China cracks down on military use of luxury cars

A fleet of luxury sedans parked outside last year's 18th National Congress of the Communist Party of China.

HONG KONG (CNNMoney)

China has banned the use of military license plates on expensive cars, according to official state media. The new guidelines were issued by the Central Military Commission, and are the latest anti-corruption measures undertaken by the image-conscious government of President Xi Jinping.

Military license plates had been something of a golden ticket in the past, with some owners openly flouting traffic rules and skipping required toll payments. Some reports suggest the plates were occasionally auctioned off to civilian buyers.

Xinhua, China's state news agency, suggested the problem is one of image.

"In recent years, irregularities in the use of military cars have drawn public attention," the agency said. "Some internet users have posted snapshots on popular Twitter-like microblogs featuring limos with military license plates."

Related story: Wild cars from the Shanghai Motor Show

According to the new regulations, military plates are now prohibited on Mercedes-Benz, BMW, Lincoln, Cadillac, Volkswagen Phaeton, Bentley, Jaguar and Porsche models. SUVs including the Porsche Cayenne and Audi Q7 were also singled out.

Put more broadly, the plates cannot be used on cars with engines larger than three liters, or a value over $73,000. To accomplish the change, the army will issue new plates designed to stop counterfeiters, and collect all previously-issued plates.

Luxury auto sales are booming in China, and many automakers are turning to the growing market in search of sales. Government officials are often among the buyers, with the Audi A6 being a particularly popular choice.

Related story: China luxury battles shifting tastes

The People's Liberation Army General Logistics Department said the policy change was needed to maintain the military's reputation.

"The move is meant to crack down on the creation, sale and use of counterfeit military vehicle plates and root out loopholes in military vehicle management, so as to maintain social harmony, stability and the reputation of the military," state media said, quoting a statement issued by the agency.

Xi, China's newly-installed president, has made the fight against corruption one of his government's top priorities.

He has exhorted Communist Party officials to "build a clean government, show self-discipline and restrain their relatives and associates."

The stakes are high, with Xi warning that graft and corruption could lead to "the collapse of the Party and the downfall of the state."

-- CNN's Vivian Kam contributed to this report.

First Published: April 29, 2013: 2:10 AM ET

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Stocks: Starting week on a high note

U.S. stocks finished mixed Friday.

NEW YORK (CNNMoney)

Expectations of a further rate cut from the European Central Bank and continued monetary support from the Federal Reserve later this week gave additional support to the market.

Investors begin the week awaiting data on personal income and spending, after the government reported Friday that the U.S. economy grew at an annual pace of 2.5% in the first quarter.

U.S. stock futures were firmer in early trading Monday.

Consumer spending, which alone accounts for roughly two-thirds of GDP, rose at a 3.2% annual pace, the fastest pace since the end of 2010. But the data also shows that consumers funded that spending in part by saving less.

Investors will get another look at the issue when the Bureau of Economic Analysis releases data on personal income and spending for March at 8:30 a.m. ET. At 10:00, the National Association of Realtors will release data on pending home sales.

Fear & Greed Index

In corporate news, controversial supplements company Herbalife (HLF) and gun maker Sturm Ruger (RGR) are set to release their quarterly results after the bell.

JPMorgan Chase (JPM, Fortune 500) announced Sunday that another of Jamie Dimon's key executives, co-chief operating officer Frank Bisignano, is leaving the firm and will be replaced by Matt Zames.

U.S. stocks finished mixed Friday.

European markets rose in morning trading after Enrico Letta was sworn in as Italy's prime minister, ending weeks of political deadlock and uncertainty in a country mired by recession.

Investors are also confident that the ECB will cut interest rates as soon as Thursday, as economic data deteriorates and central banks in other regions take more aggressive action to support their economies.

Greek lawmakers agreed to cut thousands of government jobs to secure another $11.5 billion in bailout funds.

Markets in Hong Kong added 0.1%. Exchanges in Shanghai and Tokyo were closed for a holiday.

First Published: April 29, 2013: 5:19 AM ET

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Health care spending growth is at a record low. Here's the catch.

NEW YORK (CNNMoney)

What's less clear is why -- the weak economy or cost-control measures, including the earliest provisions of the Affordable Care Act. Since health care spending is a major driver of the federal deficit, that's a pretty critical question.

The experts at the Kaiser Family Foundation and Altarum Institute are among the first to tease out how much each factor contributed to the slowdown. Their conclusion: about three-quarters is due to the lackluster economy. The rest stems from efforts to keep spending down, including measures introduced in the 2010 "Obamacare" law.

America's national health care spending grew by 3.9% each year from 2009 to 2011, the lowest rate since the federal government began keeping these records in 1960. That slow growth appears to have continued into 2012, when expenditures totaled an estimated $2.8 trillion.

The biggest driver of the slowdown is that people spend less on health care in weak economic times, said Larry Levitt, senior vice president at Kaiser. Those who lose their jobs often lose coverage and hold off on seeing the doctor, and even workers with company-sponsored plans may still face large out-of-pocket costs that they'd rather avoid unless absolutely necessary.

"When people feel less secure, they are more hesitant to use the health care system," Levitt said.

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.

Related story: A doctor says 'I gave up on health care in America'

Most of Obamacare's provisions have yet to be implemented, but some of the early ones are already having an effect, Levitt said. 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.

Here's the catch: This dampened spending pattern is unlikely to last much longer. As the economy picks up, health care spending is expected to increase, rising to an annual growth rate of more than 7% annually by the end of the decade, Kaiser predicts. As their finances get better, Americans are likely to return to their more typical patterns of visiting doctors, getting tests done and the like.

New spending control measures, including Obamacare, may temper that looming increase. Further trimming of provider rate hikes, along with additional efforts to coordinate care and pay providers fixed rates for treating a given illness instead of paying per individual test or treatment, may also help, Levitt said.

The fact that Obamacare's early provisions have already had an impact is an encouraging sign, said Josh Gordon, policy director at the Concord Coalition.

"It shows policy levers can be pulled to slow health care spending down," he said.

First Published: April 29, 2013: 5:58 AM ET

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Stocks on track to cap 4th month of gains in 2013

Click the chart for more stock market data.

NEW YORK (CNNMoney)

Stock market investors will be especially keeping a close eye on how the bankers view the U.S. economy's progress.

Recently, there have been signs that economic growth is losing steam -- job growth slowed in March, retail sales slumped and the manufacturing sector showed signs of weakness.

Still, stocks are on track to end April on a positive note this week, the fourth month of gains for 2013.

The Dow headed for its fifth consecutive up month, and the S&P and Nasdaq are poised for their sixth. So far this month, the Dow Jones industrial average is up 0.9%, while the S&P 500 has gained 0.8% and the Nasdaq is up 0.4%.

But trading could be choppy this week as investors take in another batch of corporate earnings, prepare to face the April jobs report, while digesting the central bank meeting.

Investors are hoping the Fed will pledge to keep up its pace of buying $85 billion in bonds each month, which has helped keep interest rates low. Also overseas, the European Central Bank is meeting Thursday. It is expected to cut the benchmark interest rate as the region's economies continue to struggle.

The commitment from the Fed, ECB as well as other central banks around the world to buy bonds and keep interest rates low until economic growth is stronger and sustainable has helped fuel the global stock market rally. The ongoing stimulus is likely to keep markets lifted.

Related: Google can help you time the market

The closely-watched monthly jobs report for April is scheduled for release on Friday. It will give investors a better idea of whether companies have picked up the pace of hiring, a key driver of the economy. Economists expect the economy to have added 150,000 jobs this month, after just 88,000 in March, according to Briefing.com. The unemployment rate is forecast to hold steady at 7.6%.

Leading up to Friday's jobs report, investors will get snapshots of the labor market from payroll processing firm ADP, Challenger's report on job cuts, and the government's weekly report on initial unemployment claims.

The week's heavy economic calendar also includes reports on personal income and spending, the housing market, manufacturing and consumer confidence.

Related: Fear & Greed index stuck in neutral

The corporate earnings calendar is also busy. Mark Zuckerberg's Facebook (FB), controversial supplements company Herbalife (HLF) and gunmaker Sturm Ruger (RGR) are all on tap to open their books.

More than 100 S&P 500 companies are reporting results this week, including drug makers Pfizer (PFE, Fortune 500) and Merck (MRK, Fortune 500), First Solar (FSLR), credit card companies Visa (V, Fortune 500) and Mastercard (MA, Fortune 500), AIG (AIG, Fortune 500), and Warren Buffett's Berkshire Hathaway (BRKA, Fortune 500).

A slew of media companies are also slated to announce earnings, including CNNMoney parent Time Warner (TWC, Fortune 500), Comcast (CMCSA), Viacom (VIA), CBS (CBS, Fortune 500) and Dreamworks Animation (DWA).

Auto giants General Motors (GM, Fortune 500) and Chrysler parent company Fiat (FIADF) are also expected to report.

More than half of the S&P 500 companies have already reported results, and nearly 70% have topped expectations, according to Thomson Reuters. However, only 43% have exceeded revenue forecasts, which is considerably below the long-term average of 62%.

First Published: April 28, 2013: 11:41 AM ET

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If not now, when will ECB cut rates?

