Bill Gates no longer Microsoft's biggest shareholder

Bill Gates sold nearly 8 million shares of Microsoft over the past two days.

NEW YORK (CNNMoney)

In the past two days, Gates has sold nearly 8 million shares of Microsoft (MSFT, Fortune 500), bringing down his total to roughly 330 million.

That puts him behind Microsoft's former CEO Steve Ballmer who owns 333 million shares.

Related: Gates reclaims title of world's richest billionaire

Ballmer, who was Microsoft's CEO until earlier this year, was one of Gates' first hires.

It's a passing of the torch for Gates who has always been the largest single owner of his company's stock. Gates now spends his time and personal fortune helping run the Bill & Melinda Gates foundation.

The foundation has spent $28.3 billion fighting hunger and poverty since its inception back in 1997.

First Published: May 2, 2014: 5:34 PM ET

14.44 | 0 komentar | Read More

Are rich investors overconfident?

57% of rich investors are in high spirits.

(Money Magazine)

Five years into the bull market, 57% of well-off clients polled by wealth manager deVere Group are bullish on the next 12 months -- the most since 2007.

Skip the celebration: Optimism usually peaks as the good times end. Instead, follow this three-step plan for handling the emotional side of investing.

Sober advice

Do more research. Watch for other ominous signs of overconfidence.

One noted by Leuthold Weeden chief investment officer Doug Ramsey: Trading in speculative penny stocks jumped last year to its highest level since 2007.

Stay on target. Are you too prone to trading as the market's mood -- and yours -- shifts? Go for set-it-and-forget-it options like target-date funds.

In 2008, while panicked savers yanked $229 billion from stock funds, target-date funds saw inflows of $42 billion.

Related: Tools to make your money grow

Watch your wallet. As market confidence rises, resist the urge to splurge on stuff other than stocks.

For every $1 increase in stock wealth, consumer spending jumps 2¢, according to Moody's Analytics chief economist Mark Zandi.

In a bubbly mood? Go ahead, congratulate yourself on getting that much closer to your long-term wealth goals!

First Published: May 2, 2014: 6:55 PM ET

14.44 | 0 komentar | Read More

Buffett's Berkshire misses estimates

Berkshire Hathaway earnings miss analysts' earnings per share expectations by $23.

NEW YORK (CNNMoney)

Berkshire Hathaway (BRKA, Fortune 500) is a broad-based investment conglomerate whose holdings include insurance, utilities, railroad, finance, manufacturing and retail companies such as Geico insurance, Burlington Northern Santa Fe railroad, and Dairy Queen.

The company earned a profit of $4.7 billion during the first quarter, down from about $4.9 billion during the same period last year.

Operating earnings per share, came in at $2,149 for the quarter, missing expectations from analysts polled by Thomson Reuters by about $23.

But, Class A Berkshire shares were trading $192,255 Friday and shares are up about 8% this year, beating the broader market.

The underwriting insurance sector took the biggest hit during the first quarter, dragging down the conglomerate's results.

First Published: May 2, 2014: 6:59 PM ET

14.44 | 0 komentar | Read More

New York Stock Exchange gets in trouble

NEW YORK (CNNMoney)

The NYSE agreed to pay a $4.5 million penalty for failing to comply with certain internal rules and not having sufficient rules on the books, federal securities regulators said Thursday.

The Securities and Exchange Commission said the NYSE, two affiliated exchanges, and a broker owned by the exchanges, Archipelago Securities, agreed to retain an independent consultant to review their business practices.

The move comes in the wake of a best-selling book by Michael Lewis that raises questions about the relationship between stock exchanges and high-frequency traders. Critics say the exchanges offer services that cater to traders who use speed to gain an unfair advantage over slower investors.

But the SEC's order does not suggest that the stock market is "rigged," said Andrew Ceresney, director of the SEC's Division of Enforcement, on a conference call with reporters.

"The message of this case is that exchanges have to have rules and they must enforce those rules," he said.

Related: Justice Department is probing high frequency trading

The SEC's order does not allege that any investors were harmed as a result of the violations, which occurred between 2008 and 2012.

A spokesman for IntercontinentalExchange Group (ICE), which owns the NYSE, declined to comment.

