates and set the tone for the dollar.
Federal Reserve Chair Janet Yellen did not comment on the U.S. economy or monetary policy in brief welcoming remarks to a community banking symposium on Wednesday.
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ca4e010cf4d28944f6a7de79fce7a02c | https://www.cnbc.com/2015/09/29/zte-targets-us-says-users-will-buy-chinese-devices-as-apple-iphones-made-in-china.html | Thanks to Apple, US will buy Chinese phones: ZTE | Thanks to Apple, US will buy Chinese phones: ZTE
VIDEO0:3200:32Mobile phone maker ZTE expands into global marketMobile
U.S. consumers are willing to buy phones from Chinese brands, an executive at Shenzhen-based telecommunications company ZTE told CNBC, claiming that Americans were content to do so because they knew parts of Apple's products were assembled in the world's second-largest economy.
ZTE, a Chinese network equipment and smartphone maker, is looking to expand rapidly in Western markets and is currently the fourth-largest player in the U.S. Still its 7.4 percent market share there is well behind the likes of Apple and Samsung, which dominate the market.
ZTE's head of EMEA and Latin America, told CNBC that consumers were opening up to the idea of buying Chinese brand names.
Brent Lewin | Bloomberg | Getty Images
"Now the consumers don't care about whether it's a Chinese brand, U.S. brand, Europe brand, because with iPhones, they know it's assembled in China," Kan Yulun told CNBC in an interview.
"They just care about what the vision of the company is, what the product is, whether you're an international company… People buy a phone at a high price, they will care about the service. This is important that we need to let the consumers know who ZTE are and what we are doing."
ZTE recently released a $449 smartphone called the Axon Pro, aimed specifically at the U.S. market. The company had previously dealt in mid-to-low-end devices, but is now attempting to tackle the high end.
"Before maybe our product was focused on entry levels, now from this year we launched a new high-end premium phone. Operators want to do more operations with ZTE because they know we are an international company… we invest every year in new technology," Yulun said.
In the U.S., the company has make big efforts to get its name out there. ZTE partnered with the New York Nicks and Golden State Warriors for the 2014/2015 season and sponsored the Houston Rockets NBA team in 2013/2014 season.
Its efforts seem to be paying off, with ZTE striking agreements with AT&T and T-Mobile to sell its phones.
But it has not struck partnerships in Western Europe where it currently has just a 1.8 percent market share. That's a 163 percent year-on-year rise though, albeit off a low base.
ZTE is hoping to sell 60 million handsets this year, having shifted 26 million in the first half of 2015, Yulun said.
Nonetheless, some doubts exist about whether Western consumers are ready to embrace a brand still seen as very much Chinese.
"There's no way a consumer will prefer a ZTE premium device compared to a well-known brand," Francisco Jeronimo, head of European mobile devices at IDC, told CNBC by email.
"They are still perceived as a Chinese cheap brand. They only got rid of the Chinese characters in the logo last year! If their strategy is to compete directly in the high end of the market, meaning the likes of Apple, Samsung, Sony, HTC, et cetera, then I'm afraid to say but that's a dead on arrival strategy," he later added.
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3955084b45a5cf9200682798228f12e2 | https://www.cnbc.com/2015/09/30/3-trades-on-carl-icahns-playbook.html | VIDEO2:0002:00Top trades for the 2nd halfHalftime Report
The "Halftime Report" traders tackle Carl Icahn's playbook.
Pete Najarian is most interested in Freeport-McMoRan. "Carl Icahn is talking 3-4 years out and I think that's something that everybody has to understand. It's a longer-term play. If it goes lower, I bet he goes in and buys more," he adds.
Jon Najarian says to look at eBay and some of the spin-off companies like PayPal. "That has me interested and I would look to get into Paypal.
Josh Brown is also concerned about the high yield bond market. "We haven't really had defaults spike in junk market bonds but we are now looking at four straight months of declines and that's definitely something that should be on everyone's radar," said Brown.
Trader disclosure: On September 30, 2015 the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Halftime Report" were owned by the "Halftime Report" traders:
Pete Najarian is long AAPL, AMAT, BAC, BMY, BP, CSX, DIS, DISCA, DKS,FOXA, GE, KKR, KO, MRK, PEP, PFE, PHM he is long calls AA, ABX, BMY, COP, DAL,EEM, FL, HLT, MPEL, PFE, SWFT, UAL, XLF, XOM, ZIOP. He is long puts DISH, FCX,X.
Jon Najarian is long AAPL, FTR, NBL, PFE, PG, PPG, RAI, TEVA, WBA, XOM,ZSPH, ZTS. He is long calls AAL, ABX, ADXS, BAX, BBY, BMY, F, FL, GE, HLT, HZNP,ISIL, QCOM, MAR, MCK, MDLZ, NBL, NKE, PBR, PMCS, RAI, PFE, PPG, SWFT, TAP, YHOO.
Josh Brown is long AAPL, BABA, DE, DNKN, EBAY, FB, JMBA, NFLX, PYPL,SAM, SHAK, SPWR, TWTR, XLE, XON.
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2af1ab652d16bba3a4da73acc943c166 | https://www.cnbc.com/2015/09/30/5-stocks-to-watch-in-the-4th-quarter.html | VIDEO2:4902:49Your 4th quarter playbook: 5 stocks to buyFast Money
After a brutal third quarter for stocks, "Fast Money" traders looked ahead to their best bets for the rest of the year.
Major U.S. averages closed down about 7 percent in the quarter, their worst since 2011. Still, traders see some upside picks after the rough stretch.
Trader Guy Adami projected blowout quarterly earnings for social media giant Facebook. He said the stock could climb over $100 per share after it reports near the end of October, up from its closing price of about $90 Wednesday.
Adam Jeffery | CNBC
He also contended that Goldman Sachs could get a big post-earnings pop this month. The stock has fallen more than 10 percent this year.
Read MoreThe sector with a silver lining for the fourth quarter?
Trader Pete Najarian also looked to the financial sector, predicting that a Federal Reserve move off of near-zero interest rates could nudge JPMorgan Chase higher.
"I think it's a huge catalyst going forward," he said.
Other traders, meanwhile, hoped to profit from cheap prices in struggling sectors. The iShares Nasdaq Biotechnology ETF has upside after plunging amid government calls for action on reining in drug prices, said trader David Seaburg.
"These names are going to continue to run," he said.
Read MoreJPMorgan: Buy into biotech bear market
Trader Brian Kelly believes Exxon Mobil could climb moving forward. It has fallen nearly 20 percent this year as it deals with the effect of lower oil prices.
Disclosures:
Pete Najarian
Long AAPL, AMAT, BAC, BMY, BP, CSX, DIS, DISCA, DKS, FOXA, GE, KKR, KO, MRK, PEP, PFE, PHM he is long calls AA, ABX, BMY, COP, DAL, EEM, FL, HLT, MPEL, PFE, SWFT, UAL, XLF, XOM, ZIOP, he is long puts DISH, FCX, X
David Seaburg
Opinions expressed by David Seaburg are solely his own and do not reflect the views and opinions of Cowen Group, Inc
Brian Kelly
Brian Kelly is long BBRY, GLD, Bitcoin, US Dollar, Crude Oil; he is short Yuan, British Pound, Euro, Yen, EEM, EWC, EWU, EWG, SPY, S&P 500 Futures.
Guy Adami
Guy Adami is long CELG, EXAS, INTC, Guy Adami's wife, Linda Snow, works at Merck.
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008902333002663133964dfef7be6997 | https://www.cnbc.com/2015/09/30/after-hours-buzz-pbf-energy-microsoft-google-more.html | After-hours buzz: PBF Energy, Microsoft, Google & more | After-hours buzz: PBF Energy, Microsoft, Google & more
Traders work on the floor of the New York Stock Exchange.Getty Images
Check out the companies making headlines after the bell Wednesday:
PBF Energy jumped about 5 percent after the petroleum refiner agreed to purchase Exxon Mobil's refinery in Torrance, California, for about $538 million. The facility processes about 155,000 barrels of crude oil a day. Exxon shares were slightly lower after the announcement.
Natural gas and oil company Concho Resources announced an offering of 7 million shares of common stock. The company intends to use part of the proceeds to pay off its debt. The stock fell about 4 percent after hours.
Microsoft and Google shares were down about half a percent in extended trading after the tech companies agreed to dismiss pending patent infringement suits, according to Dow Jones.
Mining equipment manufacturer Joy Global will replace Thoratec, a medical device maker that will soon be acquired by St. Jude Medical, in the S&P MidCap 400 after the closing bell on Oct. 7. Joy Global shares rose about 3 percent in extended-hours trading.
Verisk Analytics, an insurance service provider, will take Joy Global's spot in the S&P 500. Verisk rose nearly 5 percent on the news.
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42fbee1c2822e3f9beedf9353fd21283 | https://www.cnbc.com/2015/09/30/as-bull-fades-consumer-stocks-keep-marching-on.html | As bull fades, consumer stocks keep marching on | As bull fades, consumer stocks keep marching on
A Cincinnati Reds player wears Under Armour batting gloves during a game in July.G. Fiume | Getty Images
It was an awful third quarter for the market. The S&P 500 was down 7 percent, posting its first two-quarter losing streak since 2011.
However, there was a powerful theme across many of the best-performing stocks in the September quarter: the U.S. consumer looks all right.
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d4b4da544eb52b0fcab8ce5ca02fc087 | https://www.cnbc.com/2015/09/30/as-surfing-spurs-attacks-australia-eyes-new-technology-to-combat-sharks.html | Australia to trial shark deterrent technologies | Australia to trial shark deterrent technologies
Ralph A. Clevenger | Fuse | Getty Images
Australia is to begin trialling some of the world's most advanced shark deterrent technologies in the next few months in an effort to curb a rise in attacks that threaten its beach tourism industry.
After nine deaths in two years, authorities in New South Wales on Tuesday outlined plans to test electronic repellents, plastic shields, sonar and other technologies to detect or repel sharks.
Business is also tapping into global interest in shark deterrents, which has been heightened by a spate of recent attacks in the US and elsewhere.
Scientists say the rise in attacks may be linked to the growing popularity of surfing and other watersports, bait fish moving closer to shore or a recovery in large species such as Great White sharks following conservation efforts.
"We are seeing a lot of interest in our products from divers and spear fishermen due to these attacks," said Lindsay Lyon, managing director of Shark Shield, a company based in Perth, Western Australia.
VIDEO0:4500:45Kayaker fends off aggressive hammerhead shark
Shark Shield has developed a device that emits an electrical field that disturbs the gel-filled sacs in sharks' snouts, causing them to spasm. Divers, swimmers or surfers attach the 1.8m long antenna-like device to their ankle to create a field measuring several feet.
Tests by researchers at the University of Western Australia found the shield had a "significant effect" in deterring sharks, including Tiger and Great White sharks. But they said further testing is needed to be confident about species-specific effects of the device.
Uptake of Shark Shield has been limited so far due to the bulky nature of the product. But the company has signed a deal with surfing equipment company Oceans & Earth to embed the device within boards, which may increase its popularity.
More from the Financial Times:
Australia seeks to end mining 'sabotage' Politics clouds Australia's green en Great Barrier Reef battle
Shark Shield's technology is based on research originating in South Africa, a country also trialling deterrent technologies. Last year the KwaZulu-Natal Sharks Board installed a 100m long cable at a beach in Cape Town. It emits a similar low frequency pulsed electronic signal to repel Great White sharks.
Advocates of electronic barriers say that if it can be proved they work, the systems would be preferable to deploying shark nets, which kill marine life that become entangled.
"Shark nets are another way of culling sharks and marine life," said Daniel Bucher, marine ecologist at Southern Cross University. "It is similar to setting drum lines and baited hooks."
Last year the Western Australia state government ditched a shark cull policy using baited hooks and drum lines after community protests. Local councils have sought alternatives with the City of Cockburn trialling an Eco Shark Barrier at Coogee beach.
"The beauty of the product is it doesn't kill marine life, it's cost effective and has a 10-year lifespan," said Craig Moss, inventor of the Eco Shark Barrier.
Read More
The barrier is made from flexible nylon that stretches from seabed to surface, from shoreline to shoreline. But it is probably best suited to protecting swimmers on enclosed beaches rather than surfers, divers or spear fishermen further from shore, who tend to be most at risk from shark attacks.
New South Wales is at the forefront of the search for solutions following 13 shark attacks this year. On Tuesday at a summit in Sydney, 70 shark experts discussed detection and deterrent technologies, including real-time tracking of tagged sharks using satellite technologies.
Shark Attack Mitigation Systems (SAMS), a Western Australian company, has developed a shark detection system that does not rely on tagging sharks. Its Clever Buoy system deploys sonar technology around beaches and uses software to analyse readings to determine if a shark-sized object has entered the vicinity.
"It is a type of facial recognition software for marine life," said Craig Anderson, SAMS co-founder. "We use multi-dimensional sonar and the software to send a warning message to local lifeguards."
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cc155e77c3bc9623d86531fe38687bc0 | https://www.cnbc.com/2015/09/30/average-apple-watch-sells-for-529-at-top-end-of-estimates-report.html | Average Apple Watch sells for $529, at top end of estimates: Report | Average Apple Watch sells for $529, at top end of estimates: Report
VIDEO0:3000:30Consumers spending big on Apple WatchComputer and Electronics Retail
Apple's new Watch sells for an average of $529, including accessories, at the high end of Wall Street estimates, according to findings by research firm Wristly.
Investors are keenly monitoring the performance of Apple's latest invention to see whether it can open up a new source of growth for a company heavily dependent on sales of its iPhone.
But the watch's profitability has been hard to gauge because prices range from $350 for sport models to $17,000 for solid gold designs.
The Apple WatchGetty Images
The figures provided to Reuters by Wristly, which surveyed more than 2,200 Apple Watch owners, sit at the high end of estimates from analysts, many of whom have pegged the gadget's average selling price between $425 and $550.
Apple has not broken out sales figures, fueling concerns among some on Wall Street. The Wristly survey suggests some investors may have underestimated the timepiece's profitability, founder Bernard Desarnauts said.
"There is quite a positive uplift," he said.
A spokesman for Apple declined to comment on the survey.
Since launching in March, shortly before the Apple Watch hit stores, Wristly has invited people who buy the gadget to participate in a regular survey about their experiences.
Apple Music faces tough audience in China
The average selling price was calculated by combining survey results on the model, size and number of bands respondents purchased.
Extra weight was given to the responses of women, who are underrepresented in Wristly's panel, and the firm excluded responses from buyers of the watch in its first eight weeks on the market, finding they spent more than later shoppers.
The survey revealed men spend $30 more on the watch than women, who opt for the less expensive smaller size. Accessories can add considerably to the bill, with 40 percent of customers springing for a spare band as of August.
Wristly's research comes with a few caveats: The results only reflect buyers in North America, Europe and Oceania, and the panel skews to the wealthy.
But the company's findings track closely with figures Apple has disclosed about how much owners wear the watch. And Apple Chief Executive Officer Tim Cook has publicly cited the firm's findings about the Apple Watch's high rates of customer satisfaction.
Investors have grappled with a lack of information about the Apple Watch since its debut. Apple lumped sales of the watch in with figures for products such as the iPod and Beats headphones.
Google takes aim at Apple with new devices, OS
While most analysts initially expected the watch to reach an average selling price of more than $500, many lowered their figures to about $450 after Apple's opaque reporting in July.
Analyst Daniel Ives of FBR Capital Markets said Wristly's findings reinforce his view that the Apple Watch will one day make a meaningful contribution to Apple's bottom line.
"At this point it's not moving the needle, but it could have a slightly positive impact in fiscal year 2016 as sales start to ramp up," he said.
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becf6c60c09e6a05610aff97066f5231 | https://www.cnbc.com/2015/09/30/axel-springer-takes-minority-stake-in-thrillist.html | Axel Springer takes minority stake in Thrillist | Axel Springer takes minority stake in Thrillist
VIDEO2:0002:00Axel Springer buys Business InsiderSquawk Box
A day after Axel Springer announced plans to purchase a majority stake in Business Insider, CEO and Chairman Mathias Doepfner told CNBC the German publisher is also investing in lifestyle website operator Thrillist Media Group.
In an interview Wednesday on "Squawk Box," Doepfner did not disclose terms of the deal, but said Axel Springer would take a minority stake in Thrillist. He said Thrillist is "a very wonderful mix of information on restaurants, on traveling, on lifestyle products," but said the decision ultimately came down to Thrillist's leadership.
"The main reason why we invested in [Thrillist] is the founder, Ben Lerer. He has convinced us, and we are very much focused on people when we make decisions. It's the same with Business Insider. Henry Blodget was a key factor for our investment," Doepfner said, referring to the co-founder, CEO and editor-in-chief of the business news website.
