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Sprint hit with largest-ever 'Do Not Call' fine

Written By limadu on Selasa, 20 Mei 2014 | 08.36

sprint call list

This man either received an unwanted marketing call from Sprint or is seeing a photo of his sideburns for the first time.

NEW YORK (CNNMoney)

The Federal Communications Commission announced Monday that the wireless carrier will pay a $7.5 million fine for failing to honor requests from consumers to opt out of phone and text-message marketing campaigns. As part of the settlement, Sprint (S, Fortune 500) has to set up a compliance program and provide regular reports to regulators for the next two years.

The fine comes after Sprint reached a similar settlement over "Do Not Call" violations with regulators back in 2011, paying a $400,000 fine.

"When a consumer tells a company to stop calling or texting with promotional pitches, that request must be honored," FCC enforcement chief Travis LeBlanc said in a statement.

Related: Republican robocall firm slapped with $3 million fine

Sprint said the settlement "relates to issues resulting from technical and inadvertent human errors, which Sprint reported to the FCC."

"We have conducted a thorough, top-to-bottom evaluation of our Do Not Call data management systems, and significant capital investments have been made to improve our Do Not Call/SMS Message architecture, oversight and compliance," the company said.

The fine is the largest ever from the FCC in a "Do Not Call" case, though it's safe to say Sprint's not sweating it -- the company brought in $8.9 billion in sales in the first three months of this year alone.

Americans can opt out of telemarketing communications thanks to a 2003 law that set up the national "Do Not Call" registry. You can sign up for the registry online at www.donotcall.gov. To top of page

First Published: May 19, 2014: 3:53 PM ET


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What geopolitical risk? Hedge funds bet on Russia

NEW YORK (CNNMoney)

Apparently not hedge funds, who doubled down on Russian stocks in the first quarter of the year despite increasing turmoil in Ukraine over that period.

Citadel Advisors and Renaissance Technologies, among other funds, bought U.S.-listed shares of VimpelCom (VIP) and Mobile TeleSystems (MBT), two Russian telecommunications firms with significant operations in Russia and Ukraine, according to data from FactSet.

Related: Hedge funds work and play hard in Vegas

While many analysts suspect that the West and Russia are digging in for a prolonged standoff over Ukraine, hedge funds may be betting that tension won't escalate to dangerous levels. Still, shares of both companies are down sharply in 2014.

Hedge funds also loaded up on Chinese stocks in the first quarter.

Steven Cohen's Point72 Asset Management was among the firms that bought shares of Chinese search engine Baidu (BIDU). Cohen used to run SAC Capital, which plead guilty to insider trading charges last year. Point72 is his family office, but he still manages so much money that the fund is considered a power player.

Related: Top 10 highest paid hedge fund managers

Even though hedge funds ventured abroad in the first three months of the year, they still allocated most of their exposure to U.S. stocks, according to FactSet.

Their biggest target: Verizon Communications (VZ, Fortune 500).

Hedge funds poured almost $3 billion into the company in the first quarter, a roughly 330% bump from their position at the end of 2013.

That wager seems to have paid off, as shares of Verizon jumped last week after Warren Buffett's Berkshire Hathaway (BRKB) disclosed a stake in the company.

eBay (EBAY, Fortune 500) was also a top hedge fund pick. The ecommerce giant gained $2.1 billion in hedge fund investment in the first quarter. Another top winner was Liberty Global (LBTYA), which benefited from $1.7 billion in fresh hedge fund inflows.

So which stocks did hedge funds bail on?

General Motors (GM, Fortune 500), for one. Shares of the automaker are down over 16% this year as the company has come under fire for its botched recall of millions of vehicles with an ignition switch problem that it knew about for 10 years.

Also on the hedge fund chopping block were Bank of America (BAC, Fortune 500) and energy firm Kinder Morgan (KMI, Fortune 500).

Shares of both companies are languishing in the red this year. To top of page

First Published: May 19, 2014: 3:45 PM ET


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Extreme IPO! GoPro plans $100 million offering

go pro

GoPro rose to fame with its action cams - small, weatherproof, mountable video cameras that offer excellent video quality and battery life.

