Red Cross sees flurry of donations

NEW YORK (CNNMoney) -- In the days since Superstorm Sandy pummeled much of the Northeast with severe winds and torrential flooding, donations to the American Red Cross have been pouring in.

The agency received nearly $35 million through early Friday morning, said Karen Stecher, a Red Cross spokesperson. "The public has been generous," she said.

The Red Cross has been operating shelters and offering food, water and relief supplies to areas struck hard by Sandy. On Thursday night, it housed almost 6,800 people in nearly 100 Red Cross shelters across 8 states. The agency has delivered more than 852,000 ready-to-eat meals and snacks so far, and served more than 215,000 meals.

Donations for Sandy have already exceeded the $8 million given over the entire recovery period for Hurricane Isaac, which struck the Gulf Coast earlier this year, according to Neal Litvack, chief development officer at the Red Cross.

While the initial outpouring has been strong, the destruction has been huge. Helping the millions left without power and thousands temporarily lacking homes or food is likely to cost the agency "tens of millions" of dollars, said Litvack.

Related: Sandy's economic cost up to $50 billion

The Red Cross has received some big corporate donations in the wake of the storm. Companies that have pledged to give $1 million or more include: JPMorgan Chase (JPM, Fortune 500), Walt Disney (DIS, Fortune 500), News Corp (NWS)., Kohl's (KSS, Fortune 500), Morgan Stanley (MS, Fortune 500), Mercedes-Benz USA, and Enterprise Holdings Foundation.

As of midday Friday, businesses had contributed more than $38 million in cash and employee-matching or customer-matching programs to the Red Cross and other relief agencies, according to a tally from the U.S. Chamber of Commerce.

Meanwhile, performers including Bruce Springsteen, Jon Bon Jovi, Christina Aguilera and Billy Joel will use their star power to solicit Red Cross donations at a benefit concert hosted by NBC, airing Friday at 8 p.m. ET.

How to help

If you'd like to donate to the Red Cross online, go to www.redcross.org. You can also mail a check to: the American Red Cross, P.O. Box 37243, Washington, D.C., 20013. To donate by phone, call 1-800-RED-CROSS or give up to $10 by texting the word "REDCROSS" to 90999.

Visit CNN's Impact Your World for more information about the best ways to help hurricane victims, as well as how to volunteer for cleanup efforts.

First Published: November 2, 2012: 4:08 PM ET

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Sandy victims can get unemployment help

Workers left jobless by Hurricane Sandy may qualify for disaster relief payments.

NEW YORK (CNNMoney) -- Residents of three states pummeled by Hurricane Sandy could be eligible for disaster assistance payments if they lost their job due to the storm.

To qualify for the funds, people must be unemployed as a direct result of the storm and be ineligible for traditional unemployment benefits, according to the National Employment Law Project, an advocacy group. Residents of New York City and 14 counties in New York, New Jersey and Connecticut that were declared federal disaster areas are eligible.

One of the costliest disasters in the nation's history, Sandy could generate nearly $50 billion in losses, both from physical damage and lost business revenue, according to estimates.

Payments, which can last up to 26 weeks, range from $405 a week in New York to $648 in Connecticut. Recipients must show that for every week they collect DUA, their unemployment continues to be the direct result of the disaster, not other factors.

Hurricane Sandy could hit jobs in November

According to NELP, those who may be eligible for disaster relief and typically could not collect regular state unemployment benefits include:

--Self-employed people who lost their business or suffered a substantial interruption of activities as a direct result of a major disaster;

--Unemployed workers who have become the major supporter of their household due to the death of the head of their household directly related to the disaster;

--Workers unemployed due to an injury caused by the disaster;

--Workers who cannot reach their employment as a result of the disaster;

--People who were scheduled to start work but became unemployed because they no longer have a job due to the disaster.

First Published: November 2, 2012: 6:16 PM ET

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Earnings at Buffett's Berkshire jump 70%

Click the chart for more info.

NEW YORK (CNNMoney) -- Warren Buffett's Berkshire Hathaway reported third-quarter earnings Friday that surged more than 70% versus a year ago.

Net earnings came in at $3.9 billion, buoyed by investment gains and larger profits from the company's railroad business.

