| By Gary Watkins | Monday, September 29th 2014, 15:31 GMT |
GT rookie Daniel Lloyd has secured a late deal to make his US sportscar debut in the Petit Le Mans United SportsCar Championship enduro at Road Atlanta this weekend
You have viewed over 20 free stories this month. Why stop there? Click here to find out how to continue reading.
| By Jonathan Noble | Monday, September 29th 2014, 15:55 GMT |
Caterham believes a new front wing that it will bring to the Japanese Grand Prix should lift it clear of main Formula 1 rival Marussia
You have viewed over 20 free stories this month. Why stop there? Click here to find out how to continue reading.
| By Mark Glendenning | Monday, September 29th 2014, 17:56 GMT |
Tony Stewart has not yet decided whether he will ever race a sprint car again, despite being cleared of any criminal wrongdoing in the accident that killed Kevin Ward Jr
You have viewed over 20 free stories this month. Why stop there? Click here to find out how to continue reading.
| By Kevin Turner | Sunday, September 28th 2014, 17:24 GMT |
Mat Jackson won the reversed-grid British Touring Car race at Silverstone after a dramatic battle involving the championship contenders
You have viewed over 20 free stories this month. Why stop there? Click here to find out how to continue reading.
| By Hal Ridge | Sunday, September 28th 2014, 15:39 GMT |
Petter Solberg became the first World Rallycross champion with third place at Franciacorta in Italy, while Timmy Hansen gave Peugeot's Hansen-run works programme its first win
You have viewed over 20 free stories this month. Why stop there? Click here to find out how to continue reading.
| Sunday, September 28th 2014, 21:32 GMT |
Jeff Gordon claimed an ultimately dominant NASCAR Sprint Cup win at Dover as the original 16-strong Chase field was whittled down to 12
You have viewed over 20 free stories this month. Why stop there? Click here to find out how to continue reading.
| By Hal Ridge | Saturday, September 27th 2014, 15:29 GMT |
Swede Johan Kristoffersson heads the order after two heats of round 10 of the World Rallycross Championship in Italy.
You have viewed over 20 free stories this month. Why stop there? Click here to find out how to continue reading.
| By Kevin Turner | Saturday, September 27th 2014, 15:53 GMT |
Jason Plato took pole position for the penultimate round of the British Touring Car Championship at Silverstone.
You have viewed over 20 free stories this month. Why stop there? Click here to find out how to continue reading.
| By Andrew van Leeuwen | Saturday, September 27th 2014, 15:59 GMT |
Mattias Ekstrom has been handed a five-place grid penalty for Sunday's DTM race at Zandvoort
You have viewed over 20 free stories this month. Why stop there? Click here to find out how to continue reading.
NEW YORK (CNNMoney)
Starboard Value Partners, the same hedge fund that has been criticizing Olive Garden owner Darden Restaurants (DRI) for its food, released a letter to Mayer and Yahoo's board saying that it had acquired a significant stake in Yahoo and wants the company to do a strategic deal with rival AOL (AOL, Tech30).
Shares of Yahoo (YHOO, Tech30) shot up more than 4% Friday after the letter's release. AOL's stock rose more than 3.5% on the news as well.
Mayer said in a press release that Yahoo will review Starboard's letter and that it "looks forward" to discussing it with the hedge fund. She added that Yahoo has "great confidence in the strength" of its business and that the company will give an update about how it plans to use some of its capital during a conference call following its third quarter earnings report in October.
AOL declined to comment.
Starboard was also not available to comment about exactly how big of a stake it owns in Yahoo. It has not yet made a filing with the Securities and Exchange Commission to disclose its position.
Related: Alibaba surges on its first day of trading
Speculation about a Yahoo-AOL merger has been around for years -- pretty much since AOL was spun off from CNNMoney parent company Time Warner (TWX) in 2009. The chatter picked up steam once Mayer joined Yahoo from Google since AOL CEO Tim Armstrong is also a Google veteran.
The rumors surfaced again last week as Yahoo prepared to cash in on part of its stake in Chinese e-commerce company Alibaba. Yahoo is estimated to have raised more than $5 billion after taxes from selling some of its Alibaba (BABA, Tech30) stock. AOL is worth about $3.5 billion.
In its letter, Starboard said shares of Yahoo have underperformed compared to other big techs this year. The stock is flat despite a decent rally in anticipation of the Alibaba IPO.
Starboard said in its letter that it feels Yahoo's core business is "deeply undervalued" and that the company would be better off selling the rest of its Alibaba stake as well as an investment in Yahoo Japan in a tax-efficient manner.
As for an AOL deal, Starboard estimates there could be $1 billion in cost savings through a combination of the two companies.
Starboard already has a contentious history with AOL. The hedge fund pushed AOL to make strategic changes back in 2012 and even tried to nominate its own candidates to AOL's board. That effort failed and Starboard wound up selling its stake in AOL as a result.
Starboard added that it felt Yahoo and AOL together could "more successfully navigate the ongoing industry changes" and increase revenue.
Those industry changes include a dramatic shift to mobile for online content and an increased emphasis on video and social media. Both AOL and Yahoo have had a tough time competing against Google (GOOGL, Tech30), Facebook (FB, Tech30) and Twitter (TWTR, Tech30) in the battle for online ad dollars over the past few years.
Still, even though a deal between Yahoo and AOL might make sense since both companies have been building up their news operations lately, many analysts say that merging them would do little to make them more of a threat to Google and Facebook.
And while Mayer has made numerous acquisitions of startups since she joined Yahoo in 2012, most notably of blogging site Tumblr, an AOL purchase would be a very ambitious deal.
Starboard said that many of the purchases made on Mayer's watch have "failed to deliver material revenue growth." The hedge fund also said Yahoo would be better off "halting the current aggressive acquisition spree."
Although it does seem odd that Starboard's answer to ending Mayer's M&A binge is for her to do an even bigger deal.
First Published: September 26, 2014: 1:16 PM ET
Ello doesn't require your picture or your name to sign up. NEW YORK (CNNMoney)
Earlier this month, the social media giant made headlines for suspending the accounts of several gay and transgender entertainers. The rationale? The accounts weren't in the holders' "real" names.
"The more they know about you, the more money they make," said Ello co-founder Paul Budnitz regarding Facebook. "I, quite frankly, don't care."
The platform, which is still in beta, launched just over a month ago with roughly 90 people and is still invite-only. This week, the site has seen an incredible surge in the amount of invite requests. He didn't specify the total number, but said that requests and approvals together often totaled 40,000 an hour.
Budnitz said they didn't expect the site to grow so quickly and are still developing its features. (He acknowledged this could mean a little bit of downtime).
Related: Free startup advice from Silicon Valley's best
According to Budnitz, Ello has "really been embraced by the LBGT community," as well as artists and performers.
Ello wants its users to feel more like people and less like data points. Users are free to be whoever they want so long as they abide by basic rules, like no bestiality or impersonation of public figures, according to Budnitz.
To join, all you need is an invite from a friend and an email address.
"We're not geo-locating, we're stripping IP addresses, we don't ask your name, your gender or sexual orientation. All I care about is that you obey the rules of Ello," said Budnitz, who is one of its seven founders.
About a year ago, they started the platform as a private social network for friends of friends to share their artwork and communicate. Eventually, they had 1,000 friends of friends who wanted in to the network, so they decided to open up the circle.
Related: 6 designers shaking up fashion
They received a $435,000 seed investment from FreshTracks Capital, a Vermont-based VC firm. (Budnitz also lives in Vermont, but other founders are located in Colorado.)
But how does a non-ad supported platform survive once the funding runs dry?
"Isn't it just so sad? Rather than cheering on a new model that actually makes things better, people have to say, 'You can't change things,'" said Budnitz. "Our business model is really simple, and proven. It's like an app store."
By that, Budnitz means they'll upsell users on special features to customize their Ello experience -- and he's confident that he'll be able to monetize the platform this way.
"We literally have thousands of people writing to us with feature suggestions, saying: these are the things I'd pay for."
The top request so far? People wanting to control a professional and personal profile with one log-in. Budnitz says they're likely to roll that out in the future and charge a one-time fee of $2.
First Published: September 26, 2014: 6:43 PM ET
LONDON (CNNMoney)
The ruble fell another 1.6% against the U.S. dollar Friday, extending a slump that has wiped nearly 16% off its value since the start of the year.
Many emerging market currencies have tumbled this month as investors brace for higher interest rates in the U.S., which make the dollar more attractive.
But the ruble has been one of the worst performers. A ceasefire agreement between Ukraine and Russia-backed rebels signed last month appears to be holding, so why is the currency back on the skids?
Freezing assets: The Russian parliament is reportedly discussing a draft law that would allow courts to confiscate assets of foreign investors. That is only likely to accelerate the exodus of capital that saw $75 billion flee Russia in the first six months of the year -- more than in the whole of 2013.
