Big winners on Wall Street are yesterday's dogs

Click for more market data.

NEW YORK (CNNMoney)

First Solar was the best performing stock among the S&P 500, gaining more than 65% over the past three months.

It's a remarkable rebound for the leading maker of solar panels, which saw its stock fall 12% in the first quarter.

First Solar (FSLR) wowed investors in April with a surprisingly bullish outlook for the year. The stock shot up 43% in one day, after First Solar said it expected profits to be 28% above previous forecasts this year on healthy sales growth.

The solar industry has been in a slump as low-cost imports from China have depressed prices. But solar panel prices have stabilized and First Solar said demand is ramping up.

First Solar wasn't the only underdog to make a comeback.

J.C. Penney (JCP, Fortune 500) shares gained more than 12% during the quarter, recovering about half of their first quarter losses.

The retailer ousted CEO Ron Johnson in April, after his controversial turnaround plan failed to show results. J.C. Penney publicly apologized for the changes, and ran an ad on its YouTube channel that practically begged customers to come back.

Related: Top hedge fund manager bets on a return to normal markets

In business for more than 100 years, J.C. Penney has been swimming in red ink as it struggles to compete with online retailers. But the company has been strengthening its finances in an effort to mount another turnaround. It scored a $1.75 billion loan from Goldman Sachs (GS, Fortune 500) in April.

Other top performers in the quarter include popular momentum stocks, such as GameStop (GME, Fortune 500), Micron Technology (MU, Fortune 500) and Best Buy (BBY, Fortune 500).

Best Buy has also been on a turnaround kick, cutting costs and closing under performing stores. Investors have welcomed the moves, sending shares up 26% in the quarter, despite a disappointing sales report in May.

It was also a good quarter for health insurance companies. Shares of Aetna (AET, Fortune 500), WellPoint (WLP, Fortune 500) and Humana (HUM, Fortune 500) all rose by more than 23%.

Golden parachute? Mining companies were among the worst performers in the quarter as prices of precious and non-precious metals plunged.

Shares of Alpha Natural Resources (ANR, Fortune 500) and Newmont Mining (NEM, Fortune 500) fell more than 30%. Iron Mountain (IRM) and Freeport McMoRan (FCX, Fortune 500) also suffered double-digit losses.

Investors have been dumping mining stocks as gold prices plunge.

Related: Gold plunges to two-year low

The precious metal is down 25% this quarter, falling below $1,200 an ounce this week for the first time since August 2010. The largest gold-backed ETF, the SPDR Gold Shares Trust (GLD), lost nearly 24% during the past three months.

While the sell-off in gold has caught the most headlines, mining stocks have also been hurt by the falling price of copper.

Copper prices plunged nearly 12% in the second quarter as demand from China slowed and supplies increased.

A number of energy companies were also hit hard.

Marathon Petroleum (MPC, Fortune 500) shares are down more than 20% for the quarter, after gaining 42% in the first quarter. The company has been playing catch-up on the boom in domestic energy production, and is exposed to a slowdown in emerging market demand.

Peabody Energy (BTU, Fortune 500), which specializes in coal mining, and gas station operator Valero (VLO, Fortune 500) were also big losers in the quarter.

First Published: June 28, 2013: 12:44 PM ET

05.32 | 0 komentar | Read More

Starbucks' caffeine-fueled expansion

A cup of joe from the Starbucks coffee shop in Beijing's Forbidden City.

(Money Magazine)

It's a remarkable turnaround for a firm that just five years ago had to bring back former CEO Howard Schultz after overexpansion and error-filled forays beyond coffee -- ranging from breakfast foods to music -- eroded customer patience. After righting the ship, management is again embarking on another major expansion. But at what cost?

Venti valuations

After more than quadrupling in the past four years, the stock is foamy.

	Projected P/E ratios
Starbucks	27.1
Restaurant stocks	21.2
S&P 500	15.2

Notes: Price/earnings ratios are based on projected profits. Sources: Bloomberg, Morningstar

Strong brew

"Say 'Starbucks' to the average American, and they'll not only think of coffee, but good coffee," says David Ricci, co-manager of William Blair Large Cap Growth, which owns the stock. The same can now be said for global consumers.

Starbucks (SBUX, Fortune 500) is the world's only premium coffee superpower, and its basic business -- selling expensive cups of joe and even pricier espresso drinks through nearly 18,900 stores worldwide -- is as robust as its earthy Sumatra roast.

Related: Starbucks hikes prices

Even with a recession in Europe, global same-store sales still rose 6%. Revenues should climb 11.5% this year, vs. 7% growth for Dunkin' Brands (DNKN) (parent of Dunkin' Donuts).

And SBUX will save more than a quarter-billion dollars in coffee costs in the next two years because of falling bean prices.

Caffeinated costs

Starbucks is growing all over. The company plans to build 600 more cafés in the U.S. this year and another 1,000 stores in China by the end of 2015. It bought Teavana, Evolution Fresh, and La Boulange for $750 million to move more into teas, juices, and baked goods.

The roaster is also making a big push into the at-home market through K-cup sales and its new Verismo brewing system.

Related: Starbucks starts paying U.K. tax

"One concern is, Are you doing too much?" says Bill McVail, analyst at Turner Global Opportunities Fund, which owns the stock.

The reason the firm had to go back to Schultz was it tried -- and failed at -- brand extension via ice creams and even a music label. While croissants and coffee pods are closer to the core business, a misstep could dim Wall Street's starry eyes.

Steamy valuations

Starbucks is poised for years of growth, but it's also "a company with a valuation that is just too expensive for us," says Regina Lombardi, co-manager of BBH Global Core Select. The stock's price/earnings ratio is nearly double the S&P 500's, so you have to pay to jump on this caffeine-fueled bandwagon.

That said, even after boosting spending, Starbucks has $1.7 billion in cash, 10 times Dunkin's stash. Management is also likely to boost dividends in line with strong earnings growth, says Ashley Woodruff, an analyst at the T. Rowe Price Blue Chip Growth Fund, which owns the stock. "Starbucks is able to pay shareholders and still invest in the businesses it wants," she says.

