Key report on jobs at risk in shutdown

NEW YORK (CNNMoney)

Bureau of Labor Statistics commissioner Erica Groshen said in a memo Friday that "all survey and other program operations will cease and the public website will not be updated." Nearly all of the agency's 2,400 employees will be part of government-wide furloughs.

The government has not labeled the release of economic data as essential and necessary to produce in a shutdown.

But there is some precedent for such a report being released. During the 1995 government shutdown, the Clinton Administration put out the Consumer Price Index, because the information was ready to go and officials were concerned about the "risk of disclosure."

Groshen said that this time, the jobs data could be released if the White House budget office authorizes it. Her agency would then need a small staff to come in during a shutdown.

The White House budget office is spearheading shutdown planning for the government. Neither White House nor BLS officials immediately returned CNNMoney's calls.

The jobs report is of particular importance this month. The Federal Reserve is monitoring the report as it comes closer to a decision on when to begin cutting back on its economic stimulus program.

Related: What happens on Day 1 of a shutdown

Other government economic reports could also get delayed. The Commerce Department's regularly scheduled reports on construction and factory orders are due out Tuesday and Thursday. Spokeswoman Sarah Horowitz said the department would not release economic indicators in the event of a shutdown.

In a separate memo, the Labor Department said it is prepared to release its weekly unemployment data, as scheduled on Thursday.

First Published: September 29, 2013: 2:12 PM ET

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Missing from Asia's boardrooms? Women

HONG KONG (CNNMoney)

The problem is most acute at the very top of the corporate ladder, where in many cases, women are nowhere to be found.

Women occupied only 6% of corporate board seats in Asia in 2011, according to a study conducted by McKinsey. That puts the region well behind Europe and the United States, where 17% and 15% of board seats are held by women.

In South Korea, only around 1% of company board members are women. The figure is 2% in Japan, 5% in India, 6% in Indonesia and 7% in Singapore.

Even in Hong Kong -- Asia's finance capital and one of the most progressive cities in the region -- data compiled by transparency advocate David Webb shows that 40% of companies have no women on the board. Another 38% of boards have only one female representative.

"Where we are today is so woefully inadequate," said Su-Mei Thompson, CEO of The Women's Foundation. "The statistics show the pace of change is too slow."

The argument for more women on corporate boards -- aside from basic issues of equality -- is that companies make better decisions when a variety of views are considered. There is even some evidence to suggest that firms with diverse boards outperform their more homogenous rivals.

Related story: Why the U.S. lags Europe (and others) on board diversity

There are a few bright spots in Asia -- Australia, for one. But overall, women in Asia are underrepresented regardless of their home country's wealth or development level. The disparity is even more alarming given that half of Asia's college graduates are female.

Part of the gap can be attributed to cultural factors, which contribute to Asia's relatively low rate of female participation in the workforce. In countries like India, women have significantly lower literacy rates and reduced access to education. In other parts of the region, women face outright sexism and an entrenched old boys' club.

Japan's female employment rate is currently around 60%, far below the 80% rate for men.

Related story: 50 Most Powerful Women in Business

Women in Asia also encounter pressure at home -- and large numbers of educated women exit the workforce after having children. The end result is fewer qualified women in company ranks.

The McKinsey report suggests that corporations deserve some blame for not making the issue a priority. According to a survey conducted by the group, 70% of executives in Asia said greater gender diversity was not a strategic imperative.

"If companies want to see more women in their leadership teams, they will have to address the cultural and organizational issues that prevent them moving through the corporate pipeline," the McKinsey researchers wrote.

Related story: Why are there still so few women in top leadership jobs?

Some progress is being made. The Hong Kong Stock Exchange, for example, has introduced a rule that requires listed companies to report on their board diversity. While it does not mandate more women on boards, Thompson said it will force companies to consider the issue in a more serious way.

"We would hope that companies would not just pay lip service to this requirement, and actually really examine the makeup of their boards," she said.

For now, there is little chance of rules requiring more diversity -- a strategy tried elsewhere with some success. Norway, for example, enacted a law in 2003 that forced companies to appoint women to 40% of board posts. After some grumbling, firms complied, and today the country's boardrooms are the most diverse in the world.

First Published: September 29, 2013: 9:59 PM ET

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Nissan, Mazda recall cars

The recall included Mazda6s from model years 2009 through 2013.

NEW YORK (CNNMoney)

Mazda warned that doors in up to 98,000 Mazda6 sedans could open while the cars are in motion. The company blamed door latching screws used in model years 2009 through 2013. The company said dealers would apply a thread-locking adhesive, replace any missing screws and tighten them.

Nissan said two of its Infiniti model cars could stall while in motion. The M35 and M45 sedans of model years 2006 to 2010 -- over 161,000 cars -- could have accelerator pedal sensors that deteriorate. The sensor could send incorrect signals to the engine, causing it to stall while the vehicle comes to a stop or is idling, Nissan said.

Nissan has previously recalled vehicles, including some Infiniti series models from 2005 and 2006, for stalling issues.

Both automakers said they would notify vehicle owners this fall. Neither reported any injuries as a result of the issues.

Toyota also announced a recall this week of 615,000 Sienna minivans, saying a mechanism issue could allow some vehicles to roll away when parked.

First Published: September 29, 2013: 3:41 PM ET

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Wells Fargo: A bargain if you're bullish on housing

Wells Fargo has become the leading bank in home mortgages.

(Money Magazine)

The nation's fourth-largest bank is a powerhouse in mortgages, thanks to the fact it ended up with fewer toxic assets than other big banks, and was able to snap up another large mortgage player, Wachovia.

Refis as a % of mortgage applications

Source: Wells Fargo

So is Wells, whose stock price has already risen 64% in two years, a good buy now that home prices are rising? That depends on what's driving the rebound: Is it just low rates -- now rising -- or a healthier economy too?

The housing heavyweight

Home prices are up more than 10% this year, and many signs point to a continued recovery. Builders are hiring more workers, sales of foreclosures are falling, and inventory has been getting tighter in markets from Southern California to Washington, D.C.

"[Wells] has a lot to gain from a housing recovery," says Morningstar analyst James Sinegal. It originates more than 22% of home mortgages -- double the amount of the second-biggest lender. Its balance sheet is getting healthier too. Charge-offs, or loans Wells considers uncollectible, are at their lowest since 2006.

Related: Are we still heading toward 5% mortgages?

Wells increased its dividend 20% in April to $1.20, and Edward Jones analyst Shannon Stemm expects the payout to grow 7% a year into 2018.

Rising rates hit refis

After sinking to historic lows, interest rates are rising as investors anticipate higher growth because the Federal Reserve is signaling it will slow down its economic stimulus effort, a bond-buying program known as quantitative easing.

The good news: Higher rates mean Wells' fee stream from mortgages it services becomes more predictable as fewer borrowers refinance, says S&P Capital IQ analyst Erik Oja.

The flip side is that Wells is losing a big chunk of its mortgage originations. If the economy strengthens, more home sales will make up for some of that lost refi revenue, but Christopher Mutascio, an analyst at Keefe, Bruyette & Woods, thinks it won't close the gap for Wells.

Leaning in to Wall Street

Another increasingly important part of Wells Fargo's success is its asset management business. In the second quarter of 2013, net income from managing money rose 27% compared with 2012. The stock market's performance -- the S&P 500 (SPX) returned 16% in the past year -- has bolstered results. But Wells "may not be able to sustain this momentum in a tougher equity market," Sinegal wrote in a recent report. Mutascio worries the end of quantitative easing could trigger that tough market.

