| By Kevin Turner | Saturday, March 30th 2013, 15:31 GMT |
British Touring Car race winner Tom Onslow-Cole believes the new NGTC Volkswagen Passat CC has good potential after his first drive in the car at Brands Hatch
You have viewed over 30 free stories this month. Why stop there? Click here to find out how to continue reading.
| By Gary Watkins | Saturday, March 30th 2013, 16:20 GMT |
Three-time Porsche Supercup champion Rene Rast started his first season as a full-time Audi driver by claiming pole position at the opening round of the new FIA GT Series at Nogaro
You have viewed over 30 free stories this month. Why stop there? Click here to find out how to continue reading.
| By Kevin Turner | Saturday, March 30th 2013, 16:30 GMT |
Andrew Jordan took pole position for the first British Touring Car race of 2013 at Brands Hatch
You have viewed over 30 free stories this month. Why stop there? Click here to find out how to continue reading.
Planning a domestic trip? Book your flight 49 days in advance for the best airfare.
(Money Magazine)
On average, the best time to buy a ticket for non-holiday domestic travel is 49 days before departure, based on CheapAir.com's study of 560 million 2012 fare records; for international flights, 81 days is the sweet spot.
To avoid catching the attention of the IRS, beware of these pitfalls.
Related: Best travel apps
Beware of ticketing too far in advance: Seats bought about 200 days ahead are almost as costly as last-minute fares.
BOOKING SMARTS
Beat the rush. When traveling around July 4 or another busy weekend, start looking early -- about 10 weeks beforehand in most cases, says CheapAir.com CEO Jeff Klee. For Thanksgiving, though, you might need a month more than that.
Related: 5 family vacation bargains
Seize the day. Shop on Tuesday afternoons, says FareCompare CEO Rick Seaney, since most domestic sales launch late Monday and are soon matched by rivals.
For non-vacation destinations, buy on a weekend; a Texas A&M study found that strategy resulted in average savings of 5%.
Check the numbers. For reassurance that your timing is right, take advantage of travel search engines' special features. Kayak.com's new Price Trend and Bing.travel.com's Price Predictor, fueled by fresh data, will forecast whether fares are headed up or down. 
First Published: March 29, 2013: 7:04 AM ET
NEW YORK (CNNMoney)
"It's not totally clear what the building is because it's such an odd or unusual shape," said Russell, who designed the property himself.
The 3,200-square-foot home is built on a triangular plot of land flanked by Interstate 5 and San Diego International Airport.
With planes and cars whizzing by, the home is louder than most. And with its peculiar shape, it's narrower too. In fact, it's just 8 feet on one side. But at its widest, the house spans more than 28 feet.
Still, Russell wanted at least one traditional feature -- a deck. So he built what he calls a "drawbridge." It's actually a windowed wall that can be lowered by towing cables to sit perpendicular to the home. Voila, a patio.
"A lot of people build their dream house and everything has to be perfect and everything has to be right," said Russell. "This was more about how much fun can you have with this pile of sticks and bricks."
More Unique Homes:
Mansion for sale: swim in your living room
Slide through NYC's penthouse playground
Life inside a far-out design project
First Published: March 29, 2013: 7:08 AM ET
HONG KONG (CNNMoney)
Many American businesses in the country also reported worrying more about data security, with over 40% of respondents saying the risk of a data breach is rising. Fifty-three percent said the risk is static, while only 5% said the risk is decreasing.
"This poses a substantial obstacle for businesses in China, especially when considered alongside the concerns over [intellectual property rights] enforcement and de facto technology transfer requirements," the report said.
While 78% of businesses said they were optimistic when asked to describe their two-year outlook, the percentage who said the investment environment is improving dropped from 43% in 2012 to 28% this year.
Rising labor costs and slower economic growth in China were most frequently cited as the greatest risks facing foreign businesses in China. The survey was conducted last November and December, and included 325 respondents.
The report comes amid elevated tensions between China and the U.S. over the issues of cybersecurity and computer hacking.
Last month, an American cybersecurity firm linked one of the world's most prolific groups of computer hackers to the Chinese government, setting off a war of words between the two countries.
The security firm, Mandiant, detailed its allegations in a 60-page report that described the tactics of the hacking group over a six-year period. Mandiant claimed it observed the hackers -- called the "comment crew" -- systematically steal hundreds of terabytes of data from at least 141 organizations across 20 industries worldwide.
Related story: Wake up, America! China is attacking
Mandiant claims the activity could be traced to four networks near Shanghai -- with some operations taking place in a location that is also the headquarters of Unit 61398, a secret division of China's military.
The Chinese government dismissed the hacking charges, insisting that China is the victim of many cyberattacks, most originating in the United States.
Despite the threat, many businesses are taking a lackadaisical approach to cybersecurity. Multiple industry studies have shown that the vast majority of companies don't begin following cybersecurity best practices until after they've been hit.
First Published: March 29, 2013: 7:38 AM ET
Oreo posted a picture of a rainbow cookie last summer in support of the lesbian, gay, bisexual and transgender community.
NEW YORK (CNNMoney)
Last week, Starbucks (SBUX, Fortune 500) CEO Howard Schultz publicly told off an investor who complained that the coffee giant's support of same-sex couples was hurting profits.
"It's a free country ... you could sell your shares at Starbucks," Schultz said.
Schultz is not alone. In recent years, a wave of businesses have demonstrated their support for same-sex couples, sometimes drawing the ire of customers and investors.
J.C. Penney (JCP, Fortune 500) featured a family with two moms in its Mother's Day advertisements last year and two dads for Father's Day. The ads received immediate backlash from the family advocacy group One Million Moms, which called on its members to boycott the store and send back its catalogs. The retailer didn't back down.
Related: Marriage ruling could save same-sex couples thousands
Also last summer, Target (TGT, Fortune 500) sold a line of gay pride-themed T-shirts and donated $120,000 of proceeds to the Family Equality Council, an advocacy group for the lesbian, gay, bisexual and transgender community.
Last June, Oreo posted a photo of a cookie with rainbow colored filling -- a symbol for the gay rights movement. The popular creme sandwich cookie made by Mondelez International (MDLZ) paired the photo with the captions "pride" and "proudly support love."
And last month, more than 100 of the nation's largest companies filed a brief with the Supreme Court in support of Proposition 8, which prohibits same-sex marriage in California. This week, the country's highest court heard two cases: Defense Of Marriage Act, which denies federal benefits and recognition to married gay couples, and Proposition 8.
Companies including Apple (AAPL, Fortune 500), Facebook (FB), Google (GOOG, Fortune 500), Morgan Stanley (MS, Fortune 500), Nike (NKE, Fortune 500), Verizon (VZ, Fortune 500), Levi Strauss & Co. and American International Group (AIG, Fortune 500) signed the brief and called rights for LGBT couples "a business imperative."
The brief says laws such as Prop 8 could force gay workers out of states that don't recognize same-sex marriage, interfering with companies' ability to hire and compete.
"Laws that prohibit marriage by two people of the same sex discriminate against ... millions of employees, as well as their customers, clients and vendors," the companies wrote.
Businesses don't have much to lose by sticking up for gay rights. Already, 53% of Americans support same-sex marriage, a sentiment that's even higher among the coveted under-30 consumer.
It also makes business sense. Same-sex couples have been shown to out-earn and outspend opposite sex couples.
According to a 2012 study from Experian Marketing Services, the typical household income for a married or partnered lesbian woman is $7,200 higher than that of a married or partnered heterosexual woman, and $21,500 more for a gay man.
Same-sex couples spend more on their weddings, too, despite having fewer guests, according to survey conducted by TheKnot.com.
"Corporate support for the LGBT community largely preceded public support for it," said Gary Gates, a demographer at the Williams Institute, which studies legal issues that affect the LGBT population at the University of California at Los Angeles Law School. "Corporate America perceived that there was a big consumer market."
First Published: March 29, 2013: 7:01 AM ET
NEW YORK (CNNMoney)
Personal incomes rose 1.1% in February, while spending rose 0.7%, the Commerce Department said.
Both figures were larger than expected. Economists were expecting a 0.8% rise in incomes and a 0.6% gain in spending, according to consensus estimates from Briefing.com.