Think: a splash of income to go with rich growth.

First Published: June 28, 2013: 4:42 PM ET

05.32 | 0 komentar | Read More

Paula Deen's business partners vow to support her

NEW YORK (CNNMoney)

Walmart (WMT, Fortune 500), Target (TGT, Fortune 500), Home Depot (HD, Fortune 500), Sears (SHLD, Fortune 500), JC Penney (JCP, Fortune 500) and Caesars (CZR, Fortune 500) have recently ended their deals with Deen while drugmaker Novo Nordisk (NVO) and home shopping channel QVC have suspended their dealings with the embattled celebrity chef.

On Friday, President Jimmy Carter, whose Atlanta-based Carter Foundation is hosting a human rights forum this weekend, weighed in on the issue.

"She was maybe excessively honest in saying that she had in the past, 30 years ago, used this terrible word," Carter told CNN's Suzanne Malveaux.

Carter, while not condoning Deen's racial slurs, said she's been punished enough and that he advised her to get the people she's helping to speak up.

Several of her business partners are doing just that, speaking up and pledging to stand by her. Many have issued letters of support for Deen.

Sandridge Food Corporation, a fresh foods manufacturer that produces deli salads, soups, entrees, desserts, sauces and dips, released a statement Wednesday announcing its unwavering support for Deen.

"Paula is a very caring person who has spent the majority of her life helping the less privileged and giving back," said CEO Mark Sandridge. "As an organization, we believe she and her team are on the right track and we look forward to continuing to work together."

Related: Paula Deen business shaken by controversy

Sandridge says he knows Deen personally and asserts the woman portrayed in the media is not the woman he knows.

"The woman that I know is a very giving person; I do not believe she's a racist whatsoever," said Sandridge. "We know where she comes from and she is genuinely about equality for all."

Kevin Lyles, President and Chief Operating Officer of Club Marketing Services -- which helps companies sell to Wal-Mart and Sam's Club -- affirmed his support for Deen.

"Her apology for the past, I believe came from the heart," said Lyles "The commitment to fairness and equality in the workplace for everyone was from the heart and also a clear message to everyone working for her and those supporting her brand that this behavior will not be tolerated by Paula Deen Enterprises going forward."

Lyles, a personal friend of Deen's for about four years, says she has always shown love and compassion for her fellow man, and has made financial decisions that have not always been in her best interest.

As Deen became a household name, he said she had many opportunities to drop smaller companies that were supporting her and switch to larger companies that could benefit her more financially. But Lyles said Deen instead chose to stay with them.

"She wanted the people that supported her to grow with her," Lyles said.

Related: Paula Deen fans lash out against Wal-Mart

Perhaps one of Deen's most ardent supporters is Julie Goodman Cook, a sales consultant who oversees the Paula Deen cruise for Alice Travel. Cook's unwavering support was on full display as she explained how generous and giving Deen has been.

Cook said, while on the Deen themed cruise, the chef auctioned off personal items such as clothing worn while on TV as well as serving dishes, artwork and other items from her home. The auction raised almost $80,000 for Deen's Bag Lady Foundation which supports women and families in need.

Cook said the support she has seen from Deen's fans of all races has been overwhelming. "My phone has not stopped ringing," said Cook. "The emails haven't stopped, Facebook is going crazy and they are all positive comments from her fans."

First Published: June 28, 2013: 3:16 PM ET

05.32 | 0 komentar | Read More

Starbucks' caffeine-fueled expansion

A cup of joe from the Starbucks coffee shop in Beijing's Forbidden City.

(Money Magazine)

It's a remarkable turnaround for a firm that just five years ago had to bring back former CEO Howard Schultz after overexpansion and error-filled forays beyond coffee -- ranging from breakfast foods to music -- eroded customer patience. After righting the ship, management is again embarking on another major expansion. But at what cost?

Venti valuations

After more than quadrupling in the past four years, the stock is foamy.

	Projected P/E ratios
Starbucks	27.1
Restaurant stocks	21.2
S&P 500	15.2

Notes: Price/earnings ratios are based on projected profits. Sources: Bloomberg, Morningstar

Strong brew

"Say 'Starbucks' to the average American, and they'll not only think of coffee, but good coffee," says David Ricci, co-manager of William Blair Large Cap Growth, which owns the stock. The same can now be said for global consumers.

Starbucks (SBUX, Fortune 500) is the world's only premium coffee superpower, and its basic business -- selling expensive cups of joe and even pricier espresso drinks through nearly 18,900 stores worldwide -- is as robust as its earthy Sumatra roast.

Related: Starbucks hikes prices

Even with a recession in Europe, global same-store sales still rose 6%. Revenues should climb 11.5% this year, vs. 7% growth for Dunkin' Brands (DNKN) (parent of Dunkin' Donuts).

And SBUX will save more than a quarter-billion dollars in coffee costs in the next two years because of falling bean prices.

Caffeinated costs

Starbucks is growing all over. The company plans to build 600 more cafés in the U.S. this year and another 1,000 stores in China by the end of 2015. It bought Teavana, Evolution Fresh, and La Boulange for $750 million to move more into teas, juices, and baked goods.

The roaster is also making a big push into the at-home market through K-cup sales and its new Verismo brewing system.

Related: Starbucks starts paying U.K. tax

"One concern is, Are you doing too much?" says Bill McVail, analyst at Turner Global Opportunities Fund, which owns the stock.

The reason the firm had to go back to Schultz was it tried -- and failed at -- brand extension via ice creams and even a music label. While croissants and coffee pods are closer to the core business, a misstep could dim Wall Street's starry eyes.

Steamy valuations

Starbucks is poised for years of growth, but it's also "a company with a valuation that is just too expensive for us," says Regina Lombardi, co-manager of BBH Global Core Select. The stock's price/earnings ratio is nearly double the S&P 500's, so you have to pay to jump on this caffeine-fueled bandwagon.

