Tech firms freak out as China erects barriers

New rules will make it difficult for some foreign companies to operate in China.

Six groups representing European companies and banks have appealed for official help this week, arguing that new Chinese regulations will prevent them supplying the country's financial industry with technology. They say China is breaking international trade rules.

That comes as Beijing is reported to be removing some of the world's top tech brands from its list of approved government suppliers.

China unveiled plans to regulate banking technology late last year. The rules, which are due to come into force next month, could require tech companies to share source code and other proprietary information with Beijing.

The European business lobby groups want the European Commission to help get the regulations suspended.

Related: The cost of doing business in China: Spying

They say the policies would "hurt the development and integration of Chinese banking sector in the global market."

"Combined with China's recent other actions to tighten content filters and limit Internet-based services, these new policies will create an even more unwelcoming digital trade and investment environment for foreign companies," the groups wrote in a letter to the European Commission.

A spokesperson said the European Commission is analyzing the Chinese measures and their potential impact.

"We are in regular contact with the Chinese authorities on trade matters and will certainly raise this issue," the spokesperson said.

One of the authors of the letter -- Business Europe director general Markus Beyrer -- told CNNMoney his group was "particularly concerned about the potential for these measures to be applied to other sectors."

Reuters reported Wednesday that the Chinese government has removed Cisco (CSCO, Tech30), Apple (AAPL, Tech30), Citrix Systems (CTXS) and Intel's (INTC, Tech30) security software provider McAfee from approved state procurement lists.

The number of approved foreign brands dropped by one third last year, according to the report.

The crackdown by China risks inflaming existing tensions over cyber-security and privacy with other governments.

Relations with the U.S. have been strained by revelations from Edward Snowden that the government relies on American tech firms to spy on Chinese leaders.

The U.S. has repeatedly blocked Chinese telecom company Huawei from proposed acquisitions and partnerships -- including a bid for 3Com and a supply deal with Sprint (S) -- because it accuses it of spying.

Related: Super-sneaky malware found in companies worldwide

CNNMoney (London) February 26, 2015: 10:24 AM ET

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Former JPMorgan banker Bill Winters is back

Bill Winters is taking over the CEO position at Standard Chartered.

The appointment is part of a management shake-up that will see a number of top executives and boards members leave.

Standard Chartered (SCBFF), which is based in the U.K., makes the vast majority of its money in emerging markets in Asia, Africa and the Middle East.

Shares in the bank have roughly halved since late 2010. The bank issued three profit warnings in 2014. In January it cut 4,000 jobs just months after being hit with a $300 million fine for failing to meet the terms of a money laundering settlement with the state of New York.

Investors had reportedly been calling for the current CEO, Peter Sands, to leave.

Shares in Standard Chartered jumped by as much as 3.5% in early London trading after the announcement came out.

The bank's largest shareholder, Singapore-based investment firm Temasek, was quick to applaud the "management succession" plan.

"[Winters] brings with him considerable experience as well as an excellent reputation for building good teams," Temasek said in a statement.

Once tipped as a possible successor to JP Morgan (JPM) CEO Jamie Dimon, Winters was ousted in 2009 after 25 years with the Wall Street powerhouse.

Winters, 53, will be paid a base salary of nearly £1.2 million ($1.8 million), plus plenty of additional perks and bonuses, when he joins Standard Chartered later this year.

That's a far cry from the $21.2 million he earned at JP Morgan in 2007, the year before the financial crisis exploded.

Standard Chartered is scheduled to report 2014 earnings next week.

CNNMoney (London) February 26, 2015: 7:56 AM ET

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Nothing stops Frank Underwood ... or Netflix

There is a third: It's the suffering that Netflix short sellers are feeling.

Shares of Netflix (NFLX, Tech30) are up 40% this year and are approaching an all-time high. Betting against Netflix stock has been as dangerous as getting in the way of the former House Majority Whip.

But can Netflix really keep the momentum going?

Yes, the company has posted amazing levels of subscriber and revenue growth. It could wind up being one of the big winners from the rule changes regarding net neutrality.

It's already won the Twitter PR war with this tweet.

Related: What does net neutrality mean for you?

And "House of Cards" is an addictive show that is generating more and more buzz. A brief leak of the new season earlier this month got fans even more excited.

Heck, even "Sesame Street" did a recent "House of Bricks" parody of it with a Frank Underwolf (southern drawl and all) huffing and puffing his way into the Three Little Pigs' White Brick House.

