Silicon Valley comes to Iowa

An aerial view of the Facebook data center under construction in Altoona, Iowa.

NEW YORK (CNNMoney)

These massive facilities are filled with servers and other equipment that keep Web-based services running.

Microsoft (MSFT, Tech30) announced plans in April to build a $1.1 billion data center outside of Des Moines, while Facebook (FB, Tech30) will have one opening in the nearby town of Altoona early next year. Google (GOOGL, Tech30) has a facility in Council Bluffs, and there are more than a dozen others operated by smaller companies as well.

"We've really made a value proposition to data centers," said Debi Durham, director of the Iowa Economic Development Authority. "When Microsoft and Google and Facebook are all here, people take notice."

Why Iowa?

The state has an abundance of cheap renewable energy. Iowa's commercial energy prices are nearly 20% below the U.S. average, and the state generates a significant portion of its power from wind farms.

That's important for tech companies, because data centers consume a massive amount of power.

Related: Why Facebook is stockpiling Blu-ray discs

In the United States, data centers are responsible for more than 2% of the country's electricity usage, according to researchers at Villanova University. If the global cloud computing industry were considered to be a single country, it would be the fifth-largest in the world in terms of energy consumption, according to Ed Turkel of Hewlett-Packard's Hyperscale Business Unit.

Google announced an agreement in April with MidAmerican Energy to power its Iowa facilities entirely with renewable wind energy, and Facebook plans to do the same.

There's also the favorable environment for delivering power. Iowa isn't subject to rolling blackouts. While there's the occasional tornado, the state isn't at risk of earthquakes or hurricanes that could take the data centers offline.

Then there's the Google effect. Iowa offers a host of tax credits and other incentives to companies looking to build data centers. The credits were signed into law following approaches from the search giant, which announced plans to construct in Iowa in 2007.

"Google was the first to market in Iowa, and it's not uncommon in Iowa to get someone coming in saying, 'There is a value proposition, but if you did this, it would be better,'" Durham said.

Rather than extending credits specifically to Google, the state passed legislation offering sales tax rebates on electricity, computers, power infrastructure and cooling equipment purchased for use in data centers. There's also no property tax added for computers and other technical equipment at the facilities.

Related: Google snoops on Gmail to catch pedophiles

A Google spokesman said the company "picked Council Bluffs because it has the right combination of energy infrastructure, developable land, and available workforce for the data center."

The facilities don't generate a great deal of direct jobs. Google's facility has 200, according to the Iowa Economic Development Authority, while Microsoft and Facebook will have just a few dozen. The number of jobs at some of the smaller data centers, meanwhile, are in the single digits.

But the data centers offer other benefits as well, said David Maahs of the Greater Des Moines Partnership, an economic development group. Among them: new investment flowing into the state, and indirect jobs in fields like construction. The tax incentives, Maahs added, are similar to those the state has used to build its manufacturing industry.

"We're treating data centers almost like the manufacturers of the twenty-first century," he said.

First Published: August 25, 2014: 10:33 AM ET

23.10 | 0 komentar | Read More

Stocks: 4 things to know before the open

Click chart for in-depth premarket data.

LONDON (CNNMoney)

Early indications are good. U.S. stock futures were all higher Monday and European markets advanced.

Here are the four things you need to know before the opening bell rings in New York:

1. Stock market movers -- Burger King, Tim Horton's, Roche, InterMune: Get ready for market reaction after Burger King (BKW) announced it's in talks to buy the Canadian coffee chain Tim Hortons (THI) in a deal that could see the burger chain move its headquarters to Canada and lower its tax bill.

Shares in Roche (RHHBY) were up by about 0.5% after the Swiss pharmaceutical giant announced it's paying $8.3 billion to buy Nasdaq-traded InterMune (ITMN). The offer represents a 38% premium compared to where InterMune shares closed on Friday.

2. French government shake-up: French Prime Minister Manuel Valls has presented President Francois Hollande with his government's resignation, and a new government will be announced on Tuesday. Shares in the benchmark CAC 40 in Paris were higher by about 1% in early trading.

Related: Fear & Greed Index

3. Economic data: New data on business sentiment in Germany shows confidence continues to deteriorate as the economy loses steam. Many German firms have suffered as tensions escalate with Russia, a major trading partner.

At 10 a.m. ET the U.S. Census Bureau will release data on new home sales.

Related: CNNMoney's Tech30

4. Friday market recap: U.S. stocks closed mixed Friday. The Dow Jones Industrial Average and S&P 500 both slid about 0.2%, but the Nasdaq gained about 0.1%.

First Published: August 25, 2014: 5:13 AM ET

23.10 | 0 komentar | Read More

Despite risk, most Californians don't have earthquake insurance

Northern California was awakened by a 6.0 earthquake early Sunday morning.

NEW YORK (CNNMoney)

The 6.1 magnitude earthquake that rattled Northern California early Sunday morning shocked a populated area, damaging buildings, sparking fires, rupturing utility lines and injuring at least 176 people.

Experts say it is too early to fully put a dollar figure on the damage, and the U.S. Geological Survey said the earthquake's economic impact is likely more than $1 billion.

Only about one in ten Californians have insurance to cover the damage to their homes and property, according to the California Earthquake Authority. It estimated the numbers are even lower in some of the areas that were affected Sunday, such as Napa, where as few as 6% have coverage.

Surveys show the percentage of homeowners who have earthquake insurance is declining across the country.

The Insurance Information Institute in May found that 10% of homeowners in the western United States have coverage, down from 22% a year ago. Nationwide, just 7% carry coverage, a drop of 3 percentage points in the last year.

People with higher incomes are more likely to buy coverage than those who make less, the surveys reported.

California does not require homeowners, renters or building owners to buy such insurance, and earthquake damage is usually excluded from other homeowner insurance policies.

The cost of coverage varies, including by location and what the home is made of, but on average it costs California homeowners about $860 per year.

