Russian bank offers cats with mortgages

LONDON (CNNMoney)

Russia's biggest bank, Sberbank (SBRCY), is offering to deliver cats to the doorsteps of new mortgage clients as part of a quirky promotional campaign.

In Russia, it's considered good fortune if a cat enters a new home ahead of the owners.

A few customers have already signed up, though cat lovers may be disappointed to hear that the kitties will be on loan for just two hours and then whisked away.

Clients can choose from 10 felines with names like Caesar and Caramel. But they'll have to hurry to secure one -- the bank is limiting the cat campaign to 30 new mortgages only.

Sberbank's promotion may be part of an effort to present a warm, fuzzy image since getting slapped with European sanctions one month ago.

The bank, which serves more than half the Russian population, has been banned from raising medium and long-term financing in Europe. Its shares have plunged by 28% since the start of the year.

Western sanctions against Russia are part of an effort to punish President Vladimir Putin for supporting separatist fighting in eastern Ukraine.

Related: Lion-ripped jeans sell for $1,500

The cat campaign has generated a lot of buzz on social media, but it hasn't all been positive.

One Twitter user -- @Tsimchik -- told Sberbank: "Reduce your interest rates and people will have enough money to run a cat farm!"

A Facebook user from Iceland was keen on the concept, but not the cats. "I would take out a second mortgage if the bank gave me a monkey," he said.

Related: The top 15 sanction targets

The Russian mortgage market has been expanding by more than 30% per year since 2009, according to statistics from the Russian central bank.

Mortgage lending in rubles has grown by 41% in the first seven months of 2014 compared to the same period in 2013.

--CNN's Olga Pavlova in Moscow contributed to this report.

First Published: September 1, 2014: 6:29 AM ET

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Russia's ruble at lowest level ever as new sanctions loom

LONDON (CNNMoney)

The European Union said Saturday that it was preparing to issue new sanctions as soon as this week in response to signs that Russia had sent troops into Ukraine.

Russia has denied that its armed forces are active in the country.

The ruble slid 0.5% against the dollar Monday, taking its losses for the year to about 13%. One dollar will now buy you about 37.5 rubles.

The sliding currency will make life harder for Russians by raising the cost of imports, which could further fuel inflation that has already risen to about 7.5%.

Related: 10 Western companies getting slammed in Russia

Russia's central bank has hiked interest rates three times since March to tame inflation and defend the ruble, but may find it politically tricky to raise the cost of borrowing still further.

"The bank has come under heavy criticism from a number of government officials for tightening monetary policy in times when the economy is extremely weak," said Liza Ermolenko, an emerging markets economist at Capital Economics.

Russia's slowing economy has been brought to the brink of recession by the crisis, which has scared off investors and depressed consumer sentiment.

Sanctions, and the threat of more to come, are beginning to hurt Russian and Western companies.

The chill in trade -- including a Russian ban on many European food imports -- also threatens to push Europe's economy into reverse.

Related: Russian bank offering cats with mortgages

Eurozone growth evaporated in the second quarter and the latest data for August showed activity in the region's manufacturing sector hit a 13-month low.

First Published: September 1, 2014: 9:10 AM ET

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A&E deal would price Vice at $2.5 billion

Vice's co-founder Shane Smith has said he wants Vice to be the "next CNN" and "next MTV."

NEW YORK (CNNMoney)

Vice Media is in talks with A&E about a deal that would value it at more than $2.5 billion, according to a Vice spokesman.

A&E would buy a 10% stake in the company.

Vice would also create content for the A&E cable networks, according to a person with knowledge of the negotiations.

Its online content, magazine and HBO series, called Vice, specifically targets millennials.

On YouTube, the Vice channel has nearly 5 million subscribers. Its most popular video, "First Animal to Survive in Space," has 12.1 million views, followed by "The Biggest Ass in Brazil," which has been viewed 10.6 million times.

A&E, which also owns the Lifetime and History channels, is buying the stake to gain digital exposure.

Flipboard: Future of Media

A&E is jointly owned by Disney (DIS) and the Hearst Corporation. An A&E spokesman declined to comment.

Time Warner (TWX) was also interested in buying a stake in Vice, but those discussions are now over, according to a person familiar with the negotiations. (Time Warner owns CNN.)

This isn't the first time Vice has attracted investment from an established media company. Rupert Murdoch's 21st Century Fox paid $70 million for a 5% stake last year.

Vice's other minority shareholders include marketing services firm WPP, The Raine Group and former Viacom (VIA) chief executive Tom Freston.

The company's co-founder Shane Smith has said he wants Vice to be the "next CNN" and "next MTV."

