The Pay-for-Performance Myth

Check the comparison of the ranking of the 200 CEOs Equilar looked at to their company’s stock returns, as seen on the chart below. The trend line—the average of how much a CEO’s ranking is affected by stock performance—shows that a CEO’s income ranking is only 1 percent based on the company’s stock return. That means that 99 percent of the ranking has nothing to do with performance at all. (The size and profitability of companies didn’t affect the random patterns.)

Top News
2
Israel Says Offensive to Continue as Kerry Seeks Truce

Hamas leader Khaled Mashaal asked the people of Gaza for “more patience” late yesterday, and said he sees no sign of a breakthrough in talks on a cease-fire, though he said Hamas welcomes the diplomatic efforts. Earlier, Justice Minister Tzipi Livni said Israel won’t stop its Gaza Strip offensive as long as the Palestinian territory’s Hamas rulers continue to pose a threat, and Defense Minister Moshe Ya’alon told soldiers to prepare for a broader ground war.

3
MH17 crash: FT photo shows signs of damage from missile strike - FT.com

The first apparent hard evidence that Malaysia Airlines Flight MH17 was brought down by a surface-to-air missile is emerging from the crash site in eastern Ukraine, after experts confirmed on Monday there were signs of shrapnel damage to the aircraft.

4
Stop Thinking About Herbalife vs. Ackman Forever: Video

July 23 (Bloomberg) -- Herbalife is a company that sells shakes, vitamins, and other products they say help people lose weight. Investor Bill Ackman says the company is nothing but a pyramid scheme. So which is it? Bloomberg Businessweek's Brendan Greeley explains. Video by: Kelly Buzby, David Yim

5
Dark Mail will hide everything in your email

Dark Mail won't be available for another six months. Levison is still developing it with Stephen Watt, a former Wall Street coder (now a convicted hacker who served time in prison). Levison said Dark Mail could work as an add-on with all major email services -- as long as they make slight tweaks to their code. Levison is trying to get Google, Microsoft (MSFT, Tech30) Yahoo (YHOO, Tech30) and other email providers on board.

6
China's debt soars to 250% of GDP

Have you seen this duck? The 59-foot tall duck is one of several, designed by Dutch artist Florentijn Hofman The art installation had been on display for just 11 days on the Nanming river, in Guiyang City, China before torrential rains caused the river to swell and displace the one-ton sculpture from its moorings and wash down the river. And no one has seen the duck since. Now the search is on for the giant bath toy. While this particular duck has been on a world tour since 2007, this isn’t the first time or even the third time this duck has run into trouble in Asia. This truly is one UnluckyDucky.

7
Stocks are back in 'vroom vroom' mode

Still, EU officials are meeting Tuesday to discuss further sanctions against Russia in a bid to end its support for separatist rebels in Ukraine. Western leaders say the bulk of evidence suggests the rebels shot down the Malaysia Airlines plane. Russia's stock market, the MICEX, was up Tuesday, but is still down over 4.5% for the month.

8
The U.K.'s Prince George Celebrates His First Birthday

... I ... I ... the the ... but just gone into labor has been taken to seek theories hospital in central London with the world's media have been camped outside for weeks ... the cost-cutting Amazon aligning costs nothing ... it's easy to get ... an eight x ten ... s expertise ... was he saying ... I had to stop spinning ... it's a bully ... as well Highness the Prince became rich as is booming and was born Prince William in the form of Kate Middleton ... I ... and ... the ... the the the the the the the the the the the the ... the names of the boys with me ... I was sitting in the name ... Suzanne ... it's ... I ... I ... I ... I ay ... ay ay ... I ... I ... I ... the the ay ay ay ... I ... he ... the ... the ... I ... I ...

9
FAA Temporarily Bans U.S. Flights to Tel Aviv

The Federal Aviation Administration banned U.S. carriers from flying to Tel Aviv until around midday Eastern Standard Time on Wednesday after a rocket attack early Tuesday near the city's Ben Gurion International Airport.

10
TRIP investment information - Tripadvisor Inc ideas on StockTwits

Community Sentiment: The sentiment chart shows the percentage breakdown in bullish and bearish sentiment shared by StockTwits users over time. It is calculated on a rolling, 7 day basis.

