Amazon Kindle Paperwhite is the best e-reader ever

NEW YORK (CNNMoney)

Once upon a time, there was an argument to be made for the Barnes & Noble (BKS, Fortune 500) Nook e-reader, but with the introduction of the Kindle Paperwhite last fall, that battle turned went from competitive to no contest.

After producing a few Kindle e-readers of questionable quality, the Paperwhite is the best Kindle that Amazon has designed to date. That makes it CNNMoney's Best in Tech for the e-reader category.

The Kindle Paperwhite finds a perfect sweet spot of size and weight without becoming too difficult to handle or feeling too cheap. The matte rubber back ensures the Paperwhite stays secure in your hand, and it's thin and slim enough to fit in a back or coat pocket.

The display is biggest selling point of the Paperwhite, and unsurprisingly, it doesn't disappoint. The six-inch display has a nice, sharp contrast, quick refreshes on page turns, and uses an LED front-lighting technology that doesn't leave the screen looking patchy while reading in low light. The touch panel is the most responsive and functional to be featured on an e-reader yet, which is important for those who like to highlight passages, define words, and shop for books using the Amazon store. And while the battery might not last the eight weeks that Amazon (AMZN, Fortune 500) claims, it will last most people several weeks before having to recharge.

Related story: Nexus 7 is the best Android tablet money can buy

And then there's the matter of library. Not only is the Kindle e-book library as large and varied as any other out there, but Amazon has done well to develop its own Kindle Singles publishing arm for writers who want to release smaller works -- short stories, serialized fiction, magazine-style non-fiction, etc. All of these works are exclusive to the Kindle platform and come from some of today's best-known writers.

Amazon Prime subscribers also have access to a free library of e-books called the Kindle Lending Library, and though most of the books are free for a reason, there are a few quality selections to be found.

Ultimately there's no reason not to buy an Amazon e-reader right now. It provides the best hardware and the best ecosystem. While Amazon does offer a $70 Kindle with no touchscreen, it has a considerably smaller battery and no screen light (even if you don't read in the dark, the light comes in handy even when your surroundings are dim). If you don't mind spending a little extra, the benefits of the Paperwhite are very real.

First Published: October 7, 2013: 4:39 AM ET

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World Bank warns of slower growth in Asia

HONG KONG (CNNMoney)

The bank now expects growth of 7.1% in East Asia for 2013, down from an estimate of 7.8% made earlier this year. The Washington-based group has also downgraded its outlook for China, and now predicts GDP growth of 7.5% this year for the world's second largest economy.

The World Bank had earlier forecast growth of 8.3% in China. That is now unrealistic, the bank said, primarily because a rapid expansion in credit "has been less effective in generating growth."

Growth is expected to pick up next year in China to 7.7%, but risks remain -- especially as Beijing attempts to switch from an export-dependent economy to one driven by domestic spending and consumption.

"A greater than expected slowdown of investment could have an adverse effect on the region, especially on suppliers of capital goods and industrial raw materials to China," the report said.

The report highlights growing headwinds in the region -- which has accounted for a huge chunk of economic and trade growth in the wake of the 2008 financial crisis. Large stimulus programs put in place after the crisis helped Asia recover more quickly than other regions, but the World Bank said slower growth should now be expected as those programs wind down.

Related story: Missing from Asia's boardrooms? Women

The World Bank report comes after a similar warning last week from the Asian Development Bank, which downgraded its economic outlook for Asia and emphasized the need for structural reforms.

"Governance reform is needed to sustain development momentum and ensure that the benefits of growth are widely shared," the group said.

Both the World Bank and the Asian Development Bank cite a possible end to the Federal Reserve's stimulus program as a risk.

Related story: Fed taper won't cause another financial crisis in Asia

A withdrawal of stimulus could continue to prompt some investors to move their assets out of the region, putting pressure on economies in countries like India and Indonesia.

"The Federal Reserve's decision to delay tapering stabilized markets for now, giving countries a second opportunity to take measures to lower risks from future volatility," said Bert Hofman, an economist at the World Bank.