Related: Wells Fargo lays off 2,300 employees

With a price/earnings ratio of 11 based on 2014 expected earnings, Wells' shares are a bit cheaper than other banks' stocks, but it has more riding on the performance of both real estate and Wall Street. That makes Wells Fargo a buy only for bulls.

First Published: September 27, 2013: 4:11 PM ET

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ExxonMobil to extend benefits to same-sex couples

ExxonMobil announced Friday it will extend benefits to same-sex couples.

NEW YORK (CNNMoney)

Beginning Oct. 1, ExxonMobil employees in legal same-sex marriages will be eligible to receive health insurance coverage for their spouses, the oil giant said in a statement.

The company's decision was less of a change of heart than it was a technical update stemming from this summer's Supreme Court decision to recognize same-sex marriages for federal purposes.

Related: Pasta maker Barilla under fire for anti-gay comments

"The decision is consistent with the direction of most U.S. government agencies," ExxonMobil said in the statement. "We have made no change in the definition of eligibility for our U.S. benefit plans. Spousal eligibility in our U.S. benefit plans has been and continues to be governed by the federal definition of marriage and spouse."

ExxonMobil (XOM, Fortune 500) has long been criticized for having anti-LGBT policies. It currently has a lawsuit pending against it for discriminating against a lesbian applicant, and it received the lowest "corporate equality" score of any U.S. company in last year's Human Rights Campaign rankings.

Related: Same-sex benefits at conservative Wal-Mart: What gives?

Friday's announcement was therefore welcomed by gay rights groups.

"After years of stubbornly refusing, we commend Exxon for joining the majority of the Fortune 500 business leaders that already treat gay and lesbian married couples equally under employee benefit plans," Tico Almeida, president of Freedom to Work, said in a statement. "It's a shame Exxon waited until after the Labor Department issued official guidance explaining that their old policy does not comply with American law, and now it's time to move forward."

A growing number of companies have been updating their policies to become more LGBT-friendly. This summer, Walmart (WMT, Fortune 500) announced it will offer benefits to same-sex and domestic partners. As of the beginning of this year, 89% of U.S. companies provide health benefits to same-sex couples, according to the Human Rights Campaign.

But other companies continue to get bad press from the LGBT community. Just Thursday, pasta maker Barilla came under fire for comments its CEO made about refusing to feature same-sex couples in the company's commercials. The remarks sparked a firestorm on Twitter and led to a boycott of the company's products.

First Published: September 27, 2013: 4:41 PM ET

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Airbnb wins legal victory in New York City

Users list spaces for rent on Airbnb.

NEW YORK (CNNMoney)

Airbnb offers a platform for people to rent out their homes or apartments to travelers. New York's Environmental Control Board ruled Thursday that Airbnb user Nigel Warren was permitted under city housing laws to rent out a portion of the apartment through the service because his roommate was present at the time.

Warren's landlord had been facing a $2,400 fine following an earlier ruling.

The decision is a significant one for Airbnb, which has been frustrated in New York by a law stating that residents can't rent out all or part of a property for fewer than 30 days. Airbnb has argued that the law is meant to crack down on landlords who buy residential buildings and run hotels out of them, not on individual tenants.

Related: Hey, taxi company, you talkin' to me?

Airbnb called the decision "a victory for the sharing economy and the countless New Yorkers who make the Airbnb community vibrant and strong."

"This episode highlights how complicated the New York law is, and it took far too long for Nigel to be vindicated," the company said in a blog post. "That is why we are continuing our work to clarify the law and ensure New Yorkers can share their homes and their city with travelers from around the world."

Airbnb filed motions in support of Warren, though the site warns users in its terms of service that they're the ones on the hook if they fall into legal trouble.

The New York City Buildings Department did not respond to a request for comment.

First Published: September 27, 2013: 6:59 PM ET

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ExxonMobil to extend benefits to same-sex couples

ExxonMobil announced Friday it will extend benefits to same-sex couples.

NEW YORK (CNNMoney)

Beginning Oct. 1, ExxonMobil employees in legal same-sex marriages will be eligible to receive health insurance coverage for their spouses, the oil giant said in a statement.

The company's decision was less of a change of heart than it was a technical update stemming from this summer's Supreme Court decision to recognize same-sex marriages for federal purposes.

Related: Pasta maker Barilla under fire for anti-gay comments

"The decision is consistent with the direction of most U.S. government agencies," ExxonMobil said in the statement. "We have made no change in the definition of eligibility for our U.S. benefit plans. Spousal eligibility in our U.S. benefit plans has been and continues to be governed by the federal definition of marriage and spouse."

ExxonMobil (XOM, Fortune 500) has long been criticized for having anti-LGBT policies. It currently has a lawsuit pending against it for discriminating against a lesbian applicant, and it received the lowest "corporate equality" score of any U.S. company in last year's Human Rights Campaign rankings.

Related: Same-sex benefits at conservative Wal-Mart: What gives?

Friday's announcement was therefore welcomed by gay rights groups.

"After years of stubbornly refusing, we commend Exxon for joining the majority of the Fortune 500 business leaders that already treat gay and lesbian married couples equally under employee benefit plans," Tico Almeida, president of Freedom to Work, said in a statement. "It's a shame Exxon waited until after the Labor Department issued official guidance explaining that their old policy does not comply with American law, and now it's time to move forward."

A growing number of companies have been updating their policies to become more LGBT-friendly. This summer, Walmart (WMT, Fortune 500) announced it will offer benefits to same-sex and domestic partners. As of the beginning of this year, 89% of U.S. companies provide health benefits to same-sex couples, according to the Human Rights Campaign.

But other companies continue to get bad press from the LGBT community. Just Thursday, pasta maker Barilla came under fire for comments its CEO made about refusing to feature same-sex couples in the company's commercials. The remarks sparked a firestorm on Twitter and led to a boycott of the company's products.

First Published: September 27, 2013: 4:41 PM ET

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Wells Fargo: A bargain if you're bullish on housing

Wells Fargo has become the leading bank in home mortgages.

(Money Magazine)

The nation's fourth-largest bank is a powerhouse in mortgages, thanks to the fact it ended up with fewer toxic assets than other big banks, and was able to snap up another large mortgage player, Wachovia.

Refis as a % of mortgage applications

Source: Wells Fargo

So is Wells, whose stock price has already risen 64% in two years, a good buy now that home prices are rising? That depends on what's driving the rebound: Is it just low rates -- now rising -- or a healthier economy too?

The housing heavyweight

Home prices are up more than 10% this year, and many signs point to a continued recovery. Builders are hiring more workers, sales of foreclosures are falling, and inventory has been getting tighter in markets from Southern California to Washington, D.C.

"[Wells] has a lot to gain from a housing recovery," says Morningstar analyst James Sinegal. It originates more than 22% of home mortgages -- double the amount of the second-biggest lender. Its balance sheet is getting healthier too. Charge-offs, or loans Wells considers uncollectible, are at their lowest since 2006.

Related: Are we still heading toward 5% mortgages?

Wells increased its dividend 20% in April to $1.20, and Edward Jones analyst Shannon Stemm expects the payout to grow 7% a year into 2018.

Rising rates hit refis

After sinking to historic lows, interest rates are rising as investors anticipate higher growth because the Federal Reserve is signaling it will slow down its economic stimulus effort, a bond-buying program known as quantitative easing.

The good news: Higher rates mean Wells' fee stream from mortgages it services becomes more predictable as fewer borrowers refinance, says S&P Capital IQ analyst Erik Oja.

The flip side is that Wells is losing a big chunk of its mortgage originations. If the economy strengthens, more home sales will make up for some of that lost refi revenue, but Christopher Mutascio, an analyst at Keefe, Bruyette & Woods, thinks it won't close the gap for Wells.

