Regulators pave way for Internet "fast lane" with net neutrality rules

FCC chairman Tom Wheeler, a former cable industry lobbyist.

NEW YORK (CNNMoney)

The news quickly drew condemnations from net neutrality activists, who say the proposal from the Federal Communications Commission will give large companies that can afford to pay for priority access a permanent advantage over smaller competitors.

The proposal follows a January court decision that struck down the FCC's previous net neutrality rules, which barred Internet service providers like Verizon (VZ, Fortune 500) and Comcast (CMCSA, Fortune 500) from blocking or "unreasonably discriminating" against online content. Those regulations were challenged in 2011 by Verizon, which claimed the move overstepped the commission's legal authority, and the FCC has since been working to craft new rules that will pass legal muster.

The rules to be proposed on Thursday, according to an FCC spokesman, will require ISPs to offer "a baseline level of service" to their subscribers while allowing them to "enter into individual negotiations with content providers." That means that companies like Amazon (AMZN, Fortune 500), eBay (EBAY, Fortune 500) and Netflix (NFLX) could conceivably pay ISPs to ensure that their sites load for Web users faster than those of competitors.

Related: How net neutrality fight may change your Internet

In all cases, the FCC proposal says, Internet providers must act in a "commercially reasonable manner," with agreements between ISPs and content providers subject to review by regulators on a case-by-case basis.

"Exactly what the baseline level of service would be, the construction of a 'commercially reasonable' standard, and the manner in which disputes would be resolved, are all among the topics on which the FCC will be seeking comment," the FCC spokesman said.

The commission will vote on the proposed rules May 15 before putting them out for comment. In the meantime, Net freedom activists are already crying foul.

"If it goes forward, this capitulation will represent Washington at its worst," Todd O'Boyle, program director of Media and Democracy Reform Initiative at Common Cause, said in a statement. "Americans were promised -- and deserve -- an Internet that is free of toll roads, fast lanes, and censorship -- corporate or governmental."

Craig Aaron, president of the media freedom group Free Press, said the FCC was "aiding and abetting the largest ISPs in their efforts to destroy the open Internet." He said the FCC proposal would create the incentive for Internet providers to manufacture congestion on their networks and then charge content providers for the ability to avoid it.

Verizon spokesman Ed Mcfadden declined to comment directly on the FCC proposal, but said his company is committed to letting customers "access the Internet content they want, when they want and how they want."

"Given the tremendous innovation and investment taking place in broadband Internet markets, the FCC should be very cautious about adopting proscriptive rules that could be unnecessary and harmful," Mcfadden said.

Comcast and AT&T did not immediately respond to requests for comment.

Related: New chapter begins in net neutrality fight

The FCC's planned rules relate specifically to broadband, which is used for most home Internet connections. They won't cover the mobile Web, which is much more lightly regulated.

Concerns about traffic discrimination have already arisen in the mobile world. Earlier this year, AT&T (T, Fortune 500) announced a "sponsored data" plan for mobile customers in which content from paying businesses won't count against monthly data caps. Verizon and AT&T have also previously blocked use of the Google (GOOG, Fortune 500) Wallet app, which competes with their own offerings.

The FCC rules also won't cover deals like the one reached earlier this year between Netflix (NFLX) and Comcast, in which the online video company reluctantly agreed to pay for a direct connection to Comcast's network to boost lagging streaming speeds. That's because the proposal only relates to what ISPs do with content in the so-called "last mile" of their networks, where they connect directly to the homes of customers.

Netflix CEO Reed Hastings has called for the FCC to implement "stronger" net neutrality rules that would also cover connections between networks.

First Published: April 23, 2014: 7:42 PM ET

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What stumps Warren Buffett? Minimum wage

NEW YORK (CNNMoney)

"I thought about it for 50 years and I just don't know the answer on it," Buffett told CNN Wednesday. "In economics you always have to say 'and then what?' And the real question is are more people going to be better off if it is raised," he said.

Buffett also said that the current federal minimum of $7.25 is not a living wage. If raising it didn't hurt employment he'd want it up significantly higher. "You do lose some employment as you increase the minimum wage, if you didn't I would be for having it $15 an hour," he said.

Many states and cities have recently raised their minimum wage rate above the federal minimum and President Obama is pushing for Congress to raise the nationwide rate to $10.10 an hour.

