Hack the Hood: Preparing low-income youth for tech jobs

NEW YORK (CNNMoney)

"My parents fought on the side of the United States during the Vietnam War, so they were imprisoned for eight years," Ho said. "I'm a product of two refugees who were prisoners of war that endured a lot of hardships to get me here."

But chasing the American dream wasn't easy.

"I grew up in a pretty bad neighborhood in deep east Oakland," he said. "During that time when we were living there in apartments, my mom was robbed with a gun to her head."

Ho turned to video games as an escape, and he taught himself how to write computer code in sixth grade. The youngest of six children, he watched his siblings struggle with low-paying jobs.

"All my brothers work two jobs, and all my sisters work all day from 9 to 7 at a nail salon," he said. "And I felt like that life isn't for me."

Related: 6 things you need to know about STEM

In high school, Ho was pressured to join a gang. But he used coding as an outlet for staying out of trouble.

"Growing up in East Oakland where there's gangs and drugs, it's hard to remove yourself totally from it," he said. "I didn't gang bang because I knew my parents brought me here for a reason. And that reason was to get an education and be a better person in life."

At 21, Ho is on that path. After taking classes at a community college, he joined Hack the Hood, a small nonprofit that teaches low-income youth ages 15 to 21 how to build websites for small businesses.

"We work with youth of color, folks who have historically been left out of the technological conversation," said Zakiya Harris, Hack the Hood's chief education officer. "What we're doing is allowing them to see how they can utilize technology as a tool and even build it as a career."

"When I first came to Hack the Hood, I was just lost," Ho said. "I didn't know what to do with life. I had the skills to code, but I didn't have an outlet to actually put my work out there."

Related: Ex-con launches startup aimed at inmates

During a six-week program, Ho designed several websites for small businesses, including one for Woody's Cafe and Laundromat, a family-run business that has been in Oakland for 25 years.

"The whole process was very seamless," said Vincent Lau of Woody's Cafe. "All we needed to do was hop on a phone call with Nhat for 5 or 10 minutes, and in about a week or so we had this amazing website."

By helping small businesses gain visibility online, Ho and other participants are building portfolios that could lead to future jobs in tech.

"They're really seeing how this can lend itself to a career without necessarily going to college," Harris said. "These are low-hanging fruit skills in technology that they can actually start using now and earning money."

The program also pairs youth with mentors in the tech industry.

"We get a lot of folks who work in Silicon Valley and who are working in tech to really pay it forward and give back by working with our young people," Harris said.

Since the organization started last summer, it's trained 45 youth to build more than 150 websites for small businesses. And it has already gained the attention of some tech giants.

Related: Why Atlanta is ripe for innovation

In June, Google awarded Hack the Hood a $500,000 grant after it placed in the top four of the Google Impact Challenge—a contest that gave $5 million to non-profits with innovative ideas to make the San Francisco Bay area stronger.

"Over the next two years, our goal is to train over 5,000 young people and build over 10,000 websites for local small businesses," Harris said.

The program has already made an impact on young people like Ho.

He enrolled at UC Davis this fall to study computer science. And he's the first in his family to go to college.

"When I graduate I'm planning on maybe starting a start-up company," he said. "My first real investment is gonna be buying my parents a house. And I feel like that's gonna make them really proud."

First Published: September 29, 2014: 9:20 AM ET

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Can states solve the immigration crisis?

NEW YORK (CNNMoney)

That's the message Greg Bialecki hopes will be conveyed through the launch of the Global Entrepreneur in Residence program this fall.

Bialecki, the Massachusetts secretary of housing and economic development, helped implement the three-year pilot program. It's designed to keep talented entrepreneurs, their innovative ideas, and the jobs they're bound to create in the country -- and in the state -- post-degree.

The H-1B is the most popular visa for highly-skilled foreigners and has an annual quota of 85,000. But those who are sponsored by a nonprofit research institution are exempt from this cap.

By partnering with universities, the GEIR program can use that provision to help foreign entrepreneurs with viable startups stay in the U.S.

The Massachusetts Technology Collaborative will work with universities to vet applicants; the universities will sponsor them. In return, participants must put in a minimum of eight to ten hours of work a week at the sponsoring university -- the rest of their time is spent working on their startup. (There are not currently any guidelines about the amount of hours one must work in order to qualify for a university-sponsored visa).

Related: 6 things you need to know about STEM

"The current system, where our top academic institutions train the best and brightest around the world and then they're told we don't want them to stay, is absolutely insane," said Jeff Bussgang, a Harvard Business School lecturer who conceptualized the GEIR program.

Foreign students are already drawn to Massachusetts universities in near record numbers, according to a recent report from Brookings and JPMorgan Chase.

"The idea that students would be capable of starting a company, or growing a company, was not just an idea or a hypothetical," said Bialecki. "Massachusetts is a state where people see many tangible examples about how immigrants are fueling our economy and creating jobs."

Related: I created 7 jobs and the U.S. tried to deport me

The GEIR program was part of the 2014 Economic Development Bill that passed in early August (it will receive $3 million from the state). Though the program hasn't yet opened to the public (they expect to do so this fall), it has several "pre-launch" enrollees who they're already working with, like Vivek Gupta.

Originally from Calcutta, India, Gupta graduated from Harvard Business School this year.

Fate would have it that one of his professors was Bussgang, the driving force behind the GEIR program and a general partner at VC firm Flybridge Capital Partners.

Gupta's startup WealthVine was originally conceived in Bussgang's course and is slated to launch in the next two months.

The University of Massachusetts in Boston is sponsoring Gupta's visa; he's currently back in India awaiting for it to be approved. Then, he'll return to the U.S. and work at the university's Venture Development Center as an "entrepreneur in residence," meaning he'll advise other founders to fulfill his quota of work hours.

"Without this program, I would not have been able to stay in the US and launch my startup," said Gupta, 29.

Related: U .S. losing tech talent to Canada

His startup is a technology platform designed to help accredited investors invest in hedge funds and private equity funds. Leaving the country would have had a "severe negative impact on the viability of my startup," he said.

Gupta is one of several of Bussgang's students who will be in this first cohort of the program (they've yet to disclose numbers of enrollees but estimate it'll be a group of ten entrepreneurs at launch).

If the program is a success and if immigration reform remains stalled, other states could soon follow Massachusetts' lead in combating the brain drain.

"If there's no reform anytime soon, I think there's going to be more and more of these [types of programs] in other states," said immigration lawyer Jacob J. Sapochnick. "There's nothing circumventing the rules -- what's interesting is how creative it is. Universities have an interest to support it."

First Published: September 29, 2014: 9:07 AM ET

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Why everybody is moving to Texas

In towns like Austin, there's lots of new Texans moving in from more expensive markets.

NEW YORK (CNNMoney)

Jobs is the No. 1 reason for population moves, with affordable housing a close second.

"It take two things to draw people inland in big numbers: jobs and housing affordability," said Nela Richardson, chief economist for the real estate broker Redfin.

Texas and other heartland states have two advantages that translate into affordable housing: Plenty of cheap land around cities and easy regulations that enable developers to build quickly.

Related: Best cities for Millennial buyers

Nine of the top 10 fastest growing U.S. metro areas last year were ones where homes were more affordable than the U.S. average, according to Redfin. Many were in Texas, Oklahoma, Utah and other heartland states.

Five Texas cities -- Austin, Houston, San Antonio, Dallas and Fort Worth -- were among the top 20 fastest growing large metro areas.

Some smaller Texas metro areas grew even faster. In oil-rich Odessa, the population grew 3.3% and nearby Midland recorded a 3% gain.

Jobs was the main driver in Austin, where population rose by 2.6% between 2012 and 2013. That's nearly four times faster growth than the United States as a whole.

Jobs are plentiful in Austin, where the unemployment rate is just 4.6%. Moody's Analytics projects job growth to average 4% a year through 2015.

Just as important, many jobs there are well paid: The median income of more than $75,000 is nearly 20% higher than the national median. The median home price is $243,000, higher than the U.S. norm, but a price level that income can support.

Related: Mansions for under $1 million

During the boom years, population actually grew faster in high-priced markets like New York and San Francisco.

Rapid price gains made buyers less concerned about overpaying for homes. Plus, they had banks lining up to lend them money.

Once rapid home price jumps were taken out of the equation, affordable housing markets with strong economies became even more attractive to people looking to relocate.

First Published: September 29, 2014: 8:20 AM ET

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Hospitals ask patients to pay upfront

NEW YORK (CNNMoney)

Hospitals are increasingly asking patients to pay for procedures either upfront or before they are discharged. That's because Americans are shouldering a greater portion of their health care bills, and medical centers don't want to get stuck with patients that can't pay.

Traditionally, neither patients nor providers knew the exact price of procedures until after the insurer processed the charges. Now, however, new technology is allowing hospitals to determine the patient's responsibility in advance of treatment.

Starting the cost conversation early is especially important now because patients are facing higher deductibles and larger payments for services. Some are surprised to find out that they have to fork over thousands of dollars before their insurance even kicks in, hospital administrators said.

The policies available on the Obamacare exchanges are hastening this trend. Many enrollees are opting for the bronze and silver plans, which often carry deductibles upwards of $5,000 and $2,000, respectively.

"The bronze plans are scaring a lot of administrators because the patient liability is so large," said Debra Lowe, administrative director of revenue cycle at Ohio State University's Wexner Medical Center. "Patients are unaware they have this high deductible."

Related: Obamacare: Is a $2,000 deductible 'affordable?'

