Equifax to pay up to $700M in data breach settlement - WKYT

WASHINGTON (AP) — Equifax will pay up to $700 million to settle with the Federal Trade Commission and others over a 2017 data breach that exposed Social Security numbers and other private information of nearly 150 million people.

The proposed settlement with the Consumer Financial Protection Bureau, if approved by the federal district court Northern District of Georgia, will provide up to $425 million in monetary relief to consumers, a $100 million civil money penalty, and other relief. The bureau coordinated its investigation with the Federal Trade Commission and attorneys general from across the U.S.

The announcement Monday confirms a report by The Wall Street Journal that the credit reporting agency had reached a deal with the U.S.

Copyright 2019 Associated Press. All rights reserved.

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2019-07-22 11:37:18Z
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Equifax to pay up to $700M in breach settlement - Fox Business

Equifax will pay potentially up to $700 million to settle state and federal investigations related to a data breach two years ago that exposed personal information belonging to more than 145 million people.

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Under the agreement announced by the Federal Trade Commission on Monday, the credit firm will pay $300 million to provide monitoring services for those affected by the hacking. That amount could increase another $125 million if the initial settlement is not enough to cover consumer losses.

Equifax will also pay $175 million to 48 states, the District of Columbia and Puerto Rico to settle lawsuits and another $100 million in civil penalties to the Consumer Financial Protection Bureau.

"This settlement requires that the company take steps to improve its data security going forward, and will ensure that consumers harmed by this breach can receive help protecting themselves from identity theft and fraud," FTC Chairman Joe Simons said in a statement.

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At the beginning of September almost two years ago, Equifax officially alerted the public about the mass cybersecurity intrusion, almost two months after it discovered it.

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The breach -- one of the most severe in U.S. history -- included sensitive information, such as Social Security and driver’s license numbers and prompted swift condemnation from bipartisan lawmakers, agencies and consumers.

The thieves were able to access a company portal after Equifax failed to patch a security flaw that it knew about.

Following the breach, the Atlanta-based company’s stock tumbled and its CEO, Richard Smith, was ousted.

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Last year, Congress passed legislation barring credit-reporting agencies from charging fees to freeze and unfreeze credit reports. Some lawmakers, including Sen. Elizabeth Warren, a 2020 presidential hopeful, have called for more robust FTC enforcement.

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2019-07-22 11:07:44Z
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Equifax to pay up to $700M in massive data breach settlement - WHEC

The data breach ultimately affected more than 56% of American adults. Personal information of 8,542,568 New Yorkers, alone, was illegally accessed.  

Breached information included Social Security numbers, names, dates of birth, addresses, credit card numbers, and driver’s license numbers. 

“Equifax put profits over privacy and greed over people, and must be held accountable to the millions of people they put at risk,” New York Attorney General Letitia James said. “This company’s ineptitude, negligence, and lax security standards endangered the identities of half the U.S. population."

As part of the settlement, Equifax will offer those who had their data exposed with free credit-monitoring services for up to 10 years. 

For information, consumers can call 1-833-759-2982 or visit https://www.ftc.gov/equifax-data-breach

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2019-07-22 10:28:56Z
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China's answer to the Nasdaq just had a crazy first day. Stocks gained 140% - CNN

The new board of the Shanghai stock exchange, known as the Star Market, is part of China's bid for tech superpower status. The initiative was unveiled less than a year ago by President Xi Jinping.

Beijing hopes Star will help China's high-tech companies tap into vast wealth held by local investors, and entice global leaders such as Alibaba (BABA) and Tencent (TCEHY) to return from stock markets in New York and Hong Kong.

The 25 stocks listed on Star had gained 140% on average by the time the market closed. Shares in Anji Microelectronics Technology, which makes materials for semiconductors, rocketed as much as 520% before trimming those gains to 400%.

The wall of money pouring into the market created several new billionaires, including the founders of Suzhou HYC Technology and Zhejiang Hangke Technology.

Analysts said the gains were being driven by China's desire for a strong market debut and unrealistic expectations among investors, fueled by state propaganda. They warned of a hangover to come.

"This [surge] is crazy," said Ronald Wan, chief executive of Partners Capital International in Hong Kong. "But it's already overdone. I don't think such gains can last long. It's way too speculative."

Star-listed companies were worth 120 times earnings on average by the end of the first day, according to Chinese market data provider Wind. Stocks on the Nasdaq and Shenzhen's tech market typically are worth 24 times earnings, according to Refinitiv data.

