One property insurance claim can hike your premiums by hundreds

NEW YORK (CNNMoney)

On average, filing a single claim -- for anything ranging from a stolen bicycle to tornado damage -- will result in your monthly premium being raised by 9%, according to a report released by InsuranceQuotes.com. File a second claim and premiums climb by an average of 20%.

"Winning a small claim could actually cost you money in the long run," said Laura Adams, InsuranceQuotes.com's senior analyst. "Homeowners need to be really careful. Even a denied claim can cause your premium to go up."

Related: Which natural disaster will likely destroy your home?

And the size of the claim has little impact. Filing a small claim increases your rates by just about as much as filing a catastrophic one. "The insurers have found that people who make a claim are more likely to make another," said Adams. "You've become a riskier customer."

Yet, the type of claim does matter. Liability claims, such as from personal injuries, are the most expensive type of claim, with insurers raising premiums by an average of 14%, InsuranceQuotes.com found.

Other claims that lead to big premium increases are theft and vandalism, which often indicate that the home is in a neighborhood that is unstable or falling prey to blight. In bad neighborhoods, these crimes can recur, and the high premiums reflect that.

The premium increases also vary greatly by state. Homeowners in Wyoming saw the biggest increase in their premiums -- an average of 32% -- after a claim was filed. While the hikes are high, the state tends to charge fairly low premiums of about $770 a year, considerably lower than the $978 national average.

Policyholders in Connecticut, Arizona, New Mexico and California also saw large hikes of 18% or more.

Meanwhile, homeowners in Texas, where insurers are not allowed to raise premiums on the basis of a single claim, saw no increase. And homeowners in New York and Massachusetts paid very little more after filing claims.

Average premiums range from a low of $513 a year in Idaho to $1,933 in Florida, where frequent hurricanes drive insurance costs up.

Once your premiums are raised, it can be difficult to get them reduced.

Insurers keep a database called the Comprehensive Loss Underwriting Exchange, or CLUE, which tracks seven years' worth of your auto and property insurance claims, as well as any inquiries you may have made about a claim. The database then compiles a report based on your claims history that is then used to determine whether to cover you and how much to charge.

The information is available to all insurers so even if you switch providers, your rate with the new carrier may be just as high.

Related: Damaged home? How to get an insurer to pay up

"You can't escape your claim history," said Adams.

But you are not completely without hope. Here are some ways to try and keep your homeowner's insurance costs down:

Raise your deductible. But not so high that you can't afford to pay out-of-pocket costs if damage occurs.

Don't make small claims. Getting a few hundred dollars back if a tree limb falls on your shed may feel good but you could be paying that back to your insurer over the next few years -- and then some.

Don't use homeowners insurance as a maintenance tool. Don't file a claim to pay for small repairs, such as when wind blows some old shingles off your roof. Use it for catastrophic repairs only.

Shop around often. Look for quotes once a year. There's lots of competition in the industry and you may be able to buy equal coverage and service for a lower price.

First Published: October 19, 2014: 10:12 AM ET

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Moody's downgrades Russia's debt

NEW YORK (CNNMoney)

Moody's downgraded the country's debt by one notch Friday, citing the ongoing conflict in Ukraine, capital flight and falling oil prices. The debt rating is now Baa2, just two notches above "junk" status.

Ongoing tensions with Ukraine led to international sanctions against Russia earlier this year. That has reduced foreign investment and further slowed economic growth, spurring inflation and higher interest rates.

Related: Ruble's headlong plunge shows Russia hurting

"The longer the conflict in Ukraine and sanctions against Russia last, the more significant will be the damage to investors' confidence in Russia as a source of profitable investment opportunities," the agency said in a statement.

A recent slide in oil prices isn't helping things, either. The commodity is down nearly 12.5% in the last month.

The country relies heavily on oil to bankroll its budget -- over half of the government's 2012 revenues came from oil and gas, according to the latest data from the U.S. Energy Information Administration.

Related: Crashing oil prices could crush Vladimir Putin

The ratings agency said the debt's outlook would remain negative, and it is also considering a separate downgrade of Russia's sovereign credit rating if its economy continues to slow.

Standard & Poor's issued its own sovereign downgrade in April, to just a single step above junk.

The World Bank forecasts anemic Russian economic growth of just 0.5% in 2014 and 0.3% in 2015. A more pessimistic scenario foresees the Russian economy slipping into recession this year and contracting further in 2015 and 2016.

First Published: October 17, 2014: 6:47 PM ET

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Nightmare on Wall Street: Is it over?

NEW YORK (CNNMoney)

Frightening plot twists like plunging oil prices and the Ebola outbreak teamed up with ghosts from the past (Greece, deflation jitters in Europe) to create a toxic mix of market scares.

Last week even featured a few quasi-heroes like strong quarterly report cards from corporate giants like General Electric (GE) and Morgan Stanley (MS) and the Federal Reserve official who calmed the panic by suggesting additional stimulus could be possible if the economy deteriorates.

When the dust finally settled, the Dow was left in a 1% hole for the year. The S&P 500 is up about 2% in 2014, but well off its all-time high.

So what's going to determine whether this week is another scary ride or something far more tame?

Sure, investors will continue paying attention to what's kept them awake at night like Ebola and Europe. But they'll also get the chance to hear from a massive parade of companies expected to reveal decent quarterly numbers, including Amazon.com (AMZN, Tech30), Apple (AAPL, Tech30), Coca-Cola (KO), General Motors (GM) and McDonald's (MCD).

Related: Time to shop 'til you drop for cheap stocks

"Focusing on fundamentals is the best way for investors to avoid fear and to stay positioned for long-run growth," James Liu and David Lebovitz, global market strategists at JPMorgan Funds, wrote in a recent note to clients.

iPhone to the rescue? Apple could give Wall Street 21 million reasons to feel better this week. That's roughly the number of iPhones analysts expect Apple to say it sold last quarter (thanks in part to the iPhone 6), helping to drive a whopping $40 billion in total sales.

As the world's largest company, Apple always plays an outsize role in impacting stock prices and market sentiment. Positive numbers from the tech behemoth on Monday evening could reinforce cautious optimism about the U.S. economy and ease jitters about growth overseas.

Related: Apple unveils new iPads

A big earnings beat could also help breathe new life into Apple's shares, which have retreated 5% from all-time highs amid the recent market slump. It could also boost shares of AT&T (T, Tech30) and Verizon (VZ, Tech30), two wireless companies that carry the iPhone and are also due to report results this week.

Are consumers still spending? But it's not just about Apple. A number of other consumer-facing tech companies are also on the earnings docket this week like Amazon.com, Microsoft (MSFT, Tech30) and Pandora (P). Don't forget about Yahoo (YHOO, Tech30) and its efforts to lure more eyeballs to its growing family of sites.

There are also a long line of non-tech consumer companies slated to release results this week like Chipotle (CMG), Coca-Cola, Hasbro (HAS), McDonald's and Six Flags (SIX). An update on the pivotal auto market is also on tap in the form of earnings reports from both Ford (F) and General Motors.

If the recent economic data are any sign, these companies will have positive things to say about the health of spending. Consumer sentiment in October has ticked up to the highest level since 2007, according to the University of Michigan sentiment survey.

Concerns about the spread of Ebola added to the negative market sentiment last week, helping drive down travel stocks amid fears consumers would stop traveling. But they bounced off their recent lows as Delta Air Lines (DAL) said concerns about the outbreak haven't impacted travel.

Investors are hoping to hear more soothing words about the Ebola fallout from American Airlines (AAL), JetBlue (JBLU), Royal Caribbean (RCL) and Southwest Airlines (LUV).

Related: Can you protect yourself from a market crash?

Ebola, global growth: Wall Street will be searching for clues about how Corporate America is grappling with slowing overseas growth and the stronger U.S. dollar, which hurts exports.

General Electric (GE) and Honeywell (HON) offered positive news on this front last week, and this week it's 3M (MMM), Boeing (BA) and Dow Chemical's (DOW) turn to hit the earnings stage.

A gut check on the economy will also be available from a number of economic gauges, highlighted by a pair of housing reports on existing and new home sales.