11
How Currency Affects Luxury Property Returns

See what you would have gained or lost on your investment over a year because of price and currency changes. Read more »

12
Live: Facebook’s Q2 Earnings and Conference Call - Digits - WSJ

Facebook 's  showed no signs of slowing down, posting revenue of $2.91 billion on profit of 42 cents a share, excluding certain items. Wall Street had expected revenue of $2.8 billion on profit of 32 cents a share. We live-blogged the conference call with analysts.

13
The Five Biggest Auto Recalls in American History: Video

July 23 (Bloomberg) –- General Motors is expected to report another quarter of earnings decline. The auto maker has issued a string of recalls this year, calling back the equivalent of 40 percent of its vehicles. Bloomberg Ranx looks at the biggest auto recalls in U.S. history. (Source: Bloomberg)

14
You're ready for retirement, but your savings aren't

True, $22,176 at age 70 won't pay for a lavish retirement. But unless you have a lot of other income, you shouldn't have to pay taxes on your Social Security benefit. Indeed, Social Security is perhaps the best income stream available to retirees. It's indexed to inflation, backed by the federal government, at least partially tax-free, and you know you'll get it for as long as you live. Moreover, your spouse may receive your benefit as a survivor benefit, assuming you die first.

15
Premarkets: 4 things to know before the open

Here are the four things you need to know before the opening bell rings in New York:

16 SEC is set to approve money-fund rules

WASHINGTON—Asset managers that cater to individual investors are set to avoid the brunt of new money-market mutual-fund restrictions, after discount broker Charles Schwab Corp. SCHW 0.00% built support for an approach to exempt companies like it from some provisions of the new rules.

17
Tame inflation shows Yellen's Fed is not 'behind the curve'

Fed officials characterized the recent pickup in inflation as confirming their projections after nearly two years of weaker-than-forecasted aggregate price growth,” Bank of America Merrill Lynch economist Michael Hanson notes. After today’s data release, he adds: “The Fed is likely to remain patient in the face of the current modest inflationary trends, and not make a hawkish rush to the exit.”

18
China’s Army Turns to Dancing Robots, Big Macs to Burnish Image

China ’s army turned to dancing robots, served up Big Macs and showed that amphibious vehicles can indeed do donuts in its latest attempt to soften a public image buffeted by a series of corruption scandals.

19
Facebook may prove Janet Yellen wrong today Outside the Box

Most social-media numbers look fine considering how fast companies are growing. Moscow-based Yandex, Google, Facebook and China-based Tencent Holdings all trade at a growth-adjusted P/E of less than 1.5. Dividing their multiple by the pace of expected profit growth over five years, these names are actually cheaper than health-insurance businesses like WellPoint /quotes/zigman/362231/delayed/quotes/nls/wlp WLP +0.10% or Old Tech’s Cisco Systems /quotes/zigman/20039/delayed/quotes/nls/csco CSCO -1.04% , and comparable to IBM /quotes/zigman/230066/delayed/quotes/nls/ibm IBM -0.24% .

20
New China food scandal hits McDonald's, KFC

An American-owned meat factory operating in China has been accused of selling out-of-date and tainted meat to clients including McDonald's (MCD) , Starbucks (SBUX) and Yum Brands (YUM) , which owns the KFC and Pizza Hut chains.

21
5 cities that millionaires call home

The study defines “millionaires” as individuals with net assets of $1 million or more, not including their primary residences. Here are the cities — some obvious, others not so much — with the highest percentages of those monied types as a proportion of the total population:

22
Chrysler recalls 792,000 older Jeeps

The problem can cause the ignition key to move out of the "on" position while the car is being driven, usually because it was bumped by a driver's knee, the company said in a statement. That could cause the engine to stall and the front airbags to stop working.

23
VerizonIR investing profile on StockTwits

In this communication we have made forward-looking statements. These statements are based on our ... more

24
Subianto set to challenge Indonesian election results

Mr. Subianto's running mate, Hatta Rajasa, didn't attend a news conference Tuesday at which the presidential candidate said he rejected the results of the vote. On Wednesday, the campaign team said they didn't know Mr. Rajasa's whereabouts but that he supported Mr. Subianto's push at the Constitutional Court. Attempts to reach Mr. Rajasa were unsuccessful.