And in a stark reminder of the risks of doing business in Russia, the state has turned on one of its own. State prosecutors on Friday seized an oil company belonging to one of the country's leading oligarchs, Vladimir Evtushenkov.
He was placed under house arrest last week and charged with money laundering when his holding company -- Sistema -- bought the Bashneft oil firm in 2009.
Sistema shares plunged 23% in London. Sistema, which has denied any wrongdoing, said it was "clarifying the situation."
The case has echos of the Yukos affair a decade ago, when Mikhail Khodorkovsky was thrown in jail and forced to sell most of his oil company to state energy giant Rosneft.
Related: 10 Western companies getting slammed in Russia
Lasting damage: Russia's oil-dependent economy was already slowing down before Moscow's annexation of Crimea, and its support for separatist rebels in eastern Ukraine prompted the West to impose successive rounds of ever tougher sanctions.
The measures are aimed at restricting Russia's access to Western finance, advanced energy technology and services, and arms. Russia's biggest banks, energy companies and a handful of businessmen close to President Vladimir Putin have been targeted.
The chill in relations with key trading partners is damaging investment, and consumers are hurting from rising prices after Russia banned the import of many Western foodstuffs.
Russia's $2 trillion-a-year economy stalled in the first six months, and a new forecast from the World Bank predicts lasting damage for several years to come.
In a report published this week, it forecast growth of just 0.5% in 2014 and 0.3% in 2015. And the picture barely improves in 2016, according to its baseline forecast. A more pessimistic scenario foresees the Russian economy slipping into recession this year and contracting further in 2015 and 2016.
First Published: September 26, 2014: 10:03 AM ET
Apple's new Health app in action. NEW YORK (CNNMoney)
As part of Apple's (AAPL, Tech30) new mobile operating system, developers can build apps that measure things like heart rate, sleep, weight and blood pressure. If users choose to do so, they can then send that information to doctors for medical advice.
Health insurers, which are barred by Obamacare from denying coverage based on pre-existing conditions, can't base their decisions on this kind of information. But the situation is different for life insurers, who use medical records to make decisions about the relative risks of prospective customers.
"If I'm an insurance company, I'd want access to everything, all the data points, so I can make an informed business decision," said Bradley Shear, a lawyer who works on digital privacy issues.
Related: Apple fixes software bug in iPhone 6
Life insurers take all kinds of information into account as they make policy decisions: age, medical history, occupation, and whether you're a smoker, just to name a few. Whether and how health app data might figure into these decisions remains an open question.
"We don't traffic in hypotheticals," said Jack Dolan, a spokesman for the American Council of Life Insurers. "We have to underwrite using reliable information and sound actuarial principles."
But it's not hard to imagine how data like weight and blood pressure could figure into these calculations.
"If you lose a lot of weight in a short period of time, that may be an indication that you've got a health condition," Shear said.
Apple did not respond to requests for comment.
The insurance industry has already found ways of using tracking data in other contexts.
So-called "usage-based insurance," for example, is a fast-growing segment of the auto insurance market. With UBI, drivers agree to install devices from insurers that measure things like location, speed, miles driven and airbag deployment to help calculate rates.
There's also the possibility of health information being sought by plaintiffs in civil cases. Location data from toll tags like E-ZPass, for example, has previously been used in divorce proceedings.
Related: 6 things to love -- and hate -- about the iPhone 6
Of course, none of this means that you shouldn't share digital health information with your doctor, or that the information will be shared without your consent. But it's one more issue to be mindful of as more and more of our lives are tracked online.
"Doctors want this information, patients want this information and we're seeing safeguards put in place to show consumers how and when that information becomes part of your medical record," said Gerard Stegmaier, a privacy expert with the law firm Goodwin Procter. "It's a brave new world where we're going to have to figure things out as we go along."
First Published: September 26, 2014: 6:11 PM ET
NEW YORK (CNNMoney)
The girls, Amy Rademaker, age 15, and Natasha Weigel, age 18, were passengers in a 2005 Cobalt that crashed in Wisconsin's St. Croix County in October 2006. Rademaker was in the front passenger seat, Weigel was in the back seat.
Because the crash took place before GM's 2009 bankruptcy, the families would have had a hard time if they tried to sue GM. GM (GM) isn't legally responsible for injuries or deaths that occurred before it filed for Chapter 11. So they have decided to take the settlement, according to their attorney Bob Hilliard.
"Given the unknowns including GM's bankruptcy defense, my clients determined it was time to begin to emotionally move away from GM's unforgivable actions," he said.
Related: Two died in 2006 crash. But GM counts only one
Hilliard did not disclose the settlement amount. The fund will pay at least $1 million to the families of those killed in the recalled cars. Ken Rimer, the Weigel's stepfather, said the money was not the major issue in the decision to settle. He said the families struggled with giving up their rights to sue.
"It's 'OK, we can go on with our lives,'" he told CNN. "We've come a long way in 7-1/2 years."
Rimer said he hopes that settling means that he and other family members can sit down with GM CEO Mary Barra to talk with her, not in an accusatory way. Barra has met with family members of other victims and apologized to them.
Rimer said the families will also will continue to support legislation to toughen regulatory oversight of automakers and to make more information on car defects publicly available faster.
The families did meet with Kenneth Feinberg, the attorney hired by GM to administer the fund and decide how to compensate victims. Hilliard praised Feinberg's discussions with his clients.
"Mr. Feinberg was thoughtful and caring when he met with these folks," said Hilliard. "He listened to them and talked with them about Amy and Natasha. The process was helpful and healing."
Related: 21 deaths now tied to GM defect
Feinberg said no other family of someone killed in a crash has accepted an offer yet.
For many years GM (GM) did not count Weigel as one of the 13 fatalities it tied to the recall problems because there was no air bag available to back seat passengers. But Feinberg determined both deaths were caused by the faulty ignition switch.
Feinberg's current estimate of deaths tied to the recall stands at 21.
First Published: September 26, 2014: 10:45 AM ET
A 2013 Ford C-Max, one of the cars recalled due to a flaw in its air bag system. NEW YORK (CNNMoney)
The automaker said it is not aware of any accidents or injuries related to the problem.
Ford (F) said the air bag warning light should go on, indicating a problem with the safety systems. But Ford will replace the computer module in the cars that are the source of the potential problem.
The models covered by the recall include some of the the Ford C-Max, Fusion, Escape and Lincoln MKZ vehicles from model years 2013 and 2014.
First Published: September 26, 2014: 10:54 AM ET
Carmen Segarra made audio recordings of her time working at the New York Fed. NEW YORK (CNNMoney)
Carmen Segarra, who worked at the Federal Reserve Bank of New York for seven months in late 2011 and early 2012, says she has evidence from 48 hours of audio she taped during her time at the regulator.
According to a report by the radio program This American Life in conjunction with ProPublica, Segarra asserts that the tapes reveal how her bosses at the New York Fed repeatedly shot down her suggestions for tougher regulations on Wall Street powerhouse Goldman Sachs (GS).
Related: Elizabeth Warren: The market is broken
Segarra is currently suing her former employer over her dismissal, which she believes was a result of her trying to blow the whistle.
In one well-publicized case, Goldman came under fire for its role in the $21 billion acquisition of pipeline company El Paso by Kinder Morgan (KMI). Goldman was advising El Paso on the deal even though it owned 20% of Kinder at the time. That conflict later sparked shareholder lawsuits.
In Segarra's view, Goldman lacked a firm-wide conflicts of interest policy. She and her legal team began preparing a formal finding on Goldman that would have forced the bank to adopt a policy suitable to the Fed, the report asserts.
However, she received an icy reception from her superiors, who insisted Goldman had a conflict of interest policy, albeit a weak one.
"Carmen, I don't understand why the fixation on whether they do or don't have a policy," said Mike Silva in the audio recording posted online. "They have one, we can say it's a miserable one."
In another situation, Goldman did a transaction with Spain's Banco Santander that would make the Spanish bank's balance sheet look stronger than it was.
The deal would net Goldman at least $40 million, while at the same time making Santander appear healthy to European regulators.
"It's pretty apparent when you think this thing through that it's basically window dressing that's designed to help Banco Santander artificially enhance its capital," said Mike Silva, who at the time was the New York Fed's top regulator stationed inside Goldman. "We're looking at a transaction that's legal but shady," he added.
Related: Banks need more cash to prevent next crisis
But Silva never took Goldman to task on the deal, according to Segarra, despite the fact that he felt the regulator needed to sign off on it. Silva told his employees that he was going to grill Goldman on why they didn't get official approval from the New York Fed.
"Sounds like that dropped out at some point, or...?," was all he could muster in a meeting with Goldman executives.
The New York Fed and Goldman are both pushing back on the report.
In a statement to This American Life posted on the its website, the New York Fed says Segarra had no previous experience as a regulator and was let go "entirely on performance grounds, not because she raised concerns as a member of the examination team about any institution." The New York Fed also pointed out that Segarra is asking for $7 million to settle her lawsuit.