The ECB will meet in the Slovakian capital Bratislava Thursday, under intense pressure to cut rates for the first time since July 2012

LONDON (CNNMoney)

The European Central Bank has kept its main interest rate at a record low of 0.75% since July 2012 but the clamor for it to relax monetary policy is growing as data deteriorates and its peers take more aggressive action to support their economies.

Eurozone inflation fell to 1.7% in March, comfortably below the ECB's target, and economists expect an even weaker print with the release of April numbers Tuesday.

Since the central bank's governing council last met in early April, when the ECB said it was "ready to act" if the gloom deepened, the International Monetary Fund has cut its global forecast and business surveys have signaled renewed weakness in Germany, Europe's most important economy.

Related: U.S. economy revs up but pace may slow

Unemployment levels in struggling eurozone states such as Greece and Spain have scaled new peaks above 27%. Over 6 million Spaniards are now unemployed and more than half of young workers under the age of 24 are out of work in both nations.

Some commentators believe the ECB will hold fire until it releases new forecasts for growth and inflation in June, but a narrow majority of economists surveyed by Reuters expect a cut to 0.50% when the governing council gathers in the Slovakian capital of Bratislava on Thursday.

"Given the latest data, we think that the case for a front-loaded rate cut is strong enough already, so that the ECB is likely to cut rates on May 2," wrote UBS economist Reinhard Cluse in a research note.

European policymakers continue to predict a gradual recovery in output in the second half of the year but are coming under growing pressure to slow the pace of austerity and do more to improve financing conditions for banks and businesses.

Billionaire investor George Soros warned earlier this month that Germany risked sliding into a recession of its own making by insisting on a rigid policy of austerity and because ECB monetary policy was "out of sync" with the quantitative easing being pursued by other major central banks.

Related: Bank of Japan stands firm while deflation worsens

The International Monetary Fund and independent economists have called for the ECB to cut rates, even if the impact may be little more than symbolic because banks in countries such as Italy and Spain are still hobbled by bad debts and need to rebuild their capital.

The ECB is considering other ways of tackling the credit squeeze but has no appetite for the quantitative easing pursued by the Bank of Japan, Federal Reserve or Bank of England.

Its weapon of choice -- buying government bonds in the secondary market but only under strict conditions and within the framework of an EU bailout agreement -- has not even been tested yet and is viewed with suspicion by Germany.

"We continue to believe that the chances of fully-fledged quantitative easing from the ECB are low," noted Nomura economist Nick Matthews.

The challenge facing the ECB was starkly put when German chancellor Angela Merkel, who is hoping to be re-elected later this year, made a rare intervention in the monetary policy debate late last week.

"The European Central Bank is obviously in a difficult position," she said.

"For Germany it would actually have to raise rates slightly at the moment, but for other countries it would have to do even more for more liquidity to be made available and especially for liquidity to reach corporate financing."

First Published: April 29, 2013: 12:25 AM ET

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China cracks down on military use of luxury cars

A fleet of luxury sedans parked outside last year's 18th National Congress of the Communist Party of China.

HONG KONG (CNNMoney)

China has banned the use of military license plates on expensive cars, according to official state media. The new guidelines were issued by the Central Military Commission, and are the latest anti-corruption measures undertaken by the image-conscious government of President Xi Jinping.

Military license plates had been something of a golden ticket in the past, with some owners openly flouting traffic rules and skipping required toll payments. Some reports suggest the plates were occasionally auctioned off to civilian buyers.

Xinhua, China's state news agency, suggested the problem is one of image.

"In recent years, irregularities in the use of military cars have drawn public attention," the agency said. "Some internet users have posted snapshots on popular Twitter-like microblogs featuring limos with military license plates."

Related story: Wild cars from the Shanghai Motor Show

According to the new regulations, military plates are now prohibited on Mercedes-Benz, BMW, Lincoln, Cadillac, Volkswagen Phaeton, Bentley, Jaguar and Porsche models. SUVs including the Porsche Cayenne and Audi Q7 were also singled out.

Put more broadly, the plates cannot be used on cars with engines larger than three liters, or a value over $73,000. To accomplish the change, the army will issue new plates designed to stop counterfeiters, and collect all previously-issued plates.

Luxury auto sales are booming in China, and many automakers are turning to the growing market in search of sales. Government officials are often among the buyers, with the Audi A6 being a particularly popular choice.

Related story: China luxury battles shifting tastes

The People's Liberation Army General Logistics Department said the policy change was needed to maintain the military's reputation.

"The move is meant to crack down on the creation, sale and use of counterfeit military vehicle plates and root out loopholes in military vehicle management, so as to maintain social harmony, stability and the reputation of the military," state media said, quoting a statement issued by the agency.

Xi, China's newly-installed president, has made the fight against corruption one of his government's top priorities.

He has exhorted Communist Party officials to "build a clean government, show self-discipline and restrain their relatives and associates."

The stakes are high, with Xi warning that graft and corruption could lead to "the collapse of the Party and the downfall of the state."

-- CNN's Vivian Kam contributed to this report.

First Published: April 29, 2013: 2:10 AM ET

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Tesla offers idiot-proof battery warranty

NEW YORK (CNNMoney)

The battery is covered even if an owner fails to follow charging guidelines laid out in the owners' manual. "Any product that needs a manual to work is broken," Musk said.

The only cases in which Tesla (TSLA) would not honor a battery warranty would be a case in which a customer deliberately attempted to damage or destroy the battery, he said.

"If you take a blow-torch to the battery pack or blow it up or use it for target practice" the warranty would be voided, Musk said. Also, of course Tesla would not cover battery damage resulting from a crash. Car insurance will have to pay for that.

The Model S batteries will continue to be covered by either an eight year, 125,000 warranty or an eight-year unlimited mile warranty depending on the size of the battery pack in the car. (The Model S is sold with two different size battery packs.)

So far, Musk said, Tesla has not had a single problem with the batteries themselves failing. Any failures that have occurred have been due to faulty computer chips and other components.

The automaker also announced other improvements to the service it offers Model S owners including nicer loaner cars. "Our service is OK and it needs to be great," Tesla CEO Elon Musk said in a conference call with reporters.

When the vehicles need service, rather than having owners bring their cars to Tesla service centers themselves, Tesla will pick up the cars and owners will be given loaner cars. Tesla's loaner car fleet will now include only top-of-the-line Model S cars, equipped with the 265 mile long-range battery packs, and Tesla Roadster sports cars.

Gallery - 8 collectible SUVs

The loaner cars will also be available for sale, at a discounted price, should a Tesla owner decide he or she likes the loaner better than the car he already owns. Tesla also made the previously-required annual service visit entirely optional. The warranty will now be honored even if a Tesla owner never brings the car in for service.

Tesla cars are repaired at service centers that are separate from the showrooms in which the cars are sold. It's a novel system that has brought Tesla into conflict with traditional auto dealers in some parts of the country.
"I've told the Tesla service division that their job is never to make a profit," Musk said. Most auto dealerships make a large portion of their profits from the service department which, Musk pointed out, creates a conflict of interest when it comes to product quality.

"I hate the idea of making money because our product broke," said Musk. "That's just wrong."

These changes to Tesla's service come shortly after Tesla announced new financing options for its electric cars. Tesla is working on improvements to the recently announced financing plan, Musk said in an interview.

"We're going to come out with a modified or improved version as soon as we can get things squared away with our banking partners," he said.

So far, Tesla has sold about 7,000 Model S cars since they went on sale late last year.

First Published: April 26, 2013: 4:05 PM ET

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FAA furlough reprieve: 'No fair!'

Lawmakers effectively canceled the furloughs of FAA air traffic controllers in an effort to end airport delays. Critics say Congress shouldn't pick favorites for reprieve from supposed across-the-board budget cuts.

NEW YORK (CNNMoney)

But advocates for everyone else directly affected by the so-called sequester are miffed with the selective undoing of what were supposed to be across-the-board cuts.

"We've got to save the traveling public but I ask the question about 5,000 children in Texas that will lose Head Start or the millions of seniors or our military families that will lose the support because we've got the sequester," Rep. Sheila Jackson Lee, a Democrat from Texas, said Friday.

Joseph Beaudoin, a former federal air traffic controller who now heads the National Active and Retired Federal Employees Association, was glad to see Congress reverse his former colleagues' furloughs. But he is worried about all the other federal government workers who aren't so lucky.

"Last month, Congress took action to ensure that furloughs could be avoided for TSA agents, meat inspectors and border patrol agents. However, hundreds of thousands of federal employees providing services across the United States still face furloughs," Beaudoin said in a statement. "We've had enough of the reactionary legislative response. It is time for Washington to come together to agree to smart, sensible approaches to tackling the budget."

Weary air travelers to get break from furloughs

The liberal activist group MoveOn.org was more scathing, contending the reversal was "solely to appeal to wealthy contributors who fly frequently." It issued an online petition to "demand that any emergency legislation to eliminate airline delays caused by the sequester also restore cuts to Head Start, cancer clinics, housing assistance, food pantries, and unemployment insurance."

Meanwhile, NDD United -- a coalition of 3,200 groups focused on public health, medical research, education and other areas -- sent a letter to Congress before the FAA reprieve was passed. "Damage control is not a sound fiscal policy. We urge you to reject any efforts to pick favorites and instead fix sequestration, once and for all," the letter said.