Leaning in to Wall Street

Another increasingly important part of Wells Fargo's success is its asset management business. In the second quarter of 2013, net income from managing money rose 27% compared with 2012. The stock market's performance -- the S&P 500 (SPX) returned 16% in the past year -- has bolstered results. But Wells "may not be able to sustain this momentum in a tougher equity market," Sinegal wrote in a recent report. Mutascio worries the end of quantitative easing could trigger that tough market.

Related: Wells Fargo lays off 2,300 employees

With a price/earnings ratio of 11 based on 2014 expected earnings, Wells' shares are a bit cheaper than other banks' stocks, but it has more riding on the performance of both real estate and Wall Street. That makes Wells Fargo a buy only for bulls.

First Published: September 27, 2013: 4:11 PM ET

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Airbnb wins legal victory in New York City

Users list spaces for rent on Airbnb.

NEW YORK (CNNMoney)

Airbnb offers a platform for people to rent out their homes or apartments to travelers. New York's Environmental Control Board ruled Thursday that Airbnb user Nigel Warren was permitted under city housing laws to rent out a portion of the apartment through the service because his roommate was present at the time.

Warren's landlord had been facing a $2,400 fine following an earlier ruling.

The decision is a significant one for Airbnb, which has been frustrated in New York by a law stating that residents can't rent out all or part of a property for fewer than 30 days. Airbnb has argued that the law is meant to crack down on landlords who buy residential buildings and run hotels out of them, not on individual tenants.

Related: Hey, taxi company, you talkin' to me?

Airbnb called the decision "a victory for the sharing economy and the countless New Yorkers who make the Airbnb community vibrant and strong."

"This episode highlights how complicated the New York law is, and it took far too long for Nigel to be vindicated," the company said in a blog post. "That is why we are continuing our work to clarify the law and ensure New Yorkers can share their homes and their city with travelers from around the world."

Airbnb filed motions in support of Warren, though the site warns users in its terms of service that they're the ones on the hook if they fall into legal trouble.

The New York City Buildings Department did not respond to a request for comment.

First Published: September 27, 2013: 6:59 PM ET

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China to launch mysterious free trade zone in Shanghai

China's new free trade zone is set to launch in Shanghai.

HONG KONG (CNNMoney)

Investors have reacted with great enthusiasm, snapping up huge amounts of real estate in the area and driving up the share price of any company with "Shanghai" in its name.

But there's just one problem -- the government hasn't said much about how it plans to run the program.

"There are no real details," said Shaun Rein, managing director of China Market Research Group. "Everybody wants to know what it is. But it's just a lot of rumors."

In broad strokes, the 29 square kilometers free trade zone, approved in August by China's State Council, is expected to make it easier to do business in a small part of China.

Trade policies are likely to be more tax-friendly, and foreign investment bans could be removed in sectors such as health care and insurance. Beijing could also tackle financial reforms by lifting restrictions on bank interest rates, supporting greater convertibility of the yuan and encouraging a broader range of financial services.

More information could be released in November during a Community Party meeting. But experts say reforms that could contribute to the program's success won't be introduced overnight.

"One reason is that officials will want to avoid the instability that might follow a 'big bang' approach," said Mark Williams and Qinmei Wang of Capital Economics. "A second is that simply reaching agreement on how to proceed will prove difficult given the various ministries, regulators and levels of government involved."

Related story: China offers big risk, bigger reward

The start of Shanghai's free-trade zone comes at a critical point for China. The country is challenged with stabilizing growth after years of exponential expansion, and has come under increasing pressure to open up its economy.

Many economists remain optimistic about the zone's potential benefits. Reforms that prove successful in Shanghai could be rolled out nationwide, marking a significant change, as China's markets and investments are currently tightly controlled by the government.

Barclays economist Jian Chang said the program is "crucial to invigorating the economy and unleashing its growth potential."

Overall, it's "an important step for China to further open its market and a weather vane of the next phase of reforms initiated by the new government," said JPMorgan analyst Haibin Zhu.

Related story: China's $8 billion plan to rival Hollywood

Opening up Shanghai also puts greater pressure on Hong Kong, which "promotes itself as the world's business gateway to China," Chang said.

Hong Kong will be able to weather the competition, at least in the short-term, because it's far more established as a business hub, she said.

Other, less comprehensive, recent government pilots included an experimental financial zone in Shenzhen and another financial reform test project in Wenzhou. China also established special economic zones in the 1980s that promoted the manufacturing sector.

First Published: September 26, 2013: 11:04 PM ET

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Obamacare delay for small business exchanges

NEW YORK (CNNMoney)

Although the federally-run marketplaces will launch this upcoming Tuesday, small businesses won't be able to enroll online until November. Instead, they'll be forced to sign up via fax or paper mail, according to a U.S. Health and Human Services Department official.

After months of assurances that the federal government would meet its own Oct. 1 deadline, the Obama administration acknowledged the delay on Thursday.

In a press release, the health department noted that "all functions" of the small business exchanges "will be available in November." In other words, it won't all be ready by October.

The business exchanges, also known as the Small Business Health Options Program (SHOP), are meant to provide an easier and cheaper venue for business owners to shop for health insurance for their employees. It's supposed to offer entrepreneurs a single website where they can compare similar health plans. The system is designed to lower premiums by grouping many small business employees together -- something the insurance industry describes as pooling risk.

However, business owners shopping on the exchanges will find their options limited in the first few weeks. For example, they'll be able to peek at health plan overviews but won't see details, like accurate estimates of premium costs.

Related: Are employers dumping health benefits because of Obamacare?

Businesses won't be made eligible for plans on the exchanges -- or federal tax credits -- until November. However, health officials say they're sure Obamacare coverage will be up and running by January, as mandated by the 2010 Affordable Care Act.

While these delays will affect the small business exchanges, they won't apply to individual exchanges -- the marketplaces where people can shop for their own insurance. It's a distinction some find confusing.

Senior Obama administration officials offered no explanation for the delay, but said they want to make sure the exchanges function correctly -- especially because they expect glitches. Officials minimized the importance, saying they don't expect many people or businesses to enroll right at the start anyway.

Critics of Obamacare were quick to jump on the issue as yet another sign that health care reform is fraught with problems. Missouri's Rep. Sam Graves, who leads the House Small Business Committee, hopes it will help convince others to join him and fellow Republicans in their latest attempts to repeal the law.

"This delay matters because it is another sign that serious glitches remain and it leads to more and more confusion and uncertainty for many small businesses about compliance," Graves said in an email.

Related: Delay in Obamacare employer mandate

Still, some question the significance of the delay, saying that few businesses plan to use the SHOP exchanges anyway, and will go through brokers instead.

"People will continue to use brokers because it's the same cost, and you get a broker's knowledge, expertise and experience to guide you through buying insurance," said Timothy Finnell, a health care broker who services small businesses in Tennessee.

The enrollment delay is the latest in a series affecting Obamacare's implementation. In April, the Obama administration decided to narrow the scope of the SHOP exchanges. In 2014, businesses that turn to the exchanges will be limited to choosing a single plan to cover all their employees. It'll be another year before they can put employees on different plans.

Then in July, the administration pushed back the employer mandate. Previously, companies with 50-plus full-timers had to start providing coverage in 2014 or face penalties. Now they have until 2015.

First Published: September 26, 2013: 5:38 PM ET

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The best (and worst) crash avoidance technologies

The Insurance Institute for Highway Safety used a target made from inflatable tubes and vinyl sheets to test which collision avoidance systems best reduced impacts.

