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Hackers attack Yahoo Mail accounts

Written By limadu on Jumat, 31 Januari 2014 | 14.44

NEW YORK (CNNMoney)

Yahoo (YHOO, Fortune 500) said it recently identified a coordinated effort by hackers who tried to log into many email accounts with stolen usernames and passwords. The note by Yahoo products executive Jay Rossiter did not immediately say how many accounts were affected.

The company declined to comment further but said it has teamed up with federal law enforcement to investigate the attack.

The credentials were likely taken from a third-party database, Yahoo said.

Related story: Stolen credentials blamed in Target breach

Yahoo said it reset passwords for users who were impacted. The company sent them text messages Wednesday night warning of "unusual activity on the network." To top of page

First Published: January 30, 2014: 6:04 PM ET


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Chipotle shares sizzle following red-hot quarter

chipotle quarter

Chipotle says it plans to open between 180 and 195 new restaurants in 2014.

NEW YORK (CNNMoney)

The burrito chain's stock surged nearly 13% in after-hours trading Thursday following fourth-quarter results showing the company's strong growth continuing.

Chipotle (CMG) posted $844 million in sales, up 21% versus a year prior, and $80 million in earnings. The company is expanding aggressively, opening 56 new restaurants in the fourth quarter, and now has nearly 1,600 locations.

Related: Which country has the cheapest Big Mac?

Chipotle was spun off from McDonald's (MCD, Fortune 500) in 2006, and shares have been on a tear ever since, rising over 60% in the past year alone.

McDonald's meanwhile may be losing its luster. Its stock has been in the doldrums as it's struggled to match new menu offerings from competitors like Burger King (BKW) and Wendy's (WEN).

Related: Burger King tests Chicken and Waffle sandwich

There are still some Chipotle skeptics out there -- hedge fund moguls David Einhorn and Jeffrey Gundlach have made cases against the stock in the past year and a half. To top of page

First Published: January 30, 2014: 6:50 PM ET


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GoldieBlox ad makes Super Bowl history

goldieblox

Debbie Sterling's toy startup GoldieBlox becomes the first small business ever to air an ad during the Super Bowl.

NEW YORK (CNNMoney)

The startup will make Super Bowl history this Sunday by becoming the first small business to have a commercial air on TV during the most-watched event of the year.

GoldieBlox won a contest run by Intuit (INTU), where the grand prize was the 30-second ad that will debut during the third quarter of the game. Intuit will pick up the $4 million cost.

"We still can't believe that we won. We were all crying when we found out," said Debbie Sterling, founder of GoldieBlox, a line of storybooks and toys aimed at getting young girls excited about science and engineering.

GoldieBlox's ad will appear alongside some of the biggest brands in the world such as Budweiser, Cheerios, and Coca-Cola (KO, Fortune 500). Super Bowl commercials typically are dominated by big brands that can afford the hefty price tag.

Related Story: Sneak peek at the Super bowl spots

But GoldieBlox got its start just 18 months ago and has barely 15 employees. Its toys sell in Toys R Us and Target (TGT, Fortune 500).

The ad, which was produced by a top ad agency RPA, puts GoldieBlox shoulder to shoulder with the big leagues, and Sterling hopes the exposure to over 100 million viewers will enable the brand to take a "giant leap forward for our mission."

A Stanford University engineering graduate, Sterling launched GoldieBlox in 2012 after became obsessed with the idea of "disrupting the pink aisle" with a toy that could potentially inspire the next generation of female engineers.

Related Story: Super Bowl creating traffic jam for private jets

She turned to crowdfunding site Kickstarter with the goal of raising $150,000 to fire up her idea.

"We did that in just 4 days," said Sterling. In total, her Kickstarter campaign raised over $285,000. "So yes, we knew we were on to something," she said.

Intuit's contest kicked off last July and asked U.S.-based business with 50 or fewer employees to submit a compelling story about their company.

An online vote determined the top 20 submissions, and then Intuit's 8,000 employees voted to pick four finalists -- GoldieBlox, dog treats maker Barley Labs, organic egg farm Locally Laid Egg Company and natural compost producer POOP. A separate online vote in December determined the grand-prize winner.

Intuit said millions of votes were cast for the entries but declined to say how many went to GoldieBlox.

"GoldieBlox is an outstanding example of the 29 million small businesses across the United States," said Intuit's CEO Brad Smith. "It's clear voters around the world felt the same way."

GoldieBlox's Intuit win, however, isn't its first brush with fame.

Last year, the company created a parody video that featured the Beastie Boys song "Girls." The video, which featured young girls rejecting the "princess" stereotype as they built a complex maze, became a viral hit. But it also brought on a copyright infringement lawsuit by the Beastie Boys for using their song.

GoldieBlox initially countered with its own lawsuit but ultimately removed the song from the video.

Intuit also confirmed that it will hold a similar contest again next year. To top of page

First Published: January 30, 2014: 6:17 PM ET


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Obama: 9 million covered by health reform. Well maybe.

Written By limadu on Rabu, 29 Januari 2014 | 14.44

NEW YORK (CNNMoney)

Obamacare got a bad rap after the disastrous launch of the federal and state exchanges in October. But enrollment has since improved, but not quite to the level that the president extolled.

Obama said Tuesday that more than 9 million people have signed up for insurance thanks to Obamacare.

Here's how it breaks down:

Some 2.1 million had signed up for private insurance through the state and federal exchanges as of Dec. 31. This figure was updated to 3 million last week. However, it includes both people who have paid their first month's premium and those who have not yet fully enrolled. Those who don't pay by their insurers' deadline will not be covered.

More than 3 million young adults under age 26 obtained insurance through their parents' policies. This provision was one of the earliest ones to take effect, starting in September 2010.

And another 3.9 million people learned they're eligible for Medicaid or the Children's Health Insurance Program (CHIP) in October and November.

But this final figure is pretty squishy since it includes people who already had Medicaid and were simply renewing. Administration officials could not give the percentage of renewals. Experts say renewals could be a sizable chunk of that figure.

Related story: Obama's soft sell on income inequality

Still, Obama took the opportunity to highlight how health reform was helping Americans, pointing to a newly covered single mom from Arizona whose emergency surgery earlier this month would have bankrupted her had she remained uninsured. Prior to Obamacare, she could not obtain insurance because of a pre-existing condition.

And he highlighted Kentucky Governor Steve Beshear, whom he called "a man possessed" with covering his state's families.

The president also wove his income inequality theme into his lauding of Obamacare.

"For decades, few things exposed hard-working families to economic hardship more than a broken health care system," he said. "That's what health insurance reform is all about -- the peace of mind that if misfortune strikes, you don't have to lose everything." To top of page

First Published: January 28, 2014: 11:16 PM ET


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Obama offers new 'MyRA' retirement accounts

obama state of the union 2

President Obama used his address to proposed a new kind of retirement savings account.

WASHINGTON (CNNMoney)

Obama is calling them the "MyRA" and said he would, by executive order, direct the Treasury Department to create them.

Details were scarce Tuesday night, but employees will be able to contribute part of their wages to the savings accounts, which would be backed by the U.S. government.