That said, even after boosting spending, Starbucks has $1.7 billion in cash, 10 times Dunkin's stash. Management is also likely to boost dividends in line with strong earnings growth, says Ashley Woodruff, an analyst at the T. Rowe Price Blue Chip Growth Fund, which owns the stock. "Starbucks is able to pay shareholders and still invest in the businesses it wants," she says.

Think: a splash of income to go with rich growth.

First Published: June 28, 2013: 4:42 PM ET

05.32 | 0 komentar | Read More

Taxpayer advocate: IRS needs more money. Seriously.

Nina Olson, the independent national taxpayer advocate, has been urging Congress for years to adequately fund the IRS so it can carry out its 'radically transformed mission' and ever-growing to-do list.

NEW YORK (CNNMoney)

But none of that overshadows a serious long-standing problem for the agency highlighted by Nina Olson, the independent national taxpayer advocate.

The problem? Inadequate funding.

Olsen is no shill for the agency. She represents the interests of everyone who has to file a tax return to Uncle Sam, and anyone going through an audit, due a refund or simply plagued with questions about a tax matter.

And it's on tax filers' behalf that she is urging Congress to stop cutting the IRS budget while adding mightily to the agency's to-do list.

In her mid-year report to Congress on Wednesday, Olson noted that the IRS collects more than 90% of federal revenues. At the same time, it must administer business incentives, the antipoverty Earned Income Tax Credit, and many retirement, education and health care policies.

Just in the past few years, the IRS has been given a central role in implementing Obamacare, sending out economic stimulus payments, administering the temporary Making Work Pay credit and the first time homebuyer credit. Plus, it has had to devote increasing resources to combat tax-related identity theft.

Related: IRS' role in Obamacare

Meanwhile, the agency's budget has been cut by 8% -- or $1 billion -- since 2010, Olson noted, including an 83% drop in its training budget. (The House budget calls for further cuts next year.)

On top of that, the number of full-time, permanent IRS employees has decreased in the past three years to 79,000 workers from 86,000.

As a result, the IRS can't answer one out of every three calls from someone who wants to talk to an IRS employee, Olson said. There's a backlog in correspondence. And "hundreds of thousands" of identity theft victims aren't being helped in a timely manner.

Related: 'Overworked' IRS unit treated like a 'stepsister'

"The IRS will cut corners, eliminate protections it doesn't understand and deems unnecessary, make decisions in ignorance of the law, and generally not spend the time necessary to understand specific taxpayer concerns until things reach a crisis level," Olson said.

Further cuts won't be great for the country's coffers, either.

"If the IRS is not properly funded to collect the revenue, there will be fewer dollars available for the military, for social programs, for intelligence and embassy protection, for infrastructure maintenance, for medical research -- or simply for deficit reduction," Olson told a Senate subcommittee last month.

Olson on Wednesday also issued a special report about the IRS's recent tax-exempt troubles. And again, she cited the funding problem.

"In my view ... the real crisis is not the one generating headlines. The real crisis ... is a radically transformed mission coupled with inadequate funding to accomplish that mission."

First Published: June 27, 2013: 6:01 AM ET

05.33 | 0 komentar | Read More

No more "Check please!" with this gadget

Restaurant patrons can split the check and swipe their own credit cards at the table with this gadget from Viableware, says CEO Joe Snell.

NEW YORK (CNNMoney)

Or how about that awkward moment after a meal with friends, when the check arrives and conversation stops because someone has to figure out how to split the bill fairly?

Hoping to eliminate such stressful dining-out experiences, a Kirkland, Wash.-based startup, Viableware, has created a potentially million-dollar product. Called RAIL (restaurant lingo for "quick"), it's a portable device that lets you do a self-checkout right from your table.

About the size of a typical restaurant check holder, the touchscreen device displays a digital version of the bill. Customers can use it to easily split the check, calculate tips, swipe their credit cards, and print out or email themselves the receipt.

"Basically you can pay the bill yourself in 20 seconds or less and you're no longer dependent on the waiter," said Joseph Snell, CEO of Viableware.

There's an advantage for restaurants, too. "Since waiters don't have to run back and forth with checks, they can focus on better service," said Snell.

The devices, which cost about $200 each, are currently being tested by PayPal and American Express, and in restaurants including P.F. Chang's, Dickie Brennan's Steakhouse and pub chain McMenamins.

Million-dollar ideas: An iPhone case that doubles as a stun gun

This isn't Snell's first time launching a company. Tesla (TSLA) CEO Elon Musk bought Snell's first startup, Pantheon, a software provider for the publishing industry, in 1997. Over the ensuing years, the serial entrepreneur launched and sold three small businesses.

In 2010, a colleague approached Snell with an initial concept for the gadget. The basic idea was to protect customers from identity theft, since it allows diners to swipe their own credit card rather than hand it over to a waiter. RAIL doesn't store any customer information, like credit card numbers.

Related gallery: They're on startup No. 3 - at least

But Snell's gut told him he'd need to make the device even more useful to get the attention of investors and potential customers. So he talked to restaurant owners and others in the industry, and based on their feedback, added features like the ability to calculate tips, and split the bill.

Viableware so far has raised nearly $6.5 million in funding, mostly from Seattle-based angel investors. It found a manufacturer in China, and expects to make 300 to 600 of the devices this year. Snell hopes the technology catches on once the restaurants' pilot programs are done, so the company can start generating revenues.

If the company scores big contracts from large restaurant chains, Snell expects they could generate $3 million to $5 million in sales for the company by year end. Even better, he hopes, they could improve the dining-out experience for "both the restaurant and the consumer."

First Published: June 27, 2013: 6:04 AM ET

05.33 | 0 komentar | Read More

Same-sex couples: Beware the marriage penalty

NEW YORK (CNNMoney)

On Wednesday the Supreme Court shot down the Defense of Marriage Act, making it possible for same-sex couples who are married at the state level to access more than 1,000 federal benefits that were previously reserved for opposite-sex couples -- including the ability to file their federal taxes jointly or "married filing separately."