NEW YORK (CNNMoney)

Crash statistics show that these systems really do reduce car crashes, according to the Insurance Institute for Highway Safety, which conducted tests to measure effectiveness. But they don't come cheaply.

"Front crash prevention systems can add a thousand dollars or more to the cost of a new car. Our new ratings let consumers know which systems offer the most promise for the extra expense," said David Zuby, IIHS chief research officer.

The Institute rated the systems as Basic, Advanced or Superior. Auto-braking systems in vehicles rated Superior substantially reduced speeds, and in some cases stopped the vehicles altogether, in tests at 12 and 25 miles per hour. In many cases even top-rated systems couldn't avoid a crash but only reduced the severity of an impact. Even that is significant for safety, the Institute said.

To earn an Advanced rating, a vehicle had to avoid a crash or reduce impact speed by at least 5 miles per hour in either the 12 or 25 mph tests, but not necessarily in both. (In the tests, the vehicles were driven toward a large cloth box designed to simulate the back end of a stopped SUV.) Some of the systems rated as Advanced reduced speeds only slightly or not at all at the higher speed.

Related - Tesla: Our crash test score is better than perfect

In this round of tests, the Subaru Legacy and Outback were the only vehicles to entirely avoid a collision even at 25 mph.

In its first round of ratings, the Insurance Institute looked at 74 different vehicles. Those that earned the rating of Superior were properly equipped versions of General Motor' (GM, Fortune 500) Cadillac ATS and SRX, Mercedes-Benz' C-class, Subaru's Legacy and Outback and the Volvo S60 and XC60.

Vehicles that earned the Advanced rating were the Acura MDX, Audi A4 and Q5 SUV, Jeep Grand Cherokee, Lexus ES, Mazda6, Volvo S60 and XC60. The Volvo models that earned this rating had less expensive versions of the auto-braking system.

To earn the lowest rating of Basic, a vehicle is not required to have automatic braking but must at least provide a warning of an imminent collision in five of seven tests. Most of the vehicles rated as Basic didn't have systems designed to provide automatic braking at all. The few that had automatic braking systems just weren't good enough, the Institute said.

Gallery - 8 little cars with big space inside

For instance, the system on the Infiniti JX35 -- recently renamed the QX60 -- didn't perform well enough. Institute spokesman Russ Rader called the JX35's braking "minimal."

"Infiniti is proud to have been a pioneer in automotive crash avoidance and mitigation systems. We will study the result of this new test by IIHS as we continue to develop future technologies," said Nissan (NSANF) spokesman Steve Oldham. Nissan makes Infinity vehicles.

The Toyota Prius V hybrid wagon offers an auto-braking system that performed so poorly in tests by the federal government's National Highway Transportation Safety Administration that the Insurance Institute didn't even include it in its own tests. The Prius V failed to meet NHTSA criteria for collision warning -- let alone automatic braking -- the Institute said, so it didn't meet the minimum criteria to be included.

Toyota spokesman John Hanson explained that Toyota's system was designed before NHTSA had announced its criteria for collision warning systems. Also, Hanson said, the Prius V's system is an inexpensive technology designed to minimize, but not prevent, collisions while being affordable in a non-luxury vehicle.

"We agree with IIHS that we need to move these technologies into the mainstream quickly," he said.

The BMW 3-series, meanwhile, has a system that's designed to work only if radar detects the vehicle ahead moving before it stops. The Insurance Institute said that was not good enough.

"The point of auto-brake systems is to help inattentive drivers avoid rear-ending another car," Zuby said. "It's clear that the ability to automatically brake for both stopped and moving vehicles prevents the most crashes."

In 2014 model year vehicles, BMW does offer a system that responds to stationary vehicles, BMW spokesman David Buchko said.

A complete list of the test results is available on the Insurance Institute's Web site. The Insurance Institute for Highway Safety is a private group financed by insurance companies.

First Published: September 27, 2013: 12:25 AM ET

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California to pay backlogged unemployment claims

Carol Malichky is one of 80,000 California residents who still hasn't received her unemployment checks, after the state switched to a new computer system. Click the photo to read more stories.

NEW YORK (CNNMoney)

Staff at California's Employment Development Department had been working around the clock to manually process the claims, which have been piling up since the state switched to a new computer system over Labor Day weekend.

The pressure grew as desperate claimants had been jamming the agency's phone lines and filling its Facebook page with hundreds of complaints.

Related: The safety net failed me

Carol Malichky, 49, of Glendale, Calif. said she hasn't received five weeks of checks, totaling more than $1,000, and is at the point where she may not be able to pay rent next week. Christina Katcher, 46 of San Marcos, said she called EDD more than 400 times one day, just to get through to a real person.

Then late Tuesday, the head of California's state labor agency, Marty Morgenstern issued a letter directing the state's unemployment agency to pay out all backlogged claims as soon as possible, without even investigating their individual merit.

"Even with these actions and others, it is unlikely that the claims backlog will be reduced quickly enough to respond to the very real financial hardship now being experienced by too many of our residents relying on timely payment of their UI benefits," Morgenstern said in the letter. "Consequently, I am directing EDD to immediately begin the process of paying backlogged claims for continued UI benefits prior to a final determination of eligibility."

Undoubtedly, some people who are ineligible for benefits will end up receiving them anyway, and Morgenstern directed the EDD to try to recover those overpayments at a later date.

This means some people will receive a payment, but if they're later found to be ineligible, they'll be asked to pay it back to the state of California.

Related: 8 unemployment scams

Why such desperate measures?

The EDD is short-staffed as a result of federal funding cuts. Whereas two years ago, the state had about 3,200 employees processing unemployment claims, it has cut more than a 1,000 of those positions since then.

The agency also recently upgraded its 30-year-old computer system with a new software program designed by Deloitte Consulting. The contract cost the state $62.4 million and aims to process new jobless claims more efficiently.

But the software had one key flaw: Some of the old records didn't transfer over to the new system correctly, and need to be processed by hand instead.

"This is not a system error or the result of a problem with the software developed by Deloitte," the company said in an emailed statement.

The company also said the problems represent a "small percentage of claimant accounts -- which is not unusual for new systems this large and complex."

Coincidentally, Massachusetts' unemployment agency also recently switched to Deloitte software in a contract valued at $46 million, and also encountered data conversion issues.

First Published: September 25, 2013: 4:13 PM ET

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JPMorgan in talks to settle mortgage probes for $11 billion

JPMorgan has faced a cascade of legal problems in the last few months.

NEW YORK (CNNMoney)

The proposed deal would include $7 billion in penalties and $4 billion in consumer relief of some kind, according to the source, who was not authorized to speak publicly on the matter. Those numbers aren't final, however, and it's unclear if or when the two sides may come to an agreement.

The deal would come under the auspices of a joint federal-and-state task force announced by the Obama Administration last year to investigate the packaging and sale of mortgage-backed securities, which became a key cause of the financial crisis when they failed in droves as the housing market cratered.

"The talks are ongoing, we don't anticipate that there will be an announcement today," Lauren Horwood, a spokeswoman for the U.S. Attorney in Sacramento, said in an email Wednesday.

Related: Three ex-ICAP employees indicted in Libor scandal

JPMorgan -- America's largest bank by assets -- is fresh off of a settlement last week in which it agreed to pay $920 million in connection with the "London Whale" trading debacle. Also last week, regulators ordered the firm to refund $309 million to customers and pay $80 million in fines over alleged unfair credit-card billing practices.

Spokespeople for the Justice Department and JPMorgan (JPM, Fortune 500) declined to comment. The Securities and Exchange Commission did not immediately respond to a request for comment.