More people would carry earthquake coverage if not for misperceptions about what policies do and do not cover, said California Earthquake Authority CEO Glenn Pomeroy. The length of time between major earthquakes may also "lull people into a false sense of security." His group is a nonprofit insurer created by the state legislature after the 1994 Northridge earthquake, ranked the most expensive in U.S. history.

Earthquake insurance generally covers the home itself and personal property inside it. Some plans offer cash for emergency repairs and fund temporary living arrangements if a home is badly damaged or destroyed.

Those who do have coverage "should call their agent immediately and get the process going," Pomeroy said.

Have you decided against buying earthquake insurance? Please tell us your story in an email to gregory.wallace@cnn.com.

First Published: August 24, 2014: 4:08 PM ET

23.10 | 0 komentar | Read More

Hackers attack Sony PlayStation Network

The "Lizard Squad" has targeted Sony's online gaming network.

NEW YORK (CNNMoney)

Over the weekend, Blizzard Entertainment, CCP Games, Riot Games and Sony (SNE) have done maintenance to bring their networks back online.

CNNMoney quiz: What hackers know about you

The hackers, speaking publicly on Twitter, claimed responsibility for attacking the PlayStation Network and others, disrupting the ability of millions of gamers to play together online.

According to the targeted companies, hackers flooded their networks with illegitimate traffic -- a strategy known as a distributed denial of service attack. The FBI said it was investigating.

The hackers slammed the following game networks:

• Battle.net (World of Warcraft, Starcraft II, Diablo III)
• EVE Online
• League of Legends
• PlayStation Network and Sony Online Entertainment

On Sunday, Sony said both its services were still under repair but assured customers no user data was exposed. The other networks did not immediately return requests for comment.

When John Smedley, president of Sony Online Entertainment, acknowledged the "large scale" attacks on Twitter, he came under fire as well. Knowing that Smedley was on a flight from the Dallas area to San Diego, the hackers made a veiled threat about bombs on his plane.

"We have been receiving reports that @j_smedley's plane #362 from DFW to SAN has explosives on-board, please look into this," the group said to American Airlines on Twitter, pairing that with images of the Sept. 11, 2001 attacks.

The plane was diverted to Phoenix Sky Harbor Airport.

CNNMoney's cybersecurity Flipboard magazine: How safe are you?

The FBI later released this statement: "The flight landed without incident. Passengers were safely removed from the plane."

-- CNN's Evan Perez contributed to this report.

First Published: August 24, 2014: 10:03 PM ET

23.10 | 0 komentar | Read More

Is Burger King moving to Canada?

HONG KONG (CNNMoney)

The new company would be headquartered in Canada, the two firms said in a joint statement. Both Tim Hortons (THI) and Burger King (BKW) would continue to operate as standalone brands.

By moving north of the border, Burger King would be completing what is called an "inversion" -- a strategy that allows U.S. firms to lower their tax bills by merging with a foreign company, and then relocating to the new country.

Corporate tax rates are lower in Canada than the U.S., which has the highest tax rate among developed economies.

In the case of Miami-based Burger King and Tim Hortons, the combined company would be the world's third largest fast food chain, generating $22 billion in sales at more than 18,000 restaurants in 100 countries.

Related: 7 things you absolutely must know about corporate taxes

In the past decade, at least 47 U.S. companies have used the inversion process. Several inversions have been proposed this year and more are in the works.

One major inversion deal was announced in July, when Chicago-based AbbVie agreed to a $54.7 billion merger with Britain's Shire, slashing AbbVie's effective tax rate to about 13% by 2016 from 26%.

Drugmaker Mylan also announced last month that it would buy a Netherlands-based unit of Abbott Laboratories in a deal designed to let it incorporate abroad.

Related: 8 of the world's craziest fast food items

The flurry of deals has attracted the attention of Washington, and the White House has called on companies to practice "economic patriotism."

"They're declaring they're based someplace else even though most of their operations are here. .. My attitude is I don't care if it's legal -- it's wrong," President Obama said in July.

First Published: August 24, 2014: 11:18 PM ET

23.10 | 0 komentar | Read More

Apple recalls iPhone 5s for battery woes

Certain iPhone 5 smartphones are eligible for free battery replacements, Apple says.

NEW YORK (CNNMoney)

Apple (AAPL, Tech30) said "a very small percentage" of iPhone 5 smartphones may "suddenly experience shorter battery life or need to be charged more frequently."

Don't get too excited just yet. After a year or two, everyone's iPhone battery seems to carry less juice than it once did. But Apple's repair program is limited to certain customers in the United States and China.

Only iPhone 5 smartphones sold between September 2012 and January 2013 are eligible, and only those that fall within a certain range of serial numbers. Apple has opened a website that allows people to determine whether their phones are eligible. (To access your serial number, tap Settings > General > About > Serial Number).

Apple announced an even smaller iPhone 5S battery recall program last year. In June, Apple issued a recall in 37 countries for European iPhone chargers that were overheating.

First Published: August 25, 2014: 9:15 AM ET

23.10 | 0 komentar | Read More

The 10 most expensive U.S. earthquakes

Sunday morning's earthquake jolted Northern California, leaving extensive and widespread damage.

NEW YORK (CNNMoney)

That would rank the 6.1 magnitude quake, which left extensive and widespread damage, among the most expensive in terms of damage to homes and other infrastructure.

Nearly all of the 10 most expensive earthquakes in U.S. history have hit California.

Here is the list, with cost figures not adjusted for inflation, according to the Insurance Information Institute and USGS:

1. January 17, 1994: $44 billion.
The 6.7 quake that hit California's San Fernando Valley has come to be known as the Northridge quake. Only about $15 billion of the damage was covered by insurance policies. It killed 60 people and injured more than 7,000, the USGS says.

Buildings crumbled in the 1994 Northridge earthquake, rated the most expensive in U.S. history.