Buffett said he's not arguing against raising the minimum wage, but suggests that increasing the earned income tax credit may be a better way to attack the problem.

The EITC is an antipoverty program designed to encourage people to work by providing a credit on wages.

Related: Many low-wage workers not protected by minimum wage

"I know that if you raise the earned income tax credit significantly, that would definitely help people who've gotten the short stick in life," Buffett said.

Buffett conducted media interviews in New York after a lunch that brought in a $1 million donation for a charity called GLIDE. The charity runs a number of anti-poverty and educational programs in San Francisco, a city with one of the highest levels of inequality in the country.

The booming tech industry and high-paid executives in the Silicon Valley area have been blamed for rising rent prices pushing some people out of their homes.

Over the past 14 years, Buffett has raised nearly $16 million for GLIDE by auctioning off the opportunity to have lunch with the investing guru.

"I'm not rich because somebody is poor. But some people are poor because the system does not reward particular skills," Buffett said. "Some of them have very limited skills in terms of what it brings them in a market system," he said.

- CNN's Poppy Harlow contributed to this report.

First Published: April 23, 2014: 6:35 PM ET

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Obama fails to secure breakthrough in Japan trade talks

The Obama administration was seeking a breakthrough on trade talks during a trip to Japan.

HONG KONG (CNNMoney)

The unwieldy trade pact is a major priority for the Obama administration, but progress has stalled after 20 rounds of negotiations spread over a period of years have failed to produce a consensus.

The latest hang-ups are over Japan's efforts to protect agricultural products including beef, rice, sugar and pork. In the same vein, Washington is hoping to protect U.S. automakers from Japanese competitors.

Advisers from both countries had been engaged in negotiations in the lead up to President Obama's trip to Japan, and analysts suggested that if significant progress were made, details would be announced at Thursday's joint press conference.

Yet no breakthrough materialized, leaving both leaders to say only that the initiative remains a priority and talks will continue.

"We are closer to agreement on issues like automobiles and agriculture," Obama said. "Now is the time for bold steps that are needed to reach a comprehensive agreement, and I continue to believe we can get this done."

Twelve countries -- Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the U.S. and Vietnam -- are taking part in the TPP talks. Together they make up 40% of the global economy.

The agreement has the potential to knock down tariffs and import quotas, and open new Pacific markets to American companies. The U.S. and Japan -- the first and third largest economies in the world -- anchor the deal, which does not include China.

Related story: Russia looks to Asia for trade cushion

Yet the TPP remains highly controversial in many of the countries currently involved in negotiations.

Key members of the U.S. Congress say they are being kept in the dark about pact details, and some members of the president's own party have voiced concern over the treaty's impact on jobs.

Significant political opposition makes it unlikely that Obama will be able to push any agreement through Congress before the 2014 mid-term elections.

Analysts at the Eurasia Group said that Japanese Prime Minister Shinzo Abe is well aware of this dynamic, making concessions unlikely in the near term.

" [Abe] thus has little incentive to respond to U.S. demands that Japan open its agriculture, services, and auto sectors before Obama can ensure speedy U.S. ratification," the analysts wrote in a recent report.

First Published: April 24, 2014: 1:26 AM ET

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Friday Links

NEW YORK (CNNMoney)

A weekly collection of design, data and interactive links.

Photo/Video
Onion Skin | An installation by Olivier Ratsi.
Project Ara | A smartphone made by DARPA.
Binkbeats | Windowlicker by Aphex Twin.
Strength | Deutsche Bank media wall.
The Tale of the Plump Bird | Short animated video by Saki Iyori.
Scenes of Spring | Photographs from The Atlantic's InFocus blog.
Ornithology S. | Animated 4-color screen prints on bristol paper.

Design/Data viz
Responsive Man | Responsive layout of the human face.
Affordances Matter | A detailed look at iOS 7's shift key.

Code
Perspective Transformation II | Perspective example using d3.js
Unix Command Line | For artists and activists.

See last week's links

Have a nice weekend!
@dubly and @talyellin

First Published: April 18, 2014: 9:37 AM ET

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Get out from under a too-heavy workload

Buried by tasks on the job? Here's how to speak up if you're maxed out, without sabotaging your next promotion.