First Published: September 25, 2013: 6:44 PM ET

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Hertz now renting Tesla Model S cars in California

NEW YORK (CNNMoney)

Hertz (HTZ, Fortune 500) announced Wednesday that it was adding Tesla's (TSLA) signature model to its rental fleet as part of its "Dream Cars" line, which also offers high-end rentals from companies like Ferrari and Aston Martin.

Unfortunately for most of the U.S., the Model S will only be available for rental in San Francisco and Los Angeles.

"[S]hould customer demand warrant it, we will consider expanding availability to other locations," Hertz spokeswoman Paula Rivera said in an email.

Rental rates start around $500 per day, plus $0.49 a mile after the 75-mile mark, Rivera said.

Related: Tesla superchargers take over America

The plug-in Model S has garnered rave reviews in recent months. It aced its first crash test last month, and Consumer Reports called the Model S the best car it had ever tested.

A Tesla spokeswoman said the automaker had "seen interest from rental car companies and fleet buyers who want to provide their customers access to a high-performance sedan, which also happens to be electric."

First Published: September 25, 2013: 4:15 PM ET

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Treasury Secretary: Markets too calm about debt ceiling

Treasury Secretary Jack Lew says Wall Street should be taking the looming debt limit more seriously.

NEW YORK (CNNMoney)

While stocks have slipped for four consecutive days as investors turn their attention to Washington and the looming debt limit, the S&P 500 and Dow are just 2% from the all-time highs reached last week.

In addition to the muted market action, a key metric for measuring market fear and volatility, the VIX (VIX), is indicating calm markets. While CNNMoney's Fear & Greed Index has ticked just slightly into "Fear" mode, from neutral earlier in the week.

"I think if you look at the calm out there, it's a bit greater than it should be," Lew said at the Bloomberg Markets 50 Summit in New York Tuesday. He said investors may be traumatized from the last debt ceiling debacle. "The sense is that 2011 was a terrible experience and nobody would do that again."

Related: The never-ending charade of debt ceiling fights

In August 2011, the debt ceiling showdown and Washington's failure to develop a "credible" plan to tackle the nation's long-term debt problems led Standard & Poor's to downgrade the United States' credit rating. U.S. stocks tumbled that month, with the S&P 500 sliding nearly 6%.

Lew agreed that lawmakers shouldn't allow the debt ceiling brawl to get so ugly again, but warned that the clock is ticking and big decisions have yet to be made.

"People have to take seriously the fact that Congress has a lot of work to do in a short period of time," said Lew.

Lew has warned Congress that the Treasury will be at the end of its ability to use "extraordinary measures" to keep the country from defaulting on its payments by mid-October. After that, he said the Treasury will have less than $50 billion in cash on hand, and that won't last long.

"No Treasury secretary and no president have ever gotten to a point where we ran out of our ability to borrow," said Lew. "It is uncharted territory in the sense that people have thought about what they would do, but never crossed the line. And that's not a line we should cross."

First Published: September 24, 2013: 7:23 PM ET

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China stocks rebound as economy improves

HONG KONG (CNNMoney)

Whether the rally can continue through the end of the year may depend on big policy decisions expected in November.

For much of the first half of the year, China's main indexes took a beating as investor appetite soured over concerns about the prospects for the world's second-biggest economy.

Only the tiny Shenzhen market managed to buck the trend, thanks to the predominance of small technology firms with high growth potential.

But Hong Kong's Hang Seng and the Shanghai Composite bottomed out in late June and have surged by about 18% and 12% respectively since then. And the Shenzhen Composite has continued its push higher, gaining 20% over the same period.

"Market sentiment has been recovering slowly from its trough in late-June," said Barclays economist Jian Chang. "Economic data has been stronger than expected."

Related story: China's underdog market surges

The latest sign of a recovery came Monday, when HSBC's "flash" measure of manufacturing purchasing managers' sentiment hit a six-month high.

That followed a slew of positive economic data, including strong industrial output, robust trade and moderate inflation, raising confidence that China is back on track to meet its 7.5% growth target for the year.

Chinese stocks also got a boost when the U.S. Federal Reserve unexpectedly announced last week that it would continue its $85-billion a month bond-buying program, putting off the moment when it will start pumping less money into markets.

Despite the third quarter rally, Chinese stocks are still lagging other major world markets so far this year. The Hang Seng is up about 2%, while the Shanghai Composite is still in negative territory. By comparison, the S&P 500 is up 19%, and Germany's DAX almost 14%.

And some experts are reluctant to predict further gains in China this year, given uncertainty about future economic policy.

Related story: China's $8 billion plan to rival Hollywood

Right now, China has "a window to perform" said Joseph Tang, an investment director at Invesco.

Whether or not growth is sustained -- and stocks continue to rally -- may well depend on the kind of reforms adopted at a meeting of China's Communist Party leadership in November.

Nomura economist Zhiwei Zhang said new monetary policies could slow China's building economic momentum as the government moves "to shift its focus away from the speed of growth, towards efforts to rebalance the economy and improve the quality of growth."

China's recovery is unlikely to be sustained going into next year, he said.

First Published: September 24, 2013: 10:33 PM ET

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China lifts Facebook ban ... a bit - report

China could soon allow access to Facebook in a new free trade zone.

NEW YORK (CNNMoney)

According to the South China Morning Post, the Chinese government has decided to lift a ban on foreign websites deemed politically sensitive, albeit only within the newly developed Shanghai Free Trade Zone.

That means those within the 17-square-mile area will be able to access Facebook (FB), Twitter, The New York Times (NYT) and more. The Free Trade Zone launches on Sunday and is intended to serve as a testing ground for financial and service sector reforms, including increased access to the tightly-controlled yuan. Should Beijing deem the experiment a success over the long run, some of the policies could be implemented in other parts of China.

Currently, Facebook and Twitter are among websites that remain blocked by the government's censorship system, casually referred to as the Great Firewall of China. Attempts to access Facebook result in an error message: "Network Timeout."

Related: It's lights out for BlackBerry

This latest development lets Facebook and Twitter get their feet in the door of the most populous and fastest-growing Internet community in the world. Both companies have acknowledged a desire to tap into the world's largest social media market, with 513 million Internet users -- more than double the size in the United States.

News of the partially lifted ban caught several major players by surprise. A Facebook spokeswoman said the company was only aware of the Post news report.

A spokeswoman at the New York Times had only this to say: "We are hearing the same thing you are." Twitter did not respond to requests for comment.

Lifting the ban would mark the first time in years that people in the mainland will have access to Facebook and Twitter without disruption. Facebook was blocked after the minority Uighur group used the social media site to organize against the government in 2009. The Chinese government was keen to keep strict control over social media after Twitter was widely used to coordinate protests during the 2011 Arab Spring.

Related: BlackBerry's patents could spark a bidding war

Still, some Chinese citizens have managed to get around the censors, according to data compiled by Global Web Index, a research firm. Between 2009 and 2012, the number of those secretly using Facebook in China grew from 8 million to 63 million. During that span, the number of Chinese Twitter users grew from 12 million to 35 million.

Those numbers are still a drop in the bucket compared to those using government-approved social media sites, including Renren, (RENN) Sina (SINA) Weibo and WeChat, whose users number in the hundreds of millions.

Global Web Index estimates 15% of Chinese citizens use Facebook, while 56% or more use Tencent Weibo, Sina Weibo or Qzone.

Facebook is well aware of the competition and government challenges, even noting that in its initial public offering registration document.

First Published: September 24, 2013: 11:09 PM ET

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Chrysler files for IPO

NEW YORK (CNNMoney)

The shares being sold in the proposed offering come from the stake of a trust established to cover medical benefits for retired workers that now owns 41.5% of the company.