The surprise jump in take-home pay came after incomes plunged 3.7% in January, driven lower by certain "special factors," the government said.
Incomes in January were depressed by the expiration of the "payroll tax holiday," as well as bonus and dividend payments that were made early in anticipation of tax hikes that took effect in 2013.
Excluding these factors, personal income increased 0.4% in February.
Meanwhile, personal spending continued to rise despite higher payroll taxes.
"We have yet to see the effect of increased payroll taxes on outlays," said Tanweer Akram, senior economist at ING U.S. Investment Management.
Stronger job growth, rising home prices and stocks at all-time highs have consumers feeling more optimistic about the economy recently. But it remains to be seen whether this increase in wealth will translate to a sustained rise in spending, Akram said.
"I'm cautiously optimistic, but I don't expect strong spending this year," he said.
Friday's report came one day after the government said U.S. gross domestic product rose at a 0.4% annual rate in the final three months of 2013. That was better than the previous estimate of 0.1% and the initial reading, which showed a 0.1% decline.
First Published: March 29, 2013: 10:35 AM ET
NEW YORK (Fortune)
Fortune wants to make it even easier for you to eavesdrop. The weekly Fortune Brainstorm podcast features recorded conversations from Fortune's live events.
In this week's installment, actor and writer Lena Dunham -- creator of Girls (which just wrapped up its second season on HBO) -- takes center stage with CNN's Soledad O'Brien. Recorded at last year's Most Powerful Women Summit, Dunham discusses the (other) women in her life, how artists also function as small business owners, her critics, and her career. Don't worry: No spoilers.
Subscribe to and download the podcast from iTunes.
Or stick the podcast's RSS feed into your favorite podcast app: http://fortunebrainstormpodcast.libsyn.com/rss
First Published: March 29, 2013: 11:10 AM ET
WASHINGTON (CNNMoney)
The rules would take effect in 2017, and their full impact would be realized a decade later, according to the EPA. An EPA study said the new rule could save 2.000 lives a year and cut back on childhood asthma.
"We estimate the rule will reduce smog by 30%" when fully implemented, said Bill Becker, executive director of the National Association of Clean Air Agencies, which represents air quality control agencies around the country.
Poll: How much would you pay for cleaner air?
A big point of contention is how much the tougher rules would add to the price of gas.
Refinery and oil and gas industry groups have said such a move would force motorists to pay nearly 10 cents more per gallon, based on a study by energy consulting firm Baker & O'Brien.
The White House says the move would add less than a penny a gallon, based on an EPA study.
Representatives of the energy industry disagree.
"There is a tsunami of federal regulations coming out of the EPA that could put upward pressure on gasoline prices," said Bob Greco, a director at the American Petroleum Institute.
Related: Check gas prices in your state
The rule targets sulfur, which occurs naturally in crude oil. The more sulfur, the less efficiently a car runs. The rule would force refineries to reduce sulfur content by more than 60% to 10 parts per million from 30 parts per million, the EPA said.
The National Association of Clean Air Agencies estimates the rule would have the same effect as taking 33 million cars off the roads.
"We don't know of another air pollution strategy as effective to clean up the air," Becker said.
Refineries that serve California, the European Union and Japan must already meet the tougher sulfur rules.
The Sierra Club praised the plan, with executive director Michael Brune saying in a statement that it uses existing "technology to clean up our fuels and our cars."
The rule was developed with advice from the refiners and car manufacturers, as well as state officials, according to an Obama administration official.
Of the 111 refineries to be covered by the rule, only 16 will have to make major investments in new equipment to abide by the rule, the official said.
"Today's proposed standards -- which will save thousands of lives and protect the most vulnerable -- are the next step in our work to protect public health and will provide the automotive industry with the certainty they need to offer the same car models in all 50 states," said EPA Acting Administrator Bob Perciasepe in a statement.
-- CNN's Dan Lothian and Jessica Yellin contributed to this report.
First Published: March 29, 2013: 8:49 AM ET
French President Francois Hollande has revived calls for a 75% top income tax rate.
HONG KONG (CNNMoney)
French President Francois Hollande made changes to his failed proposal for a 75% top tax rate on Thursday, shifting the burden of payment from individuals to businesses that pay salaries over 1 million euros.
Hollande, during last year's presidential campaign, proposed a 75% tax rate on individual income above 1 million euros. The controversial tax was rejected by France's judiciary.
Hollande made his new payroll tax proposal on big salaries during a late-night television broadcast. "The Constitutional Council made a decision," Hollande said. "I respect it. So, I'm going to take a different path."
Related story: Zuckerberg's $1 billion tax bill
Hollande said the measure is needed to ensure transparency at large corporations -- the only businesses that can afford to pay employees so generously.
His initial proposal, which never became law, inspired French actor Gerard Depardieu to abandon the country, instead adopting Russian citizenship and moving to Belgium.
Depardieu is a cultural icon in France, and his departure triggered a hailstorm of public comment for and against him.
In the United States, Democrats have also made the argument that the rich should pay higher taxes as a matter of fairness. As part of the fiscal cliff deal at the start of this year, the top marginal rate on income was allowed to revert to its pre-2001 level of 39.6%.
Hollande's popularity has fallen dramatically in recent months, and the embattled president used the broadcast Thursday to press for more reforms.
The French economy, second only in size to Germany in the 17-nation eurozone, has stagnated.
Related story: France may prolong eurozone recession
Markit economist Jack Kennedy said last month that France's performance in the first quarter of 2013 was shaping up to be the worst since 2009.
"The broad-based weakness across manufacturing and services leaves scant room for optimism, with a range of indicators from new orders, backlogs, employment and output prices all residing at depressed levels," he said.
Germany, by contrast, saw a further improvement in business activity in February for a third month running, although the pace of expansion slowed slightly.
Markit said the gap in performance between the eurozone's leading economies was at its widest since surveys began in 1998. France was beginning to look like it belonged to the group of economies on the eurozone periphery, rather than the core, it said.
First Published: March 29, 2013: 6:10 AM ET
Federal investigators charged Michael Steinberg of SAC Capital with securities fraud on Friday. He pleaded not guilty.
NEW YORK (CNNMoney)
Michael Steinberg, a portfolio manager at SAC Capital, was charged with five counts -- including securities fraud and conspiracy to commit securities fraud -- for allegedly short-selling computer stocks Dell (DELL, Fortune 500) and Nvidia (NVDA) based on inside information, according to documents from the office of the U.S. Attorney for the Southern District of New York.
He pleaded not guilty in federal court, surrendered his passport and posted bail of $3 million. His next court date is May 3.
"As alleged, Michael Steinberg was another Wall Street insider who fed off a corrupt grapevine of proprietary and confidential information cultivated by other professionals who made their own rules to make money," said U.S. Attorney Preet Bharara, in a statement.
Steinberg was arrested at 6 a.m. ET at his Manhattan residence, according to an FBI spokesman.
Related: Should Cohen shut down SAC Capital?
"Mr. Steinberg was at the center of an elite criminal club, where cheating and corruption were rewarded," said FBI Assistant Director George Venizelos, in a statement.
But his lawyer, Barry Berke, insisted that Steinberg is an innocent man who conducted proper trades.
"Michael Steinberg did absolutely nothing wrong," Berke said in an e-mail to CNNMoney. "At all times, his trading decisions were based on detailed analysis as well as information that he understood had been properly obtained through the types of channels that institutional investors rely upon on a daily basis."
"Caught in the crossfire of aggressive investigations of others, there is no basis for even the slightest blemish on his spotless reputation," Berke added.
Related: SAC Capital pays $614 million for insider trading
The charges of securities fraud follow on the heels of a settlement, reached earlier this month, between SAC Capital and the Securities and Exchange Commission, the largest settlement in SEC history.
On March 15, two units of hedge fund SAC Capital agreed to pay $614 million to the SEC to settle charges of insider trading. The settlement included hedge fund advisory firm CR Intrinsic Investors, which agreed to pay about $600 million in fines for making $275 million in "illegal profit or avoided losses" from insider trading related to Irish biotech Elan (ELN).