"It's a new savings bond that encourages folks to build a nest egg. MyRA guarantees a decent return with no risk of losing what you put in," Obama said during the State of the Union.

About half of all American workers are employed by companies that don't offer retirement plans, according to a 2009 Brookings Institution report.

And those who do save, don't save much.

About two-thirds of all workers said they put some money away in 2013 for retirement savings, according to a survey by the Employee Benefit Research Institute. More than half of workers said they had less than $25,000 in savings, outside of their home and pensions. And 28% of workers said they had less than $1,000 in savings.

Related: Should I take my pension's lump sum?

The Obama administration has been moving to try and promote savings through executive maneuvers. In 2010, Treasury set up a new program to allow Americans to automatically use their tax refunds to buy savings bonds.

The White House said the MyRA would be offered through Roth IRA accounts and that any saver with wages could set one up.

Roth IRAs allow users to put after-tax income into a savings account, where it grows tax free.

And then when savers hit retirement age, they can withdraw the money without additional tax penalties. In 2013, taxpayers could contribute up to $5,500 into a Roth IRA. To top of page

First Published: January 28, 2014: 10:50 PM ET


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Olympic sponsorship: Is it worth it?

sochi olympic rings

Big companies spend as much as $1 billion on Olympics sponsorship and related marketing.

LONDON (CNNMoney)

But it's been a bumpy road to the Sochi Games for major sponsors like Coca-Cola (KO, Fortune 500), McDonald's (MCD, Fortune 500) and Visa (V, Fortune 500) after they got caught up in a backlash against a Russian law which critics say infringes gay rights.

President Vladimir Putin signed the legislation in June, sparking global outrage and a wave of protests demanding a boycott of the Games and sponsors' products.

Related: Russia's anti-gay law could hit Olympic sponsors

It's not the first time the Olympics have sparked arguments over gay rights. At the 1996 Atlanta Games, the volleyball tournament was pulled from Georgia's Cobb County after protests over an anti-gay law.

Former International Olympic Committee director Michael Payne said Cobb County was an early example of the kind of media storm the Games can generate, and sponsors had learned to roll with the punches.

Since then, the explosion of social media has given campaigners a new platform to exert pressure on big Olympic sponsors, including Samsung (SSNLF), Panasonic (PCRFF), General Electric (GE, Fortune 500), Dow Chemical (DOW, Fortune 500), Procter & Gamble (PG, Fortune 500), Omega (OCFN) and Atos. (AEXAF)

So does this brand bashing have any impact on their investment?

Corporations pay an estimated $100 million to become a major Olympic sponsor. On top of this, they pump massive investment into related marketing campaigns.

"The rights fee is really on the right to spend more money," said John Ivey, managing partner at Boston-based sports marketing consultancy AMM.

Related: Sochi: Most expensive Olympics yet

Just how much more isn't clear. Media tracking company The Global Language Monitor estimates top sponsors spend as much as one billion dollars over four years.

IMD business school president Dominique Turpin said for every $1 paid in sponsorship fees, companies must spend an additional $3 to $4 on things like new product launches or advertising campaigns.

But Turpin and other experts say measuring whether companies get the desired return on their commitment to the Games -- contentious or not -- is tricky.

"It's very difficult to put a number on return on investment, and many investors are questioning the huge amount of money put into [sponsorship]," Turpin said.

Achieving value for money will often depend on how a sponsor allocates its investment over the four years of an Olympic cycle, said AMM's Ivey.

Ivey and former IOC director Payne said any damage stemming from association with a Games-related controversy tends to fade as soon as the event begins.

"Once the flame gets lit, the focus shifts to the athletes and the competition and that's what the sponsors pay for -- the human element of the Games," said Ivey. "That's what creates the value." To top of page

First Published: January 29, 2014: 12:28 AM ET


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Emerging markets rattled as anxiety rises

Written By limadu on Senin, 27 Januari 2014 | 14.44

india currency

India's rupee has weakened in recent days amid concerns about emerging market economies.

HONG KONG (CNNMoney)

Asian markets were sharply lower, with benchmark indices in Tokyo and Hong Kong shedding more than 2% as investors looked to move out of riskier assets. South Korea's KOSPI Index and the Mumbai Sensex were off by 1.5%.

In currency markets, the yen gained ground against the dollar as investors parked their money in traditional safe havens. Emerging market currencies extended losses, building on a trend from last week that hit the Argentinian peso, Turkey's lira and India's rupee especially hard.

Emerging markets have been hammered in recent days due to the possibility that the Federal Reserve, Bank of England and Bank of Japan will pull back on propping up their own economies. Signs of weakness in China's huge manufacturing sector and a looming default in the shadow banking system have only added to worries.

"The fear is that the Fed, Bank of England, and even the Band of Japan will become less dovish more quickly than had been though even a few weeks ago," said Steven Englander, head of foreign exchange strategy at CitiFX.

Related story: Will stocks break out of their rut?

Developing markets were the prime beneficiaries of low interest rates in the United States, which encouraged a rush of capital into the developing world. Should rates rise and that trend reverse, vulnerable economies could take a hit as their currencies weaken and investors flee.

Related story: Buckle up! 2014 will be a bumpy ride

The Fed will reveal its latest policy decision Wednesday. At its previous meeting, the Fed announced plans to begin scaling back its massive stimulus program by $10 billion per month to $75 billion in monthly bond purchases, citing signs of economic growth.

Even though the economy only added 74,000 jobs in December, many market observers expect the Fed will continue to cut back on its quantitative easing. To top of page

First Published: January 26, 2014: 10:07 PM ET


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ATM outage strands U.K. bank customers

NEW YORK (CNNMoney)

A Lloyds Banking Group (LLDTF) spokeswoman said the three-hour outage had been resolved but did not know how many customers had been unable to use their cards.

Issues with in-store purchases were resolved by 6 p.m. local, and ATM outages were resolved by 7:30 p.m. At 7:45 p.m. local, the bank's customer service hotline was still warning callers "we're extremely busy at the moment" because the bank was "experiencing issues with some credit cards and debit card transactions."

One bank executive took to social media, directly answering customer complaints and questions. He said the outage was caused by a server failure.

"My apologies to TSB customers having problems with their cards. I'm working hard with my team now to try to fix the problems," wrote Paul Pester. He is CEO of TSB Bank, which split off from Lloyds in September but is one of several banks that he tweeted "use the same IT systems."

Related: ATM heist thieves pocket $3 million in just hours

The banking group has suffered other payment outages, including one when the two banks split and divvied up their retail locations and customer accounts. To top of page

First Published: January 26, 2014: 4:03 PM ET


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Google snaps up artificial intelligence firm DeepMind

google deepmind

Google is acquiring London-based artificial intelligence firm DeepMind.

HONG KONG (CNNMoney)

A Google spokesman confirmed the acquisition on Monday, but declined to comment on the purchase price. Tech website Re/code, first to report the news, said that Google was paying $400 million.