Axel Springer announced Tuesday it will pay $343 million for nearly 100-percent ownership of Business Insider.
Read More Axel Springer buys 88 percent of Business Insider
Doepfner said Blodget had signed a package that increases his financial exposure to Business Insider and gives him incentives to remain with the company for 10 years. Because Axel Springer is taking a minority stake in Thrillist, no such agreement is in place with Lerer, he said.
Lerer, a managing partner at venture capital firm Lerer Hippeau Ventures, founded the male-oriented Thrillist with a college friend in 2004 and is its CEO.
In addition to running its namesake website, Thrillist also operates online tech gear guide Supercompressor and e-commerce company Jack Threads, which it acquired in 2010. The company has annual revenues of $100 million.
VIDEO3:0103:01What is Thrillist?Street Signs
Doepfner told CNBC the U.S.has "the biggest and most attractive media market in the world."
"We see tremendous opportunities, and clearly Business Insider is the first big step," he said. "The growth figures are tremendous, growth figures between 70 and 100 percent growth."
Read MoreDoes ESPN's 'SportsCenter' have a future in a digital world?
He said Business Insider had already expanded its audience and begun monetizing, and can now focus on creating profit. The company would have already broken even had it not rightly reinvested in its business, he added.
"We'll focus in the next years on growth, and I'm pretty convinced in a couple of years, people will look back and say, well, just $390 million, that was a reasonable price," he said, referring to the cash and debt free valuation of Business Insider.
—CNBC's Katie Kramer contributed reporting to this story.
Correction: An earlier version misstated the year of Thrillist's founding and the acquisition price of Business Insider.
Disclosure: Business Insider is a competitor of CNBC.
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a652ce28b6489dd2875f6a524833f1ee | https://www.cnbc.com/2015/09/30/best-big-ticket-items-to-buy-in-the-fall.html | Best big-ticket items to buy in the fall | Best big-ticket items to buy in the fall
Shoppers carry away discounted items from a Best Buy store in Naples, Florida.Getty Images
Looking to replace the grill you worked into the ground this summer? If you're smart you'll start shopping now, rather than wait until the warm weather rolls around next year.
Read More Find your best retirement spot
Same goes for lawn mowers and patio furniture. That's because these and other pricy items go on sale between September and the end of November, when demand is low and stores need to make room for new, 2016 inventory. The benefit to you? Saving hundreds of dollars.
—By Lucy Maher, special to CNBC.com Updated 30 Sept. 2015
A Fiat Chrysler Jeep Grand Cherokee is seen at a dealership.Getty Images
Dealers slash prices on 2015 inventory to make room for new 2016 models hitting lots in early fall.
In addition to lower prices, dealers often rely on incentives, like cash-back offers and low interest rates to clear their lots of existing-year models.
Read More
In September and October, according to car-buying site Edmunds.com, the average manufacturer's suggested retail price discount on current models is 9 percent, compared to 4 percent for 2016 models. Wait until December, and your discount rises to 10 percent. Of course, by then, selection will be limited, and you may have to settle for a color you're not wild about.
Malin Holm | Getty Images
Loath to buy a grill now only to watch it collect dust all winter? You may want to think twice, said Mark Di Vincenzo, author of "Buy Ketchup In May And Fly at Noon."
After the summer grilling season, sellers are eager to clear out older models to make room for those with newer bells and whistles. The catch? Limited selection. "The longer you wait, the deeper the discounts," said Di Vincenzo. "But the selection will get worse because new grills won't be shipped to stores until the spring."
Mike Kemp | Getty Images
Like cars, new-model computers start to line store shelves in September and October, after chipmakers like Intel have released their new processors. Throw in annual back-to-school sales and you can score a new lap- or desktop for hundreds off the manufacturer's suggested retail price. You may also get a deal on "bundled" packages, such as a laptop and wireless printer. Prices are dropped further on Black Friday, but you run the risk of reduced selection.
This year may be especially kind to folks looking for bargain PC prices: with consumers migrating to tablets and mobile phones, computer sales are in a slump, which may prompt sellers to slash prices even more than planned. Second-quarter shipments fell 9.5 percent year over year, according to research firm Gartner.
AscentXmedia | Getty Images
Bikes, including high-end models, go on sale during the offseason, with discounts reaching 30 to 50 percent. An even better deal? Buying a bike from a local retailer's rental pool.
Whirlpool washing machines for sale at the Airport Home Appliance store in Concord, California.David Paul Morris | Bloomberg | Getty Images
Major home renovations typically take place in the spring, but the best time to replace that old dishwasher is in the fall. That's when space must be cleared for new inventory, prompting manufacturers to slash prices of existing models. What's more, many appliance sales fall under a quota system, meaning you'll want to time your visit to the end of the month when additional savings may be offered.
Before you head to the store, read up on efficient technology like Energy Star that can save you money on utility bills. You may find that you can save more money in the long run on a slightly less discounted model of washer/dryer or dishwasher that uses less water and electricity than a more traditional one.
John Deere lawn tractors sit on display at Klein Equipment, a John Deere dealership in Galesburg, Illinois.Daniel Acker | Bloomberg | Getty Images
If you've spent all summer battling your grass, the last thing you want to do is invest in a shiny new lawn mower. But this is exactly the time to do so, since lawn mowers take up a lot of floor space, forcing retailers to slash prices to make room for household gear like leaf and snow blowers.
Spaces Images | Getty Images
In many areas, outdoor seating typically goes on sale right after Labor Day, when folks are heading indoors to do their lounging and entertaining.
Waiting longer into fall will likely result in larger discounts, sometimes upward of 50 percent, as retailers make room for winter merchandise and holiday décor. And if you don't mind a few scuffs and dings, you can negotiate deals on floor models with local retailers looking to clear inventory for the winter.
Carnival cruise ship Destiny in port in Key West, Fla.Karen Bleier | AFP | Getty Images
If you're among the thousands of travelers planning a cruise next summer, don't wait to book. Early bird rates of 25 to 50 percent can be found by those willing to place their deposit nine to 12 months in advance. After that, demand increases and so do prices. Another benefit to booking early? You get your pick of itineraries, dates and cabins, as well as potentially lower airfares.
Read More8 places to visit while the dollar is stronger
Conversely, October is a good month for procrastinators as cruise lines slash prices on unsold cabins on holiday sailings.
A shopper looks at televisions in a Best Buy store.Chris Goodney | Bloomberg | Getty Images
If you're a football fan, chances are the turn of fall has you salivating for a new tube. Di Vincenzo says you should hold off until the days leading up to Black Friday. That's when sales of off-brand sets reach their peak.
"Sometimes larger, brand-name TVs will sell for huge discounts of 35 percent or more, but often there will be a very limited number of those deals," he said. "And they're gone within five minutes of a store opening." Depending on the retailer, some of the deals you see in store will be available online, with free shipping.
It's difficult to predict what kind of discounts retailers will offer this year, but if 2014 was any indication, you can expect savings of well into the hundreds of dollars. Last year Amazon dropped the price of Sharp's 60-inch AQUOS 4K Ultra HD display to $1,799.99, a discount of $500. And Target offered a 49-inch LG Electronics 4K display for $999.99, a $250 markdown off the manufacturer's suggested retail price.
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f7081a35f3890b8a9f1c26aab49f0308 | https://www.cnbc.com/2015/09/30/biotech-stocks-could-rally-19-technician.html | Biotech stocks could rally 19%: Technician | Biotech stocks could rally 19%: Technician
VIDEO2:5502:55Look out for a biotech bounce: TechnicianTrading Nation
Biotech stocks surged on Wednesday, with the popular biotech ETF (IBB) rising almost 5 percent. And according to one technician, there are more gains ahead for the recently beleaguered biotech stocks.
On Wednesday, Rich Ross of Evercore ISI said the biotech ETF could spike almost 19 percent. A previous bounce off the $285 support level indicates the potential for another rally, he said.
"I think this double bottom in here is going to set this stage for a move as high as the 100-day moving average," he said Wednesday on CNBC's "Trading Nation." "It was the break below that 100-day that really set the stock off to the downside."
If IBB reaches the 100-day moving average line at $360, that would be about a 19 percent move from its Wednesday closing price of $303.
Wednesday's bounce follows a steep sell-off for the industry ETF, which has fallen 14 percent in one month. IBB has struggled under a broader stock sell-off, as well as accusations of price gouging in some biotech companies that could lead to greater regulation for the industry.
Read MoreHere's the big problem with biotech: Trader
"In the recent market decline, no sector has been hit quite as hard as the biotechs," Ross said. "In addition to that broad market weakness, we had a tweet from Hillary Clinton on cracking down on price gouging if she were to be elected president. That's put pressure on the group here."
With its recent losses, the S&P 500 biotech industry has given up prodigious gains from the past year. The group of stocks are now down about 1.5 percent in one year.
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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8de893f1d7c92cb90c460193380c2e5f | https://www.cnbc.com/2015/09/30/carl-icahn-i-think-markets-are-overpriced-earnings-are-mistated.html | Carl Icahn: I think markets are overpriced, earnings are misstated | Carl Icahn: I think markets are overpriced, earnings are misstated
VIDEO1:5401:54Carl Icahn: 'We're in a bubble'Halftime Report
VIDEO1:4201:42Carl Icahn: Earnings a mirageHalftime Report
VIDEO1:2301:23Carl Icahn: Keep cashHalftime Report
Markets look "way overpriced" and many investors have put themselves in "dangerous" positions, activist investor Carl Icahn told CNBC on Wednesday.
"The public in my opinion is going to get really hurt," he said on "Fast Money: Halftime Report." "This market is in very dangerous territory."
Icahn stressed many of the points he made in a video posted this week titled "Danger Ahead." He said stocks could see a tough run amid the Federal Reserve's near-zero interest rate policy and headwinds like financial engineering for the sake of earnings growth.
"I think earnings are misstated and sort of a complete mirage," he said Wednesday.
Carl IcahnAdam Jeffery | CNBC
In the video, Icahn also warns about potential problems caused by tax loopholes, stock buybacks and liquidity in the high-yield bond market. Amid his concerns, Icahn said he has hedged his investments much more.
Read More5 things that keep Carl Icahn up at night
Icahn stressed, though, that a collapse similar to the one that took place in 2008 seems unlikely.
The billionaire investor has often touted tech giant Apple and criticized the high-yield debt market, which he has long and short interests, respectively. He reiterated previous statements that Wall Street does not fully appreciate Apple and he has considered buying more of the stock.
"I think Apple is still ridiculously underpriced," Icahn said Wednesday.
Icahn also responded to criticism that his dire warnings could benefit his investment positions. He contended that his statements do not always move the markets he discusses.
Read MoreCarl Icahn's bold warning about... Carl Icahn?
Despite his pessimistic outlook, Icahn recently raised his stake in battered natural gas company Cheniere Energy to 11.43 percent. He also built up a huge position in crushed mining company, Freeport-McMoRan.
Icahn said buying the stocks at a cheap price provides chances for long-term upside.
"These are great opportunities I think. But here you have to be extremely careful if you're the average investor," he said.
He added that people are "right to expect" that he would push Freeport for structural changes.
Freeport and Cheniere shares had fallen 60 and 31 percent this year, respectively, as of Tuesday's close.
He also touched on Chesapeake Energy, another embattled oil and gas producer that announced Tuesday it would cut 15 percent of its workforce. Icahn, who owns Chesapeake shares, said he did not advocate the move but said it was a symptom of the industry right now.
— CNBC's Scott Wapner contributed to this report
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9d8f7f18c6dd78e6b88ed86dff4f4577 | https://www.cnbc.com/2015/09/30/carl-icahn-no-brainer-to-elect-trump-president.html | Carl Icahn: 'No-brainer' to elect Trump president | Carl Icahn: 'No-brainer' to elect Trump president
VIDEO3:4403:44Icahn endorses Trump for presidentHalftime Report
Activist investor Carl Icahn doubled down on his support for his friend and presidential candidate Donald Trump on Wednesday.
Icahn contended that electing the controversial billionaire businessman would be a "no-brainer" for American voters. He echoed the anti-establishment sentiment that took Trump to the top of the polling for the Republican presidential nomination this summer.
"I think he has a chance. He's sending a message to the middle class," Icahn said on CNBC's "Fast Money: Halftime Report." "I don't know why you wouldn't vote for someone with that message."
Donald Trump and Carl IcahnAdam Jeffery | CNBC
Trump currently leads the GOP field for the 2016 nomination in most national polls, seeing a meteoric rise in recent months while portraying himself as an outsider from politics and defender of the middle class. He has received backlash for comments on immigration and women's issues as well as a lack of specific policy proposals.
Read MoreTrump picks a new fight, this time with Forbes
Icahn defended Trump, saying he is a "very open-minded guy" who listens to input. He also touted Trump's appeal to conservative voters, stressing that he supports limited government more than other Republican candidates.
Icahn added that he believes Trump has the background to take on business interests and the pay gap between chief executives and their workers.
The billionaire investor has repeatedly said he would decline Trump's offer to become Treasury secretary should he win the White House. However, Icahn noted that he would "certainly be there to advise him if he wanted it."
Read MoreIcahn: Markets overpriced; earnings misstated
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f71b445c3117c98bbc256dc57e111197 | https://www.cnbc.com/2015/09/30/catholic-schools-dilemma-pope-francis-vs-oil-dollars.html | Students on campus at St. Gregory’s University, the only Catholic university in Oklahoma.Source: St. Gregory’s University
As Pope Francis advances his call to action against climate change and dependence on fossil fuels, some in the flock are faced with a dilemma.
Many U.S. Catholic churches and institutions lease land out to oil and gas companies—and make good money doing it. County documents reveal that dioceses in Texas and Oklahoma have signed 235 leases in oil and gas since 2010, according to Reuters. The pope made a formal call to action in June, saying, "There is an urgent need to develop policies so that, in the next few years, the emission of carbon dioxide and other highly polluting gases can be drastically reduced, for example, substituting for fossil fuels and developing sources of renewable energy."
Read MoreCraft brewers get divine inspiration from pope
But at St. Gregory's University, the only Catholic university in Oklahoma, the quandary goes beyond possibly defying the pope's position on climate change. It's also a question of whether to help pay tuition for students who otherwise may not be able to afford it.
First lady Michelle Obama , Pope Francis and U.S. President Barack Obama wave from the balcony during an arrival ceremony at the White House on September 23, 2015 in Washington, DC.Getty Images
The university owns about 800 land leases spread across Oklahoma and Texas, all of which were donated by benefactors over the past two decades. The combined royalties from those leases have averaged half a million dollars each year, or about 3 percent of the university's annual revenue. While that's not a significant percentage of the school's total budget, every dollar counts at St. Gregory's, where 95 percent of its 650 students depend on financial aid in order to pay the school's average, all-inclusive tuition of $30,000.
The royalties provide tuition scholarships for 13 to 15 students every year, according to Greg Main, St. Gregory's president.
"Most students here don't have the income to afford full tuition ... if we're going to serve those students, we need to find a way to supplement (them) by giving them more aid. Those scholarships are where those oil and gas revenues go," Main said.
The average family income of St. Gregory's students is $32,106.
Pope Francis' first global encyclical — a papal letter sent to all Catholic bishops — rallies the world against climate change, characterizing the movement as a moral obligation. But nowhere in its 200 pages does it include the word "divest."
Church leaders have continued to lease land for drilling even after the pope's enclyclical, Reuters found. For instance, the Oklahoma City archdiocese allowed three new oil and gas land leases after the distribution of the encyclical.
"This puts us in an awkward position," said Main. "We are duty-bound and will follow the pope's directives. But it's a matter of sorting out what those directives are, because it's not clear right now."
Read MoreMass appeal? S&P launches 'Catholic Values' index
The Vatican does not hold direct power over how U.S. Catholic institutions invest their money — that right is reserved for the U.S. Conference of Catholic Bishops (USCCB) and its Socially Responsible Investment Guidelines.
The Vatican and the USCCB did not respond to CNBC's inquiries for comment.
Any call to "divest" is also missing from the bishops' investment policy. Its only reference to the environment says it "will actively promote and support shareholder resolutions which encourage corporations to act 'to preserve the planet's ecological heritage'" but does not provide specific investing directions.
Georgetown University, in Washington, D.C., is the only school from among the three wealthiest Catholic colleges and universities to plan divestment from some fossil fuel-related assets. Georgetown is only the second Catholic university overall to divest in the United States after the University of Dayton.
But Georgetown is limiting its divestment to coal companies, continuing to invest in other oil and gas firms. The school believes this "is an impactful first step toward a more sustainable future," according to Rachel Pugh, spokeswoman for Georgetown.