It also included Sigma Capital, which agreed to pay $14 million for trading "based on nonpublic information" on financial results of Dell and Nvidia.
Related: Read federal indictment documents here
The SEC said that Steinberg worked at Sigma, where he allegedly received "illegal tips" from analyst Jon Horvath, who was named by the U.S. Attorney as a co-conspirator. The SEC said that Steinberg's "illegal conduct" netted more than $6 million in profits and avoided losses.
The investigation focused on conversations between Steinberg and Horvath that allegedly occurred in 2008. The federal indictment accuses Horvath of telling Steinberg that an insider at Dell warned him the company was going to miss on its earnings, prompting Steinberg to sell short 30,000 shares before the stock plunged 13%.
Horvath allegedly e-mailed Steinberg, "Please keep to yourself as obviously not well known," to which Steinberg allegedly replied, "Yes normally we would never divulge data like this, so please be discreet."
Related: Rajaratnam's transplant could cost taxpayers $300,000
The U.S. Attorney's office said that Horvath had previously pleaded guilty to charges of securities fraud as part of a cooperation agreement. Horvath allegedly obtained his inside information from a circle of four former research analysts who have also pleaded guilty, according to the Attorney's office.
When the settlement -- which requires a federal judge's approval -- was announced, the SEC said that it might still be investigating people at the firm.
Cohen, the founder of SAC Capital, has not been charged, though federal investigators have been circling him for months, sniffing around for signs of insider trading and making peripheral strikes on his employees.
Last November, federal prosecutors charged Mathew Martoma, portfolio manager of CR Intrinsic Investors, with selling and short-selling shares of Elan and Pfizer (PFE, Fortune 500) subsidiary Wyeth.
-- CNN's Kirsten Swanson contributed to this story.
First Published: March 29, 2013: 8:15 AM ET
Steven Cohen of SAC Capital.
NEW YORK (CNNMoney)
Michael Steinberg, apprehended in Manhattan on Friday morning, is one of at least seven current or former SAC Capital employees to be charged in insider-trading cases over the past few years.
SAC is renowned as one of the country's top investment firms, generating annualized returns averaging more than 25% since it was founded in 1992. Cohen himself is a Wall Street celebrity, with a net worth estimated at $9.3 billion by Forbes Magazine.
SAC's mounting legal troubles, however, have brought the firm unwanted attention, and threaten to ensnare Cohen himself. With Steinberg's arrest, the government is likely hoping to "work its way up the chain" to Cohen, said Michael Weinstein, a defense attorney and former federal prosecutor.
"This is absolutely standard operating procedure for bringing a big defendant down," Weinstein said. "The government's going to continue to pressure people around him."
Related: Should Steve Cohen shut down SAC?
Steinberg, who's been with SAC since 1997, pleaded not guilty in a court appearance Friday morning and posted $3 million bail.
"Mike has conducted himself professionally and ethically during his long tenure at the firm. We believe him to be a man of integrity," SAC spokesman Jonathan Gasthalter said in an email.
Cohen himself hasn't been accused of any wrongdoing, and the firm has repeatedly denied that he has done anything improper.
But investors have been monitoring the government's SAC cases warily, requesting the withdrawal of more than $1.68 billion before the quarterly deadline to do so last month.
The firm was already under pressure after federal officials levied charges in November against Mathew Martoma, a former portfolio manager at an SAC subsidiary, accusing him of participating in a $276 million insider-trading scheme. That indictment claims Cohen made trades based on Martoma's recommendations, though it does not allege that Cohen knew Martoma had obtained information illegally.
Martoma has denied the allegations against him, though other SAC alums have struck cooperation deals with the government. That group includes former analyst Jon Horvath, whose testimony is likely to figure in the case against his one-time boss, Steinberg.
Among the charges Steinberg faces are four counts of securities fraud, each of which carries a maximum sentence of 20 years in prison. The government has a sterling record in insider-trading cases -- 71 convictions and no acquittals since August 2009 -- and analysts say prosecutors will likely put serious pressure on Steinberg to testify against Cohen.
"They're going to start exerting pressure on Steinberg and exerting pressure on Martoma," said Michael Bachner, a lawyer who has represented defendants in insider-trading cases. "They are looking to try and get as many individuals charged who could cooperate and corroborate each other."
On the civil side, SAC agreed earlier this month to pay more than $600 million in a settlement with the Securities and Exchange Commission over the trades at issue in Martoma's case. In a court hearing Thursday, however, a federal judge reportedly questioned why the firm was allowed to settle without admitting or denying wrongdoing, raising doubt as to whether the settlement will be approved.
The firm reached a $14 million settlement with the SEC over the trades in Steinberg's case, though that also awaits court approval.
In the meantime, both the SEC and the Justice Department say their investigations are continuing. As for Cohen, he's apparently finding ways to take his mind off the controversy -- reports emerged this week that he recently purchased Picasso's "Le Reve" for $155 million, the most expensive art purchase ever by a U.S. collector.
CNN Wires staff and CNNMoney's Aaron Smith contributed reporting.
First Published: March 29, 2013: 6:49 PM ET
| Friday, March 29th 2013, 17:41 GMT |
Ex-Formula 1 driver Tonio Liuzzi will switch to the Romeo Ferraris Mercedes team for his return to the Superstars International Series in 2013
You have viewed over 30 free stories this month. Why stop there? Click here to find out how to continue reading.
| By Gary Watkins | Friday, March 29th 2013, 18:39 GMT |
The Vita4One BMW squad is aiming to be on the grid for round two of the FIA GT Series at Zolder next month following its late withdrawal from this weekend's championship opener at Nogaro
You have viewed over 30 free stories this month. Why stop there? Click here to find out how to continue reading.
| By Jamie O'Leary | Friday, March 29th 2013, 21:02 GMT |
Marco Wittmann led Pascal Wehrlein in a rookie one-two on the final day of the DTM's official pre-season test at Barcelona
You have viewed over 30 free stories this month. Why stop there? Click here to find out how to continue reading.
| By Phillip Horton | Thursday, March 28th 2013, 14:40 GMT |
DTM rights holders ITR say they are open to US manufacturers joining the championship and have invited representatives to this year's Hockenheim season opener.
You have viewed over 30 free stories this month. Why stop there? Click here to find out how to continue reading.
| Thursday, March 28th 2013, 14:48 GMT |
Sebastian Vettel has apologised in person to Red Bull staff for ignoring team orders at the Malaysian Grand Prix.
You have viewed over 30 free stories this month. Why stop there? Click here to find out how to continue reading.
| By Gary Watkins | Thursday, March 28th 2013, 17:54 GMT |
The Vita4One BMW squad has withdrawn from the opening round of the FIA GT Series at Nogaro this weekend.
You have viewed over 30 free stories this month. Why stop there? Click here to find out how to continue reading.
| By Mark Glendenning | Wednesday, March 27th 2013, 16:32 GMT |
Sarah Fisher Hartman Racing development driver Kyle O'Gara will make his Indy Lights debut at the Freedom 100 at Indianapolis in May in entry jointly run with Schmidt Peterson Motorsport.
You have viewed over 30 free stories this month. Why stop there? Click here to find out how to continue reading.
| By Edd Straw and Matt Beer | Wednesday, March 27th 2013, 16:51 GMT |
Romain Grosjean's efforts to become a more consistent and focused Formula 1 driver are paying off, according to his Lotus team boss Eric Boullier.
You have viewed over 30 free stories this month. Why stop there? Click here to find out how to continue reading.
| By Jamie O'Leary | Wednesday, March 27th 2013, 21:11 GMT |
Gary Paffett kept Mercedes on top of the timesheets on the second day of DTM pre-season testing at Barcelona.