Goldman, for its part, also released a statement to This American Life, claiming that a quick Google search "shows publicly available Goldman Sachs documents outlining the management of conflicts."
Goldman also noted that Segarra unsuccessfully interviewed with the bank multiple times prior to her job with the New York Fed.
First Published: September 26, 2014: 4:03 PM ET
Isabella Tanikumi is suing Disney for $250 million claiming "Frozen" stole from her 2010 autobiography. NEW YORK (CNNMoney)
Isabella Tanikumi -- who also goes by L. Amy Gonzalez -- has filed a lawsuit claiming that Disney's animated film about Princess Anna, her magical sister Elsa, and their talking snowman Olaf took elements from her 2010 autobiography "Living My Truth."
Court documents obtained by E! News includes a list of 18 "Frozen" elements that Tanikumi's claims were plagiarized directly from her book.
These include both stories having two sisters, a village, betrayal, open doors/gates, and a "moon setting."
The documents also note that the author not only seeks damages to the tune of the $250 million, but also that Disney "cease and desist from any and all sales, distribution and marketing of 'Frozen' in any media format."
That would include a lot of products -- considering that "Frozen" is one of Disney's biggest franchises.
The 2013 film was incredibly popular at the box office, taking in about $1 billion. It has also made millions from merchandise, and stands to make millions more from an upcoming Broadway show, spin-offs, and soon even a Disney World theme park ride.
"Ms. Tanikumi is a very private individual and does not wish to be interviewed at this time," Tanikumi's attorney, William T. Anastasio told E! News. "As the case moves through the courts, I am sure more information will become available concerning her claims."
Another of Tanikumi's works, "Yearnings of the Heart" was also mentioned in the suit.
The animated blockbuster is loosely based on Hans Christian Andersen's fairy tale "The Snow Queen," according to Disney.
When asked for comment, a Disney spokeswoman evoked the film's most famous tune in this e-mail response: "This is beyond ridiculous, she needs to let it go."
Related: Disney princesses ditch Mattel, run away with Hasbro
Related: Yet another 'Frozen' spinoff: An Epcot theme park attraction
First Published: September 26, 2014: 1:13 PM ET
NEW YORK (CNNMoney)
This week, the payment processing company PayPal took its first venture into the world of all-digital money.
Merchants that work with eBay's (EBAY, Tech30) PayPal can now easily start accepting payments from customers that use Bitcoin (XBT), an independent, government-less currency.
PayPal struck a deal with three Bitcoin payment-processing companies: BitPay, Coinbase and GoCoin.
Related: What is Bitcoin?
Bitcoin is an Internet-based system of money specifically designed to cut out middlemen, like banks and governments. So, it sounds odd to have Bitcoin processors. But they make it easier for everyday, non-tech-savvy businesses to accept bitcoins -- and immediately convert them to cash.
But why take bitcoins -- which have fluctuated in price from $1,100 and $400 in the last year -- instead of proven government money?
The system offers much lower transaction fees, which cost businesses a huge amount of money. The 2%-3% that shops pay in credit card swiping fees can obliterate their profits.
Consider this PayPal's first -- but not last -- foray into the world of Bitcoin. The company has made clear that its interest in Bitcoin runs more than skin deep.
In the last year, eBay's two top executives -- CEO John Donahoe and former president David Marcus -- have expressed interest in Bitcoin's technology.
Related: Here's why Bitcoin matters
PayPal's senior director of corporate strategy, Scott Ellison, told CNNMoney the company is most intrigued by the potential to harness the technology that lies at the heart of the Bitcoin system, a public ledger called a blockchain. It's a totally new way of thinking about transactions. It keeps records that are decentralized and keeps users semi-anonymous while making their transactions public.
"We think Bitcoin has tremendous opportunities going forward," Ellison said. "If you really want to understand how a technology works, you need to actually be in that technological space yourself."
Ellison said the move integrating Bitcoin into PayPal is a continuation of the company's view of itself as "the original payment disruptors."
Jose Pagliery is the author of Bitcoin - And the Future of Money (Triumph Books, Chicago).
First Published: September 26, 2014: 6:15 PM ET
NEW YORK (CNNMoney)
Investors with money at Pimco are understandably queasy after legendary investor Bill Gross shocked the financial world by jumping ship on Friday.
Some are already yanking their cash from the $2 trillion pile that Pimco manages. Others may even follow Gross to Janus Capital (JNS) where he's poised to manage a new bond fund.
But Morningstar is warning investors to avoid overreacting.
"Now is the time to reassess, but not panic. Yes, Bill Gross -- one of the world's greatest living investors -- is leaving. But there's a deep bench behind him," said Scott Burns, global director of manager research at Morningstar.
Related: Pimco under investigation by SEC
Not telegraphed: It's clear Gross's departure caught many people off guard -- even the experts.
Morningstar placed all 50 rated Pimco funds under review on Friday to give it time to weigh the news.
"Fund managers leave but it's rare it happens at such a flagship like this. It's always better for investors when it's deliberate, planned and telegraphed," said Burns.
He said it's possible tens of billions, if not hundreds of billions in Pimco funds may leave the firm with Gross.
Of course, that's nothing new for Pimco, which has been rocked by 16 straight months of client outflows at its flagship Total Return fund. The Total Return fund is up 3.6% this year, but that's trailing its benchmark, according to Morningstar data.
Pimco's outflow problems weren't helped by the surprise departure earlier this year of former CEO Mohamed El-Erian. His exit triggered a wave of negative stories suggesting Gross's erratic behavior was to blame.
It's possible Pimco could benefit from fewer distractions now that Gross is gone.
Related: Mohamed El-Erian says take some money out of stocks
A successor named: The firm announced Friday afternoon that deputy chief investment officer Dan Ivascyn would take over after his boss's departure.
Ivascyn, who has been at Pimco since 1998, was named fixed-income fund manager of the year in 2013 by Morningstar. His title will be "group chief investment officer."
"As part of our responsibilities to our clients, employees and parent, Pimco has been developing a succession plan for some time to ensure that the firm is well prepared to manage a seamless leadership transition in its Portfolio Management team," said Douglas Hodge, one of the firm's co-CEOs, in a statement.
When El-Erian left, Ivascyn was one of two deptuy CIOs appointed in his place. Andrew Balls, the other deputy CIO, will be one of five CIOs for different groups within the company.
It's also worth remembering that Gross secured his reputation as a legend in finance after decades of success. The 70-year-old who founded Pimco back in 1971 isn't exactly a rising star anymore.
"One way or another, this was coming to an end," said Burns.
Related: Bill Gross blames media for Pimco troubles
Jump to Janus? Gross's arrival at Janus is already generating serious excitement. The asset manager's shares surged 38% on Friday as Wall Street bets the blockbuster news will translate to greater profits.
It's too early to say whether mutual investors should move their money to Janus. The release revealing the Gross move was short on details and the relatively young fund he's going to manage isn't even reviewed by Morningstar.
Nor is it clear what strategy Gross plans to implement at Janus. Investors should also beware of the transaction fees that go along with moving money from one fund manager to another.
"He's not even in the saddle yet," said Burns.
CNNMoney's Melvin Backman contributed to this report.
First Published: September 26, 2014: 4:27 PM ET
| By Jonathan Noble | Friday, September 26th 2014, 18:12 GMT |
Nico Rosberg's retirement from the Singapore Grand Prix was caused by a freak substance contamination creating an electronics short circuit in his Mercedes Formula 1 car, AUTOSPORT has learned
You have viewed over 20 free stories this month. Why stop there? Click here to find out how to continue reading.
| By Gary Watkins | Friday, September 26th 2014, 16:08 GMT |
The Battersea Park round of the Formula E Championship set for next summer moved another step closer when the local council voted to proceed with the plans
You have viewed over 20 free stories this month. Why stop there? Click here to find out how to continue reading.
| By Mark Glendenning | Friday, September 26th 2014, 22:38 GMT |
Kevin Harvick continued his strong 2014 qualifying form at Dover, where he secured pole for this weekend's NASCAR Sprint Cup race
You have viewed over 20 free stories this month. Why stop there? Click here to find out how to continue reading.
| By Gary Watkins | Thursday, September 25th 2014, 15:37 GMT |
A limit on testing for next season will be the first of a wave of cost-cutting measures to be introduced for the LMP1 category in the World Endurance Championship
You have viewed over 20 free stories this month. Why stop there? Click here to find out how to continue reading.
| By Jonathan Noble | Thursday, September 25th 2014, 15:56 GMT |
A broken seal on a radiator that channelled hot air into his cockpit caused McLaren Formula 1 driver Kevin Magnussen's problems at the Singapore Grand Prix, AUTOSPORT has learned
You have viewed over 20 free stories this month. Why stop there? Click here to find out how to continue reading.
| Thursday, September 25th 2014, 16:16 GMT |
Marc Marquez has admitted his Misano crash happened because he was determined to seal the 2014 MotoGP title at home at Aragon, and he has promised to calm his approach
You have viewed over 20 free stories this month. Why stop there? Click here to find out how to continue reading.
| By Jonathan Noble | Wednesday, September 24th 2014, 15:20 GMT |
Red Bull has no doubt that the performance gap to Mercedes is closing, but doubts it will overcome Formula 1's dominant benchmark team before 2014 is over
You have viewed over 20 free stories this month. Why stop there? Click here to find out how to continue reading.
| By Mark Glendenning | Wednesday, September 24th 2014, 20:35 GMT |
Tony Stewart will not face criminal charges related to the on-track death of a sprint car rival in August.