25
Russian Billionaires Paying the Price for Sanctions: Video

July 21 (Bloomberg) -- Bloomberg’s Matt G. Miller breaks down losses by Russian billionaires from sanctions imposed by the United States and Europe for the nation’s actions in Ukraine. He speaks on “In The Loop.”

26
Millennials Save For Retirement Earlier Than Baby Boomers, Survey Finds

The survey did find that more Millennials should create a written, long-term strategy for retirement – only 10% of those who estimated their savings needs in retirement said they had used some type of retirement calculator or worksheet. In other words, while Gen Y is saving at unprecedented levels, it needs to start looking at the bigger picture.

27
John Paulson Makes Almost $1 Billion on OneWest Sale

The $21.4 billion Paulson & Co. owns the investment through its Recovery Fund, which was created in October 2008, and a credit pool, according to a memo sent to clients. The funds spent $400 million to purchase a 24.9 percent stake in Pasadena, California-based OneWest in 2009. The sale values that stake at $788 million and Paulson also received $551 million in dividends. The total gain for the funds is $939 million.

28
Women Penalized for Promoting Women, Study Finds - At Work - WSJ

Hekman and two colleagues examined a pool of 362 executives, including CEOs, vice president and directors from industries like banking, consumer products and food. They found that executives who ranked in the top 15% on a scale of dedication to diversity received an average performance rating of 3.76. Moving down on the pro-diversity behavior scale correlated to an increase in performance review ratings. A woman who ranked at the average of the diversity scale yielded a performance rating of 3.98, while scoring in the bottom 15% on the diversity scale pushed the performance rating to 4.15, a 10% increase from those who ranked at the top of the diversity scale, according to Hekman.

29
Microsoft Corporation

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30
Pershing Square's Herbalife Presentation: Live Blog

Ackman told Bloomberg TV he's spent $50 million of Pershing's limited partners' capital to research and publicize the fund's negative views on Herbalife. Those comments come ahead of a Tuesday presentation Ackman is holding that he said "will give the market sufficient information to shut the company down."

31
What happens when the SEC's trading ban on Cynk Technologies lifts?

Jacob Frenkel, who is now a partner with Shulman, Rogers, Gandal, Pordy & Ecker, P.A., said the onus will be on Cynk to provide current documentation to satisfy the SEC that it’s operational and has its finances in order before a broker can put it back on the market. Given the fact that Cynk drew the attention of regulators in the first place because of its meteoric stock gains despite recent SEC filings showing no profit, no revenue, no assets, a $1.5-million operating loss in 2013 and a single employee, that might pose a challenge.

32
Who Gets Saved? Hepatitis Cure at $84,000 Makes Doctors Choose

Early this year, liver specialist Ken Flora and his colleagues sent letters to 1,300 patients announcing exciting news: powerful new drugs to cure the lethal hepatitis C virus were finally available.

33
Facebook Earnings: Instagram, Mobile Shift and Other Areas to Watch - Digits - WSJ

Facebook has been testing out the network since April, and anything Facebook says on the earnings call about how it’s working will get analysts listening. A big question is if and when Facebook will expand this network to the desktop. Though there’s a lot of talk about the “shift to mobile,” Facebook is leaving money on the table by narrowing its ad network to mobile phones.

34
Australian Inflation Accelerates in Policy Bind for RBA: Economy

Australia ’s core consumer prices gained more than economists forecast last quarter, sending the Australian dollar to its highest in two weeks and creating a hurdle to further monetary policy easing.

35 Row erupts over French warship ahead of European summit - FT.com

Row erupts over French warship ahead of European sanctions talks

36
Analysts react to Saudi's plan to open up its stock market to foreigners - Middle East Real Time - WSJ

“This is long awaited and is likely to see a surge of foreign inflows into the Saudi market – particularly if/when it joins an MSCI index. It is rival for money that might otherwise be invested in Russia, which is one reason Rencap is opening up in MENA in 2014. Our MENA team is very excited. If Saudi was to join the Frontier universe, it would become 64% of the index. If it joined the MSCI Emerging Market index, it would be 4.4%, similar to Russia.”