First Published: August 29, 2014: 8:41 PM ET

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American, US Air tickets back on Orbitz

The companies reached a deal, just three days after cutting ties.

NEW YORK (CNNMoney)

It's been just three days since the nation's largest airline said it was cutting ties with the online booking agent.

Consumers should see that available flights are back on the site immediately, said Orbitz Friday in a statement. The agreement applies to tickets for both American Airlines and US Airways, which merged to form American Airlines Group (AAL) last year.

The companies had disagreed over the portion of ticket sales that Orbitz would receive.

The online service also offers tickets for United Airlines (UAL), Delta Airlines (DAL) and JetBlue (JBLU), as well as many smaller carriers.

Shares of Orbitz (OWW) rose more than 1% on the news.

8 must have travel apps

Annoying airline fees add up to $31.5 billion

First Published: August 29, 2014: 5:39 PM ET

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Friday Links

NEW YORK (CNNMoney)

A weekly collection of design, data and interactive links.

Design/Data viz
Forms of color | Vintage illustrations exploring color systems
Police Punishment: CCRB vs NYPD | Interactive analyzing NYPD complaint data
Futuristic UI | Video and stills from the short SIMIAN

Photo/video
Serendipity | Every second, a few people hit "play" on the same track at the same time
Zaha Hadid | Zaha Hadid's Wangjing Soho complex nears completion in Beijing
Instagram programming | A look at what goes on behind the scenes at Instagram

See last week's links

Have a nice weekend!
@dubly and @talyellin

First Published: August 29, 2014: 7:08 PM ET

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The Coolest Kickstarter ever raises over $13 million

NEW YORK (CNNMoney)

The Coolest Cooler (yes, a cooler) raised $13.3 million in its 52-day run. The previous record holder, the Pebble smartwatch raised $10.2 million in 2012.

Why have more than 60,000 people contributed to a cooler campaign?

Well, this cooler includes a blender, waterproof bluetooth speaker, USB charger, cutting board and bottle opener -- a "portable party," according to founder Ryan Grepper of Portland, Ore.

And those who pledged enough ($165 or more) will save at least $130 on the cooler, which will retail for $299.

Related: The 13 most WTF gadgets

Those who contributed less can still get in on a piece of Kickstarter history: A $25 contribution earned a Coolest-branded reusable party cup and a drink guide; for $55, backers receive the party cup plus a "Keep Calm and Blend On" tee.

And for the first eight backers who contributed $2,000, Grepper will fly out and help them host a tailgate party with the Coolest (before its available to backers in February 2015).The record is impressive by any measure, but the last couple days have been a whirlwind: Backers contributed over $2 million in 24 hours.

The rush to contribute in the final days isn't all that shocking to Jason Greenberg, PhD and assistant professor at New York University's business school.

"This is something we tend to see in cultural settings where the 'rich get increasingly richer,'" said Greenberg. "A firm end date and time can precipitate this."

But it adds more pressure to satisfy consumer expectations.

"Bigger capital raises entail bigger expectations and scrutiny," said Greenberg.

Grepper is acutely aware of this obligation.

"I feel personal responsibility to each backer that has supported me and am committed making the Coolest live up to its name," said Grepper.

Related: Water balloon lovers pledge $645,000 on Kickstarter

The success of the Coolest is perhaps all the more surprising because this isn't its first time around the Kickstarter block.

Grepper unsuccessfully tried to raise $125,000 for similar model In November 2013 (he only earned $100,000),

"My confidence was pretty low because of the first campaign," said Grepper.

But a combination of seasonality (launching the campaign in July vs. November), more supporters and an improved design helped him get far more than his $50,000 goal this time around.

Setting the bar so low -- and meeting it within 36 hours of launching -- has helped him get ahead on production. He's currently in the process of locking in a final design and securing a factory to produce the coolers (which will be available in three colors: Margarita, Blue Moon and Coolest Orange).

Related: These startup ideas are money magnets

So, are the millions raised any indication of how it'll fare post-crowdfunding?

They could be.

"We've seen more and more angels and investors using [Kickstarter] as a minor league in terms of [gauging] customer demands," said Greenberg.

Grepper said he's already been contacted by "many" retailers who are interested in working with him to sell the product.

According to PrivCo, a financial data provider on privately-held companies, U.S. cooler sales totaled $635 million in 2013.

Igloo Products Corp "dominates" the market, according to Matt Turlip, senior analyst at PrivCo. The company, which ACON Investments bought from J.H. Whitney & Co. earlier this year, owns 53% of the full-size cooler market.

"Maybe in a year or two, the Coolest can hope to compete," said Turlip.