Upfront payments aren't usually required, but more hospitals are asking patients to settle the bill in advance. If patients can't afford the charges, some hospitals place them into financial assistance programs, such as payment plans or low-interest loans. Others help them sign up for Medicaid or individual coverage on the Obamacare exchanges. Patients can still opt to wait until after the bill goes through their insurance.

"We are trying to minimize the after-service bill shock and get them into financial assistance or some other program for more affordable care," said Andy Scianimanico, vice president for revenue cycle at Northwestern Memorial HealthCare, the parent company of Chicago's largest hospital.

Related: 5 ways you pay more for health insurance

Northwestern started upfront financial counseling with patients in 2011 and has now expanded it to four departments, including surgery and imaging. It plans to implement it in all areas of the four-hospital network over the next two years.

Soaring deductibles have prompted hospitals to be more aggressive about collecting in advance. The average deductible for an individual employer-sponsored policy has soared to $1,217, up 47% from five years ago, according to the 2014 Kaiser Family Foundation/Health Research & Educational Trust report. For family policies, deductibles have soared 31% to $1,947.

Deductibles of $5,000 are the most common amount seen at Wexner Medical Center, said Lowe. It started requesting upfront payments in July and hopes to collect 75% of the charges ahead of time.

'Settling the bill upfront also helps improve hospitals' profitability, said David E. Williams, president of Health Business Group, a consulting firm for the healthcare industry. Providers are at least twice as likely to receive payment if they ask for it in advance. Also, chasing after patients who haven't paid their bills is very costly.

Hospitals provided $46 billion in uncompensated care in 2012, or 6.1% of their total expenses, according to the American Hospital Association.

First Published: September 29, 2014: 8:40 AM ET

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Comcast vows: We'll fix our customer service

NEW YORK (CNNMoney)

But it might be awhile before people notice a change.

A Comcast executive wrote on a company blog that it will take years before it can "honestly say that a great customer experience is something we're known for."

Neil Smit, CEO of the cable unit of Comcast Corp. (CMCSA), named a new senior vice president of customer experience, reporting directly to him. He vowed to put customers "at the center of every decision we make."

Comcast has among the worst customer service rankings in the nation, according to the American Customer Satisfaction Index, topping only Time Warner Cable (TWC), a rival it is in the process of purchasing.

Videos by Comcast customers complaining about infuriating or even abusive customer service have forced public apologies from the company.

In one of the most famous complaints, former customer Ryan Block dealt with a belligerent Comcast representative in an eight-minute phone call. The rep refused to cancel Block's service despite his repeated requests to do so.

In a more passive aggressive case, Aaron Spain recorded how he was left on hold for 3 hours and 25 minutes trying to cancel his service, only to discover the office that handled cancellations closed while he was on hold.

And the Chicago Tribune reported the case of a customer who tried to cancel a Comcast home security package after four different thermostats installed by the company malfunctioned.

When he canceled, he was hit with a $1,000 early termination fee. When he refused to pay it, his credit score was trashed. Only after the Tribune became involved did Comcast resolve his case.

First Published: September 29, 2014: 9:30 AM ET

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Behind Bugaboo, the 'it' stroller for the 1%

NEW YORK (CNNMoney)

Bugaboo strollers catapulted to success in the early 2000s and became a must-have for expecting celebrities and soccer moms alike, despite their steep price, with models retailing for between $600 and $1,200.

The funny thing is, Max Barenbrug, the founder and creator of Bugaboo, wasn't even thinking about moms when he came up with the idea in 1994. In fact, he first designed the stroller for men. He didn't even create it with children in mind, really.

At the time, he was a design student in Amsterdam, trying to come up with an idea for his graduation project. From the window of his apartment, he saw parents struggling with clunky strollers decorated with teddy bear prints and "stupid colors."

Bugaboo founder Max Barenbrug came up for the concept of a highly-functional recreational stroller as a design student.

So he set off to create a stroller that had nothing to do with being cute or cool. For him, it was all about mobility and function. No nonsense.

He made his first model with the idea that men could use it for all types of recreation -- transitioning from the beach to the street, up stairs and into cars all with ease. The only problem was no manufacturer wanted to take it on.

This is Barenbrug's original design for a Bugaboo meant for men.

To convince them, Barenbrug redesigned the stroller several times to make the it more marketable, a bit flashier and up to safety standards. When it came to finding a name, he flipped through the dictionary for inspiration. He looked up the word 'buggy,' but his eyes caught the 'bugaboo' nearby. He was so taken by the word that he didn't care that its meaning -- an object of fear -- is decidedly not child-or-marketing-professional-friendly.

When Bugaboo finally launched in 1999 in Holland, it was an immediate hit -- new parents in every neighborhood in Holland, even the royal family, were either pushing a Bugaboo or wanted to be pushing one, he said.

The tipping point

But what really launched the stroller intended for men was an American TV show about women having sex.

Bugaboo was in the midst of making plans to bring the strollers to the U.S. market when "Sex and the City" approached the brand about using one of its strollers in the show. It was lightning in a bottle for the brand: An episode with Miranda toting her son around town aired, and overnight, every American mother had to have one. It turns out that the show, credited for making the very pricey, very glamorous shoemaker Manolo Blahnik a household name, did the same for a decidedly unglamorous item that most parents only viewed as a necessity, not a stylish accessory.

"By accident, we went into the U.S. earlier, but the show opened a lot of doors for us globally," said Madeleen Klaasen, Bugaboo's chief marketing officer, who has been with the company for more than a decade.

Gwyneth Paltrow taking her daugthee out for a walk pushing a Bugaboo in London.

Since then, celebrities have flocked to the brand, with everyone from Duchess Kate to Gwyneth Paltrow buying one. Barenbrug once received a call years ago that Madonna had come into its Los Angeles store, eager to take one home.

The bang for your buck

So the strollers became something to covet -- an item that made parents, who were maybe sleep-deprived, feel trendy and in-the-know and luxurious, even if they had spit-up cereal stuck to their sweaters.

But stores started to see them flying off shelves for another reason: the quality of the aluminum and the fabrics used held up better.

Sure, you can get a stroller for half the price. But according to Eli Gurock, who owns the baby gear haven Magic Beans in Boston, parents pay a premium for products that work well and last a long time.

"For a lesser-quality product, when it breaks, it's broken for good and goes in the garbage," he said. "The thing about Bugaboo is it's not a ripoff."

The staying power

Collaborations with different designers, from a brightly-colored Missoni pattern to Andy Warhol's famed pop art flower prints to a sleek black Marc Jacobs versions, have also been a draw.

At the same time, Bugaboo has consistently updated existing models and created new ones to meet customer needs, like a double stroller and a just-released model meant specifically for runners.

The Andy Warhol + Bugaboo Donkey double stroller that Zanna Rassi Roberts uses.

Zanna Rassi Roberts, senior fashion editor at Marie Claire, stylist and fashion correspondent for "E! News" and "The Today Show," strolls her twin daughters around in a Warhol print double stroller. She said it's like pushing them around in a piece of art.

"I have to be in a sociable mood when I pop them in [the stroller], as everyone stops to firstly look at the stroller, and then at the twins," she said.

"We make this product as good as we can with as good of a value as possible, but at the same time, you know you're special, you know you're part of something if you have one," Barenbrug said. "It's exclusive without exclusivity."

First Published: September 29, 2014: 9:09 AM ET

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Americans are spending again

NEW YORK (CNNMoney)

Purchases of durable goods such as furniture and cell phones increased almost 2% in August over the prior month. That's a healthy uptick after mere gains of 0.1% in July, according to data released today by the Bureau of Economic Analysis, a branch of the Commerce Department.

So what drove the "August rush" in spending? The biggest factor was auto sales -- everything from cars to parts -- which accounted for half the gains.

People typically don't make large purchases like cars unless they feel confident in the economy and their personal finances.

Related: Ford recalls 850,000 cars for air bag flaw

America's economy is built largely on people spending for various goods and services. Some economists see buyers as a critical indicator of the economy's health since they make up the majority of the country's gross domestic product (GDP).

After the financial crisis in 2008 and the recession, people cut back heavily on their purchases. As more people are finding jobs, including full-time jobs, that should translate into more spending. Incomes have been ticking up every month this year.

Overall consumer spending rose 0.5% in August, one of the strongest gains of 2014. It's a positive sign, especially after spending flattened in July.

"You can't sustain strong economic growth without the consumer leading the way," said Sal Guatieri, senior economist at BMO Capital Markets in Toronto.

First Published: September 29, 2014: 10:40 AM ET

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Hong Kong protests hurt U.S. stocks

NEW YORK (CNNMoney)

Stocks dropped in morning trading Monday after worries about pro-democracy protests in Hong Kong spilled over to the U.S., Asian and European stock markets.

The Dow dropped about 160 points in early trading before pulling back to around 75 points lower. The S&P 500 and Nasdaq are also lower. At one point the Nasdaq fell nearly 1% before it also settled down. Energy stocks took the biggest beating.

Related: 3 lessons investors can learn from Derek Jeter

According to Art Hogan, Chief Market Strategist for Wunderlich Securities, there are some questions over whether the protests in Hong Kong could spread to mainland China.

The Dow lost over 150 points Monday before rebounding silghtly.

"We're watching in real time protests picking up momentum," he said. "Whatever transpires from this, could that slow the Chinese economy spread even more than we're worried about it slowing down?"

It's not clear if everyone feels that way. While Hong Kong's Hang Seng index fell 1.9% Monday, Shanghai's SE Composite Index edged up.

Beyond China, Hogan feels investors are still nervous about Europe's economy taking a further hit from the West's sanctions against Russia over its actions in Ukraine.