China has been encouraging its companies to become less dependent on foreign money and technology, a campaign that has intensified during the trade war with the United States and since the Trump administration blacklisted Huawei, a leading global smartphone maker and 5G network supplier.

Previous attempts by China to create a rival to Nasdaq in 2009 and 2013 failed because of a lack of quality listings and limited turnover in shares. Shanghai's Star Market might be different.

It's the first time a Chinese president has announced the establishment of a stock exchange, highlighting the extent to which Beijing hopes that the board will help China become the dominant player in the technologies of the future.

The country's top securities regulator says the new Shanghai market will welcome innovative companies in six emerging industries of "strategic significance." They include next-generation information technology, smart manufacturing, aerospace, new materials, renewable energy and biotech.

The sectors all align with Beijing's Made in China 2025 initiative and the latest five-year plan, which aim to transform the country into a manufacturing superpower that dominates high-tech industries.

Regulators have introduced some significant changes for Star. In a first for China, the market allows companies that are losing money to list. Piloting a US-style registration IPO system, it has also streamlined the application process and given issuers and investors greater control over the pricing and timing of initial public offerings.

Of the first batch of 25 companies that began trading Monday, 24 were listing for the first time. In total, the 25 companies raised more than 37 billion yuan ($5.4 billion).

"To break the foreign monopoly and develop [our] integrated circuits testing industry, we need continued investments in research and development. Tapping the capital market will give us the biggest boost," Suzhou HYC Technology chairman Chen Wenyuan told the state-run Shanghai Securities Journal.

Suzhou HYC Technology manufactures testing equipment for integrated circuits and touch and panel displays. It counts Apple (AAPL) and Samsung as its clients.

Star's initial lineup also includes chipmakers, AI companies, biotech firms, electric-car battery makers, and suppliers for high-speed railways. There's a pipeline of more than 100 companies waiting to list, according to the Shanghai stock exchange.

The new tech board has fallen into line with the New York Stock Exchange, Nasdaq and Hong Kong by allowing listings of companies with dual-class shares or weighted voting rights.

That change is aimed squarely at attracting Chinese tech companies currently trading overseas. Both structures are popular with entrepreneurs because they allow them to retain control after going public.

"I believe that the leading Chinese tech companies will return because of better valuation, and favorable policies," said Hao Hong, managing director and head of research at BOCOM International.

Like Alibaba and Tencent, other big Chinese tech companies such as Baidu (BIDU), JD.com (JD), Xiaomi and Pinduoduo (PDD) have chosen New York or Hong Kong to go public. Alibaba is reportedly considering a second listing in Hong Kong, following its record $25 billion flotation in New York in 2014.

"Policymakers clearly don't like the fact that, despite huge domestic savings, the best Chinese companies such as Alibaba still have to go abroad to raise money," said Larry Hu, head of China economics research at Macquarie Group.

Last year, smartphone maker Xiaomi was the first company to go public in Hong Kong with weighted voting rights after regulators changed the rules to attract more tech listings.

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2019-07-22 10:08:00Z
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Asia stocks fall on likely smaller Fed rate cut, crude climbs - Investing.com

© Reuters. FILE PHOTO: Market prices are reflected in a glass window at the TSE in Tokyo

By Shinichi Saoshiro

TOKYO (Reuters) - Asia stocks fell on Monday as investors scaled back expectations of an aggressive Federal Reserve interest rate cut, while crude oil prices rose on heightened Middle East tensions following Iran's seizure of a British tanker.

MSCI's broadest index of Asia-Pacific shares outside Japan () was down 0.4%.

Japan's Nikkei () closed down 0.2% on the more tempered Fed easing views and caution ahead of the domestic earnings season which starts this week.

The Shanghai Composite Index () was down 1%, but all eyes were on the debt of China's new Nasdaq-style STAR tech board. It had a wild opening day as expected, with most firms surging and circuit breakers popping in early trade.

Hong Kong's Hang Seng () dropped 0.9%. South Korea's KOSPI () was flat.

In early European trade, the pan-region Euro Stoxx 50 futures () were up 0.06%, German DAX futures () inched up 0.02% and Britain's futures () added 0.05%.

Global equity markets had rose briefly toward the end of last week after dovish comments by New York Fed President John Williams (NYSE:) boosted expectations the central bank would lower rates by 50 basis points (bps) at its July 30-31 meeting.

But stock markets gave back those gains on Friday, with Wall Street shares falling, after the New York Fed walked back Williams' comments by saying his speech was not about potential policy action at the upcoming Fed meeting.

Expectations for a larger cut were scaled back even more after the Wall Street Journal reported the Fed was likely to cut rates by 25 bps this month, and may make further cuts in the future given global growth and trade uncertainties.