2. October 17, 1989: $10 billion.
The last time the San Francisco Bay region shook like it did on Sunday was the 6.9 magnitude Loma Prieta earthquake.

3. February 28, 2001: $2 billion.
The magnitude 6.8 earthquake that rattled Seattle and Tacoma, Washington, was felt as far away as Montana.

4. March 27-28, 1964: $570 million.
The Great Alaska Earthquake was the second-strongest earthquake ever recorded and lasted about three minutes, according to the USGS. It leveled buildings and caused landslides, then was followed by a tsunami that pummeled coastal towns.

Related: Most Californians don't have earthquake insurance

5. February 9, 1971: $553 million.
It took just 60 seconds of shaking for highway overpasses in the San Fernando Valley to collapse from the magnitude 6.6 earthquake. Only $35 million was covered by insurance policies.

6. April 18, 1906: $524 million.
The legacy of the Great 1906 San Francisco Earthquake isn't the trembling ground, but the fires it caused. The official death toll was 700, although the USGS said that figure "underestimate(d) the total loss of life by a factor of 3 or 4."

7. October 1, 1987: $360 million.
Two dozen bridges in the Los Angeles area were damaged by the 5.9 magnitude Whittier Narrows earthquake.

8. April 4, 2010: $150 million.
The so-called Easter Earthquake was a magnitude 7.2 and shook San Diego, Los Angeles and parts of Arizona.

9. June 28, 1992: $100 million.
Two earthquakes, rated at 7.6 and 6.7, about 17 miles apart, shook Southern California.

10. September 3, 2000: $80 million.
This magnitude 5.0 earthquake in the Napa area caused "considerable damage," according to the USGS.

--CNN's Taylor Ward contributed to this report.

First Published: August 24, 2014: 8:11 PM ET

23.10 | 0 komentar | Read More

Original Superman comic sells for record $3.2 million

NEW YORK (CNNMoney)

A pristine copy of Action Comics #1 -- which introduced Superman for the first time -- sold on eBay (EBAY, Tech30) for $3,207,852, a record. When it originally hit newsstands in 1938, the comic sold for 10 cents.

Reports from websites that follow the comic industry say the publication was bought by comicconnect, an online auctioneer.

"I'm proud to have owned the most valuable comic book in the world," said Darren Adams, the comic's seller, and owner of Pristine Comics near Seattle.

In a video on Pristine's website, Adams explained how the comic was bought at a newsstand in 1938 by a man from West Virginia who kept it in a cedar chest. The high-altitude location, and the cool, dry, dark environment kept the comic in nearly perfect condition.

The book was eventually discovered in the 1970s and sold to a prominent dealer, who resold it to Adams.

The Superman comic is graded a 9 on a scale from 1 to 10, with 10 being the highest, according to comic book grading company Certified Guaranty.

According to the news release, a portion of the proceeds from the auction will be donated to the Christopher and Dana Reeve Foundation.

Reeve starred as the iconic Man of Steel is a series of movies before a horse-riding accident left him paralyzed in 1995. He started his foundation to promote research to help people with spinal-cord injuries. Reeve died in 2004.

First Published: August 25, 2014: 8:44 AM ET

23.10 | 0 komentar | Read More

S&P 500 tops 2,000 for first time ever

How long would it take to blow out 2,000 candles? The S&P 500 topped the 2K mark for the first time Monday.

NEW YORK (CNNMoney)

Despite a fair amount of ups and downs over the past few months, the popular index of large companies is up 8% this year. And that follows a nearly 30% surge in 2013.

If you've had your money in the market since 2009, you're likely very happy -- and a lot richer. The S&P 500 is now up more than 200% since this bull market began in March 2009. Many people invest in retirement funds that mimic the S&P 500.

Why stocks are up: You can thank Europe for this latest surge. Comments from the head of the European Central Bank on Friday are driving today's action. Mario Draghi, speaking at conference hosted by the Federal Reserve in Wyoming, hinted that the ECB may do more to stimulate the struggling European economy if deflation gets worse. In other words, the Band-aid is ready.

Related: 3 reasons stocks are still charging ahead

The hope is that the ECB may eventually launch a bond buying plan similar to the quantitative easing (QE) program that the Fed has been conducting since the financial crisis in late 2008.

Many market experts have stated that the Fed's actions are the key driver of the bull run on Wall Street. The so-called QE program has helped keep long-term bond rates low -- which make stocks more attractive and also enable more companies and consumers to take out cheap loans

But the Fed is currently in the process of unwinding its so-called QE plan. So investors seem excited by the fact that the ECB may be finally ready to step up to the plate and pump more money into the global financial markets.

Why you should care: While the S&P 500 may not get as much attention from casual investors as the Dow Jones Industrial Average -- which many people still view as "The Market" -- the S&P 500 is a far more important indicator of how Wall Street is doing. The Dow has only 30 stocks in it and does not include all the big companies that many consumers are more likely to recognize and invest in.

For example, Apple (AAPL, Tech30), Google (GOOGL, Tech30) and Facebook (FB, Tech30) are all in the S&P 500 -- but not in the Dow.

Related: Apple stock sets a new record

And many mutual funds that you own in your 401(k), other retirement plans or a 529 for your kid's college savings are likely to be set up to try and beat the performance of the S&P 500.

Still, is it really all that important when a market index hits a round number? Yes and no.

On the one hand, 2,000 is a new all-time high. So that's significant.

But in the same way that turning 40-years-old is not really all that different from 39, the S&P 500 passing 2K merely suggests that investors still believe stocks are worth buying even as prices climb higher.

It's also important to remember the simple rules of math. As stocks continue to go up, it's easier to hit new milestones. The S&P 500 went up 5.3% on its way from 1,900 to 2,000. But the index will only have to go up 5% from here to reach 2,100 and another 4.8% to go from 2,100 to 2,200.