You have viewed over 30 free stories this month. Why stop there? Click here to find out how to continue reading.
| By Mark Glendenning | Tuesday, March 26th 2013, 16:04 GMT |
AJ Allmendinger, Tristan Vautier and Carlos Munoz are scheduled to test at Texas Motor Speedway tomorrow as a precursor to next month's Indy 500 Rookie Orientation Program at Indianapolis Motor Speedway
You have viewed over 30 free stories this month. Why stop there? Click here to find out how to continue reading.
| By Edd Straw and Matt Beer | Tuesday, March 26th 2013, 17:02 GMT |
Force India believes its Malaysian Grand Prix wheelnut issues hid just how competitive it was in the second round of the 2013 Formula 1 season
You have viewed over 30 free stories this month. Why stop there? Click here to find out how to continue reading.
| By Jamie O'Leary | Tuesday, March 26th 2013, 20:51 GMT |
Mercedes driver Robert Wickens topped the opening day of official DTM pre-season testing at Barcelona on Tuesday
You have viewed over 30 free stories this month. Why stop there? Click here to find out how to continue reading.
| By Jonathan Noble | Monday, March 25th 2013, 16:52 GMT |
Ross Brawn believes that instructing his drivers to hold position in the closing stages of the Malaysian Grand Prix was a no-brainer because both Mercedes cars were marginal on fuel.
You have viewed over 30 free stories this month. Why stop there? Click here to find out how to continue reading.
| Monday, March 25th 2013, 17:11 GMT |
Cal Crutchlow completed MotoGP pre-season testing at the top of the times as he emerged fastest from another rain-limited scramble on the final afternoon at Jerez
You have viewed over 30 free stories this month. Why stop there? Click here to find out how to continue reading.
| By Sam Tremayne | Monday, March 25th 2013, 19:42 GMT |
Denny Hamlin has been diagnosed with a fractured back following his collision with Joey Logano at the end of the Fontana NASCAR Sprint Cup race
You have viewed over 30 free stories this month. Why stop there? Click here to find out how to continue reading.
Subscribe to Premier Sports TV to watch all Sprint Cup events live in the UK. Visit www.premiersports.tv for more information.
| Sunday, March 24th 2013, 20:29 GMT |
Alvaro Bautista may miss the final day of MotoGP pre-season testing at Jerez on Monday after sustaining knee and finger injuries in a Sunday crash
You have viewed over 30 free stories this month. Why stop there? Click here to find out how to continue reading.
| Sunday, March 24th 2013, 20:37 GMT |
Valentino Rossi believes he made an important set-up breakthrough as he returned to the top of the timesheets on day two of Jerez MotoGP testing
You have viewed over 30 free stories this month. Why stop there? Click here to find out how to continue reading.
| By Connell Sanders Jr | Sunday, March 24th 2013, 22:29 GMT |
Kyle Busch snatched victory in the Fontana NASCAR Sprint Cup race as bitter foes Joey Logano and Denny Hamlin collided fighting for the lead on the last lap
You have viewed over 30 free stories this month. Why stop there? Click here to find out how to continue reading.
Subscribe to Premier Sports TV to watch all Sprint Cup events live in the UK. Visit www.premiersports.tv for more information.
| By Mark Glendenning | Saturday, March 23rd 2013, 20:10 GMT |
Will Power will start Sunday's IndyCar season-opener in St Petersburg from pole position after triumphing in an upset-laden qualifying session on the Floridian street circuit
You have viewed over 30 free stories this month. Why stop there? Click here to find out how to continue reading.
| By Jonathan Noble | Saturday, March 23rd 2013, 20:34 GMT |
Red Bull only has itself to blame for the tyre degradation issues it is facing, says a defiant Lotus boss Eric Boullier, as the champion team lobbies for changes to the 2013 Pirellis
You have viewed over 30 free stories this month. Why stop there? Click here to find out how to continue reading.
| By Mark Glendenning | Saturday, March 23rd 2013, 21:40 GMT |
Takuma Sato is convinced he can challenge for victory in the IndyCar season-opener in St Petersburg after qualifying on the front row on his AJ Foyt Enterprises debut
You have viewed over 30 free stories this month. Why stop there? Click here to find out how to continue reading.
If you feel you must have shelter from rising interest rates, shift into a short-term bond index fund.
(Money Magazine)
Pundits have been warning for more than three years that the bond market is a ticking time bomb. But anyone who deserted bonds for the safety of cash back in 2010 has been sorely disappointed, as investment-grade bonds have returned nearly 20% since then, vs. 0.20% for money-market funds.
While most analysts expect interest rates to climb from today's depressed levels -- they've already inched up about half a percentage point since last summer -- no one knows how far they'll rise and how long that will take.
And even though bonds could face difficult times ahead, bailing out may lead to more problems than staying put.
For one thing, you face the question of where to invest instead.
Stocks? The risk of a severe setback is far greater.
Stock prices have dropped by 50% or more twice during the past 13 years alone. The broad bond market has yet to suffer a 12-month loss greater than 9.2%.
You could always hunker down in Treasury bills, money funds, or short-term CDs and jump back into bonds after rates rise. Do so before rates have finished climbing, though, and you could still face losses; stay in low-yielding cash too long, and you could give up a substantial return. It's the same no-win guessing game that many investors play with stocks.
Related: Don't let a fear of stocks cost you in retirement
My advice: Decide how much of your savings should be in bonds -- likely 10% to 20% if you're young, 50% or more if you're nearing or in retirement. Then stick to that percentage regardless of what prognosticators say rates may do, making a total U.S. bond market index fund (VBMFX) your core holding.
Yes, the value of such a fund will drop by roughly 5% for every percentage point that rates increase. Any initial blow, however, would be cushioned by the bonds' interest payments. Plus, your return would rise as older bonds in the portfolio mature and are replaced by higher-yielding ones.
Related: How a lifetime income annuity works
Still, if you feel you must have shelter from rising rates, shift into a short-term bond index fund (VBISX), which recently yielded just 1.4%, vs. 2.5% for its total bond market counterpart. As rates rise, such a fund should drop roughly half as much.
Finally, since interest rates in other countries don't move in lockstep with rates here, you may be able to get more protection by venturing overseas. The international bond fund on our MONEY 70 list is Templeton Global Bond (TPINX), which lately paid 5.6%. And by midyear Vanguard will introduce an international bond index fund. To be safe, limit foreign bonds to, say, 20% or so of your overall bond portfolio.
But whatever you do, don't abandon bonds altogether: Despite today's low rates, they still deserve a place in your portfolio.
First Published: March 22, 2013: 7:10 AM ET
To figure out the most effective solution, you need to determine the size of your challenge. Start by weeding out what you don't wear.
(Money Magazine)
There's plenty of space for all manner of sweater shelves, lingerie drawers, shoe cubbies, and tie racks.
So what about the rest of us, who live with reach-in (or squeeze-in) closets? No storage contraption can radically expand inside-the-closet capacity, but you don't necessarily have to install it there.
Here are two ways to create organized and tidy wardrobe cargo space for practically any closet-challenged house.
Thin and restructure
Before you buy any closet gizmo, force yourself to weed out what you don't wear.
"About 70% to 80% of what's in most closets never gets taken off the hanger," says Newton, Mass., professional organizer MJ Rosenthal.
An organizing system will make what remains easier to access.
"The standard pole-and-shelf setup leaves loads of wasted vertical space," says Chesapeake, Va., cabinetmaker David Alderman, who tricks out about 35 closets a year. He typically lowers the pole to four feet high and, above it, installs either a second pole or numerous adjustable shelves designed to keep piles of folded clothing to at most five items tall. When he's working with closets that are deeper than they are wide, he may hang everything from one of the sidewalls.
Related: Find the best handyman for the job
Know that a custom system won't come cheap: You'll pay $800 to $1,200 for a one-door closet, and $1,500 to $2,500 for a double-door.
Almost all are made from melamine -- a waterproof plastic board -- which you can get either in white or a faux-wood finish. Somewhat handy? You can save about 20% with a modular do-it-yourself kit from easyclosets.com or containerstore.com/elfa.
Either way, invest only if you're staying in your home; realtors say this typically isn't an improvement that impresses buyers.
Think outside the closet
Closets that are outrageously undersized require you to look beyond their walls for a solution, says California Closets' chief design officer, Ginny Snook Scott.
If you want something that can move with you, pick up an armoire (for as little as $100 at Ikea).
Related: 4 tips from a serial home remodeler
Alternatively, a closet company or cabinetmaker can craft a built-in wall cabinet for your master bedroom and fill it with hanger poles, shelves, and cubbies. You'll pay about $2,000 to $4,000 for an eight-foot-wide wall of doors and drawers. (You can add a spot to hang your flat-screen TV.)