First Published: October 19, 2014: 9:19 AM ET

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Audi driverless car hits 140 mph

NEW YORK (CNNMoney)

The RS7 Piloted Driving Concept successfully lapped the Hockenheimring racetrack in Germany at high speeds using only computers and sensors to guide it, Audi said.

Audi and other automakers have previously shown off automated driving technologies, but those systems have operated at normal road speeds. Operating at high speeds presents a different set of challenges.

Plans called for no other cars on the track at the time, but the car was operating close to the limits of its own performance capabilities. Such speeds require rounding corners as quickly as possible without skidding or driving off the track, and finding the best possible path through each curve.

To do that, the car uses an ultra-precise positioning system that will allow it to know its own exact location on the track moment by moment.

Photos - Best cars for billionaires

The ability to turn in the best possible lap time on a track is more than just a fun trick, according to Audi. It has important implications for safety.

"We have to be able to manage extreme situations and that's what we are demonstrating here," said Ulrich Hackenberg, board member for technical development at Audi, prior to the test.

When operating without a driver on real roads, a car may have to respond to emergencies in ways that require high-speed maneuvering. That will require precise sensors, fast computers and complex, flexible programming.

Audi was the first automaker to receive a license for autonomous driving from the state of California. The Audi RS7 has a 560-horsepower engine and a top speed of nearly 190 miles per hour.

First Published: October 17, 2014: 8:27 PM ET

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Debt-laden 'zombie' firms threaten China's economy

HONG KONG (CNNMoney)

After expanding at a lightning-fast rate, China's corporate debt market is now the world's largest at $14.2 trillion, according to Standard and Poor's.

Experts worry that too many of the loans have gone to underperforming firms that will never be able to repay -- especially in a slowing economy.

Economists surveyed by CNNMoney often cite concerns over runaway credit growth, but many now single out corporate debt as a major threat to China's economy.

"The risk is that the high debt burden will eventually result in unproductive zombie banks and zombie firms, which are a drag on the economy," said Julian Evans-Pritchard of Capital Economics.

Related: The Chinese like capitalism more than Americans

As China's economy slows, companies are seeing a lower rate of return on their investments, according to analysts at JPMorgan. Firms also face higher interest rates -- making it harder to pay what they owe.

Already, the system is showing stress. China suffered its first corporate default earlier this year, when a solar firm failed to make a payment to bondholders. A few other small companies have followed suit.

So far, central government initiatives to restrain credit growth have largely flopped, especially since many firms have in the past been encouraged to spend their way out of a hole.

Chinese companies are even turning to unconventional financing options -- increasing their debt in the process.

Some firms, for example, have been using copper as collateral to secure loans. Experts are concerned that some companies are using the same copper stockpiles to take out multiple loans, borrowing far more than they can afford.

Related: $547,000 for a parking space in Hong Kong

For Beijing, the question is how to contain debt growth, without hurting the economy.

Analysts say it is a positive sign that the government is allowing some firms to default. The defaults show the government's commitment to reforms that will encourage consumption-driven growth, instead of expansion fueled by easy credit.

At the same time, the central government still wields enormous power over the economy -- a fact that will help Beijing limit damage to the financial system.

"China is somewhat of a unique case given the degree of state control over the system, and so we don't think a financial crisis is likely," Evans-Pritchard said.

First Published: October 19, 2014: 10:07 PM ET

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Stocks: 4 things to know before the open

Click chart for in-depth premarket data.

LONDON (CNNMoney)

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

1. Stock market moves: U.S. stock futures are all edging up Monday, but this follows a dramatic week where fear gripped the markets and the Dow Jones industrial average erased all its gains for the year.

Even though equities posted a big comeback on Friday, the latest reading on the CNNMoney Fear & Greed index indicates investors are feeling very fearful.

Investors are expected to be on edge as they await earnings from multinational giants this week.

Related: Nightmare on Wall Street: Is it over?

2. Earnings parade: Apple (AAPL, Tech30), IBM (IBM, Tech30) and Chipotle (CMG) will report quarterly results at the close.

IBM said that in addition to releasing results, it will also make "a major business announcement." Bloomberg reported that IBM was about to pay Abu Dhabi's GlobalFoundaries $1.5 billion to take its unprofitable chip making unit off its hands.

As for Apple, it's launching Apple Pay Monday, allowing customers to pay for items with their iPhone 6s.

Firms reporting before the markets open include toy-maker Hasbro (HAS), newspaper publisher Gannett (GCI) and drug company Valeant (VRX).

Related: CNNMoney's Tech30

3. International markets overview: European markets are all declining in early trading after a slew of major European firms reported disappointing earnings. Many of the main indexes were down by about 1%.

Adidas (ADDDF) shares jumped 5% on a Wall Street Journal report that a consortium of investors was interested in buying its Reebok unit. Lufthansa (DLAKY) fell 1.3% as it was forced to cancel 1,500 flights due to a pilots' strike.

Asian markets all closed with gains, inspired by a Friday market rally in the U.S.

Japan's Nikkei surged by nearly 4%, supported by reports saying the country's massive public pension fund would funnel more money into the domestic stock market. There were also reports that the government may postpone a second increase in sales tax.

4. Friday market recap: After a week of steep declines, the Dow rose 263 points, or 1.6% Friday. The S&P 500 was up 1.3% and the Nasdaq jumped by about 1%.

First Published: October 20, 2014: 5:08 AM ET

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IBM shares down after it dumps chip unit, posts disappointing earnings

NEW YORK (CNNMoney)

IBM shares were sharply lower after the company dumped its chip unit at a loss and said it was disappointed with its earnings.

The computing company, a component of the Dow Jones industrial average, will take a $4.7 billion charge to sell its chip unit to Globalfoundaries, which will be a supplier of chips to IBM for the next three years. The chip unit lost another $100 million in the most recent quarter, roughly the same as the loss a year earlier.

To shed the money-losing unit, IBM will continue to invest $3 billion in chip research and development over the next five years, with Globalfoundaries benefiting from the results of that research. In return for that, Globalfoundaries will pay IBM only $1.5 billion over the next three years.

Related: IBM builds a brain out of computer chips

IBM also reported lower earnings and revenue that were sharply below forecasts by Wall Street analysts. It said the poor results were due to a "marked slowdown in September" in sales and that the results "point to the unprecedented pace of change in our industry."

"We are disappointed in our performance," said CEO Ginni Rometty.

The fall in IBM (IBM, Tech30) shares took Dow futures, which had been positive earlier, into negative territory.

First Published: October 20, 2014: 7:51 AM ET

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Russia's crusade to banish McDonald's

Nine McDonald's restaurants in Russia have been shuttered by government officials.

LONDON (CNNMoney)

Officials are continuing their crackdown on McDonald's (MCD) by forcing the closure of nine restaurants and investigating roughly half of the country's 446 locations.

The string of closures began in late August when authorities shut down four McDonald's locations in Moscow, including the city's first that opened nearly 25 years ago. As many as a dozen McDonald's locations were closed, but some have recently reopened.

It's widely believed the shutdowns are part of a retaliatory plan to punish American businesses after the U.S. and Europe issued harsh sanctions against Russia over the Ukraine crisis.

Local media had previously reported that "sanitary violations" were the reason behind the closures.

"We disagree with the court's decision and will appeal," said McDonald's in a statement.

McDonald's isn't the only consumer company that's suffered since tensions between the West and Russia flared up.

The firm behind Jack Daniel's whiskey also reported struggles in the country.

Brown-Forman (BFB) was targeted by the same consumer watchdog as McDonald's. A report from the organization in late August said dangerous substances were found inside samples of the company's whiskey.

Brown-Forman said it "vehemently" denied that there was anything harmful in its products.

First Published: October 20, 2014: 8:20 AM ET

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How to make $2.7 billion in a week

High Point, N.C., generates billions in revenue each year by hosting two furniture markets.

NEW YORK (CNNMoney)

Twice a year, anyone who's anyone in furniture manufacturing and home goods gathers in North Carolina for the High Point Furniture Market.

High Point, N.C., which has roughly 100,000 residents, nearly doubles in size for two weeks a year. The market hosts 75,000 attendees and 2,000 exhibitors for a week in April and then again in October. It brings $5.4 billion into the local economy -- and creates over 20,000 jobs.