Operating earnings, which exclude some investment and derivative gains, were $3.4 billion, or $2,057 per Class A share, short of the $2,062 estimate from analysts at Thomson Reuters. Berkshire (BRKB) shares were flat in after-hours trading.

Much of Berkshire's derivatives are bets on the value of global stock indexes like the S&P 500. Berkshire's position improves when these index values rally, as they did in the third quarter. The company also booked nearly $600 million in investment gains from sales of securities and loan repayments.

Berkshire is a broad-based investment conglomerate whose holdings include everything from Geico insurance to Burlington Northern Santa Fe railroad to Dairy Queen. It also has stakes in a variety of other large firms.

Earlier Friday, Berkshire announced that it was buying Oriental Trading Company, a leading maker of party favors and novelties based in Omaha, Neb.

The price of the transaction was not disclosed, though The Wall Street Journal reported that it was a $500 million deal.

Buffett said in a recent television interview that Berkshire was interested in making acquisitions, but was finding prices for companies too high. He said low interest rates are driving up prices because other companies are more willing to use leverage to make purchases.

Berkshire uses equity or cash rather than borrowed money to buy companies, so the prices it's willing to pay don't change with interest rates.

The aging Buffett has not publicly revealed a succession plan, but says he has informed Berkshire's board about his preferred candidates. Earlier this year, he underwent radiation treatment for prostate cancer, though he said the illness was "not remotely life-threatening."

First Published: November 2, 2012: 6:33 PM ET

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Red Cross sees flurry of donations

NEW YORK (CNNMoney) -- In the days since Superstorm Sandy pummeled much of the Northeast with severe winds and torrential flooding, donations to the American Red Cross have been pouring in.

The agency received nearly $35 million through early Friday morning, said Karen Stecher, a Red Cross spokesperson. "The public has been generous," she said.

The Red Cross has been operating shelters and offering food, water and relief supplies to areas struck hard by Sandy. On Thursday night, it housed almost 6,800 people in nearly 100 Red Cross shelters across 8 states. The agency has delivered more than 852,000 ready-to-eat meals and snacks so far, and served more than 215,000 meals.

Donations for Sandy have already exceeded the $8 million given over the entire recovery period for Hurricane Isaac, which struck the Gulf Coast earlier this year, according to Neal Litvack, chief development officer at the Red Cross.

While the initial outpouring has been strong, the destruction has been huge. Helping the millions left without power and thousands temporarily lacking homes or food is likely to cost the agency "tens of millions" of dollars, said Litvack.

Related: Sandy's economic cost up to $50 billion

The Red Cross has received some big corporate donations in the wake of the storm. Companies that have pledged to give $1 million or more include: JPMorgan Chase (JPM, Fortune 500), Walt Disney (DIS, Fortune 500), News Corp (NWS)., Kohl's (KSS, Fortune 500), Morgan Stanley (MS, Fortune 500), Mercedes-Benz USA, and Enterprise Holdings Foundation.

As of midday Friday, businesses had contributed more than $38 million in cash and employee-matching or customer-matching programs to the Red Cross and other relief agencies, according to a tally from the U.S. Chamber of Commerce.

Meanwhile, performers including Bruce Springsteen, Jon Bon Jovi, Christina Aguilera and Billy Joel will use their star power to solicit Red Cross donations at a benefit concert hosted by NBC, airing Friday at 8 p.m. ET.

How to help

If you'd like to donate to the Red Cross online, go to www.redcross.org. You can also mail a check to: the American Red Cross, P.O. Box 37243, Washington, D.C., 20013. To donate by phone, call 1-800-RED-CROSS or give up to $10 by texting the word "REDCROSS" to 90999.

Visit CNN's Impact Your World for more information about the best ways to help hurricane victims, as well as how to volunteer for cleanup efforts.

First Published: November 2, 2012: 4:08 PM ET

15.30 | 0 komentar | Read More

Sandy victims can get unemployment help

Workers left jobless by Hurricane Sandy may qualify for disaster relief payments.

NEW YORK (CNNMoney) -- Residents of three states pummeled by Hurricane Sandy could be eligible for disaster assistance payments if they lost their job due to the storm.

