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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