"I can't imagine what the area economy would look like if we didn't have the market," said Tom Conley, CEO of High Point Market Authority.

Ray Wheatley and his wife Lisa own the Real Kitchen & Market, a High Point catering business. On a normal day, they have between 75-100 customers (usually picking up food for their families). During each market, they feed roughly 15,000 people.

As a result, sales during the two markets account for roughly 25% of their annual business.

But despite its success, the city is constantly fighting to keep High Point's 106-year-old foothold on the market (especially as major cities like Las Vegas have begun hosting their own). That means improving services that might come naturally for its big city competitors, like public transportation and improved bus terminals.

"Probably our single biggest challenge is to find ways to keep the market alive and keep it dynamic and to attract new people," said Conley.

The city enlists the help of the state to do so. (The High Point Market brings in over 1% of the state's GDP.)

Related: The most innovative cities in America

North Carolina appropriates $1.2 million for transportation and $650,000 for marketing each year, according to John Faircloth, a member of the North Carolina House of Representatives.

This has been key to keeping the market running smoothly -- and accommodating its out of town visitors, who account for over two-thirds of attendees. They stay an average of five days and spend $450 million annually on everything from lodging to dining to entertainment and parking, according to a 2013 survey by Duke University.

In addition to the city's restaurants and caterers, home improvement stores get a bit boost from the event. According to the Duke survey, vendors spend roughly $211 million on construction and setup annually. Conley said 20% to 25% of the year-round showrooms do some remodeling before the markets. (High Point is known as the furniture capital of the world.)

Related: Is your city the next Portlandia?

Len Burke, vice president of Klaussner Home Furnishing, says the market is a valuable investment.

The company used to showcase items at its 100,000-square-foot showroom in Asheboro, N.C. (just a 30-minute drive), but they've rented out a showroom in High Point since 2010.

Even though they only need it for two weeks, the lease runs all year. But Burke said it's worth the cost, especially since the market brings in a number of international customers.

"We spend millions of dollars a year investing in that market," said Burke. "We lease a parking garage to let customers park there. We feed them breakfast, lunch, afternoon cocktails, provide shuttle services."

While he wouldn't disclose what their return is, he said it is definitely worth it.

"I'm already planning next April."

First Published: October 20, 2014: 10:01 AM ET

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Porsche rents Sistine Chapel for Pope's charity

The Sistine Chapel hosted a corporate event for the first time in its history.

LONDON (CNNMoney)

For the first time ever, the Apostolic Palace in the Vatican -- the world's most celebrated example of Renaissance art for half a century -- can be rented out for corporate charity events. Forty Porsche enthusiasts, at $5,900 per head, on Saturday were the first group of people treated to a private tour under the Vatican's new program. The event is part of Pope Francis' Art for Charity project.

Porsche's tour is a far cry from what the average visitor gets. Most of the Sistine Chapel's 20,000 daily visitors get a quick glance at the chapel before they're rushed out in an attempt to protect its fragile frescoes. The Porsche clients enjoyed a private concert while admiring the famous ceiling painted by Michelangelo.

The event was part of an exclusive four-day tour of Rome arranged by Porsche, which is owned by Volkswagen (VLKAF). Besides the concert, it also included after-hours access to the Vatican Museums and a gala dinner "in the midst of the exhibition," a trip to the Pope's summer retreat of Castel Gandolfo and a drive to Lago di Garda in the latest Porsche models.

It was the first time any Pope agreed to rent the chapel out for a corporate event.

The Vatican rejects that description.

"The Sistine Chapel can never be rented because it is not a commercial place," Vatican spokesman Monsignor Paolo Nicolini told reporters.

Instead, the Holly See described the Sistine Chapel as "visible" for private groups.

Related: Vatican turns to Wall Street to fix bank

The Vatican hopes other companies will follow suit with similar events.

"This initiative is organized directly by the Vatican Museums and is directed at big companies," Nicolini said.

But companies hoping to hold their next Christmas party there will be disappointed -- the Vatican intends the chapel to be used for art events only.

First Published: October 20, 2014: 11:59 AM ET

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Stocks: 5 things to know before the open

HONG KONG (CNNMoney)

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

1. More pain to come? The Dow suffered its worst drop of the year last week and ended 2.7% lower. Tech stocks were particularly hard hit.

U.S. stock futures were trending lower on Monday, suggesting that a dramatic rebound may not be in the cards.

2. Fear everywhere: Investors are absolutely terrified right now, according to CNNMoney's Fear & Greed index.

Markets are particularly unnerved by the Federal Reserve's plans to end its unprecedented stimulus and low interest rate policies. Around the globe, problem spots are appearing: Germany doesn't look good; neither does Japan.

Related: Fear & Greed Index

3. No safe haven: Japan's Nikkei was closed for a holiday, but other Asian markets ended mixed despite positive Chinese trade data. European markets were firmly in the red.

4. Va-va-voom: Fiat Chrysler Automobiles, the new corporate vehicle for Italy's Fiat (FIATY) and American icon Chrysler, will make its debut on the New York Stock Exchange.

Related: CNNMoney's Tech30

5. Stay tuned: Some of the biggest companies in the U.S. are up to bat with third quarter earnings this week. Netflix (NFLX, Tech30) and eBay (EBAY, Tech30) will report Wednesday. Google (GOOG) is up on Thursday.

First Published: October 13, 2014: 5:30 AM ET

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J.C. Penney names new CEO

NEW YORK (CNNMoney)

The department store chain said Monday that Marvin Ellison, a long-time Home Depot (HD) executive, will take over the top job, replacing its current CEO Mike Ullman on August 1, 2015.

Ellison, who will join the company's board next month, takes over at a time of transition for J.C. Penney. The retailer, which has been in business for more than 100 years, has been struggling to pull itself out of a deep slump.

While Penney has been suffering heavy losses for years, its recent turnaround plan has been showing signs of progress. The company's sales rose 6.2% in the most recent quarter from the prior year, surpassing managements' expectations.

Shares of J.C. Penney had bounced back earlier this year on the positive momentum. However, slower sales in September again hurt the stock, which is down for the year.

On Monday, J.C. Penney (JCP) stock rose about 1%.

Related: Gap CEO to step down

Ullman came out of retirement last year after the troubled tenure of CEO Ron Johnson, who had come to Penney from Apple (AAPL, Tech30). Johnson tried to shake things up, but his controversial price changes and store overhauls angered its customers.

Related: Zombie retailers Sears, J.C. Penney plunge

Ullman, who had been CEO before Johnson, publicly apologized for the missteps and brought back discounts to the store.

Ellison was a top executive at Home Depot for 12 years. Before that, the 49 year-old executive was at Target (TGT) for 15 years.

First Published: October 13, 2014: 10:31 AM ET

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Elizabeth Warren: Obama's economic team chose Wall Street over 'families'

Elizabeth Warren has plenty to say about how consumers are getting a raw deal in the economy in a new interview in Salon.

NEW YORK (CNNMoney)

In an interview in Salon, Warren, who has said she doesn't plan to seek the 2016 presidential nomination, said fellow Democrats including President Obama have not done enough to help consumers.

On President Obama: Warren praised Obama for the creation of the Consumer Financial Protection Bureau, a federal agency aimed at enforcing consumer protection laws.

But she told Salon that "there has not been nearly enough change" in the wake of the U.S. financial crisis.

"He picked his economic team and when the going got tough, his economic team picked Wall Street. ...They protected Wall Street. Not families who were losing their homes. Not people who lost their jobs. Not young people who were struggling to get an education. And it happened over and over and over."

On lobbyists: Banks spend millions on "armies of lobbyists and lawyers," she told Salon, but there are few people at "the decision-making table" representing the concerns of everyday Americans.

"And when that happens -- not just once, not just twice, but thousands of times a week -- the system just gradually tilts further and further."

On student debt: Warren is a vocal proponent of student loan reform. She criticized public colleges for their high tuition and the for-profit college industry for "preying on" low-income students and military veterans.

While around 10% of students attend for-profit colleges, these schools account for about a quarter of all federal student loan dollars and are responsible for nearly half of defaults, she told Salon.