The trust was set up in 2007 as a way of reducing Chrysler's financial burden of paying these health care costs. It was never supposed to have a large share of its assets in the form of a privately held stock, but with Chrysler running out of cash the following year and falling into bankruptcy in 2009, the only asset it could offer was its own stock.

Similar trusts were set up at General Motors (GM, Fortune 500) and Ford (F, Fortune 500) as the U.S. auto industry reeled during the economic downturn. GM announced plans Monday to to repurchase 120 million preferred shares from its trust.

Related: The demise of the minivan

The price range and number of shares in the Chrysler offering haven't yet been determined. The company's registration document with the Securities and Exchange Commission indicated that the trust would continue to hold a stake after its sale of shares to the public.

The offering is being led by JPMorgan (JPM, Fortune 500).

Italian automaker Fiat rescued Chrysler from bankruptcy in 2009 and now owns 58.5% of the the company. Previously, the company was purchased in 1998 by Germany's Daimler-Benz, which offloaded an 80% stake to investment firm Cerberus Capital Management in 2007.

Fiat CEO Sergio Marchionne is on record as saying he wants Fiat to own all of Chrysler and to merge the two companies. The preparations for an IPO suggest he has been unable to reach a deal with the trust to buy its shares directly, rather than sell them to the public.

Still, the IPO process could help the trust and Fiat agree on a fair market value for the company -- Kelly Blue Book senior analyst Alec Gutierrez said the filing "may only serve as a negotiating tactic."

Related - Car sales surge back to pre-recession levels

Marchionne has been the CEO of both carmakers since Chrysler emerged from bankruptcy, with the two companies almost operating as one. Chrysler, which also produces Jeep and Dodge vehicles, has even started selling Fiat cars in the United States for the first time in decades.

Fiat bought the 8% of the shares in the company that were initially owned by the U.S. Treasury as a result of Chrysler's government bailout. It gained additional shares through the transfer of Fiat technology to Chrysler.

Chrysler has mounted a strong comeback in recent years. The company reported a double-digit sales increase in August versus 2012.

"Chrysler has come a long way since bankruptcy and the IPO is further proof as their sales continue to soar to new heights," Gutierrez said.

First Published: September 23, 2013: 6:03 PM ET

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Microsoft Surface 2: Hardly an afterthought

NEW YORK (CNNMoney)

Instead, Microsoft (MSFT, Fortune 500) is pushing the Surface 2 with as much vigor as ever.

Last year's Surface existed in a no man's land -- slightly too big to truly appeal as a tablet, slightly too underpowered to function as a laptop replacement. This year's model offers key improvements in both areas.

While the Surface RT was heavier and thicker than many 10-inch tablets, the Surface 2 is thinner than the current iPad, and nearly as light. The original Surface's processor lacked the muscle to run Windows, the processor inside the Surface 2 promises a three- to fourt-fold boost in performance. The slightly grainy display of last year's tablet is gone, in favor of a 1080p high-definition picture.

Even the name got an update: the confusing "RT" got the boot.

Still present is the kickstand, which now lets the screen fold back to a 44 degree angle, which Microsoft says improves the experience of using the Surface on your lap.

Related story: Windows 8.1's little changes are a huge improvement

Also remaining are the Touch Cover and Type Cover keyboard cases, both of which have been slimmed down, backlit and made more responsive -- especially important for the Touch Cover, which lacks any mechanical parts. There's even a Power Cover now, which packs an extra battery for those constantly away from a power source.

The Surface Pro 2, which is more of PC that masquerades as a tablet, received a few improvements over its predecessor as well. The new Surface Pro includes a display with improved color accuracy, a 50% faster Intel (INTC, Fortune 500) processor powerful enough to edit professional video, and improved battery life. But its update was far less dramatic. This event was really about the other Surface -- and fixing some obvious mistakes.

Spending a few minutes with the new Surface, the benefits of those changes were immediately apparent. The Surface 2 is much more pleasant to hold with one hand. Using the Touch Cover Typing felt much more reliable, and even intuitive. The trackpad, while still feeling a bit cramped, seemed less jumpy, and more responsive than before. Meanwhile, the thinner Type Cover seems to be a much more portable than it was last year, while managing to retain its tactile benefits.

But hardware alone -- vastly improved as it may be -- is not going to solve all the Surface's problems. Microsoft's emphasis on the Surface 2 over its more powerful Pro sibling means that Windows RT is here to stay. For newbies, Windows RT is the mobile-optimized version of Windows which doesn't run legacy applications like iTunes.

Microsoft failed horribly last year at communicating the differences between its two versions of Windows, leading many hardware partners to abandon Windows RT entirely. And while it has done well to grow its app store over the last year, Windows RT still lacks the full range of high-profile apps found on the iPad and Android tablets. Innovative apps like Paper and big time games like Infinity Blade are nary to be found on the Surface 2.

This year's challenge for Microsoft will be to convince us all of Windows RT's (and, by proxy the Surface 2's) virtues.

The good news is that Windows 8.1 RT, Microsoft's much-needed Windows RT update, is coming soon. It offers a lot of improvements for any device you use it on, but it will benefit RT devices like the Surface 2 the most. The improved multitasking in particular makes the Surface 2 much easier to use.

But if Microsoft wants the Surface to be taken seriously, the company needs to continue pushing developers into developing apps for Windows RT..

On paper, Microsoft has done enough with the Surface 2 to warrant our attention. Whether or not that translates to a device we want to use on a daily basis remains to be seen.

First Published: September 23, 2013: 4:54 PM ET

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Wonder Bread returns to shelves

The wait is over.

NEW YORK (CNNMoney)

The iconic bread brand returned to store shelves Monday, said Flowers Foods (FLO), the company that snatched it up earlier this year along with most of the other breads from the now-defunct Hostess for $360 million.

Flowers said Wonder and other former Hostess brands like Merita and Home Pride would be available throughout its delivery markets, which encompass roughly 77% of the U.S. population. The bread is being packaged with a retro logo from Wonder's early days.

"We are using the same recipes and paying close attention to quality and freshness," Keith Aldredge, Flowers' vice president of marketing, said in a statement.

Flowers also produces Tastykake snacks and Nature's Own bread.

The news comes months after a bankruptcy judge approved the sale of Wonder, Twinkies and other assets from Hostess Brands.

Former Hostess snack brands like Twinkies, Ho Hos and Ding Dongs were sold for $410 million to a joint venture of private equity firms Apollo Global Management (APO) and Metropoulos & Co. Twinkies resumed sales in July.

Hostess suspended production in November of last year, moving to liquidate after years of financial distress and a failure to reach a new contract with its bakers' union.

The demise of Hostess led fans of the company's products to quickly scoop them up at grocery stores, fearing that they would never be able to purchase them again.

But it was always widely expected by analysts that Hostess would be able to sell its most popular brands to other food makers through the liquidation process.

First Published: September 23, 2013: 5:06 PM ET

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Stocks: Government shutdown, Fed timing looms large

Click chart for more markets data.

NEW YORK (CNNMoney)

Investors have a list of unanswered questions weighing on them. Chief among them: When will the Federal Reserve finally begin cutting back on its monthly $85 billion bond-buying program? Will the U.S. government shut down on Oct. 1 or default on its debt?

These unknowns spooked investors towards the end of last week, causing the Dow Jones Industrial Average to drop 180 points on Friday. The S&P 500 and Nasdaq also closed down 0.4% and 0.7% respectively. However, despite Friday's sell-off, stocks ended the week up between 0.5% and 1.3%.