Although Main agrees with the pope that "the issue of climate change is real" and said St. Gregory's plans to revisit its land leases, it does not plan to divest its land holdings until a formal edict is released by the Vatican.
That decision comes despite steadily lower returns from the land leases due to plummeting oil prices. The price of West Texas Intermediate crude futures is down 50 percent in the past year.
"If the church sends forward that kind of directive, then we will do it. In the absence of that directive, it's up to us," Main said. "If divestment is our goal, we will do that gradually, and it has to make business sense."
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4369a470f3d94d0178fdea01868202c8 | https://www.cnbc.com/2015/09/30/chicago-pmi-sept-2015.html | Chicago PMI at 48.7 in Sept vs 53.0 reading expected | Chicago PMI at 48.7 in Sept vs 53.0 reading expected
A worker at the Aluminum Case Company in Chicago.Tim Boyle | Bloomberg | Getty Images
The Chicago Purchasing Managers Index showed surprising weakness in September, with the gauge dropping below 50.
Chicago PMI, a reading on manufacturing activity, fell to 48.7, compared with expectations of 53.0 and down sharply from 54.4 reported a month earlier.
A reading below 50.0 indicates a contraction in the sector.
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1fee33a96d1456f136b91344899c5510 | https://www.cnbc.com/2015/09/30/cnbc-excerpt-cnbcs-john-harwood-speaks-with-donald-trump-on-his-net-worth.html | CNBC Excerpt: CNBC’s John Harwood Speaks with Donald Trump on His Net Worth | CNBC Excerpt: CNBC’s John Harwood Speaks with Donald Trump on His Net Worth
WHEN: Today, Wednesday, September 30, 2015
WHERE: CNBC's "Squawk Box"
Following is an excerpt from the unofficial transcript of a CNBC interview with Donald Trump. Following is a link to the video of the clip on CNBC.com: http://video.cnbc.com/gallery/?video=3000427380.
John Harwood spoke with Donald Trump for an upcoming episode of his CNBC Digital original video series - Speakeasy with John Harwood (http://www.cnbc.com/speakeasy). The complete Speakeasy featuring Donald Trump will be published on Thursday, October 1 only on CNBC.com.
All references must be sourced to CNBC.
BRIAN SULLIVAN: WELCOME BACK TO "SQUAWK BOX" CERTAINLY ON A RAINY WEDNESDAY. CHECK OUT THE NEW "PEOPLE" MAGAZINE COVER. IT IS TITLED "AT HOME WITH THE TRUMPS." THE GOP PRESIDENTIAL FRONT RUNNER ALSO SPEAKING WITH OUR OWN JOHN HARWOOD IN THE LATEST EDITION OF JOHN'S SPEAKEASY SERIES. JOHN JOINING US ON SET. JOHN?
JOHN HARWOOD: BRIAN, WE TALKED TO DONALD TRUMP ABOUT THE NEW "FORBES" MAGAZINE ESTIMATE OF HIS WEALTH, WHICH CAME OUT TO LESS THAN HALF OF WHAT DONALD TRUMP SAID. HE SAID "FORBES" DOESN'T KNOW WHAT THEY WERE TALKING ABOUT. TAKE A LISTEN.
HARWOOD: I READ THIS MORNING THAT YOU'RE A $4.5 BILLION MAN.
DONALD TRUMP: OK. FINE. WHERE?
HARWOOD: IN "FORBES."
TRUMP: AH. OKAY.
HARWOOD: WHAT DO YOU THINK OF THEIR LIST?
TRUMP: WELL, I THINK THEIR LIST – I MEAN, NUMBER ONE, I'M A PRIVATE COMPANY. THEY DON'T REALLY KNOW MY ASSETS VERY WELL. I THINK THAT THEY ARE VERY GOOD PEOPLE. I LIKE THE PEOPLE AT "FORBES." THEY DON'T KNOW A LOT OF THE THINGS I OWN. I DON'T THINK THEY GIVE ME ANY VALUE FOR BRAND AND MY BRAND IS VERY VALUABLE. I DO DEALS – I'M DOING DEALS RIGHT NOW. IN FACT, WHEN I LEAVE YOU, I'M SIGNING A BRANDING DEAL THAT'S A PHENOMENAL, TREMENDOUS HUNDREDS OF MILLIONS OF DOLLARS IN VALUE, ALL BECAUSE OF MY BRAND. AND THEY GIVE YOU NO VALUE FOR BRAND, WHICH I THINK IS FINE.
HARWOOD: YOU THINK THEY ARE WRONG?
TRUMP: AND THE OTHER THING IS THEY HAVE ASSETS THAT I HAVE THAT THEY DON'T EVEN KNOW I HAVE BECAUSE I'M PRIVATE. SO IF THEY VALUE ME AT $4.5 BILLION, AND I'M SURE THEY'VE SAID I'M VERY LIQUID BECAUSE I'M EXTREMELY LIQUID –
HARWOOD: I MEAN, TO THE ORDINARY PERSON, A BILLION DOLLARS IS MORE THAN ANYBODY NEEDS IN THEIR LIFETIME, BUT WHAT THEY INDICATED WAS IF YOU SPEND $100 MILLION BY THEIR ASSESSMENT, THAT'S ALMOST A THIRD OF ALL YOUR CASH.
TRUMP: IF I SPEND HOW MUCH?
HARWOOD: A HUNDRED MILLION DOLLARS ON YOUR CAMPAIGN.
TRUMP: WELL, NO. THEY ARE WRONG, BUT I HAVE A LOT OF CASH. BUT IF I HAD, I THINK, I MEAN I'M NOT GOING TO GO AND TELL YOU EXACTLY WHAT CASH I HAVE, BUT I HAVE HUNDREDS OF MILLIONS OF DOLLARS OF CASH. SO IF I SPEND –
HARWOOD: THEY SAID YOU SAID LIKE 800, AND THEIR ASSESSMENT IS 325.
TRUMP: I DON'T KNOW WHATEVER IT IS. DO YOU AGREE IT IS A LOT?
HARWOOD: YES, IT'S A LOT.
TRUMP: OK. IT'S A LOT.
About CNBC:
With CNBC in the U.S., CNBC in Asia Pacific, CNBC in Europe, Middle East and Africa, CNBC World and CNBC HD , CNBC is the recognized world leader in business news and provides real-time financial market coverage and business information to approximately 371 million homes worldwide, including more than 100 million households in the United States and Canada. CNBC also provides daily business updates to 400 million households across China. The network's 15 live hours a day of business programming in North America (weekdays from 4:00 a.m. - 7:00 p.m. ET) is produced at CNBC's global headquarters in Englewood Cliffs, N.J., and includes reports from CNBC News bureaus worldwide. CNBC at night features a mix of new reality programming, CNBC's highly successful series produced exclusively for CNBC and a number of distinctive in-house documentaries.
CNBC also has a vast portfolio of digital products which deliver real-time financial market news and information across a variety of platforms. These include CNBC.com, the online destination for global business; CNBC PRO, the premium, integrated desktop/mobile service that provides real-time global market data and live access to CNBC global programming; and a suite of CNBC Mobile products including the CNBC Real-Time iPhone and iPad Apps.
Members of the media can receive more information about CNBC and its programming on the NBC Universal Media Village Web site at http://www.nbcumv.com/mediavillage/networks/cnbc/.
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a1075857745eb18bc454ce0b24c0f0fc | https://www.cnbc.com/2015/09/30/cnbc-exclusive-cnbc-transcript-cnbcs-sara-eisen-speaks-with-imf-managing-director-christine-lagarde-on-cnbcs-squawk-alley-today.html | CNBC Exclusive: CNBC Transcript: CNBC’s Sara Eisen Speaks with IMF Managing Director Christine Lagarde on CNBC’s “Squawk Alley” Today | CNBC Exclusive: CNBC Transcript: CNBC’s Sara Eisen Speaks with IMF Managing Director Christine Lagarde on CNBC’s “Squawk Alley” Today
WHEN: TODAY, WEDNESDAY, SEPTEMBER 30
WHERE: CNBC'S "SQUAWK ALLEY"
Following is the unofficial transcript of a CNBC EXCLUSIVE interview with IMF Managing Director Christine Lagarde and CNBC's Sara Eisen on CNBC's "Squawk Alley" (M-F, 11AM-12PM ET) today. Following are links to the interview on CNBC.com: http://video.cnbc.com/gallery/?video=3000427506 and http://video.cnbc.com/gallery/?video=3000427498.
All references must be sourced to CNBC.
CARL QUINTANILLA: THE IMF CHRISTINE LAGARDE JUST WRAPPING UP HER CURTAIN RAISER FOR THE IMF WORLD BANK MEETING NEXT WEEK. LET'S GO TO SARA EISEN WHO IS WITH THE MANAGE DIRECTOR THIS MORNING. HEY, SARA.
EISEN: THANK YOU SO MUCH FOR BEING HERE MANAGING DIRECTOR. GOOD TO SEE YOU AGAIN.
LAGARDE: MY PLEASURE. HOW ARE YOU?
EISEN: GOOD SO WE JUST HEARD YOUR SPEECH, AND YOU HAVE BEEN WARNING ABOUT A GLOBAL GROWTH SLOWDOWN FOR A WHILE NOW.
LAGARDE: YEP.
EISEN: HOW MUCH ARE WE TALKING ABOUT? WHAT KIND OF SLOWDOWN ARE WE LOOKING AT?
LAGARDE: THERE IS RECOVERY. DON'T GET ME WRONG, BUT IT IS DEFINITELY SLOWING DOWN, AND IT IS LESS THAN THE RECOVERY WE HAD LAST YEAR, AND WE DON'T FORECAST NEXT YEAR TO BE MUCH MORE THAN WHAT WE EVENTUALLY END UP WITH THIS YEAR.
EISEN: I KNOW BECAUSE OF THE UNCERTAINTY AROUND EMERGING MARKETS AND CHINA, YOU HAVE ASKED THE FEDERAL RESERVE TO BE PATIENT AND HOLD OFF. YOU MUST HAVE BEEN HAPPY THAT THEY DID NOT RAISE RATES A FEW WEEKS AGO.
LAGARDE: I DIDN'T -- I WOULDN'T DARE ASK THE FEDERAL RESERVE TO DO CERTAIN THINGS. AS FAR AS THE FED IS CONCERNED, WE ARE VERY PLEASED TO SEE THE FACT THAT THE DECISION WILL BE DATA DEPENDENT. WE THINK THAT'S VERY, VERY GOOD. WE DON'T SEE MUCH MOVEMENT ON THE INFLATION FRONT, NOR ON THE WAGES FRONT, SO WE ALSO ARE VERY INTERESTED TO SEE THAT THE INTERNATIONAL SCENE IS ALSO PERCEIVED AS LIKELY TO HAVE DOMESTIC EFFECTS AND MAY HAVE BEEN FACTORED INTO THE THINKING. WE'RE NOT ASKING. WE'RE SAYING DATA DEPENDENT, PERFECT.
EISEN: BUT YOU DID PREVIOUSLY SAY PERHAPS IT WOULD BE PRUDENT TO WAIT UNTIL NEXT YEAR.
LAGARDE: WE SAID THAT THE BEST THING IS TO MOVE AND NOT TO HAVE TO MOVE BACK. WHEN THE DATA AND THE INFORMATION ARE WELL ANCHORED -- WHEN THERE IS CERTAINTY, THEN FINE. BUT NO RUSH
EISEN: IT IS NOT THERE YET YOU ARE SAYING.
LAGARDE: WE ARE NOT SEEING IT AND I DON'T THINK THE FED IS SEEING IT EITHER.
EISEN: WELL THERE IS STILL TALK. JANET YELLEN IS STILL TALKING ABOUT AN INTREREST RATE INCREASE THIS YEAR. WOULD THAT BE A MISTAKE?
LAGARDE: I WOULDN'T SAY THAT. I WOULD SAY THAT, AGAIN, LET'S MAKE SURE THAT IT IS DATA-DEPENDENT. IF THE DATA ARE NOT TELLING THAT STORY OF INFLATION RISING A BIT BY DECEMBER, THEN WHY DO IT IN DECEMBER? I THINK THE CHAIRMAN YELLEN WAS ABSOLUTELY RIGHT TO SAY IT SHOULD BE DATA DEPENDENT. SHE'S GONE INTO GREAT DETAILS TO EXPLAIN WHAT DATA, HOW IT SHOULD BE ANALYZE AND SO ON AND SO FORTH. WE WERE VERY IMPRESSED AND HAPPY WITH THAT.
EISEN: WELL, SOME MIGHT SAY IT'S JUST ONE LITTLE HIKE OFF OF ZERO. 25 BASIS POINTS. STILL VERY EASY POLICY. VERY ACCOMMODATIVE. WHAT ARE YOU SO WORRIED ABOUT?
LAGARDE: WE'RE NOT WORRIED, BUT WE THINK THAT THE TRANSITION HAS TO BE MANAGED PROPERLY BOTH AT SOURCE, NO DOUBT IT WILL BE, BUT ALSO AT THE RECEIVING END AS WELL. THOSE DECISIONS HAVE SPILLOVER EFFECTS. THEY HAVE RAMIFICATIONS ACROSS THE WORLD. IT MIGHT BE A 25 BASIS POINTS INCREASE, WHICH IS VERY LOW. YOU ARE RIGHT. IT'S A MOVEMENT AWAY FROM A TREND THAT WE HAVE SEEN FOR NINE YEARS. THE FED HAS NOT MOVED UP FOR NINE YEARS. IF IT MOVES, MOVES ONCE, IT WILL MOVE ANOTHER TIME, AND SO ON AND SO FORTH. SO IT'S AN INDICATION OF A GREAT THING. THE U.S. ECONOMY IS DOING BETTER. SUPERB. IT HAS ALSO, YOU KNOW, SPILL-OVER EFFECTS OUTSIDE, AND IT HAS AN IMPACT ON EXCHANGE RATES. IT HAS AN IMPACT ON THE FINANCIAL CONDITIONS OF THOSE WHO ARE BORROWING ELSEWHERE THAN IN THE UNITED STATES AS WELL.
EISEN: WHEN WE THINK ABOUT THE SPILLOVER, WE THINK EMERGING MARKETS. WE'RE ALREADY SEEING SOME OF THE CARNAGE THERE. YOU MENTIONED FIVE YEARS OF DECLINING GROWTH RATES. WHAT WOULD HAPPEN TO EMERGING MARKETS WHEN THE FED RAISES RATES?
LAGARDE: FIRST OF ALL, LET'S NOT FORGET THAT THE EMERGING MARKETS AND THE DEVELOPING WORLD HAVE BEEN DRIVING GROWTH FOR THE LAST FIVE YEARS. YES, IT HAS BEEN DECLINING, BUT FOR THE LAST MORE THAN FIVE YEARS, ACTUALLY, THEY HAVE DRIVEN GROWTH. THEY HAVE BEEN 80% OF THE GROWTH THAT WE HAVE SEEN. THEY'RE NOW PLAYING A MAJOR ROLE IN THE GLOBAL ECONOMY, WHICH IS WHY THOSE SPILLOVERS AND SPILLBACK EFFECTS ARE SO IMPORTANT. YOU KNOW, FINANCIAL TERMS, ARE GOING TO BE DIFFERENT, AND THOSE WHO HAVE BORROWED IN U.S. DOLLARS, FOR INSTANCE, ARE GOING TO, YOU KNOW, FEEL THE CONSEQUENCES OF THAT CHANGE OF INTEREST RATES GOING FORWARD, AND THERE WILL BE INCREASED VOLATILITY. I THINK SOME OF IT IS ALREADY PRICED IN, BUT THERE WILL BE SOME.
EISEN: SOME MORE PAIN AHEAD FOR EMERGING MARKETS.
LAGARDE: SOME MORE VOLATILITY, AND SOME MORE, YOU KNOW, EVOLUTION BOTH IN TERMS OF FINANCING CONDITIONS AS WELL AS EXCHANGE RATES. YES.
EISEN: YOU WARNED IN YOUR SPEECH JUST NOW OF CORPORATE FAILURES. IS THAT ONE OF THE RISKS YOU'RE LOOKING AT?