"The federal government is currently subsidizing a for-profit industry that is ripping off young people. Those young people are graduating -- many of them are never graduating -- and of those that are graduating, many of them have certificates that won't get them jobs, that don't produce the benefits of a state college education."

Could Elizabeth Warren have made it in today's America?

Elizabeth Warren: The market is broken

First Published: October 12, 2014: 4:56 PM ET

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Inside the head of Apple's top designer

NEW YORK (CNNMoney)

Apple's design chief talked about how he works in a recent interview with Vogue, offering his thoughts about the late Steve Jobs, the creative process and the planned 2015 release of the company's first wearable device, the Apple watch.

His partnership with Jobs: Ive, who became Apple's top designer in 1996, was thinking of quitting in the late 1990s. But Jobs convinced him to stay. The pair "just clicked," Ive told Vogue, and created a new generation of Apple products.

"When you feel that the way you interpret the world is fairly idiosyncratic, you can feel somewhat ostracized and lonely, and I think that we both perceived the world in the same way."

His design philosophy: Both Jobs and Ive agreed that technology should be approachable -- a philosophy that was especially clear from their first hit -- the iMac computer.

"I think what we sincerely try to do is create objects and products and ideas that are new and innovative, but at the same time there is a slightly peculiar familiarity to them."

Apple's Jony Ive

Why he can't design in silence: Ive told Vogue that he works best against the background of the rhythmic sounds of techno music.

"I find that when I write I need things to be quiet, but when I design, I can't bear it if it's quiet."

His favorite feature of the Apple watch: The promise of the Apple Watch is that it will do everything from track your steps to let you pay for your coffee.

But Ive said he is particularly interested in a mechanism inside the watch that will let users transmit their own heartbeats to other people wearing the watch. He told Vogue the feature is a reaction against how "technology tends to inhibit rather than enable more nuanced, subtle communication."

"You feel this very gentle tap, and you can feel my heartbeat. This is a very big deal, I think. It's being able to communicate in a very gentle way."

Related: Rich, white guys are buying iPhone 6

Related: How we made nearly $1 million on Apple stock

First Published: October 12, 2014: 1:05 PM ET

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Can this app cure loneliness?

Entrepreneur Sam Feuer's app Smacktive is a social networking app focused on activities.

NEW YORK (CNNMoney)

Smacktive, which launched out of beta on Monday, could help remedy loneliness -- and counter another epidemic while it's at it: obesity.

The app helps people find others nearby to do completely platonic activities with. Think Tinder meets Meetup.

People post 140-character statuses about the type of activity they'd like to do, set a time frame, and either wait for people nearby to respond or check out what others are up to. Users can filter by gender, distance, age -- and in-app messaging lets users coordinate details for meeting up. It's currently available around the country, but Feuer imagines it'll be most popular in major cities. (It's currently just available on iOS but versions for Android and the web will roll out soon.)

Loneliness is one of the biggest healthcare issues today, and research shows that it can contribute to things like dementia and heart disease.

That's why Pete Moore, the founder and managing partner of Integrity Square, was particularly interested in Smacktive.

Related: NYC startups just got easier to navigate

When Moore attended the Clinton Foundation's Health Matter Conference in January, one speaker asked the question: "What's the biggest issue in the healthcare industry?"

Bruce Broussard, president and CEO at Humana (HUM), shouted out in response, "loneliness."

Call it serendipitous, Moore was introduced to Feuer in later that month through a mutual acquaintance and they discussed the concept behind Smacktive, which Feuer was building.

"I'm a big Uber user so we talked about, 'What if we're able to GPS locate people and not just have them go to clubs -- but have it be fitness-related?'" said Moore.

Related: Is Ello the anti-Facebook?

Feuer's idea also strongly resonated with Moore on a personal level.

Moore moved from New York to Manhattan Beach, Calif., about a year ago and has struggled to find people to do activities with.

"I ended up getting a tennis instructor because I didn't have an avenue to find someone who was available to play," said Moore, whose firm now holds a 30% stake in Smacktive (although he declined to say the amount of the investment).

This sentiment is universal -- and one that hits close to home for Feuer. In his younger years, he struggled finding others who shared his interests.

Growing up as a Jewish kid on welfare in a primarily Italian Brooklyn neighborhood, Feuer recalls always feeling different than his peers, wishing he could meet like-minded people.

"At 12 or 13, I thought, 'There are probably millions of people that felt the same way I do,'" said Feuer, who has launched over 20 apps to date and also heads up MindSmack, an interactive agency he founded in 1999.

"People need drive, motivation, and purpose. This helps do that -- and reduce depression and obesity by getting up and out. They just need a 'healthy smack' to get up and do it."

First Published: October 13, 2014: 11:59 AM ET

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It pays to be a dad

NEW YORK (CNNMoney)

Men with children earned 40% more than their childless counterparts in 2010, according to a new study by The Graduate Center, City University of New York. And they made nearly twice as much as mothers.

Dads had a median salary of $49,000 compared to around $29,000 for men without kids.

Part of reason for the wide differential between dads and non-dads is that fathers tend to be older and more established in their jobs and command higher wages. But the gap persists even among men in the same age group.

Dads in their prime earning years, ages 35 to 49, had a median personal income of $54,500. Childless men in that age group had only $36,000 in income.

Overall, 92% of dads are employed full-time compared to 77% of non-dads, who are more likely to be part-time workers. Also, more fathers are in management and professional jobs, while a larger share of childless men are in service, sales and office positions.

Related: Are you really middle class?

It may not be that surprising that moms make much less than dads, but mothers still make more overall than childless women. Median personal income among mothers in 2010 was just over $25,000 compared to $20,165 for women without kids.

However, moms pulled ahead only because they tended to earn a lot more during their early working years.

The findings suggest that dads are getting a boost on the job that others aren't seeing.

"Parenthood is giving advantages to men but not to women," said Justine Calcagno, a social psychologist and author of the report.

First Published: October 13, 2014: 7:59 AM ET

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French economist wins Nobel for tackling monopolies

French economist Jean Tirole has spent 30 years studying how a small number of large firms can dominate markets -- and how governments should respond.

LONDON (CNNMoney)

Tirole, a former MIT student, is head of economics at Toulouse University, France.

The award, announced Monday, is the first time since 1999 that an American-born economist didn't win or share the Nobel.

Tirole has spent the last 30 years studying how a small number of large firms can dominate markets and the damage that can do -- and how governments should respond.

He argues that the best regulation is adapted to the conditions of each industry, such as telecoms and banking, rather than trying a one-size-fits-all approach.

Traditional solutions, such as capping prices or banning cooperation altogether, could do more harm than good.

"Cooperation on price setting within a market is usually harmful, but cooperation regarding patent pools can benefit everyone," the Nobel committee said. "The merger of a firm and its supplier may encourage innovation, but may also distort competition."

Thomson Reuters named Tirole one of the world's most influential academics this year in a survey of the frequency of citations by peers.

Tirole co-authored "Balancing the Banks: Global Lessons from the Financial Crisis" in 2010 with Mathias Dewatripont and Jean-Charles Rochet. They proposed changes to the way banks are regulated, and urged closer international coordination in dealing with banks that get into trouble.

The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel, worth about $1.1 million, is awarded by Sweden's central bank.

Last year, Robert Shiller -- the Yale professor famous for predicting the housing and Internet stock bubbles -- won the prize along with two University of Chicago professors for their work on the pricing of financial assets.

They concluded that while predicting the price of stocks and bonds is virtually impossible in the short term, it is possible to predict the broad course of prices over longer time spans.

The only woman to win the award was Elinor Ostrom of Indiana University. She shared the prize in 2009 for her work showing communities could manage shared local resources such as land and water without heavy centralized regulation or privatization.

First Published: October 13, 2014: 7:28 AM ET

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Can't do math? Dance it out

NEW YORK (CNNMoney)

Parental encouragement; "It may be challenging now, but you'll thank me when you run a bank/ build a city/ cure cancer/ go into space," fell on deaf ears. When you're 16, you figure you'll be a huge success with or without geometry. Or without trying that hard in general. And that you'll be rich, and famous, and married to a movie star.