You have viewed over 20 free stories this month. Why stop there? Click here to find out how to continue reading.
| By Charles Bradley | Wednesday, September 24th 2014, 21:00 GMT |
The Brabham team name will return to international motorsport competition next year in the World Endurance Championship.
You have viewed over 20 free stories this month. Why stop there? Click here to find out how to continue reading.
| By Ben Anderson | Tuesday, September 23rd 2014, 16:08 GMT |
Force India deputy team principal Bob Fernley hailed his Formula 1 team for the "outrageous" courage it showed helping Sergio Perez rescue a seventh-placed finish from the Singapore Grand Prix.
You have viewed over 20 free stories this month. Why stop there? Click here to find out how to continue reading.
| By Ben Anderson and Jonathan Noble | Tuesday, September 23rd 2014, 15:03 GMT |
Performance chief Rob Smedley reckons the way the Williams Formula 1 team operated in the Singapore Grand Prix is the best he's seen since he joined the squad.
You have viewed over 20 free stories this month. Why stop there? Click here to find out how to continue reading.
| Tuesday, September 23rd 2014, 18:14 GMT |
Factory rider Andrea Dovizioso and Pramac's Andrea Iannone will give Ducati's 'evolution' MotoGP bike its debut in this weekend's Aragon Grand Prix
You have viewed over 20 free stories this month. Why stop there? Click here to find out how to continue reading.
| By Ben Anderson | Monday, September 22nd 2014, 12:53 GMT |
Kimi Raikkonen says the Ferrari Formula 1 team is being compromised by its car's weakness in the slipstream of rivals
You have viewed over 20 free stories this month. Why stop there? Click here to find out how to continue reading.
| By Ben Anderson | Monday, September 22nd 2014, 11:37 GMT |
Felipe Massa says he drove "like a grandmother" in order to keep his Williams Formula 1 car's tyres alive long enough to finish fifth in the Singapore Grand Prix
You have viewed over 20 free stories this month. Why stop there? Click here to find out how to continue reading.
| By Jonathan Noble | Monday, September 22nd 2014, 14:55 GMT |
Lewis Hamilton insists he takes no relief from snatching the Formula 1 world championship lead from Nico Rosberg with his victory in the Singapore Grand Prix.
You have viewed over 20 free stories this month. Why stop there? Click here to find out how to continue reading.
| By Jonathan Noble | Sunday, September 21st 2014, 18:43 GMT |
Valtteri Bottas thinks his Williams Formula 1 car's steering problem was to blame for his tyres tipping over the edge on the final lap of the Singapore Grand Prix
You have viewed over 20 free stories this month. Why stop there? Click here to find out how to continue reading.
| By Jonathan Noble | Sunday, September 21st 2014, 18:09 GMT |
Daniel Ricciardo's hopes of overhauling Red Bull Formula 1 team-mate Sebastian Vettel in the Singapore Grand Prix were hindered by a battery problem on his car
You have viewed over 20 free stories this month. Why stop there? Click here to find out how to continue reading.
| Sunday, September 21st 2014, 21:45 GMT |
Joey Logano came out on top in an incident-packed NASCAR Sprint Cup Series race at New Hampshire, after a green-white-chequered finish and a season-high 14 caution periods
You have viewed over 20 free stories this month. Why stop there? Click here to find out how to continue reading.
| By Jonathan Noble | Saturday, September 20th 2014, 18:09 GMT |
Felipe Massa says the Williams Formula 1 team's return to form on Saturday at the Singapore Grand Prix was down to it getting on top of tyre temperature problems
You have viewed over 20 free stories this month. Why stop there? Click here to find out how to continue reading.
| By Gary Watkins | Saturday, September 20th 2014, 21:08 GMT |
Ganassi Riley drivers Scott Pruett and Memo Rojas hung on to claim victory in the Austin round of the United SportsCar Championship
You have viewed over 20 free stories this month. Why stop there? Click here to find out how to continue reading.
| By Gary Watkins | Sunday, September 21st 2014, 00:16 GMT |
The Austin round of the World Endurance Championship has been red-flagged after a heavy rain storm sent a series of cars off the track
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NEW YORK (CNNMoney)
Will it buy AOL with the money?
There have been rumors about a Yahoo (YHOO, Tech30) and AOL (AOL, Tech30) merger for years -- pretty much since CNNMoney owner Time Warner (TWC) spun off AOL as a separate company in 2009.
But the chatter has increased lately because Yahoo is expected to generate more than $5 billion (after taxes) from the sale of part of its investment in Alibaba (BABA), which went public Friday in what turned out to be the biggest IPO in history.
Shares of Alibaba surged about 40% from their offering price.
What will Alibaba's closing price be? Vote!
Shares of AOL popped more than 3% late Thursday after the derivatives team at brokerage firm at BGC Partners wrote in a report that "post the Alibaba IPO, there is a possibility that Yahoo may seek to deploy its cash by pursuing AOL as an acquisition target." The stock gave back most of those gains Friday. Yahoo's stock was lower too.
The Yahoo-AOL merger rumors never really went away. Will a deal finally happen? Yahoo could clearly afford AOL, which now has a market value of about $3.4 billion. So Yahoo could theoretically pay a 50% premium for AOL if it wanted to use all of its newfound Alibaba money. (That seems unlikely though, given that Yahoo CEO Marissa Mayer has promised investors she'll use some of the cash to buy back some Yahoo stock.)
Still, the question is why should Yahoo buy AOL in the first place?
Related: Put up or shut up time for Yahoo and Marissa Mayer
Colin Gillis, who covers Yahoo's stock for BCG Partners, says that a deal would make sense. He thinks Yahoo would benefit from AOL's expansion in online video.
It is true that the two companies could mesh well. Yahoo has built up a solid news outfit (especially its finance and sports units) and AOL owns The Huffington Post. A combined Yahoo/AOL would have some quality content ... and we all know that content is king.
It's also possible that Mayer could get along well with AOL CEO Tim Armstrong. Both of them used to work for Google (GOOGL, Tech30).
But it's not clear that a combined Yahoo and AOL would be able to do a better job of stealing online ad dollars away from Google, Facebook (FB, Tech30), Twitter (TWTR, Tech30) and others.
Growth at Yahoo has remained sluggish since Mayer took over in 2012. A flurry of buzzy acquisitions have helped restore a cool factor to the company. But they've done little to boost revenue and profits.
Many experts argue that the sole reason Yahoo's stock has done as well as it has recently (up 37% in the past 12 months) is due to excitement about its Alibaba stake.
And despite efforts by AOL to shed its old subscription-based business model, that division is not dead yet. It still accounts for more than 25% of AOL's total sales and is dragging down growth levels for the whole company. Would Yahoo really want to own that?
Eric Jackson, managing partner of Ironfire Capital, a hedge fund that owns shares of Yahoo, said no.
He thinks the only way a Yahoo-AOL merger could work would be if there were mass layoffs, especially on the sales side. And Jackson doesn't believe Mayer wants to do that since she's been mainly focusing on buying startups and bringing on new talent.
Related: Alibaba 101: Inside the record IPO
Jackson said that if Yahoo is going to use some of its Alibaba couch cushion cash to make a deal, it would be more likely to buy an online ad company. He said that either Rocket Fuel (FUEL) or The Rubicon Project (RUBI), two recently public ad tech firms that have fallen sharply from their highs, could be bargains.
A splashier purchase could be AppNexus, a privately held online ad tech company that just raised a new round of financing which values it at $1.2 billion.
But Jackson said the best move may be to sit tight with the cash -- and possibly try to sell itself instead of looking for other things to acquire. He said he'd love it if Japan's SoftBank (SFTBY), which also owns a huge chunk of Alibaba, made an offer for Yahoo.
"I hope Yahoo doesn't buy anything. I'm a little fearful of what Mayer will do with that cash," he said.
First Published: September 19, 2014: 12:06 PM ET
Jack Ma explains why Forrest Gump is his hero. NEW YORK (CNNMoney)
Just like his hero, Forrest Gump.