Those issues are for now trumping any optimism about the U.S. economy, Hogan claimed.

Monday's losses come on the heels of a rough week for the stock market. The S&P 500 and Nasdaq indexes are both down over around 1.5% for the month of September, which is often known as a tough one for stocks.

Still, many investors aren't buying the notion that the market is overvalued. Goldman Sachs put out a report Monday that noted that return on equity (ROE), a closely watched metric of corporate profits, is at its highest level in eight quarters. The bank said the market's current valuation is therefore justified since big businesses are healthy.

Regardless of how you view the markets right now, one thing is certain: volatility is back.

After multiple big swings up and down last week, CNNMoney's Fear and Greed Index is sitting squarely in "Extreme Fear" mode.

First Published: September 29, 2014: 11:03 AM ET

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New owner for Shrek and DreamWorks Animation?

NEW YORK (CNNMoney)

Shares of DreamWorks Animation (DWA) surged nearly 20% Monday following a report that Japan's SoftBank (SFTBY) may want to buy the studio behind the "Shrek," "Madagsacar," "Kung Fu Panda" and "How to Train Your Dragon" movie franchises. The story was first published by The Hollywood Reporter over the weekend.

Spokespeople for DreamWorks Animation and SoftBank were not immediately available for comment about the report.

DreamWorks Animation, founded by Jeffrey Katzenberg, Steven Spielberg and David Geffen, has been a nightmare of a stock this year. Prior to Monday's big pop, shares were down nearly 40%.

The company has lost money in its past two quarters due to some recent duds at the box office and weak DVD sales .

Related: Why Hollywood's dismal summer won't matter

The studio's "Mr. Peabody and Sherman" -- based on characters from the early 1960s cartoon cult classic "The Bullwinkle Show" -- was a major flop this spring. (Investors probably wish DreamWorks could use Mr. Peabody's WABAC machine to go back in time and decide not to do this movie.) "Turbo", about a racing snail, also flopped in the summer of 2013.

Although "How to Train Your Dragon 2" was a big critical success and has done well overseas, some investors are disappointed by the fact that the film's box office in the U.S. was lower than the first film's take in 2010.

DreamWorks Animation, which is run separately from the DreamWorks live action studio, has struggled to impress investors since it went public nearly 10 years ago. It hit an all-time high of near $45 in early 2010, but the stock now trades slightly below its initial public offering price of $28. Even with the big pop on Monday, the stock is down 26% in 2014.

The movie business is notoriously difficult. Disney (DIS), which acquired DreamWorks Animation rival Pixar in 2006, has been far more successful at the box office over the long haul than DreamWorks Animation. And other major media companies have been busy building out their animation studios as well.

"The LEGO Movie," released by Warner. Bros., is the third-highest grossing film this year. (Warner Bros. is owned by CNNMoney parent company Time Warner (TWX).) Universal, owned by Comcast (CMCSA), had one of the biggest hits of 2013 with "Despicable Me 2."

So it makes sense that DreramWorks Animation might be vulnerable to a takeover. It doesn't have the same financial firepower behind it.

Enter SoftBank. The tech conglomerate is trying to become a major player in media, telecom and the Internet across the globe. SoftBank owns a more than 30% stake in Alibaba (BABA, Tech30), the Chinese e-commerce giant that went public earlier this month, and it's also the controlling investor in U.S. wireless company Sprint (S).

Related: Alibaba strikes deal to stream "Mad Men"

But why would DreamWorks Animation be a good fit for SoftBank? The purchase of a movie business would inevitably bring up comparisons to how Sony has struggled with its film studio lately.

The deal might make a lot of sense for DreamWorks though. The company would no longer have to face the ire of shareholders every quarter. There won't be as much pressure on the studio to have every film be a big hit. Katzenberg, who is DreamWorks Animation's CEO, may also prefer to have the company remain semi-independent as opposed to becoming a small part of a much larger media empire.

And make no mistake. This deal will live or die with Katzenberg since he owns 100% of DreamWorks Animation's class B shares that hold most of the voting power at the company.

So ultimately it will come down to price. Disney bought Pixar for $7.4 billion. There is no way that DreamWorks, which currently has a market value of $1.9 billion, will fetch that much.

According to The Hollywood Reporter story, SoftBank was looking to pay $3.4 billion. Would Katzenberg hold out for something closer to $4 billion? That's the price Disney paid for both Marvel and Lucasfilm.

Still, $3.4 billion is much more than what DreamWorks Animation was worth on Friday before SoftBank came into the picture ... and DreamWorks Animation may not deserve a much higher premium because of its inconsistent track record.

Let's be honest. Shrek and Donkey may be hilarious. But they are no Iron Man or Luke Skywalker.

First Published: September 29, 2014: 11:41 AM ET

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27 new billionaires in richest Americans list

What's App founder Jan Koum is one of the newcomers to Forbes' richest Americans list.

NEW YORK (CNNMoney)

On average, the people on Forbes' American billionaire list released Monday have a net worth of $5.7 billion, up from $5 billion last year. Their wealth is so staggering that the magazine had to raise its "price of admission" by $25 million to $1.55 billion.

Topping the list are the familiar names of Bill Gates and Warren Buffett. But some of the biggest gains went to people who made their fortunes in Silicon Valley.

Mark Zuckerberg is now $19 billion richer than last year. The 30-year-old CEO of Facebook (FB, Tech30)is worth $34 billion.

Among the 27 new billionaires are tech entrepreneurs Jan Koum, who sold his messaging service What's App to Facebook for $19 billion in February, and Travis Kalanick, the CEO of on-demand car service Uber.

Nicholas Woodman, the founder of wearable camera maker GoPro (GPRO), saw his wealth triple to $3.9 billion after his company went public in June.

Elizabeth Holmes was one of 47 women on the list with $4.5 billion. Her company, Theranos, is developing a new blood test technology in Palo Alto. It's her first year on the list.

Related: Billionaires are hoarding more cash

Gates is the richest man in the country for the 21st year in a row. He stepped down as Microsoft's (MSFT, Tech30) chairman earlier this year, but his wealth has increased by $9 billion to $81 billion.

Legendary investor Warren Buffett is $8.5 billion richer than he was last year. The chairman of Berkshire Hathaway (BRKA) is worth $67 billion.

Larry Ellison will have more free time to spend his billions now that he has relinquished his CEO title at Oracle (ORCL, Tech30). As the third richest man in America, he is worth $50 billion.

Charles and David Koch, the politically active billionaire brothers, tied for fourth place.

Members of the Walton family, heirs to the Wal-Mart (WMT)fortune, took four of the top 10 spots. Michael Bloomberg, the former New York City mayor and media mogul, is the eighth richest man in America.

Related: Being a super rich family's concierge

The richest 400 people in America had their fortunes increase by a total of $270 billion in 2014 to a record $2.29 trillion in combined wealth, according to Forbes.

To put that into perspective, it would take the average worker earning the minimum wage of $7.25 an hour nearly 18 million years to make $270 billion.

Much of the increase in fortunes this year was related to the "strength of the U.S. stock market."

Forbes also introduced this year a new "self-made score" to distinguish between those who inherited their wealth from those who earned it the old fashioned way.

According to the new ranking, there was a big increase in the number of self-made billionaires. In 2014, more than two-thirds of the people on the list made their own fortunes. By contrast, more than half were born into wealth just 20 years ago.

First Published: September 29, 2014: 11:48 AM ET

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7 safety tips from hackers

NEW YORK (CNNMoney)

Follow this advice from actual hackers, and you'll be a lot safer online.

Turn off your phone's Wi-Fi and Bluetooth. Hackers are religious about this. Keeping these features "on" all the time makes it easy for strangers to slip into your phone.

The problem? If you keep Wi-Fi and Bluetooth active, hackers can see what networks you've connected to before, spoof them and trick your phone into connecting to Wi-Fi and Bluetooth devices that hackers carry around.

Once connected to your phone, hackers can bombard your device with malware, steal data or spy on you. And you won't even notice.

So, turn on Wi-Fi and Bluetooth when you need them. Turn them off when you don't.

Use two-step authentication. Nowadays, a single password isn't enough. They get exposed all the time.

Lots of email and social media services offer an extra later of protection: two-step authentication -- essentially a second, temporary password.

For example, when you set this up with Google, (GOOG) Twitter (TWTR, Tech30) and LinkedIn, (LNKD, Tech30) they ask you for a secret code every time you log in from a new device. You immediately get a text message with a six-digit number.

It's an effective way to keep out hackers. Even if someone gets your password, they'd still need your phone too -- an unlikely scenario.

Create a smart password strategy. For the select few websites with your most sensitive information (email, bank), create some long and unique passphrases, like +hisPl@tinumDr@gonBreathesF1re.

For everything else? Use a password manager. This type of program stores all your passwords online, so you can make each one different, and you won't have to remember them all.

But only use a password manager that encrypts them on your device. LastPass and Password Safe do this.

(Why not use a password manager for everything? One master password unlocks them all. You create a single point of failure.)

Change all of your passwords more than once a year.

Related: Hackers show ways to protect your iPhone

Use HTTPS on every website. Install the HTTPS Everywhere tool developed by the pro-privacy Electronic Frontier Foundation. It encrypts all the information your browser is sending between your computer and websites.

If you only see HTTP in the address bar, anyone can spy on your Internet session.

Bulk up your home Wi-Fi. Setting up Wi-Fi at home is a tour through the circles of hell. But these two steps are important.

First, set up a password. Don't keep the default password on the sticker.

Next, the machine will ask what type of security encryption standard you'd like. Choose WPA-2.