To qualify for the funds, people must be unemployed as a direct result of the storm and be ineligible for traditional unemployment benefits, according to the National Employment Law Project, an advocacy group. Residents of New York City and 14 counties in New York, New Jersey and Connecticut that were declared federal disaster areas are eligible.

One of the costliest disasters in the nation's history, Sandy could generate nearly $50 billion in losses, both from physical damage and lost business revenue, according to estimates.

Payments, which can last up to 26 weeks, range from $405 a week in New York to $648 in Connecticut. Recipients must show that for every week they collect DUA, their unemployment continues to be the direct result of the disaster, not other factors.

Hurricane Sandy could hit jobs in November

According to NELP, those who may be eligible for disaster relief and typically could not collect regular state unemployment benefits include:

--Self-employed people who lost their business or suffered a substantial interruption of activities as a direct result of a major disaster;

--Unemployed workers who have become the major supporter of their household due to the death of the head of their household directly related to the disaster;

--Workers unemployed due to an injury caused by the disaster;

--Workers who cannot reach their employment as a result of the disaster;

--People who were scheduled to start work but became unemployed because they no longer have a job due to the disaster.

First Published: November 2, 2012: 6:16 PM ET

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Earnings at Buffett's Berkshire jump 70%

Click the chart for more info.

NEW YORK (CNNMoney) -- Warren Buffett's Berkshire Hathaway reported third-quarter earnings Friday that surged more than 70% versus a year ago.

Net earnings came in at $3.9 billion, buoyed by investment gains and larger profits from the company's railroad business.

Operating earnings, which exclude some investment and derivative gains, were $3.4 billion, or $2,057 per Class A share, short of the $2,062 estimate from analysts at Thomson Reuters. Berkshire (BRKB) shares were flat in after-hours trading.

Much of Berkshire's derivatives are bets on the value of global stock indexes like the S&P 500. Berkshire's position improves when these index values rally, as they did in the third quarter. The company also booked nearly $600 million in investment gains from sales of securities and loan repayments.

Berkshire is a broad-based investment conglomerate whose holdings include everything from Geico insurance to Burlington Northern Santa Fe railroad to Dairy Queen. It also has stakes in a variety of other large firms.

Earlier Friday, Berkshire announced that it was buying Oriental Trading Company, a leading maker of party favors and novelties based in Omaha, Neb.

The price of the transaction was not disclosed, though The Wall Street Journal reported that it was a $500 million deal.

Buffett said in a recent television interview that Berkshire was interested in making acquisitions, but was finding prices for companies too high. He said low interest rates are driving up prices because other companies are more willing to use leverage to make purchases.

Berkshire uses equity or cash rather than borrowed money to buy companies, so the prices it's willing to pay don't change with interest rates.

The aging Buffett has not publicly revealed a succession plan, but says he has informed Berkshire's board about his preferred candidates. Earlier this year, he underwent radiation treatment for prostate cancer, though he said the illness was "not remotely life-threatening."

First Published: November 2, 2012: 6:33 PM ET

15.30 | 0 komentar | Read More

Europe is 'main drag' on global recovery

The U.S. and Chinese economies have started to show signs of growth but Europe will continue to be the main headwind to a sustained recovery.

NEW YORK (CNNMoney) -- The world's two largest economies have been showing signs of improvement, but experts say the recession in Europe remains the biggest challenge to sustained global growth.

In the United States, reports released Thursday showed gains in manufacturing, consumer confidence and private sector payrolls. Also on Thursday, U.S. automakers reported another month of improved car sales in October, even as Superstorm Sandy may have dampened month-end results.

Factoring in a boost from construction spending and lower imports, the latest indicators suggest the U.S. economy may have grown at a slightly faster rate in the third quarter, according to Michael Englund, an economist at Action Economics. He expects third-quarter GDP to come in at 2.3%, higher than the Commerce Department's recent reading of 2% growth.

The upbeat data comes just ahead of the Labor Department's all-important monthly jobs report. Economists surveyed by CNNMoney expect employers added 125,000 jobs in October, while the unemployment rate is forecast to drop to 7.8%.

Meanwhile, in China, factories have been ramping up activity, suggesting that the slowdown in the world's second largest economy may not be as sharp as feared.

Despite the recent green shoots, economists say weakness in Europe will continue to weigh on the global recovery.