For some couples, that new right will be costly. Many same-sex couples who file jointly will have to pay the so-called marriage penalty, taxes they wouldn't have to pay if they were considered single.

Related: The financial impact of the same-sex marriage ruling

Couples in which both spouses earn similarly high incomes are more likely to be hit with a marriage penalty. Married couples also have the option to file as "married filing separately," but this is rarely beneficial. Often, couples will end up owing the same amount as filing jointly or they will get hit with an even bigger marriage penalty, said Anthony Infanti, a University of Pittsburgh law professor who specializes in tax issues for same-sex couples.

For a same-sex couple where each spouse earns $100,000, the additional liability of filing jointly would be a little more than $3,000 -- which is the same amount of extra tax they would owe if they opted for "married filing separately," according to analysis H&R Block conducted for CNNMoney, assuming the couple takes a standard deduction and no tax credits.

Brian Esser and Kevin O'Leary, from New York City, estimate they will owe an additional $5,000 in income tax by filing their tax returns jointly. They both work full-time and earn similar incomes -- Esser as a lawyer at Baker Hostetler and O'Leary as a senior writer for Us Weekly -- so combining incomes will place them in a higher tax bracket.

Related: Same-sex ruling: 'A huge relief'

On the flip side, the couple will likely no longer owe $1,000 in tax on the health insurance O'Leary receives through Esser's employer-sponsored plan.

But what matters most to them is the federal government's recognition of their family "whether that's legally, financially or emotionally," said Esser.

"Any additional taxes we might have to pay are far outweighed by the safety and security we will get from the federal government officially recognizing our family," he said.

The same goes for Sean Liphard and Auntré Hamp, from Washington, D.C, who expect to pay an extra $1,950 per year when filing jointly.

"You can't put a price tag on equality," said Hamp. "The overturning of DOMA is bigger than the financial effects ... for me it's about living in a nation that chooses equality over discrimination, where we all are granted the same liberties, including marrying the person you love and having that marriage recognized by our government."

Related: Which states allow same-sex marriage?

While some same-sex couples will take a big hit by filing jointly, others will benefit hugely. Couples with wildly different incomes -- where one spouse earns no income and the other has a high-paying job, for example -- could lower their tax bill by thousands of dollars because they will fall into lower tax brackets when their incomes are merged.

"Marriage is kind of a mixed bag for people -- it depends on your circumstances," said Infanti. "Some people who have been able to avoid the marriage penalty up until now will get the marriage penalty and those who have been denied a marriage bonus will get that."

First Published: June 27, 2013: 7:07 AM ET

05.33 | 0 komentar | Read More

Vodafone's $10 billion German takeover

Vodafone is paying a total of 7.7 billion euros to buy Germany's Kabel Deutschland.

LONDON (CNNMoney)

Both Vodafone (VOD) and Kabel Deutschland issued statements saying they were happy with the all-cash deal. The U.K.-based telecom giant is offering 87 euros for each Kabel Deutschland share, for a total of 7.7 billion euros.

This seems to end the short-lived battle between Liberty Global (LBTYA, Fortune 500) and Vodafone; both companies had been pursuing Kabel Deutschland.

Vodafone says the purchase will allow it to continue growing in the German market and cross-sell Kabel Deutschland TV and broadband services to its existing customers.

Vodafone is one of the world's largest mobile communications companies with a market capitalization of roughly $132 billion.

Kabel Deutschland, which bills itself as Germany's largest cable operator, provides services to over 8.5 million households.

First Published: June 24, 2013: 7:09 AM ET

05.33 | 0 komentar | Read More

Start the countdown! Twinkies return to shelves July 15

Twinkies will be returning to store shelves on July 15.

NEW YORK (CNNMoney)

The announcement was made by Daren Metropoulos, principal of Metropoulos & Co., one of the two companies that bought the rights to Twinkies and other snack brands from the bankrupt Hostess Brands earlier this year.

The new Twinkies box will look very similar to the old one, with the addition of the line "The sweetest comeback in the history of ever."

"America wanted Hostess back -- they wanted the original," said Metropoulos.

The new company will sell all of the Hostess and Dolly Madison snack products. Other companies bought the bread brands, including Wonder Bread, from the bankrupt Hostess. Details of the return of those products have yet to be announced.

Wonder Bread, Twinkies and other Hostess products have not been produced since November, when Hostess Brands Inc. filed with the bankruptcy court to liquidate its 82-year old business following a crippling strike by the Bakery Workers union.

But while that company is out of business, and most of its 18,500 employees have lost their jobs, the bankruptcy court has been overseeing an auction of its various brands as part of the liquidation process.

The new snack company, Hostess Brands LLC, was purchased for $410 million by private equity groups Apollo Group (APOL) and Metropoulos & Co. It also bought five of the closed bakeries as part of their bid.

Metropoulos' other food holdings include Pabst Blue Ribbon beer, and in the past have included Chef Boyardee canned pasta, Bumble Bee seafood, PAM cooking spray and Gulden's Mustard, all of which it eventually sold to ConAgra Foods Inc (CAG, Fortune 500).

First Published: June 24, 2013: 7:33 AM ET

05.33 | 0 komentar | Read More

Controversial T-shirt destroys business

The company behind an offensive t-shirt controversy earlier this year has shut down and let go its remaining employees.

NEW YORK (CNNMoney)

Fierce public backlash brought down Solid Gold Bomb, which made headlines in March for offering shirts that said "Keep Calm and Rape a Lot." The company closed its doors last week and let go its remaining three employees.

Company founder Michael Fowler is now swimming in debt and he says he's still getting death threats, including one caller who hounded him for months insisting on meeting him in person.

"It's my fault, and I paid dearly," Fowler said. "My life's work. Twenty years I've been building this up."

Related: The story behind the 'Carry On and Rape Her' shirts

The downfall is the result of an Internet uproar that occurred in March, when someone browsing Amazon's marketplace discovered shirts with messages of misogyny and murder. The shirts were parodies of the old British slogan "Keep Calm and Carry On."