Related: Wall Street responds to Flash Boys

The commission faulted the NYSE for not having a rule that sets uniform terms of so called "co-location" contracts, which allow certain customers to install their computer servers near those operated by the NYSE.

The SEC did not say that co-location services are against the rules, but that exchanges should ensure that all customers be offered the same terms.

The commission also faulted the NYSE and its affiliates for violations related to trading in an "error account" at Archipelago Securities, or ArcaSec. In 2011, a trading glitch caused ArcaSec to acquire erroneous positions in 12 stocks that were worth a combined $4 billion.

As a result of that incident, an NYSE affiliate exchange incurred a $99 million capital shortfall for two days, which it did not immediately disclose to the SEC, in violation of the rules, according to the order.

First Published: May 1, 2014: 3:13 PM ET

14.44 | 0 komentar | Read More

Seattle mayor unveils plan for $15 minimum wage

Supporters of a $15 minimum wage have showed up at Mayor Ed Murray's public events.

NEW YORK (CNNMoney)

Mayor Ed Murray unveiled on Thursday his proposal for a $15 minimum wage, a plan he said has broad support across the local government, business and labor communities.

Washington already has the nation's highest state-level minimum wage of $9.32. The Seattle proposal would be more than double the current federal minimum wage of $7.25.

Mayor Murray's plan would take effect over several years and apply first to some large businesses starting in 2017, and ultimately to all businesses by 2021.

All told, the wage hike will apply to 102,000 workers, according to 15 for Seattle, an advocacy group that supports the plan. Annual increases would then be tied to inflation.

The city council will begin considering the proposal next week and hold a series of public meetings this month, Councilmember Sally Clark said.

Related: What is the minimum wage in your state?

Murray, a Democrat, pitched his plan as a compromise between supporters of a more immediate wage hike and concerned business owners. It was crafted by a panel he appointed that includes both business and labor leaders.

"Throughout this process, I've had two goals: to get Seattle's low-wage workers to $15-per-hour while also supporting our employers, and to avoid a costly battle at the ballot box between competing initiatives," Murray said. "We have a deal that I believe accomplishes both goals."

Related: Congress stalls, but states act

Critics say the plan takes too long to phase in for many workers.

"This proposal does not live up to the wishes of Seattle's workers," said city council member Kshama Sawant, who served on the mayor's panel but opposes the plan. "Unfortunately it also reflects the attempts of business to water down what the working people want."

Both Sawant, a socialist, and Murray won their seats in November campaigning on a $15 minimum wage.

Voters in nearby SeaTac approved a $15 minimum wage in November, but many workers there haven't yet seen the increase. The law is currently tied up in court over whether it applies to the Seattle-Tacoma airport, which employs many of the community's workers.

Several states have passed or are considering proposals to adopt a $10.10 an hour wage, the level that many congressional Democrats and President Obama want to see passed through Congress. But an attempt to do that failed in the Senate this week. The federal rate has not increased since 2009.

-- CNNMoney's Jeanne Sahadi contributed to this report

First Published: May 1, 2014: 4:35 PM ET

14.44 | 0 komentar | Read More

Pfizer ups its mega bid for AstraZeneca

Pfizer has made a new offer for AstraZeneca.

HONG KONG (CNNMoney)

Pfizer (PFE, Fortune 500)'s increased offer is worth £50.00 ($84.47) per AstraZeneca share, a premium of around 32% over the company's stock price in mid-April. At that price, AstraZeneca (AZN) would be valued at £63 billion ($106.4 billion).

A deal of that scale would represent the biggest foreign takeover of a British company. It would also likely be the second biggest pharmaceutical deal after Pfizer's $112 billion purchase of Warner Lambert in 2000.

AstraZeneca said its board will meet to discuss the proposal and make an announcement when appropriate.

If the deal is done, Pfizer has said the merged company would be incorporated in Britain, but headquartered in New York and listed on the NYSE.

The potential takeover has sparked some worries in Britain about the impact on the country's science and medical industries.

A senior government adviser said Friday that the U.K. should have powers to intervene in takeovers by foreign firms to protect national interests.

"There are so many issues about the science base, about the supply chains, about employment prospects that ought to be explored and I don't see any way in which this can be adequately done unless the government has reserve powers," Michael Heseltine told the BBC.