37
Facebook mobile ads propel revenue surge; stock hits new high: Live blog

Once again, mobile ads was a key driver of Facebook’s growth. Mobile ads now make up 62% of the company’s total ad revenue, up from 41% in the same period last year.

38 IMF forecasts lower interest rates than Fed does

The IMF staff and the Fed  agree that the first rate hike, or lift-off, will likely come in midsummer of 2015. But after that their rate paths diverge,  with the IMF staff’s expected rate path well below the median of the estimates of top Fed officials in the latest “dot-plot” released in June.

39
Will Apple's Larger iPhone Kill iPad Sales?: Video

July 23 (Bloomberg) -- Bloomberg Contributing Editor Paul Kedrosky examines what was learned in results from Apple and Microsoft and looks at the product pipeline with expectations for a bigger iPhone later this year. He speaks on “Market Makers.”

40
Your Facebook ‘cult’ won’t let you quit

In fairness to those left behind, Facebook is the only way certain people communicate with each other, so deactivating an account is tantamount to pulling a fixed-line telephone out of the wall in a world before the Internet, says Daniel Miller, a professor of anthropology at University College London who is currently studying students’ use of social networks. “If you had the ability to cut off your phone, and told your friends you were doing this, how do think they would feel?” Miller says. “I hope, for your sake, the answer would be very upset indeed.” This, he adds, is compounded by the amount of photos people tag and share.

41
IMF trims U.S. 2014 growth forecast to 1.7%

WASHINGTON (MarketWatch) - The International Monetary Fund on Wednesday trimmed its forecast for U.S. economic growth to 1.7% from 2% due to unexpected weakness in the first quarter. At the same time, the IMF said U.S. growth would pick up above 3% over the next eighteen months. The first rate hike from the Federal Reserve is likely to come in mid-summer 2015, around the same time that Fed officials have suggested, the IMF said. But continued slack in the labor market and low inflation would allow the central bank to tighten monetary policy more slowly than the median expectations of top Fed officials, the IMF staff said. An IMF official said that U.S. markets may be complacent about the economic uncertainties ahead.

42
Why one Herbalife short seller (not named Ackman) remains confident $HLF - MoneyBeat - WSJ

“Bill Ackman and his team at Pershing Square uncovered a lot of great new information about the company and how it operates that neither I nor anyone else knew, but much of this didn’t come through clearly in his presentation for various reasons,” Mr. Tilson said. “But I don’t care about the messaging — that can be fixed. I care about the substance.”

43
TransCanada Corp gets nod to build Northern Courier pipeline in Alberta

Canada’s second-largest pipeline company said it expected to start construction on the 90-kilometre (56-mile) oil pipeline in the third quarter and to have it ready for service by 2017.

44
Everything you need to read in Morning Links: How Draghi Bolstered Wall Street's Bottom Line - MoneyBeat - WSJ

The burst of trading that helped save Wall Street’s second quarter started with comments made by a central banker an ocean away — WSJ

45
The Long-term Unemployed May Finally Get a Break

In a paper issued this week , Tomaz Cajner and David Ratner find that the percentage of the unemployed who have been jobless for more than 27 weeks – the definition of “long-term” unemployment – has been dropping sharply in recent months, and that there is strong evidence to suggest that it is because they are finding jobs rather than simply dropping out of the labor force altogether.

46
Meet the Suitmaker Who Dresses 6'8

July 22 (Bloomberg) -- Fashion Designer and Tailor Waraire Boswell discusses haute couture and fashion for NBA stars on “Market Makers.” (Source: Bloomberg)

47
Vegans rejoice: meat prices rising more than prices for fresh fruits and vegetables - Real Time Economics - WSJ

Beef and veal prices were up 10.4% in June from a year ago, and prices for pork chops alone rose 14.3%, the largest increase since December 1990. Seafood-lovers paid 9.1% more for fresh fish and seafood from a year ago. And egg prices rose 8.6% over the year.