Lots of machines default to WEP (Wired Equivalent Privacy) or WPA (Wireless Protected Access). Avoid them at all costs. A known Wi-Fi flaw can give up your password in seconds.

Don't hide your home Wi-Fi. Your home router asks: "Hide the SSID?" If you say yes, then your devices are forced to "actively scan" for the home network you're trying to hide. Sure, they'll connect. But as a result, your device "actively scans" for networks all the time.

Your laptop and phone are more susceptible to connecting to strangers' unsafe Wi-Fi networks.

"You're actually setting yourself back five years in terms of security," said Ben Smith, an experienced Wi-Fi hacker who's worked on secretive government projects.

Think twice before buying an Internet-connected device. Do you really need a "smart" fridge or oven?

Companies are still figuring out the kinks -- especially the tiny ones raising money on crowdfunding websites like Kickstarter and Indiegogo, according to Duo Security researcher Mark Stanislav.

Tech companies are in a rush to slap the Internet on everything. Cool features get all the attention. Privacy and safety don't.

As a case in point, a foul-mouthed hacker hijacked a baby's monitor last year.

"You might be getting told things are secure, when they're not," said Stanislav, who hacks devices for research.

Related: 7 craziest things connected to the Internet

Related: How safe are you? A custom CNNMoney Flipboard magazine

First Published: September 22, 2014: 9:46 AM ET

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Alaska reporter: "F*** it, I quit"

NEW YORK (CNNMoney)

While doing a news segment on the Alaska Cannabis Club, a medical marijuana organization in Alaska, reporter Charlo Green made a grand exit from her position at CBS affiliate KTVA in Alaska (caution: the video is NSFW).

Green revealed that she actually owns the marijuana club she was reporting on, and then quit her TV gig with some choice words live on air.

"Now everything you've heard is why I, the owner of the Alaska Cannabis Club, will be dedicating all of my energy toward fighting for freedom and fairness, which begins with legalizing marijuana here in Alaska," Green said on air. "And as for this job, well, not that I have a choice but, f*** it, I quit."

Related: Why it's risky to invest in pot stocks

The fact that Green was so closely tied to an issue she was reporting on is a conflict of interest that would have forced her to step down, even if she hadn't made a vulgar statement.

The ex-reporter told the Alaska Dispatch News that her dramatic exit was her attempt to bring attention to the issue of marijuana legalization, and apologized for offending anyone.

Not long after the on-air incident, Green created an Indiegogo campaign to raise funding ahead of the state's November 4 vote on legalizing recreational marijuana.

"As a member of the media, I've seen the dirty campaign tricks and lies that prohibitionists have been using over the past several months to sway Alaskan voters firsthand," she wrote in a statement on the funding site.

Green also posted a YouTube video explaining her position.

Meanwhile, after Charlo's on-air outburst, KTVA apologized profusely, on air and off.

"We sincerely apologize for the inappropriate language used by a KTVA reporter during her live presentation on the air tonight," KTVA-11's news director Bert Rudman wrote on the station's Facebook page. "The employee has been terminated."

Related: Colorado's missing marijuana taxes

First Published: September 22, 2014: 11:08 AM ET

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German giants spend $25 billion to buy U.S. rivals

LONDON (CNNMoney)

Two German firms snapped up U.S. competitors for $25 billion before the opening bell Monday, looking beyond record stock prices and a stronger dollar to acquire advanced technology in booming sectors.

In the bigger of the two takeovers, German drug group Merck KGaA (MKGAF) will buy Sigma-Aldrich (SIAL), based in St Louis, Missouri, for about $17 billion in cash. Merck is offering Sigma shareholders a 37% premium to Friday's closing price.

Merck described the deal as a "quantum leap" that would create a life sciences business better able to compete in the market for research, drugs and biotechnology.

Aging populations in the rich world and rising disposable incomes in many emerging markets are boosting demand for health care, even as many governments demand lower costs, driving a surge in corporate activity.

There were 33 mergers and acquisitions in the sector in the second quarter -- worth $14.5 billion -- according to PwC, up from 23 in the same period last year.

Energy is another hot sector.

Siemens (SIEGY) said Monday it was buying Dresser-Rand (DRC), of Houston, Texas, for $7.6 billion in cash, or $83 per share. Dresser-Rand closed Friday at $79.91, up more than 17% for the week.

Dresser-Rand is an oil services and power generation technology company. It will give Siemens greater exposure to the U.S. fracking boom.

Related: Burger King is latest in M&A frenzy

U.S. stocks hit new record highs last week, helped by a reassurance from the Federal Reserve that interest rates won't rise any time soon despite stronger growth that is boosting corporate profits.

The dollar has gained 8% against the euro, and 3.5% against the pound, since May -- making U.S. assets more expensive for European buyers.

But that isn't stopping executives eager to find stronger growth than Europe can offer.

There have been 397 European takeovers of U.S. companies, worth nearly $156 billion, so far this year. That's up from 339 deals worth $25.6 billion in the same period of 2013.

Of this year's deals, 55 were by German firms, up from 42 in 2013.

The figures include the Siemens/Dresser-Rand deal, but not the Merck/Sigma-Aldrich deal.

First Published: September 22, 2014: 9:08 AM ET

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Apple sells 10 million iPhone 6 and iPhone 6 Pluses

NEW YORK (CNNMoney)

Ten million to be exact. That beat last year's iPhone 5S opening weekend by 1 million sales.

The achievement is remarkable, considering that China wasn't a part of this year's opening weekend. Apple (AAPL, Tech30) sold 9 million iPhone 5C and iPhone 5S smartphones during the first three days of sales a year ago -- a weekend that included Chinese sales.

Demand for the new, larger iPhone 6 has been insatiable. Apple sold a record 4 million iPhone 6 and iPhone 6 Plus smartphones on Sept. 12, the first day that the new iPhones were available for pre-order. Pre-orders momentarily crashed Apple's website a week ago, and supply of the super-large iPhone 6 Plus quickly sold out.

Related: The iPhone 6 goes on sale and the lines are insane

For those who couldn't pre-order their phones, Apple made some supply of the devices available in stores on Sept. 19. Lines for the new iPhone snaked around city blocks, and many people camped out overnight.

Somewhat less successful than adoption of the iPhone 6 is Apple's new iOS 8 software. Just 30% of iPhone users have installed the new software, which became available on Sept. 17, according to Mixpanel, a mobile operating system tracker. A year ago, more than half of iPhone customers had downloaded iOS 7 just three days after the software became available.

Related: Apple says iOS 8 will shield your data from police

First Published: September 22, 2014: 8:57 AM ET

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Spoiler Alert: 1 in 5 Americans okay with spoilers

One in five Americans see no problem spoiling shows like "House of Cards."

NEW YORK (CNNMoney)

Thanks in part to Netflix and its on-demand style of programming, spoilers have become part of the cultural conversation in recent years, with debates about what defines a spoiler, how long people should wait before talking about them, and how people can avoid them.

President Obama even joked about it in a Twitter message back in February: "Tomorrow: @HouseOfCards. No spoilers, please."

And yet: some people cannot be blamed for spoiling the exploits of [spoiler] President Frank Underwood.

Most of the people who admitted to spoiling in the survey -- 66% -- are what Netflix calls "Clueless Spoilers," or people who casually ruin the surprise without thinking.

Importantly for television networks like HBO and streaming services like Netflix, the study found that almost everyone -- 94% of those surveyed -- would keep watching even after finding out about a crucial plot twist.

In fact, 13% of those surveyed said they'd be more interested in the show after hearing a big spoiler -- a version of old-fashioned word of mouth marketing.

Web sites like Facebook and Twitter are contributing to this phenomenon, providing a communal feel for TV, but also making it possible to hear about story lines and plot twists prematurely.

"The great thing about the internet is that everything can talk about everything, and the worst thing about the Internet is that everything has become a spoiler," wrote Entertainment Weekly's Darren Franich earlier this year.

Because of this, 76% of people told the Harris pollsters that spoilers are just a fact of life.

But that doesn't mean that there's nothing you can do to elude them. There is downloadable technology that "mutes" key phrases and words to block any possible spoilers on your social timelines.

And some sites have even come up with established rules to abide by: "Staying silent is always better than spoiling," Lifehacker's Eric Ravenscraft commented. "When in doubt, keep it to yourself."

First Published: September 22, 2014: 9:00 AM ET

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Activists plan to shut down NY stock exchange

NEW YORK (CNNMoney)

Scores of protesters had already gathered in lower Manhattan early Monday for an event dubbed #FloodWallStreet. They planned to march a few blocks north to Wall Street and stage a "sit-in" until forced to leave.

Their beef: the fossil fuels industry and other companies are profiting at the expense of the environment. The activists said they were willing to be arrested to drive home the link between global capitalism and worsening climate change.

"The climate crisis is fundamentally an issue of the economy," one activist told CNN. "Flood Wall Street is an attempt to bring the problem to the doorstep of the people who are fundamentally responsible for the crisis we find ourselves in now."

Organizers, who have not obtained permits, expect participants to be "arrested in droves." Blue-clad protesters plan to unfurl a 300-foot banner and will inflate a 15-foot "carbon bubble," according to a statement on the #FloodWallStreet website.

The New York Police Department said it would have "an adequate detail in place" to respond.

Monday's demonstration comes one day after tens of thousands of people took part in the People's Climate March in New York City, which organizers said was the largest demonstration of its kind ever.

Related: Hey Occupy Wall Street, abolish my debt too!

In addition to environmentalists, the marchers on Monday included labor activists and clergy, as well as celebrities and politicians.