LAGARDE: IT IS. IT IS ONE OF THEM. THE EMERGING MARKET ECONOMIES HAVE SEEN THE CULPRITS ACCUMULATE A LOT OF DEBT. DEBT TO FINANCE INVESTMENT, DEBT TO FINANCE INFRASTRUCTURE AND SO ON AND SO FORTH. THEY ARE MUCH MORE LEVERAGED THAN THEY WERE A FEW YEARS BACK. THAT IS A POTENTIAL RISK. ONE THAT THEY HAVE TO HEDGE AGAINST AND, YOU KNOW, WE DON'T HAVE A LOT OF INFORMATION IN DETAILS ABOUT THE HEDGING POLICIES OF THOSE. IT'S ONE THING WHERE WE SAY TO THE POLICYMAKERS, THROUGH THE GOVERNMENTS OF THOSE COUNTRIES, WATCH OUT, LOOK INTO THAT, AND MAKE SURE THAT THERE IS – THERE ARE PRECAUTIONS TAKEN, AND YOU HAVE A SYSTEM IN PLACE, INCLUDING THE JUDICIAL, THE LEGAL SYSTEM, AND THE SAFETY NET THAT IS ARE IN PLACE TO ADDRESS THAT POTENTIAL RISK.
EISEN: CHINA HAS BEEN A BIG SOURCE OF ANXIETY LATELY FOR GLOBAL INVESTORS ON THIS EMERGING MARKETS SLOWDOWN. HELP DRIVING THE EMERGING MARKETS SLOWDOWN. YOU HAVE ACTUALLY BEEN RELATIVELY UPBEAT ABOUT CHINA, THAT THEY HAVE IT UNDER CONTROL. IN FACT I THINK YOU CALLED IT A WELCOME TRANSITION. HOW CAN YOU BE SO SURE THAT THEY ARE ABLE TO MANAGE THE SLOWDOWN?
LAGARDE: WE ARE SEEING IT AS A NECESSARY AND HEALTHY TRANSITION AND ONE THAT MANY HAVE CALLED FOR FOR MANY YEARS. TO MOVE FROM BEING COMMODITY AND INVESTMENT LED TO BEING CONSUMPTION LED FROM BEING MMORE DOMESTICALLY FOCUSED THAN EXPORT DRIVEN. FROM BEING MORE DETERMINED BY MARKET RULES. ALL OF THOSE ARE MASSIVE TRANSITIONS. THEY ARE HAPPENING, AND THEY ARE TAKING PLACE, AND THEY ARE SURPRISING THE WORLD. A LOT OF INVESTORS HAVE BEEN TAKEN A BIT BY SURPRISE IN THE COURSE OF THE SUMMER BY WHAT THEY SAW, BUT THAT IS EXACTLY WHAT WAS EXPECTED, WHAT WE REGARD AS NECESSARY AND HEALTHY. ON CHINA, WE MORE OR LESS MAINTAIN OUR FORECAST FOR THIS YEAR AND FOR NEXT YEAR. WHAT WE ARE SEEING IS A LOT OF SPILLOVER EFFECTS WHICH CERTAINLY WE WOULD NOT HAVE SEEN TEN YEARS AGO. THE TRADE CHANNELS, THE INVESTMENT CHANNELS, THE MARKET CHANNELS, THE COMMODITY CHANNEL, ALL OF THAT IS, YOU KNOW, CONDUCING THE CONSEQUENCES OF THIS NECESSARY SLOWDOWN. WE HAVE TO ADJUST. WE HAVE TO MANAGE THAT TRANSITION.
EISEN: ON COMMODITIES, I MEAN, IT'S ONE THING TO HAVE COMMODITY PRICES FALLING, BUT NOW YOU ARE LOOKING AT ALL SORTS OF DAMAGE FROM GLENCORE TO BRAZIL. I MEAN, DOES THE -- WHAT YOU CALL PROLONGED, SO IT SOUNDS LIKE YOU EXPECT THE COMMODITIES SLUMP TO CONTINUE, START TO WORRY YOU SOME?
LAGARDE: IF YOU LOOK AT THE EVOLUTION BOTH IN TERMS OF METAL PRICES, OIL PRICES, FOOD PRICES – LESS SO FOOD, BUT ON THE OTHER ONES, THERE'S A VERY STRONG CORRELATION BETWEEN THE GRADUAL SLOWDOWN OF CHINA AND THE – NOT JUST RECENT, BUT THE DECLINE OF COMMODITY PRICES OVER THE LAST FIVE YEARS. CLEARLY, IF YOU HAVE A BIG DRIVER OF GROWTH WHICH IS SLOWING DOWN AND DELIBERATELY SLOW IN A MANAGED WAY THERE WILL BE LESS COMMODITY DEMAND ADDRESSED THROUGH THE COMMODITY PRODUCERS AND EXPORTERS. I THINK IT'S A FACT THAT THE WORLD HAS TO GET USED TO, AND THAT THE POLICYMAKERS HAVE TO ADJUST TO, DIVERSIFYING THE ECONOMIES, HEDGING AGAINST THE RISK, CHECKING THAT THEY HAVE ALL THE MACROPRUDENTIAL TOOLS TO MAKE SURE THAT WHAT HAPPENS IN THE CORPORATE WORLD DOES NOT TRANSLATE IMMEDIATELY TO THE BANKING WORLD AND THEN TO THE SOVEREIGN. SO I THINK YES IT IS SOMETHING IT IS A FACT THAT WE ARE GOING TO LIVE WITH FOR QUITE AWHILE.
EISEN: TALKING ABOUT MARKET SWINGS, YOU AND I HAVE TALKED BEFORE ABOUT THE FACT THA THE EQUITY MARKETS IN PARTICULAR HAVE LOOKED A LITTLE DISCONNECTED FROM REALITY AT TIMES OVER THE LAST FEW YEARS. A LITTLE EXUBERANT. YOU WOULD NEVER USE THE WORLD BUBBLE, BUT SOME DO. NOW WE HAVE CORRECTED, AND WE'RE SEEING ALL SORTS OF VIOLENT SWINGS, MARKETS IN TURMOIL. DOES THIS FEEL LIKE A NORMAL, HEALTHY ADJUSTMENT TO THE FUNDAMENTALS OF SLOWING GLOBAL GROWTH OR IS THERE SOMETHING SCARIER GOING ON?
LAGARDE: WELL, IT IS PROBABLY A NECESSARY ADJUSTMENT. YOU KNOW, WHAT WE SAW ON THE SHENZHEN AND THE SHANGHAI MARKET IN THE SUMMER WHERE IT INCREASED BY ABOUT 80%. WENT DOWN BY HALF. WELL, THAT'S A NECESSARY AND PROBABLY QUITE HEALTHY ADJUSTMENT HOWEVER ABRUPT THAT WAS. WE ARE GOING TO FACE THAT REALITY. WHAT I'M MORE CONCERNED ABOUT ACTUALLY IS WHAT IMPACT IT HAS ON PEOPLE, WHAT IMPACT IT HAS ON THE REAL ECONOMY, YOU KNOW, WHETHER PEOPLE ARE GOING TO KEEP THEIR JOBS, WHETHER THE CORPORATES ARE GOING TO BE ABLE TO READJUST AND DIVERSIFY. I THINK THAT'S FAR MORE IMPORTANT AND MORE LONG-TERM.
EISEN: YOU THINK IT'S A RISK TO THE U.S. ECONOMY, WHAT'S HAPPENING WITH FINANCIAL STABILITY?
LAGARDE: I THINK THIS SHOWS FINANCIAL STABILITY IS GOING TO HAVE MORE IMPACT OR DIRECT IMPACT OUTSIDE THE UNITED STATES. BUT YOU KNOW, MARKETS ARE FAIRLY UNPREDICTABLE AND THEY DON'T LIKE UNCERTAINTY. SO THAT'S THE REASON WHY WE BELIEVE THAT GOOD COORDINATED POLICIES BY THE POLICYMAKERS WOULD HELP REINFORCE CONFIDENCE AND PREDICTABILITY.
EISEN: WE HAVEN'T HEARD FROM YOU SINCE THE GREEK RESOLUTION, NONRESOLUTION. ANOTHER EPIC SHOWDOWN OVER THE SUMMER OVER GREEK DEBT. HUNDREDS OF BILLIONS OF DOLLARS HAVE BEEN SPENT BAILING OUT GREECE, INCLUDING SOME FROM THE IMF. HAS THE GREEK CRISIS BEEN SOLVED, OR HAS THE CAN JUST BEEN KICKED DOWN THE ROAD EVEN FARTHER?
LAGARDE: YOU KNOW, THE LATEST DEVELOPMENT WAS MID-AUGUST. I REMEMBER CLEARLY. BECAUSE WE SPENT QUITE A BIT OF TIME ON CONFERENCE CALLS IN THE MIDDLE OF THE SUMMER.
EISEN: I IMAGINE.
LAGARDE: BUT THERE HAVE BEEN MORE RECENT DEVELOPMENTS. I THINK THE POLITICAL ELECTIONS THAT TOOK PLACE ABOUT TEN DAYS AGO AND THE FORMATION OF THE NEW GOVERNMENT ARE CERTAINLY STABILITY FACTORS IN THE GREEK LANDSCAPE, AND I CERTAINLY HOPE THAT IT WILL HELP TO IMPLEMENT THE REFORMS THAT THEY HAVE NEGOTIATED IN THE COURSE OF THE SUMMER. SO IT'S, AGAIN, GOING TO BE WHERE IS THE IMPLEMENTATION, HOW QUICKLY, AND AS FAR AS THE IMF IS CONCERNED, WE ARE PREPARED TO ENGAGE, YOU KNOW, UNDER CERTAIN CONDITIONS.
EISEN: BUT YOU WANTED A DEBT WRITE-DOWN AND SO DID MANY OTHERS. GERMANY BLOCKED THAT. ARE THE GERMAN POLICIES AND THE GERMAN MENTALITY HURTING THE REST OF EUROPE?
LAGARDE: WE ARE TALKING ABOUT DEBT RESTRUCTURING, WHICH IS NOT A CUT, BUT IT IS A RESTRUCTURING – MATURITY, INTEREST RATES, THAT SERVICE FRANCHISE FOR A PERIOD OF TIME. AND THAT CAN ONLY TAKE PLACE IF THERE IS RESCIPROCITY. WHAT I MEAN BY THAT IS IF THE GREEK AUTHORITIES AND THE GREEK PEOPLE ACTUALLY IMPLEMENT THE REFORMS AND GO TOWARDS, YOU KNOW, MORE FISCAL STABILITY. A REFORM OF THE OLD CLIENTELE-BASED SYSTEM. IF THEY TAKE SERIOUS DECISIONS ON THE PENSION FRONT, THEN CLEARLY ON THE OTHER SIDE, THE PARTNERS HAVE TO LOOK AT ALLEVIATING THE BURDEN OF DEBT OVER A PERIOD OF TIME. YEAH.
EISEN: LET'S TALK ABOUT THE PROBLEMS HERE IN THE U.S. THE POLITICAL ISSUES IN THE U.S. NOW THAT HOUSE SPEAKER BOEHNER HAS STEPPED DOWN. WE'RE FACING ANOTHER LOOMING SHUTDOWN DEADLINE IN THE NEXT 12 HOURS AND POTENTIAL DEBT CEILING ONE COME NEXT FALL LATER IN THE FALL OR EVEN IN THE WINTER. ARE THE POLITICAL PROBLEMS AND UNCERTAINTIES HERE A HEADWIND TO GROWTH AND WHAT HAS BEEN THE GLOBAL BRIGHT SPOT FOR THE IMF, WHICH IS THE U.S.?
LAGARDE: YOU KNOW, I REMEMBER WHEN I JOINED WE HAD THE SAME ISSUES. SO THE MORE IT CHANGES, THE MORE IT IS THE SAME. AND I'M JUST WONDERING WHETHER ECONOMIC KEY PLAYERS ARE NOT GETTING USED TO IT, WHICH WOULD BE A PITY BECAUSE I THINK, YOU KNOW, POLICYMAKERS ARE PLAYING A ROLE IN BUILDING CONFIDENCE, REMOVING UNCERTAINTY, GIVING PREDICTABILITY TO A SYSTEM. I HOPE THAT IS THE CASE. UNCERTAINTY IS NOT HELPFUL. WHEN WE SEE AN ECONOMY THAT IS, YOU KNOW, AT THE MOMENT, LEADING THE GLOBAL CHARGE BY HAVING A REASONABLY GOOD GROWTH, IT'S A PITY NOT TO LEVERAGE THAT.
EISEN: WHAT DO YOU THINK OF DONALD TRUMP?
LAGARDE: I DON'T KNOW HIM PERSONALLY.
EISEN: WELL, YOU DO. I KNOW YOU DON'T LIKE TO PLAY POLITICS, BUT THE IMF DOES LOOK AT THE FISCAL POLICIES OF COUNTRIES. IN FACT, YOU JUST SAID THAT THE U.S. NEEDS AN URGENT SOUND FISCAL POLICY ALONG WITH JAPAN. I JUST WONDER WHAT THE ECONOMIC AND FISCAL PROSPECTS OF THIS COUNTRY WOULD BE UNDER A PRESIDENT TRUMP?
LAGARDE: YOU KNOW, WE'RE SAYING FOR THE FISCAL POLICY THAT THE COUNTRY NEEDS A MEDIUM-TERM ANCHOR, AND THERE ARE CLOUDS ON THE HORIZON. WHETHER IT'S ENTITLEMENT, WHETHER IT'S PENSION, WHETHER IT'S THE AGING POPULATION THAT REQUIRES HEALTH SERVICES AND SO ON AND SO FORTH. IT NEEDS TO BE PROPERLY ANCHORED. WE'VE BEEN SAYING THAT FOR THE LAST THREE OR FOUR YEARS, AND I REPEAT IT. IT NEEDS TO BE ANCHORED, WHICH DOESN'T MEAN TO SAY THAT WE NEED ABSOLUTE AUSTERITY TODAY.
EISEN: FINALLY, I WANT TO ASK ABOUT YOU YOURSELF. YOU'RE ACTUALLY IN YOUR FINAL YEAR AS MANAGING DIRECTOR. TERM ENDS JULY –
LAGARDE: DOES IT LOOK LIKE IT? YES, PROBABLY.
EISEN: NO, IT DOESN'T. BUT IT HAS BEEN AN EVENTFUL ONE. WE HAVE A NEW CRISIS TO TALK ABOUT EVERY TIME WE GO INTO ONE OF THESE SEMI-ANNUAL MEETINGS.
LAGARDE: THAT'S TRUE.
EISEN: WHAT DO YOU HOPE TO ACCOMPLISH OVER THE NEXT FEW MONTHS, AND THEN WHAT'S NEXT?
LAGARDE: WELL, OVER THE NEXT WEEK, ACTUALLY, BECAUSE THE 188 MEMBERS WILL BE MEETING IN LIMA, PERU FOR THE FIRST TIME IN THE LAST 50 YEARS, AND I HOPE THAT THEY CALL US AROUND THE NECESSITY OF AN UPGRADE OF THEIR POLICIES. I THINK MANY OF THEM ARE DOING SOME RIGHT THINGS, BUT IT NEEDS TO BE UPGRADED IN VIEW OF THE URGENCY AND IN VIEW OF THE SIZE OF CHALLENGES THAT WE ARE FACING. SO WE WILL PUSH THAT VERY STRONGLY, AND IT NEEDS TO BE A COLLECTIVE UPGRADE. IT CAN'T BE JUST I'M DOING MY OWN THINGS IN MY OWN BACKYARD. IT'S A COLLECTIVE ISSUE.
EISEN: WELL, HOPEFULLY WE'LL TALK TO YOU A FEW MORE TIMES BEFORE THAT.
LAGARDE: SO DO I.
EISEN: THANK YOU VERY MUCH, AS ALWAYS. MADAM CHRISTINE LAGARDE, THE MANAGING DIRECTOR OF THE IMF. WE'LL SEND IT BACK TO YOU IN NEW YORK, CARL.
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3a8cddf502406a237382a9fe6594dc3a | https://www.cnbc.com/2015/09/30/cop21-what-you-need-to-know.html | Massive climate summit coming: What you need to know | Massive climate summit coming: What you need to know
Chase Dekker Wild-Life Images | Moment | Getty Images
It's not just environmentalists and scientists concerned about climate change. In a speech at Lloyd's of London last night, Bank of England governor Mark Carney said that, "The challenges currently posed by climate change pale in significance compared with what might come."
Carney went on to explain that, "Once climate change becomes a defining issue for financial stability, it may already be too late," and added that, "While there is still time to act, the window of opportunity is finite and shrinking."
At the end of this year, leaders from around the world will convene in Paris for COP21 or, to give its full name: the 21st Session of the Conference of the Parties to the United Nations Framework Convention on Climate Change.
COP21 will take place between November 30th and December 11th and carries huge significance when it comes to climate change and the future of our planet.
Described by its organisers as "crucial", COP21 will see the world's leaders, scientists, pressure groups and United Nations agencies attempt to thrash out, "a new international agreement on the climate, applicable to all countries, with the aim of keeping global warming below 2 degrees Celsius."