First Published: October 7, 2013: 4:12 AM ET

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Company jet too pricey? Rent one by the hour

LONDON (CNNMoney)

That may sound steep, but the European-based private jet airline says it isn't having a problem attracting clients. VistaJet's founder, chairman and 100% owner, Thomas Flohr says sales are growing roughly 25% per year.

Now VistaJet is expanding into the U.S., convinced that businesses and entrepreneurs will flock to its high-end service.

One of VistaJet's main selling points is its plane-for-rent business model, which allows customers to pay an hourly rate for flights.

That's different from most other U.S.-based private jet companies, which require flyers to buy and share an aircraft with others, or to buy an aircraft outright.

Flohr said his pay-as-you-fly business means that clients do not have to assume the asset risk and maintenance costs associated with plane ownership.

"Coming out of the financial crisis, people realize that an investment in an aircraft is not necessarily the right investment," Flohr told CNNMoney. "A much better solution is to [approach flying] as a service."

Plus, Flohr said all VistaJet aircraft are new and offer customers a top-of-the-line flying experience.

In September, VistaJet committed to locate 12 new Bombardier (BDRAF) aircraft in the U.S., directly challenging market leader NetJets. VistaJet currently has a global fleet of 41 jets.

Related: Is business aviation flying high again?

Forecast International aerospace analyst Ray Jaworowski agrees that VistaJet's business model is unique and gaining traction.

"It takes the headache of ownership away from the client and it gives [customers] 24-hour availability," he said.

VistaJet's customer base comes from all over the world - Europe, Russia, Africa, Asia and the Middle East - and the company prides itself on flying to hard-to-reach places. VistaJet doesn't fly a typical route from London to New York, but instead focuses on flying to far-flung locales like Ulaanbaatar in Mongolia.

"It's really a business tool," said Flohr. "We see it as a time machine. You can [save] so much time because, commercially, some of these locations you cannot reach in a very efficient way. Executives can hop on these airplanes, go to four or five locations in a very short period of time, and then come back to headquarters."

Related: BlackJet looks to bring private aviation to the masses

But that doesn't mean VistaJet is for everyone.

Jim Hall, a successful American entrepreneur and executive director at Oxford University's Entrepreneurship Centre, said he has taken many private flights, but has never flown with VistaJet because the prices seem too high.

"I feel there's an abundance of planes on the charter market and you can shop for planes to get the right price," he said, stressing that he focuses on a plane's safety record above all else.

Jaworowski agrees that every client is different. "Any specific client has their own needs. VistaJet might be a good option for some, while fractional ownership would be a better option for others."

First Published: October 7, 2013: 6:46 AM ET

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Stocks braced for another day in the red

Click on chart to track premarkets

NEW YORK (CNNMoney)

The government shutdown heads into day 7, with some 350,000 workers back on the job. And a looming debt ceiling crisis is stoking fears of a possible U.S. default.

U.S. stock futures were sharply lower Monday, led by a nearly 1% decline in the S&P 500, and the dollar weakened against other global currencies.

With the deadline to raise the debt limit a little more than a week away, lawmakers appeared no closer to resolving the debt impasse over the weekend.

On Sunday, Treasury Secretary Jack Lew said that Congress was "playing with fire," and warned the U.S. could default in just over a week.

Related: Shutdown, debt ceiling uncertainty looms

That could lead to a "subsequent meltdown of global asset prices," said ETX Capital market strategist Ishaq Siddiqi.

U.S. stocks finished higher Friday, but the Dow declined 185 points, or 1.2%, for the week.

The wrangling in Washington is expected to dominate markets, in what is otherwise a light day for corporate and economic news.

Related: Fear & Greed Index, still dwelling in fear

The first corporate results of the third quarter come out Tuesday, when aluminum maker Alcoa (AA, Fortune 500) reports after the market close. Two of the biggest banks -- Dow component JPMorgan Chase (JPM, Fortune 500)and Wells Fargo (WFC, Fortune 500) report Friday morning.

Related: Fed taper won't cause another Asia financial crisis

European markets fell in afternoon trading. The DAX in Frankfurt was under the most pressure, declining by more than 1%.

Asian markets ended with losses. Japan's Nikkei took a 1.2% tumble.