U.N. Secretary General Ban Ki-moon walked with former U.S. Vice President Al Gore along the two-and-a-half mile route. Celebrity protesters included comedian Chris Rock, as well as actors Leonard DiCaprio and Mark Ruffalo.

Rallies were also held in London, Paris, Berlin, Tokyo and Bogota, Colombia.

Protesters are calling on world leaders to take more aggressive action to curb the emissions of greenhouse gasses.

Global leaders will gather Tuesday in New York for a United Nations summit on climate change. The UN is not expected to take any major steps, but officials are hoping to create momentum for a bigger commitment next year.

-- CNN's Alison Kosik contributed to this report.

First Published: September 22, 2014: 10:19 AM ET

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New chapter in Paula Deen's comeback

Paula Deen bought all her old shows from the Food Network. She'll gradually air them all, along with new shows, on her web site, the Paula Deen Network.

NEW YORK (CNNMoney)

They will be available along with her new cooking shows on The Paula Deen Network, which launches online Wednesday.

Deen, the media maven of Southern cuisine known for her catchphrase "hi y'all!," acquired the 440 shows in which she appeared on the Food Network, according to her spokesman. She plans to gradually air two "vintage" episodes per week for subscribers on her web site.

"So come on in and sit yourself down at the Paula Deen Network -- it's the heart of home cookin,' y'all," said Deen, in a press release.

The vintage shows include her first, "Paula's Home Cooking," with 12 seasons airing from 2002 to 2008, "Paula's Best Dishes," which had 14 seasons from 2008 to 2013, and "Paula's Party," with four seasons from 2006 to 2008.

There are also 11 specials, including "Paula's Southern Thanksgiving" and "Paula's European Vacations."

Related: Duck Commander launches line of shotguns

This is the latest chapter in Deen's comeback, after her corporate partners dropped her like a hot potato last year in the wake of a racism scandal.

Scripps Networks Interactive, the owner of the Food Network, allowed Deen's contract to run out after she admitted, during a lawsuit deposition, to having once used a racial slur. The judge threw out the racial discrimination lawsuit against her, but her corporate partners wanted nothing to do with her.

Wal-Mart (WMT), J.C. Penney (JCP), Sears (SHLD), Target (TGT), Home Depot (HD) and the shopping network QVC stopped carrying her branded cookware. Caesars stopped operating her restaurants at its casinos. Pork producer Smithfield Foods canceled her as a spokeswoman and stopped selling Deen-themed hams.

Novo Nordisk (NONOF), which makes a diabetes drug called Victoza, also severed its relationship after signing her on to be the face of its diabetes education campaign. Deen, who was mocked on Saturday Night Live for her love of butter, was eventually diagnosed with type 2 diabetes.

Deen, who has authored a trove of cookbooks, was slated to release a cookbook last year called "Paula Deen's New Testament." But the book got canceled by Ballantine Books of Random House, despite pre-orders surging 1,300%, pushing it to the top of Amazon's (AMZN, Tech30) bestseller list.

Related: Russian brewer buys Pabst Blue Ribbon

But Deen's popularity among her fans remained strong, and they continued to crowd her restaurants in Savannah, Ga., and buy her products. She also picked up a new investor, Phoenix-based Najafi Media, who helped her launch Paula Deen Ventures with an operating budget of $20 million.

With the help of Najafi Media, she opened a new restaurant and retail store featuring Southern-fried fare called Paula Deen's Family Kitchen early this year in Pigeon Forge, Tenn.

First Published: September 22, 2014: 10:59 AM ET

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Buying gold has never been this easy

Gold Brittania coins from the Royal Mint.

LONDON (CNNMoney)

The British Royal Mint on Monday launched an online bullion trading service in a bid to attract investors to the precious metal.

Gold, seen as a safe haven investment in times of turmoil, will now be as accessible to investors as a savings account, according to the Royal Mint.

The Royal Mint's website offers several kinds of coins which customers can buy within a few minutes. The flagship "Sovereign" is a 22-carat gold coin currently selling for just over $300.

The Royal Mint says it will offer gold at the "best possible prices," by selling coins at a moving spot rate based on live market rates.

Related: Generation Xers are poorer than their parents

It hopes to attract ordinary savers by making buying gold easily accessible.

"We want to help expand the bullion market in the U.K., particularly as coins offer a relatively affordable introduction," said the Royal Mint's director of commemorative coins and bullion, Shane Bissett.

Buyers can have their coins posted to their home, or -- if they buy more than 25 -- stored within the Royal Mint's vaults, which are guarded by the U.K. Ministry of Defence.

The Mint said that according to the World Gold Council, the gold market could attract up to $6.5 billion in investments from the U.K. alone if it was easier to access.

However, like all investments, the price doesn't always go up. Gold bars might look reassuring but their value has dropped by about 6% over the last three years.

The Royal Mint has created coins for royals and governments for over 1,000 years.

First Published: September 22, 2014: 11:16 AM ET

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Rockefeller Fund divorces itself from fossil fuels

The Rockefeller Brothers Fund is divesting itself of coal.

NEW YORK (CNNMoney)

The Rockefeller Brothers Fund pledged Monday to divest itself of investments in coal and tar sands, promising to reduce that exposure to less than 1% of the total portfolio by year's end.

The statement announcing the divestment referred to coal and tar sands as "two of the most intensive sources of carbon emissions. We are working to eliminate the fund's exposure to these energy sources as quickly as possible."

The announcement comes one day before the United Nations General Assembly meets in New York to take on the subject of climate control.

Related: Activists plan to shut down New York Stock Exchange

Established in 1940, the fund committed itself four years ago to dedicating one-tenth of its assets to clean energy technologies and business strategies.

The fund is worth $860 million.

The fund was created by the children of John D. Rockefeller, Jr., a philanthropist whose father founded Standard Oil and was the richest American of all time. His wealth was estimated at $253 billion, when adjusted for inflation.

First Published: September 22, 2014: 11:03 AM ET

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The iPhone 6 is a gift for Best Buy

NEW YORK (CNNMoney)

That's because the struggling electronics retailer could emerge as one of the biggest winners from the booming sales of Apple's (AAPL, Tech30) iPhone 6. Customers have already purchased 10 million of the new phones since they went on sale Friday.

History shows that Best Buy (BBY) tends to get a bounce in sales after iPhone releases as consumers race to try out the new devices in the showroom and sometimes stick around to buy other products.

"We believe that BBY will remain the greatest non-Apple retail beneficiary," Barclays (BCS) analyst Alan Rifkin wrote in a report on Friday. "The launch comes at a very opportune time with the holiday season fast approaching."

Related: Apple sells 10M iPhone 6 & iPhone 6 Pluses

Best Buy is very much aware of the "iPhone effect". In May, the company's management blamed lackluster sales on an overall "lack of innovation" in the consumer electronics industry.

Specifically, Best Buy said it experienced "ongoing softness" in mobile phone sales as "consumers eagerly await highly-anticipated product launches."

The wait is over.

That's great news for Best Buy, the preeminent iPhone retailer outside of wireless carriers like AT&T (T, Tech30)and Verizon (VZ, Tech30).

Barclays predicted Best Buy will enjoy a bump of 2% to 2.5% to mobile sales this quarter thanks largely to the iPhone. That's nothing to sneeze at.

Related: What will make stocks go even higher?

Best Buy should also benefit from the fact that the iPhone 6 Plus looks and feels different than what Apple customers are used to. The larger screen size will likely lure consumers into brick and mortar retailers like Best Buy rather ordering the new iPhone online, Barclays said.

That increased store traffic should trickle down to the rest of Best Buy, creating positive momentum ahead of the critical holiday shopping season.

Barclays boosted its price target on Best Buy to $40 from $35. That translates to a 15.5% advance from the stock's Friday close of $34.61.

Related: Who's getting rich off the stock market?

Of course, there's no guarantee Best Buy will be able to capitalize on the iPhone 6 boom. Even Barclays, which recommends investors own the stock, believes Best Buy sales will shrink 2% during the second half of the year.

But history does show Best Buy tends to enjoy an iPhone bounce. For example, Best Buy's domestic mobile sales jumped 6.7% during the iPhone 5S/5C launch quarter last September.

Interestingly, Best Buy enjoys a close relationship with Apple despite the fact it's not one of the major retailers supporting the company's new mobile payment system. While Macy's (M), McDonald's (MCD), Subway and Walgreen (WAG) are all supporting Apple Pay, Best Buy and Wal-Mart (WMT) were not included in the September 9 announcement.

Best Buy is not the only company in focus because of its ties to the iPhone. A number of iPhone suppliers like Avago Technologies (AVGO), Skyworks Solutions (SWKS) and NXP Semiconductors (NXPI) rallied over the summer on the Apple hype. Sprint (S) shares have also popped as the carrier unveiled a monthly service discount for customers who purchase the latest iPhone.

Shares of Best Buy are down almost 14% so far this year, but they have popped 8% in September amid the iPhone 6 buzz. By comparison, the S&P 500 is flat in September.

First Published: September 22, 2014: 11:39 AM ET

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Half of China's wealthy plan to leave

HONG KONG (CNNMoney)

A Barclays survey of wealthy people around the world found that 47% of about 50 Chinese respondents want to move abroad in the next five years.

The main reasons: access to better education and employment for their children, and economic security.

Hong Kong is their preferred destination, followed by Canada and the United States.

Wealthy citizens of Qatar are the second mostly likely to move, with 36% of respondents saying they plan to do so in the next few years, primarily driven by efforts to secure better opportunities for their kids.

That's followed by those in Latin America -- 34% of respondents in that region plan to emigrate.