Who the biggest winners are: A vast majority of the stocks in the S&P 500 are up this year. But what's most impressive is that the biggest gainers come from a wide range of sectors. K-Cup coffee maker Keurig Green Mountain (GMCR) is the top dog in the S&P 500 in 2014. Shares are up 75%.

Related: Coming soon: The official Maxwell House K-Cup

But there are also airlines Southwest (LUV) and Delta (DAL) among the top 15 gainers. So are well-known brand name firms like video game developer Electronic Arts (EA, Tech30), sporting apparel maker Under Armour (UA) and aluminum giant Alcoa (AA). Energy firms Newfield Exploration Company (NFX), Williams Companies (WMB) and Nabors Industries (NBR).

In other words, investors have not had to bet on one market trend to do well this year.

First Published: August 25, 2014: 10:48 AM ET

23.10 | 0 komentar | Read More

China ditching Windows and Android for its own operating system

China is developing its own operating system, which will compete with Microsoft Windows and Google Android.

NEW YORK (CNNMoney)

The goal: decrease China's reliance on U.S. software companies.

The state-controlled Xinhua News Agency made the announcement on Sunday, citing U.S. surveillance as one of the reasons Chinese engineers are developing their own operating system for desktop computers and mobile devices.

The new software would compete directly with Microsoft (MSFT, Tech30) Windows and Google (GOOG) Android. It would be available to China's consumers and government personnel alike.

The operating system is slated for release in October, Xinhua reported.

Related story: Hackers attack Sony PlayStation Network

The project is being completed by an alliance of developers operating under the guidance of Guangnan Ni, who co-founded Chinese computer maker Lenovo in 1984. He remains one of the top figures in the country's technology scene.

Ni told Xinhua the government should lead the project going forward. He noted that Chinese software developers have been building their operating systems on top of Google's Android platform instead of starting from scratch -- and the government could help move them to the new Chinese OS.

The Chinese government has complete control of the country's software market, and this is the latest sign that authorities are going domestic on tech.

When Microsoft ended support for Windows XP in April, it left nearly three-quarters of Chinese computers at risk of bugs and malware.

China then blacklisted Microsoft's latest operating system, Windows 8, banning it from all government computers. The Chinese news agency named Microsoft's "monopoly" as one reason for bringing production domestic -- rather than upgrading government computers to Windows 8.

But it also cited U.S. spying as a reason for backing its own OS, suggesting that the Chinese government is worried the U.S. National Security Agency might be inserting backdoors into U.S.-made software like Windows and Android.

First Published: August 25, 2014: 11:40 AM ET

23.10 | 0 komentar | Read More

You can't change the color of Facebook - it's a virus

An app claiming to change Facebook's color palette is actually loading malware onto your smartphone or PC.

NEW YORK (CNNMoney)

More than 10,000 people around the world have been duped into downloading the malware, according to a Cheetah Mobile Security blog post.

When Facebook (FB, Tech30) users click on the fake app, it sends them to a malicious website that asks them to watch a tutorial video about how to change the color of their profile page. By agreeing to watch the video, the users give hackers access to their profiles, letting the app spam their friends.

If the user doesn't watch the video, the app will lead PC users to download a pornography video player and smartphone users to download an antivirus app. Both are infected with malware.

The good news is the bad app is pretty easy to get rid of -- just remove the color changer app from the Facebook app settings page. Cheetah Mobile Security also advises affected users to change their passwords.

Facebook color changer scams have been around awhile. It's generally a good idea to avoid anything purporting to change the color of your profile.

Related: Facebook snaps up security startup

There is one safe app for people who are tired of Facebook's blue palette. Google Chrome Users can go to colormyfacebook.com and install a free Web app that changes Facebook's color scheme to just about any color in the rainbow.

No such luck for smartphone users, unfortunately. If you don't like blue on your smartphone, you're just going to have to live with it.

First Published: August 11, 2014: 10:45 AM ET

23.10 | 0 komentar | Read More

Glenn Beck's challenge: Getting onto your TV

NEW YORK (CNNMoney)

His channel, now known as TheBlaze, gained hundreds of thousands of subscribers, making Beck a model for other media personalities that want direct business relationships with their fans. TheBlaze is part of a virtuous circle of conservative media: Beck's free-to-air radio show and free Web site stirs interest in the $10-a-month Internet channel, and all of those outlets help Beck market books, sell tickets to his live stage shows and introduce new hosts.

"I am interested in delivering an experience for people," Beck told me in an interview for CNN's "Reliable Sources." "And I want to be in every -- in every possible venue."

Right now what's mostly missing is a home on traditional television. Yes, the lines between Internet TV and old-fashioned cable TV are blurring, but the vast majority of video-viewing still happens through cable. For the past two years Beck's company, Mercury Radio Arts, has been seeking cable distribution, but to date TheBlaze is only available in a fraction of the 100 million homes that have cable, satellite or some other form of pay TV in the United States.

"He's trying, but it's tough to get carriage," said BTIG analyst Rich Greenfield. A typical cable channel (like CNN) is owned by a company (like Time Warner (TWX)) that also owns a portfolio of other channels (like TNT and Cartoon Network), giving the owner a lot of leverage in its negotiations with distributors. That's what TheBlaze is lacking.

Big cable and satellite distributors "have no incentive to let independent networks on," Greenfield said. "They want to carry fewer channels and they no longer believe more content, even if unique, will add subscribers."

Related: Brian Stelter on the future of media

Indeed, there are many other fledgling channels in the same position as TheBlaze. No other channel, though, is so closely tied to a popular (and polarizing) commentator like Beck.

Beck knew that getting TheBlaze onto cable -- where it could compete with 21st Century Fox's (FOX) Fox News -- would be tough. When I interviewed him at his headquarters in Irving, Texas, I asked him what kind of feedback he has received from distributors like Comcast (CCV) and DirecTV (DTV) -- the country's biggest cable and satellite providers, respectively -- and he laughed.