Pfizer (PFE, Fortune 500) management has been on a charm offensive in recent days, aiming in part to allay those fears. CEO Ian Read visited London this week, and pledged to make new investments in Britain in a letter to Prime Minister David Cameron.

"We believe the industrial logic for a combination between Pfizer and AstraZeneca is compelling," Read wrote. "We would therefore like to assure the government of our long term commitment to the U.K."

In addition to an expanded drug portfolio -- particularly in cancer treatments -- a deal would provide a use for some of the billions in profits Pfizer holds overseas. Bringing the cash home to the U.S. would likely result in a higher tax bill.

Related story: Pfizer's massive tax play for AstraZeneca

The deal would be the latest in a wave of pharmaceutical consolidation. The trend is being fueled in part by the expiration of lucrative patents, and a need for deep pockets to finance new research and development. The M&A activity is also inspired by the expectation that low interest rates will not last for much longer.

Deals worth $128 billion have been announced in the sector so far this year, according to Dealogic, the highest tally since 2009.

Related story: Health care deals hit record high

Talk of a potential acquisition picked up earlier this week after Pfizer revealed it had made an offer in January that would have paid AstraZeneca owners £46.61 ($76.62) per share.

While the two sides failed to reach agreement at the time, Pfizer's disclosure of the offer raised investor expectations that a new round of negotiations may yield a different result.

AstraZeneca said Monday that the January proposal "very significantly undervalued" the company and its prospects, and in the absence of a new "specific and attractive" offer it was not ready to resume talks.

First Published: May 2, 2014: 3:41 AM ET

14.44 | 0 komentar | Read More

Facebook unveils anonymous login

SAN FRANCISCO (CNNMoney)

Facebook (FB, Fortune 500) on Wednesday unveiled an anonymous login feature that allows users to sign into apps without sharing their identities. The apps will be forbidden from collecting personal data from people who use the feature.

Facebook has become a kind of universal sign-in mechanism for websites and apps, allowing people to click one "login with Facebook" button rather than remembering an endless number of usernames and passwords. But Facebook also shares users' personal information with those apps and websites, making some people wary.

"By giving people more power and control, they're going to trust more apps," Facebook CEO Mark Zuckerberg said at the company's annual F8 developers conference in San Francisco.

The social network rolled out the new feature to a limited set of apps, including Flipboard, but Facebook said anonymous login will be available more broadly in the coming months.

Related: It's not a tech bubble -- it's tech roulette

For those who don't mind sharing their information with apps and sites but want to choose exactly what those third-parties can see, Facebook also plans to unveil a line-by-line privacy control option for its regular login feature. Users could choose to share their birthday but not their friends' list, for instance.

"We know some people are scared of pressing this blue button," Zuckerberg said pointing at the Facebook login button. "We want to do more to put control and power back in people's hands."

Facebook said that new feature will be ready in the coming months.

Also on Wednesday, Facebook launched a new mobile ad network, essentially making it easier for app developers to use mobile-optimized ad formats and partner with companies to target specific audiences with their ads.

Overall, this year's F8 was far less sexy than in years' past, during which the company has unveiled bold new features, including Graph Search and Timeline.

Even Facebook's new motto is kind of dull. The social network giant is ditching its familiar, "Move fast and break things" catch phrase for a less catchy one: "Move fast with stable infra" (short for "infrastructure").

Facebook created its new motto with the aim that it will make it easier for mobile developers to build apps atop Facebook's platform and make money. And rather than manufacture a phone or launch any "shiny consumer product," as Zuckerberg calls it, Facebook will instead focus on useful social tools for end users.

"We want to make sure we put people first," he said.

First Published: April 30, 2014: 3:18 PM ET

14.44 | 0 komentar | Read More

Emerging markets that merit a closer look

By looking closely at trends, you can identify investing opportunities in emerging markets.

(Money Magazine)

The place to look for stock bargains may finally be among developing economies, where share prices collectively are down 17% from their recent spring 2011 peak and stocks are trading at an average price/earnings ratio of 10.7 -- a 40% discount to shares of developed nations.

A big divide

Emerging markets look cheap compared to developed markets, but the averages mask big differences in these economies.