Overall, Barclays surveyed more than 2,000 individuals with over $1.5 million in assets.

Related: Why the rich are ditching their home country

It's no surprise that many Chinese say they plan to leave.

They've already overwhelmed popular investor immigrant visa programs in the U.S. and Canada. Interest was so high that Canada shut its program earlier this year. And the U.S. recently said it had run out of such visas for the Chinese.

Experts say the emigrants are looking for a brighter future for their children, to escape heavy pollution, and to find some protection against political and economic uncertainty.

"There are fewer barriers to mobility than ever before," Barclays said in the report. "More high net worth individuals are seeking secondary citizenships to help them grow their businesses abroad and to take advantage of international career opportunities."

First Published: September 15, 2014: 7:44 AM ET

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Microsoft buys Minecraft for $2.5 billion

Microsoft has announced plans to buy Minecraft -- and its maker, Mojang -- for $2.5 billion.

NEW YORK (CNNMoney)

With Minecraft, Microsoft will be acquiring one of the most popular games ever. Minecraft has been downloaded more than 100 million times since it launched in 2009.

Minecraft is an online video game that mixes Lego-like building blocks with the endearing low-fi of 8-bit graphics. It gives players ("miners") a world where they can explore endlessly and build just about anything from scratch. It's alchemy with a virtual pickaxe.

The game runs inside an Internet browser and doesn't require the costly hardware of modern games. And if it seems low-end, that's because it is. The game was initially developed by a single man: Markus Persson, who now leads the Mojang studio.

Microsoft (MSFT, Tech30) said it reached an agreement with Minecraft's Swedish game developer Mojang to buy the company sometime later this year. The deal had been rumored for a week prior to its announcement.

First Published: September 15, 2014: 9:48 AM ET

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RadioShack's CFO bails during cash crisis

NEW YORK (CNNMoney)

John Feray has quit the CFO job for "personal reasons." It will use a consultant, Holly Felder Etlin, as an interim CFO without actually hiring her for the post.

RadioShack announced last week it was down to its last $30 million in cash and "actively exploring" ways to raise the additional money.

CEO Joe Magnacca admitted that time is running out on the company..

"It's clear that the current pace of our turnaround is simply not fast enough to address our near-term [cash] needs," he said. He also said while it hopes to avoid a bankruptcy that would wipe out existing shareholders' stake in the company there is no "predetermined outcome" to what it will do about the cash drain.

Related: Six endangered brands

Neither Feray nor Magnacca signaled anything about Feray's departure plans in a brief call with analysts and investors last week. They also did not take questions, which executives typically do during such conference calls.

The company's network of more than 5,000 stores has done little to battle competition from Amazon (AMZN, Tech30) and other online retailers. In March, the company said it needed to close 1,100 stores, or about 20% of its total. But three months later, it was forced to scale back to only 200 store closings when lenders balked at providing the cash needed to close more stores.

Closing stores can be expensive, requiring payments to landlords to exit leases as well as severance to employees and the cost of liquidating inventory.

The company also disclosed last week that sales at stores open at least a year plunged 20% in the most recent quarter due to lack of customer traffic and weak demand for mobile devices. Losses more than doubled to $137.4 million.

If it does find a lifeline, it could be from its largest shareholder, hedge fund Standard General, which owns nearly 10% of the company. Last month, sources told CNNMoney that it was in talks to give it a cash infusion.

Shares of RadioShack (RSH) were sharply higher early Monday despite the latest turmoil.

First Published: September 15, 2014: 8:25 AM ET

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At least 19 deaths tied to flawed GM cars

NEW YORK (CNNMoney)

That's more than the 13 deaths General Motors (GM) has said were tied to the problem, which went unreported for a decade, years after company engineers discovered it.

Overall, Feinberg has received 125 claims for deaths and 320 for injuries in the five weeks he has been up and running. Of those, he has found 31 eligible for compensation. Most of the remainder are still under review.

Feinberg said he has denied fewer than a dozen claims.

"Already there are more deaths than GM said from day one," Feinberg told CNNMoney. "Of course there will be additional eligible deaths; how many is pure speculation, but there will be eligible death claims." 

The families of victims who died can collect $1 million, plus an estimate of the victim's future earning potential and $300,000 each for a surviving spouse and dependents.

Related: How Brooke Melton's death led to the GM recall

In addition to the 19 deaths, Feinberg has identified four people who suffered severe injury such as quadriplegia, paraplegia, double amputation, brain damage or serious burns. He has identified another eight with less serious injuries. 

Compensation for those who were injured varies from $20,000 for the least serious injuries to $500,000 for victims who spent more than a month in the hospital.

Why the discrepancy between GM's numbers and Feinberg's findings?

"GM had its engineers determine, with certainty, that there were 13 deaths caused by the ignition switch defect," Feinberg said. "The program we are administering is much easier to satisfy."

Under the terms of the fund, claimants need to prove the ignition switch was a "proximate cause" of the accident. "We're applying a legal standard," he said. "The 13 was an engineering conclusion."

Related: Steps to a recall nightmare

GM's initial death count included only head-on crashes where the front airbag did not properly deploy and victims were in the vehicles' front seats.

"We have previously said that Ken Feinberg and his team will independently determine the final number of eligible individuals, so we accept their determinations for the compensation program," GM spokesman Dave Roman said Monday. "What is most important is that we are doing the right thing for those who lost loved ones and for those who suffered physical injury."

Feinberg did not say how much the fund would pay out, in part because the determination of eligibility does not mean a victim or family has accepted his offer. There is no cap on how much GM may have to pay victims through the fund.

Related: Two died in 2006 Cobalt crash. But GM counts only one

Feinberg's office is receiving roughly 100 claims per week. He says he has seen a fair number of claims "where the family doesn't agree on who should get the money."

The process continues: Feinberg will continue accepting claims until the end of the year.

He requires extensive documentation, including a police report, vehicle computer data, financial records (to calculate earning potential) and health care records or a death certificate. The review process will likely take until the middle of 2015.

Those who accept compensation must agree to not sue GM, and some families have said they will forgo the Feinberg process and seek their day in court.

The company's 2009 bankruptcy provides a liability shield from many lawsuits. A federal judge is deciding how the shield will apply to ignition switch claims.

Feinberg was hired by GM to oversee the fund but has said that his eligibility decisions are not influenced by GM management. He has previously overseen funds for victims of 9/11, the Gulf oil spill and the Boston Marathon bombing.

GM knew of flaw for years: GM engineers first knew of the ignition switch flaw a decade ago, but the company publicly acknowledged it for the first time in February. It has now recalled 2.6 million cars related to the problem.

Drivers of certain small Chevrolet, Pontiac and Saturn cars can inadvertently bump the ignition switch out of run, disabling the power steering, anti-lock braking, and airbags.

Greater scrutiny to GM's handling of vehicle issues led to a stream of recalls; the company has issued 65 this year for a total of nearly 30 million vehicles.

Related: Full coverage of the GM recall

Related: Is your GM car under recall this year? Check the full list

First Published: September 15, 2014: 11:06 AM ET

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Urban Outfitters pulls offensive sweatshirt

The offensive vintage Kent State Sweatshirt has been removed from Urban Outfitters' website.

NEW YORK (CNNMoney)

The $129 sweatshirt has been removed from Urban Outfitters (URBN)' website. But images of the sweatshirt, which has red stains on it that critics say resemble blood stains, have been widely circulated online.

The edgy youth store issued a statement saying "it was never our intention to allude to the tragic events that took place at Kent State in 1970."

On May 4, 1970, four students were killed and nine others were injured at Kent State University in Ohio after National Guard open fire on protesters demonstrating against the Vietnam War.

Kent State University issued a statement denouncing Urban Outfitters for "using our pain for their publicity and profit."

"This item is beyond poor taste and trivializes a loss of life that still hurts the Kent State community today," the statement reads.

Related: Lululemon sued for see-through yoga pants

The sweatshirt was panned on Twitter (TWTR, Tech30)as "tasteless," "tacky" and "awful."

The "one-of-a-kind" sweatshirt was sold as part of Urban Outfitters' "sun-faded vintage collection" and was not altered in any way, according to the statement. There is no blood on the garment and Urban Outfitters said the red stains are due to "discoloration," while holes in the sweatshirt are due to "natural wear and fray."

Now, the sweatshirt is for sale on eBay (EBAY, Tech30). The seller is asking $2,500 for the "infamous one of a kind Kent State Sweater." The starting bid was $550 for the sweater, which the seller says is "perfect for Halloween or whatever your deal is."

Related: Abercrombie struggles to bring sexy back

The seller promised to donate half of the proceeds to The Southern Poverty Law Center.

This is not the first time Urban Outfitters, which caters to young consumers who want to seem "hip," has offended the wider public.

Urban Outfitters (URBN) has previously come under fire for selling woman's T-Shirts with "Eat Less" and "Depression" printed on it. The Philadelphia-based retailer has also been criticized for a shirt that evoked the stars that Jews were forced to wear during the Holocaust.

First Published: September 15, 2014: 11:20 AM ET

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Beyond France: Can Netflix rule media world?

NEW YORK (CNNMoney)

Netflix (NFLX, Tech30) entered the French video streaming market Monday, and the new media company is set to debut in several other European nations soon as well.

Netflix first announced plans to move into France back in May. It also plans to launch in Germany, Austria, Switzerland, Belgium, and Luxembourg before the end of the year.

Although French cable companies are expected to fight hard to keep customers from cutting the cord and embracing Netflix, the European expansion plans have been met with rave reviews from Wall Street.