Because it's useful, attractive, and permanent, it may even yield some payback when it's time to sell -- not bad for something that you'll reap dividends from at least two times a day.
First Published: March 22, 2013: 7:17 AM ET
The meat and poultry industry came to the rescue of food inspectors who faced 11 days of furloughs this year.
WASHINGTON (CNNMoney)
Over 9,000 federal food inspectors won't face furloughs after top companies from the meat and poultry industries spoke out in support of them.
In a bill passed by both houses of Congress and sent to President Obama on Thursday, food safety and inspection workers avoided 11 days of furlough, or one day a week from July through September.
So far, they are the only federal workers that Congress has agreed to deliver from furloughs. Close to a million federal workers will be forced to stay home without pay from 3 to 22 days, depending on the agency, thanks to $85 billion in forced budget cuts that took effect March 1.
Meat and poultry heavyweights, including Arkansas-based Tyson Foods (TSN, Fortune 500) and the cattle industry's powerful lobby group, the National Cattlemen's Beef Association, wooed lawmakers -- especially Republicans, some of whom were in no mood to mitigate any part of the sequester, according to congressional aides.
Last week, the National Chicken Council flew in chicken processors from several states, including Georgia, Mississippi, Arkansas and California, who met face-to-face with lawmakers on Capitol Hill.
The groups argued that, unlike other industries that would face only minor disruption, furloughs would lead to a complete shutdown of meat and poultry packing plants on days that the government inspectors stayed home.
The U.S. Department of Agriculture had estimated that 15 days of furloughs for meat inspectors would lead to a loss of $10 billion and cut production by 2 billion pounds of meat, 3 billion pounds of chicken, and 200 million pounds of eggs. People expected it to cause food shortages and possibly price spikes at the grocery store.
"This was a perfect storm, because it would have shut down the food supply and would have affected everyone who eats," said Chase Adams, spokesman for the cattlemen's group, which urged members to write their lawmakers and USDA to keep inspectors on the job.
Sen. Mark Pryor, an Arkansas Democrat, sponsored the amendment saving food inspectors. It was added to a bill that would keep government running through Sept. 30.
Related: 5 federal workers: What job cuts mean to me
One reason why Republicans agreed to save food inspectors was that the measure didn't spend new money, congressional aides say. It came from a $55 million funding shift -- $30 million cut from a program to maintain USDA buildings and $25 million from a new USDA program to upgrade school kitchen equipment.
Pryor and his co-sponsor on the amendment, Sen. Roy Blunt, a Missouri Republican, represent areas with big meat processing plants. Arkansas, alone, has 91 meat slaughter and poultry processing plants that employ 44,000 workers.
The meat and poultry industry is no stranger to winning big on Capitol Hill. Meat and poultry processors have spent more than $28 million on lobbying each year since 2008, according to the Center for Responsive Politics.
Tyson Foods spokesman Gary Mickelson confirmed the company was among those pushing for funding for food inspectors. He called the bill's passage "good news for consumers, farmers, grocery stores, restaurants and meat companies."
Tony Corbo, a senior lobbyist at Washington consumer group Food and Water Watch, said the meat and poultry industry worked the funding bill pretty hard. Though his group is usually on the other side of the industry on issues, he supported saving food inspectors from furloughs.
"You're talking about food safety, and this is going to get everybody's attention, because everybody's got to eat," Corbo said.
First Published: March 22, 2013: 7:23 AM ET
Click on chart for market data
NEW YORK (CNNMoney)
The announcement helped alleviate a cloud of uncertainty that's been looming over Wall Street.
"People like to have a definitive answer, rather than something lurking in the darkness," said Anthony Conroy, head trader at ConvergEx Group.
All eyes are on Cyprus, where lawmakers are discussing new proposals to raise the money the country needs to qualify for its European Union bailout.
"In a few hours, we will be called upon to take the big decisions and reply to the hard dilemmas," said Christos Stylianides, spokesman for the Cypriot government.
U.S. stock futures made gains after Stylianides' comments. Before that, they were flat.
Talks between Russian officials and the Cyprus government broke up early Friday, with no agreement on a cash infusion that could help the island nation secure a €10 billion bailout. Nearly a third of the money in Cyprus' outsized banking sector is from Russian depositors.
"After several days of meeting with Russian officials, Cypriots have come back empty handed," said Marc Chandler, strategist for Brown Brothers Harriman, in an early note to investors, though he added, "One must be impressed with how well the markets have absorbed the still unresolved Cyprus situation."
The clock is ticking and the pressure is on. The European Central Bank told the troubled nation Thursday that it had until Monday to find a solution.
Related: Russia bails on Cyprus
Cyprus's exit from the euro, while potentially disastrous for the island nation, wouldn't likely destabilize the European economy on its own. But investors are watching to see how the situation is resolved and if it could set a precedent for larger economies that may face similarly dire straits in the future.
U.S. stocks fell Thursday, with technology stocks weighing on the broader market following lackluster earnings from Oracle (ORCL, Fortune 500).
Early Friday, shares of Micron Technology (MU, Fortune 500) spiked higher after the company's earnings blew past estimates, sparking a slew of analyst upgrades.
Shares of BP (BP) rose nearly 3% in premarket trading after the firm said it was moving ahead with plans to buy back up to $8 billion of stock after completing the sale of its 50% stake in TNK-BP to Rosneft.
Nike (NKE, Fortune 500) shares surged 8% in premarket trading Friday after the apparel giant reported quarterly earnings on Thursday that beat expectations.
Tiffany's (TIF) stock jumped 5% in premarket trading after the jewelry retailer reported a jump in quarterly profit.
Related: Fear & Greed Index slips back to greed
European markets were mostly higher in midday trading, reversing some of their losses as investors reacted to developments in Cyprus. Asian markets ended mixed. The Shanghai Composite added 0.2%, while the Hang Seng lost 0.5% and the Nikkei declined 2.4%.
The Ifo Business Climate Index for German manufacturing and trade slipped in March, as companies lost enthusiasm about their business outlook compared to February. But the index also showed that Germany -- Europe's strongest economy -- continues to prevail, buoyed by domestic spending. Construction is at its strongest point since reunification of East and West Germany, more than 20 years ago.
First Published: March 22, 2013: 6:10 AM ET
NEW YORK (Fortune)
Fortune wants to make it even easier for you to eavesdrop. The Fortune Brainstorm podcast is a weekly show that features recorded conversations from Fortune's live events.
In this week's installment, Facebook's (FB) Sheryl Sandberg sits down with Fortune's Pattie Sellers to talk about her new book and the most pressing challenges facing women in business today. You'll also learn the No. 1 bad word in the Sandberg household ...
Subscribe to and download the podcast from iTunes.
Or stick the podcast's RSS feed into your favorite podcast app: http://fortunebrainstormpodcast.libsyn.com/rss
First Published: March 22, 2013: 10:24 AM ET
Google Keep has a lot of potential.
NEW YORK (CNNMoney)
Before the arrival of Keep, which Google launched this week, there was no default note-taking app for Android. It was a glaring hole, considering that Apple's (AAPL, Fortune 500) iPhone has built-in Notes and Reminders apps that can be powered by Siri.
Instead of settling for a bare bones app to fill the void, the search giant took things one step further. Keep isn't simply just a place to bank whatever random half-thoughts come to mind: Users can construct to-do lists, stash photos, and color code your notes -- all in one well-designed and easy-to-use interface.
The second you log anything into your phone, it is also accessible from a PC Web browser via Google Drive. Alternatively, you can save things while working on your computer, and it will instantly appear on your phone, ready for use while on the go.
The design may not be as progressive as the to-do app Clear, but Keep makes up for that in its simplicity and efficiency.
Everything in Keep is presented like a Microsoft (MSFT, Fortune 500) Windows Phone-esque stream of tiles. Swiping left or right will archive those notes you no longer need (but don't want to erase entirely). At the top of the app is a text entry field that serves as your main point of entry for all new notes. And when viewing any specific note, tapping any part of that note (title, body, etc.) will allow you to edit it. The entire experience is frictionless.