Privately held DeepMind describes itself as a "cutting edge artificial intelligence company" that specializes in machine learning and systems neuroscience. The company's founders include Demis Hassabis, a former chess prodigy who has built a reputation as a game designer and artificial intelligence programmer.

An earlier version of the company's website, which consists of a single page, said that DeepMind was "building general-purpose learning algorithms" and that the company's first commercial applications would be in mobile social gaming.

Google (GOOG, Fortune 500) is on a campaign to beef up its expertise in artificial intelligence and robotics, related fields that have been a research and development focus for the company. Over the past year, Google has snapped up at least seven robotics firms.

Artificial intelligence improvements could benefit products across Google's product lineup, including driverless cars.

Late last year, Google bought Boston Dynamics, a company known for developing super-fast, animal-like robots with strong ties to the U.S. military. Google's broader push into the field of robotics is being led by Andy Rubin, the man responsible for developing the Android platform for smartphones.

Related: Your Hackable House

And in January, Google bought Nest, a company that develops "smart" home appliances like thermostats and smoke detectors that can program themselves and communicate with smartphones.

The acquisition follows a series of efforts by Google to break into the connected home business, none of which have proven particularly successful. To top of page

First Published: January 27, 2014: 1:45 AM ET


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Michaels stores: Possible data 'attack'

Written By limadu on Minggu, 26 Januari 2014 | 14.44

michaels craft store hacked

The country's largest crafts chain said Saturday it learned recently of 'possible fraudulent activity' on some customer payment cards, suggesting there may have been a breach.

NEW YORK (CNNMoney)

Michaels said Saturday that it learned recently of "possible fraudulent activity" on some of its customers' payment cards, suggesting there may have been a breach.

CEO Chuck Rubin said the company has not confirmed a breach, but wanted to alert customers.

"We are concerned there may have been a data security attack on Michaels that may have affected our customers' payment card information and we are taking aggressive action to determine the nature and scope of the issue," Rubin said in a statement.

The company gave no additional information on the possible breach, including how many customers may be involved, when those customers shopped at Michaels, and if the possible breach affected online or in-store shoppers.

In recent weeks Target (TGT, Fortune 500) and Neiman Marcus have each acknowledged breaches.

The attack on Target affected as many as 110 million customers, including 40 million credit and debit card shoppers at the height of the holiday shopping season.

Neiman Marcus said a three-month breach in the summer and fall affected 1.1 million customers.

Michaels says it operates more than 1,100 stores in the U.S. and Canada. To top of page

First Published: January 25, 2014: 2:42 PM ET


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Buckle up! 2014 will be a bumpy ride

davos laurence fink

BlackRock CEO Laurence Fink: "I hear way too much optimism going forward -- we're going to be in a world of much greater volatility."

Davos, Switzerland (CNNMoney)

Financial experts at the World Economic Forum in Davos were cautiously optimistic about the outlook for growth in 2014, but the beginning of the end of post-crisis emergency financial support will be bumpy.

The Dow just had its worst week since 2011. And emerging market currencies got hit hard as investors fled riskier assets.

Investors were troubled by signs of weakness in China's huge manufacturing sector and a looming default in the shadow banking system. Expectations that the Federal Reserve will continue to pull back monetary stimulus pushed things along.

"I hear way too much optimism going forward -- we're going to be in a world of much greater volatility," said BlackRock CEO Laurence Fink.

Related: Cry for me Argentina? Peso plunges

Investors had been encouraged by "good, consistent" central bank policy around the world in recent years, he said. But the next impetus for growth would depend on governments in China, Japan, the U.S. and Europe delivering on promised economic reforms.

"That troubles me, because there has been great consistency of governments dragging their feet," Fink said.

Monetary policy is already beginning to change in the U.S. and U.K., in response to stronger growth and falling unemployment.

The Federal Reserve has begun to "taper" its purchases of government bonds, and some analysts predict the Bank of England will raise interest rates as early as the fourth quarter.

Bank of England Governor Mark Carney said there was "no immediate need" for an increase in the cost of borrowing, and that when it comes, the process will be gradual.

But the return to more normal levels of market volatility would feel worse than it is, coming after an extended period of calm, he said.

Related: India headed for 8% growth

The International Monetary Fund upgraded its forecast for world growth on Tuesday. It warned that the outlook would depend on the impact of the withdrawal of central bank support.

"This is clearly a new risk on the horizon, and it needs to be watched," IMF Managing Director Christine Lagarde said.

The flow of money back to the U.S. and other developed economies would not affect emerging markets uniformly, she added. Investors would differentiate based on political stability, commitment to reform, and signs of financial weakness.

"The risk is there, but well managed emerging markets will be able to cope with it," said Montek Ahluwalia, deputy chairman of India's planning commission.

Fink said too much attention was paid to the actions of the Fed and other central banks, and not enough to the reforms needed to respond to the massive technological changes that are destroying jobs. To top of page

First Published: January 25, 2014: 11:22 AM ET


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Weather Channel-DirecTV blackout: No end in sight

directv weather channel

TV channel owners and distributors usually haggle in private. But the dispute between the Weather Channel and DirecTV underscores how contentious the negotiations can become.

NEW YORK (CNNMoney)

On Friday, DirecTV Chief Executive Mike White published a letter online blasting television channels for acting like "it's their absolute birthright to be paid more and more each year for the same content they offer, regardless of how many customers actually watch their channels."

White didn't stop there. He asserted that the Weather Channel's total audience has been declining as consumers gravitate to the Web.

"Why should DirecTV customers pay more for a channel they are watching far less?" he wrote.

White's letter was unusual. Television channel owners and distributors usually haggle in private and come up with carriage agreements that both sides can live with.

The dispute between the Weather Channel and DirecTV underscores how contentious the negotiations can become.

Related: Cable TV competition from the Web

White asserted in his letter that DirecTV believes the channel is only worth "one-quarter" of the price the channel wants.

According to research firm SNL Kagan, the Weather Channel earns about 13 cents per television subscriber per month. During the dispute, the channel has said that it's asking for a penny more, while DirecTV is asking it to accept a 20% reduction, or roughly 10 cents per subscriber per month.

The more drastic reduction that White described in his letter is basically unheard of in the television business.

But White's stated logic may appeal to many of his customers: "In every other industry, when the demand for any product is reduced, prices go down, they don't go up. That is the heart of this issue."

In response, Weather Channel spokeswoman Shirley Powell said that DirecTV's decision to drop the channel "has nothing to do with keeping costs down for consumers." She noted that DirecTV recently said it would raise its prices by 4.4% on average.

Related: Verizon bets on future of TV

For his part, White conceded that DirecTV was raising its prices along with other TV providers like Comcast, Dish and Time Warner Cable. But he blamed the content providers.

"[W]e are forced to raise our prices annually due to programmers like the Weather Channel, demanding to be paid more and more each year," he wrote. He said DirecTV "will be forced" to pay 8% more for programming in 2014 and that it was passing on to its customers only a 3.7% increase.

White's letter sent a message to DirecTV customers: Don't switch to another provider, because channels like the Weather Channel are forcing them to raise rates, too.