First Published: April 26, 2013: 5:06 PM ET

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50 million customers hit in LivingSocial hack

LivingSocial is requiring all customers to change their passwords after a cyberattack on its systems.

NEW YORK (CNNMoney)

The daily deals site recently suffered a cyberattack on some of its servers, and customer data for more than 50 million users may have been accessed, the company said late Friday. Credit card data was not affected.

Some users who attempted to log in on Friday were greeted with a message about the "unauthorized access," and were required to reset their passwords.

A LivingSocial spokesman sent CNNMoney a copy of an email that the company is sending to customers, which says the hackers may have accessed names, email addresses, encrypted passwords and the dates of birth for some users.

All LivingSocial users had some data stored on the hacked server, the spokesman said, except for customers in Korea, Thailand, Indonesia and the Philippines. Those countries use TicketMonster and Ensogo, which are on different systems.

The company declined to comment further on details of the hack, instead sharing an internal memo that CEO Tim O'Shaughnessy sent to employees earlier today about it. Tech blog AllThingsD first reported on the hack, citing that internal memo.

Related story: Stop hackers in their tracks

In the message that greeted users attempting to log in, LivingSocial said it is "actively working with law enforcement to investigate this issue."

News of the LivingSocial hack comes three days after the Associated Press Twitter account was compromised. The hackers sent a tweet falsely claiming an attack on the White House had left President Obama injured, sending stocks sharply lower for a brief moment.

First Published: April 26, 2013: 5:37 PM ET

17.42 | 0 komentar | Read More

Tesla offers idiot-proof battery warranty

NEW YORK (CNNMoney)

The battery is covered even if an owner fails to follow charging guidelines laid out in the owners' manual. "Any product that needs a manual to work is broken," Musk said.

The only cases in which Tesla (TSLA) would not honor a battery warranty would be a case in which a customer deliberately attempted to damage or destroy the battery, he said.

"If you take a blow-torch to the battery pack or blow it up or use it for target practice" the warranty would be voided, Musk said. Also, of course Tesla would not cover battery damage resulting from a crash. Car insurance will have to pay for that.

The Model S batteries will continue to be covered by either an eight year, 125,000 warranty or an eight-year unlimited mile warranty depending on the size of the battery pack in the car. (The Model S is sold with two different size battery packs.)

So far, Musk said, Tesla has not had a single problem with the batteries themselves failing. Any failures that have occurred have been due to faulty computer chips and other components.

The automaker also announced other improvements to the service it offers Model S owners including nicer loaner cars. "Our service is OK and it needs to be great," Tesla CEO Elon Musk said in a conference call with reporters.

When the vehicles need service, rather than having owners bring their cars to Tesla service centers themselves, Tesla will pick up the cars and owners will be given loaner cars. Tesla's loaner car fleet will now include only top-of-the-line Model S cars, equipped with the 265 mile long-range battery packs, and Tesla Roadster sports cars.

Gallery - 8 collectible SUVs

The loaner cars will also be available for sale, at a discounted price, should a Tesla owner decide he or she likes the loaner better than the car he already owns. Tesla also made the previously-required annual service visit entirely optional. The warranty will now be honored even if a Tesla owner never brings the car in for service.

Tesla cars are repaired at service centers that are separate from the showrooms in which the cars are sold. It's a novel system that has brought Tesla into conflict with traditional auto dealers in some parts of the country.
"I've told the Tesla service division that their job is never to make a profit," Musk said. Most auto dealerships make a large portion of their profits from the service department which, Musk pointed out, creates a conflict of interest when it comes to product quality.

"I hate the idea of making money because our product broke," said Musk. "That's just wrong."

These changes to Tesla's service come shortly after Tesla announced new financing options for its electric cars. Tesla is working on improvements to the recently announced financing plan, Musk said in an interview.

"We're going to come out with a modified or improved version as soon as we can get things squared away with our banking partners," he said.

So far, Tesla has sold about 7,000 Model S cars since they went on sale late last year.

First Published: April 26, 2013: 4:05 PM ET

15.30 | 0 komentar | Read More

FAA furlough reprieve: 'No fair!'

Lawmakers effectively canceled the furloughs of FAA air traffic controllers in an effort to end airport delays. Critics say Congress shouldn't pick favorites for reprieve from supposed across-the-board budget cuts.

NEW YORK (CNNMoney)

But advocates for everyone else directly affected by the so-called sequester are miffed with the selective undoing of what were supposed to be across-the-board cuts.

"We've got to save the traveling public but I ask the question about 5,000 children in Texas that will lose Head Start or the millions of seniors or our military families that will lose the support because we've got the sequester," Rep. Sheila Jackson Lee, a Democrat from Texas, said Friday.

Joseph Beaudoin, a former federal air traffic controller who now heads the National Active and Retired Federal Employees Association, was glad to see Congress reverse his former colleagues' furloughs. But he is worried about all the other federal government workers who aren't so lucky.

"Last month, Congress took action to ensure that furloughs could be avoided for TSA agents, meat inspectors and border patrol agents. However, hundreds of thousands of federal employees providing services across the United States still face furloughs," Beaudoin said in a statement. "We've had enough of the reactionary legislative response. It is time for Washington to come together to agree to smart, sensible approaches to tackling the budget."

Weary air travelers to get break from furloughs

The liberal activist group MoveOn.org was more scathing, contending the reversal was "solely to appeal to wealthy contributors who fly frequently." It issued an online petition to "demand that any emergency legislation to eliminate airline delays caused by the sequester also restore cuts to Head Start, cancer clinics, housing assistance, food pantries, and unemployment insurance."

Meanwhile, NDD United -- a coalition of 3,200 groups focused on public health, medical research, education and other areas -- sent a letter to Congress before the FAA reprieve was passed. "Damage control is not a sound fiscal policy. We urge you to reject any efforts to pick favorites and instead fix sequestration, once and for all," the letter said.

First Published: April 26, 2013: 5:06 PM ET

15.30 | 0 komentar | Read More

50 million customers hit in LivingSocial hack

LivingSocial is requiring all customers to change their passwords after a cyberattack on its systems.

NEW YORK (CNNMoney)

The daily deals site recently suffered a cyberattack on some of its servers, and customer data for more than 50 million users may have been accessed, the company said late Friday. Credit card data was not affected.

Some users who attempted to log in on Friday were greeted with a message about the "unauthorized access," and were required to reset their passwords.

A LivingSocial spokesman sent CNNMoney a copy of an email that the company is sending to customers, which says the hackers may have accessed names, email addresses, encrypted passwords and the dates of birth for some users.

All LivingSocial users had some data stored on the hacked server, the spokesman said, except for customers in Korea, Thailand, Indonesia and the Philippines. Those countries use TicketMonster and Ensogo, which are on different systems.

The company declined to comment further on details of the hack, instead sharing an internal memo that CEO Tim O'Shaughnessy sent to employees earlier today about it. Tech blog AllThingsD first reported on the hack, citing that internal memo.

Related story: Stop hackers in their tracks

In the message that greeted users attempting to log in, LivingSocial said it is "actively working with law enforcement to investigate this issue."

News of the LivingSocial hack comes three days after the Associated Press Twitter account was compromised. The hackers sent a tweet falsely claiming an attack on the White House had left President Obama injured, sending stocks sharply lower for a brief moment.

First Published: April 26, 2013: 5:37 PM ET

15.30 | 0 komentar | Read More

Doctor: 'I gave up on health care in America'

Dr. Grady Snyder (right) said the "health care crisis" in America forced him to sell his solo practice in rural Colorado and look for better opportunity overseas.

NEW YORK (CNNMoney)

It was time to quit. On August 19, 2011, Snyder sold his practice to a local hospital 30 miles away.

"I gave up on health care in America," he said. Later that year, he moved to Australia and took up rural medicine there.

The choice was heart-wrenching for Snyder. He didn't want to feel like he was abandoning his nearly 5,000 patients, and he'd been the only family physician in the area for 16 years.

"I wasn't just a doctor there, I was part of this community," he said. "I coached youth basketball here. My kids went to school here."

Snyder's decision to leave was years in the making.

A third of Snyder's rural patients were on Medicare. When Medicare reimbursements to physicians started shrinking in the late 1990s, his revenues fell. At the same time, the cost of running his practice was rising. Snyder tried to control expenses as much as he could.

Then in 2009, a law was passed requiring doctors and hospitals to move to electronic health record systems by 2015. If they didn't, their Medicare payments would be cut further.

That was the final straw. "I couldn't afford that expense. I didn't have $100,000 lying around," he said.

Related Story: Doctors driven to bankruptcy

Snyder wasn't ready to give up being a rural doctor, though. "It's what I loved to do," he said.

Disillusioned with how health care had evolved, and how stressful and expensive it had become to be in private practice in the U.S., Snyder began to explore opportunities to work abroad as a "locum tenen," or freelance doctor.

Locum tenen physicians temporarily cover for physicians at a hospital or private practice when they are sick or on vacation. Because of a shortage of rural physicians, freelance doctors are frequently used to fill the gap.