Developed markets	14.3	14.8%
Emerging markets	10.7	-2.4%
Among emerging markets, valuations differ dramatically
China	8.9	0.85%
Greece	35.4	50.8%
South Korea	10	7.4%
Russia	4.2	-13.5%

NOTES: As of April 3, 2014; P/E ratio based on forward earnings. SOURCES: Bloomberg; EAFE, MSCI

Notes Jeff Shen, head of emerging markets at BlackRock: "That's about the widest spread in more than 15 years."

True, with risks rising abroad, there are reasons developing-nation stocks are so cheap. China's growth is slowing, Brazil faces deficits, Russia just annexed Crimea -- the list goes on. And as the Federal Reserve tapers bond purchases, global credit is shrinking, which hurts smaller countries dependent on foreign investment.

For those with a discerning eye, however, the recent selloff could spell opportunity.

Related: Investors dip a toe back in emerging markets

"Emerging-market nations are no longer monolithic, and some are in pretty good shape," says T. Rowe Price emerging-markets specialist Todd Henry.

He expects these healthier economies to spur the benchmark MSCI Emerging Markets Index to deliver 11.5% earnings growth in 2014 -- more than two percentage points higher than the forecast for the S&P 500 index.

The following strategy will help you identify the most promising areas, while limiting your risks.

Look under the hood

Three trends seem likely to move emerging markets this year:

Asia will deliver solid growth. As China shifts from an economy propelled by exports to one driven by domestic consumption, its expansion is slowing. Yet concerns about stagnation seem overblown, given forecasts for a 7.5% rise in GDP in 2014.

"That's more than twice as fast as developed nations," says Justin Leverenz, manager of Oppenheimer Developing Markets, which has a 19% stake in China. Even if China stumbles, Taiwan and South Korea look strong.

"These countries have big current-account surpluses, as well as global trade that isn't dependent on China," says Arjun Jayaraman, co-manager of Causeway Emerging Markets.

Scary markets will stay scary. Case in point: Russia, where stocks have fallen 17% this year. Even before the Crimean crisis, Russia's economy was in a slump, partly from political uncertainty.

"Disruption goes with the emerging-market territory," says Craig Shaw, co-lead manager of Harding Loevner Emerging Markets. Shaw is sticking with a 6% stake in Russia.

Emerging markets do often rebound sharply before their economies recover. Over the past year, for example, stock prices in Greece, which was demoted to emerging-market status last fall, have jumped 52%, even though its debt problems aren't resolved. Whether those gains are sustainable if there's no progress soon is another question.

Think smaller for bigger gains. The least-developed emerging economies -- so-called frontier markets, such as Ghana, Estonia, and Vietnam -- tend to perform differently from more established markets.

Over the past year, for instance, the MSCI Frontier Index has risen 22.6%. The challenge: It can be tough to get in on the action since these shares tend to be thinly traded and most emerging-markets funds hold only a small stake.

Fine tune with two funds

Given the risks, "most people should put no more than 5% of their overall portfolio into emerging markets," says Chicago financial planner Mary Deshong-Kinkelaar.

Start with a diversified fund that gives you exposure to all these countries, but maintains a bigger stake in more stable areas. For instance, Vanguard Emerging Markets Stock Index (VEIEX), recommended on our MONEY 50 list, has 23% of its assets in China, 15% in Taiwan, and 5.2% in Russia. T. Rowe Price Emerging Markets (PRMSX) , also on the MONEY 50, holds similar country stakes.

Related: Tools to make your money grow

Then add a second fund, tilting toward added safety or a riskier bet, as you prefer. Cautious investors might gravitate to Matthews Asian Growth & Income (MACSX), which holds dividend-paying stocks from developed and emerging Asian countries.

Looking for more pop? Add a frontier-market fund, such as Guggenheim Frontier ETF (FRN). Just be sure to fasten your seat belt for the inevitably bumpy ride.

First Published: April 30, 2014: 4:09 PM ET

14.44 | 0 komentar | Read More

GM helps turn a shipping container into a home

About 85% of the home's materials will come from scraps collected at GM plants.

NEW YORK (CNNMoney)

GM (GM, Fortune 500) has teamed up with a sustainable agriculture group to build what it calls "the first shipping container homestead" in Detroit, complete with a working farm.