DirecTV provides television service to about 20 million homes, totaling roughly one in six households in the United States. Before the dispute with the Weather Channel, DirecTV introduced an upstart channel, WeatherNation, as an alternative.

White admitted in Friday's letter that WeatherNation is not an "exact substitute" -- far from it -- but said it "offers our customers what they want at a fraction of the price."

One of White's main points is the same one that outside analysts have pushed: The television version of the Weather Channel is being cannibalized by the parent company's Web sites and apps. The channel's Weather.com is one of the preeminent sources for online weather information.

"Our customers tell us the Weather Channel is their fourth choice when looking to access weather information," White said. "They first turn to mobile devices and computers for instant weather information and then to local news sources that have a better grasp on local conditions."

Last week, on CNN's "Reliable Sources," I asked Weather Channel meteorologist Jim Cantore if the channel's apps were pulling people away from TV.

"Here's my analogy," he said. "If your knee is starting to ail a little bit, you may go online and see what the symptoms may be. But at the end of the day, you're going to the doctor to find out what's going on with that." The flagship television channel, he said, is the doctor.

But the back-and-forth between the Weather Channel and DirecTV suggests that DirecTV subscribers won't be seeing that doctor anytime soon. To top of page

First Published: January 25, 2014: 7:31 PM ET


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Sony gets rights to Sandberg's 'Lean In'

Written By limadu on Sabtu, 25 Januari 2014 | 14.44

sheryl sandberg lean in

Sony Pictures has acquired the film rights to Sheryl Sandberg's book "Lean In."

NEW YORK (CNNMoney)

Sony Pictures confirmed that it has acquired the rights to make the Facebook (FB, Fortune 500) COO's book into a movie.

Published in March 2013, "Lean In: Women, Work and the Will to Lead" encourages women to advance their careers. If the film stays true to the book, it won't be so much a biography of Sandberg, who recently became one of the youngest female billionaires ever, as a manifesto advising women on how to achieve professional success.

Sandberg also launched an organization, Lean In, to further promote her message. She will donate her proceeds from the film to the foundation, according to Deadline, which reported the story earlier.

While there were few specifics available about the movie or the deal, Deadline said Sony Pictures (SNE), which made "The Social Network" about Facebook CEO Mark Zuckerberg -- tapped Nell Scovell to write the script. Scovell helped Sandberg write the book.

--CNN's David Daniel contributed to this report. To top of page

First Published: January 24, 2014: 5:54 PM ET


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Nissan spanked over fake dune-climbing ad

NEW YORK (CNNMoney)

So Nissan and its advertising agency have entered into a proposed settlement with the Federal Trade Commission over charges of deceptive advertising. Neither Nissan (NSANF) or its advertising agency, TBWA Worldwide, will pay any fines. They simply agree not to make any more misleading ads.

The ad aired in October and November of 2011. In making it, the truck and the dune buggy were actually pulled up the hill using cables, according to the FTC. That means the ad, which is shot to look as if it were done by an amateur with a cell phone camera, does not accurately show the true capabilities of an unaltered Nissan Frontier.

Plenty of TV ads show vehicles doing absurd things -- like jumping on and off moving trains -- but those ads depict situations that are completely unbelievable and, so, don't actually mislead anyone. In the case of the Nissan Frontier ad, someone might actually think the truck could do this.

"Special effects in ads can be entertaining, but advertisers can't use them to misrepresent what a product can do," said Jessica Rich, Director of the FTC's Bureau of Consumer Protection. "This ad made the Nissan Frontier appear capable of doing something it can't do."

Gallery - 10 priciest collector cars from Scottsdale auctions

"Under the proposed settlements, Nissan and TBWA cannot misrepresent any material quality or feature of a pickup truck through the depiction of a test, experiment, or demonstration," according to the FTC's statement. Special effects can still be used, however, as long as they do not misrepresent the truck or its capabilities.

Nissan and TBWA both said they take their "commitment to fair and truthful advertising seriously" and that they are "committed to complying with the law."

The proposed settlement will be available for public comment for 30 days before the FTC decides to make it final. To top of page

First Published: January 24, 2014: 3:56 PM ET


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Sam's Club laying off 2% of workers

sams club layoffs

Sam's Club will lay off 2% of its workforce.

NEW YORK (CNNMoney)

That's 2% of the workforce for the wholesale club chain, which has nearly 600 locations in the United States.

A little less than half of the employees affected are assistant managers, according to Sam's Club spokesman Bill Durling. Before the layoff, each club's fresh section -- which sells meat, poultry, seafood, dairy, produce and baked goods -- had six managers. Half of those jobs have been eliminated. Instead there will be three fresh section managers, who will be paid more, Durling said.

The company eliminated some hourly positions too.

Each employee affected by the cut will be paid for 60 days and is encouraged to look for other jobs at Sam's Clubs or its parent company, Wal-Mart, (WMT, Fortune 500)stores. If they cannot find a job within the company, they will receive some severance, Durling said.

Durling said that the company also plans to add at least fifteen more stores in the next year.

--CNN's Poppy Harlow contributed to this report. To top of page

First Published: January 24, 2014: 7:18 PM ET


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Jack Lew: U.S. could grow by 3% this year

Written By limadu on Jumat, 24 Januari 2014 | 14.44

Davos, Switzerland (CNNMoney)

"We have a good first quarter underway, I believe," Lew said at the World Economic Forum in Davos, Switzerland.

Lew was reluctant to make a specific prediction about the rate of expansion this year, but said there were reasons to believe growth in the world's biggest economy would "break through 3%."

He believes that, freed from last year's drag of tax rises and spending cuts, and with business confidence strong, the economy should accelerate sharply from last year.

"I really think there is every reason to be hopeful that we will do well this year," Lew said.

Related: My minimum wage isn't a living wage

In its latest forecast Tuesday, the International Monetary Fund upgraded its projection for U.S. economic growth in 2014 to 2.8% from 2.6%, citing stronger domestic demand and the boost from smaller spending cuts as a result of the recent budget deal.

The IMF estimates U.S. growth of 1.9% in 2013.

While the U.S. is recovering at a faster pace than other developed economies, Lew said there was still a way to go in creating jobs and making work pay.

Related: Economic mobility: No better, no worse

"We don't think it's OK to work full time and be below poverty," he said. "Until every American who wants a job has a job, we'll have more work to do."

Lew also cautioned companies against rushing to do business with Iran following an interim deal that limits the country's nuclear program in exchange for lighter sanctions.

President Hassan Rouhani said earlier Tuesday that Iran would continue with its peaceful nuclear program, and will push to re-engage with the world to build its economy.

"I've been very clear that business should be very clear headed about going to do business in Iran because the sanctions regime has not been lifted," Lew said.

He said it was way too early to predict the outcome of negotiations with Iran aimed at securing a comprehensive, long-term agreement on the future of its nuclear program. To top of page

First Published: January 23, 2014: 1:39 PM ET


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Oops! Pentagon didn't actually order 80,000 new BlackBerries

blackberry hq canada

Smartphone maker BlackBerry didn't sell 80,000 new phones to the Pentagon, but the sale of most of its Canadian real estate holdings will help its finances.