"I'd probably let our attorneys handle that one," he said.

TheBlaze was initially picked up by the Dish Network (DISH) in 2012, in what was a big coup for Beck at the time. Since then, it has struck distribution deals with about 70 smaller providers. But the industry is top-heavy, and only two of the ten biggest providers, Dish and Cablevision (CVC), have supported TheBlaze so far.

I told Beck about an exchange I had with an executive at one big distributor -- almost as big as Comcast. There's a simple reason why the distributor hasn't picked up TheBlaze yet, the executive said: "What happens if Beck gets hit by a bus tomorrow?"

In other words, what makes the channel worth carrying, besides Beck's own daily talk show?

I left Texas with the impression that Beck is preparing an answer to that question. TheBlaze currently has a number of other conservative and libertarian talk shows, sporadic documentaries and even a series called "Liberty Treehouse" for children. But in the future, if all goes according to plan, it will also have the kind of scripted shows that other cable channels are now known for.

"My focus is on culture," Beck said. "We're working on a few projects that are mainstream television that are ... rooted in history, so to speak."

He said he hopes the first scripted series will debut sometime next year.

Beck asserted that some of the opposition to carrying TheBlaze "is political," something that one of his regular guests, Rep. Louie Gohmert, also suggested earlier this year at a House hearing about Comcast's proposed merger with Time Warner Cable (TWC). Gohmert, a Texas Republican, challenged Comcast executive vice president David L. Cohen, who responded, "There is no judgment being made about carriage of The Blaze based upon political perspective."

Beck's company has come out against the proposed merger because, he said, "these companies are getting so massive that they have almost total control of a portal."

"When I left Fox, I -- my thought was, can a man still have an idea and a dream and go up against the titans and still make it? So far, the answer is yes," he added. "But if you can't crack the cable code without having the big, you know, some big corporation behind you, the answer is no. And I think that's a problem in America."

TheBlaze continues to be available via the Internet for $10 a month. Beck declined to say how many people subscribers he has, but Greenfield, the industry analyst, estimated 400,000.

Meanwhile, the companion news and opinion Web site TheBlaze.com now averages more than 25 million unique visitors per month. Beck describes the overall "footprint" of his company as "50 million people."

The more striking number to me is $90 million -- that's how much Forbes magazine estimates the company earns each year. Much of that still comes from radio, via Beck's daily syndicated show. If he can get TheBlaze carried in most of the 100 million homes with cable -- assuming a small per-subscriber fee is attached -- Beck's company will start to earn well over $100 million a year.

First Published: August 10, 2014: 11:24 AM ET

23.10 | 0 komentar | Read More

Amazon price war: Both sides want you to email a CEO

Amazon CEO Jeff Bezos and his Hachette counterpart should prepare for some reader emails.

NEW YORK (CNNMoney)

The war of words between Amazon, publishing house Hachette and an alliance of authors flared up this weekend, as the parties made their cases directly to readers.

There was still no sign the months-long standoff was any closer to a resolution than when it began in the spring.

That's when Amazon (AMZN, Tech30) started listing some Hachette e-books unavailable and physical copies as delayed, sometimes for several weeks. It has also posted prices higher than those available from other booksellers.

At the center of it all is a fight over how much Amazon should pay Hachette for e-books. Amazon says it should pay less because, it argues, e-books are less expensive to produce and have no resale value.

"With an e-book, there's no printing, no over-printing, no need to forecast, no returns, no lost sales due to out of stock, no warehousing costs, no transportation costs, and there is no secondary market -- e-books cannot be resold as used books," Amazon wrote in an online letter. It called the campaign Readers United.

Related: 5 gadgets that changed Amazon

But Hachette has said Amazon is not properly valuing the e-books. The publisher -- home to the Little, Brown and Grand Central Publishing brands -- said it wants a solution that "preserves our ability to survive and thrive as a strong and author-centric publishing company."

And the writers who have banded together said they're caught in the middle.

"This is no way to treat a business partner. Nor is it the right way to treat your friends," read a two-page ad from Authors United in Sunday's New York Times.

Among the signatories are high-profile Hachette authors Malcolm Gladwell and James Patterson. Those Hachette authors absent from the roll include J.K. Rowling, who has remained quiet on the matter, and Stephen Colbert, who rallied his fans against Amazon in a social media campaign this summer.

Both Amazon and the authors are trying to get readers to rally to their side. Amazon offered up an email address for Hachette CEO Michael Pietsch. The authors said they weren't taking sides, but provided an email address for CEO Jeff Bezos and asked supporters to help "change his mind."

Amazon, because of its size, has significant influence over pricing. But it has lost before. It conceded to the publisher Macmillan in 2010 but still insisted the prices it agreed to pay were "needlessly high for e-books."

First Published: August 10, 2014: 3:06 PM ET

23.10 | 0 komentar | Read More

BuzzFeed raises another $50 million to fund expansion

NEW YORK (CNNMoney)

The cash infusion, from the giant venture capital firm Andreessen Horowitz, is BuzzFeed's fifth round of funding. It easily eclipses the four prior rounds, which raised a combined $46.3 million.

"We're presently in the midst of a major technological shift in which, increasingly, news and entertainment are being distributed on social networks and consumed on mobile devices. We believe BuzzFeed will emerge from this period as a preeminent media company," Andreessen Horowitz partner Chris Dixon wrote in a blog post describing the investment.

The investment comes a few months after talks fell apart between BuzzFeed and a potential buyer, The Walt Disney Company (DIS). BuzzFeed was "said to have sought upwards of $1 billion," a price tag that Disney was unwilling to consider, according to Fortune, which was the first to report on the talks in April.

Other news accounts at the time said BuzzFeed valued itself at "nearly $1 billion."

The $50 million from Andreessen Horowitz values BuzzFeed at "about $850 million," according to The New York Times, which was the first to report on the new funding round. (Amazon (AMZN, Tech30) founder Jeff Bezos bought The Washington Post last year for $250 million.)