Amazon (AMZN, Fortune 500) immediately pulled down all of Fowler's products, choking off his company's main avenue for sales.

At the time, Fowler issued an apology and explained that the shirts never really existed. The images of offensive shirts were the result of a computer program that automatically generated random phrases and images.

Fowler had used the program to expand his company catalog from 1,000 designs to more than 10 million, casual shirts with pithy one-liners like, "I mustache you a question." The vast number of shirts for sale rocketed him to the top of Amazon searches. By printing on demand, he reduced the risk of unsold inventory.

The apology fell short. Fowler was flooded with spiteful emails. Orders plummeted from 400 a day to 100. It didn't get much better when Amazon finally let him back online three weeks later, Fowler said, because it erased his online history, hurting his search rankings.

Fowler, an American who lives with his wife and three children in Melbourne, Australia, stopped paying himself a salary. He was forced to fire half of his employees -- an art director, print master and customer service representative. He injected $35,000 of his own money into the company.

"I certainly didn't give up. I didn't throw in the towel. I tried," Fowler said.

The company was so financially weak that when it ran into shipping problems this month, the entire operation collapsed. Fowler notified his operations manager and two employees by phone, thanking them for sticking around. He said he couldn't afford the $4,000 plane ticket to see them and deliver the news in person.

Related: Best places to launch

Cristy McCullough, his operations manager in Massachusetts, is helping sell off what's left of the company: computers, shipping equipment, phone systems and shirt printing machines. The idea is to split the proceeds between those who remained. So far they've raised a few thousand dollars. Fowler expects to owe $125,000 to his shipping partner and clothing supplier.

"I'll be paying this for a long time," he said.

But he isn't done running a small business. Fowler has already set up another dye house, and he's vowed to start printing T-shirts again -- this time with a friend in Melbourne.

"I've got to do something. I've got three kids and my wife isn't employed," he said. "Hey, I'm an entrepreneur. I'm already on the hustle trying to build it again."

First Published: June 24, 2013: 8:22 AM ET

05.33 | 0 komentar | Read More

Next week you'll pay more for a Starbucks latte

Starbucks, next Tuesday, is raising U.S. prices by an average of 1% for its brewed drinks to help offset an increase in business costs.

NEW YORK (CNNMoney)

The price hike will affect beverages including Starbucks' (SBUX, Fortune 500) brewed coffee, tea, latte and espresso drinks, said spokesman Jim Olson. While drink prices vary from city to city, Olson said that customers in some markets could pay about 10 cents more for a tall brewed coffee.

Still, less than one-third of all Starbucks beverages will be affected by the new prices, he added.

For instance, prices will not increase at a vast majority of Starbucks stores for its venti and grande-sized brewed coffees, or for its Frappuccino drinks.

This is the first price hike in nearly two years for the coffee chain, according to Olson, who said the rising cost of labor, raw materials and rent triggered the move.

Still, there is one way that customers can always shave a few cents off their coffee tab: Starbucks offers a 10 cent discount on any drink when customers bring in a personal tumbler or use a reuseable Starbucks cup.

First Published: June 21, 2013: 5:01 PM ET

05.33 | 0 komentar | Read More

LeBron will never be an endorsement star like Jordan

NEW YORK (CNNMoney)

He may be a great basketball player, but endorsement experts say that off the court, he's still no Michael Jordan.

James has $39 million in annual endorsements, more than any other active athlete, according to the Fortunate 50 rankings compiled by Sports Illustrated and Fortune magazines. But Michael Jordan is still bringing in a whopping $80 million in endorsement deals a year - even though he hasn't set foot on a court in a decade.

Many fans simply don't like James. He was heavily criticized when he moved to the Miami Heat as a free agent in 2010, and his popularity plunged according to various surveys.

Related: Heat's winning streak sparks sales rush

"That was the first time we saw such a precipitous drop in appeal without something criminal happening," said Henry Shafer, executive vice president of the Q Scores Company, which conducts one such survey.

James' likability is on par with that of Mickey Rourke and rocker Gene Simmons of KISS - which isn't great company - according to a competing survey by the Celebrity DBI index.

"It certainly doesn't hurt that [James] has won two championships in a row. But it's going to be really hard for him to match what Jordan delivered on camera and how he resonated with fans," said Darin David, director of the sports consulting group at The Marketing Arm, which arranges deals between advertisers and and celebrities.

Related: Under Armour's crew of star athletes

David and others experts say that pitchmen like Jordan and Peyton Manning have a special on-screen persona that most athletes will never have, no matter how many championship titles they might accumulate.

Both Jordan and James have deals with Nike (NKE, Fortune 500), which pays out billions in endorsement deals to athletes around the world. James also has deals with top consumer companies like Coca-Cola (KO, Fortune 500), McDonald's (MCD, Fortune 500) and Samsung. But commercials starring James get relatively limited air time, even during the NBA playoffs.

Related: Coming out could boost Jason Collins' endorsements

Shafer, from the Q Scores Company, said that while James has started to slowly win back sports fans, he hasn't made a lot of progress with the general public.

"It's not just about winning. It's about how you interact with the public," he said.

First Published: June 21, 2013: 4:28 PM ET

05.33 | 0 komentar | Read More

Pending law would block Tesla sales in New York

Elon Musk and Tesla are battling dealership associations throughout the country for the right to sell vehicles directly to customers.

NEW YORK (CNNMoney)

Tesla said in a statement Friday that if the bill passes, it will be "put out of business in New York," with all employees in the state losing their jobs.

"The bottom line for New York consumers and New York suppliers is that if this bill passes, special interests in Albany will once again have gotten their way while robbing New Yorkers of choices in the marketplace," Tesla (TSLA) said.

The current legislative session was originally scheduled to conclude on Thursday, but work continued in both the Senate and Assembly on Friday, and it is unclear when it will end.

Related: Tesla unveils 90-second battery-pack swap

CEO Elon Musk took to Twitter Friday as legislators were considering the bill, urging New Yorkers to call their representatives and ask them to vote it down.