An ancient Japanese art is transforming solar power
According to the International Energy Agency (IEA), "the world is at a critical juncture in its efforts to combat climate change."
The consequences of global warming and climate change could be significant and lasting.
"With global mean temperature rising above 2 degrees centigrade, the risk for triggering large-scale changes in the Earth system, so-called tipping points, increases disproportionately and with it the very possibility to adapt to a changing environment," Daniel Klingenfeld, head of director's staff at the Potsdam Institute for Climate Impact Research, told CNBC via email.
Klingenfeld went on to explain how the planet could change. "Examples include abruptly shifting monsoon patterns, transformation of the Amazon rainforest into a seasonal forest, or the stability of the West-Antarctic Ice Sheet," he said.
"We should not be gambling with the planet – for our own sake," he added.
Ian Waldie | Getty Images
What's more, the impact of global warming and climate change is already being felt across the planet.
The European Commission, for example, states that forest fires, droughts and heat waves are becoming more frequent in southern and central Europe, while northern Europe is becoming "significantly wetter."
The Commission also says that winter flooding in northern Europe could become a common occurrence in future years.
Earlier this month, Christiana Figueres, executive secretary of the UN Framework Convention on Climate Change, struck a downbeat tone when she said that pledges being made by governments ahead of COP21 would not restrict global warming to 2 degrees Celsius.
"I want that to be clear," she said, "Because I think it is unfair for public opinion to be misled and think that Paris will be a miraculous solution that takes us from where we are now, on the way to 4-5 degrees increase, to be all of a sudden on the way to this miraculous, wonderful, perfect target of 2 degrees. That is not the case."
Klingenfeld said that the target of 2 degrees Celsius was a compromise between something that would be "desirable" in terms of protecting the climate and achievable. "Even with a warming around 2 degrees Celsius, the adaptation challenges will be important and many ecosystems will come under high stress or be lost altogether, such as the majority of coral reefs," he said.
Klingenfeld added that it was still not clear whether humanity would be able to muster both the will and resources to act before it was too late.
"The international negotiations can only deliver as much as people, via their governments, are ready to contribute," Klingenfeld said. "The process of balancing the interests of countries worldwide has been slow and cumbersome," he added.
Klingenfeld went on to state that instead of waiting for top down actions, people could take steps themselves to try and mitigate climate change, citing the success of the fossil fuel divestment movement, which he said can trace its beginnings to universities in the U.S.
Klingenfeld said that the initiative had "gained traction at the global level."
"And no one is holding you back from changing behavior and adopting a more sustainable lifestyle," he added.
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d419acc35342c9406e4dbc91b1174c5e | https://www.cnbc.com/2015/09/30/cramer-i-cant-be-bullish-until-this-happens.html | VIDEO10:1910:19Cramer: I can't be bullish until THIS happensMad Money with Jim Cramer
Jim Cramer waved goodbye to September and a horrendous third quarter on Wednesday. The market declined almost 10 percent during that time, and every rally turned out to be a trap or a sucker's game, even though it ended on a positive note.
"We did not see a lot of buying today, we just saw an absence of selling. They are different, and a pause in selling can take us higher, but not so high that it is worth plunging in with both feet," the "Mad Money" host said.
Cramer pointed out that investors are still in a bear market that needs to run its course. And most of the bear markets that he has lived through had to do with overvaluation, coupled with a shock to the system that created the wave of stocks for sale.
This bear market is certainly similar. Stocks did get expensive, but that is because interest rates have been so low. However, valuations have not been insane.
The best comparison that Cramer finds to this bear is from 2011, when stocks plunged 17 percent from peak to trough, even as though many stocks far exceeded that decline.
"If a 2011-style bear market plays out, I believe that the Dow is roughly 1,000 points away from hitting what could be an intermediate term bottom, and the has another 90 points to fall…before we can get a long-lasting bounce," Cramer said.
I can't be as bearish as I was up higher, but I can't be that bullish until some of these seven pillars of weakness get shored upJim Cramer
A gas flare is seen at an oil well near Williston, North Dakota.Getty Images
That bounce will allow for some serious reconfiguring if the issues behind the chaos do not go away. That is why Cramer identified places of weakness that must be resolved in order for him to be bullish once again.
No. 1 Stocks need to come down to levels where it would be ridiculous to sell. Unfortunately, they are not there yet, but Cramer said we may be further along than most people think.
No. 2 The Fed needs to make up its darned mind already. Right now, the Fed has created an environment of uncertainty, and that is never good for stocks.
No. 3 The Volkswagen, Petrobras and Glencore shoes need to drop. Cramer considers these three companies giant black holes, and they must be filled.
No. 4 The dollar must stabilize and stop strengthening. While the euro has been growing stronger versus the dollar, emerging markets have been a source of pain.
No. 5 China has to break out of its funk. That means actual industrial production must rise.
No. 6 Energy has to stabilize. This will take the pressure from the high-yield bond market, which is being crushed by refinancing from many energy companies.
No. 7 As earnings are reported next month, investors must analyze whether the estimates are too high. If they are going to be cut, then stocks will fall.
Read more from Mad Money with Jim Cramer
Cramer Remix: This could push oil even higher Cramer: Why Exxon is ready to bounce Cramer: We are getting closer to a bottom
When all of these issues are put together, it is clear why the market is in bear territory but there could be light at the end of the tunnel. Unfortunately, Cramer thinks many more stocks will need to be eaten by the bear before the market gets there.
"I can't be as bearish as I was up higher, but I can't be that bullish until some of these seven pillars of weakness get shored up," Cramer said. (Tweet this)
They will clear up — it just won't happen overnight, although Wednesday brought a nice glimpse of what things will look like when the bear market is over.
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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a937e8cdbc7e6567dc355adcd8e94d75 | https://www.cnbc.com/2015/09/30/cramer-tesla-in-enviable-situation.html | Cramer: Tesla in ‘enviable situation’ | Cramer: Tesla in ‘enviable situation’
Tesla Motors' bears are in trouble after the company's new vehicle launch, CNBC's Jim Cramer said Wednesday.
"This is an enviable situation. [CEO Elon Musk has] got younger people, millennials, wanting this car," Cramer said on "Squawk on the Street."
The electric carmaker said Tuesday it has delivered the first of its Model X SUVs, which have a starting price of over $130,000. Musk also said the company had received about 25,000 pre-orders for the vehicle.
Titans take aim at Tesla
"The price point is more than aspirational, but if he's got that backlog, the shorts are going to have to battle with the master of stock management and that is Elon Musk," Cramer said.
Tesla shares were up slightly Wednesday morning.
DISCLOSURE: Cramer's trust did not own TSLA when this article was published.
Disclaimer
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f8f2085cd92d7d2942bb5f7b71887a74 | https://www.cnbc.com/2015/09/30/cramer-the-culprit-behind-3rd-quarter-destruction.html | VIDEO5:0305:03Cramer: The culprit behind 3rd quarter destruction Mad Money with Jim Cramer
With September coming to a close and the third quarter ending, Jim Cramer decided to figure out what was really behind the horrendous market decline.
What if commodities crashed and none of the producers blinked?
That is pretty much what happened this quarter. Many major commodities slumped double digits, with oil's 25 percent decline leading the way. Yet there were almost no supply cuts.
"That supply demand imbalance is at the heart of what went wrong in the third quarter, even as it should have been what went right!" the "Mad Money" host said. (Tweet this)
Many investors wanted to focus on the Federal Reserve as the driving force behind stocks, but Cramer disagreed. There is certainly no doubt that the Fed played a major role, but the real culprit behind the destruction was the commodity market.
That supply demand imbalance is at the heart of what went wrong in the third quarterJim Cramer
Rodrigo Garrido | Reuters
Or more specifically, the spillover problems of commodity plays into the equity market and the complete lack of common sense shown by almost every major producer.
When Cramer researched the commodity decline, he found that it was the decisions made by these producers during the Great Recession, seven years ago, that came back to haunt them.
The first takeaway from the Great Recession was that the downturn was worse than anyone thought it would be and there were severe ramifications, such as low interest rates to produce slower than expected growth.
The second takeaway was that many thought the United States would be brought down by slow growth forever, while China would continue to rise and pick up the slack. At that moment, many companies decided to de-emphasize the U.S. and focus on China.
Read more from Mad Money with Jim Cramer
Cramer Remix: This could push oil even higher Cramer: Why Exxon is ready to bounce Cramer: We are getting closer to a bottom
However, China's demand for commodities has pretty much fallen off of a cliff. But none of the major companies really trimmed production. Resource companies such as Petrobras, Chesapeake and Glencore are all ridiculously strapped. Yet no one has blinked on supply, so the glut continues to exist.
"That, not the Fed is behind much of this last rout and it hasn't ended because there has been little rationality and a lot of hope that China will come back," Cramer said.
This is exactly the reason why Cramer's two largest worries right now are Petrobras and Glencore—the two biggest offenders.
So, as the quarter comes to a close, Cramer reminded investors that the decisions made years ago by commodity production companies to accommodate Chinese demand are the real issue. Not the Fed tightening, which will ultimately only make things tougher.
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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ccffb64a74e0695a7e291477a6fd0167 | https://www.cnbc.com/2015/09/30/cramer-the-fang-is-back-baby.html | VIDEO10:4210:42Cramer: The FANG is back, baby!Mad Money with Jim Cramer
Even in a bear market like this one, Jim Cramer wants investors to be thinking about how to assemble a portfolio that will bounce back quickly when the smoke clears.
That is why he continued his weekly series of fantasy football stocks, because drafting a great fantasy team is a lot like picking terrific stocks. If investors even gave the same amount of energy to stocks as they do towards fantasy football, they will be a much better investor.
Cramer started by picking receivers, both tight ends and wide receivers. Those are the positions that can put tons of points on the board. So that means in stock market terms, the stocks must be high quality momentum names with super-charged growth rates to bring tremendous potential upside to a portfolio.
That means the members of Cramer's FANG group are back, baby. FANG is his acronym for Facebook, Amazon, Netflix and Google. After the selloff the market had this quarter, many of these names were hit hard.
"They can now be bought at significant discounts to where they were trading just a few weeks ago, although there's no guarantee they're done going down," the "Mad Money" host said.
Desperate shareholders dumped these stocks fast during the selloff, but at a certain point, Cramer said these growth stocks will become so attractive that investors will want to buy them back gradually.
However, Cramer warned that these are exactly the kind of stocks that a troubled hedge fund will sell in order to raise money. That could translate to many more opportunities ahead to buy them at lower prices.
Read more from Mad Money with Jim Cramer
Cramer Remix: This could push oil even higher Cramer: Why Exxon is ready to bounce Cramer: We are getting closer to a bottom
Cramer considers Netflix to be the most speculative of the group because of its high valuation, even though that has not stopped the stock from going higher in the past. Even after the recent selloff, Netflix is still up more than 100 percent for the year, which makes it the riskiest name in FANG.
So if Cramer were to select the stock equivalents of his top wide receivers such as Julio Jones, A.J. Green and rookie Amari Cooper, along with tight end Jimmy Graham—he's going with FANG. Facebook is the most defensive, and Netflix is most risky.
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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4b3fd129b16a8b4588c5a583dd6ac57b | https://www.cnbc.com/2015/09/30/derivative-trade-buy-intel-on-jobs-report.html | Derivative trade: Buy Intel on jobs report? | Derivative trade: Buy Intel on jobs report?
An Intel waferSource: Intel
CNBC "Halftime Report" trader Jim Lebenthal is buying a beaten-down semiconductor stock on the thesis of improving corporate spending and employment numbers.
The CEO of Lebenthal Asset Management on Wednesday purchased shares of Intel for his model portfolio. It's a stock that's down 17 percent this year.
Here's what Lebenthal sees and why he thinks the stock can rally.
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7bc6d11875c95fddd4a1abf70085715b | https://www.cnbc.com/2015/09/30/dollar-rangebound-ahead-of-china-surveys-us-jobs-report.html | Dollar drifts lower on mixed data ahead of US payrolls data | Dollar drifts lower on mixed data ahead of US payrolls data
Getty Images
The dollar drifted lower on Thursday as traders puzzled over data sending contrary messages about the U.S. economy and prospects for a 2015 interest rate hike by the Federal Reserve.
A day before September's potentially market-rattling U.S. employment data, separate reports showed growth at U.S. factories slowed in September while weekly jobless claims pointed to a tightening labor market.
The data could complicate the Fed's plans to raise rates, a key attraction of the dollar for yield-hungry investors.
"The (Institute for Supply Management report on factories) was a little less than consensus, edging closer to that 50 level that marks expansion from contraction," said Omer Esiner, chief market analyst at Commonwealth Foreign Exchange. "Importantly we saw a downturn in the employment component of the ISM."
VIDEO0:3100:31Rare silver dollar goes up for bid
The dipped after the ISM report and was last off 0.23 percent, above its low of the day, and within a tight trading range likely to continue until Friday's employment data are published.
"Job growth near or north of forecasts of 203,000 for September could see the dollar test the upper limits of its range," said Joe Manimbo, senior market analyst at Western Union Business Solutions in Washington. "Outsized gains could be a thing of the past since the Fed has signaled a go-slow approach to lifting rates from basically zero."
The euro was up 0.16 percent against the dollar at $1.1190 while the dollar was buying 119.90 yen, reflecting a decline of about 0.01 percent from late U.S. trading.
Read More
The dollar was up 0.33 against the Swiss franc at 0.9773 .
The safe-harbor yen, Swiss franc and low-yielding euro were pressured by global stock markets rallying after their worst quarterly performance in four years.
Economists expect Friday's U.S. nonfarm payrolls report to show that employers added 203,000 jobs in September, according to a Reuters poll.
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7ad99dab959be135c5bdddd4cb9d8241 | https://www.cnbc.com/2015/09/30/early-movers-rl-chk-play-cuda-cost-lmt-jpm-more.html | Early movers: RL, CHK, PLAY, CUDA, COST, LMT, JPM & more | Early movers: RL, CHK, PLAY, CUDA, COST, LMT, JPM & more
Traders work on the floor of the New York Stock Exchange.Lucas Jackson | Reuters
Check out which companies are making headlines before the bell:
Ralph Lauren — Founder Ralph Lauren will step aside as chief executive officer, though he'll remain as executive chairman and chief creative officer. He'll be replaced by Stefan Larsson, the president of Gap's Old Navy division. UBS upgraded Lauren stock to "buy" from "neutral" following the move. Gap shares were downgraded to "underperform" from "neutral" at Mizuho Securities following the announcement on concerns about the impact of Larsson's departure.
Chesapeake Energy — The energy producer will cut its workforce by 15 percent, as it tries to deal with falling prices for oil and natural gas. It will take charges of about $55.5 million as a result.
Dave & Buster's — The restaurant chain announced a secondary offering of 6 million shares by certain stockholders, who will receive all the proceeds from these sales.
Barracuda Networks — Barracuda reported quarterly sales that fell below Street forecasts, and also gave weaker than expected current quarter earnings and revenue guidance. The security and storage company pointed a slowing storage market as one problematic factor, and said it is taking steps to deal with that slowdown.
Rio Tinto — The mining company sold its 40 percent stake in an Australian coal mine for $606 million, in its latest disposal of Australian coal assets.
Costco — The warehouse retailer reported quarterly profit of $1.73 per share for its latest quarter, 7 cents above estimates, but revenue was below forecasts on lower fuel prices and a stronger U.S. dollar.
Lockheed Martin, Boeing – The two companies saw their United Launch Alliance joint venture win a $882 million contract to continue launching satellites for the Air Force.
JPMorgan Chase — JPM will have to face a class action suit in the U.S. related to the "London Whale" case, which saw the bank take a $6.2 billion loss. That follows a court ruling in New York late Tuesday.
Ford Motor — The automaker received a five-day strike notice at a key plant for its popular F-150 pickup truck. The strike authorization comes amid disagreements over a local labor contract.
AT&T — AT&T will change the way its DirecTV unit uses to count commercial subscribers, which will trim the official subscriber count by 918,600. The company said revenue and cash flow won't be affected by the change.
TiVo — TiVo introduced a new DVR called the "Bolt" which allows users one-button commercial skipping and other features.
Advance Auto Parts — Advanced Auto is a target of activist hedge fund Starboard Value, according to The Wall Street Journal, which said Starboard will announce today that it has taken a 3.7 percent stake in the auto parts seller.
Apple — Apple has launched its Apple Music service in China as of today.
Brown-Forman — The spirits maker is exploring the sale of its Southern Comfort and Chambord brands, according to a Reuters report.
ComScore — The data analytics company bought viewership rating provider Rentrak for about $771 million in stock.