(Money Magazine)

Consider it a form of flattery: With companies today demanding that employees work faster while tackling more complex tasks, the nimble professionals who "get it" have been deluged, says Anat Lechner, associate professor at NYU's Stern School of Business.

"When you're that kind of person, everyone knows who you are." Lucky you.

Here's how to speak up if you're maxed out, without sabotaging your next promotion.

Speak to the firm's interests

Your manager probably hasn't thought about what else is on your plate when she asks you, in passing, to take on a new proposal.

It's up to you to speak up if you don't have bandwidth.

"But you have to be able to react within seconds," says New York City career coach Caroline Ceniza-Levine.

Related: Don't let divorce wreck your finances

Keep a running tally of all your projects, so you'll be ready to respond. Then, rather than whining to the boss that you already do the job of five people, you can explain how taking a new project will prevent you from achieving some other equally important task, says Atlanta executive communications coach Darlene Price.

You might say: "Jim, the client in New York needs my attention this week so I can close the deal, which is worth $1 million. What should we do?"

Related: Baby on the way? Time to make a budget

Of course, the right approach depends on your manager's personality and the security of your job. You may find it safer to agree to a task but ask for the resources you need to do it. "Say, 'Yes, but to do that, I need x, y, or z,'" suggests Lechner.

Name the right recipient

Aim to hold on to high-profile jobs and offload work that won't help you advance. Instead of letting the duties fall upon your peers, who may not be pleased to pick up your discards, suggest that a junior colleague take an unwanted project as a stretch role.

"Something you don't want to do can be useful to someone else," says Ceniza-Levine.

Draw a line in the sand

If a manager essentially tells you to suck it up, you may be part of a workaholic culture or chronically understaffed department where the only way to scale back is to leave, says Price.

Once you have a "walkaway" strategy, consider making a final attempt with your boss.

Related: Budgeting for a new home, and a disability

One executive Price coached -- who traveled so often her 6-year-old asked her where she lived -- tried repeatedly to get her manager to reduce her business trips. Finally she told him she couldn't accept the working conditions and asked if he'd write her a letter of recommendation. "That called his bluff," says Price.

With this tactic, you've got to be ready to hear "buh-bye" -- but you may be better off in a new job anyway.

First Published: April 18, 2014: 5:00 PM ET

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Lara Spencer promoted to 'GMA' co-host

NEW YORK (CNNMoney)

The promotion puts Spencer on par with George Stephanopoulos and Robin Roberts, the other two co-hosts, and means she'll be more visible during the 7 a.m. hour of the top-rated morning show.

"GMA" has weathered a number of cast changes in recent months: Weather anchor Sam Champion was replaced by Ginger Zee in December, and news anchor Josh Elliott was replaced by Amy Robach a few weeks ago. Two new contributors, Michael Strahan and Tony Reali, have been announced since Elliott's departure.

Spencer's promotion is most likely the last in this series of changes. It was announced about a month after she signed a new contract with ABC News.

Related: How things got ugly between ABC and Josh Elliott

Spencer was a host of the entertainment newsmagazine "The Insider" before joining "GMA" in 2011, in a job created for her -- "lifestyle anchor." Her signature segment has been the "Pop News Heat Index," an 8 a.m. hour summary of entertainment and pop culture news stories.

Friday's promotion affirms how the morning show has evolved. Over time, Spencer has played a bigger part at both 7 and 8 a.m. Case in point: She recently interviewed Vice President Joe Biden at a White House event with the original "Rosie the Riveters," whom Biden said represented "the start of the first's women's liberation movement."

Her promotion was announced by the new president of ABC News, James Goldston, who was the producer in charge of "GMA" back in 2011. Goldston said in an internal memorandum that "Lara is clearly an essential ingredient in the success we have enjoyed."

Two years ago this week, "GMA" began to beat NBC's "Today" show in the morning TV ratings race, ending a 16-year winning streak by "Today." Despite the cast shakeups, "GMA" remains firmly in first place; last week the show led "Today" by 279,000 viewers between the ages of 25 to 54, a key demographic for news advertisers. ABC said that win represented the widest gap between the rival shows in three months.

First Published: April 18, 2014: 3:16 PM ET

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Michaels hack hit 3 million

A data breach at Michaels craft stores lasted eight months.