First Published: October 7, 2013: 5:55 AM ET

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Is Obamacare slowing health care spending?

Health care spending is at record lows, but should Obamacare get credit?

NEW YORK (CNNMoney)

Myth: Obamacare has slowed health care spending growth.

Reality: President Obama likes to stress that health care spending has fallen to record lows in recent years thanks in part to Obamacare.

It's true that after years of skyrocketing increases, America's health care spending growth has slowed to record lows. The Office of the Actuary in the Centers for Medicare and Medicaid Services reported earlier this year that national health spending grew by 3.9% each year from 2009 to 2011, the lowest rate of growth since the federal government began keeping such statistics in 1960, according to the Kaiser Family Foundation.

But is Obamacare the reason?

Not entirely, according to the Kaiser Family Foundation and Altarum Institute, a health research group. They concluded that about three-quarters of the slowdown is due to the lackluster economy. The rest stems from efforts to keep spending down, including measures introduced in the 2010 health reform law, commonly known as Obamacare.

Share your story: Are you signing up for Obamacare?

People spend less on health care in weak economic times. Those who lose their jobs often lose coverage and hold off on seeing the doctor. Even workers with company-sponsored plans may still face large out-of-pocket costs that they'd rather avoid unless absolutely necessary.

Companies have tried to curb their spending, too, by raising deductibles and co-pays, as well moving toward high-deductible plans, through which enrollees must typically spend a few thousand dollars before coverage kicks in. A growing number of companies have also instituted disease management or wellness efforts that aim to cut costs by keeping workers healthier.

When it comes to Obamacare, many of the largest provisions -- including the requirements that individuals get coverage and employers provide affordable plans -- don't kick in until 2014 or later. But some of the early mandates are helping curb costs. Insurance companies, hospitals and other providers are seeing smaller payment increases, while insurers are limited in what they can spend on administrative costs and must submit any premium increases of more than 10% for review by state or federal experts.

The president, however, may not be able to brag much longer.

With the economy picking up and the health insurance exchanges opening in January, spending is expected to rise more swiftly. The growth rate for 2014 should jump to 6.1%, as millions of Americans gain coverage through the exchanges and Medicaid expansion, according to CMS actuary. And for the seven years after that, it's expected to average 6.2% annually.

First Published: October 7, 2013: 9:48 AM ET

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Debt drama weighs on stock market

Click chart for more markets data.

NEW YORK (CNNMoney)

During the first six days of the government shutdown, investors had a relatively blase attitude toward the drama in Washington.

Now, as Congress is pushing the United States closer and closer to breaching its debt ceiling and possibly forcing the government into its first default, investors are getting scared.

The Dow Jones Industrial Average, the S&P 500, and the Nasdaq fell nearly 1% at Monday's open.

By midmorning, all three indexes regained some ground, but were still down between 0.3% and 0.5%.

Click here for more on stocks, bonds, currencies and commodities

Investors around the world are also becoming increasingly concerned. European markets fell in afternoon trading, and most Asian markets ended with losses.

The dollar strengthened against the euro but remained weak against the yen and British pound.

Related: Shutdown, debt ceiling uncertainty looms

Warning bells are ringing: The government shutdown is in day 7, and lawmakers appear no closer to resolving the impasse.

On Sunday, Treasury Secretary Jack Lew said that Congress was "playing with fire," and warned the U.S. could default in just over a week.

Analysts are starting to sound alarm bells.

Last week, Bank of America analysts said that the government shutdown wouldn't impact fourth-quarter GDP growth. But over the weekend, they changed their tune and lowered growth estimates for the fourth quarter to 2% from 2.5%.

ETX Capital market strategist Ishaq Siddiqi said the debt ceiling debacle could lead to a "subsequent meltdown of global asset prices."

Related: Fear & Greed Index, still dwelling in fear

Earnings kick off this week: The first corporate results for the third quarter come out Tuesday, when aluminum maker Alcoa (AA, Fortune 500) reports after the market close. Two of the biggest banks -- Dow component JPMorgan Chase (JPM, Fortune 500)and Wells Fargo (WFC, Fortune 500) report Friday morning.