Dot-com mania all over again? Still, the stock is now trading at more than 140 times 2015 earnings estimates. That should bring back unpleasant reminders of the Internet stock bubble from 2000.

And what's this? The Nasdaq is once again approaching the 5,000 mark for the first time in 15 years.

Netflix has done a phenomenal job of transforming itself from a DVD by mail service to a streaming video giant. But the company continues to face some challenges as it expands.

Increased overseas investments and on content could hurt profits. Wall Street analysts are currently predicting that Netflix's profits will decline this year ... but, to be fair, they're also expecting earnings to soar from 2016 through 2019.

But Netflix must continue to invest aggressively to stay on top. There is a lot of competition.

Related: Woody Allen to create first TV series for Amazon

Amazon is bulking up its streaming offerings to become a more viable competitor. Media titans Disney (DIS), 21st Century Fox (FOXA) and Comcast's (CMCSA) NBCUniversal own Hulu.

There are more on-demand and over-the-top services from big cable and satellite providers in addition to standalone offerings from individual networks like HBO. (Time Warner (TWX) owns HBO and CNNMoney.)

Where are Iron Man, Gru and Shrek? For all that's great about Netflix, there are holes in its programming lineup.

I just had a week-and-a-half staycation and was surprised to see how many times I couldn't find something I wanted to watch on Netflix, particularly movies.

The first "Avengers" flick used to be on Netflix. But it's not there anymore. Hoping to get your fix of the Minions before that movie comes out this summer? You won't find either "Despicable Me" movie on Netflix.

And for all the talk about the great content for kids that Netflix has with partner DreamWorks Animation (DWA)? That's great if you want to watch offshoots and spinoffs of some of the popular movies. But good luck finding any of the original "Shrek," "Kung Fu Panda" or "How To Train Your Dragon" films.

Now don't get me wrong. I wouldn't dream of dropping my Netflix service anytime soon. It's great for TV shows ... both its own as well as catching up on things like "Breaking Bad."

Still, I can't help but wonder if the subscriber growth won't start to cool off a bit if Netflix is unable to create even more hit shows.

Related: Emmy rules change hurts 'Orange is the New Black'

You can argue that "House of Cards" and "Orange is the New Black" are the only two programs to become unqualified successes for Netflix.

Won't Netflix need more than those programs to justify its lofty stock price? "Now you might very well think that, but of course, I couldn't possibly comment," is what Underwood would probably say.

For now, Wall Street is not concerned. But Netflix has had a volatile history. And it still has a lot to prove.

The stock is priced for perfection.

If there are any hiccups in the future, investors probably won't see them coming until it's too late. Just like (spoiler alert!) poor Zoe Barnes on that Metro platform. Knock knock.

CNNMoney (New York) February 26, 2015: 11:00 AM ET

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Wanna fly LaGuardia to L.A. direct? Someday maybe you can

LaGuardia has had a 1,500-mile restriction on most flights to and from the airport for more than 30 years. For travelers going to the West Coast, Las Vegas or Phoenix, that meant you have to fly through John F. Kennedy or Newark Liberty airports. There are some loopholes in the rule, though, such as one that allows direct flights to and from Denver.

LaGuardia is about 10 miles from midtown Manhattan, while the other airports are each about 16 miles -- a big difference in New York traffic.

The Port Authority of New York and New Jersey, which owns and operates all three airports, is studying the 30-year-old rule to determine if it remains in the best interest of the region's air travelers, according to a statement. Any change would have to go through only after a "thorough study and analysis and consultation with all interested parties," the Port Authority said.

The rule came about because the Port Authority wanted to encourage airlines to fly in and out of JFK and Newark airports at a time when LaGuardia was already at capacity.

Related: How to avoid air travel misery

The rule change would probably benefit business travelers the most since they willing to pay higher fares for the convenience of going to their preferred airport. It would make it harder though to get a direct flight to many smaller airline markets.

Gates and slots are limited at the three New York airports. If an airline is going to start providing the more lucrative transcontinental flights from LaGuardia, it is probably going to come at the expense of those smaller markets.

A change would also be a boon for Delta Air Lines (DAL) and American Airlines (AAL), the two major carriers at LaGuardia, and a set-back for United Continental (UAL), which has a hub at Newark, and JetBlue Airways (JBLU), which is based at JFK.