Oh to be 16 again.

A 2011 by the Department of Commerce found just 24% of those pursuing a career in science, technology, engineering or math (frequently known as "STEM") were women. A major missed opportunity for us ladies, particularly given that according to the same report, women in STEM earned on average 33% more than those in other fields.

Related: 6 things you need to know about STEM

A troubled relationship between girls and math, which forms the cornerstone of STEM, was evident to MIT graduate Kirin Sinha from a young age.

"In middle school, I was in a calculus class where I was one of the only girls," she recalls. "Even at MIT where everyone on some level is involved in STEM, I found I was the only girl in a lot of my math classes. That's something that always bothered me."

Numerous studies have been done to try and identify why girls struggle with math, starting in middle school. There are various theories, including waning confidence at that age, gender stereotypes suggesting math is "for boys," and a difference in how boys and girls react to teaching methods.

Sinha formed her own opinions.

"When I was tutoring girls and guys, the big difference I would see is boys would say, 'I don't understand geometry, I don't understand fractions,' and girls would say 'I can't understand this.'"

In addition to the self-perception problem, Sinha suspects it's also due to falling self confidence among girls wanting desperately to "fit in."

Related: Few female engineers and execs at Google

Struggling to understand why she felt comfortable in math where other girls did not, Sinha identified one standout factor: her love of dance, an activity she's taken part in from a young age.

"A lot of times in math classrooms you don't want to be the girl who stands out. [But] what I had gotten from dance was the exact opposite mentality," she explains. "You WANT to be the girl in the spotlight, you want to work as hard as you can and practice as much as you can so you are noticed."

Sinha realized that not only did dance boost confidence, but that movement in general had been integral to her ability to learn.

That Eureka moment became the birth of SHINE, a tutoring program Sinha began while at MIT. It incorporates dance, movement and math in a new approach designed to boost girls' confidence and performance.

The basis for SHINE is the concept of "Kinesthetic learning," which essentially means moving your body in order to better retain information.

Interested middle school girls come to the program after school, and work with mentors on activities that put math concepts into action. They might, for example, hold hands to create a shape on a grid, then move to reflect the shape across an axis drawn on the floor. Playing games using corners and instructions helps show how probability works, and choreographed dance moves illustrate the principles behind trigonometry.

Later, they work out math problems on the board based on what they learned, and frequently finish with a break-out dance session just for fun. When I was there, they learned a routine to Taylor Swift's "Shake It Off," then tweeted a video of the results to the singer.

"Before we had this it was more like, 'Only the nerds do math,'" said Molly Calkins. "But now it's like even if you are a nerd you can still have fun doing the dance and then you're less in that stereotype."

Complete coverage: The science of work

Sinha says the results speak for themselves.

"We saw an almost 300% improvement in their math scores, we saw over 100% improvement in confidence," she says. In fact, the program is so successful it's expanded beyond the Boston area to DC, with plans for branches in Florida and other major cities.

For Sinha, a key goal is to make the program available to students from all backgrounds -- giving girls from low income families another stepping stone to a potentially high paying STEM career.

Finding ways to keep girls interested in math is something the White House has its' eye on also. Concerned with falling behind other countries like Russia and China in technology and innovation, the Obama administration has invested billions to boost the number of students in STEM, with particular emphasis on girls, in their 'Educate to Innovate' campaign.

Sinha says she hasn't talked to the president yet, but she hopes he'll give her a call.

In the meantime, the positive results go way beyond statistics for Sinha.

"If you actually talk to these girls, you see how much they changed," she says. "You see a girl who wouldn't say anything at the start, who was very shy, very reserved. At the end, [they're] raising their hands not just to ask a question but to address the group and take leadership. Those are the kinds of changes that are actually going to move the trajectory of someone's life."

First Published: October 13, 2014: 10:13 AM ET

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AT&T wants you to design your own Internet fast lane

AT&T says its plan is "entirely in keeping with the Internet's history and structure."

NEW YORK (CNNMoney)

With regulators still working to craft rules on net neutrality, the telecom giant has sent a proposal to the Federal Communications Commission for so-called "Internet fast lanes" created at the discretion of users, not Internet providers.

That means you could direct your Internet provider to prioritize Skype calls over online gaming, or Netflix over email.

The FCC has already received hundreds of thousands of comment letters on the subject, and will likely finalize its rules within the next few months.

Activists and Web companies like Reddit and Netflix (NFLX, Tech30) have been up in arms over a draft of the pending FCC rules circulated earlier this year. The draft rules would allow Internet service providers like AT&T (T, Tech30) and Comcast (CMCSA) to seek payment from websites to load their content faster than that of competitors; Amazon (AMZN, Tech30), for example, could cut a deal with Comcast to make sure it loads faster than eBay (EBAY, Tech30).

The worry is that a system like this would stifle innovation by entrenching the advantages of established, deep-pocketed websites over upstart competitors. That's what net neutrality is all about -- the principle that Internet service providers should treat all content equally.

Related: Verizon drops plan to throttle data hogs

What AT&T has proposed is something slightly different: The FCC could ban Internet service providers from making decisions about which sites get "fast lane" treatment, but leave that option open for consumers.

"Leading net neutrality proponents already have distinguished between these scenarios, because even they recognize that user-driven prioritization can enhance consumer welfare and should be permissible," AT&T said in a filing with the FCC last month.

AT&T is right that groups like Free Press and the Center for Democracy and Technology have expressed cautious support for user-created fast lanes even while opposing their creation by Internet providers.

The catch is that, although AT&T isn't saying so directly, it and other Internet companies would likely still look to collect fees from websites whose content gets designated by users for fast-lane treatment.

"What AT&T seems to be saying is that if you want to prioritize Skype or Zynga (ZNGA), it should be able to go to that company and say, 'Pay up,'" said Matt Wood, policy director at Free Press.

Related: FCC chief says no to mobile mergers

That arrangement could still put smaller, cash-strapped companies at a disadvantage if they can't afford the fees from Internet companies and therefore aren't eligible for "fast lane treatment."

It could also mean higher costs for services like Netflix if they and other content providers attempt to recoup some of what they pay to Internet providers.

The Center for Democracy and Technology is also wary of AT&T's proposal. Erik Stallman, director of the CDT's Open Internet Project, said that while the organization "support[s] technologies that empower consumers in how they access Internet content ... that support should not be taken as endorsement of any particular approach."

So while AT&T's proposal goes some way toward bridging the gap between the two sides, there's a lot yet to be hashed out.

First Published: October 13, 2014: 10:30 AM ET

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Chrysler finally returns to U.S. stock market

NEW YORK (CNNMoney)

Shares of Fiat Chrysler began trading on the NYSE Monday under the ticker symbol FCAU. Fiat Chrysler opened at $9 and quickly moved as high as $9.55 before pulling back a bit.

Chrysler hasn't been publicly traded in the United States in more than seven years. At that time it was known as DaimlerChrysler. Daimler (DDAIF) agreed to sell Chrysler to private equity firm Cerberus in 2007.

Fiat's stock had previously traded as Fiat SpA (FIATY)in Milan and the United States. Those shares have outperformed GM (GM) and Ford (F) so far this year, largely due to the resurgence of Chrysler -- the smallest of Detroit's Big Three.

Chrysler reported a sales increase of 19% in the United States last month compared to a year ago. That is Chrysler's 54th consecutive month of year-over-year sales gains.

The company has done particularly well with larger vehicles, which are becoming more popular again as gas prices fall. Jeep sales are surging, as are sales of Chrysler's Ram trucks.

Related: Ford shares shift into reverse

Chrysler has turned its fortunes around since Fiat, led by enigmatic CEO Sergio Marchionne, took control of the company following its 2009 bankruptcy. Fiat initially purchased a 20% stake in Chrysler and now owns the whole company. The combined business is profitable as well, no small feat given how bad things got during 2008 and 2009.

But can Fiat Chrysler grow further? Right now, it still is just the seventh-largest automaker in the world by sales. In addition to trailing Ford and GM, it's also smaller than Toyota (TM), Volkswagen (VLKAF), Renault-Nissan and Hyundai-Kia.