Related: Fear & Greed Index

Answers on the economy: Investors will get a feel for the strength of the U.S. economic recovery via several key reports due out throughout the week.

The third estimate of second-quarter gross domestic product, the broadest measure of economic activity, is due out on Thursday. Economists surveyed by Briefing.com are expecting that GDP rose at a 2.5% annual rate from April through June, unchanged from the second estimate released last month.

There will also be a smattering of reports on the housing market, including Case-Shiller's 20-city index, FHFA housing price index and new home sales.

Related: Are we still heading toward 5% mortgages?

How consumers are feeling about the economy will also be in play, with reports on consumer confidence, personal income and spending and Michigan sentiment on tap.

Blackberry's woes get real: Ailing smartphone maker Blackberry will once again be in the spotlight this week when it releases second-quarter earnings on Friday. The company warned last week that it will report a loss of nearly $1 billion for the second quarter and slash 40% of its global workforce.

First Published: September 22, 2013: 11:00 AM ET

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Billionaire George Soros weds for 3rd time

George Soros, 83, married Tomiko Bolton, 42, on Saturday.

NEW YORK (CNNMoney)

The 83-year-old, who has been married twice before, tied the knot once more on Saturday to health care and education consultant Tamiko Bolton, 42.

The three-day celebration culminated with a small ceremony at Soros' estate in Bedford, NY. A reception for 500 people followed.

Among those toasting the couple were House Democratic leader Nancy Pelosi and World Bank president Jim Yong Kim. Former U.N. Secretary General Kofi Annan gave a speech to the crowd.

News of the couple's engagement broke in August 2012.

The groom is considered one of the richest men in the world. He started a hedge fund in 1962 and is best known for his big bet against the British pound that is said to have netted him an estimated $1 billion in 1992. Earlier this year, Forbes set his net worth at about $20 billion.

Soros has been divorced twice. He also faces a $50 million lawsuit from an ex-girlfriend for backing down on promises to buy her a $1.9 million apartment.

When asked if he had a prenuptial agreement with his newest wife, a representative said Soros will leave the bulk of his fortune to charity, but that Bolton will be generously taken care of.

First Published: September 22, 2013: 2:07 PM ET

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Germans back Merkel on Europe and economy

Most Germans seem to approve Angela Merkel's handling of the euro zone crisis, even though she's not popular in other European countries.

LONDON (CNNMoney)

Merkel's bloc -- the Christian Democratic Union (CDU) and the Christian Social Union (CSU) -- garnered 41.7% of the vote, according to semi-official results released by the Federal Election Office. Merkel's party was within two seats of obtaining a super majority, which will mean it doesn't need to build a coalition with another party to govern.

The results appeared to validate Merkel's policies and leadership style. Merkel is only the third post-war chancellor to win three successive elections.

"Give or take a few details, Germany's euro policies are based on strong public support and a virtual consensus of all mainstream parties. The strong support for Merkel herself and her [party] today underscores that point," said Holger Schmieding, chief economist at Berenberg bank.

Her previous coalition partner, the liberal Free Democratic Party (FDP), was by far the biggest loser Sunday and appeared to have fallen short of the 5% threshold needed to enter parliament. A new anti-euro party AfD may have won enough support to win its first seats but didn't make the big breakthrough it wanted.

Full coverage of German elections

Merkel is extremely unpopular among some Europeans for her insistence on austerity in return for aid to their countries. But most Germans seem to approve her handling of the crisis.

Even if she's forced into a grand coalition, any policy shift is likely to be very subtle. While the Social Democrats have taken a softer tone on austerity, they have backed Merkel on all big European decisions during the crisis.

With the recession over and markets calmer, the pace of EU policy making has eased. But a new Merkel government will still be the central player in tackling the big issues of Europe's slow growth, record unemployment, aging population and rising debt.

Greece needs more help and Portugal might need a second bailout. What's more, progress on repairing the European banking system, which is critical to unfreezing credit markets and restoring long-term economic health, has slowed.

Related: Greece joining euro was a mistake: Merkel

The demise of the FDP is likely to be more significant for the German economy, a manufacturing and export powerhouse which accounts for nearly 30% of euro zone output.

As the price for Social Democrat support, Merkel may be forced to concede higher income taxes on the wealthy and extend a minimum wage to more areas of industry.

Germany is the second most productive of the G-7 economies after the United States, based on GDP per hours worked. Its unemployment rate is the second lowest in Europe, and has managed to eke out economic growth of 0.7% in the second quarter, avoiding the recession that gripped much of the euro zone for 18 months.

German stocks are near record highs, and businesses haven't been as upbeat about their prospects for more than three years. But some economists have warned of creeping complacency.

One of the talking points in the election campaign was the millions of working Germans barely able to cover more than their basic needs.

A drift to the center-left may mean a slightly less competitive Germany in the long term but Merkel's clear victory is likely to reassure investors despite the prospect of weeks of talks on building a coalition government.

First Published: September 22, 2013: 2:52 PM ET

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Target to reduce 2013 holiday hiring

A Target store in Daly City, Calif. advertises for employment.

NEW YORK (CNNMoney)

The discount store chain said Friday that it plans to hire about 70,000 temporary workers this year, down from 88,000 a year ago.

Target said it planned to offer more holiday hours to full-time staff members -- "as much as five to 10 percent more for the busiest periods around Black Friday and the week before Christmas."

"This approach takes into account recent trends that are becoming more and more pronounced—the busy periods are busier than ever, while the early part of December is quieter," Target (TGT, Fortune 500) said. "And with year-round team members looking for more hours, we want to accommodate their requests first."

Related: Hot toys for the 2013 holidays

Off the 88,000 seasonal workers hired last year, Target said 34,000 were offered year-round roles.

Industry tracker ShopperTrak said this week that it expects retail sales to rise 2.4% versus last year in November and December.

"Although the economy continues to recover slowly, consumers remain cautious about spending and are not ready to splurge," ShopperTrak Founder Bill Martin said .

Retailers have to contend with a shorter peak-shopping season this year. Black Friday doesn't fall until Nov. 29, compared with Nov. 23 in 2012.

First Published: September 20, 2013: 4:24 PM ET

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BlackBerry slashes staff, warns of $1 billion loss

Click the chart to track shares of BlackBerry.

NEW YORK (CNNMoney)

Shares of BlackBerry (BBRY) were halted at about 3:30 p.m. ET and plunged 20% when trading resumed. For the day they closed down 17%. BlackBerry's stock is down 26.5% this year.

The news of 4,500 job cuts came late Friday afternoon, confirming layoff rumors that have been swirling about problems at the smartphone maker. It attributed the loss to a charge it will take to restructure its business as well as an "increasingly competitive business environment."

It also said it will offer just four smartphones instead of six.

The anticipated operating loss is about three times larger than the consensus forecast of analysts. The company is due to report financial results on September 27.

"We expected bad results but the device sales are pretty bad," said James Moorman, analyst with S&P Capital IQ. "I like their strategy of cutting back, but it's kind of late. This should have been done about a year ago."

Neeraj Monga, analyst with Veritas Investment Research, says that BlackBerry made a stunning admission about the lack of demand for its new BlackBerry 10 upon which it has placed so much hope. Normally companies book revenue when they ship products to retailers but Friday's statement said it will instead wait to book revenue from those phones until they're sold to customers.

"It's a bigger flop than anybody thought it could be," he said. "They expect 80% (of shipped phones) to come back."

The company reported last month that it is exploring ways to keep itself afloat -- including a possible sale of the company.

Related: BlackBerry explores a sale of the company

Moorman said the constant drumbeat of bad news is scaring away potential customers, and added that taking the company private would be the best course of action.