Related: Why flying stinks and you're still paying more

Related: Legroom - How airlines compare

CNNMoney (New York) February 26, 2015: 8:37 AM ET

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Google learns how to beat you at Atari video games

Google's deep-Q network computer algorithm was able to beat Atari video games like a human.

Google has developed a computer program that can play -- and beat -- the 1980s-era Atari video games.

With an algorithm that Google (GOOGL, Tech30) calls "deep Q-network," a computer was able to achieve human-level proficiency at more than two-dozen Atari games, ranging from side-scrolling shooter games like River Raid to 3-D car racing games like Enduro.

Researchers for Google described the achievement in a paper published in the journal Nature this week.

Google provided the computer with just the basic level of understanding about how to play the game: The computer was able to "see" the pixels on the screen; it was told what actions the virtual buttons performed; and it was told the score.

What makes the program remarkable is that computers shouldn't be good at video games. Humans can draw on real-life experiences when performing game tasks like driving a car or shooting a gun. Computers typically only understand bits and bytes.

But Google's new program played at least as well, if not better, than a professional human player in 29 of the 49 games it tried. In 43 of the 49 games, Google said deep-Q network outperformed existing machine learning algorithms.

In some games, the Google computer was able to learn strategies that would help it maximize its score. For example, after playing the brick-breaking game Breakout 600 times, deep-Q network learned to tunnel through the bricks and bounce the ball off the back of the wall to knock out bricks from behind.

Google says its algorithm was designed to mimic human learning that takes place in a part of the brain called the hippocampus, which helps us learn from recent experience. Deep-Q network was designed to learn why it lost a round of a video game and to improve its game-play based on its past performance.

The stunning feat recalls IBM's (IBM, Tech30) Deep Blue chess-playing computer and Watson, the computer that beat the world's best Jeopardy! players. But unlike those two examples, which were designed to beat a specific game, Google's deep-Q network was built to learn how to play any kind of game.

That's why Google has bigger ambitions for deep-Q network's machine learning capabilities. If we want robots to anticipate our needs and cars to drive themselves, computers will have to get better at learning on their own.

Related: Google is building the world's fastest computer

Related: Google wants you to kick this robot puppy

CNNMoney (New York) February 26, 2015: 8:25 AM ET

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From street child in China to Intel mentor

Shu-Ling Garver wants to get kids, especially girls, excited about engineering.

Garver, 52, said she's an example of how a young girl's love for science and technology can open doors.

"I went from the streets to working as an engineer at Intel to becoming a millionaire," she said.

Now she wants to pay it forward.

"I want kids, especially girls, to not be afraid of science and engineering but to see it as an opportunity to be successful in their future," said Garver.

Related: Women take on manufacturing

Garver's been at Intel (INTC, Tech30) for 25 years, and she said her male counterparts have vastly outnumbered women in technical jobs.

The chasm grew wider the higher she rose up the ranks, eventually becoming technical adviser to Intel's data center CTO.

"There are very few women at the higher levels," she said.

Eager to change that trend, Garver joined the Women at Intel (WIN) Network five years ago as a mentor.

Shu-Ling Garver [left] with her sister in Shanghai in 1969.

"Women aren't as aggressive in their careers as men," said Garver. "WIN's goal at Intel is to inspire women to stay in engineering and achieve their career goals."

Garver has helped hire and guide some of these women. "One of those graduates is now a key engineer at Intel in just four short years," she said.

She also encourages women to maintain a greater work-life balance.

"Lots of engineers live a sedentary life," said Garver. "I pay a lot of attention to exercise, and I emphasize it."

She said Intel is working to increase the number of women in senior technical positions from 10% of its workforce to 17% by 2020.

Related: Black women struggle to fund startups

She recalled growing up in Shanghai under Chairman Mao Zedong's regime.

"My father was a college graduate and an intellectual who was put in a labor camp to dig tunnels," she said. The family subsequently lost their home "and my sister, mom and I set up beds on a street corner for a few weeks."

After her father returned, he made it a point to teach her English. This led her to pursue an undergraduate degree in English Literature and work as a translator at a technical institute in Shanghai.

She eventually moved to Portland, Ore., in 1986, enrolling in a master's program in computer science and engineering at Portland State University. After graduating, she was immediately hired at Intel.

Garver with kids from her Engineering for Kids class.