"Well, I got my story, my dream from America," Ma told CNBC's "Squawk on the Street" Friday morning. "A full 15 years ago when I came to America, when I visited Silicon Valley. I saw in the evening the road was full of cars, all the buildings with lights. That's the passion... The hero I had is Forrest Gump."
Related: Alibaba surges in huge IPO debut
"Box of chocolates?!" Jim Cramer asked referring to the famous line from the film.
Yes, the same Forrest Gump played by Tom Hanks in the 1994 Academy Award winning classic.
"You know he is a fictional character, though? You did know?" CNBC's David Faber responded with a bit of a laugh.
Yet, Ma's hero worship of Greenbow Alabama's favorite son isn't that crazy considering Ma's rags-to-riches life story is very much like Gump's.
Ma flunked tests in school, was considered crazy by many in China for thinking the Internet could be profitable (earning him the nickname "Crazy Jack Ma"), and was even rejected for a job at KFC.
On Friday alone, he made at least $867 million as his company went public. Plus he still owns more shares that put him in the billionaire category.
"I really like that guy. I've been watching that movie for about 10 times. Every time I'm frustrated, I watch the movie," Mas said about the film. "I watched the movie again telling me that no matter whatever changed, you are you."
First Published: September 19, 2014: 2:15 PM ET
Susye Greenwood, a customer at New York's Fresco, tips $1 for her server via a swipe of her card in the DipJar. NEW YORK (CNNMoney)
The electronic DipJar, a device that accepts credit and debit cards for $1 tips, is here to help the cashless.
DipJar, a startup based in New York and Boston, has been testing the devices at 20 locations in New York over the last two years. It is now ready to expand into as many as 200 locations after a cash infusion from investors of $420,000.
"We intended to do a short trial, but once they were on the countertops the stores didn't want to give them back," said DipJar co-founder and CEO Ryder Kessler.
At Fresco Gelateria, a New York coffee shop, it means an extra $15 to $20 a week for barista Samantha Kulch.
So far, the cash tip jar still brings in much more -- $15 to $20 per day -- for her.
"People definitely use the cash jar more," she said. "People marvel at the DipJar more than they use it."
Related: Living on $2.13 an hour, plus tips
For Ilias Iliopoulos, co-owner of Fresco, it's a time saver. The company does the task of divvying up tips among the workers, saving him about an hour's worth of work every week.
Iliopoulos said he's had the DipJar for a year and it brings in $150 to $200 per month. He said that DipJar skims 6% off the tips.
Related: Who are the best tippers?
Iliopoulos said there's one glitch the company should work out: the DipJar doesn't make a sound when customers dip their card, so they can't tell whether the transactions went through.
Susye Greenwood, a photographer, discovered this when she used the DipJar during a recent visit to Fresco.
"I wasn't clear on whether it worked," she said, wondering whether she should dip her card a second time.
But Kessler insisted that the DipJar does, in fact, make a noise.
"It's just hard to hear amongst the ambient sounds of coffee grinding, music, air conditioning and chatter," she said. "That's a big flaw that we're fixing: amping up the change-clinking configuration in the next unit."
The new models, will also feature lights that will go off to confirm that a transaction went through.
First Published: September 19, 2014: 3:04 PM ET
Who's hungry? Insider trader ate his Post-it notes after passing stock tips. NEW YORK (CNNMoney)
Frank Tamayo, a 41-year-old Brooklyn man, surrendered Friday morning to the Federal Bureau of Investigation and pleaded guilty in Federal Court in New Jersey.
Prosecutors say Tamayo received information about upcoming corporate deals from Steven Metro, the head clerk at a corporate law firm in New York.
Tamayo then handed that information over to Vladimir Eydelman, a stock broker at Oppenheimer (OPY) and Morgan Stanley (MS). Eydelman in turn used it to trade stocks for Tamayo and other customers.
Metro and Eydelman were charged separately in March.
The Securities and Exchange Commission has filed civil charges against all three men.
In an awkward attempt to be stealthy, Tamayo would write a stock ticker on a piece of paper, usually a Post-it note or a napkin, which he would show to Eydelman, indicating that the stock was a buy.
Tamayo would then put the paper in his mouth "and chewed it until it was destroyed," according to prosecutors.
Related: Former SAC manager gets 9 years in prison
The information exchange between Tamayo, a mortgage broker, and Eydelman would take place at locations near his office, including a spot near the clock in New York City's Grand Central Station and a midtown coffee shop.
"Tamayo was the firewall between Metro and Eydelman," said Robert Cohen, an official with the Securities and Exchange Commission. "Metro had the information, Eydelman did the trading, and Tamayo kept them apart."
The scheme started in 2009, when Metro met Tamayo at a bar in New York City and started talking stocks over drinks. According to the SEC, Metro told Tamayo about a $500 million investment Liberty Media planned to make in SiriusXM, which prompted Tamayo to call Eydelman.
Over the next five years, Metro divulged information on at least 13 different deals that his firm, Simpson Thacher & Bartlett LLP, was working on, including mergers and acquisitions.
Related: Five famous insider trading cases
Metro found potential inside tips by searching his firm's data base for keywords such as "merger agreement," "bid letter," "engagement letter," and "due diligence."
Eydelman also took steps to cover his tracks. The stock broker would send emails to Tamayo outlining his thoughts on why he recommended buying a particular stock. By sending emails that seemed part of his job and innocuous, prosecutors said, he hoped to leave a paper trail that created the appearance that the trade was based on legitimate research and not inside information.
Tamayo's attorney did not immediately respond to a request for comment.
First Published: September 19, 2014: 4:06 PM ET
NEW YORK (CNNMoney)
"Their economies are basically being devastated," said Daniel Epstein, a spokesperson for the World Health Organization. "Economic activity has halted in many areas there. The harvest isn't going on. People can't fly in and fly out."
WHO workers even had difficulty flying into the Ebola-stricken nations of Liberia, Sierra Leone and Guinea, Epstein said.
Related: Ebola patients are buying survivors' blood from the black market
Over 2,600 people have died, according to the latest WHO count. If Ebola is not contained this year, the cost could increase by eight times its current estimate, according to a report published Wednesday by the World Bank Group. Ebola's toll in Liberia alone could affect almost 5% of the country's GDP this year, the World Bank said.
"Our findings make clear that the sooner we get an adequate containment response and decrease the level of fear and uncertainty, the faster we can blunt Ebola's economic impact," said World Bank president Jim Yong Kim in a statement.
Related: History of Ebola outbreaks
In need of aid: The United Nations said this week that $1 billion in aid is needed to contain the Ebola outbreak. But a UN database tally of donations shows that many wealthy Western nations that verbally pledged support have donated paltry sums to fight the disease.
Total donations, including non-binding pledges, to fight Ebola are about $388 million, well under half of the United Nation's estimate, according to data from Financial Tracking Service, a database that tracks humanitarian aid and is managed by the United Nations. The Obama administration announced this week that it hopes to send an additional $500 million in humanitarian aid to the West African nations this fiscal year.
Even with the U.S. government's significant aid proposal, the total number would still fall short of the United Nations' estimate of a billion.
UN Secretary-General Ban Ki-moon went as far as saying "our best estimate is that we need a 20-fold increase in assistance" at a meeting this week.
Related: Despite Ebola, CEOs bullish on parts of Africa
Some private foundations have also stepped in. The Bill and Melinda Gates Foundation has donated over $8 million so far to various organizations to fight Ebola. That is more than the combined donations of Canada, Germany and Spain, according to FTS data.
Overall, the Gates Foundation has pledged $38 million, which eclipses many more countries.
Epstein noted that countries such as Canada contribute to the aid effort in non-monetary ways by sending aid workers and conducting medical research.
"We're also at the stage where people are seeing what the landscape is and figuring out, what's the best way to donate funds?" Epstein said. "In a humanitarian crisis, there are often delays between what people realize what they have to do and what they actually do."
First Published: September 20, 2014: 8:31 AM ET
NEW YORK (CNNMoney)
It's not exactly a retirement for the 70-year old Oracle (ORCL, Tech30) founder. He stepped down as Oracle's CEO but became the company's chairman and chief technology officer.
But in his new, reduced role at the company, Ellison might be given an opportunity to enjoy his riches.
Ellison is worth $51 billion, according to Forbes. He is a licensed pilot and owns several airplanes. He has an impressive car collection too.
When (if) Ellison eventually leaves Oracle, he'll have his choice of where to retire to.
In 2012, he bought about 98% of Lana'I, Hawaii's sixth largest island. The 140-square-mile land mass includes two luxury resorts, two golf courses and two club houses. He bought an airline that flies to Lanai'l, and he turned the island into a kind of sustainable tech laboratory.
His Woodside, Calif., house is modeled after a Japanese emperor's, and he has a massive collection of Japanese and samurai art. He owns dozens of other homes in California and a small village in Kyoto.
Related: Larry Ellison stepping down as Oracle CEO
But Ellison's biggest and best-known hobby is yachting. In 2010, he sold Rising Sun, his mammoth 453-foot yacht, to Hollywood mogul David Geffen. It's the 10th-largest yacht in the world, according to Boat International.