That said, it's not going to conquer the world quite yet. Organization options are limited -- color coding is your only choice, and you can't re-order your notes. Sharing with others is mostly limited to email and Google+, and the desktop features are pretty bare bones.
But that's more a function of it being new, rather than poorly thought out. Like most things Google (GOOG, Fortune 500), expect the company to flesh out Keep over time and really turn it into our personal internet junk drawer.
It's easy to foresee the day the when users will be able to send anything from their Web browser or Maps directly to Keep. The prospect of Keep incorporating features of services such as Pinterest or Pocket, or even making it easy to catalog streaming media, could turn it into something big. That should scare Evernote.
Keep is not the reinvention of the wheel in any aspect -- there are a plethora of third-party apps already available for Android. But it is a well-exectuted refinement.
In filling a minor, but important gap in its mobile ecosystem, Google gives the competition one less claim of superiority over Android.
First Published: March 22, 2013: 11:35 AM ET
Click for more market data.
NEW YORK (CNNMoney)
The Dow Jones industrial average gained 90 points, or 0.6%. The S&P 500 and the Nasdaq both gained 0.7%. The Dow is back above 14,500 and the S&P 500 is once again less than 1% away from the record high it set in October 2007.
Despite Friday's advance, the major gauges all ended the week down a little less than 0.5%. All three indexes are up between 7% and 11% so far in 2013.
Officials in Cyprus could make decisions on "the hard dilemmas" facing the country later Friday, according to a government spokesman.
"This is being interpreted as a step towards a solution," said Frank Davis, director of sales and trading at LEK Securities. "We don't know what that solution will be, but there seems to be something in the works."
Cyprus is facing a Monday deadline to come up with €5.8 billion in order to secure a €10 billion bailout from the European Union and International Monetary Fund.
Talks between Russian officials and the Cypriot government broke up early Friday, with no agreement on a cash infusion that could help the island nation skirt a default. Nearly a third of the money in Cyprus' outsized banking sector is from Russian depositors.
Related: Russia bails on Cyprus
While a default is potentially disastrous for Cyprus, it wouldn't necessarily destabilize the European economy on its own. But investors are watching to see how the situation is resolved and if it could set a precedent for larger economies that may face similarly dire straits in the future.
"One must be impressed with how well the markets have absorbed the still unresolved Cyprus situation," wrote Brown Brothers Harriman strategist Marc Chandler in a client note.
Related: Exxon nudges out Google! Pick your favorite stock
In corporate news, shares of Micron Technology (MU, Fortune 500) spiked higher after the company's earnings blew past estimates, sparking a slew of analyst upgrades.
Shares of BP (BP) rose after the oil giant said it was moving ahead with plans to buy back up to $8 billion of stock after completing the sale of its 50% stake in TNK-BP to Rosneft.
Nike (NKE, Fortune 500) shares surged after the apparel giant reported quarterly earnings on Thursday that beat expectations.
Tiffany's (TIF) stock jumped after the jewelry retailer reported a jump in quarterly profit.
Shares of BlackBerry (BBRY) fell nearly 8%, revering gains from earlier in the week. The company's new Z10 smartphone, which has received mixed reviews, went on sale at AT&T (T, Fortune 500) stores in the United States Friday.
Related: Fear & Greed Index slips back to greed
In the commodities market, oil prices edged higher while gold prices were little changed.
The U.S. dollar fell versus the euro, British pound and Japanese yen. The yield on the 10-year Treasury note edged up to 1.93%.
European markets ended mixed. London's FTSE 100 edged higher, while the DAX in Germany and France's CAC 40 both edged lower.
The Ifo Business Climate Index for German manufacturing and trade slipped in March, as companies lost enthusiasm about their business outlook. But the index also showed that Europe's strongest economy continues to prevail, buoyed by domestic spending. Construction is at its strongest point since reunification of East and West Germany, more than 20 years ago.
Asian markets ended mixed. The Shanghai Composite added 0.2%, while the Hang Seng lost 0.5% and the Nikkei declined 2.4%.
First Published: March 22, 2013: 9:41 AM ET
A banking collapse would likely lead to Cyprus' exit from the eurozone. The ramifications of that are unknown.
LONDON (CNNMoney)
The European Union wants the beleaguered country to find nearly €6 billion to add to a €10 billion bailout program backed by the International Monetary Fund to save the country's insolvent banks.
And Cyprus is scrambling to put together a plan that will satisfy its would-be rescuers, while not further inflaming depositors.
Amid great uncertainty, one thing is clear -- the collapse of the tiny island nation's banks would lead the 17-member eurozone into uncharted waters.
Without agreement on a European rescue, emergency funding from the European Central Bank that has been keeping Cypriot banks afloat is due to end on Tuesday.
But will the ECB carry out its threat to yank the funding, knowing it would start a chain reaction that would almost certainly end in Cyprus abandoning the euro after just five years?
Some experts believe it will.
"Extending the emergency liquidity assistance without a clear deal could lead to a significant transfer of risk toward the ECB, and questions over its credibility," noted the Open Europe think tank.
"This would be a particularly poisonous debate in Germany, something which neither the ECB nor the German government would want."
Related: Cyprus sitting on natural gas gold mine
Banks in Cyprus have been closed to prevent a run on deposits after initial plans for a tax on all accounts -- since abandoned -- were revealed last weekend. ATMs have continued to function but long queues have formed at some banks.
In the absence of a rescue, Cypriots and foreign depositors will rush to withdraw cash as soon as they can. The government could extend the bank holiday again, and impose limits on financial transactions, but that would only delay the inevitable.
"The longer the restrictions on withdrawing and transferring assets continue, the more it increases the chances of drastic capital flight once they are lifted," wrote IHS Global Insight analyst Sean Harrison in a report.
Restricting the movement of capital wouldn't solve the country's banking crisis but only further depress activity in a recession-hit economy dependent on financial services and tourism, exacerbating the government's debt crisis.
Cyprus could close its two weakest banks -- it is already working on a plan to restructure one of them, Popular Bank of Cyprus -- but depositors would face big losses, further undermining confidence in the system as a whole.
Unable to restore trust in its banks and with an economy locked in a downward spiral, social and political unrest would escalate quickly. At that point, Cyprus may decide it has no option but to abandon the euro and start printing its own currency.
A new Cyprus pound would be worth much less than the euro, imposing even more pain on depositors than the original bank levy rejected by parliament on Tuesday.
What would a Cyprexit mean for the eurozone?
"If a collapse were to occur, we maintain our view that Cyprus is so different from any other eurozone country and banking system that contagion is far from obvious," said Unicredit chief economist Erik Nielsen.
While European stock markets and the euro took a hit this week, government bonds in Italy and Spain held steady. And U.S. stock markets ended the week down a little less than 0.5%.
Still, it's possible the ECB could feel pressure to take emergency steps to prop up markets by, for example, purchasing government bonds.
Spain has secured an EU-backed bailout of its banking industry, and policymakers and investors appear at this point to be relaxed about the absence of a government in Rome, pointing to measures already taken to control its borrowing.
Some analysts believe it's more likely that another small eurozone country -- Slovenia -- could move center stage if Cyprus collapses.
Slovenia has an economy twice the size of Cyprus, but it has already been forced to bail out its banking sector, which is plagued by a high and rising rate of bad loans, and a new government may struggle to fund the recapitalization.
The International Monetary Fund says Slovenia may need to provide an extra €1 billion in capital for its three largest banks, at a time when the country's debt burden is rising due to a recession caused by poor export demand and austerity measures.
First Published: March 23, 2013: 7:17 AM ET
Many courts have ruled that the ring is a "conditional gift" that must be returned to the person who bought it.
NEW YORK (CNNMoney)
More than $5,000 is spent on the average engagement ring. And deciding who gets to keep the ring when the big day gets called off is such a hotly-contested issue that most states have laws governing its ownership.
Some bitter lovers even take the case to court.
Colette DiPierro, 31, thought her broken engagement was behind her when she learned that her ex-fiancé Christopher Reinhold was suing, demanding the return of her $17,500 diamond engagement ring.