NEW YORK (CNNMoney)

The camera maker revealed plans Monday to raise $100 million in an initial public offering, as well as financial results showing several years of surging growth.

GoPro made its IPO plans known earlier this year but, because it filed confidentially, hasn't opened its books until now. The company's sales reached $986 million last year, more than four times its 2012 total, while profits hit $60.6 million, nearly doubling.

That pace has moderated a bit in 2014. GoPro recorded $236 million in sales for the first quarter, down from $255 million a year prior, while profits dropped to $11 million from $23 million in 2013.

The company plans to trade on the Nasdaq under the symbol "GPRO." That's a small victory for the exchange, which, despite its tech focus, has lost out to the New York Stock Exchange on offerings from companies like Twitter and Box.

GoPro rose to fame with its action cams -- small, weatherproof, mountable video cameras that offer excellent video quality and battery life considering their size. Thrill seeker Felix Baumgartner famously used a GoPro camera to record his free fall from space in 2012.

The cameras were initially marketed for extreme sports, but other hobbyists have been quick to find new uses for them. Drone enthusiasts, for example, have found the GoPro ideal for mounting on their flying vehicles and capturing footage from the skies.

But GoPro is also facing increased competition from some unlikely places. As companies like Google (GOOGL) and Samsung push technologies like Glass and the Galaxy Gear watch, more people will be donning wearable cameras -- a market GoPro has largely cornered thus far.

Foxconn -- the Chinese manufacturer best known for assembling iPhones and iPads -- invested $200 million in the company in late 2012, giving it a 9% stake. At the time, the investment valued GoPro at about $2.25 billion. To top of page

First Published: May 19, 2014: 6:18 PM ET


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Swiss voters reject $25 minimum wage

Written By limadu on Senin, 19 Mei 2014 | 08.36

switzerland luxury shopping

Many of the 330,000 workers who would have benefited from the minimum wage work in the Swiss retail sector.

LONDON (CNNMoney)

The country's election authority said a preliminary tally showed 76% voted against the proposal and 24% voted for it.

Labor unions had campaigned for months to win public backing for a minimum hourly wage of 22 Swiss francs, or nearly $25. Adjusted for the cost of living, it would be worth about $17.60 in the United States.

The Swiss government and business leaders had warned that the initiative would destroy jobs, hurt lower skilled employees and make it harder for young people and others to enter the workforce.

Switzerland is a wealthy country, enjoying above average rates of growth and employment and relatively short working hours.

But unlike many advanced economies, it does not have a statutory national minimum wage. Pay is set in negotiations between companies and individuals, or with employee representatives -- sometimes across industrial sectors.

Swiss unions argued that it was a disgrace that 330,000 mainly young workers in one of the world's richest countries don't earn enough to support a decent quality of life. Many work in retail, hotels or restaurants.

Related: Washington state defies minimum wage logic

The minimum wage would have meant raising the wages of about one in every 10 workers by an average of 15%. Campaigners said Switzerland could afford the additional cost -- estimated at 1.6 billion francs, or about 0.3% of GDP.

Germany is planning to introduce a national minimum wage next year for the first time, at 8.50 euros an hour. That's worth about $15 in the U.S.

Switzerland's constitution allows popular initiatives to be put to a national vote four times a year, provided the organizers gather 100,000 signatures in support. In order to force a change in the law, an initiative needs to be approved by a majority of the electorate and the country's 26 cantons, or districts.

Voters surprised many observers in February by approving limits on immigration despite warnings of damage to relations with the European Union and business.

A popular initiative to give shareholders more control of executive pay won clear backing from voters in March 2013, although a more radical attempt to cap top salaries at 12 times the lowest paid employee's compensation was rejected by a big margin in November. To top of page

First Published: May 18, 2014: 11:31 AM ET


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Fired Times editor to give commencement speech

jill abramson

Jill Abramson, pictured at an event in April, is set to break her silence Monday in a speech at Wake Forest University..