48
Apple Inc revenue falls short of estimates, despite 'strong' iPhone, Mac sales

Apple Inc.’s third-quarter revenue fell short of estimates Tuesday, but chief executive Tim Cook touted “off the chart” sales growth numbers in China and a “huge opportunity” in its IBM partnership as future bright spots.

49
Oil Sands Gushing Jobs Mark Divide in Canadian Economy

The oil- and gas-rich western province was responsible for all of the country's net employment growth over the past 12 months, adding 81,800 jobs while the rest of Canada lost 9,500. Alberta's trade surplus, C$7.4 billion ($6.9 billion) in May, almost matched the deficit rung up everywhere else.

50
Could Submersibles Be Transportation of the Future?: Video

July 22 (Bloomberg) -- In this installment of Bloomberg's "Wiring the World" series on “Bloomberg West,” Deepflight Founder Graham Hawkes discusses his vision of a submersible transportation future. (Source: Bloomberg)

51 Apple's Bigger iPhone: Betting on September Launch: Video
52 Exclusive sit down with Bill Ackman on Herbalife
53 Protecting Alberta’s ‘centre of gravity’: New energy regulator wants to restore trust
54 Live chart: Too high a price
55 FonsieTrader shared an idea on StockTwits
56 IMF Says Fed May Have Scope to Keep Rates Low Past Mid-2015
57 Behind the trading burst that shored up Wall Street
58 Talisman Energy Inc shares halted amid report that Repsol considering bid
59 Why Apache Corp should listen to only some of Jana's advice
60 Inside Microsoft's Secret Surface Labs: Video
61 No discounts here: 5 expensive stocks
62 Microsoft CEO, Seeking Growth, Tells Managers: Step It Up
63 Plenty of programs teach speaking. Now, some executives are being training in listening.
64 Ukraine Says Malaysian Airliner Shot Down Near Russian Border
65 Bloomberg TV: Business Live TV
66 Congress.gov | Library of Congress
67 Global Poll 2014-07-16
68 Best cities to launch a startup
69 Malaysia Airlines Crash in Ukraine
70 Are the Amazon Fire Phone's innovations enough to compete with iPhone and Galaxy?
71 Ukrainian fighter jets shot down from Russian territory, military says
72 America’s lost oomph
73 Apple Hints New Products Near With Bigger IPhones Looming
74 Israeli stocks have been surprisingly resilient despite war with Gaza
75 Study finds elementary students like new healthier lunches
76 10 hardest working countries
77 Why powerful people believe they have more time at their disposal than subordinates
78 Cancelation Is Becoming Meaningless In The New Age Of TV
79 Your mail delivered. After dark.
80 Regulators on Deutsche Bank: 'Inaccurate and unreliable' data; 'wide-ranging remedial action' needed
81 Chocolate, waffles and... U.S. government bonds?
82 Fox unlikely to add much cash to bid for Time Warner
83 Pizza Hut Hopes the Teenage Mutant Ninja Turtles Will Boost Sales
84 S&P 500 closes at record on strong earnings Market Snapshot
85 In Art the Safest Bet is the Biggest Bet
86 Remember Foursquare? It Has a New Logo
87 How a Right-Wing Super PAC Could Hurt the Chicago Cubs
88 The Post-Recession Economy Has Left Recent College Grads Behind
89 Has the iPad Already Passed Its Peak?
90 Starbucks opens first store in Hanoi
91 Two Ukrainian Jets Shot Down, Three Dangerous Explanations
92 McDonald’s Gives Itself a Year and Half to Get Into Chipotle-Fighting Shape
93 Planes Carrying Bodies From Malaysia Airlines Flight 17 Arrive in Netherlands
94 lamonicabuzz shared an idea on StockTwits
95 Why powerful people believe they have more time at their disposal than subordinates
96 Apple sued by employees over labor issues
97 The Barnaby Jack Few Knew: Celebrated Hacker Saw Spotlight as 'Necessary Evil'
98 Best-loved cars in America
99 New York's Unpaid Interns Can Now Sue for Sexual Harassment
100 Herbalife: A high-stakes hedge fund gamble - Marketwatch