As he researched opportunities online, a video caught his attention. It was from an Australian nonprofit, Rural Doctors Workforce Agency, which specializes in recruiting freelance primary care doctors from overseas to work in rural parts of southern Australia.

In February, 2011 he interviewed with RDWA. By May he had a contract. He quickly sold his practice, and got his work visa and medical licensing paperwork squared away.

Snyder and his wife, Frances, arrived in Australia on Oct. 6 and settled in Adelaide. Getting certified to practice in Australia as a solo physician took about a year. Until then, he could only work under supervision of a certified doctor.

The work was strenuous and challenging personally and professionally, said Snyder. He traveled a lot and was away from home every other week. He couldn't easily refer patients to specialists, because there weren't many practicing in rural towns around Adelaide. Lack of medical technology was another challenge. "Here you don't have an MRI or CAT scan facility at every corner," he said.

Related story: Doctors going broke

Still, Snyder embraced the experience in a country where he said the locals were welcoming and "loved my accent."

In America, Snyder hardly ever took time off. In Australia, Snyder is contracted to work only 36 weeks a year, plus he gets four weeks' paid vacation time. That's given him time to travel -- he and his wife have visited Sydney, Malaysia and elsewhere in the region.

Even with a much lighter schedule, Snyder is making the equivalent of U.S.$250,000 a year -- $100,000 more than he made practicing in Colorado year round.

Moving overseas has made being a doctor fun again, he said.

"Primary care is highly respected here. That's not the case anymore in America," said Snyder. "In the United States, health care has become more about the business of making money. The personal side of medicine is going away."

In fact, Snyder said he wouldn't be surprised if more primary care doctors in the U.S. look for opportunities elsewhere. His own contract expires at the end of June but he's renewing it for another two years.

Would he consider moving back at some point?

If he could get the benefits he does in Australia back at home, he said, "I'd still be working in America."

First Published: April 25, 2013: 6:13 AM ET

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Investing beyond your target-date fund

Many investors combine their target-date fund with one or more other investments.

(Money Magazine)

Target-date funds are designed to provide not only a fully diversified portfolio in a single fund, but also an investing strategy. Their mix of stocks and bonds gradually becomes more conservative as you age, protecting your savings as you near retirement. So in theory these funds work best if you put your entire 401(k) into one.

In the real world, however, many savers don't take such an exclusive approach. A recent Vanguard survey found that just under half of target-date investors in its 401(k) plans combine target funds with one or more other investments, in some cases even another target fund.

While mixing another fund with a target fund can be a reasonable choice, you have to be careful that doing so doesn't leave you with an unruly mishmash instead of a coherent portfolio.

Straying from the target

One good reason for going beyond a target fund is to adjust how much risk you're taking.

Let's say you're a young investor who likes the target-date concept because it frees you from having to create a portfolio on your own, but you're anxious about having 90% of your money in stocks, a typical allocation for investors in their twenties and thirties. Transferring, say, 20% of your target fund's balance into a diversified bond fund would give you a considerably less volatile portfolio.

Conversely, you could make a similar shift into a total stock market index fund to boost your 401(k)'s growth potential. This add-on strategy is a more effective way to tweak risk than picking a target fund with a later or earlier retirement date.

Related: Money 70 -- Best mutual funds and ETFs

Once you get beyond this sort of simple fine-tuning, however, things can get hairy. Some investors employ a "core and explore" strategy in which they use a target fund as a foundation and then add funds that focus on certain sectors, such as emerging markets or real estate.

Problem is, most target funds already spread their assets widely both here and abroad. So you could end up doubling down on niche markets.

Besides, you may not enjoy enough extra return to make up for the added time and trouble of monitoring and re-balancing a considerably more complicated portfolio.

If you do go that route, plug all your retirement investments, including those outside your 401(k), into Morningstar's Portfolio X-Ray tool (available free at troweprice.com). That way you can see your overall allocation and make sure you're not inadvertently overweighting any areas.

Related: Picking the right stock fund

But once you're investing in so many other funds that your target fund essentially becomes a bit player, you may be better off simply building a portfolio from scratch.

First Published: April 25, 2013: 6:25 AM ET

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When energy stocks look like bargains

Caterpillar and other heavy-equipment makers stand to gain from expanding mining and drilling operations.

(Money Magazine)

The Dow and S&P 500 have already risen more than twice that, besting their 2007 records and prompting the question, "Now what?"

Valuations don't suggest a snarling bear is about to pound at the door, but after a 120% run-up since March '09, stock prices clearly are no longer low.

Even the bullish money manager Laszlo Birinyi, who correctly shouted "buy" at the nadir of the financial crisis, admits that he'll "reassess" stocks when the S&P 500 gets to 1600. As of early April that was a mere 30 points away.

Related: 4 ways the market could really surprise you

One game plan for the cautiously bullish is to invest in stocks that pay dividends, especially those that have a record of growing their payouts. Dividend stocks have outperformed the broader market over time, and consistent dividend growers tend to have strong balance sheets and dependable cash flows. Investing in such stocks is a sound long-term strategy, but for now they've had a good run that you can't assume will necessarily continue.

Think cheap

So here's another option: Find a deal. Search for a beaten-down corner of the market that could be poised to play catch-up.

The prices of energy-related stocks were hit by the slowdown in global growth last year, but as the U.S. economy improves and America's energy boom gains traction, energy service firms look like a bargain.

National Oilwell Varco (NOV, Fortune 500) provides mechanical components for land and offshore oil rigs, and it stands to benefit as oil and gas exploration and production companies ramp up. The stock's price/earnings ratio is 12, less than the industry average and the market as a whole. Annual long-term earnings growth is projected to be 14%.

Caterpillar (CAT, Fortune 500) and other large-equipment companies should gain from expanded mining and drilling operations. With more than half the company's sales coming from outside the U.S., the stock has seesawed through the post-recessionary period as important markets such as China and Europe stalled. But with a P/E ratio of only 10, CAT appears to be undervalued.

"The heavy equipment segment will come back when capital spending commitments pick up again," says Ned Riley of Riley Asset Management in Boston. "The short-term disappointments have been discounted already, and the stocks are now better buys than they were before."

Related: Money 70 - Best mutual funds and ETFs

To diversify your exposure to energy services firms, look to the SPDR S&P Oil & Gas Equipment & Services ETF (XES). Holdings include all the major players, such as Halliburton and Helmerich & Payne. The fund charges 0.35% of assets, so it's an inexpensive way to buy into an inexpensive sector.

First Published: April 25, 2013: 6:29 AM ET

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GE Capital halts lending for gun shop purchases

GE Capital has halted its lending program for purchases from gun shops.

NEW YORK (CNNMoney)

GE Capital, which provides consumer financing services, had previously provided lending services to gun shops to help consumers finance firearm purchases. Earlier this year, the company sent letters to shops notifying them that the program would be terminated for future purchases.

The move was the result of "a more rigorous audit process... in light of industry changes, new legislation and tragic events that have caused widespread reexamination of policies on firearms," GE Capital spokesman Russell Wilkerson said in an e-mail.

GE Capital had in 2008 stopped providing financing services to new merchants whose primary business was selling firearms. The move to nix the remaining relationships will affect less than 75 retailers and is an "immaterial" part of the company's sales volume, Wilkerson said.

Related: A fourth-generation gunsmith

It will not affect financing for guns bought at major retailers like Wal-Mart (WMT, Fortune 500) and Dick's Sporting Goods (DKS, Fortune 500), which sell guns along with a range of other items.

The decision comes months after the deadly shooting in Newton, Conn., which is not far from GE's headquarters in Fairfield, Conn. In the wake of the shooting, gun and ammunition sales have soared as lawmakers have considered stricter gun control measures.

A Wells Fargo (WFC, Fortune 500)spokeswoman said that the firm decided to stop its gun shop financing program nearly 10 years ago. Citigroup (C, Fortune 500) said that they do not provide retail financing at gun shops. Bank of America (BAC, Fortune 500) did not return requests for comment.

First Published: April 24, 2013: 5:23 PM ET

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Lawmakers probe government loan to Fisker as carmaker struggles

The Fisker Karma.

NEW YORK (CNNMoney)

Fisker laid off most of its employees earlier this month and missed its first loan payment to the Department of Energy on Monday. The Treasury Department has already seized $21 million in an effort to recover some taxpayer funds, but most of the $192 million remains at risk.

Republicans from the Committee on Oversight and Government Reform called Fisker's problems an example of ill-advised government intervention in the private sector, and questioned whether the company had benefited from alleged ties to the Obama administration.

Democrats dismissed these concerns and noted that the DOE loans for alternative-energy-based vehicles have been largely successful, with 98% of the roughly $8 billion awarded to five companies on track to be repaid. Ford (F, Fortune 500), Nissan (NSANF), Tesla (TSLA) and the Vehicle Production Group have also benefited from DOE loans.

Overall, the Department of Energy's clean-energy loan program -- authorized during the Bush administration -- has disbursed $17 billion and faces total losses of up to $780 million should Fisker file for bankruptcy.

While the carmaker could recover some additional funds through asset sales in bankruptcy, it appears in danger of joining solar-panel maker Solyndra as one of the program's high-profile failures.