Amazon.com — Amazon is testing a service called Amazon Flex, a Uber-like service for package deliveries. Drivers will be paid up to $25 per hour to deliver Amazon orders using their own cars.
Target – The retailer will match online prices with those of online competitors, including retail giants Amazon and Wal-Mart.
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025f5d00c624ae0675b96a15246283eb | https://www.cnbc.com/2015/09/30/euro-zone-cpi-.html | Negative again: Euro zone inflation dips | Negative again: Euro zone inflation dips
VIDEO0:2800:28European Central Bank feeling stimulus pressureEurope News
Inflation in the euro zone turned negative again in September, data on Wednesday showing, raising pressure on the Europe Central Bank to ramp up monetary stimulus.
The euro zone consumer price index (CPI) fell 0.1 percent in September from a year earlier, falling below zero for the first time since March – when the ECB launched its 1 trillion euro ($1.12 trillion) asset-purchase program to fuel inflation and growth.
The fall in the CPI compares with a rise of 0.1 percent in August and analyst expectations in a Reuters poll for a 0 percent reading.
Inflation remains well below the European Central Bank's target of close to but just below 2 percent.
And inflation expectations have fallen in recent months as oil prices fall and signs of a slowdown in China's economy grow.
Against this backdrop, talk of an extension to the ECB's asset-purchase program has grown in recent weeks.
Goldman Sachs said in a note earlier this month that the ECB was likely to continue the program through the end of next year and only end it in mid-2017. It is currently scheduled to end in September 2016.
Separate data showed unemployment in the euro zone at 11 percent in August.
Follow us on Twitter: @CNBCWorld
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2b972ed73eec01558c6343e9aebf9684 | https://www.cnbc.com/2015/09/30/european-markets.html | Europe ends sharply higher as supermarkets, Glencore soar | Europe ends sharply higher as supermarkets, Glencore soar
VIDEO0:4200:42Europe ends higher; supermarkets soar
European stocks finished sharply higher Wednesday as equity markets rallied globally at the end of a torrid month.
The pan-European STOXX 600 extended gains by the close, finishing up 2.4 percent. However, the index ended September down nearly 3 percent on the month.
London's FTSE 100 index ended up 2.6 percent, bolstered by supermarkets and London-listed miners.It was down nearly 3 percent on the month.
The German DAX rose 2.2 percent on the day, but ended September 5.8 percent lower than at the start of the month.
Following the same trend, the French CAC closed up around 2.6 percent on the day but 4.3 percent down on the month.
On Wednesday, Europe followed the positive lead set by Asian stocks, which mostly advanced, while U.S. stocks too jumped in an attempt to ease the pain of the worst quarter in four years.
Read More Bad quarter for stocks; dire one for commodities
Investors have had a tough time these last three months, with commodity prices sliding further, continued speculation about when the U.S. Federal Reserve will raise interest rates and intensifying concerns about the Chinese economy.
"It is against this backdrop that global equities have fallen sharply, and combined with the scandal surrounding Volkswagen, amid concerns that its peers could well get dragged into the whole imbroglio, investors are voting with their feet and reverting to cash and other safer havens," Michael Hewson, chief market analyst at CMC Markets, said in a note Wednesday.
Retail stocks led the pack on Wednesday in European trade.
Shares in Sainsbury's surged nearly 14 percent by the close, after the British supermarket chain said that its full year profit is expected to be ahead of market consensus. The announcement lifted other names in U.K. space, including Tesco and Morrisons, which both gained over 6 percent.
Shares in Glencore surged for a second consecutive day, closing around 14 percent higher on Wednesday after the London-listed miner said it had taken "proactive steps" to withstand commodity market conditions and had no solvency issues. This follows a rout in the stock that meant it closed September down 38 percent on the month.
On Wednesday, Glencore's rally boosted other names in basic resources. Rio Tinto got a 2.8 percent bump, while BHP Billiton closed 2.7 percent up.
Oil companies also ouperformed, with SBM Offshore closing up 4 percent and Statoil up 3.2 percent.
Auto names were significantly higher after China said it has halved sales tax on small cars, a move likely to benefit the likes of embattled German carmaker Volkswagen.
On Wednesday, Volkswagen UK said around 1.2 million vehicles in Britain were affected by the emissions software scandal. In addition, VW-owned Porsche named Oliver Blume as its new chairman of the executive board. Shares in Volkswagen closed 2.7 percent up.
Other carmakers also got a boost, with Peugeot Citroen and Germany's BMW closing up 6.4 and 3.7 percent, respectively.
VIDEO0:4100:41Sainsbury’s can’t fight food prices: Fund ManagerSquawk Box Europe
On the data front, the U.K. Office for National Statistics revised down its estimate for gross domestic product (GDP) growth in the second quarter to 2.4 percent year-on-year from an earlier reading of 2.6 percent. On the quarter, second quarter GDP grew 0.7 percent.
Euro zone prices fell year-on-year in September for the first time in six months, according to the European Union's statistics office Eurostat. Consumer prices in the single-currency bloc fell 0.1 percent this month, highlighting the continued risk of deflation. Separately, jobs data released by Eurostat showed August's unemployment rate for the euro zone was 11 percent.
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748f090f7dfd364f8046f5c4e56884f0 | https://www.cnbc.com/2015/09/30/fiat-chrysler-under-reported-deaths-and-injuries-us-safety-regulator-says.html | Fiat Chrysler under-reported deaths and injuries | Fiat Chrysler under-reported deaths and injuries
Justin Sullivan | Getty Images
Fiat Chrysler under-reported a "significant" amount of deaths, injuries and legal claims that it was obliged to reveal to regulators, the US's car safety watchdog said.
The National Highway Traffic Safety Administration made the announcement after Fiat Chrysler said it had discovered "deficiencies" in its system for reporting faults under the Tread Act, which governs what information carmakers have to give their regulators, while investigating discrepancies in figures.
The NHTSA regards early warning reporting as vital to its efforts to sift through the 33,000 annual deaths on the US roads to identify which are caused by serious design flaws with vehicles.
The news comes as NHTSA steps up its enforcement of the safety rules surrounding vehicle faults following controversy over General Motors' botched recall of vehicles fitted with faulty ignition switches.
Fiat Chrysler in particular has suffered a series of run-ins with the regulator, which took the unusual step of holding a public hearing in July to investigate the company's handling of a series of potentially dangerous faults.
The company — formed when Italy's Fiat took over America's Chrysler following its 2009 government-managed bankruptcy — also engaged in a protracted dispute with the regulator in 2013 over whether to recall 2.7 million older Jeep models that the regulator said were prone to exploding in rear-end collisions.
VIDEO1:5301:53UAW strike deadline loomsSquawk Box
Under the Tread Act, manufacturers are required to report to NHTSA within five days of the end of each month any claims that their vehicles have been responsible for crashes resulting in deaths or injuries of any severity.
The NHTSA said that it had warned Fiat Chrysler in July that it had found an apparent discrepancy in its early warning data.
More from the Financial Times:
Fiat Chrysler reaches UAW labour deal Union focuses on pay in carmaker talks Fiat Chrysler gains as SUV sales boom
"FCA [Fiat Chrysler] has informed NHTSA that in investigating that discrepancy, it has found significant under-reported notices and claims of deaths, injuries and other information required as part of the early warning reporting system," Mark Rosekind, NHTSA's administrator, said.
Preliminary information suggested that the under-reporting was the result of "a number of problems" with Fiat Chrysler's systems for gathering and reporting early warning reporting data, Mr Rosekind added. "This represents a significant failure to meet a manufacturer's safety responsibilities."
Early warning reporting data will often include large numbers of incidents that, on closer examination, turn out not to reflect a vehicle fault or not to represent a systemic problem requiring a vehicle recall. However, at July's hearing, the NHTSA raised concerns about possible under-reporting of problems with vehicle transmissions and tyre faults at high speed.
Read MoreUAW, Fiat Chrysler reach tentative US labor pact
Fiat Chrysler has signed a consent agreement with the NHTSA over the earlier safety concerns that commits the company to closer monitoring of safety issues.
The company said that, because of "heightened scrutiny" under that order, it had identified "deficiencies" in its reporting.
"FCA US promptly notified NHTSA of these issues, and committed to a thorough investigation, to be followed by complete remediation," the company said.
Karl Brauer, an analyst for Kelley Blue Book, a car information site, said the announcement reflected the greater scrutiny facing automakers over their safety records. The NHTSA has considerably lifted its safety enforcement after it failed for years to detect problems with ignition switches in a series of General Motors compact cars linked to at least 124 deaths.
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69103aa0798ffd689d5f787d6896a13c | https://www.cnbc.com/2015/09/30/ford-issues-five-new-recalls-covering-about-380000-vehicles.html | Ford recalls 342K autos twice for axle problems | Ford recalls 342K autos twice for axle problems
George Waldman | Bloomberg News | Getty Images
Ford Motor is recalling some older Windstar minivans to because a previous rear-axle recall repair might not work.
The recall covers about 342,000 vans from 1998 through 2003. The company says the Windstars were recalled previously due to axle cracks that could grow and lead to complete failure and a crash.
They're being recalled again because a reinforcement bracket from the first recall could have been installed incorrectly. The bracket was designed to mitigate problems if the axle failed. The company says it has reports of a small number of accidents but no injuries.
Dealers will inspect the vans, and if the brackets weren't installed right, replace the axles. If they were correctly installed, customers will be offered a discounted price for axle replacements.
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6e3011cdde7ecba0e98f31d32f5dfc74 | https://www.cnbc.com/2015/09/30/france-2016-budget-hollande-votes.html | France: Can Hollande win back voters with tax cuts? | France: Can Hollande win back voters with tax cuts?
France's left wing government has unveiled its budget for next year, offering household and business tax cuts, despite a weak economic backdrop and a rocky political future for the country's President Francois Hollande.
The Finance Ministry outlined a budget focused on cutting public spending and tax cuts for families and businesses for the euro zone's second-largest economy after Germany, setting out 16 billion euros ($17.7 billion) of measures to reduce spending.
It said that total government spending, among the highest in developed countries, would fall next year to 55.1 percent of economic output from an estimated 55.8 percent this year.
The ministry said it would use some of the gains from reduced public spending to cut taxes for families and businesses by 2 billion and 9 billion euros, respectively, Dow Jones news agency said.
Carl Court | Getty Images News | Getty Images
The government predicted earlier this month that, based on a growth rate of 1.5 percent in 2016, the public deficit would fall to 3.3 percent next year (from 3.8 percent this year) – still above the European Union's official deficit threshold of 3 percent. French Finance minister Michel Sapin said the deficit should fall below 3 percent in 2017.
Public debt was seen reaching a lower than expected 96.5 percent of the country's economy next year, up slightly from 96.3 percent this year but it would then gradually decrease, the finance ministry said.
The budget comes at a time of uncertain economic and political prospects.
The tax and spending cuts could prove crucial for the government and its record on the economy. Next year will also be the last full fiscal year before a presidential election in which Hollande could lose, if his low approval rating (at 23 percent, according to a September Ifop poll) are anything to go by.
Earlier this month, ratings agency Moody's downgraded France's government bond ratings from Aa1 to Aa2 due to what it called the "continuing weakness in France's medium-term growth outlook, which Moody's expects will extend through the remainder of this decade."
In addition, it said the downgrade was made with "the challenges that low growth, coupled with institutional and political constraints, poses for the material reduction in the government's high debt burden over the remainder of this decade" in mind.
Read More France heads off to court Iran business
France's latest gross domestic product (GDP) data for the second quarter of 2015 showed growth was flat, yet the 2016 budget is predicated on a growth rate of 1.5 percent next year. It foresees 1 percent growth in 2015.
Despite the forecast leap in growth, and skepticism shared privately among economists, France's public finance watchdog said on Wednesday that it saw the 2016 growth forecast as "achievable."
There may be optimism within France but analysts elsewhere remain cautious, stating that reforms designed to boost French growth – ranging from labor law modernization to more business-friendly policies -- would take time to have an effect.
"The starting point for the 2016 budget is favorable and the deficit will probably continue to fall next year, although fiscal sustainability is not secured yet," according to chief European economist at Morgan Stanley, Carmen Nuzzo.
"Market participants should focus on the spending details, which will test the government's resolve to implement structural reforms," she said in a note last week.
- CNBC's Stephane Pedrazzi contributed reporting to this story.
- By CNBC's Holly Ellyatt, follow her on Twitter @HollyEllyatt. Follow us on Twitter: @CNBCWorld
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ac78dbe5f0bfa9da27a31e283878b473 | https://www.cnbc.com/2015/09/30/global-stock-markets-set-for-worst-quarter-in-four-years.html | Global markets to log worst quarter since 2011 | Global markets to log worst quarter since 2011
An investor stands in front of an electronic board showing stock information in Fuyang, China.Reuters
Global stock markets are headed for their weakest quarterly performance in four years after a torrid summer that saw investor sentiment rocked by developments in the world's two largest economies.
A sustained collapse in commodity prices, China's stunning market rout followed by its shocking currency devaluation as well as fears of a Greek default and a September U.S. interest rate hike were some of the numerous factors that made the past three months a summer to remember (or forget) for investors.
"Global equities are closing in on their worst quarter since 2011, with a number of factors fueling fears in an already jittery market, including weak global growth, driven by deceleration in emerging markets, particularly China," Barclays analysts said in a Wednesday report.
Read MoreEmerging market ETFs suffered $19B in outflows this year
China's benchmark Shanghai Composite appeared to be one of the world's worst performers with a 25 percent loss, its weakest performance since 2008.
In comparison, the S&P 500, Dow Jones Industrial Average and were all headed for a 9 percent loss. In Europe, Germany's Dax was set for a 15 decline, 11 percent for the French CAC, 8 percent for Italy and 13 percent for the Ibex.
Indeed, much of the blame seems to be falling on weakness in emerging markets (EMs).
New data from the International Institute of Finance (IIF) on Wednesday showed EMs suffered their worst quarter since 2008 as global investors sold $40 billion of EM assets. During 2008, the height of the global financial crisis, emerging markets saw outflows to the tune of $105 billion, the IIF said.
"Dovish signals after the Fed's policy meeting [earlier this month] only provided a short-lived boost to EM portfolio flows, and daily data show renewed outflows in late September," the organization noted.
Asia-Pacific indices also logged their weakest quarterly performance since 2011, aggravated by a global stock rout in August, Bernard Aw, IG market strategist, told CNBC.
VIDEO2:5302:53Global growth concerns hit emerging marketsPower Lunch
Out of the region's 15 major stock markets, only one ended the third quarter in positive territory.
Sri Lanka's Colombo Stock Exchange posted a modest 0.5 percent bounce amid foreign buying and a more market-oriented currency. Earlier this month, Sri Lanka's central bank stopped quoting a reference rate for the local rupee, letting markets determine the rate instead. Political stability has also returned with the formation of a new unity government under President Maithripala Sirisena and Prime Minister Ranil Wickremesinghe following elections in August.
The region's weakest market after Shanghai was Hong Kong's Hang Seng Index, which ended the quarter 20 percent lower. Among other major losers, the Nikkei 225 and Indonesia's Jakarta Composite both declined 14 percent.
Read MoreHK stocks: Between a rock and a hard place
Many analysts expect a cloud of pessimism to loom over global equity markets for a while, warning that any short-term rallies will likely be temporary.
"With downside risks to commodities and worries about debt-laden emerging markets being buffeted by U.S. rate hikes persisting, dead cat bounces could disappoint for some time!" said Mizuho senior economist Vishnu Varathan, alluding to a market term for a short-lived increase in the price of a declining asset.
Barclays recommends overweight positions in Japanese and European equities since valuations in the U.S. are relatively less attractive.
The Nikkei index is currently trading at a price to earnings (P/E) ratio of 16.92, compared with 18.14 for the S&P 500, according to Reuters data. The corresponding figure for the Euro Stoxx 600 index is 15.36. A higher P/E ratio suggests that stocks are more expensive relative to earnings.
For the October-December period, IG's Aw predicts Japanese equities could be among the best performers within Asia, citing solid corporate earnings thanks to a weaker yen and valuations that are at four-year lows.
"In addition, the Nikkei may be bolstered by fresh speculations of more Bank of Japan easing, especially if inflation readings deteriorate considerably in the coming months."
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822e17b3ce783a1e9df129b36ab118ae | https://www.cnbc.com/2015/09/30/globe-newswire-gee-launches-airpro-across-first-air-fleet.html | GEE Launches AIRPRO Across First Air Fleet | GEE Launches AIRPRO Across First Air Fleet
LOS ANGELES, Sept. 30, 2015 (GLOBE NEWSWIRE) -- Global Eagle Entertainment Inc. ("GEE") (Nasdaq:ENT), a worldwide provider of aircraft connectivity systems, operations solutions and media content to the travel industry, today announced the launch of AIRPRO on the heels of a successful trial with Canadian airline First Air. AIRPRO is a fully automated inflight operations workflow management solution that enables airlines and their flight crews to digitize their entire work flow.