NEW YORK (CNNMoney)

"The Department of Defense is not planning to purchase upwards of 80,000 BlackBerry devices," a Pentagon spokesman said in a statement.

The confusion began when the DoD said in a Jan. 16 press release that it launched a new mobile network that would support 80,000 BlackBerries in addition to 1,800 iPhones, iPads, and Android devices. Shares soared 5% the following day.

The problem is that those 80,000 BlackBerry smartphones are existing devices -- not new ones. So down shares came tumbling after The Verge first reported the Pentagon's clarification.

Despite Thursday's setback, BlackBerry shares have been on a tear in 2013 -- up 38% so far. Investors have enthusiastically embraced new CEO John Chen -- who took the top spot only recently and has been successful turning around other companies.

Real estate sale drives stock: Investors particularly supported Chen's latest move, announcing earlier this week that BlackBerry would sell most of its real estate in its home country in a bid to raise much needed cash. BlackBerry shares had been up 19% this week prior to Thursday.

The real estate in question totals over 3 million square feet -- or nearly the same amount of office space in the Pentagon. Blackberry said it will lease back much of the space and will stay in its hometown near Toronto.

"BlackBerry remains committed to being headquartered in Waterloo," John Chen, the company's CEO, said in a statement. "This initiative will further enhance BlackBerry's financial flexibility, and will provide additional resources to support our operations as our business continues to evolve."

The company wouldn't say how much it expects to make off the sale. Peter Misek, a managing director at Jefferies & Co. that covers Blackberry, thinks it will be at least $450 million.

Misek does not see the move as an act of desperation or an indication that the company may move elsewhere.

"He's raising fortress levels of cash to show people that this company is going to be around, at least in the near term," Misek said of CEO Chen's move. "It's a really smart idea."

Related: BlackBerry CEO may have golden touch

Struggling business: BlackBerry (BBRY) sure needs the cash. The company has $3.2 billion in cash but has been bleeding money and subscribers for the better part of a year as customers flock to other smart phones, such as Apple's (AAPL, Fortune 500) iPhone or Samsung's Galaxy.

Last quarter BlackBerry announced a huge $4.4 billion loss, including a $1 billion writedown on the failed Z10 smartphone. Sales fell 56% from the same time a year prior. Earlier this fall it said it was laying off 4,500 employees -- 40% of its work force -- and gave up on a bid to sell itself.

BlackBerry's losses going forward are expected to be much more manageable -- maybe $300 million a quarter for the next couple of quarters, said Misek. Ideally, the company would return to profitability sometime after that. To top of page

First Published: January 23, 2014: 4:03 PM ET


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Microsoft sales soar 14%

microsoft earnings signage

Microsoft shares rise after company reports strong second quarter sales that beat analyst estimates

NEW YORK (CNNMoney)

The software giant posted solid shipments of the Xbox One, selling 3.9 million of the new game consoles. Microsoft has been neck-and-neck with rival Sony (SNE), which launched the PlayStation 4 console a week before the Xbox One went on sale.

Microsoft also doubled sales of its Surface tablet, bringing in nearly $900 million in revenue from the device. That's a positive turnaround for a device that got off to such a slow start last year that the company was forced to write down nearly $1 billion in inventory.

But PC sales continued to haunt Microsoft: Consumer sales of Windows 7 and Windows 8 fell 20% last quarter, the company said. The company said overall Windows revenue fell just 3% in the quarter, as a 12% increase in businesses licensing the software offset the awful consumer sales.

Overall, Microsoft said in a statement that its fiscal second quarter sales topped $24.5 billion -- a 14% jump from the same time last year. Profit rose 3% to $6.6 billion and 78 cents per share.

Wall Street analysts were expecting revenue of $23.7 billion and earnings per share of 68 cents, according to a survey conducted by Thomson Reuters.

Microsoft (MSFT, Fortune 500) shares rose 4% in after hours trading.

"It's a good quarter to ride out on," said BGC Partners analyst Colin Gillis, referring to the impending departure of Microsoft CEO Steve Ballmer.

Related: Microsoft CEO should be...

It was a good quarter for Microsoft, but the real question, he said, is who is going to succeed Ballmer.

"What direction are they going to take the company," he said. "They need to get it done."

Microsoft is expected to announce a successor sometime in the next month or two.

Microsoft's stock, like the broader market, enjoyed a healthy 2013 -- rising 38%. But Microsoft hasn't carried that success into 2014.

Weighing on the stock is uncertainty surrounding who will succeed Ballmer, declining PC sales and the rise of PC alternatives such as smart phones and tablets -- a segment the company has not been able to dominate. To top of page

First Published: January 23, 2014: 4:21 PM ET


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China's factories sputter into the new year

Written By limadu on Kamis, 23 Januari 2014 | 14.44

china pmi

China's factories are growing at a slower pace to start the new year.

HONG KONG (CNNMoney)

HSBC said that its "flash" measure of sentiment among manufacturing purchasing managers fell to 49.6 in January from 50.5 in December.

January's reading raises a red flag, as any number under 50 indicates a deceleration in the manufacturing sector. If factory activity continues to lag in the coming months, it could be ominous for China's economy and pose an even greater challenge for the government's plans to enforce economic reforms.

Experts believe reforms are necessary to sustain the world's second-largest economy, especially as China seeks more stable expansion following decades of ballooning growth.

Related story: Yet another China credit crunch: What's going on?

HSBC economist Hongbin Qu said in a statement that weakness in the manufacturing sector was due to slowing domestic demand. Government policy should shift to focus on boosting growth to avoid a deceleration in the first half of the year, he said.

Related story: China's 7.7% GDP growth beats official target

Other economists said they're holding off from reading too much into the data, due to seasonal fluctuations around the Lunar New Year holiday, which kicks off late next week.

The January dip "looks too far out of step with recent evidence of an improving global business cycle," said Bill Adams, an economist at PNC Financial Services Group. "This release calls for caution -- but not angst."

HSBC's final reading will be released on Jan. 30. To top of page

First Published: January 22, 2014: 10:44 PM ET


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Cheerleader sues Oakland Raiders over wages

oakland cheer

The Oakland Raiders are facing a potential class action over cheerleader compensation.

NEW YORK (CNNMoney)

A member of the Raiderettes -- "Football's Fabulous Females" -- filed suit against the Oakland Raiders football team on Wednesday, claiming she was not paid properly.

Identified in court documents only as "Lacy T.," her allegations included unpaid work, pay below the minimum wage, no meal or rest breaks and untimely pay.

Mike Taylor, director of public relations for the Raiders, has no comment when contacted Wednesday by CNN.

The cheerleader claims that her pay of $1,250 for the season -- including $125 per game -- was less than $5 per hour for appearances at games, rehearsals and charity events. Raiderettes, she said, are not paid until the end of the season and have "fines" for late arrival and other infractions deducted from the paycheck.

Related story: Why football is still a money machine

"I love the Raiders and I love being a Raiderette, but someone has to stand up for all of the women of the NFL who work so hard for the fans and the teams," the plaintiff said in a statement released by her lawyer.