The New York State Automobile Dealers Association did not respond to a request for comment, though the association is also urging supporters to contact their representatives, saying the pending bill is "designed to maintain the health and vitality of New York's retail automobile industry."

Tesla has tangled with dealership associations in a number of states in its effort to sell its Model S electric sedan directly to consumers rather than using franchised car dealers.

General Motors (GM, Fortune 500), Ford (F, Fortune 500), Toyota (TM) and others don't sell cars to customers. They sell to independently owned and operated dealers or distributors who, in turn, sell them to the public, usually after some negotiation over the final price.

Tesla's showrooms, by contrast, are owned and operated by the company. Most are in shopping malls, with only enough cars on hand for display and test drives. Every Tesla car sells at full sticker price, and service on the cars is performed at separate garages owned by Tesla.

Auto sales are mostly regulated at the state level. In some states, Tesla has had little or no problem opening its stores. In others, auto dealers and their allies in government have resisted Tesla's plans, fearing they could ultimately undermine the system of franchised dealers.

Earlier this month, legislators in Texas failed to vote on a bill backed by Tesla that would have loosened the state's restriction on dealerships owned by automakers. Virginia rejected the electric-car maker's dealership application earlier this year.

Dealers argue that the traditional franchise system is best for car buyers because it preserves competition between dealerships selling the same products.

But Tesla worries that traditional franchised dealers, who also have gasoline cars to sell, won't represent its products properly or aggressively enough. Dealers pressed to make quick sales will likely be tempted to steer customers to gasoline cars rather than explain the benefits of the Model S, Diarmuid O'Connell, Tesla's vice president for business development, told CNNMoney last month.

"From the beginning, Tesla's goal has been to catalyze the market for electric vehicles, and selling through intermediaries at this stage of the company will not work," Tesla said Friday.

First Published: June 21, 2013: 6:31 PM ET

05.33 | 0 komentar | Read More

Next week you'll pay more for a Starbucks latte

Starbucks, next Tuesday, is raising U.S. prices by an average of 1% for its brewed drinks to help offset an increase in business costs.

NEW YORK (CNNMoney)

The price hike will affect beverages including Starbucks' (SBUX, Fortune 500) brewed coffee, tea, latte and espresso drinks, said spokesman Jim Olson. While drink prices vary from city to city, Olson said that customers in some markets could pay about 10 cents more for a tall brewed coffee.

Still, less than one-third of all Starbucks beverages will be affected by the new prices, he added.

For instance, prices will not increase at a vast majority of Starbucks stores for its venti and grande-sized brewed coffees, or for its Frappuccino drinks.

This is the first price hike in nearly two years for the coffee chain, according to Olson, who said the rising cost of labor, raw materials and rent triggered the move.

Still, there is one way that customers can always shave a few cents off their coffee tab: Starbucks offers a 10 cent discount on any drink when customers bring in a personal tumbler or use a reuseable Starbucks cup.

First Published: June 21, 2013: 5:01 PM ET

05.32 | 0 komentar | Read More

LeBron will never be an endorsement star like Jordan

NEW YORK (CNNMoney)

He may be a great basketball player, but endorsement experts say that off the court, he's still no Michael Jordan.

James has $39 million in annual endorsements, more than any other active athlete, according to the Fortunate 50 rankings compiled by Sports Illustrated and Fortune magazines. But Michael Jordan is still bringing in a whopping $80 million in endorsement deals a year - even though he hasn't set foot on a court in a decade.

Many fans simply don't like James. He was heavily criticized when he moved to the Miami Heat as a free agent in 2010, and his popularity plunged according to various surveys.

Related: Heat's winning streak sparks sales rush

"That was the first time we saw such a precipitous drop in appeal without something criminal happening," said Henry Shafer, executive vice president of the Q Scores Company, which conducts one such survey.

James' likability is on par with that of Mickey Rourke and rocker Gene Simmons of KISS - which isn't great company - according to a competing survey by the Celebrity DBI index.

"It certainly doesn't hurt that [James] has won two championships in a row. But it's going to be really hard for him to match what Jordan delivered on camera and how he resonated with fans," said Darin David, director of the sports consulting group at The Marketing Arm, which arranges deals between advertisers and and celebrities.

Related: Under Armour's crew of star athletes

David and others experts say that pitchmen like Jordan and Peyton Manning have a special on-screen persona that most athletes will never have, no matter how many championship titles they might accumulate.

Both Jordan and James have deals with Nike (NKE, Fortune 500), which pays out billions in endorsement deals to athletes around the world. James also has deals with top consumer companies like Coca-Cola (KO, Fortune 500), McDonald's (MCD, Fortune 500) and Samsung. But commercials starring James get relatively limited air time, even during the NBA playoffs.

Related: Coming out could boost Jason Collins' endorsements

Shafer, from the Q Scores Company, said that while James has started to slowly win back sports fans, he hasn't made a lot of progress with the general public.

"It's not just about winning. It's about how you interact with the public," he said.

First Published: June 21, 2013: 4:28 PM ET

05.32 | 0 komentar | Read More

Pending law would block Tesla sales in New York

Elon Musk and Tesla are battling dealership associations throughout the country for the right to sell vehicles directly to customers.

NEW YORK (CNNMoney)

Tesla said in a statement Friday that if the bill passes, it will be "put out of business in New York," with all employees in the state losing their jobs.

"The bottom line for New York consumers and New York suppliers is that if this bill passes, special interests in Albany will once again have gotten their way while robbing New Yorkers of choices in the marketplace," Tesla (TSLA) said.

The current legislative session was originally scheduled to conclude on Thursday, but work continued in both the Senate and Assembly on Friday, and it is unclear when it will end.

Related: Tesla unveils 90-second battery-pack swap

CEO Elon Musk took to Twitter Friday as legislators were considering the bill, urging New Yorkers to call their representatives and ask them to vote it down.

The New York State Automobile Dealers Association did not respond to a request for comment, though the association is also urging supporters to contact their representatives, saying the pending bill is "designed to maintain the health and vitality of New York's retail automobile industry."