However, this is Garver's last week at Intel. She retires on Friday.

"It's been a very interesting journey for me," she said.

But it's far from over.

Garver became an entrepreneur in 2012 after learning about Engineering for Kids, an after-school program designed to expose students to the basics of science, engineering and math.

She signed on to run its first franchise, and for the past three years, she's been visiting local schools and running engineering and science programs.

"This isn't work for me. I'm planting seeds and acting as a role model with my personal experience," said Garver. "I want to inspire young girls to become engineers."

CNNMoney (New York) February 26, 2015: 8:34 AM ET

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It's official: America has deflation

Prices for goods actually declined -0.1% in January from a year ago, according to the Labor Department. That means it actually cost less to buy things in America this year than it did in January 2014.

It's the first time since October 2009 that the U.S. economy experienced annual deflation. But economists say don't hit the panic button yet: the economy is still improving overall.

"There is little danger that this temporary bout of falling energy prices will develop into a more insidious debt-deflation spiral," says Paul Ashworth, chief U.S. economist at Capital Economics.

The main driver of falling prices is cheap gas. A year ago, a gallon of gas was about $3.40. Last month a gallon cost around $2.15 on average. Prices have since stabilized with some saying gas is likely to rise from here.

Related: The story behind oil's plunge

At the moment, inflation is the only major yardstick of the economy going in the wrong direction. A strong and growing U.S. economy typically has inflation of around 2% a year, so a negative number is far from the mark. January was the third straight month of price declines.

If gas prices rebound more, then the total inflation figure should start heading up again. While most Americans pay attention to the prices of food and energy, economists also look at so-called core inflation that excludes those two items. Core inflation actually rose 1.6% from a year ago, another sign that gas is the key swing factor.

January's deflation could cause the Federal Reserve to hesitate on raising interest rates, which many expect them to do later this year. Federal Reserve Chair Janet Yellen and her fellow board members do not want to raise interest rates until the economy shows real momentum.

Overall, the U.S. economy has many signs of improvement. The unemployment rate is dropping, growth is picking up and hiring has been strong. But many Americans haven't seen any real improvement in their paychecks in years.

Related: Janet Yellen: Too many Americans aren't making it

When Yellen testified before Congress this week, she was pummeled with questions about the lack wage growth and why Main Street isn't feeling the recovery.

Since wages are staying flat, consumers have been thankful for low gas prices, but don't expect it to last for long. Most economists believe the cheap gas and deflation will be short-lived.

"Bottom line, talk of deflation is complete nonsense as this inflation gauge is being almost fully driven lower by energy prices," says Peter Boockvar, chief market analyst at the Lindsey Group in Fairfax, Va.

Related: Europe sinks back into deflation

CNNMoney (New York) February 26, 2015: 10:17 AM ET

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FCC voting on historic Internet rules

The Democratic-led commission is expected to decide 3-to-2, split along party lines, to assert extra government authority over the Internet.

The new rules would establish a concept called "net neutrality." It's like equal opportunity for Internet speeds and access to websites.

In principle, net neutrality would mean the owner of a network -- like Comcast (CMCSA) or Time Warner Cable (TWC) -- couldn't discriminate what runs on their cables. For example, they wouldn't be able to unfairly make fast or slow lanes that give preferential treatment to content providers, such as Netflix (NFLX, Tech30) or Hulu. A phone company like Verizon (VZ, Tech30) couldn't block apps like Google Wallet on your smartphone, like it did in 2011.

But do we need the extra rules? Or are they needless regulations that will hurt businesses? Should the federal government step in to make sure big telecom companies aren't monopolistic bullies? Or does the current system already work?

These are the major question grappling FCC regulators today.

Related: What does net neutrality mean for you?

Related: Expect a legal fight from AT&T over net neutrality

Related: 4 bad things Internet companies can't do anymore -- if the FCC gets its way

CNNMoney (New York) February 26, 2015: 11:05 AM ET

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Billionaire GOP contributor maxes out in one day

Ken Griffin poured $324,000 into the Republican National Committee on January 23 -- a record-setting contribution that would have been illegal just weeks earlier.

Griffin, his wife and their fortune have made headlines recently for a contentious divorce. Griffin's attorneys are disputing the wife's request for $1 million monthly in child support for their three children. He is ranked No. 4 on the Fortune list of highest-earners in the hedge fund community, alongside Bill Ackman and James Simons, and No. 9 on CNN's 2014 Big Donors list for right-leaning donors.