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http://www.geemedia.com/products/operations-solutions/airpro
About First Air
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13c74e6967a1d980051d66e8c2586d36 | https://www.cnbc.com/2015/09/30/globe-newswire-jury-in-federal-court-in-california-finds-against-angioscores-patent-infringement-claims.html | Jury in Federal Court in California Finds Against AngioScore's Patent Infringement Claims | Jury in Federal Court in California Finds Against AngioScore's Patent Infringement Claims
COLORADO SPRINGS, Colo., Sept. 30, 2015 (GLOBE NEWSWIRE) -- The Spectranetics Corporation (NASDAQ:SPNC) today announced that a jury in the U.S. District Court for the Northern District of California has found against its wholly-owned subsidiary, AngioScore Inc., the plaintiff in a lawsuit seeking damages and other relief for patent infringement against defendants Eitan Konstantino, TriReme Medical, LLC, Quattro Vascular Pte Ltd. and QT Vascular Ltd. related to defendants' Chocolate PTA balloon catheter. The jury also found that certain claims of the asserted patent are invalid.
The patent verdict has no impact on the Court's findings or award of damages in connection with the breach of fiduciary duty claims or the ability to recover advanced fees and costs. The patent infringement claims are part of the lawsuit in which the Court previously found that Konstantino, a former board member of AngioScore and founder of TriReme Medical, LLC, and other defendants, breached his fiduciary duties to AngioScore, that TriReme and Quattro aided and abetted that breach, and that QT Vascular is liable for the acts of TriReme and Quattro. In that portion of the case, the Court awarded AngioScore $20.034 million against all defendants plus disgorgement from Konstantino of all benefits he accrued from his breach of fiduciary duties, including amounts he received for assigning his intellectual property rights to the Chocolate balloon, a royalty on past and future sales of the Chocolate balloon, and all of his shares and options in QT Vascular.
"Although we are disappointed by the jury's verdict, we are pleased this paves the way for entry of the judgment against the defendants in the breach of fiduciary duty portion of this case. This verdict has no bearing on our leadership position in the scoring balloon market, our commercial execution or future pipeline," said Scott Drake, President and Chief Executive Officer of Spectranetics.
Spectranetics is considering its options with respect to the jury's verdict on the patent infringement claims.
Spectranetics acquired AngioScore in June 2014.
About Spectranetics
SPNC develops, manufactures, markets and distributes medical devices used in minimally invasive procedures within the cardiovascular system. The Company's products are sold in over 65 countries and are used to treat arterial blockages in the heart and legs and in the removal of pacemaker and defibrillator leads.
The Company's Vascular Intervention (VI) products include a range of laser catheters for ablation of blockages in arteries above and below the knee, the AngioSculpt® scoring balloon used in both peripheral and coronary procedures and Stellarex™ drug-coated balloon peripheral angioplasty platform, which received European CE mark approval in December 2014. The Company also markets support catheters to facilitate crossing of peripheral and coronary arterial blockages, and retrograde access and guidewire retrieval devices used in the treatment of peripheral arterial blockages, including chronic total occlusions. The Company markets aspiration and cardiac laser catheters to treat blockages in the heart.
The Lead Management (LM) product line includes excimer laser sheaths, dilator sheaths, mechanical sheaths and accessories for the removal of pacemaker and defibrillator cardiac leads.
For more information, visit www.spectranetics.com.
CONTACT: COMPANY CONTACT The Spectranetics Corporation Guy Childs (719) 633-8333 INVESTOR CONTACT Westwicke Partners Lynn Pieper (415) 202-5678 lynn.pieper@westwicke.comSource:The Spectranetics Corporation
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055b052e4a0005ee38ff1ea997d633cf | https://www.cnbc.com/2015/09/30/gold-struggles-near-2-week-low-after-strong-us-data.html | Gold rebounds from 2-week low ahead of US payrolls data | Gold rebounds from 2-week low ahead of US payrolls data
Getty Images
Gold recovered from two-week lows on Thursday as the dollar lost ground to the euro, but uncertainty ahead of Friday's U.S. nonfarm payroll figures held prices in a narrow range.
The data is being watched for clues on whether the Federal Reserve will raise interest rates this year. Expectations for a strong report rose after an upbeat reading of U.S. private employment on Wednesday, pressuring gold.
The metal later rebounded, however, as data showing the pace of growth in the U.S. manufacturing sector slowed in September pushed the dollar lower versus the euro.
was flat around $1,114 an ounce, after dropping to $1,110.75, its lowest since Sept. 16. U.S. gold futures for December delivery settled down $1.5 an ounce at $1,113.70.
VIDEO0:5300:53These three homemade robots cost more than you thinkTech
"All eyes are on the upcoming U.S. NFP data and this will set the tone for trading," Naeem Aslam, chief market analyst at Ava Trade, said.
"The ISM manufacturing data has ... added a negative tone for the Fed rate hike decision but the ultimate test will be tomorrow, and if we have a strong reading it could push the gold price lower."
The Fed has tied its schedule for raising rates to the strength of U.S. data, particularly jobs.
Expectations the Fed is set to raise rates this year for the first time in nearly a decade have pressured gold, as it would potentially lift the opportunity cost of holding non-yielding bullion while boosting the dollar.
Charts were not looking good for gold either.
Read MoreGold suffers biggest quarterly loss in a year on Fed outlook
"Gold (completed) its fourth consecutive down day. Lower lows and lower highs over those days make for a short-term bearish trend," technical analysts at ScotiaMocatta wrote. "We will run into technical support at $1,100 from September 11. Moving-average resistance now comes in near $1,130."
Platinum was up 1 percent at $913, while palladium outperformed to climb 4.1 percent to $676.97 an ounce. Its rally accelerated when the metal broke through its previous high for the week at $669 an ounce.
Platinum and palladium are chiefly used in autocatalysts. Ford Motor said on Thursday its U.S. sales rose 23 percent in September, while General Motors said its total sales rose 12 percent in the same month.
Silver was up 1 percent at $14.64 an ounce.
The global silver coin market is in the grips of an unprecedented supply squeeze, forcing some mints to ration sales and step up overtime while sending U.S. buyers racing abroad to fulfil a sudden surge in demand.
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14388625699c07a0344e8d5ad1d24aa3 | https://www.cnbc.com/2015/09/30/gops-christie-on-low-polls-i-need-strong-iowa-nh.html | GOP's Christie on low polls: I need strong Iowa, NH | GOP's Christie on low polls: I need strong Iowa, NH
VIDEO3:3603:36Gov. Christie: Don't really care about pollsSquawk Box
VIDEO0:5500:55Clinton's last chance for free public housing: Chris ChristieSquawk Box
VIDEO2:3302:33Gov. Christie: Americans angry with CongressSquawk Box
Republican presidential candidate Chris Christie, struggling in national polls, said Wednesday he's not worried yet because the campaign has only just begun. "If election day were October 1, I'd be worried," he added.
Using a football metaphor, the New Jersey governor said, "We finished Week 3 of the NFL. We have to go through the rest of the regular season, all the playoffs, and expect for the Super Bowl, before anybody votes."
He told CNBC's "Squawk Box" he needs a strong showing in the Iowa caucus and the New Hampshire primary, the first two contests of the nominating process, to feel he has a shot.
In the RealClear Politics polling aggregator, Christie was in eighth place in the latest period with 3.4 percent support.
That's a far cry from billionaire Donald Trump's 23.4 percent, retired neurosurgeon Ben Carson's 17 percent, and former Hewlett-Packard CEO Carly Fiorina's 11.6 percent.
Sen. Marco Rubio of Florida and ex-Florida Gov. Jeb Bush were neck and neck at 9.6 percent and 9.2 percent, respectively.
Sen. Ted Cruz of Texas was at 6.2 percent, while Ohio Gov. John Kasich was at 3.6 percent.
Sen. Rand Paul of Kentucky at 2.4 percent was the only other candidate with more than 1 percent support.
Christie said he's most surprised by Carson's surge in the polls, because "he's a much more low-key presence," but he's "obviously very bright."
Trump's frontrunner status at this point makes sense since he's such a big star, Christie said. "Let's just relax" things take time to shake out, he urged. "Donald Trump's only been in the race for what, 90 days. ... That would be a massive implosion."
As for Fiorina, Christie said her Hewlett-Packard career and her time at Lucent were mixed at best. "I don't necessarily know how that qualifies [her] to be president of the United States. But we'll see."
Christie said his fundraising efforts have been boosted by Wisconsin Gov. Scott Walker's recent exit from the GOP race. Any narrowing of the crowded field is a good thing for candidates to get their messages out, he added.
The next time voters hear from the leading GOP candidates on the national debate stage will be at the CNBC-sponsored event on Oct. 28.
As for last week's shocking resignation announcement by House Speaker John Boehner, Christie said it shows how frustrated Americans are with the do-nothing Congress.
Commenting on the Democratic presidential race, the New Jersey governor said the Clintons play for keeps.
Hillary Clinton's run is their "last chance to get free public housing again" in the White House, he said. "And they're going to work as hard as they can to get it."
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a951c4c35b79c9737ae9e99f25d12c98 | https://www.cnbc.com/2015/09/30/hedge-fund-hopes-of-li-ka-shing-raising-power-assets-offer-may-be-dashed.html | Capital Group may foil hopes of tycoon Li sweetening $11.6B deal | Capital Group may foil hopes of tycoon Li sweetening $11.6B deal
Billionaire Li Ka-shing, pictured in 2015.Getty Images
Hedge funds are betting Asia's richest man Li Ka-shing will sweeten his proposed $11.6 billion buyout of Hong Kong's Power Assets Holdings, but their hopes may be dashed by top independent shareholder Capital Group whose stance on the matter is a mystery.
Li's Cheung Kong Infrastructure Holdings (CKI) offered this month to buy the 61 percent it does not already own of Power Assets in an all-stock transaction that set a nearly equal value on the two firms. CKI also proposed a $2.5 billion special dividend if the deal goes through.
Power Assets shareholders will vote on the deal, although no voting date has been fixed yet. Some analysts and investors say the offer undervalues the utility by 25 percent when compared with a five year average at which the two stocks have traded.
VIDEO1:4501:45This part of Asia is still vulnerable to capital outflowsSquawk Box Asia
"We think the offer is not attractive," one Hong Kong fund manager who owns a small stake in Power Assets said. "It all depends on the view Capital takes."
Short positions in CKI shares surged after the deal was announced in early September, suggesting investors are expecting the firm to pay to sweeten the deal. They believe Li will pay more to ensure the success of the merger vote as under Hong Kong's takeover law just 10 percent of the target company's independent shareholders can vote down a deal.
But U.S. money manager Capital Group, which as per latest filings owns 7.2 percent of Power Assets, may not play along, because the move would be detrimental to its interests.
That's because Capital is also the biggest independent shareholder in CKI with an 8 percent stake. Within Capital Group, American Funds' EuroPacific Growth Fund and Capital Income Builder hold the biggest chunk of the two companies, meaning there's no incentive for them to support a higher CKI bid for Power Assets.
Read MoreIn the hedge fund world, bigger is still better
"It's a value-neutral deal for Capital and hard for them to justify a fight. I think people relying on Capital's support will be in for a shock," said a Hong Kong-based hedge fund manager who declined to say whether he has a position in either of the two companies.
Mutual funds of Capital, which manages more than $1.4 trillion, and other large asset managers also tend to side with management, preferring to sell out rather than fight if they are not in agreement. Capital's funds sided with Li, according to the Wall Street Journal, in a vote in May which had sought to allow Power Assets to buy CKI bonds, a resolution that was defeated.
A London-based spokesman for Capital declined to comment. CKI and Power Assets did not respond to requests for comment.
CKI stocks on loan, an indicator of how heavily the stock is being shorted, surged to 61 percent on Sept. 17, the highest level in at least three years, from just 4 percent on Sept. 9, which compared with the Hong Kong market average of about 20 percent, data from Markit showed. Borrowed shares have declined to 47.4 percent on Sept. 24, the data showed.
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881aa63db6c3560fccc395542b7b94ea | https://www.cnbc.com/2015/09/30/how-3-emerging-markets-pros-avoided-worst-of-collapse.html | How 3 emerging markets pros avoided worst of collapse | How 3 emerging markets pros avoided worst of collapse
Few investors are eager to jump into emerging markets — for good reason. Most emerging markets stocks and funds have been clobbered. But that makes it all the more noteworthy for the emerging markets managers who avoided the collapse.
Here are investing tips from three of the emerging markets fund managers who have easily beaten the benchmark over the past year and rank among the elite emerging markets funds tracked by Morningstar. Their advice turns out to be advice that's applicable to all situations, especially in hot trades, where everyone is chasing the same performance.
The stock movements inside the Shanghai Stock Exchange in the Lujiazui Financial district of Shanghai on September 22, 2015.Johannes Eislele | AFP | Getty Images
Everyone knows the good and the bad of getting into the emerging markets. "The tap is either all the way on or all the way off — all the time," said Andrew Foster, portfolio manager of the Seafarer Overseas Growth and Income Fund (SIGIX). He insulates against this risk by focusing on sustainable revenue — which often means slower growers — as opposed to companies with the highest immediate growth potential.
The fund's top five holdings include MSCI Emerging Markets Index heavyweights like Samsung Electronics and Infosys, but also shows how it separates itself from the index, starting at the top. A top five holding with a low rank in the MSCI EM Index is Bank Pekao SA (135th). The fund also has two top five holdings not in the MSCI EM Index: Hang Lung Properties and Singapore Telecommunications.
Bill Rocco, a senior analyst at Morningstar who covers the emerging markets, said growth at the expense of quality can be the by-product of a manager with too aggressive a stock-picking posture.
Foster looks for companies that can produce steadily growing revenue over the next five to seven years — sometimes longer — at a rate of about 7 percent to 15 percent. "That's the sweet spot," he said. And there are plenty of those stocks among the 800+ in the MSCI Emerging Markets Index, which had a median revenue growth of 8.12 percent for the last fiscal year, according to Morningstar data. The median price-to-earnings ratio in the MSCI EM Index is 15.12.
Seafarer year-to-date performance: (-7.49 percent) Percentage rank in Morningstar category: 3 (among 857 funds) MSCI Emerging Markets Index: (-19 percent)
This should be obvious: Most of the focus in the emerging markets surrounded China in recent years. But not enough investors learned that obvious lesson until too late, said Zach Jonson, senior vice president of investment management at ICON Advisers. "That myopic view got a lot of people, I think, in trouble," Jonson said.
This fund's top five holdings include MSCI Emerging Markets Index heavyweights like Samsung and Tencent, but also two stocks with a low rank in the MSCI EM Index: ICICI Bank (165th) and Airports of Thailand (256th).
The ICON Emerging Markets Fund (ICARX), which is managed by Mick Kuehn, focuses on a number of other countries, specifically India and South Korea. "I think being overweight in those two countries, while being underweight in China, has really allowed us to avoid a lot of the carnage," Jonson said.
ICON year-to-date performance: (-5.72 percent) Percentage rank in Morningstar category: 2 (of 857 funds) MSCI Emerging Markets Index: (-19 percent)
The well-kept secrets of Brown Advisory The best emerging markets manager this year — in fact, the only one among emerging markets mutual funds tracked by Morningstar to manage positive performance — is Brown Advisory Emerging Markets Small Cap Fund (BAFNX), up 3.38 percent through Sept. 28, versus an MSCI emerging markets small-cap benchmark down 11 percent. The company declined to comment on its performance — guess it doesn't want to give away any of its performance edge. But you can look at its top 5 holdings and learn a valuable lesson — slavish devotion to a big index like the MSCI isn't going to cut it, and if your manager is merely a closet indexer, their fund won't be worth the cost. Also, a move away from the large-cap names in the space has benefited Brown Advisory and JOHCM. Take a look at the top five holdings in the Brown Advisory Emerging Markets Small Cap fund, according to Morningstar. Two of the five aren't even in the broad MSCI EM Index, and the three that are in the index are pretty far down the list, by weighting, among the 835 stocks represented in the index. Top 5 holdings with low rank in MSCI EM Index: China Taiping Insurance Holdings Co (153rd); China Power International (394th); Hyundai Department Store Co Ltd (470th) Top 5 holdings not in MSCI EM Index: Cuckoo Electronics; Korea Kolmar
Stephen Lew, Emery Brewer and Ivo Kovachev, co-managers of J O Hambro Capital Management's JOHCM Emerging Markets Small Mid Cap Equity Fund (JOMIX), focus on buying stocks that are not largely covered by analysts.