WASHINGTON (CNNMoney)

But she is set to break her silence Monday with a commencement address at Wake Forest University.

It isn't clear if or how she'll address her abrupt dismissal from the paper, the causes of which are now the subject of rampant speculation.

New York Times (NYT) publisher Arthur Sulzberger Jr. has explained his version of events. But Abramson's silence has left her friends and confidants -- many speaking anonymously -- to make her case.

She was announced as the commencement speaker at the North Carolina university in mid-March.

The school affirmed Sunday morning that she remained on the event's program.

Related: Why did the New York Times really sack its editor?

Sulzberger said the reasons for her dismissal involved her management of the paper's newsroom.

But some have raised questions of sexism following reports that Abramson -- appointed in 2011 as the paper's first female executive editor -- was paid less than her male predecessor.

Sulzberger denied that was the case. He said Abramson's total compensation was "was comparable with (predecessor) Bill Keller's; in fact, by her last full year as executive editor, it was more than 10% higher than his."

While Abramson has stayed quiet, her daughter has been more outspoken in online postings. On Friday, she wrote, "The story isn't over, not even close."

--CNN Senior Media Correspondent Brian Stelter contributed to this report. To top of page

First Published: May 18, 2014: 8:23 PM ET


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Kraft recalls cottage cheese citing illness risk

kraft foods

Kraft is recalling 1.2 million cases of cottage cheese that could spoil prematurely and cause illness.

WASHINGTON (CNNMoney)

The recall, announced Saturday, includes the Knudsen, Breakstone, Simply Kraft and Daily Chef brands.

Ingredients used in nearly three-dozen cottage cheese products weren't properly stored in a California facility, Kraft Foods Group said.

Since the discovery, officials halted production of those products at that plant and began working to fix the issue, Kraft said.

Kraft called the recall precautionary. Spokesman Russ Dyer said the company was investigating one complaint of illness stemming from a batch of cheese that was not recalled and is now expired.

Related: Red Lobster chain sells for $2.1 billion

Many of the varieties recalled are tubs between 4 and 16 ounces. The products were stamped with dates between May 9 and July 23.

Each case includes between six and twelve tubs of cottage cheese. To top of page

First Published: May 18, 2014: 4:58 PM ET


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Make your desk impress

Written By limadu on Minggu, 18 Mei 2014 | 08.36

(Money Magazine)

Appearance matters -- and in the corporate world, that applies to your desktop as much as your dress attire.

"Your space speaks to your work mentality, creativity, and organizational skills," says Sam Gosling, a psychology professor at the University of Texas at Austin and the author of Snoop: What Your Stuff Says About You.

Related: 5 ways to reduce your financial anxiety

And with 70% of American employees now working in open-plan offices, as the International Facility Management Association reports, desktops are more in the public eye than ever. Ensure that yours sends the right message.

1. Show some of your colors

Research has found that employees tend to be more productive when they can express their personalities, Gosling says. So make your area your own. But be wary of over-personalizing—lining the walls with team pennants or your kid's artwork, for example—as this can tarnish your professional image. Limit yourself to seven personal items, suggests Washington, D.C., career counselor Karen Chopra.

2. Minimize paper ...

A messy desk could make your manager question your attention to detail or efficiency, says Julie Morgenstern, author of Organizing From the Inside Out. Worse yet if your mess keeps you from quickly producing documents upon request.

To help reduce the paper you keep, make a cheat sheet defining "trash" vs. "save" items -- simply writing that list can be instructive -- and post it up as a reminder.

Next, create a system to organize "saves." Not a filer? At least put them in themed piles in labeled bins.

3. ... But leave a little clutter

While untidiness is unbecoming, there's also a downside to being too neat. "People will wonder when you do any work," says Chopra.

Related: How we feel about our finances

Plus, you may impede your creativity: A recent study at the University of Minnesota found that a disorderly environment stimulates innovative thinking.

The right balance? Make sure at least two-thirds of your desk is visible, says Morgenstern.