How do you say "bufffering" in French?

Shares of Netflix are up nearly 30% in 2014 and are not far from their all-time high. Investors also love the fact that Netflix's streaming subscriber base is growing rapidly in the United States.

In fact, Netflix may soon top another milestone. The company is now worth $28 billion ... slightly less than the $30 billion market value for television network owner CBS (CBS). (It reminds me of the classic line by Hyman Roth to Michael Corleone in "The Godfather, Part II" about how big their criminal operation had become: "We're bigger than U.S. Steel!" Sadly, this movie is not available for streaming on Netflix.)

Soon to be bigger than old media? Surpassing CBS in market valuation would be yet another sign of how new media is disrupting the business models of the old TV and movie establishment.

CBS owns the most watched TV network in the U.S., not to mention the Showtime cable channel, a giant nationwide radio network and book publisher Simon & Schuster. (It's worth nothing that Comcast (CMCSA)-owned NBC was tops with the 18 to 49 year-old demographic that advertisers covet in the 2013-2014 season though.)

Related: Netflix is one of the top performers in CNNMoney's Tech 30 index

As companies like CBS continue to try and adapt to the changing ways that people watch television, Netflix is winning customers and investors. Wall Street expects Netflix's earnings to increase more than 40% a year, on average for the next few years. Analysts are forecasting annual profit growth of 15% for CBS.

But Netflix stll needs old media: Of course, that 15% growth rate for CBS is not too shabby. And you could argue that CBS and other "old media" giants like Disney. (DIS) Fox (FOXA), Viacom (VIAB) and CNNMoney owner Time Warner (TWX) are important parts of Netflix's success as well.

While Netflix has been busy building out its own library of exclusive content such as "Orange is the New Black" and "House of Cards," the company also needs other big media firms to keep churning out hits as well.

Consider how popular "Breaking Bad" from AMC (AMCX) is on Netflix as many people started to binge-watch it after hearing the strong word-of-mouth reviews.

Related: AMC CEO says 'zombies are thriving'

And Netflix recently paid up for the streaming rights of "Gotham," a new Batman origin story that will air on Fox this fall. (Gotham is produced by Warner Bros., a subsidiary of CNNMoney parent Time Warner.) Netflix also just scoped up streaming rights for NBC's "The Blacklist," a drama with James Spader that was one of last season's biggest new hits.

Is the stock overvalued? But even if you've already ditched cable and only watch shows on Netflix, should you buy the stock at these lofty levels?

Shares trade at more than 70 times 2015 earnings estimates, a gigantic premium to all the older media companies.

What's more, Netflix still has a long way to go before it can top the revenue figures of the big media firms. It is expected to report sales of nearly $7 billion in 2015. That's impressive -- but it's less than half of what analysts are forecasting for CBS next year.

So it would be a mistake to say that Netflix is killing old media. It's a symbiotic relationship. And that will probably be the case in Europe and other new markets Netflix looks to enter as well.

First Published: September 15, 2014: 11:16 AM ET

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Apple sold 4 million iPhone 6 and 6 Plus in first day

NEW YORK (CNNMoney)

Apple sold a record 4 million iPhone 6 and iPhone 6 Plus smartphones on Friday, the first day that the new iGadgets were available for pre-order, the company said Monday.

Demand for the new iPhones was so high that the iPhone 6 Plus sold out within hours. While many people who pre-ordered the iPhone 6 will get them this Friday, many others won't get their iPhones delivered until next month.

"Demand for the new iPhones exceeds the initial pre-order supply," Apple said in a statement. The company noted that an additional supply of iPhone 6 and iPhone 6 Plus smartphones will be made available to walk-in customers on Friday Sept. 19, beginning at 8:00 a.m. local time at Apple stores. People have already begun camping outside Apple Stores around the world to be among the first to get their hands on one of the new iPhones.

Related: Apple's Tim Cook on TV, Steve Jobs and the iPhone 6

This is the first year that Apple announced how many iPhones it sold in the first day -- rather than in the first weekend. A year ago, Apple said it sold 9 million iPhone 5S and 5C smartphones in the first weekend.

But the numbers aren't exactly "apples to apples," pardon the pun. The iPhone 5S was not available for pre-order. Also, the iPhone 5S went on sale in China at the same time as as it hit store shelves in the United States.

This year, the iPhone 6 will not be available in China until at earliest October. China was not listed among the 30 countries that will get the iPhone this month.

First Published: September 15, 2014: 9:13 AM ET

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The richest middle class ... that isn't near NY and DC

NEW YORK (CNNMoney)

But how did a Denver suburb wind up at the top of the list of counties with the highest median income?

Douglas County, which lies on the southern edge of the Denver metro area, had a median household income just shy of $100,000 last year, ranking it sixth in the U.S., according to Sentier Research.

By comparison, the national median income is roughly $52,300.

Related: Are you really middle class?

What Douglas has is a wealth of high-paying, professional jobs in the software, telecom, medical and financial services industries. Major employers include DISH Network, Liberty Media, Western Union and Sprint Nextel. It's also close to major aerospace employers, including Boeing, Lockheed Martin and Raytheon. Charles Schwab will open a major campus for 2,500 employees in October in Lone Tree, a city in Douglas.

Companies there are hiring. The county had the fourth highest rate of job growth nationwide, at 5.2%, in 2013. Even during the Great Recession, the county's economy kept expanding, said County Commissioner Jill Repella.

Related: America's middle class: Poorer than you think

Douglas residents are highly educated, with 54.8% holding a bachelor's degree or higher, compared to 36.7% of Coloradans and 28.5% of Americans.

Good schools and a low crime rate are also a draw. Of the six largest metro Denver school districts, Douglas' has the highest graduation rate at 89%. And there have only been four homicides since the start of 2010.

The county's homeownership rate stands at 81%, compared to 66% for the state and the nation, while the poverty rate is less than a quarter of the state's.

Related: Where the middle class is most unequal

All this has helped make Douglas one of the fastest growing counties. Its population jumped 7.2% to 305,000 between 2010 and mid-2013, compared to increases of 4.8% statewide and 2.4% in the U.S.

"People want to be there," said Brian Lewandowski, research associate in the University of Colorado's business research division. "They have easy access to the Denver metro region. There's a good supply of jobs, and they are good jobs too."

Here are the 10 counties with the highest median income:
Loudoun, Va. $123,402
Fairfax, Va. $109,504
Howard, Md. $107,778
Hunterdon, N.J. $104,976
Arlington, Va. $102,803
Douglas, Colo. $99,767
Somerset, N.J. $99,528
Stafford, Va. $98,559
Prince William, Va. $96,825
Montgomery, Md. $96,155

First Published: September 15, 2014: 7:52 AM ET

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The new Moto X is the best Android smartphone ever made

Motorola's Moto X smartphone will delight you -- something you don't say about smartphones too often.

NEW YORK (CNNMoney)

I mean, when was the last time your smartphone did something so surprising that you smiled? Or you discovered a feature and actually thought, "Okay, THAT was awesome?"

It's been a while, right?

That's because today, most smartphones are exactly the same. They are all lighting-fast. They all have great screens. They all have the same apps. They all have good cameras. They all have 4G connections. They're all easy to use. Heck, they all pretty much look the same.

That's what makes the new Moto X so wonderful -- it's not just another smartphone. It's your smartphone. You can make the Moto X fit your needs.

Do you want your phone to be quiet during meetings and automatically respond with a custom text? You can do that. Or maybe you want it to automatically detect when you're driving and read your texts aloud? It'll do that if you want it to.

Related: iPhone 6 pre-orders crash the Apple Store

You can even set your Moto X to detect when you're home, then announce who's calling when your phone rings. That means you can leave your phone charging on the kitchen counter and you don't have to get up from your comfortable living room chair when your phone rings if you're screening your calls.

And the Moto X will look exactly the way you want too. With Motorola's online Moto Maker tool, you can mix and match any number of combinations of colors and materials. You want a leather back and a white screen? How about your laser-etched signature on a seafoam green back with a black front? Or maybe you want your phone to be made out of wood. All those options are available with the new Moto X.

My favorite Moto X feature lets you set a unique name for your phone. Mine is "tippity spoons," which is some crazy name my three-year old daughter suggested. (Why not?) So I just yell "tippity spoons," and my phone will do whatever I tell it to. It's fantastic while driving -- I don't need to touch anything.

Related: Which carrier has the best deal for the iPhone 6?

Beyond letting you customize it, the Moto X also comes with a handful of smart extra features.

When you take the phone out of your pocket, your phone will display the time -- you don't have to hit any buttons. When you get a call, just wave at your phone to silence it. To snap a photo, just shake your phone -- even if it's locked. And when you get a notification, you can tap your phone to get a quick glance at who's trying to bug you.

Other phones have better cameras (the Moto X's is fine but not outstanding like the Samsung (SSNLF) Galaxy S5, Microsoft (MSFT, Tech30) Lumia or the Apple (AAPL, Tech30) iPhone). Other phones have better speakers (the Moto X's are loud and clear, but no one beats the HTC M8). There are better sized phones too (the Moto X's 5.2-inch screen is a bit too big for my puny hands).

But other than the iPhone, the Moto X is the only phone that will delight you on a consistent basis.

That's why the Moto X is the best Android smartphone ever made.

First Published: September 15, 2014: 10:23 AM ET

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Marriott: Tip your housekeeper!

NEW YORK (CNNMoney)

That's the message from Marriott International (MAR). It is placing envelopes in more than 160,000 rooms in the United States and Canada to encourage tipping the people who clean guest rooms.