Tesla has tangled with dealership associations in a number of states in its effort to sell its Model S electric sedan directly to consumers rather than using franchised car dealers.

General Motors (GM, Fortune 500), Ford (F, Fortune 500), Toyota (TM) and others don't sell cars to customers. They sell to independently owned and operated dealers or distributors who, in turn, sell them to the public, usually after some negotiation over the final price.

Tesla's showrooms, by contrast, are owned and operated by the company. Most are in shopping malls, with only enough cars on hand for display and test drives. Every Tesla car sells at full sticker price, and service on the cars is performed at separate garages owned by Tesla.

Auto sales are mostly regulated at the state level. In some states, Tesla has had little or no problem opening its stores. In others, auto dealers and their allies in government have resisted Tesla's plans, fearing they could ultimately undermine the system of franchised dealers.

Earlier this month, legislators in Texas failed to vote on a bill backed by Tesla that would have loosened the state's restriction on dealerships owned by automakers. Virginia rejected the electric-car maker's dealership application earlier this year.

Dealers argue that the traditional franchise system is best for car buyers because it preserves competition between dealerships selling the same products.

But Tesla worries that traditional franchised dealers, who also have gasoline cars to sell, won't represent its products properly or aggressively enough. Dealers pressed to make quick sales will likely be tempted to steer customers to gasoline cars rather than explain the benefits of the Model S, Diarmuid O'Connell, Tesla's vice president for business development, told CNNMoney last month.

"From the beginning, Tesla's goal has been to catalyze the market for electric vehicles, and selling through intermediaries at this stage of the company will not work," Tesla said Friday.

First Published: June 21, 2013: 6:31 PM ET

05.32 | 0 komentar | Read More

Americans were much more charitable last year

NEW YORK (CNNMoney)

Donations for everything from disaster relief to animal rescue totaled an estimated $316.2 billion in 2012, up 3.5% from the previous year, according to the Giving USA foundation and Indiana University's Lilly Family School of Philanthropy.

"Historically, giving is a lagging indicator of the economy," said Heisman. "The positive data in Giving USA's report indicates Americans may be feeling more confident about the global economy."

Giving by individual donors climbed almost 4% to $228.9 billion, while corporate donations rose by 12.2% to $18.2 billion, the report said.

Related: Most charitable states in America

Despite slow economic growth of 1.8% and a high unemployment rate of 9%, there were signs of optimism in the economy that helped to boost donations. Among them: gains on Wall Street, an increase in home values, signs the jobs picture is improving, and slight growth in personal disposable income, according to the report.

Superstorm Sandy was one of the biggest relief efforts of the year; raising a total of $223 million between October and December of 2012. Corporations donated $131 million of that amount, an amount that was not as generous as expected, says Robert Evans a member of the editorial review board for Giving USA. That was mainly due to the perception that the homes affected by Hurricane Sandy were second homes and vacation homes, he said.

"During Hurricane Katrina there was much more support," said Evans. "We would have expected 50% more in terms of total dollars given."

Related: Where your donation dollars go

The foundation noted that giving last year may have been impacted by the uncertainty surrounding the fate of the charitable tax deduction ahead of the Jan. 1, 2013 fiscal cliff deadline. President Obama had proposed in the past to reduce the deduction.

With $101.5 billion in donations, religious organizations received the largest share of charitable contributions in 2012, accounting for one-third of all donations. However, religious donations are starting to shrink.

"At one point, religious donations accounted for almost 60% of all donations," said Eileen Heisman, CEO of the National Philanthropic Trust. "It's been a precipitous drop."

Giving to education, including two-year universities, K-12 schools and 4-year colleges, saw a 7% increase between 2011 and 2012 to $41.3 billion. Donations to environmental and animal organizations rose almost 7% to $8.3 billion in donations in 2012.

Heisman believes environmental concerns among the Baby Boomers and younger generations are responsible for the increase in environmental giving.

"The next generation is extremely concerned about sustainability, recycling, and global warming."

First Published: June 21, 2013: 6:01 AM ET

05.32 | 0 komentar | Read More

Don't panic! Selling now could hurt your nest egg

Investing in the stock market is inherently volatile, but it's also the best way for retirement savers to build up nest eggs large enough to last decades.

NEW YORK (CNNMoney)

Thursday's sell off, Wall Street's single worst day of the year, may have you thinking it's best to pull out of stocks and wait it out in safer investments like bonds, money market funds or even cash. But financial advisers say not so fast: Staying the course is a much smarter move.

Yes, investing in the stock market is inherently volatile, but it's also the best way for retirement savers to build up nest eggs large enough to last decades. From the European debt crisis to changing Fed policy, there are always going to be events that send stocks plunging, but reacting to those headlines is the wrong long-term strategy, said Stuart Ritter, a financial planner and vice president at T. Rowe Price Investment Services.

Related: Ben Bernanke's power over your money

After all, retirement savings are built up over decades of investing and daily market fluctuations (even those as drastic as Thursday's plunge) will ultimately be overshadowed by long-term market gains. So even though the Dow Jones Industrial Average shed nearly 4% in the last two days, it still remains up nearly 13% year to date. The S&P 500 and Nasdaq are also up more than 10% from last year.

"The action that may feel emotionally comforting is often the one that sabotages your financial goals in the long term," Ritter said. "We've had situations like this one before. The people who prospered through the 2008 downturn are the people who did not react to the daily gyrations of the market."

Related: Stop panicking, ignore the Fed!

Indeed, a recent study by Fidelity Investments found that 401(k) investors who continually invested over the last 10 years saw their average account balances grow by an average annual increase of nearly 17% from $46,000 in 2003 to more than $200,000 in the first quarter of this year. While helped by added contributions, the balances were also boosted by the stock market rebound, said John Sweeney, executive vice president of retirement and investing strategies for Fidelity.

In addition, many retirement accounts are invested in a mix of assets based on your age, which means that the effects on your portfolio may look different from the headlines.

Either way, pulling out of the market now will hurt, rather than help, your retirement savings since you will be selling your investments at a low.