NEW YORK (CNNMoney)

The news comes three months after the nation's largest crafts chain told customers it learned of a possible hack. It's been investigating since then.

Some customers' credit and debit card numbers as well as expiration dates were compromised, but the company said there is no evidence that information such as a customers' names or PINs were stolen.

The breach occurred between May 8, 2013 and Jan. 27, 2014 and affected about 7% of transactions made with cards during that time. Not all stores were impacted and a "limited number" of those cards were subsequently used fraudulently, Michaels said.

The Michaels subsidiary Aaron Brothers was also hacked. Information from another 400,000 cards was potentially stolen at the Aaron Brothers stores between June 26, 2013 and Feb. 27, 2014.

Related: What you need to know about the Heartbleed bug

"We want you to know we have identified and fully contained the incident, and we can assure you the malware no longer presents a threat to customers while shopping at Michaels or Aaron Brothers," wrote CEO Chuck Rubin in a post on the company's website.

The initial Michaels announcement came just weeks after Target (TGT, Fortune 500) also disclosed it was hacked. 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.

First Published: April 17, 2014: 7:23 PM ET

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8 million sign up for Obamacare

NEW YORK (CNNMoney)

But the final enrollment figure remains to be seen: The White House has not released how many people have fully enrolled, which requires paying their first premium.

The open enrollment period ended on March 31, though people in some states are still able to sign up if they had already begun the application process.

The White House also said that 28% of those signing up on the federal exchange are between ages 18 and 34. The enrollment of young adults is being closely watched since they are presumed to be healthier and less costly, which will help offset the higher expenses generated by older enrollees.

Related: Got Obamacare, can't find doctors

The success of Obamacare's initial year will have an impact on insurance premium increases for 2015.

National enrollment figures, however, are not that significant, experts have said. Ultimately, it's more important that the final enrollment tally -- and the share of young adults -- matches with insurers' expectations. Insurers interviewed last month said sign-ups were tracking closely to their projections.

The White House used the occasion to again tout the fact that Obamacare has helped slow the rise of health care costs to record low levels. In the decade before Obamacare, employer-based insurance costs rose almost 8% a year. Last year, it increased at half that rate, President Obama said Thursday in a press conference.

Obama also chastised the governors and lawmakers in 24 states who have opted not to expand Medicaid, which he said was purely for political reasons. Many adults below the poverty line in these states are not eligible for Medicaid, nor do they qualify for federal subsidies to buy private insurance on the exchanges. Some 5.7 million people will remain uninsured because of this, according to the White House.

"It's wrong," the president said. "Those folks should be able to get insurance like everybody else."

Related: Medicare doctors - who gets the big bucks & for what

First Published: April 17, 2014: 5:09 PM ET

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Wealthy investors flock to fine art funds

Art investment funds might choose to invest in "blue-chip" works, such as Andy Warhol's dollar sign series.

HONG KONG (CNNMoney)

The name says it all: These funds invest in fine art and seek returns by acquiring and selling high-end pieces for profit.

Growth in art investing has helped smash records for international art sales, which hit $66 billion last year. And the idea has been catching on with the very rich -- a group that already uses collectors' items and luxury goods as investments -- in the years following the global financial crisis.

"People are looking at new areas to invest in, and at the moment art is one of those -- it's making people money," said Jon Reade, co-founder of Hong Kong-based art brokerage Art Futures Group.

Related story: Chinese snap up fine art for use in laundering schemes

As with stocks, fund managers might buy pieces they believe are currently undervalued, perhaps from emerging artists. Funds can also buy into "blue-chip" artists -- similar to blue-chip stocks, these are top artists whose coveted works may offer more reliable returns.

Some art investment funds focus on investing in art from a certain region, a particular style period, or a specific medium, such as photography.

Another strategy is to buy in bulk, from a gallery or artist nearing bankruptcy, or to arrange for pieces to be exhibited -- a move that can help increase value.

Fund managers try to predict when a certain work will peak in value -- the golden moment to sell for a profit. To accomplish this, managers track a variety of indicators from auction houses, curators and galleries that can illuminate otherwise murky trends.

These funds can carry a hefty price tag -- London's Fine Art Fund Group requires a minimum investment of $500,000 to $1 million per investor.

"It's a very significant threshold, so it's not a fund for widows, orphans or retail investors," said CEO Philip Hoffman. "It's purely for high net worth and institutional type investors."