Related: Complete coverage of Europe's debt crisis

"The eurozone is not out of the woods yet," said Kevin Dunning, a member of the Economist Intelligence Unit in London. "The recession looks like it will be long and dragged out, even if financial conditions are not quite as tense as they were."

The European Central Bank has taken steps to calm volatile financial markets, but economists still expect the 17-nation currency union to remain hobbled well into 2013.

Unemployment in the eurozone rose to a record high of 11.6% in September. And preliminary data released earlier this month showed the weakest reading for eurozone manufacturing and service activity in 40 months, suggesting the region could fall deeper into recession in the fourth quarter.

"The eurozone situation is still unresolved," said Sara Johnson, research director of global economics at IHS Global Insight. "It's taking a long time to put in place the framework for banking and fiscal union to support the monetary union."

The Japanese economy, the third largest in the world, remains stagnant, she added. And the global economy faces geopolitical risks from the unsettled situation in the Middle East and North Africa.

In addition, the U.S. economy is in danger of falling back into recession if policymakers in Congress cannot come to an agreement on the so-called fiscal cliff, a potentially disastrous combination of automatic tax hikes and spending cuts set to take effect next year.

Related: A snapshot of Obama's economy

"All of these factors are keeping businesses sidelined in terms of investment and employment," said Johnson, who expects global GDP to grow between 2.5% and 2.6% next year.

Even if growth in China picks up in the current quarter, Europe will be "the main drag" on global growth next year as the "deleveraging" by businesses and households continues, said Dunning. Europe is China's main trading partner, and weak demand in many euro area economies will keep a lid on China's export-driven economy.

The situation in other emerging nations is not much better. The Brazilian economy, for example, has slowed sharply as global demand for natural resources has waned.

First Published: November 1, 2012: 9:47 PM ET

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Starbucks shares rise on strong sales

NEW YORK (CNNMoney) -- Starbucks served up some encouragement to investors Thursday with quarterly results that showed strong sales growth.

The Seattle-based chain posted earnings close to analyst estimates. More reassuring was news that same-store sales rose 6%, and that the company increased its dividend from 17 cents to 21 cents a share.

Shares jumped 7% in after-hours trading, a different story from three months ago, when the company reported lackluster results that it attributed in part to global economic challenges.

"I think the market overreacted last quarter to a mild slowdown in U.S. stores that obscured the long-term potential of this business," said R.J. Hottovy, an analyst with Morningstar.

Starbucks (SBUX, Fortune 500) is expanding aggressively internationally, with plans to open 600 new stores in the Asia-Pacific region during its 2013 fiscal year, including more than 300 in China. Last month, the company opened its first location in India as well.

In a conference call with analysts Thursday afternoon, Starbucks executives also touted expected holiday revenue from sales of the Verismo, the company's single-cup home-brewing machine, which could eat into sales of Keurig machines from competitor Green Mountain Coffee Roasters (GMCR).

First Published: November 1, 2012: 5:50 PM ET

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Stocks on hold before jobs report

Click the chart for more premarket data.

NEW YORK (CNNMoney) -- U.S. stock futures were little changed Friday as investors braced for the final jobs report before the presidential election.

The session will close a week shortened by Superstorm Sandy, as the area around the New York Stock Exchange remains without power for the fourth day.

The government's monthly jobs report takes the spotlight. Economists surveyed by CNNMoney expect the report, due at 8:30 a.m. ET, to show the economy added 125,000 jobs last month. The unemployment rate is predicted to have ticked up to 7.9% from 7.8% in September.

Earlier in the week, when then-Hurricane Sandy was in full swing, it was unclear whether the jobs report would come out on Friday. Federal offices were closed for two days this week, throwing the Labor Department's ability to produce the highly anticipated report into doubt. But when the department re-opened on Wednesday, it assured the report was still on schedule.

After the start of trade on Friday, the Census Bureau will release data on September factory orders. Chevron (CVX, Fortune 500) and Alcatel-Lucent (ALU) will announce their quarterly results before the open.

U.S. stocks finished higher Thursday, starting November on a high note after mostly upbeat jobs reports.

Fear & Greed Index

World Markets: European stocks were lower in morning trade. Britain's FTSE 100 and the DAX in Germany slipped 0.1%, while France's CAC 40 lost 0.2%.