First Published: August 29, 2014: 9:19 PM ET

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Sports betting vs. the stock market

NEW YORK (CNNMoney)

They both believe they can predict the future, and they sometimes fall into the trap of making decisions with their hearts instead of their brains. And of course, they both hate to lose.

But don't let those similarities fool you. Gambling on sports may be more fun, but it's definitely a more risky use of money than putting it in the stock market.

In the long run, investors have the chance to make more money because there are fewer downside risks.

To put it another way, the stock market is a lot more forgiving than the MGM Grand (let alone your local sports bookie).

"A lot of people regard investing as gambling, but I frequently say no. Which casino in Atlantic City, Las Vegas or Macau pays the bettor 73% of the time?" said Sam Stovall, chief investment strategist at S&P Capital IQ.

That's the percentage of time that Stovall's research shows the S&P 500 -- the gold standard in the stock market -- has increased in value during the years since 1926.

Those are pretty good odds.

Related: 4 reasons September could be good for stocks

The betting appeal: Americans bet an estimated $380 billion each year on sports. It's easy to see why fans may be tempted to gamble on their favorite teams and athletes. Gambling on football star Peyton Manning to win might seem like a safe bet, especially compared with picking winners in the stock market.

"You're making a wager based on some facts and some intuitions. And in neither instance can you be guaranteed to be correct," said Randall Fine, managing director of The Fine Point Group, one of the casino industry's largest consulting firms.

Manning is really, really good at what he does for a living. Heck, even his commercials are funny.

But take it from one person who has lots of experience in both worlds.

"Betting is more difficult and riskier," said one resident of Hoboken, New Jersey, who bets on illegal gambling sites and also invests in stocks. He asked for his identity to be withheld due to legal concerns.

"A large, steady company has a low chance of plummeting and causing you to lose all your money, but even Peyton Manning doesn't cover the spread sometimes," he said.

All or nothing: Gambling on sports tends to be a zero-sum game. A bettor gambling on the Green Bay Packers will instantly lose his or her entire $500 bet if Aaron Rodgers and his teammates fail to win or cover the spread.

However, someone sinking $500 into Apple stock has little risk of losing that entire initial investment, especially in the short term. The stock might go up and down some, but it typically doesn't go to zero.

Related: Apple and 9 other stocks hit new records

Investors also have the ability to spread their money out among many stocks. People often invest in funds that buy dozens or even hundreds of stocks, which helps reduce the risk.

And investors have greater access to tools that can minimize the risk of losing money. For example, a stop-loss order instructs a broker to dump a stock when it tumbles below a specific price.

Such hedging tools are not as readily or even feasible to sports gamblers, Fine said.

At the same time, investing in stocks actually carries higher upside potential. While many stocks offer steady returns, investors sometimes hit the jackpot (think: buying Apple back in early 2009 or Tesla in 2012).

Related: How $2 billion Clippers bet could pay off

Gamblers and investors also have far different time horizons.

A stock can theoretically be held onto for an infinite amount of time, but a sports bet can end in the blink of an eye.

Even the unlucky investors who jumped into the market at its peak in October 2007 eventually made their money back when stocks reclaimed their pre-recession levels in 2013.

The same can't be said for those who bet big on the Denver Broncos last Super Bowl.

"You can hold onto your betting tickets all your life, but you're not going to get squat," said Stovall.

First Published: August 31, 2014: 8:14 AM ET

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Why Buffett's son bought Rosa Parks archive

The Congressional Gold Medal (left) and Presidential Medal of Freedom (right) are among the items left by Rosa Parks, who died in 2005.

NEW YORK (CNNMoney)

"I knew that my mom would think that it was something that should get done," Buffett told CNNMoney.

Buffett's mother, Susan, died in 2004 after 52 years of marriage to Warren Buffett, the CEO of Berkshire Hathaway (BRKA).

Howard Buffett's charitable foundation closed a deal to purchase the Parks material on August 19. The items have been in storage, caught up in a years-long legal fight and then put up for auction.

The cache includes Parks' Presidential Medal of Freedom and Congressional Gold Medal, as well as letters, photos and other artifacts.

Parks, who died in 2005, became a civil rights icon when she refused to give up her seat on a bus to a white man in Montgomery, Alabama, in 1955. Her arrest triggered a 381-day boycott organized by the Rev. Martin Luther King Jr.

Howard Buffett, who is a philanthropist, said he was drawn by the cache's historic importance and became involved after seeing a TV news report it.

"This is an incredible part of history, and to have that history locked in a chamber somewhere is not right," Buffett said.