Rep. Jim Jordan, a Republican from Ohio, said Fisker "never should have received taxpayer money." Noting the $107,850 price tag of Fisker's Karma plug-in sedan, Jordan said taxpayers "effectively subsidized luxury, novelty vehicles for the likes of Justin Bieber, Leonardo DiCaprio and Al Gore."

Jordan and other Republicans also alleged that Fisker backers were in regular contact with Obama administration officials, questioning whether the company had benefited from "crony capitalism."

Related: Carmakers take the Valley

Henrik Fisker rejected this allegation, noting that he had initially been approached to participate in the Department of Energy program by an official from the Bush administration. Nicholas Whitcombe, an official from the DOE's loan programs office, said the department made funding decisions based only "on the merits of the transaction."

"We conduct rigorous due diligence to protect taxpayers' interests," he said.

Democratic lawmakers noted that one of Fisker's key backers had contributed money to Republican political candidates, accusing GOP committee members of partisan grandstanding. Rep. Gerald Connolly of Virginia likened the proceedings to "a Soviet show trial."

Fisker suspended production of its only car, the Karma, in February. That followed a recall of most of the cars built in the second half of last year due to a possible problem with their battery-cooling systems and negative reviews from Consumer Reports.

The Energy Department originally promised Fisker $529 million three years ago. But as the company quickly fell into financial trouble, the department pulled back on that commitment and halted loan disbursements to Fisker in June 2011, after it had received $192 million.

Fisker has been seeking new investors to help revive its business, but has been unable to get back on track with the planned production of a smaller, less expensive plug-in sedan.

CNNMoney's Chris Isidore contributed reporting.

First Published: April 24, 2013: 7:07 PM ET

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Austerity debate rages in Europe

LONDON (CNNMoney)

At issue are the spending cuts and tax increases that have formed the core of the eurozone's response to its credit crisis the past few years.

Criticism that such austerity is self-defeating has gotten louder as evidence mounts that the region's recession and unemployment crisis may be getting worse.

In turn, European policymakers have gone out of their way to acknowledge that there are limits to austerity -- that spending can be cut just so much.

But it's far too soon to write austerity's obituary. While Europe's leaders may tweak policy, they are unlikely to start unwinding their get-tough approach anytime soon.

Related: Debt's impact on growth

European Commission President Jose Manuel Barroso, speaking in Brussels on Monday, admitted that the EU's drive for sound finances had "reached its limits" but was "fundamentally right."

Tough fiscal policy, Barroso said, "is indispensable but it has to be complemented by a stronger emphasis on growth, including short term measures for growth." Leaders need to make that point "louder and clearer," he added.

Olli Rehn, the commission's top finance official, said in a CNN interview that the EU has actually loosened the fiscal noose. He added that the overall pace of budget cuts has slowed in the past year, and that the EU has eased some terms of its national bailouts.

"I'm fully aware of the problems related to high levels of unemployment and low growth in many European countries," he said. "At the same time we have to realize that the debt levels in Europe are around 90% this year, and it is having a drag on growth."

Translation: We hear you that austerity can have harsh consequences, but the debt must be brought under control.

Related: Soros says Germany headed for self-made recession

The bailouts have posed particularly tough choices for EU policymakers.

Ireland and Portugal have been given seven more years to repay bailout loans. Greece, Spain and Portugal have been given more time to bring down their budget deficits, and France and others may be added to that group next month.

Greece, Portugal and Ireland were forced into bailouts in the first place because they were insolvent and investors would not lend to them. Painful deficit reduction, along with reforms to boost competitiveness and productivity, was always going to be the price of a rescue.

And it's clear from the latest government borrowing figures that the region still has a mountain of debt to climb.

The aggregate eurozone deficit fell to 3.7% of gross domestic product last year from over 6% in 2010. But overall debt levels across the 17 member states rose, including in Italy, Spain, Portugal and Ireland.

Eurozone debt hit 8.6 trillion euros, a record 90% of GDP, last year and is forecast to rise to 95% in 2013. Official forecasts see it stabilizing in 2014, but they assume no further relaxation of fiscal policy -- highly unlikely given the mounting social, political and economic pressures.

Either way, the debate over austerity vs. growth is bound to accelerate.

Italy, the region's third largest economy, this week nominated a new prime minister. Enrico Letta is a pro-European from Italy's center-left. He wants Europe to ease up on austerity.

On Thursday, when first quarter data is released, the U.K. may officially join the eurozone in recession. But it too shows no sign of changing course, despite criticism from the International Monetary Fund among others that it is cutting too fast.

"It's fair to say that growth is not coming through at the pace that we would like it, but if we remove the underpinning that financial credibility gives us, we run the risk of the whole thing going wrong and that would be dangerous," Roger Carr, president of the business lobby CBI told CNN.

First Published: April 25, 2013: 3:25 AM ET

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The Domino's Pizza dream: Deliveryman to store owner

Rob Cookston went from Domino's Pizza deliveryman to manager (left) in 1989. Today, he owns 18 Domino's franchises.

NEW YORK (CNNMoney)

"I was 19, not in college and looking for money," he said. "I worked my way up the Domino's system. That's the American dream."

It's a common story among Domino's Pizza (DPZ)workers: 90% of its franchises are owned by former deliverymen or entry-level workers, according to Tim McIntyre, a Domino's spokesman. About 4,500 of the pizza chain's U.S. stores are run by franchisees, while the company operates nearly 400.

Right off the bat, Cookston was bringing home about $500 a month as a deliveryman -- pretty good money for a teenager in 1987 still living at home with his parents in Virginia.

But Cookston was drawn by the potential of doing a lot better. Just seven months into the job, he heard that store managers got paid upwards of $100,000 a year.

But it was when he saw his franchise's owner driving a yellow Ferrari -- a similar model to the one featured in the popular television show Magnum P.I. -- that he enrolled in the manager training program.

Related: I work 70 hours a week

He learned how it's done at a Domino's Pizza store -- from basic restaurant skills like saucing 50 pizzas in an hour and massaging dough so it doesn't harden into "hockey pucks," to accounting tasks like managing payroll.

After two years, he moved out of his parent's house and started as a manager-in-training at a Reston, VA., Domino's. He made $89,000 in his first year.

The store had five phone lines, each of which had to be answered every time it rang. All orders had to be delivered within a half hour.

"It was a big challenge. I wanted to quit at times," he said. "We'd take turns giving each other shoulder massages we were so wiped out."

Soon, Cookston was managing six stores. But it wasn't enough. He was desperate to become an owner and run his own Domino's Pizza franchise.

According Domino's spokesman McIntyre, managers are eligible to go through specialized training called franchise management school after a year in the position.

Five years after he became a manager, Cookston borrowed money from his parents and grandparents and bought his first Domino's franchise on 23rd Street in New York City in 1994.

For the next five years, the newly-minted store owner lived in the basement of another Domino's branch in the city and saved enough to buy two more locations. At the time, he was making about $200,000 a year.

By 2000, he expanded into Connecticut and Long Island, buying and selling stores along the way. All told, he has owned and operated 32 stores, including some of the busiest Domino's locations.

He's been able to pay it forward, too: Seven of his own deliverymen have gone on to become store managers.

Cookston said he now lives "insanely comfortably" with his wife and two daughters in Connecticut.

He never did get that yellow Ferrari. He settled for a 1967 blue Corvette.

"Domino's taught me everything about hard work and what it takes to run a business," he said. "I believe if you can make it at Domino's, you can make it anywhere."

First Published: April 24, 2013: 6:03 AM ET

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How to survive a tax audit

NEW YORK (CNNMoney)

The chances of being dealt an audit are low -- about one in 100. But if you happen to be selected, you can take certain steps to make the process a little less painful.

1. Know what to expect.

Envisioning a visit from a suit-clad IRS agent with a briefcase? That's not usually how an audit plays out. The vast majority, or 76%, are correspondence audits, meaning the IRS requests information by mail instead of questioning a taxpayer in person.

These tend to focus on specific items on a return -- like itemized deductions for medical expenses -- and simply ask for documentation, said John Lieberman, CPA at Perelson Weiner LLP. In-person field audits are broader inquiries about a tax return and often involve verifying income, he said.

In either case, you'll likely receive a notification by mail explaining which parts of your return the IRS has questions about.

Related: 12 Tax audit red flags

2. Don't ignore the letter.

Shoving the letter you get from the IRS in a drawer and pretending it's not there won't make it go away. You're usually given 30 days to respond, so make sure to write back promptly or certain items may be disallowed or automatically corrected. The IRS will then begin collecting on any extra tax it believes you owe, said Lieberman.

3. Get documentation together.

Once you find out what parts of your tax return are in question, you should start collecting any relevant paperwork.

The rule of thumb is to keep tax-related documents for three years from the date a return was filed. If you can't find the documentation you need in your files, you can usually get another copy elsewhere. If you're missing the bill for a medical expense you claimed, for example, you can contact your doctor's office. If you donated money to a charity but lost your receipt, the charity will probably be able to send you a duplicate.

If you're unable to get the proof the IRS is asking for, any unsubstantiated claim or deduction on your return will be disallowed, said Lieberman.

Related: 'How I'm spending my tax refund'

4. Stay calm.

Spending time with the IRS may not be your idea of a fun time, but it won't help to be rude or difficult.