Analysts fear that weak third quarter earnings could also weigh on stock prices.

Related: Fed taper won't cause another Asia financial crisis

What's moving: Shares of Apple (AAPL, Fortune 500) rose, after the iPhone maker was upgraded by Jefferies.

Shares of BlackBerry (BBRY)gained 4% on rumors that new buyers are emerging for the troubled smartphone maker.

Bank stocks, including JPMorgan, Bank of America (BAC, Fortune 500), Citigroup (C, Fortune 500), and Goldman Sachs (GZPHF), dropped roughly 1%.

First Published: October 7, 2013: 9:48 AM ET

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New BlackBerry buyout rumors include Google and Samsung

NEW YORK (CNNMoney)

Two weeks after limping-along BlackBerry received a preliminary $4.7 billion buyout offer from Fairfax Financial, a new Reuters report says the list of possible suitors has expanded significantly.

According to the Friday report, potential buyers of all or part of BlackBerry include Google (GOOG, Fortune 500), Cisco (CSCO, Fortune 500), SAP (SAP), Intel (INTC, Fortune 500), LG, Samsung and private-equity firm Cerberus Capital.

Even if the rumors prove to be true, it's unclear if those companies are really interested in buying BlackBerry. The company wants "preliminary expressions of interest" by early next week, Reuters noted. But it's possible that the two sides are simply testing the waters.

Shares of BlackBerry (BBRY) gained about 4% on the news.

BlackBerry wouldn't confirm the rumors, saying simply that the company "is conducting a robust and thorough review of strategic alternatives."

Related story: BlackBerry's bleak quarterly results

An actual offer from one of these companies would put BlackBerry on much firmer ground, given that the announcement from Fairfax sparked a lot of skepticism. Fairfax's "offer" was really just a preliminary letter of intent to buy BlackBerry, and Fairfax hasn't received any financial backing for a deal. Cynics think Fairfax is simply trying to draw in other offers and cash out its 10% BlackBerry stake.

BlackBerry's appeal to a Google or a Samsung likely lies in its patent portfolio, which experts value at about $2 billion to $3 billion. Such patents are advantage in the competitive and highly litigious world of smartphones -- just look at the never-ending Apple (AAPL, Fortune 500) v. Samsung lawsuits -- though BlackBerry's patents generally aren't considered as essential as those in the portfolios of its rivals. Still, those patents could give BlackBerry a much-needed lifeline.

First Published: October 7, 2013: 10:50 AM ET

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New $100 bill to debut Tuesday

The new $100 bill will start reaching banks on Tuesday.

NEW YORK (CNNMoney)

The bill was originally due to reach banks in 2011. But three years ago the Federal Reserve announced that a problem with the currency's new security measures was causing the bills to crease during printing, which left blank spaces on the bills.

The bill's belated debut has nothing to do with the government shutdown, since the Fed's budget is not included the current congressional appropriations stalemate.

The new bill has several features designed to make it easier for the public to authenticate but more difficult for counterfeiters to replicate. Those measures include a blue, 3-D security ribbon, as well as color-shifting ink that changes from copper to green when the note is tilted. That ink can be found on a large "100" on the back of the bill, on one of the "100's" on the front, and on a new image of an ink well that's also on the front.

The image of Benjamin Franklin will be the same as on the current bill, but like all the other newly designed currencies, it will no longer be surrounded by an dark oval. Except for the $1 and $2 bill, all U.S. paper currency has been redesigned in the last 10 years to combat counterfeiting.

Related: Inside the sexy new $100 bill

The $100 bill is actually the second most common bill in circulation, behind only the $1 bill. It's actually slightly more common than the $20 bill.

The most recent statistics from the Fed show that as of Dec. 31, there were 10.3 billion $1 bills, in circulation, 8.6 billion $100 bills and 7.4 billion $20 bills, followed by $5's, $10's, $50's and $2's. A little more than 75% of the more than $1 trillion of currency in circulation is in $100 bills. Much of it is held outside the United States.