But it's far from a "Little House on the Prairie."

This home is made from a shipping container donated by the Michigan Urban Farming Initiative, GM's partner in the project, while the bulk of the building supplies will be supplied by the automaker.

In fact, 85% of the home's materials will come from scraps collected at GM plants. For instance, it will be insulated with sound-proof car insulation, while plywood from large shipping crates will be used on the interior walls and Chevrolet battery cases will be repurposed as bird houses and planter boxes.

Related: How Chevy Volts are made

"The idea is to show that a container can be turned into a home. It's also about taking an area that had urban blight and making it into productive farmland," said Dave Darovitz , a GM spokesman at the Detroit-Hamtramck GM plant.

The Hamtramck plant makes the Chevy Volt, Cadillac ELR, Opel Ampera, Chevy Malibu, and Chevy Impala models.

The recycled home will be about 40 feet long, eight feet wide and 10 feet tall, and will feature 320 square feet of living space with two bedrooms, a bathroom and kitchen.

When it's finished this spring, a university student will live in the home year-round and manage the farm while conducting agricultural research.

Related: GM: Steps to a recall nightmare

The effort is the sort of good news that has been short supply for GM lately as it battles its ignition switch recall crisis.

Last week the automaker said that virtually all of its first-quarter profits were wiped out by the $1.3 billion it had to take for the recall.

CEO Mary Barra recently announced that the automaker created a new global product integrity unit to ensure that a "situation like the ignition-switch recall doesn't happen again."

GM's faulty ignition switch has been tied to at least 13 deaths.

First Published: April 30, 2014: 4:22 PM ET

14.44 | 0 komentar | Read More

Wal-Mart to offer auto insurance

Besides buying groceries, you'll also be able to buy auto insurance through Wal-Mart.

NEW YORK (CNNMoney)

The nation's largest retailer said Wednesday it is partnering with AutoInsurance.com to provide customers with "a one stop shop" for their auto insurance needs.

Wal-Mart will not sell insurance, but its customers can click through a link on walmart.com, or go to autoinsurance.com directly to get competing quotes from several car insurance providers such as Progressive (PGR, Fortune 500), Esurance and Safeco to choose the policy and price that best fit their needs. Wal-Mart will also promote the service via displays in its stores.

The service is already available in eight states -- Arkansas, Louisiana, Mississippi, Missouri, Oklahoma, Pennsylvania, Tennessee and Texas. Wal-Mart (WMT, Fortune 500) plans a nationwide rollout in the coming months.

Related: Ex-Wal-Mart CEO Duke retired with $140 million

Wal-Mart said the service will save customers money. The company cited a pilot program survey it conducted last year in Pennsylvania, where customers who purchased policies from autoinsurance.com on average said they saved $1,168 a year.

"We are always looking for ways to reduce complexity, increase transparency, and give everyday low prices to Wal-Mart shoppers," said Daniel Eckert, Wal-Mart's senior vice-president of services.

Eckert also stressed the simplicity of the site, which is able to retrieve information from a customer's current policy and automatically fill in most of the necessary coverage information.

Wal-Mart said the service originated from talks with Tranzutary Insurance Solutions, a New Jersey-based insurance broker, that runs the site.

The announcement is the latest in Wal-Mart's aggressive move into financial services recently.

Just earlier this month, the giant retailer announced it was entering the money transfer business to compete with the likes of Western Union (WU, Fortune 500) and MoneyGram (MGI). Through the service, customers can transfer money to each other within Wal-Mart stores around the country for a fee that is relatively lower than competitors.

Related: What's my real living wage?

Much of Wal-Mart's financial service offerings are targeted at people who do not have access to bank accounts, because they either cannot afford the high fees, or do not have stable enough jobs to be able to keep a minimum balance.

Wal-Mart also offers check cashing and prepaid cards at its stores. In addition, it has partnered with American Express (AXP, Fortune 500)to offer debit and checking accounts that don't require a minimum balance, or monthly maintenance fee.

This is also Wal-Mart's way of countering a slump in sales in recent months. In February, Wal-Mart reported a drop in profit and same store sales and also lowered its outlook for the year on concerns about higher taxes and health care costs.

First Published: April 30, 2014: 12:20 AM ET

14.44 | 0 komentar | Read More