Asian markets closed higher. The Hang Seng in Hong Kong added 1.3%, and Japan's Nikkei rose 1.2%. The Shanghai Composite gained 0.6%.

Economy: September factory orders are expected to have increased by 4.5%, according to a survey of analysts by Briefing.com.

Companies: Shares of Starbucks (SBUX, Fortune 500) rose 7.3% in premarket trading Friday, one day after the coffee shop operator reported strong same-store sales growth and increased its dividend.

LinkedIn's (LNKD) stock soared 9% in premarket, after the company topped Wall Street's expectations.

Currencies and commodities: The dollar was flat against the euro and the British pound, and it gained against the Japanese yen.

Oil for December delivery fell nearly 1% to $86.29 a barrel.

Gold futures for December delivery slipped to $1,707.70 an ounce.

Bonds: The price on the benchmark 10-year U.S. Treasury slipped, pushing the yield up to 1.72% from 1.71% late Thursday.

First Published: November 2, 2012: 6:12 AM ET

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19 bags of rotting food, and a business at risk

NEW YORK (CNNMoney) -- There are only so many disasters a business owner can prepare for, and Superstorm Sandy wasn't one of them.

Wednesday marked the first time employees at Jerry's Cafe in lower Manhattan were able to return check out the damage. The floods hadn't reached it, and as far as they could tell, wind hadn't broken anything. But the restaurant, like thousands of other businesses in the area, had lost power.

To homeowners, that's an inconvenience. To restaurant owner Frits de Knegt, it means losing money. Lots of money.

The pitch black basement smelled of stale feta cheese as de Knegt's restaurant managers, armed with flashlights, filled 19 garbage bags with rotting food.

Meanwhile, 73-year-old de Kneght sat in his powerless apartment a mile north in SoHo and did the math: If power comes back by week's end, he'll lose $50,000.

Compared the utter destruction seen along the New Jersey coast, ruined food sounds minor. But small businesses often run on thin profit margins.

It's almost too much for de Kneght to bear.

Related: Insurance may not pay for Sandy shutdowns

He has decided to pay his workers at least partially, even though Jerry's remains closed. While on the phone hearing about the damage, he considers simply closing or selling the place instead. Then he pauses.

"These people have families to feed," he said of his 26 workers. "A week out of work is devastating to these people. I think about when I was in their shoes, when I was a young man working for somebody."

He's reminded of that moment in 1958, when he was cut from a New York restaurant's waiting staff. It was the last time he worked for someone else.

"I still remember that feeling of abandonment, fear," he recalled. "I said to myself, 'If I'm ever in that position, I will not do this.'"

Also on Chambers Street, just a few steps away from Jerry's Cafe, Quiznos franchise owner Erfan Mia has similar struggles. His last delivery came in the day before the storm, and when the power went off, he lost it all. Mia sat in the shadows inside his tiny restaurant as workers cleaned out smeared containers behind the counter.

Mia's loss won't stop at the $10,000 of rotting meats, cheeses and ingredients. Power is expected to come back on Saturday, but Mia will have to wait until then to order a new shipment from vendors. The problem is, so will everyone else. And even when the food does eventually arrive, it'll be a few more days before regular customers realize he's open again. The end tab might be closer to $25,000, he guessed.

"We'll have to go into debt," Mia said. "We cannot even keep up with the rent."

Mia and other small business owners perched along Chambers Street don't expect insurance to be much help either. They all bought run-of-the-mill business insurance, but none of them invested in a plan that covers hurricanes.

And a bitter surprise awaits those who bought yet another layer of protection for unexpected shutdowns, business interruption insurance. It probably won't apply, because policies only kick in if a business property is physically damaged. No money is offered to those who can't serve customers without power. The same applies to businesses along New York's 57th Street, where a massive crane dangles precariously above a road that remains closed off to workers and customers.

"If you claim $15,000, they'll maybe give you $5,000," Mia said.

"In six months," chimed in Alam Khan, owner of a nearby Tasti D-Lite ice cream shop.

Do you have a small business that was slammed by superstorm Sandy? Email Jose Pagliery to share your story.

First Published: November 1, 2012: 3:06 PM ET

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