The plaintiff is asking for the suit to move forward as a class action -- meaning other Raiderettes could join -- and sought restitution from the team.

-- CNN's Joseph Miller contributed to this report. To top of page

First Published: January 22, 2014: 11:20 PM ET


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Buyers flocked to foreclosures last year -- and many paid all cash

foreclosure home for sale

The surge in sales of distressed properties comes despite the fact that far fewer Americans lost their homes to foreclosure last year.

NEW YORK (CNNMoney)

Sales of foreclosed and distressed homes made up 16.2% of all home sales last year, up from 14.5% in 2012, according to RealtyTrac. Overall, U.S. home sales were up 10% year-over-year.

And many deals were done in cold, hard cash. All-cash deals accounted for 29.1% of all home purchases last year, up significantly from 19.4% the year before, RealtyTrac said.

The surge in sales of distressed properties comes despite the fact that far fewer Americans lost their homes to foreclosure last year.

Related: Million-dollar housing markets

"It may surprise some to see distressed sales rising in 2013 given that foreclosure starts dropped to a seven-year low for the year," said Daren Blomquist, spokesman for RealtyTrac. "[But] there are still more than 1.2 million properties in the foreclosure process or bank-owned, providing a sizable pool of inventory that the housing market is in the process of absorbing."

Distressed properties are attractive to buyers because they tend to be significantly cheaper. The median home price of a foreclosed or bank-owned property was $108,500 in December compared with $174,400 for non-distressed properties.

Institutional investors, including hedge funds and private equity groups, were buying up homes of all types last year including foreclosures. During the year, 7.3% of all home sales were to investors, up from 5.1% the year before.

Related: Vulture investors flipping their way to big profits

Major markets where investors claimed the largest percentage of sales in December included Jacksonville, Fla., at 38.7%, Knoxville, Tenn., (31.9%), Atlanta (25.2%), Cape Coral, Fla. (24.9%), Cincinnati (19.3%), and Las Vegas (18.2%).

As home prices continue to recover, Blomquist believes there will be even fewer short sales, when a borrower agrees with their lender to sell the home even though they owe more on their mortgage than the home is worth.

Related: Home prices: Your local forecast -- 384 markets tracked

As home prices rise, he said more lenders will be able to afford to take the time to foreclose on a borrower because the value of the home will be higher by the time the process is over. Plus, struggling homeowners could try to hold off on a short sale until they're no longer underwater.

"Sellers may be able to do an equity sale and avoid damage to their credit score if they wait," said Blomquist. To top of page

First Published: January 23, 2014: 12:07 AM ET


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Opinion: Mobility is the problem, not income inequality

Written By limadu on Rabu, 22 Januari 2014 | 14.44

economy for 99

The problem for the 99% is not that incomes for the top 1% have grown faster than everyone else's, says social policy expert Scott Winship. It's because economic mobility has been stagnant for decades.

Washington, D.C. (CNNMoney)

Too many families struggle in poverty, too many workers have given up looking for work, and too many young adults have graduated into a weak economy that will lower their lifetime earnings.

If the economy were stronger, there is reason to believe inequality would not be such a concern. For instance, inequality was high and rising during the late 1990s, but because the growing economy was largely benefiting everyone, few people were worried about income concentration at the top.

What's more, living standards have improved over time for the poor and middle class even as income inequality has grown. For that matter, the growth in inequality has been exaggerated. And contrary to claims that rising income inequality has hurt their economic opportunity, evidence of a link between the two is weak.

Average income in the middle fifth of households rose 66% between 1969 and 2007 and it grew 55% in the bottom fifth. This growth was much slower than it was in the 1950s and '60s. But the slowdown actually began in the 1970s, before income concentration at the top started to take off.

Opposing view: Why growth in income inequality does matter

Economic mobility hasn't changed much either. No research shows a sizable increase in mobility since the mid-20th century. And the most common change found in many studies is so modest (up or down) as to be statistically insignificant.

In the face of this unsupportive research, proponents of the view that inequality has hurt mobility have turned to cross-national research, notably the "Great Gatsby Curve." This chart shows a strong statistical relationship between countries' inequality levels and the mobility their citizens enjoy.

But it's problematic as evidence for several reasons. The most damning: it uses a measure that automatically assigns a country a lower mobility value when its growth in inequality is greater than in other countries.

New research by the creator of the Great Gatsby Curve, which does not automatically adjust mobility downward when there are differences in inequality between nations, suggests that there may be no cross-national relationship between high inequality and low mobility.

While there's reason to believe mobility has not diminished much if at all over time, it has been stuck at unacceptably low levels for decades.

If past patterns hold, 70% of poor children today will fail to make it to the middle class as adults. Four in 10 will be mired in poverty themselves in midlife.

These are not the kind of odds those of us solidly in the middle class would accept for our children. The American Dream is in poor health if children who grow up in the bottom can aspire only to fill the same sorts of jobs as their parents hold.

The challenge is to identify real solutions to the problem of limited mobility. Fifty years after Lyndon Johnson's declaration of war on poverty, we should establish a second front against immobility.

Attacking inequality, however, is unlikely to mitigate either problem. To top of page

First Published: January 21, 2014: 6:25 PM ET


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Opinion: Why growing income inequality matters

fair economy now

The concern about growing income inequality is not about begrudging the wealthy their success, says economist Jared Bernstein. The worry is that it is curbing everyone else's economic potential.

Washington, D.C. (CNNMoney)

First, by giving a major address on the issue, President Obama elevated it to front-page status. Next, high visibility politicians with very different views than the president on such matters, like Sen. Marco Rubio and Rep. Paul Ryan, also embraced the topic. Sen. Rubio called the inequality trends "startling" and agreed that they "deserve attention."

Now, I'll be the first to admit that Washington has been dysfunction junction for a long time now, but I consider this to be progress: Policymakers who agree on almost nothing agree that the level of inequality facing America today is a big problem. The first step to getting better is to recognize you're not well.

Of course, there will always be gaps between the resources of American households at different points in the income scale. There may be some out there who seek equality of outcomes, but I don't know them.

Yet, while we don't always achieve it, most Americans deeply value equality of opportunity.

I believe the reason that policymakers of all stripes are now talking about inequality is that they worry, as do many analysts like myself who've been working on this a long time, that the historically high levels of economic disparity threaten the opportunities of those on the wrong side of the economic divide.

Opposing view: Mobility is the problem, not income inequality

Ask yourself this question: Is America a meritocracy, meaning that regardless of the status of your birth, you're free to go as far as your inherent talents will take you?

It's a question I pose to audiences all the time, and most people recognize that we are not there yet. In fact, we're far from it. Research shows that not only is the correlation between parents' income and education a reliable predictor of how their kids do, but that correlation is higher here than in most other advanced economies.

In other words, while knowing a baby's zip code won't tell you for certain how successful they'll be as a grownup, it tells you more than it should.

But how does this relate to income inequality? First of all, there's a strong, positive relationship between countries with high inequality and that zip code problem. That suggests the two are linked, and that when high levels of income inequality persevere, barriers to getting ahead -- opportunity barriers -- will arise.