Related story: Where the rich stash their toys

Art funds are relatively new, and hold total assets of roughly $2 billion worldwide, according to the Art Fund Association, an industry group. That's still tiny compared to the $2.6 trillion hedge fund industry.

But related businesses are already springing up to support investing in art, such as freeports -- highly secure, tax-free places to stash fine art and other luxury items.

Future demand for art funds is expected to come from Asia, and especially China. Chinese demand boosted the global art fund market by 69% in 2012 alone, according to a Deloitte report.

Art investing is attractive to the Chinese due to limited investment options in the country. Plus, it promises big gains -- China's contemporary art market has gained roughly 15% each year in the last decade, while stocks have been largely flat, said New York University professor Jianping Mei, the developer of a fine art index.

Critics say a lack of regulation and the opaque nature of the market make art one of the riskiest investment options out there. Some have even accused wealth managers of exploiting the lack of transparency to bid up certain artists or works in order to raise the value of their funds.

Related story: Quarter sells for a record $1.5 million

And art is not as liquid an investment as assets such as stocks or bonds. Investors should expect to hold pieces for years, and be prepared to absorb insurance and storage costs during that time.

But supporters say these characteristics make art an extraordinary and rewarding investment.

"You get the benefit of a beautiful work of art you can enjoy on your wall," said Diana Wierbicki, who specializes in art law at Withers. "It's also an asset that is appreciating in value, because it's a market that's so strong."

First Published: April 17, 2014: 10:07 PM ET

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Investors cheer India election's reform potential

HONG KONG (CNNMoney)

Mumbai's benchmark Sensex index has trounced its Asian peers in recent months, hitting a record high last week and gaining 7% since the start of the year. The rupee has strengthened too, clawing its way back from a dismal performance in 2013.

Much of the optimism hinges on forecasts that India's 815 million voters will make Bharatiya Janata Party candidate Narendra Modi the next prime minister.

Victory for a Modi-led coalition would end the Congress Party's dominance, and create an opening for a new government to implement economic reforms.

Analysts say India would benefit greatly from changes to its tax code, a reduction in excessive bureaucracy and more efficient agricultural policies. Momentum on these long-promised reforms stalled under the leadership of the Congress Party.

India's potential for growth was once mentioned in the same breath as that of China. But the world's second most populous nation and biggest democracy has failed to deliver and its economy is just a fifth the size of its Asian rival.

Economic growth has fallen below 5% in recent quarters, some of the lowest levels in years. The currency has lost more than a third of its value since 2011.

Observers don't expect much improvement this year, a troubling sign for one of the world's top 10 economies.

Modi has presented himself as a candidate in the mold of a CEO, campaigning on his economic record as head of Gujarat state. Investors are hoping that he will be able to conjure some of the same magic on a bigger stage.

Related story: Trial by fire for India's new central banker

But there are plenty of arguments for taking a more cautious view before the election concludes in the middle of May.

India's mammoth exercise in democracy is notoriously difficult to forecast, and polling data is thin. Even if the BJP does well in the vote tally, the party's ability to govern could be hamstrung by its eventual coalition partners.

In addition, the BJP may prove to be less enthusiastic about economic reforms than some observers imagine.

Eurasia Group analysts wrote recently that they expect only "piecemeal improvements," noting that the BJP is not resolutely free-market oriented. Instead, they said, the BJP should be characterized primarily as a nationalist party.

The election will also do little to change India's fractious legislative process, which can even trip up parties with plenty of political capital to burn.

"We continue to believe that the new government's potential accomplishments will be substantially more modest than current market expectations," the Eurasia Group analysts said.

Related story: Investors dip a toe back in emerging markets

Many observers have also expressed concern over Modi's association with Hindu nationalist causes -- a potentially destabilizing agenda.

Much of the criticism centers on Modi's handling of riots between Muslims and Hindus in 2002 that resulted in the deaths of 2,000 people. Modi was accused of not responding quickly or adequately to the tumult, but he has denied any responsibility.

Some are not convinced. The Economist won't back Modi, saying the candidate has stonewalled and refused to explain his role in the violence.

Should Modi choose to pursue a controversial agenda in office, investor sentiment could sour quickly.

First Published: April 16, 2014: 10:30 PM ET

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