Marchionne hinted in a recent interview with Bloomberg Businessweek that there could be more consolidation in the auto industry and that Fiat Chrysler could be a buyer.

There has been chatter over the past few years about the possibility of a combination between Fiat and Honda (HMC) or Suzuki (SZKMF). Fiat also announced a partnership with Mitsubishi Motors last month in which Mitsubishi will produce new midsized pickup trucks for Fiat in Europe and Latin America. Could a full-blown merger of the two be next?

Any of these would be a bold deal that could catapult Chrysler ahead of Ford in the global sales rankings.

Marchionne has said that he plans to step down as Fiat Chrysler CEO in 2018. So if he wants to do another huge deal to make the company even bigger, he's only got a few years to add to his legacy.

First Published: October 13, 2014: 11:08 AM ET

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Female Nascar engineer makes science cool

NEW YORK (CNNMoney)

These drivers come from varied backgrounds and have different styles behind the wheel, but they have one thing in common: They all share the same lead engineer.

Alba Colon, the daughter of a doctor and a teacher, grew up in Puerto Rico dreaming of becoming an astronaut.

"I was always interested in space," she said. "My model was Sally Ride. So I wanted to be like her. I used to have a poster of her in my room."

She pursued her dream and gained a degree in mechanical engineering, but somewhere along that path she hit what she calls a "happy detour." During college she became active in the Society of Automotive Engineers and realized that she enjoyed something else as much as she loved space.

"I started to fall in love with vehicles and with the racing side," she said.

Related: Preparing low-income youth for tech jobs

In 1994, she became a data acquisitions engineer for General Motors (GM). In the twenty years since, she's worked her way up the ranks within GM's NASCAR program. She is now the lead engineer for Chevy Racing -- one of the sport's most successful teams.

As lead engineer for the NASCAR Sprint Cup Series for Team Chevrolet, Colon manages the technical resources GM provides all of its NASCAR Sprint Cup Race Teams. Colon and her team are constantly striving to innovate and improve things like the design bodies, engine parts and software to give them an edge on the track. She also serves as the main liaison between the teams and NASCAR.

And it's fair to state the obvious -- she's a double minority -- a Hispanic woman in a world traditionally full of white men. But take a walk through the garages with her and it's clear that she's not only earned their respect and her place but she is truly beloved.

Colon is now a champion several times over but, more importantly, she is a leader, which she knows comes with responsibility. She uses the platform to share her story in hopes of inspiring others. Colon speaks often at universities, Hispanic initiative events at GM, diversity programs hosted by NASCAR and, less formally, at elementary schools. It's here she hopes she can do the most good by reaching children young.

"Many of these students, the examples they have at home is parents that didn't finish school," she said. "So I want to show them hey, I am a Hispanic kid and I worked hard to get where I am. You can be like me. You don't have to stop when you finish high school. You can keep going."

Related: 6 things you need to know about STEM

Colon also hopes to show these kids the value of hard work. It's a value she feels is all but lost on today's youth.

"This is the generation of 'I want everything now,'" she said. "And I will try to say so they understand that you have to work for what you want. You cannot go and get everything immediately. Hard work and study got me to have a fun job today."

She understands that there's a stigma that comes with careers under the STEM umbrella—science, technology, engineering and math. And ridding society of the stigma requires an early start too.

"When you are studying a lot and you're good in math and science, what do they call you? They call you a nerd right? So we as a society have to change that—hey, it's cool to be a nerd."

Colon hopes that by bringing students into her world, race cars can help make science cool. And she already sees the landscape starting to change.

Related: How immigrant entrepreneurs are making it

"When I started, there were not too many engineers," she said. "[Now] every team has engineers. Not one, many. Some of the crew chiefs are engineers, and we even have a driver that's an engineer."

The driver she's referring to is the highly decorated Ryan Newman who also holds an engineering degree from Purdue University. Newman has even joined Colon to help spread the message that jobs in scientific fields can be far cooler than the boring reputation they often get.

"My engineering degree has helped me," Newman said. "I know it's important for all of our teams to have that background of physics and understanding of the race car."

Colon's efforts to show children that the path of success is through dedication, hard work and education is a message she hopes their parents are listening to as well.

"I talk not only to the kids but to the parents because you know one thing that was key for me was to have my two parents to support me. All the time."

She credits her father specifically for her love of math and science.

"I remember spending a lot of time with my father studying," she said. "He said that math is beautiful. ... I am still trying to figure out the beauty of math completely, but with the numbers and science -- that's where everything gets started."

First Published: October 6, 2014: 9:53 AM ET

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Waldorf Astoria sold to Chinese company for $1.95 billion

The Waldorf Astoria has been a symbol of luxury for decades.

NEW YORK (CNNMoney)

Conrad N. Hilton acquired the iconic luxury hotel 65 years ago and on Monday Hilton Worldwide (HLT) announced its sale to Anbang Insurance Group. Hilton will continue to operate the Waldorf for the next 100 years under a "strategic partnership" with the Beijing-based company.

The Waldorf Astoria will undergo a "major renovation" to restore the hotel to its "historic grandeur," according to a joint statement from Hilton and Anbang.

Related: Five-star stays in...hospital suites

The Waldorf Astoria is the flagship of Hilton's 27 luxury hotels around the world.

It first opened in 1893 on the site of millionaire William Waldorf Astor's Fifth Avenue mansion. Waldorf's cousin and fellow millionaire John Jacob Astor IV reconstructed the hotel a few years later at a nearby location. The hotel fell into disrepair during prohibition and was torn down in 1929, making way for another landmark: the Empire State Building.

The Waldorf is a cultural icon and has hosted foreign heads of state for years. It was featured in a 1945 film staring Ginger Rogers called "Week-end at the Waldorf."

Legend has it that the Waldorf salad was invented by the maître d'hôtel of the Waldorf Astoria in 1896.

The hotel is home to restaurants where New York's elite dine such as Peacock Alley, Bull and Bear Prime Steakhouse and Oscar's.

Related: How to be a super rich family's concierge

The Waldorf Astoria has been at its current location on Park Avenue since 1931. While Conrad Hilton purchased the management rights to the hotel in 1949, Hilton Worldwide did not become the owner until 1972.

Hilton plans to open nine more swanky hotels globally in locations that range from Bali and Bangkok to Beverly Hills. The company said it will use the proceeds from the Waldorf sale to fund future purchases.

First Published: October 6, 2014: 10:40 AM ET

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Now at Wal-Mart: Health insurance advice for customers

NEW YORK (CNNMoney)

The firm, DirectHealth.com, will have agents in 2,700 Walmart stores to help answer customers' questions about plans and enroll them either online or by phone.

"For years, our customers have told us that there is too much complexity when it comes to understanding their health insurance options," said Labeed Diab, president of Wal-Mart's (WMT) health & wellness unit.

The company said research from the Kaiser Family Foundation shows 60% of people have difficulty understanding their health insurance options and nearly 40% believe they picked the wrong plan after enrollment.

Related: Health care costs hit Wal-Mart profits

DirectHealth will help customers who are age 65 and older weigh 1,700 Medicare supplement plans from 12 leading carriers. Open enrollment for those plans runs from Oct. 15 through Dec. 7.

Those under age 65 will have access to thousands of health exchange plans from more than 300 companies. The open enrollment period for those customers takes place from Nov. 15 to Feb. 15.

First Published: October 6, 2014: 7:59 AM ET

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Why I quit Wall Street to open a restaurant

Former hedge fund trader Jon Schiff, left, with his cousin and chef, Gabe Lava.

NEW YORK (CNNMoney)

The 34 year-old quit his high pressure finance job on a Monday. By Wednesday, he was living on an organic farm in rural Illinois, baling hay and tilling the fields.

"I'm a city kid who sat behind a desk. There are no callouses on my hands. I was biting my lip because it hurt so bad," said Schiff. "But it's amazing to feel what a hard day's work is like."

The experience inspired the idea for Real Good Juice Company, the cold pressed juice restaurant that he opened up in Chicago this summer.

"I didn't love what I was doing," said the former hedge fund derivatives trader. "It was an opportunity to work and create something around active healthy living."