Some indicators suggest this process is already at work in the United States:

  • There's a wide and growing gap in how much parents invest in their kids. High-income families spend increasingly more on tutoring, art, sports, books, and so on relative to low-income families.
  • The academic achievement gap on standardized tests between students for low- versus high-income families has increased by 40% over the last 30 years, the period of rising inequality.
  • College attainment has increased much more among kids from wealthy families. The wealthier your family, the more likely you are to go to a top-tier college.

To many Americans, that's why we worry about the heights to which inequality has grown. Not because we begrudge the wealthy their success, but because we want our own kids to be able to realize their economic potential.

And society's growing economic disparities are threatening that most basic aspiration. To top of page

First Published: January 21, 2014: 6:25 PM ET


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Small cars get crushed in crash tests

chevrolet spark crash test

So far, the Chevrolet Spark is the only car in its size class to earn the Insurance Institute for Highway Safety's Top Safety Pick award. Even so, there is inherently greater risk in a car this small, the Institute said.

NEW YORK (CNNMoney)

Of 11 subcompact and minicars subjected to the Institute's small overlap crash test only one, General Motors' (GM, Fortune 500) Chevrolet Spark, did reasonably well.

Six of the cars earned the Institute's lowest rating of "Poor." Those were the Nissan (NSANF) Versa, Toyota (TM) Prius c, Hyundai Accent, the Mitsubishi Mirage, Chrysler Group's Fiat 500 and the Honda (HMC) Fit. The Mazda2, Kia Rio, Toyota Yaris and Ford (F, Fortune 500) Fiesta were deemed Marginal, the second-worst of four possible ratings. Most of these cars have done well in the Institute's other crash tests and in government tests. The Insurance Institute is a private organization financed by auto insurers.

The Spark earned a rating of Acceptable. None of the cars earned the top rating of Good.

In the small overlap test, a vehicle hits a barrier at 40 miles per hour with just one-quarter of its front bumper. The impact occurs on the left side, just in front of the driver's seat. This concentrates crash forces in a small area that's outside of the strong crash safety structures built into most new vehicles.

Many cars that have otherwise earned good crash test scores have done poorly in this test, especially cars based on older designs. On the other hand, 39 cars so far, including the Spark, have earned Good or Acceptable ratings in the test.

Gallery - Cool cars from the Detroit auto show

In the real world, about a quarter of the serious and fatal injuries in front crashes are caused by "small overlap" impacts similar to this, according to the Institute.

Honda and Mazda both pointed out that their small cars were designed before this particular crash test came into existence. Honda unveiled a new, redesigned Fit at the Detroit auto show recently. Honda expects that car, which will go on sale in the Spring, to earn a Good score in this test, the automaker said in a statement.

Nissan said it is reviewing the results as it looks to improve future models. All the automakers, except Mitsubishi, pointed out that their cars have done well in other crash tests. The Insurance Institute has not yet subjected the Mitsubishi Mirage to its other crash tests.

"The IIHS small overlap front crash test evaluation poses specific challenges for all small and lightweight vehicles," Mitsubishi said in a statement, while pointing out that its car did well in several specific criteria including protection of the driver's head, neck and chest.

The two worst-performing cars in this test were the Fit and the Fiat 500, the Institute said. In both cars, the occupant compartment was crushed in and the steering pushed back toward the driver. In the Fit, the driver's head glanced off the airbag before striking the instrument panel. In the 500, the door was ripped off its hinges. These cars were also the only ones in which injuries were deemed likely to both legs, not just one.

In the case of the Spark, the crash test dummy showed a low likelihood of injury and the dummy's movements were well controlled during and after the impact, the Institute said. The lower part of the occupant compartment, in particular, held up well, which helped protect the feet and legs.

The Spark is the only car of its size, so far, to earn the Institute's Top Safety Pick award.

Frontal crash tests like these only indicate how a car will perform in a crash with a similarly-sized vehicle. In real life, however, cars this size are much more likely to hit a larger vehicle, the Institute pointed out. Insurance Institute crash tests have indicated that, in crashes between larger and smaller vehicles, occupants in the smaller vehicle will suffer significantly greater injuries.

"These cars have an inherent safety disadvantage in many kinds of crashes," Insurance Institute spokesman Russ Rader said. To top of page

First Published: January 22, 2014: 12:12 AM ET


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Did you get an email from Target? What you need to know

Written By limadu on Selasa, 21 Januari 2014 | 14.44

target security breach email

Target sent emails like the one shown above to millions of customers affected by the breach. Be careful about scammers trying to mimic them.

NEW YORK (CNNMoney)

Target did indeed do a blast to customers to offer one year of free credit monitoring. The problem is scammers are also on the prowl and are sending out similar emails.

Target even says it has identified and stopped at least 12 scams preying on consumers via email, Facebook and other outlets.

The Target emails went to customers whose personal information was in the Target (TGT, Fortune 500) database. Cyber thieves penetrated the records during the holiday shopping season breach discovered last month and stole info like names, phone numbers and email addresses. The full extent of the hacking is still under investigation.

In the meantime, here's what to do if you see an email from Target pop up in your inbox.

If you've already opened the email: Target has posted a copy of the email it sent out online. So go here to make sure the email you opened, the address it came from, and the link you clicked all matches up.

If it doesn't match, and especially if you clicked a link to an external website and entered personal information, you need to take action quickly, says Credit.com Chairman Adam Levin, who specializes in privacy and identity theft.

First, get a copy of your credit report, check your bank and credit card activity on a daily basis and call the credit reporting agencies to tell them what happened. You can ask to have a fraud alert placed on your account, meaning it will be flagged to lenders if someone attempts to open credit in your name.

If you're really worried, you can request a credit freeze, which prohibits any credit from being extended under your name. But that's a big step because you will have to go through the process of undoing this whenever you need credit again.

If you entered a credit card or debit card number, reach out to those institutions to warn them of potential fraud as well.

Related: Millions getting new debit, credit cards after Target breach

If you haven't opened the email: To avoid any chance of a virus or of falling prey to a potential scam, Levin recommends going directly to Target's website to view the letter you believe has landed in your inbox -- since even opening a fraudulent email could lead malware to be installed on your computer. And if you do open the email, don't click on any links.

You can also visit creditmonitoring.target.com directly to enroll in the free credit monitoring Target is offering. Once there, you will have to enter your email address and will be sent another email within 72 hours with a unique activation code to use in order to sign up for the service. The subject will mention the activation code.

All other correspondence from Target can be found here. The retailer emphasizes that it will never email a consumer and ask for personal information like a Social Security number or credit card information.

But it's not just emails claiming to be from Target that customers need to worry about.

If your personal information was compromised in the breach, that means scammers could contact you pretending to be anyone -- like another retailer or even the IRS.

"These people are now in harm's way -- you have to look really carefully at any email you click on from now on," said Levin. "If there was ever a moment for people to think, 'It could happen to me' ... this is that moment." To top of page

First Published: January 20, 2014: 4:02 PM ET


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China's pollution crisis threatens car sales

china autos

Pollution controls could put a damper on auto sales growth in China.