Related: BuzzFeed fires viral politics editor for plagiarizing

BuzzFeed has become an emblem for the good and the bad of the digital age -- where first-hand news accounts from foreign lands live side by side with listicles sponsored by advertisers.

The company's financial results are closely held, but Dixon said in his blog post that it is "consistently profitable, and will generate triple digit millions in revenues this year."

Related: Future of media

With the new round of funding, the company will expand its news coverage and what it calls BuzzFeed Life, which includes lifestyle sections like food, parenting and style. Ben Smith, BuzzFeed's editor in chief, said on Twitter that "we're going to be looking to double our incredible foreign desk."

The headcount of the lifestyle team will roughly triple.

BuzzFeed will also expand its video unit, henceforth known as BuzzFeed Motion Pictures. The unit recently moved onto a 45,000-square-foot lot in Hollywood -- not bad for a site sometimes stereotyped as a home for cat videos.

First Published: August 10, 2014: 10:52 PM ET

23.10 | 0 komentar | Read More

Stocks: 3 things to know before the open

Click chart for in-depth premarket data.

LONDON (CNNMoney)

U.S. stock futures were jumping Monday, and Kinder Morgan (KMI) shares were up by 10% in premarket after the energy infrastructure company announced it was hiking its dividend and would spend more than $40 billion to buy out smaller shareholders.

Here are the other three things you need to know before the opening bell rings in New York:

1. Risk fears fade: Investors have been worried about geopolitical uncertainty in recent weeks. But U.S. stocks closed higher Friday and it looks like markets are shaking off some of those fears.

"Markets continue to differentiate between the humanitarian crises in Gaza and Iraq, which are not market drivers, and the Ukraine conflict which has far more potential to spill over to asset prices. The lack of news on the last of these supports the risk bounce," said Kit Juckes, a market strategist at Societe Generale.

On Friday, the Dow Jones Industrial Average and the S&P 500 both gained more than 1%, while the Nasdaq advanced 0.8%.

Related: Fear & Greed Index

2. International markets: Turkey is in the spotlight Monday after Turkish Prime Minister Tayyip Erdogan reportedly won the race to become the country's first directly-elected president. Market reaction has been muted, with the main Turkish index pointing slightly lower.

European markets were all higher in early trading. The main markets had declined Friday.

Asian markets also closed the day with gains.

Related: CNNMoney's Tech30

3. Earnings: Priceline (PCLN, Tech30) and food service distributor Sysco (SYY) will report earnings before the open.

American Apparel (APP) will report after the close.

First Published: August 11, 2014: 5:05 AM ET

23.10 | 0 komentar | Read More

GM loses bid to stop key recall lawsuit

NEW YORK (CNNMoney)

A Georgia state judge on Saturday denied GM's attempt to stop the case brought by Brooke Melton's parents, according to Lance Cooper, the family's attorney.

Brooke Melton, 29, was killed on a rainy evening in 2010 when her 2005 Chevrolet Cobalt hydroplaned, hit an oncoming car and tumbled off the road into a ditch.

Her parents settled with General Motors last fall, months before GM (GM) recalled 2.6 million vehicles with the faulty switch.

Earlier this year, GM admitted that some employees were aware of the problem with the switch 10 years earlier.

The Meltons' effort to overturn the settlement alleges the company lied about not knowing of the flaw. Saturday's ruling allows them to move toward a trial.

The Meltons said their daughter was a cautious driver. Although she was going slightly above the speed limit, they doubted she was to blame for the crash. "I knew in my heart and in my gut there was something wrong with the car, that it wasn't her fault," her father, Ken Melton, told CNNMoney's Poppy Harlow in a May interview.

The Melton case helped push the recall scandal to the surface.

Related: GM's most popular pickup is this year's most recalled vehicle

Cooper's firm hired an engineering expert who discovered that the switch had been redesigned to make it harder to inadvertently turn the vehicle off while driving.

It was the first known time anyone besides General Motors and its supplier were aware of the issue.

General Motors said it was "disappointed in the court's decision." It said it believed the September 2013 settlement had been reached in "good faith" and barred additional legal action.

Related: Two victims; GM counts only one

The company established a victim compensation program led by attorney Ken Feinberg and had received at least 125 claims as of late last week. The Meltons have said they're not interested in that or any other settlement with GM this time.

The decision green-lights the pre-trial legal steps, including witness depositions and the exchange of evidence.

The case is schedule to go to trial in April 2016, but could be heard sooner, the Melton family attorney said.

First Published: August 10, 2014: 7:36 PM ET

23.10 | 0 komentar | Read More

We Native Americans are 'poster children' for no Internet access

Loris Taylor of the Hopi Nation has been a leading figure in the effort to bridge the digital divide for Native Americans.

NEW YORK (CNNMoney)

He brings his handmade jewelry, paintings and bronze sculptures to art shows to advertise his work. He'd rather be able to stay at home and sell his pieces online, potentially reaching a larger audience. But he has no Internet access.

That's because Bahe lives on the Navajo Nation reservation in northeast Arizona, in an area about 45 miles from the nearest town.

"The only thing we know how to do to get access to the outside world is smoke signals, and the wind doesn't blow our way anymore," said Bahe with a laugh.

Bahe's 16-year-old grandson attends school off the reservation and wants to take college-level courses online for school credit, like his classmates do. But, like his grandfather, he doesn't have Internet at home on the reservation.

"He feels like his friends are more advanced than he is at school; he feels left behind," said Bahe.

Bahe's situation is not uncommon. It's what the majority of those living on Native American lands in the United States face every day. The broadband penetration rate across the 566 federally recognized tribes is less than 10%, according to a Native Public Media and New America Foundation analysis.