"Make sure you show respect for the individual on the other side," said Mark Everson, vice president of tax service firm alliantgroup and former head of the IRS. "It's not something you look forward to, but it's going to go better if you're respectful and friendly, recognizing that he or she is just trying to do their job."

Hiding information is another obvious no-no.

"If you think you've made an error on your return, don't try to cover that up -- figure out why that happened and what needs to be done to correct it," Everson said.

Lieberman recommends pointing out any mistakes -- and explaining why they occurred -- in a cover letter replying to your audit notification.

5. Get help.

For correspondence audits with straightforward requests, it's usually unnecessary to hire outside help, said Lieberman. But you can always let your tax preparer know about the audit, in case they have advice about how to respond.

Related: Crazy tax deductions

With in-person audits, though, it's often in your best interest to hire a CPA or tax professional to assist you -- unless you're very confident in your tax knowledge.

"It's best to have someone who understands and is able to explain what you did and why you did it," said Lieberman.

6. Pay up.

If you end up owing extra money, you'll get a bill in the mail that's typically due within 30 days, unless you ask to set up a payment plan. If your federal return ends up being changed, you'll typically have 90 days to amend your state return as well.

Disagree with the outcome of an audit? Ask to talk with a manager, who can conduct an internal review. If that doesn't help, you can request assistance from the Taxpayer Advocate Service, the IRS's watchdog arm. As a last resort, you can appeal the audit in U.S. Tax Court, a federal court specializing in tax cases.

But these avenues can be time-consuming and expensive, so make sure the fight is worth it, said Lieberman.

First Published: April 24, 2013: 6:07 AM ET

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Reduce the steep cost of diabetes

Diabetes is expensive to monitor and control. Here are some ways you can save money on your medical expenses.

(Money Magazine)

Some 26 million Americans suffer from the disease, in which sugar builds up in the blood: 7 million of those are undiagnosed. Another 79 million are prediabetic, or at risk for developing the ailment.

Says Dr. Ron Loeppke, vice chairman of U.S. Preventive Medicine: "It's a national crisis."

And a costly one; diabetes patients can spend as much as several thousand a year out-of-pocket on treatment, says Loeppke.

If you have the disease or are in a high-risk group (have a family history of the illness and/or are overweight), try these strategies to keep the costs in check:

If you don't have diabetes...

Take precautions. Make sure your doctor includes a blood-sugar screening in your physical; insurance will pick up the tab in almost all cases.

Related: Crack open your own genetic code

High-risk patients should get screened at least once a year, says Philadelphia-area primary-care doctor Charles Cutler.

And move more: In people with prediabetes, losing 5% to 7% of body weight and getting 150 minutes of exercise a week decreases the risk of developing diabetes by almost 60%, according to the Centers for Disease Control.

Struggle with your diet? Ask your doctor for a prescription to see a nutritionist -- if you've been diagnosed as prediabetic, your insurer may cover the cost.

If you have diabetes...

Stick to older meds. Drug companies are touting new medications such as Januvia and Onglyza, designed to control blood sugar, but the drugs that have been around for years are just as effective for most people and often have fewer side effects, according to a 2011 report by the federal Agency for Healthcare Research and Quality.

Related: 10 things to know about health insurance

Those who have a large co-pay for name-brand drugs or are on a high-deductible plan might pay a couple hundred dollars a month for the latest meds, while drugs such as metformin and glipizide are sold as generics and usually cost under $20 a prescription.

Save on supplies. Private insurance generally doesn't pay for the home monitor, lancets, and testing strips needed to test blood-sugar levels multiple times a day.

Opt for the monitor that uses the cheapest testing strips, says Cutler, and order supplies in bulk from online wholesale supply firms.

Pay for supplies with pretax dollars via your work flexible spending account or see if you qualify for a medical tax deduction (you get a break on costs that exceed 7.5% of your adjusted gross income).

Seek support. Studies show that diabetics who join support groups better maintain normal blood-sugar levels.

Almost every large employer offers some sort of chronic-illness management program with access to nurses and support classes, according to the benefits consulting firm Towers Watson. Most major insurers do as well. Call your HR department or insurer and ask.

First Published: April 24, 2013: 6:11 AM ET

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Samsung Galaxy S4 review: Gimmicky, but still one of the best

NEW YORK (CNNMoney)

The Galaxy S4's design is virtually unchanged from the Galaxy S III. And when I say virtually unchanged, I mean that you have to be pretty obsessive to notice the differences. Aside from a slightly more rectangular body and a more substantial, metal-esque band wrapping around the sides, there's little to separate Samsung's successor from its predecessor.

The most notable improvements to the phone's hardware guts come in its processor, display and camera. None are revolutionary, but they all match or one-up the Android status quo.

The 5-inch, Super AMOLED display is one of the best Samsung has ever put on a phone, with a 1080p display and a pixel density of 441 per inch -- more than enough to eliminate any trace of pixelation. The screen could stand to be a bit brighter, but that's a minor quibble.

Even with a bigger screen and a beefier battery, the Galaxy S4 managed to get ever-so-slightly thinner, slimmer, and lighter than the Galaxy S III. It also got a power boost.

Smartphone makers have spent the past few years flinging extra cores at everything, so yet another quad-core processor -- this time in the form of Qualcomm's (QCOM, Fortune 500) Snapdragon 600 -- doesn't sound all that exciting, especially compared to the "octo-core" Samsung Exynos 5 Octa that international markets are getting. (Geek caveat: Those extra four cores in the Exynos 5 are meant for low-power scenarios, so they don't provide the massive boost over Snapdragon that you might expect.)

Still, the fact that the Galaxy S4 is more than three times faster than the Galaxy S III when run through the same benchmarking tests is nothing to scoff at.

In using the phone regularly for a week, I rarely came across a moment when it suffered from significant stuttering, lag or overheating. The one noticeable exception was when I played "Real Racing 3," a graphically intense game that got choppy when too many cars were onscreen. That's not really Samsung's fault -- Android is notorious for its game lag.

The Galaxy S4's camera is also improved, though we're at the point of diminishing returns. On paper, the leap from 8 megapixels to 13 megapixels sounds substantial, but we learned years ago that the megapixel arms race is only part of the story when it comes to camera quality. The Galaxy S4's best new photo trick is a camera sensor that's back-illuminated, which means it can capture more light and produce brighter, more-detailed images without the use of a flash.

The camera works well in most normal situations. Its new user interface, pulled from Samsung's point-and-shoot Galaxy Camera, is nicely laid out and easy to use. The image processing time between hitting the shutter button and having a saved photo isn't blazing, but also isn't a nuisance. A few of the software advances, like being able to erase unwanted objects from an image's background or create time-lapse action shots, are neat and well-implemented.

Related story: Samsung's Galaxy S4 event launch fail

Of course, these improvements -- especially to the camera and screen -- require more power, and Samsung obliged by packing in a bigger battery. With the screen's brightness ranging between 50% and 75%, 4G turned on, and a few apps and services running in the background (Facebook, Gmail, Google Talk, etc. -- the usual suspects), I was still able to get through a full day with moderate use. With heavier usage, I found myself having to recharge after 6 to 8 hours. On the whole, I didn't notice any huge leap in battery life over the S3, but it certainly wasn't worse, either.

The features Samsung wants buyers to focus on, though, aren't the Galaxy S4's internal guts, which are more or less identical to other top smartphones right now. It's the software upgrades baked into Samsung's custom "TouchWiz" interface. The phone's flashier tricks include pausing video when you look away from the screen, letting you answer the phone by waving in front of it, and activating tilt-based scrolling when eye contact is detected. Samsung also pinched a few features from its Galaxy Note 8.0 tablet, like allowing two apps to simultaneously run side-by-side, and the Airview feature, which detects when your finger is hovering over -- but not quite touching -- the screen. The gesture can activate a secondary action or menu.

Those are neat tricks, but they're more like a sword-juggling circus act than the revolutionary breakthrough Samsung would like them to be. They're interesting, novel and sometimes impressive, but they're not significant or lasting advances. None are meaningfully better than our existing methods of smartphone interaction.

So, is the Samsung Galaxy S4 one of the best Android phones available? Yes. There are few other phones, period, that are as powerful and capable. But, in line with what we've seen from the past few iPhone generations, the improvements here aren't as pronounced and exciting as in past years. This isn't a phone that's going to convert an iPhone user, and current Galaxy S III owners aren't going to miss out on a whole lot as far as features go.

If you're ready for an upgrade, and are in the market for an Android phone, there's no reason why this shouldn't be one of top two or three phones you consider. It's not the standout, though, that Samsung needs to remain the preeminent leader of the Android field. Hear that, HTC?

First Published: April 24, 2013: 12:05 AM ET

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America's air is getting cleaner - and less costly

As air pollution decreases, Phoenix is one of the cities that's showing a marked improvement.

NEW YORK (CNNMoney)

The American Lung Association's annual "State of the Air" report -- based on EPA findings for 2009 through 2011 -- found that the three types of air pollution they track have all declined.

"We are happy to report that the state of our air is much cleaner today than when we started the report 14 years ago," said Harold Wimmer, the ALA's CEO. "But the work is not done."