"Now with the stock taking a hit, that's more attractive," he said. "Going private takes you out of the spotlight. When you're on CNBC every day talking about a death spiral, that's not good. It becomes a self-fulfilling prophesy if you stay public."

There have been rumors that Toronto-based investment firm Fairfax Financial Holdings (FRFHF) might be interested in taking the company private. It's already Blackberry's largest shareholder, with nearly a 10% stake.

But Monga said he thinks that time is running out for BlackBerry.

"I do not believe this business can be turned around. I don't think an acquisition is in the offering. This suggests the end is coming pretty soon," he said.

Experts predict that BlackBerry would have a tough time finding a buyer for the entire company, since no suitor is likely to be interested in its hardware business.

But BlackBerry does possess some lucrative patents that could be attractive to a potential buyer or partner. That's a massive advantage in the competitive and highly litigious world of smartphones, and it could be attractive to a big rival like Microsoft (MSFT, Fortune 500), Apple (AAPL, Fortune 500) or Samsung.

At least BlackBerry has some breathing room: The company has $2.6 billion in cash. But that's down about $500 million from the previous quarter, a cash burn rate that Moorman described as "shocking."

If BlackBerry's smartphones themselves are a deal-killer, peeling off the company's software business could help gain interest from a number of buyers. BlackBerry's brand has lost consumer cachet, but it still holds a strong reputation for corporate security.

- Julianne Pepitone contributed to this report.

First Published: September 20, 2013: 3:39 PM ET

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Father and son charged in $6.5 million deathbed bond scam

The SEC says the two men "exploited the tragic circumstances surrounding a terminally ill diagnosis and turned the misfortune of others into a profit-making enterprise for themselves."

NEW YORK (CNNMoney)

The dying people were accessories to a scheme that defrauded banks and bond issuers by taking advantage of features in some corporate bonds known as "survivor's options," the Securities and Exchange Commission said. A survivor's option requires bond issuers to repay the full principal amount before maturity if an owner of the bonds dies.

The accused are 62-year-old Benjamin S. Staples and his son, 28-year-old Benjamin O. Staples, both of Lexington, S.C.

Related: Beanie Babies creator pinched for tax evasion

The alleged scheme, the SEC says, worked like this: First, the Staples would find people close to death who were concerned about being able to afford their funerals. The pair allegedly offered to pay for the funerals if the terminally ill agreed to open joint brokerage accounts with them.

In setting up the accounts, the Staples are accused of requiring the sick to sign agreements relinquishing any ownership interest. Then, they allegedly purchased discounted corporate bonds through the accounts.

Upon the deaths of the individuals they recruited, the Staples wrote to brokerage firms asking to redeem the discounted bonds at full value pursuant to the survivor's option, the SEC said.

The profits the pair earned came from the difference "between the discounted price of the bonds they purchased and the full principal amount they obtained when redeeming the bonds early," the SEC said.

Related: Still no charges for Wall Street execs five years after crash

All told, the Stapes are alleged to have recruited at least 44 dying people and purchased $26.5 million in bonds, earning at least $6.5 million in profits.

"The Stapleses deceived brokerage firms and bond issuers by casting themselves as survivors of a joint ownership situation when the deceased had no legal ties to the bonds at all," Kenneth Israel, director of the SEC's Salt Lake regional office, said in a statement.

Attorneys for the two men did not immediately respond to requests for comment.

First Published: September 20, 2013: 6:37 PM ET

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BlackBerry slashes staff, warns of $1 billion loss

Click the chart to track shares of BlackBerry.

NEW YORK (CNNMoney)

Shares of BlackBerry (BBRY) were halted at about 3:30 p.m. ET and plunged 20% when trading resumed. For the day they closed down 17%. BlackBerry's stock is down 26.5% this year.

The news of 4,500 job cuts came late Friday afternoon, confirming layoff rumors that have been swirling about problems at the smartphone maker. It attributed the loss to a charge it will take to restructure its business as well as an "increasingly competitive business environment."

It also said it will offer just four smartphones instead of six.

The anticipated operating loss is about three times larger than the consensus forecast of analysts. The company is due to report financial results on September 27.

"We expected bad results but the device sales are pretty bad," said James Moorman, analyst with S&P Capital IQ. "I like their strategy of cutting back, but it's kind of late. This should have been done about a year ago."

Neeraj Monga, analyst with Veritas Investment Research, says that BlackBerry made a stunning admission about the lack of demand for its new BlackBerry 10 upon which it has placed so much hope. Normally companies book revenue when they ship products to retailers but Friday's statement said it will instead wait to book revenue from those phones until they're sold to customers.

"It's a bigger flop than anybody thought it could be," he said. "They expect 80% (of shipped phones) to come back."

The company reported last month that it is exploring ways to keep itself afloat -- including a possible sale of the company.

Related: BlackBerry explores a sale of the company

Moorman said the constant drumbeat of bad news is scaring away potential customers, and added that taking the company private would be the best course of action.

"Now with the stock taking a hit, that's more attractive," he said. "Going private takes you out of the spotlight. When you're on CNBC every day talking about a death spiral, that's not good. It becomes a self-fulfilling prophesy if you stay public."

There have been rumors that Toronto-based investment firm Fairfax Financial Holdings (FRFHF) might be interested in taking the company private. It's already Blackberry's largest shareholder, with nearly a 10% stake.

But Monga said he thinks that time is running out for BlackBerry.

"I do not believe this business can be turned around. I don't think an acquisition is in the offering. This suggests the end is coming pretty soon," he said.

Experts predict that BlackBerry would have a tough time finding a buyer for the entire company, since no suitor is likely to be interested in its hardware business.

But BlackBerry does possess some lucrative patents that could be attractive to a potential buyer or partner. That's a massive advantage in the competitive and highly litigious world of smartphones, and it could be attractive to a big rival like Microsoft (MSFT, Fortune 500), Apple (AAPL, Fortune 500) or Samsung.

At least BlackBerry has some breathing room: The company has $2.6 billion in cash. But that's down about $500 million from the previous quarter, a cash burn rate that Moorman described as "shocking."

If BlackBerry's smartphones themselves are a deal-killer, peeling off the company's software business could help gain interest from a number of buyers. BlackBerry's brand has lost consumer cachet, but it still holds a strong reputation for corporate security.

- Julianne Pepitone contributed to this report.

First Published: September 20, 2013: 3:39 PM ET

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Target to reduce 2013 holiday hiring

A Target store in Daly City, Calif. advertises for employment.

NEW YORK (CNNMoney)

The discount store chain said Friday that it plans to hire about 70,000 temporary workers this year, down from 88,000 a year ago.

Target said it planned to offer more holiday hours to full-time staff members -- "as much as five to 10 percent more for the busiest periods around Black Friday and the week before Christmas."

"This approach takes into account recent trends that are becoming more and more pronounced—the busy periods are busier than ever, while the early part of December is quieter," Target (TGT, Fortune 500) said. "And with year-round team members looking for more hours, we want to accommodate their requests first."

Related: Hot toys for the 2013 holidays

Off the 88,000 seasonal workers hired last year, Target said 34,000 were offered year-round roles.

Industry tracker ShopperTrak said this week that it expects retail sales to rise 2.4% versus last year in November and December.

"Although the economy continues to recover slowly, consumers remain cautious about spending and are not ready to splurge," ShopperTrak Founder Bill Martin said .

Retailers have to contend with a shorter peak-shopping season this year. Black Friday doesn't fall until Nov. 29, compared with Nov. 23 in 2012.

First Published: September 20, 2013: 4:24 PM ET

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