"Students will drive to neighboring cities and sit in the McDonald's (MCD) parking lot to get connectivity," said Traci Morris of the Chickasaw Nation of Oklahoma. She co-authored the study and is the director of the American Indian Policy Institute at Arizona State University. In a new report, Morris notes that the lack of broadband access even includes key community institutions on reservations, such as libraries.

Related: 4 ways fast lane could change your Internet service

The country's major broadband providers tend to pass over rural tribal lands, in favor of wiring more densely populated urban areas. Wiring homes for broadband is expensive, and they can get a bigger bang for their buck in cities and towns, explained Morris.

Regulatory hurdles also have dissuaded Internet companies from wiring reservations. Doing business in a reservation begins with a lengthy, multi-tiered bureaucratic process that starts with the Bureau of Indian Affairs, and includes navigating each sovereign tribal nation's unique system of governance.

The FCC's Tribal Government Engagement Obligation initiative hinges on meaningful, collaborative relationships between carriers and tribal leadership, but there's no one-size-fits-all solution. Developing a system of best practices will have to happen on a case-by-case, tribe-by-tribe basis -- and that will take time, explained an FCC official.

Cyclical and endemic poverty on tribal lands is another impeding factor to getting reservations online. Native American and Alaskan Natives have the highest poverty rate by race in the United States, with nearly one-third of those on reservations living below the federal poverty line, according to 2012 U.S. Census data.

Derek White, general manager at Gila River Telecommunications based outside of Phoenix, Arizona, is one of the just 11 native telecommunications companies on tribal lands. Half of his residential customer base from the Gila River community gets Internet access from his service, but he says cost of both connectivity and devices, like laptops and tablets, is a huge barrier for Native Americans.

"Our community is still in a state where we have to decide between communications -- or water, food and gas in the car," said White.

In the past, the problem went largely unaddressed by the U.S. government. Native Americans were always placed in the "Other" box when it came to data collection on broadband services in America, explained Loris Taylor of the Hopi Nation, and CEO of the Arizona-based Native Public Media.

"We were not mentioned at all," she recalled. " Native Americans are the most invisible, most underserved, and, as a result, most vulnerable group. We are the poster children of non-access to what drives the economy and the world today."

As a part of the FCC's efforts to confront the problem, its four-year old Office of Native Affairs and Policy is engaged in a series of training and consultation workshops on tribal lands in Idaho, California, Minnesota, Oklahoma and on the East coast. The goal, in part, is to educate stakeholders about FCC policies and for the U.S. government to learn better what the different Native American populations' unique needs are.

The FCC is incentivizing broadband companies to bring Internet service to Native American territories by offering federal subsidies.

Related: Harlem: New York's new tech hub?

But the solution isn't as simple as just providers showing up. White, from the Gila River community, has begun consulting with outside providers who are coming in. He is sharing culturally-specific information to help facilitate better engagement with native leadership.

"Large carriers have that mentality of being the big fish," said White. "A carrier may just say, 'We're going to put a 300-foot tower in your community and it's going to be the greatest thing since sliced bread,' without doing any assessment of the impact on the community."

Still, the demand for Internet is definitely there.

"They know the Internet is the great equalizer -- for their kids especially -- and they want it," said Morris.

Today, everything from applying to jobs, to doing research for school work, to paying bills is done online. Native advocates and community members recognize the unprecedented opportunity the Internet poses for entrepreneurship and economic growth, increased civic engagement, and better education and health care for their nations -- still in the process of rebuilding.

"The resilience of Indian country never ceases to amaze me. We know our communities. We get things done with limited means. We are adaptable people, or we wouldn't still be here," said Morris. "It's a matter of getting a seat at the table."

First Published: August 11, 2014: 6:56 AM ET

23.10 | 0 komentar | Read More

Kim Kardashian's selfies coming soon in hardcover

Kim Kardashian, pictured here in Paris shortly before her May wedding to Kanye West, will publish a new book of selfies called - wait for it! - "Selfish."

NEW YORK (CNNMoney)

It seems hard to believe, but the reality-TV diva actually has a stash of photos that haven't been tweeted, instagrammed or otherwise posted anywhere else.

"Selfish" was written by Kardashian and features many "never-before-seen personal images" of her, according to Rizzoli, a publisher specializing in illustrated coffee table books.

Kardashian, who is famously famous for being famous, has tweeted tons of photos of herself -- and her various body parts -- to her 22.7 million Twitter (TWTR, Tech30) followers as she documents her glamorous lifestyle with rapper-husband Kanye West and daughter North.

Related: Kim Kardashian's game makes $700,000 a day

For instance, she recently posted a work entitled "The Many Moods of Me" to Instagram. It features nine photos in tic-tac-toe "Brady Bunch" grid style, but just one person -- Kardashian -- with nearly-identical facial expressions in each.

While Kardashian images are plentiful and free online, the 352-page hardcover will cost $20 when it hits the market next April.

This is not Kardashian's first book. She co-authored a novel, "Dollhouse," in 2012 with her sisters Kourtney and Khloe. According to the back flap, the novel is about "three beautiful, loving and deeply loyal sisters who are the heart and soul of their family." It also has a leopard print cover.

First Published: August 11, 2014: 10:15 AM ET

23.10 | 0 komentar | Read More

Live in a multimillion-dollar home for $2,500

The Starres in front of their $1.3 million dollar Showhome in Carlsbad, Calif.

NEW YORK (CNNMoney)

As home managers, Calvenn and Crystena Starre rent a $1.3 million home in Carlsbad, Calif., for just $2,500 a month -- about a third of what it would cost normally.

They're "hired" by Showhomes, a Nashville company that helps sell high-end homes. It preps the homes to look "lived in"... by finding people to actually live in them, at a very discounted rate.

Currently, there are 200 home managers, who reside in the home until it's sold (it usually takes about three to six months). They watch for any maintenance issues and make the home look desirable (food in the fridge, clothes in the closet) for prospective buyers.