HONG KONG (CNNMoney)

The Chinese government is limiting the number of new vehicle registrations in many major cities this year in hopes of clearing the country's thick, smoggy air. Sales in the largest cities could be limited to 300,000, while a limited number of smaller cities will have caps closer to 25,000. On top of that, a group of cities are even banning some cars from the streets on certain days to lighten traffic and decrease pollution.

Auto companies have in recent years expanded rapidly in China, where growing demand and rising wages have fueled a car-buying boom. China is now the world's largest car market, cementing the country's status as a top destination for automakers. But now, the government's new rules are expected to dampen China's auto-spending spree.

In the short term, auto sales could benefit as consumers race to buy cars before the new restrictions are implemented. But that sugar rush won't last -- growth in passenger vehicle sales is expected to slow from an estimated 15% in 2013 to 10% this year, according to a report by Japanese brokerage Nomura.

Related: Top 10 luxury cars in China

"Surging sales are expected to see a slowdown [in 2014] as government restrictions curbing new vehicle sales are enforced across cities in China, as the levels of pollution hit record highs in China," said Namrita Chow, an analyst at market research firm IHS.

Last year, total motor vehicle sales in China grew by 14% over the previous year to reach 22 million vehicles, according to the China Association of Automobile Manufacturers. That's nearly twice as fast as the 7.6% growth rate posted in the U.S., where 15.6 million vehicles were sold.

Related story: Ford unveils all-new F-150 in Detroit

Companies like Ford (F, Fortune 500) -- which boosted sales by 50% to almost 1 million units last year in China -- could be hardest hit by new restrictions.

The U.S. automaker's Ford Focus led the competition as the top-selling model in China, followed by the Volkswagen (VLKAF) Lavida, Toyota (TM) Corolla, Buick Excelle and the Volkswagen Sagitar, according to a ranking by IHS.

Related story: Nissan takes aim at London taxi market

Automakers could skirt a slowdown in the major cities by shifting resources to smaller Chinese cities where government restrictions have not yet been imposed.

"These smaller-tier cities are also where a large proportion of new, first-time car buyers reside, and it is these buyers which ... automakers aim to entice," Chow said.

Some companies may also pursue growth in other emerging markets, such as Indonesia or Brazil, she said. To top of page

First Published: January 20, 2014: 11:32 PM ET


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Many consumers don't know why they're denied credit

credit denial

Even after reading explanations from lenders, it's still unclear to many consumers why they've been denied credit.

NEW YORK (CNNMoney)

Under rules that took effect in 2011 through the Dodd-Frank Act, consumers who are declined credit or given less favorable terms than they applied for are provided with their credit score, along with a two-digit reason code and a brief explanation of what that code means.

This requirement was meant to help consumers understand what they needed to do to improve their credit. But in a survey of 200 lenders conducted by credit scoring company VantageScore Solutions, more than 75% said they worry that consumers don't understand these disclosure notices, and only 10% said their customers "understand reason codes well."

Related: Free FICO credit scores coming to millions

The explanations of these codes are typically written by score developers and contain confusing terminology, or are too short to provide any helpful information, said John Ulzheimer, credit expert at CreditSesame.com.

For example, the explanation given for reason code 39 is: "Your worst bankcard or revolving account status is delinquent or derogatory." But in simpler terms, that means your credit report shows an account where a payment was at least 30 days late.

Reason code 85, meanwhile, states: "You have too many inquiries on your credit report." For someone who doesn't know what an inquiry is or how it occurs, this can be confusing. But really, a so-called "inquiry" occurs when a lender runs a credit check -- so every time you apply for a credit card or auto loan, your score can be lowered by 10 to 20 points.

Related: Credit score killers

Another reason people are having a hard time understanding the explanations: only 10% of lenders translate disclosures into Spanish, meaning many Spanish-speaking applicants are unable to read the explanations at all.

Almost half of the lenders surveyed said this lack of clear communication is causing frustration among customers. About 38% said it would help to give applicants tips for improving their credit scores, and 33% said it would help if explanations were written "in clearer and easier to understand language."

To help consumers understand the reasons they are denied credit, VantageScore launched a website last year, ReasonCode.org, where you can type in the reason code you've received and get a much easier-to-understand, longer explanation of the code and what you can do to improve your credit. And in response its survey findings, the company announced that it has just translated the website into Spanish and created a video detailing how reason codes work. To top of page

First Published: January 21, 2014: 12:13 AM ET


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Staples' mini post offices draw union ire

Written By limadu on Senin, 20 Januari 2014 | 14.44

NEW YORK (CNNMoney)

Workers are concerned the experimental locations -- staffed by Staples (SPLS, Fortune 500) employees, not Postal Service employees -- will lead to the closure of traditional post offices and the loss of jobs with good wages and benefits.

"The Staples-USPS deal has to be looked at in the context of a drive towards privatizing the U.S. Postal Service," said Mark Dimondstein, president of the American Postal Workers Union. His group is a network of local unions that represents over 220,000 current and retired mail workers.

"We are willing to support this program as long as it's staffed with United States Postal Service employees," he said.

Staples declined to comment on the unions' concerns and said it doesn't discuss agreements with vendors, but said the pilot program is intended to offer "added convenience for our customers."

"Staples continually tests new products and services to better meet the needs of our customers," said spokeswoman Carrie McElwee.

Related: Price of stamps to go up more than expected

And Postal Service spokeswoman Darleen Reid-MeMeo rejected the idea that the Staples program was "an attempt to replace stand alone Post Offices."

The post office, whose financial struggles are well-known, is adapting, Reid-MeMeo said. The Staples pilot is the next step of a program that already has over 65,000 retail partners -- including grocery stores and pharmacies that sell stamps and village stores that sell flat-rate boxes in rural areas.

Sarah Ryan, a faculty member at The Evergreen State College in Washington, said she thinks the Staples partnership does little to help traditionally underserved postal customers.

"The interesting thing is this won't do anything to help people who are in rural or lower income neighborhoods," Ryan said. She has studied privatization and the Postal Service and is a former retail clerk at a Seattle post office and held elected positions in the local postal union.

Related: Can package delivery save the Postal Service?

"This is the first time since the Sears deal that there's an effort to move the retail into a national, corporate chain," she said.

In the 1980s, the Postal Service and Sears (SHLD, Fortune 500) struck an arrangement similar to the one at Staples today. Postal unions protested and the program was eventually canceled.

This time around, Dimondstein said, the union president, said workers want guarantees their jobs will be protected and not outsourced to Staples.

"We do not have any problem with the people of this country getting expanded access to postal service," said Dimondstein. "We are willing to support this program as long as it's staffed with United States Postal Service employees."

The Postal Service counters are currently available at just over 80 Staples stores in and around San Francisco, San Diego, Atlanta, Pittsburgh and Worcester, Massachusetts, said Reid-MeMeo, the USPS spokeswoman. She said the postal service is "always looking to expand access to postal products and services in locations where our customers frequent."

-- CNN's AnneClaire Stapleton contributed to this report To top of page

First Published: January 19, 2014: 9:04 PM ET


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