Related: Kale and chia seed juice boosts Jamba

Schiff is part of a crop of young Wall Street-types giving up the prestige and hefty paycheck of the investment world for a life in the notoriously hard-to-survive food business.

CNNMoney caught up with a few of these "finance-to-food" entrepreneurs to find out why and how they're doing it.

Colleagues reactions: When Jeremie Banet left his job as a portfolio manager at bond fund Pimco in May with plans to open up a food truck, the reception from colleagues was mixed.

"The people that knew me very well were not totally surprised....they know I'm trying to maximize my happiness rather than my income," said Banet, who is awaiting the final permits to operate a truck, called Monsieur Madame, with his wife and chef Nissa. "People that were money-centric didn't understand it."

Monsieur Madame will feature baseline French cuisine with influences from Eastern Europe and North Africa, an homage to Banet's Ashkenazi Jewish heritage and the Algerian roots of his wife's family.

The pair, who are from France but met in the United States while working at the bank BNP Paribas hope to be up and running in Southern California in early 2015.

Jeremie and Nissa Banet with their children.

Learning curve: Even for savvy investors, managing a restaurant is a whole different ball game. Luke Holden opened up Luke's Lobster in late 2009 in a 300 square foot location in New York's hip East Village neighborhood while he was still working as a junior investment banker.

The concept was simple: to serve high quality fresh lobster rolls at affordable prices.

The Maine native knew a lot about lobster from his father, who had worked in the business as a fisherman, dealer, and processor, but he had zero restaurant experience. "We were learning from the ground up," he said.

He's found considerable success, and is about to open his 14th location. The similarities between the food industry and investment banking are actually aplenty, according to Holden.

Related: Want a job on Wall Street? Go to UPenn or Georgetown

In banking as in hospitality, "you take a big project, divvy up the responsibilities, figure out the best members of the team to do the job," he said. "It also takes a lot of creativity to solve problems, not a lot of deals are routinely solved with the same answer."

Risky business: Of course, the restaurant business is no piece of cake. A bad review from a foodie blogger or unhappy customer can break you. But as one-time market gurus accustomed to dealing with risk on a daily basis, all the restauranteurs seemed to be well aware of the gamble involved.

Related: Bay Area restaurant: "Hate us on Yelp"

"This is a learning experience. We're doing something new, we're doing something that's fun and exciting," said Nissa. "We think it's okay if we fail. We're going to learn a lot, and we're going to have a good time."

Her husband added that the couple "saved during the good years" and lived a "reasonably frugal" lifestyle by Wall Street standards, so they're in comfortable shape financially, regardless of how things turn out with their new venture.

No going back: None of the former investment pros regretted making the switch and can't imagine going back to their previous lives.

"A lot of traders come into the restaurant, and it's nice chatting with them about markets, but next to the friends I made across the Street, there's not much that I miss," asserted Schiff, using the industry shorthand for Wall Street. "I still can't believe it's my job to go to the farmer's market. I'm still taken aback that I can call this work."

As the most seasoned of the group, Holden contended that like in any career, networking is key in the restaurant business. He even suggests finding a mentor.

"I've certainly found the hospitality industry to be extremely welcoming. It gets a bad rep for being closed door and being extremely competitive," he said. "Network, pay it forward. That strategy has created a lot of friends and great business contacts that we've certainly benefited from."

First Published: October 6, 2014: 7:09 AM ET

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AIG trial puts Geithner, Bernanke and Paulson on hot seat

Timothy Geithner, Hank Paulson and Ben Bernake will testify in a lawsuit charging that the $182 billion bailout that saved AIG was unfair to its shareholders.

NEW YORK (CNNMoney)

But former CEO Hank Greenberg has a different beef. He argues that the terms of the bailout that kept AIG from going under were too harsh.

Greenberg sued the federal government in 2011, challenging the terms of AIG's rescue. The case has finally gone to trial, and his lawyers are preparing to grill a list of star witnesses about their efforts to save the company amid the financial crisis.

Former Treasury Secretaries Hank Paulson and Tim Geithner, as well as former Federal Reserve Chairman Ben Bernanke, will take the stand this week in Washington's U.S. Court of Federal Claims to defend their actions.

When the government bailed out the insurance giant it took an 80% stake in the company, significantly diluting the stakes of existing shareholders. Greenberg, who is one of AIG (AIG)'s largest shareholders, has long complained that this shortchanged stockholders.

Related: Taxpayers made $52 billion profit on Geithner's bailouts

The government did ultimately make a $22.7 billion profit on the AIG bailout. But if the company had gone bankrupt, shareholders would have been wiped out altogether.

Greenberg's lawyers, led by superstar attorney David Boies, said in opening arguments last week that while the too big to fail banks like Citigroup (C) and Morgan Stanley (MS) got billions at virtually no cost, AIG was charged "an extortionist's interest rate" of 14% for political reasons.

"What they have tried to do....is to demonize AIG, to suggest that somehow AIG was the poster child for the problems during the financial crisis," Boies said.

Treasury has sought to have the case dismissed repeatedly since it was filed, but lost.

An attorney for the U.S. government argued that federal officials had to bail out AIG, because allowing it to fail would have threatened the world's economy. But, he added, that doesn't mean that AIG was entitled to get a bailout on its own terms.

"We call this a rescue loan, but the goal was not to save AIG. The goal was to save the world from AIG," said U.S. attorney Kenneth Dintzer. He added that Greenberg and other plaintiffs accepted the terms of the bailout, but now that AIG has recovered, they're seeking a "$40 billion windfall."

First Published: October 6, 2014: 9:29 AM ET

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HP to split into two companies

NEW YORK (CNNMoney)

HP (HPQ, Tech30) announced Monday that it plans to put its PC and printer operations under one roof under the name HP Inc., and its business that provides software and services to corporate customers under another under the name HP Enterprise.

The company said the split will give both companies the focus, financial resources and flexibility to adapt more quickly to the market, while also raising the stock value for shareholders.

"Being nimble is the only path to winning," CEO Meg Whitman said on a conference call with investors Monday.

Shares of HP jumped more than 4% in early trading following the announcement.

The split is expected to be completed by the end of 2015. News of the split was first reported Sunday by The Wall Street Journal.

The split follows a number of spinoffs and breakups this year. Most recently, eBay (EBAY, Tech30) announced last week it would spin off the online payment platform PayPal, which it bought in 2002.

Whitman took the helm in 2011 and unveiled a five-year restructuring plan. That included a major overhaul of the printer and PC business in 2012. Layoffs have totaled at least 45,000, and the company's projected savings have reached $4.5 billion per year.

Whitman said that the financial success of recent years is what makes a split into two companies possible.

"Three years ago this company was in a difficult situation and we needed to rebuild and do so as one HP," she said. "Today was made possible by our turnaround."

Related: Big companies that are making big job cuts

Whitman's predecessor, Leo Apotheker, considered a corporate split similar to the one announced Monday, but he left the company after only 11 months.

Whitman will have leadership roles at both companies, serving as CEO of HP enterprise business and chairman of HP Inc.. Dion Weisler, the current executive vice president of HP's printing and personal systems business, will become CEO of HP Inc.

The two companies will be roughly equal in size. Each will have revenue of just over $57 billion and profits of more than $5 billion. But the split might not be the only move the company makes in the next 12 months. Chief Financial Officer Cathie Lesjak told investors Monday "We will be actively looking at [mergers and acquisitions] throughout the year."

Some investors applauded the potential move.

The split would allow HP to be more "nimble" and let it "reshape" its business, said Brendan Connaughton, chief investment officer at ClearPath Capital Partners.

In particular, Connaughton said, the move would put renewed focus on enterprise services, "where they have incredible margins," sometimes upward of 20%.

HP shares struggled for several years amid turmoil at the top of the company. Whitman, the former boss at eBay, was named CEO in 2011, making her the fourth leader in just seven years.

But she has helped to turn around its fortunes, as shares have tripled in value since hitting a low point in late 2012.

HP is among the top five performers in CNNMoney's Tech 30 index, which tracks significant tech companies. Its stock has climbed nearly 26% this year alone, bolstered by earnings that have climbed even as sales slumped.