Buffett runs the Howard G. Buffett Foundation, which works in the developing world to improve agriculture and clean water delivery.

He said the Parks material would be turned over to an institution that would ensure its availability to historians and others.

"It has to be somewhere the public has access to it," Buffett said.

Berkshire Hathaway stock tops $200,000 a share

More video and articles about Warren Buffett

First Published: August 31, 2014: 11:42 AM ET

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Big protests are coming to Hong Kong's financial district

Thousands of protesters gathered outside Hong Kong's government offices on Sunday.

HONG KONG (CNNMoney)

The ruling, announced Sunday by the National People's Congress Standing Committee, will limit candidates for the city's highest office to two or three nominees who must "love the country, and love Hong Kong."

The decision largely ignored the demands of pro-democracy groups that have staged several sizable protests in recent months calling for free and direct elections in the former British colony.

Factions of the pro-democracy movement now say they will stage mass civil disobedience actions across the city and target the financial district that is one of Asia's key business hubs.

The activists accuse China of reneging on its "one country, two systems" pledge that was a condition of Hong Kong's return in 1997.

The most visible pro-democracy group -- Occupy Central With Love and Peace -- has pledged to snarl traffic and disrupt operations in the business district. On Sunday, thousands of protesters attended a demonstration organized by the group outside the city's government offices.

Related: Why Occupy Wall Street fizzled

Although they share a moniker, Hong Kong's "Occupy" supporters are not affiliated with the protest movement that got its start in Manhattan's Zuccotti Park. The groups share concerns over rising income inequality, but the Hong Kong organization's immediate goal is to secure full voting rights.

The threat of civil disobedience "is our bargaining power," Benny Tai, the organizer of Occupy Central, told CNN earlier this month. "[Beijing] take us seriously, though they will never admit that."

Related: Hong Kong's 'Occupy' takes on Beijing

In a city that places great emphasis on stability, the group's plan to "occupy Central" has set many in the establishment on edge. Central houses the regional headquarters of several major international banks including Citibank, HSBC and Bank of China.

Hong Kong affiliates of the big four accounting firms -- Deloitte, Ernst & Young, PricewaterhouseCoopers and KPMG -- placed an advertisement in local newspapers in June, trumpeting their opposition to the movement. The highly unusual public intervention by multinational companies in local politics drew widespread criticism.

Various business interests and chamber of commerce organizations have also warned of dire consequences should operations be disrupted in the business district.

In a statement issued late Sunday night, Occupy Central said they had "no other choice" but to engage in civil disobedience.

"We are very sorry to say that today all chances of dialogue have been exhausted and the occupation of Central will definitely happen," the group said.

First Published: September 1, 2014: 12:51 AM ET

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3 things to know about the biggest IPO in a long time

HONG KONG (CNNMoney)

1. It's any day, folks

Hangzhou-based Alibaba is expected to launch its initial public offering early in the week of Sept. 8, according to media reports.

The company could then start trading as soon as Sept. 18 or 19 on the New York Stock Exchange. The firm will trade under the "BABA" symbol.

An Alibaba spokesperson declined to comment.

The world's largest e-commerce company, Alibaba had sales of nearly $250 billion last year on its two most popular online shopping sites, Taobao and Tmall. The pair of sites handle 80% of China's online retail sales and receive more than 100 million visitors a day.

Alibaba also dabbles in online payments, cloud computing and investment products. Recent acquisitions suggest it's also making a big move into entertainment.

Related: How Jack Ma will keep control of Alibaba

2. Super size it!

Analysts say Alibaba could be worth as much as $200 billion. That's roughly twice the market cap of Amazon (AMZN, Tech30) and Ebay (EBAY, Tech30) combined; or four times more than Lockheed Martin (LMT), the world's largest defense firm.

With those numbers, it's perhaps no surprise that the Chinese company's market debut might raise even more than Facebook's $16 billion IPO in May 2012.

Just last week, Alibaba announced that profits tripled to nearly $2 billion in the most recent quarter.

3. Delays possible

Alibaba is a behemoth, but that hasn't prevented the firm from racing toward its IPO.

Still, the timing could yet change. The company is reportedly settling final issues with U.S. regulators, and won't be able to pull the trigger until the Securities and Exchange Commission has signed off.

After securing regulatory approval, Alibaba will pitch itself to investors to generate enough buzz to ensure a solid performance for the shares when they start trading.

Lingering concerns may include how the firm structures deals, and whether shareholders will have enough say in the company's direction.

Investors may also be put off by accounting problems at Alibaba Pictures, the firm's recently-acquired film division.

First Published: September 1, 2014: 7:14 AM ET

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