They had dated for almost two years when Reinhold proposed in May 2009. But the couple began to fight, often about money, and they split four months later, said DiPierro, a physician assistant in Staten Island, N.Y. The following spring, he filed a lawsuit. Reinhold and his attorney did not respond to requests for comment.
Poll: Who do you think should keep the ring?
According to DiPierro, she held onto the ring because he hadn't repaid her for his share of $40,000 worth of living expenses. Their deal: she had paid for rent, food, car payments and other bills while Reinhold saved for the ring.
"I helped him save so I felt that I was holding onto the ring for collateral," she said.
Laws vary by state, but many consider the ring a "conditional gift" until the couple says "I do," -- meaning that regardless of who gets cold feet, the ring must be returned to the person who bought it, said Alton Abramowitz, a New York-based attorney and president of the American Academy of Matrimonial Lawyers.
But it's not always that simple.
A New York judge ruled in 2006 that a woman could keep her 3.4-carat diamond engagement ring because her ex had not yet been divorced from his previous wife when he proposed. The Montana Supreme Court, meanwhile, has shot down the conditional gift theory entirely, ruling that the ring is the rightful property of its recipient.
In certain states, determining who gets the ring rests on who called off the wedding. And, to complicate matters further, some states treat an engagement ring given on a holiday differently than one given on a non-holiday.
In DiPierro's case, because the ring was given to her on her birthday, she argued that it should be hers to keep.
Related: How to ask a friend to pay you back
New York State law was on her side, said George Muscato, a Lockport, N.Y.-based attorney who recently represented a female client in an engagement ring-related suit. He did not represent DiPierro.
"If you give her that ring on a holiday like Christmas or Valentine's Day or her birthday, then you are making a gift to her as a present [that is] unconditional," he said.
But as legal proceedings dragged on for more than a year, DiPierro said she ultimately agreed to a financial settlement with Reinhold.
While she's glad her time in court is behind her, DiPierro said it drastically changed her perspective on money and romantic relationships.
"I guess, in some cases, I was naive," she said. "Money became very complicated in every future relationship."
First Published: March 22, 2013: 7:47 AM ET
LONDON (CNNMoney)
The tiny island nation needs to find a way to raise nearly €6 billion to satisfy the conditions of a €10 billion EU rescue or face economic meltdown when banks reopen Tuesday after a 10-day hiatus.
Late Friday, after a long debate, lawmakers passed bills to create a sovereign wealth fund, nationalize pension assets and impose strict limits on the movement of capital.
But the most important vote -- on introducing a tax of 20% to 25% on deposits of more than €100,000 euros at Bank of Cyprus, the country's biggest lender -- was still to come.
The timing of a vote on the tax was uncertain. Cypriot officials and EU finance ministers were in talks this weekend over the 11th-hour effort to agree on a plan. They plan to meet Sunday in Brussels at 1pm ET.
Officials have been scrambling to find ways to raise Cyprus' share of an EU bailout since the country's parliament threw out an unprecedented plan to tax all bank deposits earlier this week.
Without a rescue, the European Central Bank has said it will cut off the emergency funding that has been keeping the country's biggest banks afloat since Tuesday, potentially leading to Cyprus' exit from the eurozone.
Cyprus' plan includes an overhaul of its bloated and largely insolvent banking sector.
The country's second largest bank, Popular Bank of Cyprus, would be broken up and depositors under €100,000 protected. As a first step, the country agreed to sell the Greek branches of its two biggest banks to Athens-based Piraeus Bank.
Cyprus' top bankers said a tax on bank deposits that protected small savers with less than €100,000 was still the best option to prevent catastrophe.
"In my opinion, if we had done the haircut on deposits ... it would have been a much better solution because the banks would be safe," Takis Phidias, Popular Bank's acting CEO told CNN.
The Bank of Cyprus also called for the adoption of the eurozone proposal, fearing that a lack of viable alternatives would lead to a collapse, putting all deposits at risk.
"We want to highlight that any return to the Cypriot pound means significant loss of asset value and [would] lead to a vicious circle of devaluation and hyperinflation," the bank said in a statement, according to Reuters.
The proposed tax on all accounts, including deposits covered by the national guarantee program, outraged Cypriots and prompted widespread condemnation for undermining the principle that ordinary savers should not pay for bank failures.
Cypriots have been queuing at cash machines since the levy was first announced on March 16.
Related: Cyprus is stiing on a natural gas gold mine
Cyprus has been brought to its knees by the losses that its oversized banking sector sustained on investments in Greece, and a deep recession.
Eurozone policymakers want Cyprus to stump up cash from its banks as part of the rescue to ensure the country's debt doesn't become unsustainable. The total funding required to recapitalize the banks and meet government commitments is almost equal to annual gross domestic product.
And the EU believes wealthy foreigners who have profited from Cyprus' low tax rates should contribute. More than half of bank deposits are held by foreigners, many of them Russian.
On Friday, Cyprus' Finance Minister Michalis Sarris returned from talks in Moscow empty handed. He had been hoping Russia would ease the pressure by relaxing the terms of an existing €2.5 billion loan, and possibly invest in the island's offshore gas reserves.
Russia would wait for a decision by Cyprus' European partners and the International Monetary Fund before deciding whether to take part in a rescue, Finance Minister Anton Siluanov said.
Moody's rating agency estimates that Russian banks have lent $30 billion to $40 billion to Cyprus-based companies of Russian origin, equivalent to up to 20% of the banks' capital base.
-- CNN's Jim Boulden and Fred Pleitgen contributed to this article.
First Published: March 22, 2013: 2:33 PM ET
| By David Evans | Friday, March 22nd 2013, 21:07 GMT |
Robert Kubica completed day one of his European Rally Championship debut with a clean sweep of stage wins and a lead of over a minute
You have viewed over 30 free stories this month. Why stop there? Click here to find out how to continue reading.
| By Gary Watkins | Friday, March 22nd 2013, 21:50 GMT |
FIA GT Series boss Stephane Ratel has hit his target of achieving more than 20 full-season entires for the new championship
You have viewed over 30 free stories this month. Why stop there? Click here to find out how to continue reading.
| By Connell Sanders Jr | Saturday, March 23rd 2013, 00:47 GMT |
Denny Hamlin secured pole position for Sunday's NASCAR Sprint Cup race at Fontana in Friday's qualifying session
You have viewed over 30 free stories this month. Why stop there? Click here to find out how to continue reading.
Subscribe to Premier Sports TV to watch all Sprint Cup events live in the UK. Visit www.premiersports.tv for more information.
| By David Evans | Thursday, March 21st 2013, 16:12 GMT |
Two-time Canarias Rally winner Jan Kopecky says he doesn't expect Robert Kubica to have any problem finding a potentially winning pace on this week's third round of the European Rally Championship.
You have viewed over 30 free stories this month. Why stop there? Click here to find out how to continue reading.
| By Kevin Turner | Thursday, March 21st 2013, 16:37 GMT |
British Touring Car boss Alan Gow has hailed the new NGTC rules after announcing a capacity grid at the 2013 media day.
You have viewed over 30 free stories this month. Why stop there? Click here to find out how to continue reading.
| By Jamie O'Leary | Thursday, March 21st 2013, 17:15 GMT |
Andrew Jordan set the pace in the British Touring Car Championship's official pre-season test at Donington Park on Thursday
You have viewed over 30 free stories this month. Why stop there? Click here to find out how to continue reading.
| By Jonathan Noble | Wednesday, March 20th 2013, 17:27 GMT |
Mercedes motorsport boss Toto Wolff is convinced his Formula 1 team is more on top of the tyre situation than it was last year, despite a repeat of problems in the Australian Grand Prix
You have viewed over 30 free stories this month. Why stop there? Click here to find out how to continue reading.
| By Jonathan Noble | Wednesday, March 20th 2013, 17:41 GMT |
Lotus thinks there is scope for it to be even stronger in the Malaysian Grand Prix this weekend than it was on its way to winning with Kimi Raikkonen in Australia
You have viewed over 30 free stories this month. Why stop there? Click here to find out how to continue reading.
| By Glenn Freeman | Wednesday, March 20th 2013, 22:33 GMT |
You have viewed over 30 free stories this month. Why stop there? Click here to find out how to continue reading.