But not everyone can get the gig -- Showhomes' acceptance rate is about 40%. Residents must undergo online background checks, including criminal and rental histories. They're typically white-collar professionals who are in a city temporarily, newly divorced or, in the Starre's case, a family of five looking for a quick and easy rental.

Related: 10 best cities to launch a startup

With Showhomes, the Starres didn't need to make a long-term commitment -- they could leave their furniture in storage until they figured out where they wanted to live long term.

But what was a temporary move became a way of life. Over the past two years, they've lived in five different Showhomes -- ranging from $900,000 to $1.3 million in value -- all in the San Diego area. The amenities have included everything from tennis courts to pools.

"It's a way to live in a really inexpensive way," said Matt Kelton, chief operating officer of Showhomes, which has 58 franchises in 18 states.

But it's not all a walk in the park. Showhomes has a number of restrictions for home managers.

"You can't be a smoker, you can't have a bunch of pets, no religious items -- things that can deter [a buyer] one way or another," added Kelton.

Personal items like family photos, sports teams and political paraphernalia are also prohibited. And then there's the prospective buyers who could be surveying their home at a moment's notice.

"We give up certain parts of our lives [for] the reduced rent," said Calvenn.

They also have to move every time a place sells, with just about a month's notice, and maintain a spotless home in the meantime.

"You have to keep it clean and model home-ish," said Crystena Starre, a stay-at-home mom to her three kids. "We got to teach the kids, 'We need to put things away.'"

For homeowners, Showhomes is piece of mind that costs just .5% to 1.25% of the list price (this can vary and decreases the longer a home stays on the market).

Radiologist Bernie Schupbach first worked with Showhomes in Fox Valley, Ill., when he put his home on the market six years ago.

"I was living probably 20 miles away, and it was hard to get down to check on it," explained Schupbach. "There was always ongoing concern of a water pipe breaking or animal infestation or vandalism in the interim between visits."

Schupbach didn't have to worry about finding and vetting renters -- or about the state of his home before it sold.

"We only communicated with [the home managers] if there was a problem," said Schupbach.

Related: Facebook launched my startup

Schupbach's home was on the market for several years during the recession. It ultimately sold for around $500,000, and he had such a good experience that he employed Showhomes to stage his new home for buyers (which is the other half of the company's business).

And while Kelton says one man was a home manager for 15 years, moving from home to home, the majority do it for a much shorter period of time because of the "nomadic lifestyle" it requires.

As for the Starres, the wealth of knowledge they've acquired from living in different San Diego neighborhoods has helped them narrow down where they want to put down roots. They soon plan to purchase their own home.

First Published: August 11, 2014: 10:10 AM ET

23.10 | 0 komentar | Read More

Corporate America's 'report cards' are strong

Second quarter earnings and sales have been better than expected.

NEW YORK (CNNMoney)

The quarterly "report cards" from Corporate America are honor roll quality.

About 90% of the companies in the S&P 500 have reported earnings so far for the second quarter. Nearly three quarters of them were better than expected. That's a very high percentage, and it's being driven largely by performance.

In the end, earnings are expected to be up 9.9% over last year, according to S&P Capital IQ, which compiles estimates from Wall Street analysts.

That would represent a significant improvement over the first quarter, when earnings rose just 3.4%. The "polar vortex" weather put a damper on economic activity, and therefore corporate profits, in the first three months of the year.

Some of the biggest surprises in the second quarter were in the health care industry. Tenet Health Care (THC), Gilead Sciences (GILD), Hospira (HSP)and Biogen Idec (BIIB) were among the standouts in terms of earnings. Certain telecommunications companies, such as AT&T (T, Tech30), had less spectacular results.

It's been 1,043 days since the last stock market correction

The better-than-expected batch of earnings is also remarkable because analysts did not drastically lower their forecasts in the run up to earnings season.

"It's not as if the bar was extremely low," said Art Hogan, chief market strategist at Wunderlich Securities.

Back in January, analysts expected earnings to increase 10.3% in the second quarter. That forecast was lowered to 6.6% by July, but was still relatively optimistic compared with past quarters.

However, the real surprise has been at the "top line" of companies' balance sheets.

Among the companies that have reported so far, 64% had sales figures that exceeded analysts' expectations. That percentage is well above the average of 55% over the past four years, according to FactSet.

Sales aren't exploding per se, but revenue is expected to have increased 4.9% in the second quarter, up from 3.9% in the first quarter.

Companies have been struggling with tepid revenue growth in the years since the Great Recession. Many have resorted to cost cutting in order to maintain profitability. Now, the hope is that earnings will be supported by actual sales growth.

Related: The 'Disney economy' is back

"It's been an exceptionally strong earnings season from a growth -- revenue as well -- standpoint," Dan Greenhaus, chief market strategist at BTIG, wrote in a note to clients. That's "ironic given how poorly stocks have traded of late," he added.

The Dow Jones industrial average has tumbled more than 3% in recent weeks since hitting its most recent all-time high on July 16. The Dow rebounded on Friday and is up on Monday, but investors have clearly been rattled by intensifying conflicts in Iraq and Israel, as well as a showdown between Russia and the West over Ukraine.

Related: How to stay safe in a scary market

But the outlook for U.S. stocks is still bullish, according to Bob Browne, chief investment officer for Northern Trust. He expects earnings to grow at least 8% over the next 12 months, which should help support stock prices going forward.

In addition, he said stocks are trading at "reasonable valuations" and should continue to benefit from the Federal Reserve's low interest rate policy.

The S&P 500 currently trades at 15 times next year's earnings estimates, which is in-line with the long-term average. In other words, stocks aren't cheap, but they're not expensive either.

At the same time, the Fed is not expected to hike interest rates until the middle of next year, though some investors belive it could happen sooner. The central bank's stimulus policies have been a big driver of the five year-old bull market in stocks.

First Published: August 11, 2014: 11:53 AM ET

23.10 | 0 komentar | Read More