The report covers short-term and year-round particle pollution, which includes dust, metals, smoke, exhaust and acids. It also measures ozone, which is created mainly from a reaction between sunlight and unburned gases in engine exhaust. These three types of pollution represent the most widespread airborne threats to people's health.

About 132 million people in the United States, or 42% of the country's population, live in counties that have unhealthy levels of at least one form of air pollution. This can lead to asthma, cardiovascular issues, lung problems and premature death.

"All three [types of pollution] kill people and cause harm to those with respiratory problems," said Janice Nolen, lead author of the State of the Air report. "Particle pollution is more lethal, but ozone is dangerous too. Both need to be cleaned up."

Related: China crushes U.S. in green energy investments

There's a huge economic benefit to alleviating these health risks, says Nolen. By 2020, the EPA estimates that the savings from cleaner air will total $2 trillion annually and cost just $65 billion to make the necessary improvements.

The country is already seeing the benefits, according to the EPA: Improved air quality helped prevent 160,000 deaths in 2010 (the last year data was available); avoid 1.7 million asthma attacks; and reduce hospital admissions and emergency room visits by 86,000 each.

Wimmer credited the Clean Air Act, first passed in 1963 and expanded over the years, with reducing pollutant levels. The EPA's latest proposal, set to kick in by 2017, will further purify engine exhaust by reducing sulfur content in gasoline.

The agency will also continue its push to retrofit power plants, use more renewable power, switch to "greener" household products and burn natural gas instead of wood for heat.

Related: You're getting stuck in traffic less

Separately, increased natural gas production in the U.S. will be a huge driver in improving air quality. A supply glut has dramatically reduced natural gas prices -- making it cheaper for power plants to burn than coal, and far cleaner. In 2012, for the first time ever, natural gas generated as much electricity as coal, and with energy production booming, this trend is likely to continue.

As a state, California has led the nation in implementing clean-air programs, but its cities still consistently have the most serious pollution. High population densities, a dry and sunny climate, and topography that traps air all frustrate progress. Four cities in the Golden State -- Bakersfield, Fresno, Hanford, and Los Angeles -- are in the top 10 in all three categories of pollution and have been for years. Bakersfield had the worst air quality for any metro area for the third year in a row.

Outside of California, Pittsburgh had the worst air quality, due to the toxic side effects from numerous coal-fired power plants in the region.

A couple of cities made significant progress. Phoenix dropped out of the top 10 cities for year-round particle pollution, while San Diego's ozone levels improved enough to get it out of the top 10 as well.

First Published: April 24, 2013: 12:16 AM ET

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European drug stocks are on a tear

Expiring drug patents are a thing of the past. Investors are taking notice.

LONDON (CNNMoney)

Investors have been piling into big pharma companies as worries about the expiration of lucrative patents and a thin pipeline of new drugs have receded, and as a desire for high-quality stocks with stable dividends has grown.

The STOXX Europe 600 Health Care index has rallied 15% since the start of January and easily outperformed the sluggish benchmark index, the STOXX Europe 600, which has nudged up by less than 4%. An ETF tracking the Health Care index has a dividend that yields nearly 2%.

Well-known names such as Switzerland's Roche and the U.K.'s GlaxoSmithKline (GSK) have been doing particularly well since the start of the year. Roche shareholders have seen the stock surge by roughly 19% and GSK shares have posted a 23% jump.

Prices for large-cap pharmaceutical stocks had been weighed down for years as companies braced themselves to lose their lucrative patents for blockbuster drugs. But now that those 'patent cliffs' have come and gone, investors are focusing more on growth opportunities and dividends.

"I think the run in pharma is going to continue," said Daniel Mahony, a London-based fund manager with Polar Capital who specializes in health care investments. "The patent cliff now is in the rear-view mirror for most companies. The question going forward is, 'where is growth going to come from?'"

The general consensus is that growth will come from the aging population in most developed economies combined with higher demand for healthcare in emerging markets.

Henderson fund manager John Bennett, who has funneled roughly 30% of his investments into European pharmaceutical companies, said that continued concerns about the industry and the expiration of drug patents were overdone.

"We may be only part way into what may turn out to be a decade-long bull market," he said in a recent research report.

Related: Hospitals profit more from surgical complications

Investors are also getting excited about new research and development efforts in the industry as companies increase their drug trials.

Naresh Chouhan, an equity analyst specializing in European pharmaceuticals at Liberum Capital, says R&D has significantly improved over the past few years, which could drive big pharma towards becoming a growth sector.

"Given that output in R&D is improving, the market is more willing to pay a higher multiple because the revenue seems more sustainable than it has done over the last five years," he said.

Worries about bloated R&D budgets are also a thing of the past.

"Commitment to R&D remains strong, but it is much more focused, leaner and efficient than it used to be," said Bennett.

When it comes to stock picking, Roche is a particularly hot investment right now, said Polar Capital's Mahony, who maintains shares are still relatively cheap despite the recent rally.

"The companies that are perceived to be the best innovators will outperform," he said.

Roche's drugs are also particularly difficult to copy, which makes them even more valuable from an investment standpoint, he said.

The current dividend yield for Roche shares is near 3.5%, which is roughly in line with the dividend yield for the rest of the big health care companies in Europe.

Sanofi (SNY) is another company that has the investment odds stacked in its favor, according to Morningstar equity analyst Damien Conover.

"Sanofi is well positioned to take advantage of the accelerating income in emerging markets because the firm has been entrenched in these regions for many years," said Conover.

Of course, the sector is not without its risks.

Scott Braunstein, portfolio manager for J.P. Morgan's global healthcare fund, said big pharma could face further pricing pressure in Europe and the U.S. as healthcare providers tighten their belts, a trend that could also be seen in emerging markets.

First Published: April 24, 2013: 3:37 AM ET

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Millions eligible for Obamacare subsidies, but most don't know it

NEW YORK (CNNMoney)

That's because relatively few people are familiar with provisions in the Affordable Care Act, aka "Obamacare," that will provide tax credits to low- and middle-income consumers to help them purchase health coverage through state-run insurance exchanges.

Most of those who will be able to claim the subsidies are in working families with annual earnings between $47,100 and $94,200, according to a recent analysis by Families USA, a consumer advocacy group. More than a third of those eligible will be young adults between ages 18 and 34.

"There's a huge number of people who can get coverage this way and can get significant help," said Ron Pollack, executive director of Families USA. "It's not just for the poor. It reaches deeply into the middle class."

Here's how the subsidies will work:

Starting in October, those looking to buy individual health insurance can enroll in plans offered through state-based exchanges, with coverage beginning in January. Consumers buying individual plans will be able to choose between four levels of coverage: platinum, gold, silver and bronze. The plans will differ in their premiums and out-of-pocket expense burdens.

People who are not in a government health insurance program, such as Medicaid or Medicare, and do not have access to an affordable plan at work may be eligible for help paying their premiums. The assistance is available to those with incomes of up to four times the federal poverty level -- this year, that's $45,960 for an individual or $94,200 for a family of four -- and will be scaled to ensure that folks don't pay more than a designated percentage (the exact target varies by income level) of their earnings toward the premium. The subsidy will be paid directly to the insurance company.

Related: 6 companies cashing in on Obamacare

The federal subsidies will be pegged to the cost of a "silver" plan, which will vary depending on where consumers live. Insurers will soon submit to the states and federal government details of the plans they'll offer in the exchanges, including the premium costs, but consumers may not learn the specifics until open enrollment starts in October.

Families USA crunched the numbers for a few different scenarios. By its estimates, a family of four earning $94,200 and purchasing a silver-level plan carrying a $12,500 annual premium will get a subsidy worth $3,550, which limits the cost of the premium to 9.5% of the family's income.

The government hasn't yet released its own estimates on how many Americans will be eligible for the subsidies, but Families USA believes that up to 26 million citizens will meet the criteria.

Not everyone eligible for those subsidies will actually sign up, though. The Congressional Budget Office is forecasting that only 6 million people will receive subsidized coverage through an exchange next year. It expects that number to grow to 22 million by 2017.

Many Americans are still in the dark about Obamacare provisions that could help them, said Matthew Buettgens, senior research analyst at the Urban Institute.

"Outreach is going to be crucial to creating viable exchanges in the early years," he said.

It will be a heavy lift. Only 62% of Americans are aware that subsidy assistance is available to individuals under the health reform law, according to a March Kaiser Family Foundation poll. And about two-thirds of the uninsured say they don't understand how Obamacare will affect them.

All Americans are required to carry health insurance as January 1, 2014, or face financial penalties, but if enrolling in coverage through the state exchanges is too expensive or too confusing, uninsured individuals might choose to skip it and pay the fines instead. That could lead to fewer healthy people enrolling -- which would make coverage in the exchanges more costly for everyone, since they would become populated primarily by people with greater medical needs.

"You want a broad range of people to enroll," Buettgens said.

First Published: April 23, 2013: 5:56 AM ET

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'Smart guns' could be next step in gun control

NEW YORK (CNNMoney)

They're using technology to create guns that only fire in the right hands. These so-called smart guns can recognize a watch, a ring or even just a grip.

For more than a decade, researchers at the New Jersey Institute of Technology have been working on a grip-recognizing gun similar to the one James Bond uses in "Skyfall."

Sensors on the grip -- similar to the touchpad on a laptop -- measure the pressure applied and the size and shape of the hand holding the gun.