'); if (google_ads[0].type == "text") { for(i=0; i '; } s += '' + '' + '' + google_ads[i].line1 + '| By Edd Straw | Tuesday, March 19th 2013, 17:08 GMT |
Max Chilton believes that learning to minimise the time lost to blue flags is a priority after his Formula 1 debut in the Australian Grand Prix
You have viewed over 30 free stories this month. Why stop there? Click here to find out how to continue reading.
| By Marcus Simmons | Tuesday, March 19th 2013, 19:51 GMT |
Formula 3 veteran Will Buller kept his T-Sport Dallara and its ThreeBond Nissan engine on top as he headed the final FIA F3 European Championship pre-season test at Monza
You have viewed over 30 free stories this month. Why stop there? Click here to find out how to continue reading.
| By Glenn Freeman | Tuesday, March 19th 2013, 20:05 GMT |
Red Bull junior Antonio Felix da Costa led the way on the first day of the final Formula Renault 3.5 pre-season test at Barcelona
You have viewed over 30 free stories this month. Why stop there? Click here to find out how to continue reading.
| Sunday, March 17th 2013, 11:28 GMT |
Australia race quotes: Ferrari
You have viewed over 30 free stories this month. Why stop there? Click here to find out how to continue reading.
'); if (google_ads[0].type == "text") { for(i=0; i '; } s += '' + '' + '' + google_ads[i].line1 + '| Sunday, March 17th 2013, 11:31 GMT |
Post-race press conference - Australian GP
You have viewed over 30 free stories this month. Why stop there? Click here to find out how to continue reading.
'); if (google_ads[0].type == "text") { for(i=0; i '; } s += '' + '' + '' + google_ads[i].line1 + '| By Connell Sanders Jr | Sunday, March 17th 2013, 20:18 GMT |
Kasey Kahne made up for the disappointment of being denied Las Vegas victory last week with a great drive to victory at Bristol Motor Speedway
You have viewed over 30 free stories this month. Why stop there? Click here to find out how to continue reading.
Subscribe to Premier Sports TV to watch all Sprint Cup events live in the UK. Visit www.premiersports.tv for more information.
| Sunday, March 17th 2013, 02:13 GMT |
Australia qualifying quotes: Ferrari
You have viewed over 30 free stories this month. Why stop there? Click here to find out how to continue reading.
'); if (google_ads[0].type == "text") { for(i=0; i '; } s += '' + '' + '' + google_ads[i].line1 + '| Sunday, March 17th 2013, 02:17 GMT |
Australia qualifying quotes: Pirelli
You have viewed over 30 free stories this month. Why stop there? Click here to find out how to continue reading.
'); if (google_ads[0].type == "text") { for(i=0; i '; } s += '' + '' + '' + google_ads[i].line1 + '| Sunday, March 17th 2013, 02:24 GMT |
Australia qualifying quotes: Lotus
You have viewed over 30 free stories this month. Why stop there? Click here to find out how to continue reading.
'); if (google_ads[0].type == "text") { for(i=0; i '; } s += '' + '' + '' + google_ads[i].line1 + '
Divisions of SAC Capital settled insider trading charges for $619 million.
NEW YORK (CNNMoney)
But the SEC said that it may still be investigating individuals at the firm, which was founded by billionaire Steven A. Cohen.
The SEC said one unit, CR Intrinsic Investors, agreed to pay roughly $600 million in fines, because the fund made $275 million in "illegal profits or avoided losses" related to trading on inside information in the pharmaceuticals company Elan (ELN).
Another unit of SAC, Sigma Capital, will pay the SEC $14 million for trading "based on nonpublic information" from the financial results of Dell (DELL, Fortune 500) and Nvidia (NVDA), according to the SEC's complaint.
Related; SAC Capital's day of reckoning
The $600 million settlement is the largest settlement in the SEC's history for insider trading. The next largest insider trading penalty was the $92.8 million that billionaire hedge fund manager Raj Rajarathnam paid to settle charges for "widespread insider trading" in 2011, according to the SEC.
Junk bond king Michael Milken paid $400 million in 1990 to settle charges that went beyond insider trading and included stock market manipulation, margin violations and defrauding Drexel Burnham Lambert customers.
On a call with reporters, SEC Acting Enforcement Director George Canellos said these settlements end all "pending cases" against SAC.
"This settlement is a substantial step toward resolving all outstanding regulatory matters and allows the firm to move forward with confidence," SAC Capital wrote in a statement.
Still, other cases are pending against individuals at these firms. Both the SEC and the U.S. Attorney for the Southern District of New York have civil and criminal cases pending against CR Intrinsic portfolio manager Mathew Martoma.
An SEC official said that this settlement does not preclude any further actions against other individuals at these funds, including Cohen.
Canellos praised his staff for piecing together this case using a " jeweler's eye for evidence" by digging through trading records, phone records, flight logs and examining trading patterns.
He specifically noted that no wire taps were used to build out the evidence.
According to the SEC's complaint, CR Intrinsic executed the trades using inside information in July 2008 "ahead of what would be a negative announcement involving the clinical trial results for an Alzheimer's drug being jointly developed by Elan and Wyeth."
Dr. Sidney Gilman, a professor of neurology at the University of Michigan Medical School, helped oversee the trial and gave Martoma the results more than a week ahead of the public announcement.
CR Intrinsic and other units of SAC quickly sold roughly $700 million in Elan and Wyeth shares and then took bets against both companies by buying short positions that they eventually sold for $960 million after the trial announcement.
Related: Heinz deal sparks SEC insider trading investigation
Federal regulators have been circling SAC Capital for years.
Since its founding in 1992, SAC has rewarded its investors with annualized returns of more than 25%. In 2012, SAC logged gains of 13%, according to a source familiar with the fund's performance.
Still, many big investors have chosen to redeem money from SAC lately because of the insider trading charges. In mid February, investors redeemed roughly $1.68 billion. As of January 1, 2013, SAC managed $15 billion. Of that, $8 billion is from employees, mostly Cohen's.
Citigroup (C, Fortune 500) removed $187 million of client funds out of SAC earlier this year.
Morgan Stanley (MS, Fortune 500) still has $180 million tied up with SAC, according to a source. A bank spokesperson declined to comment. Morgan Stanley has a bigger incentive to stay with SAC than most of its other clients. The bank is one of five so-called prime brokers that provide SAC with lucrative support services. The other four prime brokers do not invest with SAC though.
First Published: March 15, 2013: 2:55 PM ET
Frankfurt, Germany's financial capital, needs its banks -- and those in the rest of the EU -- to take further steps to repair balance sheets.
LONDON (CNNMoney)
In its first assessment of the soundness and stability of the European Union's banking and insurance sector, the IMF said much had been achieved in response to the financial crisis but more forceful action was needed.
"Financial stability remains fragile," the IMF said, noting that the region was still vulnerable to shocks that could stem from lower-than-expected growth or a renewed loss of market confidence.
"These vulnerabilities are exacerbated by the high degree of concentration in the banking sector, regulatory and policy uncertainty, and the major gaps in the policy framework that still need to be filled."
Related: Dutch bank rescue shows problems continue
The European economy is still feeling the pain of the financial crisis. Eurozone gross domestic product is set to contract for a second consecutive year, its banks are weighed down with bad debts, and governments are struggling to put their finances on a sustainable footing.
Banks have been repairing their balance sheets by raising new capital and shedding assets, the European Central Bank has enhanced liquidity with unconventional monetary operations, and EU leaders have agreed to create a single eurozone regulator under the auspices of the ECB.
Those measures have helped restore confidence in European assets -- equity markets have rallied and yields on government bonds issued by weaker eurozone states have fallen sharply since last summer.
Related: British banks may need more capital
But the positive sentiment has yet to feed through into the real economy, in part because the banking sector is still hobbled.
The IMF said EU states needed to take urgent action to complete the repair of bank capital this year, including addressing the issue of bad debts, and to make sure the launch of the single banking regulator in 2014 was accompanied by the creation of a single mechanism for winding up failing banks.
First Published: March 15, 2013: 12:13 PM ET