4. Have a talking piece

Being able to click with your boss determines your ability to leverage the relationship. So display something that could start a nonwork conversation, suggests Alan Hedge, a Cornell professor who studies the effects of office design on workers.

Related: How to get in trouble in your 401(k)

That may be an interactive or interesting object (like your Google Glass) or a photo showing a shared interest (you on the slopes if the boss skis).

5. Hide evidence of lunch

Six in 10 Americans regularly eat at their desks, the American Dietetic Association found. Sound familiar? Keep cleaning spray handy. And trash takeout containers promptly.

When clients visit the office, Hedge says, "your boss wants it to look like a work area, not a cafeteria." To top of page

First Published: May 16, 2014: 7:03 PM ET


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'Deathtrap' on GM's naughty words list

general motors words

GM warned employees to not use these words and phrases in memos.

NEW YORK (CNNMoney)

Those are a few of the words that General Motors asked its employees to avoid using in their internal communications.

A lengthy list of unacceptable terms appeared in a 2008 presentation given to GM (GM, Fortune 500) employees on how to communicate with each other regarding possible safety issues.

Besides individual words, certain phrases were also discouraged in the presentation. "This is a lawsuit waiting to happen," and "Unbelievable engineering screw-up" were among what the presentation described as "examples of comments that do not help identify and solve problems."

Rather, employees should use phrases like "Windshield wipers did not work properly. Would run for 3-4 seconds and then quit for the next 7-8 minutes... repeatedly."

Among the "Judgement words" employees were told to avoid: "Hindenburg," "powder keg," "Titanic," "apocalyptic," "You're toast," and "Kevorkianesque."

Less inflammatory words such as "safety," "safety related," "serious," "failure," and "defect" were also listed as words to be avoided.

GM fined $35 million for delayed recall

Such words and phrases were not to be used because they are "vague and non-descriptive" according to GM's presentation.

Instead of "Safety," an employee should write that something has "Has potential safety implications." Instead of "Defect," an employee should say that something "Does not perform to design." Instead of a "Problem," there is an "Issue, condition, matter."

As part of the evaluation process for new vehicles, automakers will often have company employees drive vehicles before they go into full production. The employees can then share any problems they might experience so issues can be resolved before the car, truck or SUV is released to the public.

Family asks to re-open GM recall

In the presentation, GM admonished employees to "Understand that there really aren't any secrets in this company".

"For anything you say or do, ask yourself how you would react if it was reported in a major newspaper or on television."

National Highway Traffic Safety Administration Acting Administrator David Friedman criticized GM for the presentation during a press conference Friday. Friedman said that, in telling employees to avoid certain language when writing about safety issues, GM was discouraging open and free discussion of potential problems.

"We encourage employees to be factual in their statements and will continue to work with NHTSA to improve our safety processes," GM said in a written statement responding to questions about the presentation. "Today's GM encourages employees to discuss safety issues, which is re-enforced through GM's recently announced Speak Up for Safety Program."

In the "Speak Up for Safety" program, GM has said it will recognize employees who share ideas to make vehicles safer or who point out potential safety issues in vehicles.

Timeline - Steps to a recall nightmare

Prior to the new safety promotion program, which was introduced after a massive recall over ignition switches tied to 13 deaths, employees were told not to be "cute or clever," something that might be "especially easy to do in an e-mail, when there might be a temptation to use a casual tone to describe a potentially serious safety risk."

The presentation, which was released to the public on Friday by NHTSA, concluded with the warning to "Consider how documents will be interpreted by people outside of GM."

The presentation, labeled "GM confidential," was submitted to NHTSA as part of the agency's investigation into the automaker's delayed recall of the Chevrolet Cobalt and other cars due the ignition switch problem.

On Friday GM agreed to pay a $35 million fine -- the maximum possible for a single violation -- for not reporting the problem to NHTSA quickly enough. To top of page

First Published: May 17, 2014: 7:31 AM ET


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Will Target's problems get worse?

target focus

Target's first earnings report since its CEO stepped down will be closely watched.