--CNN's Paul LaMonica and Dave Goldman contributed to this report

Related: Whitman among CEOs who take $1 salary

First Published: October 6, 2014: 7:04 AM ET

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Disney bails out its European theme park

LONDON (CNNMoney)

For the second time in three years, Walt Disney (DIS) has been forced to ride to the rescue of Disneyland Paris -- this time by leading a billion euro ($1.25 billion) refinancing of park operator Euro Disney.

Since opening in 1992, the theme park east of Paris has become Europe's top tourist attraction by visitor numbers.

But the dream has turned into a nightmare for Disney and other investors.

Attendance has been hit by Europe's economic crisis, leaving the company struggling to invest in new attractions while servicing its massive debts.

Related: The 'Disney economy' is back

Visitor numbers are expected to fall to around 14.1 million this year, 800,000 fewer than in 2013.

Hotel occupancy rates are also slumping -- down to 75% from nearly 80% last year. Euro Disney expects to lose between 110 million and 120 million euros this year.

Walt Disney owns about 40% of its European subsidiary. By guaranteeing a capital increase and converting existing debt into equity, it could end up owning the entire company, depending on whether or not other investors choose to take part in the bailout.

Saudi Prince Alwaleed Bin Talal is the second largest shareholder, with a stake of 10%, according to FactSet.

Euro Disney has a market value of about 124 million euros, and owes Disney 1.75 billion euros.

First Published: October 6, 2014: 9:21 AM ET

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NBA renews television deals with ESPN, TNT

Thanks to the new TV deal, players like LeBron James may be making more money.

NEW YORK (CNNMoney)

On Monday, the league renewed its partnerships with the Disney-owned ESPN and the Time Warner-owned TNT networks well into the next decade, once again demonstrating the ballooning value of live sports to television broadcasters.

The new deals, first reported by the Wall Street Journal on Sunday night, are said to be worth nearly three times as much as the existing deals between the league and the networks. (The NBA's last negotiation with ESPN and TNT, back in 2007, resulted in an eight-year, $7.44 billion deal.)

The new deals are for nine years; they will take effect in 2016 and extend through 2025. They include new ways for ESPN and TNT to extend the NBA rights on the Internet.

"This is a significant deal for our company and we are pleased to continue our long-standing partnership with the NBA, its fans, owners and players," said David Levy, the president of Turner Broadcasting, which includes TNT and CNN.

"By acquiring significantly more NBA content for both existing and yet-to-be created platforms, we will establish a vibrant, year-round NBA presence for fans," ESPN president John Skipper said in a statement.

Disney's ABC broadcast network will keep exclusive rights to the NBA finals; ESPN and ABC will together televise 100 games each regular season, up from 90 in the existing agreement.

The most intriguing part of the ESPN pact is the future launch of an Internet video service for the NBA. No details were provided on Monday, but it might resemble what the NBA already sells on the Internet: packages of out-of-market basketball games.

Other deal sweeteners, according to ESPN, include "increased team appearances" and wider rights to replay footage from games.

As for Turner, TNT will televise 64 games a year, up from 52 in the existing agreement. This includes Opening Night and the NBA All-Star game.

Turner will continue to manage the NBA's digital assets, including the NBA TV channel and NBA.com. The company said the new deal gives it the "opportunity to develop and distribute new NBA content and programming for Bleacher Report," a sports web site that Turner acquired in 2012.

Monday's announcement had been awaited for months, as the NBA rights amounted to the last major sports TV deal coming due before 2020.

The renewals are the first major deals for new NBA commissioner Adam Silver, who took over the league from David Stern earlier this year.

And the deals have implications for teams and players via its effect on the BRI (Basketball Related Income) and the NBA's salary cap, two systems set up to control how much teams are allowed to spend on players.

For example, 2013 NBA MVP LeBron James only signed a two-year contract upon returning to the Cavaliers this past summer. James can potentially make significantly more money once the new contracts with ESPN and TNT take effect.

First Published: October 6, 2014: 10:07 AM ET

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The Donald wins. Trump name coming off casino

In Atlantic City, Trump Plaza Casino's facade - or what remains of it - is coming down.

NEW YORK (CNNMoney)

"We have a very high standard and they didn't meet it," Donald Trump said, in an interview to CNNMoney. "We essentially won the suit."

It's a success for Trump (the man, not the casino) who sued Trump Entertainment Resorts, the company that runs Trump Plaza Casino. The real estate mogul wanted his name removed from two of the Atlantic City casinos: Trump Plaza and the Trump Taj Mahal.

"The process of removing the letters from the building is beginning today and the project should take a few weeks," said Brian Cahill, spokesman for Trump Entertainment Resorts.

Related: Trump Plaza files for bankruptcy

The Taj Mahal is expected to close down on Nov. 13, or shortly thereafter.

Trump originally built and owned both the casinos, before selling them seven years ago. He has since been licensing his name and image to the company that bought the casinos.

Trump's lawsuit, filed in August, accused the company of neglecting the casinos and allowing them "to fall into an utter state of disrepair." The neglect violated the license agreement, under which the brand's "superior reputation" must be used in a "dignified manner" consistent with the "highest quality."

Related: Revel sold at bankruptcy auction

Trump Plaza went out of business in September, becoming the fourth casino in Atlantic City to shut down this year, putting 8,000 people out of work.

One of the shut-down casinos - Revel - was sold at bankruptcy auction for $110 million on Oct. 1 to Brookfield Asset Management.

"Atlantic City needs a total remake," said Trump.

First Published: October 6, 2014: 11:23 AM ET

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Breaking up is the latest Wall Street craze

NEW YORK (CNNMoney)

Hewlett-Packard's decision to split into two companies is just the latest in a series of corporate breakups.

Ironically enough, the last company that HP (HPQ, Tech30) CEO Meg Whitman led, eBay (EBAY, Tech30), disclosed plans last week to spin off PayPal -- which was bought under Whitman's watch in 2002.

Considering that HP's stock was up more than 4% Monday on the news and eBay surged 7.5% the day it announced its split, expect more spinoffs. Big companies live and die by the "me too" copycat strategy.

If the stock market were a washing machine, we're definitely in the middle of a "spin cycle" right now.

Joe Cornell, publisher of Spin-Off Research, a firm that tracks corporate splits, said that this is shaping up to be the biggest year for spin-offs since 2000. And it's not just technology companies that are selling off pieces of themselves either.

The biggest spin-off this year was GE's (GE) initial public offering for its credit card unit Synchrony Financial (SYF).

Related: Baby GEs? General Electric may need a breakup

CNNMoney owner Time Warner (TWX) spun off its publishing unit Time Inc. (TIME) a few months ago. And another media company, USA Today publisher Gannett (GCI), plans to separate its newspapers from its TV station business.

Several well-known consumer companies have announced breakups or are in the process of doing so. Struggling retailers Sears (SHLD) spun off Lands' End (LE) -- and Lands' End has thrived since being set free from Sears.

Kleenex maker Kimberly-Clark (KMB), Hertz (HTZ), Barnes & Noble (BKS) and Energizer (ENR) are also planning to spin off units.

So who could be next to split? Cornell thinks energy companies Apache (APA) and Babcock & Wilcox (BWC) could be candidates for a breakup. Babcock & Wilcox has already said it is considering a split and both it and Apache are facing pressure from activist hedge funds to boost returns.

Cornell added that more telecoms could follow the lead of Windstream (WIN) and spin off landline units into real estate investment trusts to take advantage of favorable tax treatments for REITs. He suggested that smaller regional telecoms CenturyLink (CTL) and Frontier (FTR) could do a REIT conversion and that even Verizon (VZ, Tech30) might want to consider it.

Whether or not breakups work for any of these individual companies remains to be seen. But it does appear that the companies that are spun off are good bets.

The Guggenheim Spin-off ETF (CSD), which tracks an index of spin-offs, has outperformed the S&P 500 since it began trading in 2006.

Two of the top holdings in the fund are Zoetis (ZTS), the veterinary medicine unit that used to be owned by drug giant Pfizer (PFE), and soy milk producer WhiteWave (WWAV), a spin-off of Dean Foods (DF).

"Investors prefer more focused, nimble companies," Cornell said.

First Published: October 6, 2014: 11:42 AM ET

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