"The possibility of a 50 bps cut has almost dissipated following the WSJ report and the New York Fed's attempt to tone down earlier comments by Williams," wrote Kenji Yamamoto, economist at Daiwa Securities.

The dollar and U.S. Treasury yields rose on the greater likelihood of a shallower rate cut.

The () against a basket of six major currencies was steady at 97.174 after rising 0.4% on Friday.

The euro () was little changed at $1.1216 after shedding 0.5% on Friday. The greenback edged up 0.25% to 108.00 yen thanks to a rise in U.S yields.

The benchmark 10-year Treasury yield () stretched Friday's modest gains and climbed to 2.062%.

Still, the broad decline in equity markets limited the rise in safe-haven Treasury yields.

"A factor which could guide stocks lower this week are tweets by U.S. President Donald Trump pertaining to trade issues with China," said Junichi Ishikawa, senior forex strategist at IG Securities.

"Stocks could decline if he continues to make challenging trade comments directed at China this week."

Trump maintained pressure on Beijing last week by renewing a threat to impose tariffs on another $325 billion of Chinese goods, even as hopes grew that the two sides could soon resume face-to-face negotiations in a bid to end their year-long trade war.

OIL EXTENDS GAINS

In commodities, Brent crude futures () were up 1.55% at $63.44 per barrel following an increase of about 0.9% on Friday.

Iran's Revolutionary Guards on Friday captured a British-flagged oil tanker in the Strait of Hormuz after Britain seized an Iranian vessel earlier this month, further raising tensions along a vital international oil shipping route.

U.S. crude futures () advanced 0.77% to $56.06.

Gold slipped from a six-year high as the dollar firmed and as expectations for a deep rate cut by the Fed were dialed back.

traded at $1,426.55 an ounce after going as high as $1,452.60 on Friday, its strongest since May 2013.

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2019-07-22 06:31:00Z
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The 1 Reason You Shouldn't Save for Retirement - The Motley Fool

We're often told how important it is to save for retirement, especially since senior living costs keep climbing and Social Security isn't enough to sustain seniors in the absence of outside income. And while it's generally a smart idea to allocate money each month to an IRA or 401(k), there's one scenario where you actually shouldn't be saving for your future: when you don't have the money to handle unforeseen expenses in the near term.

You need emergency savings

You never know when a financial emergency might strike, whether in the form of a home repair, vehicle issue, or injury. And if you don't have money in the bank to pay for such unplanned expenses, you'll risk racking up loads of debt to cover them. The result? You'll waste money on interest, damage your credit, and make it difficult to borrow money the next time you need to.

IMAGE SOURCE: GETTY IMAGES.

If you're without emergency savings, building that safety net should trump all other financial objectives on your radar, including retirement. Though neglecting your nest egg could indeed cause you to lose out on investment growth, it's still more important to save money for the present than to save for the future.

Ideally, your emergency fund should contain enough money to cover anywhere from three to six months' worth of living expenses. Now if you're single and don't own a home, you can probably stick with the lower end of that range, but if you have a family and a mortgage, you're better off focusing on the higher end.

Of course, the tricky part of building emergency savings is that you don't get any help from the IRS in doing so. By contrast, when you fund a traditional IRA or 401(k), your contributions go in tax-free so that you're saving money the year you make them. But there's no tax incentive to put cash into the bank. Still, it's imperative that you do so, because if you ignore your near-term savings, you might rack up enough debt that your interest payments alone monopolize your income and force you to neglect your nest egg later on.

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Now if you don't have emergency savings but you do have some money in an IRA or 401(k), you may be wondering if you're set. After all, can't you just access that cash in a pinch, since it's yours? The problem, however, is that because of the aforementioned tax break you get for funding a traditional IRA or 401(k), the IRS doesn't take kindly to early withdrawals. As such, if you remove funds from either account prior to age 59 1/2, you'll face a 10% penalty on the distribution you take. And depending on the sum you withdraw, that penalty could be substantial.

Let's be clear: Once you have a fully loaded emergency fund, you should absolutely start contributing to a retirement plan on a regular basis. But if you don't have any near-term savings, that needs to be your priority -- even if it means putting your nest egg aside for the time being.

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2019-07-21 14:18:00Z
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Chevy redefines an American icon with the $60,000 2020 C8 Corvette Stingray - CNBC

Mark Reuss, president of General Motors Co. (GM), speaks during an unveiling event for the GM 2020 Chevrolet Corvette Stingray sports car in Tustin, California, U.S., on Thursday, July 18, 2019.