"These companies are usually, if you find them early, rather inexpensive," Brewer said.
This fund's top five holdings include two stocks with a very low rank in the MSCI EM Index: China Everbright Ltd (415th) and Hanmi Pharm (495), and the three other top five holdings are not in the MSCI EM Index: Scb P-Note (Aisino), OCI Materials and Guotai Junan International Holdings.
Starting with small positions also helps to insulate against risk, Kovachev said. The fund begins to increase the weights in the portfolio as time goes on, and their confidence level in individual stocks strengthens.
JOHCM year-to-date performance: (-5.39 percent) Percentage rank in Morningstar category: 1 (of 857 funds) MSCI Emerging Markets Index: (-19 percent)
Although these strategies offer insight into investing in emerging markets — and investing in general — Rocco said it's important to remember that the same relatively conservative strategy that works well in a downtrend won't provide the same boost when the emerging markets go on an extended tear again.
—By Kate Drew, special to CNBC.com
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48255a67a711a78bfc595799bf9bab4c | https://www.cnbc.com/2015/09/30/i-want-a-government-shutdown-reagan-official.html | I want a government shutdown: Reagan official | I want a government shutdown: Reagan official
VIDEO4:0704:07Shutdown our ticket off 'fiscal Titanic': StockmanClosing Bell
A government shutdown would force Congress to address fiscal issues before they reach unmanageable levels, a former Reagan administration official contended Wednesday.
"We're on the fiscal Titanic and we're going to hit something hard and immovable one of these days," said David Stockman, director of the Office of Management and Budget from 1981 to 1985, in a CNBC "Closing Bell" interview.
David StockmanDouglas Healey | Bloomberg | Getty Images
The House of Representatives and Senate on Wednesday passed a last-minute stopgap spending bill that will keep the federal government open through Dec. 11 pending President Barack Obama's signature. But another budget battle will likely ensue then, as Congress remains divided over federal funding for women's health organization Planned Parenthood.
Read MoreHouse passes legislation to avoid shutdown
Many in Congress have opposed a shutdown, as a government closure can put some federal employees temporarily out of work or delay their pay. Stockman contends it could have a positive effect by making lawmakers address spending and debt issues.
He called for entitlement and defense spending reform. He also argued that easy monetary policy from central banks has made lawmakers less likely to address the deficit.
Still, Stockman did not clearly outline why a shutdown would force lawmakers to make significant budget changes.
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9b1a4f0f8b439d990f8268f1d19bf2b2 | https://www.cnbc.com/2015/09/30/imfs-lagarde-global-growth-likely-weak-this-year-only-modest-acceleration-in-2016.html | IMF's Lagarde: More volatility likely for emerging markets | IMF's Lagarde: More volatility likely for emerging markets
VIDEO1:0301:03Lagarde: Global recovery slowingSquawk Alley
VIDEO2:2002:20Lagarde: Difficult juncture in global economy
VIDEO1:5201:52Lagarde: Emerging markets major role globallySquawk Alley
The head of the International Monetary Fund says there is reason to be concerned about the global economy.
In prepared remarks for a Wednesday speech, IMF Managing Director Christine Lagarde said that her organization sees troubling signs in the world's finances, and that it is unclear if the current situation is cyclical or if it represents a fundamental downturn.
"The simple answer is that there is no simple answer. Certainly, we are at a difficult and complex juncture," Lagarde said, explaining she is worried about recent global affairs — and international economics are similarly distressing.
Christine LagardeYuri Gripas | Reuters
"On the economic front, there is also reason to be concerned. The prospect of rising interest rates in the United States and China's slowdown are contributing to uncertainty and higher market volatility," she said. "There has been a sharp deceleration in the growth of global trade. And the rapid drop in commodity prices is posing problems for resource-based economies."
Read More Buffett: Economy 'not bad' but ...
Lagarde spoke with CNBC's "Squawk Alley" after her speech, reiterating that "there is a recovery, don't get me wrong, but it is definitely slowing down."
She said global growth will likely be weaker this year than last, and she only expects a modest acceleration in 2016. While advanced economies are seeing a "modest pickup," Lagarde said emerging economies will likely see their fifth consecutive year of declining rates of growth.
VIDEO1:0301:03Bubbles eventually burst: LagardeWorldwide Exchange
"If we put all this together, we see global growth that is disappointing and uneven. In addition, medium-term growth prospects have become weaker," she said. "The 'new mediocre' of which I warned exactly a year ago — the risk of low growth for a long time — looms closer."
On China, Lagarde said she sees Asia's largest economy as undergoing a fundamental and welcome transformation. The IMF head warned that this sort of transition can create "spillover effects" in trade, exchange rates, asset markets and capital flows.
Read MoreWeak productivity growth hits global economy: WEF
China will likely reduce its appetite for commodities as its economy slows and the country invests less overall, Lagarde explained in her speech. "This will contribute to what could be a prolonged period of low commodity prices — a change that will need to be managed by policymakers, particularly in the large commodity exporters," she said.
In fact, Lagarde told CNBC that she expects emerging markets will likely see more volatility ahead.
As for the Federal Reserve, Lagarde said she was encouraged by how the U.S. central bank is going about its decision-making on when to raise rates.
Read MoreYellen: Rate hike path more important than timing
"We are very pleased to see the fact that the decision will be data dependent — we think that that's very, very good. We don't see much movement on the inflation front nor on the wages front, so we are also very interested to see that the international scene is also perceived as likely to have domestic effects and may have been factored into the thinking," she said, adding that her organization does not see an economy ready for a rate hike.
The World Trade Organization announced that it had cut its forecasts for global goods trade earlier Wednesday after quarterly growth turned negative, with trade shrinking by an average of 0.7 percent in the first two quarters of this year. The WTO said it sees world trade growth of 2.8 percent this year and 3.9 percent in 2016, revised down from the forecasts it made in April of 3.3 percent and 4.0 percent, respectively.
—Reuters contributed to this report.
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e92d1b03e31d346444da42dd5621ec29 | https://www.cnbc.com/2015/09/30/indian-mob-kills-muslim-farmer-rumoured-to-have-eaten-beef.html | Indian mob kills farmer rumored to have eaten beef | Indian mob kills farmer rumored to have eaten beef
VIDEO0:2900:29Man in India killed for eating beefReligion
A Muslim farmworker has been dragged from his home in an Indian village and beaten to death by an angry mob after rumours were spread that his family had been eating beef and storing the meat in their home.
The attack — which occurred late on Monday in a community just 45km from New Delhi and left the man's 22-year-old son critically injured — is the latest in a series of vigilante attacks against people in India suspected of involvement in the transport and slaughter of cattle.
It reflects the increasingly febrile environment over cows in India, where many devout Hindus revere the animals as near-deities but religious minorities such as Muslims and Christians treat beef as a source of inexpensive protein.
Cow slaughter has always been a sensitive and sometimes incendiary issue, and has sometimes triggered communal conflagrations. Many Indian states have bans on killing the animals, and mob attacks on those suspected of killing cows are not unknown.
But under the administration of Prime Minister Narendra Modi, who has himself bemoaned India's surging meat exports, rhetoric over the need for stronger protection of cows has grown more heated.
Hindu rightwing groups affiliated with the ruling Bharatiya Janata party have called for a national ban on slaughtering cows. In Maharashtra, a ban on cow slaughter took effect earlier this year, while the BJP government in Rajasthan has vowed to widen its prohibition on killing cows, with tough new rules that bar their transport for slaughter and permit the impounding of trucks used in the trade.
"There has been a bit of rallying around this discourse of how Muslims and Christians kills cows, and it's an emotive issue because pious Hindus do worship them," says Meenakshi Ganguly, South Asia director of Human Rights Watch. "It's dangerous rhetoric which can spiral into violence."
More from the Financial Times:
Indian state hit by beef ban Indian state of Maharashtra bans beef Indian streets with an identity crisis
Family members of Mohammad Akhlaq, the man killed this week in Dadri, said their father was dragged from their home and stoned by the mob at around 10pm on Monday, after calls from a temple loudspeaker urged local residents to gather at the family's home and claimed they had slaughtered a calf, which the family denied.
The attack came just days after the Eid festival, when many Muslims slaughter goats or other animals for a celebratory feast. But tensions over cows are multiplying.
Read MoreSpreading beef bans hit Indian farmers, traders - and lions
In late July, 10 people were seriously injured in a clash in north-east Delhi, after a mob attacked men for allegedly transporting cow hides. In southern India, rightwing Hindu groups have attacked trucks carrying cows from states where cow slaughter is banned to Kerala, where it is legal.
Ms Ganguly said this week's attack reflected a wider trend towards vigilante justice in India, where the criminal justice system is seen to be largely ineffective.
"The fact that this righteous mob believes it has the privilege of taking the law in its own hands is something that needs to be addressed by an effective criminal justice system," she said. "The fact that mobs are expressing their moral outrage over something, and they feel justified in taking this kind of action, is a crisis in the public faith over the rule of law."
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5d36695969a0010a8ab042e9eb88283a | https://www.cnbc.com/2015/09/30/investors-cut-junk-bond-holdings-as-debt-fears-mount.html | Investors cut junk bond holdings as debt fears mount | Investors cut junk bond holdings as debt fears mount
Siegfried Layda | Getty Images
Billionaire investor Carl Icahn is not the only one sounding the alarm bells on high-yield debt, with investing arms of some major investment banks cutting back exposure to the sector on fears that their debt piles are looking unsustainable.
Fears over the health of the U.S. economy and the timing of a Federal Reserve interest rate rise have weighed on high-yield bond prices. Otherwise known as junk bonds, high-yield is issued by firms that are deemed below investment grade by ratings agencies.
While the risk of these investments is high, so are their returns: Junk bonds tend to offer investors at least 150 points or 1.5 percent on top of 10-year U.S. Treasury yields with 10-year U.S. government bonds currently trading around 2.08 percent.
However, UBS wealth management and Citi's private bank division have both cut back their exposure to U.S. junk bonds this month, with both deeming the position no longer worth the risk.
Read MoreThe party is over for junk bond investors
Global chief investment officer at UBS wealth management, Mark Haefele said the group had trimmed their position from "overweight" to "neutral" for the first time since 2011.
"This asset class is becoming less attractive as levels of leverage have picked up, interest coverage has fallen, and exposure to low oil prices can still impact default rates over the coming 12 months," Haefele said.
At Citi, global chief investment strategist Steven Wieting said while he does not fear for U.S. high yield borrowers away from oil drillers, he has upped allocation to "high grade" debt, one rung below what ratings agencies deem the safest from of debt.
"U.S. high yield debt's correlation to equities is substantially higher, near 63 percent, versus 31 percent for high grade over the past 25 years. At our latest global investment committee meeting, we reduced our high yield overweight slightly to shift to high grade, in line with past steps to gradually raise portfolio credit quality," Wieting said.
The iShares iBoxx $ High Yield Corporate Bond ETF, commonly referred to as HYG, is the largest junk bond Exchange Traded Fund in the U.S., with around $12.85 billion under management has seen prices drop to multi-year lows, sending average yields of the companies tracked by the ETF to around 6.5 percent.
Read MoreTop managers on where to hide amid volatile market
Using data from xtf.com, Nick Colas, chief market strategist at Convergex said some $37 billion is currently held in U.S. listed high yield across 39 ETFs.
In the last week, around $893 million has been pulled from U.S. junk bond ETFs, mainly from HYG and its competitor State Street's SPDR Barclays High Yield Bond ETF (JNK).
Absolute return bond fund manager Jon Jonsson at Neuberger Berman said he started adding to positions in U.S. junk bonds towards the end of last year, having held a short position, or expectations that the price would, fall last summer.
In August this year he added some 10 percent to his portfolio, with U.S. high yield now making up around 17 percent of his fund.
Read MoreWhatever happened to the bond market bubble?
"Valuations got to a point where I think I am compensated for a higher default rate. I am not saying that default rates are not going up, I would expect that from where we are. But if you look at the simple economics of it, our view on the U.S. economy is we are still looking at it as it continue to muddle through," Jonsson told CNBC.
Jonsson said the "spreads" -- or the difference an investor is paid for high-yield debt compared to U.S. Treasury bonds -- are now high enough to compensate him for the potential default and liquidity risks.
"Spreads have become quite attractive. If the U.S. economy doesn't go into recession and doesn't have a significant growth shock, I think I am pretty good here."
"If we get more comfortable with the U.S. economy we could possibly add," he said.
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5bd309fa8ead792312a09dc787556e34 | https://www.cnbc.com/2015/09/30/japans-tankan-large-manufacturers-index-at-12.html | Japan's Q3 tankan large manufacturers index sinks | Japan's Q3 tankan large manufacturers index sinks
VIDEO1:4101:41BOJ will be 'pretty happy' with Tankan survey: HSBCSquawk Box Asia
Confidence at big Japanese manufacturers worsened for the first time in three quarters in the three months to September and is seen declining further ahead, a closely watched central bank survey showed.
The headline index for big manufacturers' sentiment fell 3 points from three months earlier to plus 12 in September, the Bank of Japan's quarterly "tankan" survey showed on Thursday.
That compared with the median estimate of plus 13 in a Reuters poll of economists.
Big firms plan to raise capital expenditures by 10.9 percent in the fiscal year that started April 1, compared with their previous plan to boost capital spending by 9.3 percent.
The tankan's sentiment indexes are derived by subtracting the number of respondents who say conditions are poor from those who say they are good. A positive reading means optimists outnumber pessimists.
Read MoreTop Abe adviser: Japan needs extra stimulus
Shuji Tonouchi, senior fixed income strategist at Mitsubishi UFJ Morgan Stanley Securities, said that the index indicated conditions were "not that bad."
"This suggests the economy may not contract in the third quarter," he said. "Overseas demand is expected to improve in the future, so companies think recent turmoil caused by overseas economies is temporary. Domestic demand doesn't look great, but it is unlikely to deteriorate much from here.
"The BOJ is still likely to ease policy and we expect easing at the end of the month. The problem is the price trend and inflation expectations.
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970a1cc50a94c12fc130bd67f2cfb6c6 | https://www.cnbc.com/2015/09/30/latest-markets-stand-strong-shrug-off-china-data.html | Markets stand strong, shrug off China data | Markets stand strong, shrug off China data
Squawk Box Live in Europe had all the market news as shares shrugged off weak Chinese PMI data after Wall Street rallied overnight.
The Nasdaq closed up over 2.2 percent, with the S&P not far behind with a positive 1.91 close. European stocks followed, with major indices opening in positive territory.
That's as China's Caixin/Markit manufacturing PMI fell to a six-year low in September, with the gauge for factory activity contracting to 47.2 — its worst reading since March 2009.
(App users please click here).
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4b6c41996ffff0791dcae65ae23a8a03 | https://www.cnbc.com/2015/09/30/lightning-round-put-this-away-for-later.html | Lightning Round: Put this away for later | Lightning Round: Put this away for later
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:
Qorvo: "The last quarter I did not like. If you are going to be in that semiconductor business, you have to stick with Skyworks Solutions."
Apogee Enterprises: "When I think of glass now, and I know it's not a major part of the business now, but when I think of coatings and infrastructure I am going to send you to PPG Industries. I don't know if you have looked at PPG now but this thing is now down to $87 from $118. That one is a buy buy buy."
Illumina Inc: "The stock is coming down because people feel that the biotechs cannot raise any more money to buy Illumina. This is the best equipment maker. You've got to take a little longer-term view, I do like the company."
Inovio: "We are in a major bear market for this stuff. This is one where you have to put it away. Look at Novavax yesterday, that company is doing everything right and it doesn't matter. We are in a bear market for biotech and you have to be patient or you have to say you'll come back some other time."
New York Mortgage Trust: "The big yield is a red flag. Why is it a red flag? Quite simply because it is not sustainable. I want to stay away from that."
Read more from Mad Money with Jim Cramer
Cramer Remix: This could push oil even higher Cramer: Why Exxon is ready to bounce Cramer: We are getting closer to a bottom
NRG Energy: "It's down 44 percent. It turns out what we really want from a utility is steady growth and a good dividend...that company is not perceived as being a steady grower with a good dividend. Now it yields 3.9 percent, so it has a decent dividend."
Kinder Morgan: "There has been gigantic selling in both the master limited partnerships in the pipeline space. I have to tell you that if you look at Energy Transfer Partners today, which has also been a victim of that, you will see what it means. Now KMI is no longer an MLP but it is doing well. And I don't care that everyone keeps selling it. Rich Kinder [CEO] is money."
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