Ellison now owns the 288-foot Musashi, just the 50th-largest yacht in the world. The yacht, named after a samurai warrior, includes a basketball court (and a boat that follows his yacht to pick up wayward balls that have fallen into the ocean).
He also runs America's Cup's Oracle Team USA, which won the boating tournament last year. But the victory was controversial -- Ellison's team was fined $250,000 by an international jury for making illegal modifications to its 2012 yacht.
Ellison has been married four times, and he currently dates Nikita Kahn, a Ukranian actress.
It's fair to say Ellison enjoys life. But he did not amass such wealth by chance.
Related: Oracle shareholders say 'no' to Larry Ellison's pay
He is known as a technological genius, helping to create the first relational database. The technology was the first to match one group of information (say, a list of names) with another (Social Security numbers). In 1977, Ellison and his partners began selling the software, which they called the Oracle Database. Five years later, they renamed their company "Oracle" after their software.
Since then, Oracle has become one of the biggest providers of corporate software in the world. At Oracle's helm, Ellison has been known for his brash, outspoken persona and his cutthroat business strategy.
Ellison isn't shy about publicly shaming rivals. He rubbed salt in Hewlett-Packard's (HPQ, Tech30) wound by hiring its unceremoniously ousted CEO Mark Hurd (now Oracle's co-CEO). In a very public spat, Oracle sued Google (GOOGL, Tech30) for patent infringement over its Android software. And he famously said Apple's (AAPL, Tech30) best days are behind it without Steve Jobs, with whom Ellison was very close.
Even though most consumers don't know what Oracle does, Ellison's glamorous life and demeanor have made him into a celebrity.
First Published: September 19, 2014: 2:07 PM ET
Sponsor Procter & Gamble won't participate in the NFL's breast cancer awareness campaign this season following the domestic violence controversy. NEW YORK (CNNMoney)
Procter & Gamble, one of the NFL's major sponsors, pulled out of the league's breast cancer awareness campaign Friday.
The company's Crest toothpaste had been slated to sponsor the program. Procter & Gamble said it will still make the $100,000 donation to the American Cancer Society as planned.
Procter & Gamble remains an NFL sponsor, but it did issue a statement that said, "Domestic violence is completely unacceptable and we have strongly urged the NFL to take swift and decisive action to address this issue, and we will determine future actions as needed."
Many critics are calling for NFL Commissioner Roger Goodell to resign for failing to respond to the crisis appropriately.
This is the sixth year for the league's breast cancer awareness program. Players wear pink ribbons on their uniforms, and the breast cancer awareness symbol appears everywhere from the field on the footballs. The NFL also sells pink t-shirts, jerseys and athletic shoes to raise money. The program has brought in $6.7 million to the American Cancer Society since it started in 2009, said Tara Peters, spokeswoman for the cancer group.
The campaign is particularly important to the league this year as it tries to deflect the bad publicity it's gotten after several NFL players were accused or convicted of domestic violence. Women make up about 45% of the NFL's fan base.
Related: NFL - Richer than ever despite controversy
Ex-Ravens running back Ray Rice was suspended from the league after a video showed him punching his then-fiancee.
Several other players, including the Vikings' star running back Adrian Peterson, have been benched due to allegations of domestic violence or child abuse. But their still being paid huge sums for the games they're missing.
P&G (PG), the maker of products such as Tide detergent, Cover Girl makeup and and Gillette razors, pays millions a year to sponsor the NFL. And it spends millions more on advertising.
The league brought in an estimated $1.07 billion in sponsorship income NFL last season, according to research firm IEG.
Sponsor Anheuser-Busch (BUD) is on record saying it is not satisfied with the league's response to the domestic violence crisis.
But some other sponsors, including Verizon (VZ, Tech30) and PepsiCo (PEP), say that while they are concerned with the actions of the players involved, they are satisfied with the league's response.
The NFL did not respond to a request for comment on P&G's decision.
First Published: September 19, 2014: 2:45 PM ET
Alibaba co-founder Jack Ma indicated Friday that he's open to a joint venture with Amazon. NEW YORK (CNNMoney)
Maybe.
It's a big maybe, but in an interview with Bloomberg News on the floor of the New York Stock Exchange Friday, Alibaba co-founder and CEO Jack Ma said that he'd be open to a joint venture with the American e-commerce giant.
"I would be interested in talking because as always, anything, anybody that involves helping small business we will feel excited," Ma said.
Related: Alibaba IPO means a big payday for Jack Ma
That line wasn't the clearest signal of open arms, but the prospect of an Alibaba-Amazon partnership got investors immediately giddy. After opening slightly down, Amazon shares shot up 2% Friday. While the market overall pulled back, Amazon is still up about that much in afternoon trading.
Of course, next to the actual Alibaba IPO Friday, the biggest ever on a U.S. exchange, the Amazon jump got little attention.
"While Alibaba eats all media channels/headlines, $AMZN has ticked up about 2 percent," said CrosbyVenture on StockTwits.
It's tough to say whether a deal between Alibaba and Amazon makes sense. Ma has made it clear that he intends to expand outside of China, but whether that means he would do so by buying up established companies or by introducing an actual e-commerce platform for American consumers is anyone's guess.
After all, most Americans outside Wall Street haven't even heard of Alibaba.
And despite the comparisons, Amazon and Alibaba are actually pretty different.
Sure, Alibaba and Amazon both do business on the Internet. They both enable consumers to buy huge volumes of goods without stepping foot in a store. And both have a stranglehold on their home markets.
But that's pretty much where the similarities end. Unlike Amazon, Alibaba does not own most of the items sold on its platforms, it does not maintain massive distribution centers, and it has only a fraction of the 132,000 employees on Amazon's books.
Related: Amazon releases new Fire tablets and e-reader
What will happen when Alibaba and Amazon find themselves fighting for the same consumers? Here they are similar: expect both founders to come out swinging.
"Lying behind the massive allure of the capital market, there is unparalleled ruthlessness and pressure," Ma wrote in a letter to employees earlier this year. "In this market, only a small number of outstanding enterprises can maintain a gallop."
CNNMoney reached out to Amazon for comment but has yet to hear back on their view of Ma's statement.
-- CNN's Charles Riley Contributed to this report
First Published: September 19, 2014: 1:58 PM ET
Charlene Ingram, a single mother of four, has $125,000 in student loan debt. NEW YORK (CNNMoney)
Now thousands of people across the country are begging them to forgive their loans, too.
Charlene Ingram is one of them.
A single mother of four from St. Louis, Ingram is 41 and has $125,000 in student loan debt.
After struggling for years to find a job that paid more than minimum wage, she enrolled in an undergraduate program at age 37 -- figuring a bachelor's degree would be her only shot at earning enough to support her family. While she was in school, she and her sons delivered phone books in order to put food on the table.
Upon graduating in 2011, she found a job as a full-time medical assistant. But the job only pays $14 an hour. It's hardly enough to keep up with the basics -- $800 per month in rent, food for her and the kids, utilities, car payments, and medical insurance (which isn't provided through her job) -- let alone the nearly $1,700 a month she owes on her student loans. She said she applied for food stamps but earns $2 an hour too much.
Related: Occupy abolishes $4 million in other peoples' student loan debt
Every time she applies for a higher-paying job, Ingram says she gets turned down because she doesn't have a Master's degree. So she enrolled in a Master's program in health care management in 2012, juggling classes at night and on the weekends. But now she has so much outstanding debt that she hasn't been able to qualify for additional loans and complete the program.
"How do they expect us to survive when you spend all that money for school and still can't get the job that you went to school for and took thousands of dollars in loans?" she said.
Ingram was one of many readers who wrote to CNNMoney seeking Occupy's help with paying back their loans. "Trying to [pay for a] home, food and clothing for us is very hard as a single parent," she wrote. "Please help."
Another reader, Martha Sopher, hasn't been able to work since becoming severely disabled from a car accident three years ago. When she turned 62 last year she immediately applied for Social Security. But because she had defaulted on the more than $200,000 in student loan debt from a graduate program she attended 10 years ago, 15% of her Social Security payments are being garnished each month.
Related: For-profit Corinthian College urged to forgive $500 million in loans
She is still in the process of applying for disability, and her family is helping her pay her living expenses in the meantime.
"I have to skip meals to get by. I skip medications. I don't live, I exist," she wrote. "I made all these wonderful deliberate decisions, worked two jobs more than full-time while I went to college full-time and carried an 'A' average -- but now the dream I worked so hard for is gone forever. I can't take care of my needs and as I age, it will only get worse."
Upon hearing that Occupy Wall Street has been forgiving peoples' debt, she wrote: "I have hope for the first time in a very long time."
But unfortunately, Occupy Wall Street's Strike Debt division -- which is in charge of this initiative -- is unable to abolish a specific person's debt.