Marriott is launching the program in conjunction with A Woman's Nation, an organization for the advancement of women in the workplace spearheaded by TV newswoman Maria Shriver.

"Hotel room attendants often go unnoticed, as they silently care for the millions of travelers who are on the road at any given time," said Marriott and A Woman's Nation in a joint statement. "Because hotel guests do not always see or interact with room attendants, their hard work is many times overlooked when it comes to tipping."

The American Hotel & Lodging Association, the hotel industry group, suggests leaving housekeepers a tip of $1 to $5 per day, every day, not just at the end of the stay. This is because different housekeepers might be cleaning the room on different days during the guest's stay. The tip should be placed in an envelope.

First Published: September 15, 2014: 8:46 AM ET

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Barra: GM likely done with recalls on older vehicles

NEW YORK (CNNMoney)

In an interview with CNBC, CEO Mary Barra said the company will continue to look at evidence of problems with older models as they crop up, but that the automaker believes it has now addressed most of those problems.

"I think as we look to the past, we are substantially complete," she said. "If we find issues, we will address [them], but the most important thing we are doing is...making sure we create defect-free vehicles as we move forward."

A flood of recalls on older models earlier this year has resulted in GM (GM) recalling a record 29 million vehicles so far in 2014. About two-thirds of the vehicle recalls were on models that GM no longer makes.

After announcing 65 separate recalls in just over the first seven months of the year, GM has not announced any new recalls in the past month.

Related: GM recall crisis coverage

Barra also said dealers should soon have all the parts they need to repair the 2.6 million cars included in its highest-profile recall, the ignition switch problems tied to at least 13 deaths.

The repairs on those cars were delayed by the lack of available parts earlier this year. She said it is stepping up efforts to notify owners of those cars that the parts are available and they should bring them in for repairs.

GM has admitted that it employees knew about problems with the ignition switch, which can cause the car to turn off while driving, for about a decade before recalls started earlier this year.

It has set up a compensation fund to pay victims of the crashes that occurred along with their families. It said it expects the fund will pay out between $400 million to $600 million to victims. There are also likely to be more than 13 deaths tied to the recall. The fund received 100 death claims in the first month it was accepting claims from victims and family members.

It also faces civil lawsuits tied to the recall and the possibility of criminal charges. The Justice Department, 45 state attorneys general, the SEC and Transport Canada are all conducting probes of the delayed recall.

First Published: September 8, 2014: 8:49 AM ET

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Next "Late Late Show" host: James Corden

James Corden aflame during a presentation at The BRIT Awards 2014. (Matt Kent/WireImage)

NEW YORK (CNNMoney)

CBS announced Monday morning that James Corden will be the new host of "The Late Late Show," replacing Craig Ferguson, who announced his intent to step down back in April.

Ferguson's show and its lead-in, the iconic "Late Late Show," remain profitable workhorses for CBS, even as late-night shows suffer declines in overall audience and advertising revenue.

Corden, 36, represents generational change for the network, given that Ferguson, 52, has been hosting "Late Late" since 2005. The network's interest in Corden was first reported in August; he'll take over in early 2015.

A native of Britain, Corden has a long list of credits on television, in film and on the Broadway stage.

Here's what you should know about James Corden

"Corden is a rare entertainment force who combines irresistible charm, warmth and originality with a diverse range of creative instincts and performance talent," CBS entertainment chairman Nina Tassler said in a statement.

Corden is the last piece of a late night line-up that has been in flux since Jimmy Fallon took over for Jay Leno on "The Tonight Show" last winter.

Months later, David Letterman announced that he'd be stepping down from "The Late Show." CBS quickly completed a deal to bring Comedy Central's Stephen Colbert and his Colbert Nation over to the 11:35 p.m. "Late Show" time slot, effective next spring.

But the network didn't confirm that the "Late Show" would stay in New York -- and the famed Ed Sullivan Theater -- until it reached a agreement with the state that made CBS eligible for upwards of $11 million in tax credits and $5 million in grants.

The network might go through the same process with the "Late Late Show," which is currently produced in Los Angeles.

On Monday CBS said "the creative elements, as well as the producers and the location for the Corden-hosted Late Late Show, will be determined and announced at a later date."

By picking Colbert to succeed Letterman, CBS was passing over Ferguson -- so Ferguson's subsequent decision to leave the network was not a surprise.

But Corden is. He is somewhat unknown to American audiences, but says he's ready to take on the challenge.

"I can't describe how thrilled and honoured I am to be taking over from the brilliant Craig Ferguson," Corden said in a statement. "To be asked to host such a prestigious show on America's #1 network is hugely exciting. I can't wait to get started, and will do my very best to make a show America will enjoy."

In the United Kingdom, Corden co-created, co-wrote and starred in the BBC comedy series "Gavin and Stacey" (a role in which he earned a BAFTA TV award in 2008). He also had a recurring role in the fan favorite "Doctor Who" as Craig Owens, the Doctor's roommate.

And he's not new to hosting: from 2010 to 2014 he hosted the Brit Awards, one of the biggest award shows for the British music industry.

In the United States, Corden won a Tony Award in 2012 for best lead actor in "One Man, Two Guvnors."

First Published: September 8, 2014: 11:00 AM ET

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The shorter and shorter life of an NFL stadium

A construction worker stands atop debris of a church torn down to make way for a new stadium to replace the 22-year old Georgia Dome in the background.

NEW YORK (CNNMoney)

But its days are already numbered.

Fans attending games this season will be able to see the team's next home under construction next door. It is due to open in three years.

The NFL is in the midst of a building boom, with ten new stadiums in the last 12 years, and two more under construction. The median age of the stadiums replaced was only 31 years. It used to be stadiums would be nearly 50 years old before the wrecking ball swung.

The reason is simple: New stadiums maximize revenue in a way old stadiums never did.

NFL teams share most of their revenue, including most ticket sales and all broadcast rights. But most of the other money they make in the stadium -- from luxury boxes, advertising and concessions -- they can keep themselves.

Related: NFL Sunday Ticket comes to smartphones

"What they're doing is maximizing every inch of real estate for the maximum money," said Corey Suppes, co-founder of the website Ballparks.com, which tracks professional sports stadiums and arenas in North America. "Every nook and cranny has something in it."

In order to lure fans who might prefer the comfort of watching games on big-screen TVs at home, teams are improving the in-stadium experience: Wider concourses, high-end restaurants, WiFi networks and huge television screens that can be up to 60 yards long.

"If you want to keep up with the Jerry Joneses, a 20-year-old stadium isn't going to cut it," said Marc Ganis, a sports industry consultant who has worked on numerous stadium deals, referring to the Dallas Cowboys owner who opened a billion dollar stadium in 2009.

Related: EA stock scores touchdown with Madden

While teams and the league pay for some of the building boom, taxpayers and fans foot a lot of the bill.

Teams are able to negotiate with local governments to get hundreds of millions of tax dollars for new stadiums. If a city balks, the team can threaten to move to an area that's more willing to pay.

The 49ers tried to get San Francisco to help build a new stadium. When the city balked, they moved 40 miles south to a new stadium that opened this season in Santa Clara, Calif.

As for fans, they get hit not only with higher prices for individual game tickets, but also with personal seat licenses, which are fees that run thousands of dollars per seat that give them nothing but the right to buy season tickets.

Average ticket prices at the 49ers' new Levi's Stadium are $117 each, according to Team Marketing Report, which tracks prices and fan costs. That's the second highest in the league and about 40% more than the price at their former home last season.

And there are signs the trend is accelerating.

Washington Redskins owner Daniel Snyder recently said his team is already starting to look for a replacement for FedEx Field. It opened in 1997.

"We love FedEx Field, it's a great place to feature our home games, but it's 17 years old now. So I think it's time for us to start looking," he said in a television interview.

First Published: September 8, 2014: 10:14 AM ET

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U.K. split fears sink pound

LONDON (CNNMoney)

The pound sank to its lowest level in 10 months Monday after an opinion poll over the weekend showed supporters of Scottish independence gaining a slim lead for the first time.

Scotland votes next week on the fate of its 307-year union with England, and the prospect of years of political and economic uncertainty is slamming the pound and hitting stock markets.

Strong growth and rapid job creation had sent the British currency to a 6-year high of $1.71 as markets anticipated the first rise in interest rates since 2007.

But politics has now come to the fore, and the pound has fallen nearly 6% from its peak.

Most polls still suggest Scotland will vote to stay, but the risk of a messy divorce is clearly rising.

Uncertainty is what investors hate the most, and now they have it in spades: which way will the vote go, and will Scotland be able to keep the pound if it does break away.

For years, the Scottish nationalists' plan was to take Scotland into the European Union as an independent state, and then adopt the euro. They still want EU membership but the eurozone crisis killed talk of joining the single currency.

Related: High roller bets $671,000 on Scotland's fate

Instead, they want to keep the pound as part of a new sterling zone, an idea firmly rejected by the British political establishment and fraught with risk given the economic autonomy the independence camp seeks.

And it's not just the immediate uncertainty that has markets worried.

Support for European Union membership tends to be higher in Scotland than elsewhere in the U.K.

If Scotland chooses to go it alone, that raises the risk that the remainder of the U.K. will vote to leave the EU in a referendum Prime Minister David Cameron has promised for 2017, if he wins next year's election.

"We believe that a 'yes' poses more questions than it answers, and this will be negative for sterling, perhaps to the order of 5% overall. It would increase moves for secession across Europe, increase the momentum for the U.K. to leave the EU and hurt Scottish economic growth potential," wrote Kit Juckes of Societe Generale.

First Published: September 8, 2014: 7:06 AM ET

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