NEW YORK (CNNMoney)

You can't blame Target (TGT, Fortune 500) investors for being nervous heading into this earnings report, which is on tap for Wednesday morning. The discount retailer did little to instill confidence by announcing the surprise resignation of former CEO Gregg Steinhafel on May 5.

Target's shares have dropped about 6% since that move.

Although many investors assumed that Steinhafel's departure was largely due to the massive data breach that impacted Target customers last December, there are also concerns that the company's sales and earnings may be disappointing due to a challenging retail environment.

Wal-Mart (WMT, Fortune 500) didn't help matters last week by reporting weak results and sluggish store traffic, which the company blamed on this past winter's severe weather.

Related: Wal-Mart is hurting for shoppers

Target is expected to report earnings of 71 cents, down from 82 cents last year. Analysts have trimmed their earnings estimates by almost 20% over the past three months, but are anticipating a slight increase in revenue.

Investors will be eager to see if the company's sales and profits are affected by the negative publicity due to the security breach.

There are fears that some customers may have lost confidence in Target and no longer trust the store with their personal data, especially credit and debit card numbers.

Interim CEO John Mulligan has stressed that customers are safe. But Mulligan is not expected to be named as the permanent CEO.

Target has also struggled with new stores in Canada. This market appears to be a tough one for some retailers to crack. Another poorly performing retailer, Sears (SHLD, Fortune 500), announced last week that it may sell its investment in Canadian stores.

Sears will report its latest results on Thursday.

Related: Sears burning cash and closing stores

The numbers from Sears, Target and other retailers could set the tone for the market after last week's choppy trading. Stocks ticked higher on Friday, but finished the week mixed as volatility returned and investors worried about earnings.

dow weekly chart

Click image for more data

While Nordstrom (JWN, Fortune 500) and J.C Penney (JCP, Fortune 500) posted stronger-than-expected sales last week, the market was concerned by the problems at Wal-Mart as well as disappointing numbers from Kohl's (KSS, Fortune 500)

Home Depot (HD, Fortune 500)and Lowe's (LOW, Fortune 500) could give some clues about the health of the housing market. New reports on existing and new home sales for April will be out this week too.

Best Buy, (BBY, Fortune 500) which has been a terrible stock this year after surging in 2013, is also reporting earnings this week. Amazon (AMZN, Fortune 500) remains a tough competitor for Best Buy.

Niche retailers GameStop, (GME, Fortune 500) Dick's Sporting Goods, (DKS, Fortune 500) Foot Locker, (FL, Fortune 500) Aeropostale (ARO) and others are also due to release results.

Outside of the retail industry, Campbell Soup (CPB, Fortune 500) is scheduled to report earnings on Monday morning, while Hewlett-Packard (HPQ, Fortune 500) is set to reveal its numbers Thursday evening.

And this week's economic schedule is very light. The Federal Reserve will be back in focus on Wednesday as investors get their hands on the minutes from the central bank's policy meeting at the end of April. To top of page

First Published: May 17, 2014: 6:40 PM ET


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Friday Links

Written By limadu on Sabtu, 17 Mei 2014 | 08.36

NEW YORK (CNNMoney)

A weekly collection of design, data and interactive links.

Design/Data viz
The Day's Color | A daily color digest
Tyler Vigen | Spurious Correlations
Coconoe | Japanese interactive design
Discover.typography | Portfolio of fonts with suitable applications
Hatsuyama Shigeru | 1928--36 Kodomo No Kuni illustrations
Inferno | Sharp animated visuals
Leo's Fortune | A platform adventure game
Tiny PMS Match | Everyday objects matched to Pantone chips


Photo/Video
Godzilla Kaiju | Every Godzilla Kaiju
Early Colors | Photo blog by Valtteri Laihanen
Floating City | Concept by AT Design Office features underwater roads and submarines
Stranded on the Roof | One of the most remote landscapes on Earth
Batman Evolution | The evolution of Batman's costume in film and TV

See last week's links

Have a nice weekend!
@dubly and @talyellin To top of page

First Published: May 16, 2014: 3:34 PM ET


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