Campaign finance experts agreed his donation, made public by a RNC financial filing on Friday, is the first to reach the new limit.

Congress raised it to $324,000 from from $64,800 in December, in part because federal funds will no longer be used to pay for the political conventions parties host every four years.

Griffin, 46, likely won't be the last to take advantage of the new limit, said Adam Smith of Public Campaign, a campaign finance watchdog group. But he expected the number who max out to be fairly small, especially as many donors are sending their money to the PACs and Super PACs that are increasingly taking on the sophisticated political work parties used to perform.

Related: How Ken Griffin made his fortune

Griffin's past political contributions have included groups like America Rising, Karl Rove's American Crossroads, Senate Republican Leader Mitch McConnell's campaign, and the independent group that supported Mitt Romney's 2012 presidential campaign, Restore Our Future.

He said in a 2012 interview that individuals should be allowed to make unlimited contributions, and, despite the unwanted publicity, those contributions should be reported in a transparent way.

"I think they actually have an insufficient influence," Griffin told The Chicago Tribune, speaking of the wealthy. "Those who have enjoyed the benefits of our system more than ever now owe a duty to protect the system that has created the greatest nation on this planet."

A spokesman for Griffin's hedge fund, Citadel, had no comment on the RNC contribution.

If Griffin wants to contribute again, he can. About a week and a half after he wrote the January check, regulators adjusted the limits upwards, accounting for inflation.

Related: Will hedge fund fees come down to Earth?

CNNMoney (New York) February 26, 2015: 11:30 AM ET

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Luxury getaways for (much) younger travelers

Five-star getaways are now catering to the whole family.

From perks like organic baby food and child-sized bathrobes to larger hotel suites and more kid-focused activities, the luxury travel market is catering to much younger travelers.

In the past year, the St. Regis has seen a 20% increase in families staying at its properties.

Older parents with more money are helping to fuel the trend, said Paul James, global brand leader for the St. Regis, The Luxury Collection, and W Hotels.

"We are seeing people in their 40s with young children," James said. "By the time you are 40 and made money, you don't want to stay at the cheap motel down the road. You don't compromise your lifestyle."

He added that seeing kids at the front of a plane is becoming more common. "I flew back in January, and everyone in the business cabin had a child with them."

As more travelers bring their families along, experts said demand for larger suites and villas at hotels has increased. For instance, at the St. Regis in Bali, villa suites sell out 10 times faster than the main hotel suites, James said.

Related: Bored of your superyacht? Try a submarine

Luxury hotels are also stepping up their child-focused amenities and activities.

"Parents want to go and have adult experiences, but also want to make sure their kids will be catered to," said Kara Slater, a travel agent with SmartFlyer California who specializes in family travel.

At the Four Seasons Resort in Orlando, children are normally welcomed with chocolate alligators or organic baby food and receive child-size bathrobes.

Guests ages 4-12 at The Resort at Pelican Hill in California can attend Camp Pelican where each day's supervised activities have a different theme like Treasure Island Tuesdays or Space Exploration Fridays. The clubhouse has digital microscopes, video games and computer stations. A full day at the club runs $90 and $60 for a half day.

Parents looking for some alone time in the evening can send their travel companions to Kid's Night Out, which includes dinner, movie and popcorn for $60.

Latitude, a program for teens, runs $15 an hour ($50 for a half day) has daily activities including surf and kayak camp. And the lounge has Netflix-connected TVs, video games and a special food menu.

The resort also offers a three-hour Children's Resort Etiquette Class for guests ages 7-12 that teaches travel and social etiquette.

The room service menu includes "ants on a log" (celery with peanut butter and raisins on top) and veggies and hummus, according to Kate Starr, spokeswoman for the resort.

Related: The river cruise craze goes high-end

Families aren't just heading to the traditionally kid-friendly spots, but are seeking out more exotic locations. Hawaii and Europe are popular, according to Slater.

Authentic experiences are also a priority for people traveling with kids, said Dan Austin, president of Austin Adventures.

"We see families often start out with a domestic vacation, like Yellowstone, and the next year they head to Alaska or the Canadian Rockies. By the third trip, they are looking at Peru, Belize and Costa Rica."

CNNMoney (New York) February 26, 2015: 11:48 AM ET

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