Related: New $100 bills stolen en route to Fed facility

The current design for the $100, in circulation since 1996, as well as all previous designs, will still be legal tender, and will likely still be given out to customers by banks for some time to come. But the when banks request $100 bills from the Federal Reserve, they'll only receive the new design starting Tuesday.

First Published: October 7, 2013: 9:57 AM ET

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Airbus signs first deal with Japan Airlines

Japan Airlines has agreed to buy 31 A350s from Airbus in a deal worth as much as $9.5 billion.

LONDON (CNNMoney)

The landmark agreement -- worth as much as $9.5 billion based on list prices -- poses a threat to rival aircraft maker Boeing (BA, Fortune 500), which has been the dominant player in the Japanese aviation market.

The new Airbus A350 models, which will go into commercial service next year, are competing directly with the Boeing Dreamliner for orders.

But the Dreamliner has faced a number of setbacks, including a problem with its batteries that grounded the entire fleet earlier this year.

"Airbus is inching into Japan with a competitive offer and it's coming at a time when Boeing is really suffering with its equivalent airliner, the Dreamliner," said Goodbody senior aviation analyst Dónal O'Neill. "It's time for people to consider the A350 because it's a very well regarded aircraft."

Related: Airbus sees global fleet doubling by 2032

This is the first order for A350s from a Japanese airline. O'Neill says it could be the first of many.

"This could be a good stepping stone for Airbus to secure some other sizeable deals in Japan," said O'Neill, explaining that Japan's ANA (ALNPY) might also now consider placing an order for A350s.

In a joint press release, Airbus and Japan Airlines said they expect the A350s will start flying for the airline starting in 2019.

Fabrice Bregier, president and CEO of Airbus, said, "It fills us with pride to see a leading Japanese airline start a new chapter with us."

Some analysts said Japan Airlines may have been tempted into buying Airbus rather than Boeing planes because of heavy discounting.

Sterne Agee analyst Peter Arment said the A350s were probably sold at a discount of more than 50% off list price so Airbus could gain a foothold in Japan.

Related: How much does it cost to rent a private jet?

Last month, Airbus, which is owned by the European aerospace group EADS (EADSF), predicted the number of aircraft worldwide would double over the next 20 years, spurred by rising demand from emerging markets.

Airbus said a swelling middle class and more affordable air travel were among the factors fueling the rise in air traffic, with most of the growth coming out of Asia.

First Published: October 7, 2013: 10:26 AM ET

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Don't want to raise debt ceiling? Get ready for austerity

If the debt ceiling weren't raised for a year, the Congressional Research Service estimates that one of these options would need to be implemented for the government to continue meeting its legal obligations.

NEW YORK (CNNMoney)

If the country wants to continue paying all its bills, that's not a realistic option for many reasons large and small, legal and practical. Here are just two:

Bills may be delayed but must be paid: Putting off payments to, say, federal contractors wouldn't save the government any money. In fact, it would cost taxpayers more money. The Treasury Department must pay those bills at some point, along with interest penalties for being late.

Spending must be slashed or taxes hiked: The Congressional Research Service estimates that over the next 12 months, the government will spend an average of $30 billion more every month than it takes in.

But if Congress hasn't raised the debt ceiling, borrowing to bridge the difference won't be possible. Instead, lawmakers would have four options to choose from that would have to be implemented abruptly:

• Slash discretionary spending (including defense) by 33% every month.
• Cut mandatory spending (such as spending on Social Security) by 16% every month.
• Raise taxes by 12% every month.
• Or some combination of all three

That's the gentle scenario.

The truth is the deficit from month to month can vary greatly. So in some periods the spending cuts or tax increases would have to be far more drastic.

For example, pretend Congress doesn't raise the debt ceiling for all of November. What then?

"The Treasury would have no choice but to eliminate its cash deficit, which will run as high as $130 billion in November," economist Mark Zandi told the Joint Economic Committee recently. "The economy would quickly fall into another severe recession."

Recessions usually increase spending because safety net expenses, such as unemployment benefits, go up. But if the government can't borrow new money to compensate, lawmakers would have to cut further or hike taxes even more. That, in turn, can dampen future growth.

You get the picture.

First Published: October 7, 2013: 10:54 AM ET

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