Strike Debt says it has received thousands of similar messages from debtors with heartbreaking situations. But the debt purchasing process is random, so while the group can tell a debt collector or broker that it wants to purchase debts from a certain college, it can't find out whose debt it is buying prior to the purchase.
Related: Senior citizens owe $18 billion in student loans
Instead, the group is encouraging people to sign up for its new Debt Collective, which aims to unite medical and student loan debtors so that they can renegotiate debts together and make change on a larger scale.
For debtors in need of more immediate help, nonprofits like the National Consumer Law Center offer resources on their websites about how to attain debt relief or set up payment plans.
And while it's much easier to get relief for federal loans than it is for private loans, the first step in either case is to let the lender know the details of your situation.
"Struggling borrowers need to let their loan holder or servicer know they're having difficulty, rather than just struggle in silence and give up on payment altogether," said Allesandra Lanza, a director at nonprofit American Student Assistance.
First Published: September 19, 2014: 3:15 PM ET
NEW YORK (CNNMoney)
A weekly collection of design, data and interactive links.
Video
Butter Fingers | Items you might not want to let slip through your fingers
The Sound of COS | Experience the sound of COS in a short film by Lernert & Sander
Music and Design
Generative Videos | Reza Ali's six music videos for OK Go
Party Mode | An audio visualizer powered by d3.js and the web audio API
Thru You Too | Collaborative YouTube music video
Design/Data viz
A Disappearing Planet | Interactive look at extinctions around the world
The Bezier Game | A game to help you master the pen tool
Hue Grant | The internet at its finest
See last week's links
Have a nice weekend!
@dubly and @talyellin
First Published: September 19, 2014: 4:15 PM ET
| By Gary Watkins | Friday, September 19th 2014, 23:55 GMT |
Alex Brundle claimed pole position on the debut of OAK Racing's Ligier LMP2 in the United SportsCar Championship at Austin
You have viewed over 20 free stories this month. Why stop there? Click here to find out how to continue reading.
| By Mark Glendenning | Friday, September 19th 2014, 22:09 GMT |
Brad Keselowski continued his recent hot streak by taking pole position for Sunday's NASCAR Sprint Cup race at New Hampshire Motor Speedway
You have viewed over 20 free stories this month. Why stop there? Click here to find out how to continue reading.
| By Gary Watkins | Saturday, September 20th 2014, 02:09 GMT |
Toyota drivers Anthony Davidson and Sebastien Buemi claimed their first pole position of the 2014 World Endurance Championship at Austin in a dramatic qualifying session
You have viewed over 20 free stories this month. Why stop there? Click here to find out how to continue reading.
| By Gary Watkins | Thursday, September 18th 2014, 16:29 GMT |
A preliminary vote on the Battersea Park Formula E round planned for London in June 2015 will be taken by the local council next week
You have viewed over 20 free stories this month. Why stop there? Click here to find out how to continue reading.
| By Jonathan Noble and Ben Anderson | Thursday, September 18th 2014, 17:03 GMT |
As Formula 1 teams wait to learn if there will be a temporary easing of the radio clampdown, most drivers declared themselves eager to get on with the new rules.
You have viewed over 20 free stories this month. Why stop there? Click here to find out how to continue reading.
| By Mark Glendenning | Thursday, September 18th 2014, 18:30 GMT |
IndyCar's long-expected return to Brazil has been confirmed, with the series set to race at Brasilia's Autodromo Internacional Nelson Piquet on March 8 next year
You have viewed over 20 free stories this month. Why stop there? Click here to find out how to continue reading.
| By Mark Glendenning | Wednesday, September 17th 2014, 16:23 GMT |
The newly-merged CFH Racing team has confirmed that it will partner with Chevrolet in 2015, as predicted by AUTOSPORT last week
You have viewed over 20 free stories this month. Why stop there? Click here to find out how to continue reading.
| By David Evans | Wednesday, September 17th 2014, 15:59 GMT |
World Rally Championship leader Sebastien Ogier looks set to remain at Volkswagen next season, with a long-term deal said to be in the pipeline
You have viewed over 20 free stories this month. Why stop there? Click here to find out how to continue reading.
| By Jonathan Noble | Wednesday, September 17th 2014, 16:27 GMT |
McLaren chief Ron Dennis says it may not be until the end of next year for his team to be able to judge whether its restructuring has been good enough
You have viewed over 20 free stories this month. Why stop there? Click here to find out how to continue reading.
| By Mark Glendenning | Tuesday, September 16th 2014, 21:20 GMT |
Mikhail Aleshin has been released from hospital to continue his recovery from injuries sustained in a crash during practice for the IndyCar season finale at Fontana two weeks ago
You have viewed over 20 free stories this month. Why stop there? Click here to find out how to continue reading.
| By Grigory Golyshev | Tuesday, September 16th 2014, 15:15 GMT |
AUTOSPORT's long-time Russian correspondent Grigory Golyshev made the long trip south for the maiden race meeting at the country's grand prix venue. This is what he found...
You have viewed over 20 free stories this month. Why stop there? Click here to find out how to continue reading.
| By Mark Glendenning | Tuesday, September 16th 2014, 16:08 GMT |
Marcos Ambrose says that a belief that his NASCAR career had plateaued was a driving force behind his decision to quit stock car racing at the end of this season.
You have viewed over 20 free stories this month. Why stop there? Click here to find out how to continue reading.
| By Gary Watkins | Monday, September 15th 2014, 15:43 GMT |
Former Audi factory driver Alexandre Premat will return to the ART Grand Prix McLaren team for this weekend's Nurburgring Blancpain Endurance Series finale.
You have viewed over 20 free stories this month. Why stop there? Click here to find out how to continue reading.
| Monday, September 15th 2014, 15:40 GMT |
Mike di Meglio underwent successful surgery on Monday following the injury he suffered during Sunday's MotoGP race at Misano.
You have viewed over 20 free stories this month. Why stop there? Click here to find out how to continue reading.
| By Gary Watkins | Monday, September 15th 2014, 16:03 GMT |
Formula E could make a bid for world championship status in the future.
You have viewed over 20 free stories this month. Why stop there? Click here to find out how to continue reading.
| Sunday, September 14th 2014, 19:06 GMT |
MotoGP has announced a software development freeze effective from the end of June 2015 in preparation for the switch to standard electronics in the '16 rules
You have viewed over 20 free stories this month. Why stop there? Click here to find out how to continue reading.
| Sunday, September 14th 2014, 19:16 GMT |
Scott Redding will rejoin Marc VDS in MotoGP for 2015 as the dominant Moto2 team moves up to the top class running a factory Honda
You have viewed over 20 free stories this month. Why stop there? Click here to find out how to continue reading.
| Sunday, September 14th 2014, 21:22 GMT |
Brad Keselowski opened the 2014 NASCAR Sprint Cup Chase by fighting back from a pit delay for victory at Chicagoland
You have viewed over 20 free stories this month. Why stop there? Click here to find out how to continue reading.
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| Saturday, September 13th 2014, 19:12 GMT |
Valentino Rossi will retain Romano Fenati for his VR46 Moto3 team into 2015
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| By Mark Glendenning | Saturday, September 13th 2014, 17:29 GMT |
Marcos Ambrose will split with Richard Petty Motorsports' NASCAR Sprint Cup team at the end of the season and return to his native Australia
You have viewed over 20 free stories this month. Why stop there? Click here to find out how to continue reading.
| Sunday, September 14th 2014, 01:40 GMT |
Sebastien Ogier is holding Volkswagen team-mate Jari-Matti Latvala at bay going into the final three stages of Rally Australia
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NEW YORK (CNNMoney)
Television is an area "we continue to have great interest in," he told Rose, mimicking what he told another interviewer, Brian Williams, in 2012: that it's "an area of intense interest."
Apple is widely thought to be working on a re-imagining of television — the distribution of TV shows, the navigation, etcetera -- that could rival the way it remade the cell phone industry with its introduction of the iPhone.
Maybe that's why Cook appeared reluctant to comment when Rose brought up the television marketplace. But he did express some dissatisfaction with the status quo, as he has before. "The interface is terrible! I mean, it's awful," Cook said. "And you watch things when they come on unless you remember to record them."
"So why don't you fix that?" Rose asked.
"Well — yeah — you know, I don't want to get into what we're doing in the future," he said. Then he explained the progress Apple has had with the Apple TV box.
The first part of Rose's interview will be shown on PBS on Friday night. It comes at the end of a busy week for the usually press-shy Cook.
Repeating what he said at a press unveiling of the Apple Watch and the iPhone 6 on Tuesday, Cook called the new phones "the biggest advance in iPhone history."
He also spoke in the interview about his time with the company's founder Steve Jobs.
Here are some highlights:
The second half of Cook's interview with Rose will air Monday Night on PBS.