"If a child tries to grab the gun, their hand geometry is actually going to be smaller," said NJIT Associate Professor Michael Recce. "So they're not going to touch the sensors, and they're not going to be able to fire the gun."

Related: Remington jobs rule the rust belt

According to the Bureau of Justice Statistics, about 232,000 guns are stolen every year. Recce says these criminals would not be able to use a grip-recognizing gun.

Another company, Armatix, uses radio frequency technology in its weapons, which unlock with a watch and a PIN. If someone who isn't wearing the watch grabs the gun, it immediately deactivates.

"Anybody who picks up the handgun, whether it's a child or it's actively stolen, they can't activate the watch," said Belinda Padilla, president and CEO of Armatix USA.

Armatix already sells these personalized guns in Europe and Asia.

Triggersmart, founded by Irish entrepreneur Robert McNamara, also uses radio frequency technology to enable -- and disable -- guns. The chip that activates the gun can be placed in a ring, bracelet or potentially even embedded in the owner's hand.

Personalized weapons makers say their products are effective and inexpensive. But even so, none are available in the United States, due to lack of demand from gun makers and owners.

Related: Guns and ammo sales spark jobs boom

With guns in the national spotlight, that could soon change. These entrepreneurs have discussed their technology with the attorney general, and Obama touted smart guns in his 23-point plan to reduce gun violence in the wake of the Newtown shooting.

Several other gun control measures -- including background checks and an assault weapon ban -- recently failed, but smart guns are still on the table. Rep. John Tierney, a Massachusetts Democrat, plans to introduce a House bill in the next few weeks requiring that all guns include personalization technology within two years.

The smart-gun makers say their products could have prevented the tragedy in Newtown, but critics are doubtful.

"The firearms were accessible to Adam Lanza. They should not have been," said Lawrence Keane, senior vice president and general counsel of the National Shooting Sports Foundation. "If [Mrs. Lanza] had one that had this sort of authorized user recognition onboard the firearm, presumably he would've had access to that."

Keane isn't completely against personalized weapons, but he says the technology isn't reliable enough yet and could even make guns more dangerous.

"It can actually encourage people to leave loaded firearms accessible, relying upon the technology which can fail at the most inopportune time," he said.

The NRA has previously expressed concerns about personalized weapons as well. They did not respond to requests for comment for this story.

Personalized gunmakers agree that this technology won't stop all gun violence, but they say it could be an important step.

"Personalized handguns and personalized technology will save lives of many people and children," said Padilla.

First Published: April 23, 2013: 6:01 AM ET

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Even Abenomics can't ignore Japan debt

Japan will soon hit a gross public debt-to-GDP ratio of 230%.

HONG KONG (CNNMoney)

The gambit, the brainchild of Prime Minister Shinzo Abe, is already having an effect. The yen has depreciated sharply and stocks are at multi-year highs. The IMF has endorsed the plan and Japan has largely avoided charges of currency manipulation.

But some economists are warning that Japan would be wise to attack its rising debt levels with similar vigor by hatching a plan to cut welfare benefits and raise taxes in the medium term.

The problem is severe. Japan's gross public debt is projected to hit 230% of GDP by 2014 after years of sustained deficits.

The Organization for Economic Cooperation and Development, which largely gave its blessing to Abenomics in a report Tuesday, cautioned that Japan must do more to arrest rising debt.

"Stopping and reversing the rise in the debt-to-GDP ratio is crucial," the OECD report said.

It's the same story at the IMF: "Japan needs more ambitious plans to bring down debt, plus structural reforms to shift the economy into higher gear," IMF managing director Christine Lagarde said last week.

Related story: Japan defends easy money gamble

For many years, very low interest rates allowed Japan to issue debt and not be overwhelmed by servicing payments. And Japanese citizens, famous for their savings habit, were happy to buy government bonds. In contrast to countries like Greece, almost all Japanese debt is held domestically.

But risks remain, especially if interest rates spike.

"A significant rise in the long-term interest rate would compound Japan's fiscal predicament and hurt the economy and the financial institutions holding government bonds," the OECD said.

Japanese policymakers, including Finance Minister Taro Aso, have played down this risk.

"We are paying attention to that issue, but [Japan] is different than Greece," Aso told CNN last week.

Related story: Japan owns almost as much U.S. debt as China

Even if rates stay low and the worst scenario is avoided, Japan needs to address long-term structural problems to put its economy on a more sustainable footing.

"Given the unprecedented size of its debt ratio and the risk of higher interest rates, Japan needs a detailed and credible medium-term plan of spending cuts and tax increases, accompanied by improvements in the fiscal policy framework," the OECD said.

The country has to get social security payments to its aging population under control, the group said. Hiking the retirement age is one idea.

Japan's parliament voted last year to double the country's sales tax, but the OECD advocated further measures, including an increase in environmental taxes and a higher value-added tax. The OECD also wants Japan to broaden its tax base by eliminating deductions and loopholes.

The desired reforms will be difficult to implement and require an enormous amount of political will, even if they become priorities for Abe.

Ratings agency Standard & Poor's remains skeptical, saying Tuesday that efforts to get deficits under control in Japan have gone "nowhere."

"Strong fiscal consolidation other than an increase in the sales tax is unlikely in the next few years," S&P said in a report.

First Published: April 23, 2013: 6:32 AM ET

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Netflix stock surges 25% on solid subscriber growth

Netflix trounced Wall Street's earnings expectations thanks to a big increase in video streaming subscribers.

NEW YORK (CNNMoney)

Netflix signed up more than 2 million new U.S. streaming subscribers in the first quarter, which was at the top end of the company's own predictions. The first quarter included the launch of Netflix's most ambitious original series to date: "House of Cards," starring Kevin Spacey.

The strong subscriber gains helped Netflix handily beat analysts' earnings estimates. Profit, excluding one-time debt-related charges, came in at 31 cents per share, while analysts polled by Thomson Reuters were expecting earnings of 19 cents per share.

Sales just topped $1 billion, in line with expectations.

Netflix (NFLX) shares soared 25% in after-hours trading following the company's earnings announcement. That jump could be attributed partially to Netflix's high percentage of short sellers, or investors who "borrow" shares expecting to sell when the price drops. If the stock goes higher, short sellers are forced to buy up shares and cover their positions.

Related story: New Netflix Facebook app lets users share viewing history

Netflix's quarterly earnings report is investors' first look at Netflix's original content plan, which the company first announced in late 2011. Netflix is rolling out a long list of original series this year: A second season of "Lilyhammer," a new season of the canceled "Arrested Development," a kids show from DreamWorks Animation, a new series from horror king Eli Roth, one from comedian Ricky Gervais and another from "Weeds" creator Jenji Kohan.

Hastings said Monday that if the original content is successful in the coming months, Netflix could expand its stable to 20 or more shows.

"In the next two years, it's a modest increase," he said in a conference call with analysts. "If that were wildly successful for us, as the first three shows have been, we could continue to expand to 20 or north, but that would be dependent on what happens the rest of this year."

Though Netflix's results were solid, the company still struck a defensive tone in its letter to shareholders.

"Long term, we believe the value of our original series ... will be borne out as we add more seasons of already popular shows like 'House of Cards' and further series," the company wrote. "Harry Potter was not a phenomenon in book one, compared to later books in the series."

Netflix has reason to be defensive, as analysts have expressed two big concerns about the original content approach. First, the company is releasing all episodes at once -- which means someone could sign up with a free trial for a month to watch "House of Cards" and cancel right afterward.

Netflix addressed that issue head-on in its letter, saying fewer than 8,000 people "gamed" the free trial offer during the quarter.

"Our decision to launch all episodes at once created enormous media and social buzz, reinforcing our brand attribute of giving consumers complete control over how and when they enjoy their entertainment," Netflix wrote in its release.

Critics are also concerned that original series can be costly -- "House of Cards" reportedly cost $100 million for two seasons.

But Netflix spokesman Joris Evers told CNNMoney earlier this year that the company spent about the same amount on "House of Cards" as it would have on an exclusive streaming deal with an outside studio.

Those studios have demanded more for their valuable content over the past two years, as they can now shop their shows around to Netflix rivals: Hulu, Redbox (CSTR), Amazon (AMZN, Fortune 500) and more. HBO (owned by CNNMoney parent company Time Warner (TWX, Fortune 500)) and CBS (CBS, Fortune 500)' Showtime are also expanding their streaming offerings.

That competition has crunched Netflix's streaming growth in the United States, although the last two quarters have each brought more than 2 million new streaming subscriber signups. That gives Netflix a current total of nearly 29.2 million subscribers.

Hastings told analysts that "House of Cards" had generated "a very nice impact" in subscriber growth, "but a gentle impact, not one that's an overnight impact."

Netflix expects that growth to slow in the current quarter. For the second quarter overall, the company expects to add only 230,000 to 880,000 new U.S. streaming customers.

Hastings downplayed concerns that password-sharing could be a problem for the company, saying it was appropriate in the case of immediate family.

"We really don't think that there's much going on of the, 'I'm going to share my password with a marginal acquaintance,'" he said.

CNNMoney's James O'Toole contributed reporting.

First Published: April 22, 2013: 4:33 PM ET

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