Patrick T. Fallon | Bloomberg | Getty Images

DETROIT — General Motors unveiled Chevrolet's white whale for Corvette enthusiasts on Thursday, a new mid-engine version of the famed American sports car that many have been waiting decades for the automaker to produce.

But the biggest surprise for industry officials wasn't the car's 495 horsepower or 0-60 time in under 3 seconds, it was the price. GM President Mark Reuss said the "supercar" will start at under $60,000 — in line with entry-level models of the current, seventh-generation Corvette with the engine mounted up front.

"I was hoping for a starting price of under $80,000, and maybe even under $70,000," Karl Brauer, executive publisher of Autotrader and Kelley Blue Book said in an email. "For GM to offer the new Corvette for under $60,000 is incredibly impressive given the advanced nature of the new car."

Chevrolet unveils its new 2020 C8 Corvette Stingray in red, white and blue in Tustin, California, on Thursday July 18, 2019.

Meghan Reeder | CNBC

While some high-performance models are expected to easily top $100,000 — the current track-ready 2019 Corvette ZR1 starts at $123,000 — officials say the entry-level price ensures Corvette will retain its reputation as "obtainable performance" and an "everyman's sports car." Executives are hoping the competitive price and high-performance will be enough to lure drivers away from European rivals and boost Corvette's lagging sales.  

"Mid-engine has always been a part of Corvette's destiny and it's something we've been looking at for a very, very long time," Reuss said during the unveiling in Tustin, California. "All along, it has been absolutely paramount that we keep Corvette true to its roots of attainable performance. Mid-engine has historically posed a challenge to this mission. Not so anymore."

Can it compete?

Jessica Caldwell, executive director of insights at auto research site Edmunds, described the pricing as "staying true" to the Corvette's DNA, however she cautioned that doesn't guarantee the car will be successful in attracting buyers from already-established competitors in the segment.

"Even though the Corvette may compete on paper with mid-engine European sports cars, people buy Porsches and BMWs for reasons beyond price and performance. So I don't see a lot of Boxster shoppers suddenly deciding to get a Corvette instead, " she said.

Brauer agrees: "As with past Corvettes, this one will hold its own against exotic cars costing multiple times its price. But, as has also been true with past Corvettes, comparable performance doesn't guarantee conversion of Ferrari or Porsche buyers into the Chevy camp."

Corvette enthusiasts line up to see the new 2020 Chevrolet C8 Corvette Stingray unveiled in Tustin, California, on Thursday July 18, 2019.

Meghan Reeder | CNBC

Powering the car will be Chevrolet's LT2 small-block 6.2-liter V-8 engine rated at 495 horsepower and 470 lb.-ft. of torque. That's 40 more horsepower and additional pound-feet of torque than the 2019 model.

Despite similar engine performance, there's also concern about the mid-engine design alienating traditional Corvette buyer — specifically baby Boomers and older generations that may not come back to purchase the new car.

"I think some of these vehicles from the Detroit 3, the muscles cars and such, their time is running out," said Michelle Krebs, senior analyst with Cox Automotive. "I look at Harley-Davidson as an example. The buyer base for those vehicles is aging out. "

Edmunds reports 30% of Corvette buyers were age 65 or older in 2018, up from about 28% in 2013. Nearly 60% of buyers were 55 or older through the first four months of this year, according to Edmunds.

Redefining Corvette

GM needed to do something new to make a business case for the car. Whether or not the mid-engine Corvette can redefine the supercar segment and compete against pricier competitors will be determined when it arrives in showrooms early next year.

Corvette sales in the U.S. have steadily declined every year since more than doubling with the introduction of the current-generation car in 2014. Through the first six months of this year, Corvette sales were down 5%. That puts GM on pace to sell less than 20,000 units for a second-consecutive year and marks five-straight years of declining sales.

The car's performance and ability to compete with the competition has never been the problem. The company has continued to spend capital on variants of the car that achieved new levels of performance in recent years.

"I am not clear on the business case," Krebs said. "They're ramping up production pretty significantly and I don't know how many sales will result; the jury's still out on that."

GM, which has been significantly cutting production of low-selling passenger cars, in April announced it would add a second shift and more than 400 hourly jobs at its Bowling Green, Ky., assembly plant to support production of the next-generation, mid-engine Corvette.

To assist sales of the mid-engine Corvette, GM launched an online reservation program. It's a first for the company but a practice recently used by Ford, Tesla and others to drum-up anticipation and sales.

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2019-07-21 14:02:27Z
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