For ABC, a coveted exclusive with Apple
IPhone 6 pre-orders crash Apple Store
First Published: September 12, 2014: 6:29 PM ET
NEW YORK (CNNMoney)
That's because the company that owns Olive Garden, Darden Restaurants (DRI), has some never ending problems with sluggish sales and earnings. One prominent Darden investor is so fed up it's demanding changes to make the Italian-themed food better.
Starboard Value Partners, a firm that owns an 8.8% stake in Darden, released a 294-panel slide show late Thursday on its Shareholders for Darden web site with numerous suggestions for improvement at Olive Garden.
Many of the demands were your usual garden variety tough talk from activists: fire the CEO, bring in a new board, sell non-core assets. But Starboard also had some culinary advice. It made you wonder if Mario Batali or Giada De Laurentiis helped write the report.
Starboard pointed out that it thinks too much food is being wasted. The firm noted that too many breadsticks are delivered to diners at once and they quickly get cold and stale.
The investment firm also said that "the pasta is overcooked with sauce simply ladled on top." (I agree. Any good cook knows that you make the pasta al dente and finish it in the sauce!)
Finally, Starboard complained about how Olive Garden was starting to put too many things on its menu that are "astonishingly far from authentic Italian culture" such as burgers and tapas.
The firm said that Darden would be better off following the strategy of competitor Brinker International (EAT), which has found success over the past few years by focusing all its efforts on improving its two core brands: Chili's and Olive Garden competitor Maggiano's.
Darden claims it is in the midst of a "brand renaissance," but its latest results aren't helping that case. Darden said Friday that Olive Garden's same-store sales, a key measure of financial health for restaurants, fell in its most recent quarter, and they aren't expecting much improvement this quarter.
Related: New Red Lobster owner bets on more upscale food
What does Darden think of this? President and COO Gene Lee said in a statement Friday that the company will "remain open minded toward all ideas that support long-term value creation for our shareholders and improve the dining experience for our guests." Lee added that it "will carefully review" the Starboard plan but also said the company was already implementing some of the strategies Starboard proposed.
Lee added that the company is testing the use of tablets in some of its restaurants to improve efficiency. It's a move that other casual dining chains, most notably Buffalo Wild Wings (BWLD), is experimenting with as well.
Darden did try and please investors by saying that it would use some of the proceeds from its sale of Red Lobster chain earlier this year to buy back more stock in fiscal 2015. Darden has already paid down some debt.
Still, investors were not bowled (sorry) over by Darden's latest results. Shares were slightly lower Friday after the company, which also owns LongHorn Steakhouse and Bahama Breeze, reported profits that topped forecasts and issued earnings guidance that was better than expected as well. And the stock is down 12% this year.
Starboard clearly isn't the only investor that thinks that quality would be better than quantity at Olive Garden.
First Published: September 12, 2014: 11:47 AM ET
Actor Josh Gad (voice of "Frozen" snowman Olaf) celebrates the kick-off to summer at the Disneyland Resort. NEW YORK (CNNMoney)
Walt Disney Resorts announced Friday that construction has begun on a new attraction based on the animated hit "Frozen."
It will take the place of Maelstrom, a Norwegian boat ride at Walt Disney World's Epcot center in Florida.
"From the moment we screened the film several months before its release, we were inspired by the possibility of bringing this great story to life for our guests," Tom Staggs, chairman of Walt Disney Parks and Resorts chairman, wrote on the company's blog.
Maelstrom will be missed by many (present company included), but the move makes a whole lot of sense for Disney.
Since its release last November, "Frozen" has been one of the biggest financial, critical and cultural successes in years for the Mouse House.
And Disney has done whatever it can to capitalize on that. There's "Frozen" merchandise, of course, and a Broadway show. Next spring will bring a short film, "Frozen Fever," involving the film's popular princesses.
A theme park ride was the next logical move.
"Frozen" is the highest grossing animated film of all time — giving Disney 1.2 billion reasons to build an attraction based on the film.
Disney gave no details on what the actual attraction would entail. But the pavilion will include an area where guests will be able to meet characters from the film.
In May, Disney CEO Bob Iger said "Frozen" was one of Disney's top five franchises ever. "So you can expect us to take full advantage of that over the next at least five years," he said.
A 'Frozen' karaoke app?!
It'll be a very 'Frozen' Halloween
First Published: September 12, 2014: 4:55 PM ET
NEW YORK (CNNMoney)
While not a commonly offered perk, many of the Fortune 100 Best Companies to Work For do offer extended breaks to their top performers. Those who take advantage say the experience gives them new motivation, more creativity and a healthier lifestyle - complete with a smaller waistline. That was also the takeaway from folks who created their own sabbaticals between jobs.
Here are just a few lessons CNNMoney readers learned from their time off:
1. You come back with a new outlook: Monty Liss of Winters, Calif., works for Genentech as a senior strategic business analyst. The company offers employees a fully paid six-week sabbatical every six years. Liss said he has taken two so far.
He spent his time at NASCAR races, in the Montana wilderness, visiting Yellowstone and the Grand Teton national parks, and "locating the next microbrewery or hot springs location" along the way.
And when he came back, he felt "enthusiastic and recharged."
"I can't even explain how different it is when you get back to work. It is like starting a new job," Liss said.
2. A sabbatical won't solve all your problems: In 2007, Richard Enos was working at a software consulting company. He was tired of all the management changes there and dissatisfied with his personal life.
So he decided to take a seven-month sabbatical in Peru, during which he taught English and traveled.
For awhile, he said, the experience was "magical." But it didn't magically erase the concerns that prompted his trip in the first place.
"Whatever problems you have travel with you. A location is not going to change that. You need to find out how to fix them with or without a change of scenery," Enos said.
Sharon Cook left her job to sail the Caribbean. When she returned, her old company rehired her. 3. Time matters more than money: Allan Fawcett, a computer consultant in Burbank, Calif., has taken a few sabbaticals, two of which he used to travel the world.
Those travels opened his eyes to how people in other cultures live with less, but still find happiness.
"Had I kept working I might be wealthier. But after this last recession, I know many people who worked without a break and are poorer today. I now value time over money, and feel I am far richer because of these experiences," Fawcett wrote.
Technical writer Sharon Cook of Florida agrees. Yes, her 401(k) would be fatter if she'd stuck to the grindstone instead of sailing the Caribbean for two years. But the memorable, confidence-building adventures she had made it worth the tradeoff, Cook said.
4. Now is the time: A growing sense of mortality is a big motivator to do what you want sooner rather than later.
After more than 41 years in the construction industry, John Schroer of Ohio took six weeks off to sail up the East Coast in a 35-foot catamaran with his wife.
He had no sailing experience but took a two-day course before leaving.
"Too many of my friends have passed, and I decided that as long as my arms, legs and brain worked I needed to do this," Schroer said. "I gained self-confidence, additional appreciation for the water and was able to step away from work and breathe."
He's back at work now but planning his next adventure.
5. Time off can give you the push you need: Sustainability engineer Amy Mussen of Baltimore, Md., suddenly found herself with time on her hands after being laid off. Subsidized by a good severance package, she decided to shift gears.
"After the initial shock wore off, I realized that this was a golden opportunity to make the career change that I'd been inching toward, but had been too afraid to make on my own," Mussen said.
After an informational interview with the headmaster of a private school, she got what she describes as her "dream job": teaching high school math.
6. It's hard to give up control: With the blessing of her employer, a national environmental non-profit, Serena McClain of Virginia took some time to finish writing her novel.
Though happy for the opportunity, she was uneasy about leaving her job behind.
"It was a challenge to cede control of my projects, disconnect and trust others to not screw up," McClain said.
But she did it. As a result, she noted, "I gained perspective, as well as relaxation."
Jason Richter took an unpaid sabbatical to go on the ride of a lifetime - from Argentina to Los Angeles. 7. Coming home may be tough. Municipal financial adviser Jason Richter of Los Angeles took a nearly seven-month unpaid sabbatical to ride his motorcycle from Argentina to California. It was a peak experience, but going back to his day job was a little weird.
"I went from being my own international adventure hero to a normal office worker in about three days," Richter said. "It took awhile to adjust and I still wonder if I really should be spending so much time in an office."
8. Lose stress, lose weight: After logging 30 years in high-stress software engineering and IT management positions, Chuck Greeson resigned from his job at age 56.
"I was 25 pounds overweight, had high blood pressure, was emotionally drained, and could barely walk 100 yards due to back and feet pain," Greeson wrote.
Greeson and his wife moved to New York wine country to renovate "a rundown 200-year old cobblestone house" with "overgrown" farmland that had once been a vineyard.
A year and a half later, they had a restored home, and a working vineyard.
"I was 25 pounds lighter, fit, my back and foot pain was gone, my blood pressure was back to normal, and I felt 10 years younger," Greeson said.
He has since taken a lower stress job as a senior IT project manager.
First Published: September 12, 2014: 11:14 AM ET