"You've already experienced today's downturn. Getting out now doesn't change it," Ritter said. "If you lock in the losses, you're making it permanent. "

First Published: June 21, 2013: 6:06 AM ET

05.32 | 0 komentar | Read More

Micro-apartments: The anti-McMansions

NEW YORK (CNNMoney)

Typically ranging between 180 and 300 square-feet, these tiny apartments are becoming increasingly popular among the young-and-single set and even some retirees, seeking affordable places to live in the nation's costliest cities.

Nowhere is the micro trend hotter than in Seattle. More than 40 micro-apartment developments have been built in the city in the past three years, according to Jim Potter, chairman of Kauri Group, a Seattle-based developer. Many of these apartment buildings offer shared patios, roof decks and even communal kitchens. (Zoning laws in Seattle allow up to eight apartments to share one kitchen).

Other emerging micro-apartment hotspots include San Francisco, Boston, Providence, R.I., New York and Portland, Ore., where Kauri is building a new complex.

The key selling point is affordability. In Seattle, 250-square-foot apartments rent for under $800 a month, almost half the average $1,400 people pay for newly built studios of 400 square feet or more in the city, according to Potter.

Related: Inside the ultimate man cave

In San Francisco, Patrick Kennedy of micro-apartment developer Panoramic Interests, rents 295-square-foot apartments for $1,600, about a third less than the going rate for newly built studios in the area.

Living in tiny spaces requires big lifestyle adjustments. When Aron Susman moved his commercial real estate information company, TheSquareFoot, from Houston to New York, the 30-year-old bachelor went from a 1,700-square-foot apartment to just over 200 square feet.

"At first, it was shocking," he said. "I had a closet in Houston that, I swear, was bigger than my whole apartment now. It causes you to go out and do things. I spend less time in my apartment."

He is able to walk to his office where he usually works late. During the evenings, he often meets up with friends, most of whom live in the neighborhood.

Related: Cities with the best parks

New York has always been known for its shoebox-sized apartments. But its mayor, Michael Bloomberg, wants to add to the stock of small apartments. He recently sponsored a micro-apartment design competition aimed at combating the city's shortage of affordable places for its one- and two-person households.

In some Manhattan neighborhoods, upwards of 70% of households consist of singles or couples, according to Eric Bunge, a partner in of nARCHITECTS.

The city recently awarded Bunge's firm a contract to develop a complex of 55 micro-apartments ranging from 250- to 370-square feet. When it opens in 2015, it will be the first micro-apartment complex built in Manhattan since 1955, when the city banned new studios of under 400 square feet. Rents will probably be in the low $2,000s and the building will offer communal living areas, including dens, a rooftop garden, and a fitness room, he said.

Related: 10 big, booming cities

Many modern micro-apartments have innovative, efficient designs marked by flexible features. Dining room tables turn into beds. Excess vertical spaces hold shelves. Banquette lids open for storage space.

Panaromic's recently completed 23-unit building includes a "Murphy Bed" that flips up and leaves a dining table behind that can seat five people, a work area, storage, exterior space, and Internet access -- all within 295 square feet. The kitchens have refrigerators, dishwashers and microwaves, but no conventional ovens.

Related 10 most polluted cities

Somewhat surprisingly, many seniors have moved into the new micro-apartments, said Potter. These empty-nesters seek to downsize from their full-sized homes, looking for an affordable, less high maintenance option.

No matter what your age, micro-apartments can take some getting used to -- unless you're already living in tight quarters. "We had a Japanese newspaper come and write a story about our apartments," said Kennedy. "Their conclusion was 'This is not a small space.'"

First Published: June 21, 2013: 6:21 AM ET

05.32 | 0 komentar | Read More

Same-sex couples face housing discrimination

Same-sex couples are being discriminated against when seeking rental apartments online, according to the first government study to examine discrimination based on sexual orientation.

NEW YORK (CNNMoney)

When inquiring about rental apartments via e-mail, gay and lesbian couples received almost 16% fewer responses than their heterosexual counterparts, according to a study by the Department of Housing and Urban Development (HUD).

The research was based on 6,833 e-mail correspondence tests in 50 U.S. cities from June 2011 through October 2011 and was the first nationwide look at housing discrimination based on sexual orientation.

Researchers sent two e-mails to landlords who were advertising one-bedroom apartments and inquired about the unit's availability. One email was sent from a heterosexual couple referring to a "husband" or "wife" by name, while the other e-mail was sent from a gay or lesbian couple and used the term "partner," again providing both people's names.

Related: Marriage ruling could save same-sex couples thousands

In some cases, landlords would tell heterosexual couples that the apartment was still available, but tell same-sex couples that it was off the market. In other instances, the landlord would just not respond to the same-sex couples.

"Anti-LGBT discrimination isn't always about being blatantly kicked out; sometimes, it's about quietly being kept out," said GLAAD spokesman Wilson Cruz. "Despite the tremendous progress we've made ... LGBT couples and families still face discriminatory hurdles in our society, even when trying to secure the most basic of human needs like housing."

Related: Out of the closet on Wall Street

The federal Fair Housing Act is meant to ensure equal access to housing, but does not offer protections with regard to sexual orientation. Twenty states and the District of Columbia have enacted legislation to prohibit discrimination against gays and lesbians. Surprisingly, the HUD study found that the states with same-sex protections actually had slightly higher rates of discrimination than those without.

"States that do have protections need to make sure their laws are being complied with," said Melissa Rothstein, deputy director of the Equal Rights Center, a nonprofit focused on LGBT rights. "Members of the LGBT community need to know what their rights are, and what resources are available to them once their rights are violated."

The study only looked at e-mail interactions, and emphasized that estimates of discrimination may be conservative. HUD said there could be even more discriminatory practices against gays and lesbians once the parties interact in person.

First Published: June 20, 2013: 6:44 AM ET

05.32 | 0 komentar | Read More

3 ways to improve Apple's Mac OS X

NEW YORK (CNNMoney)

Mavericks' claims are workmanlike, but clearly beneficial. It's faster, has an improved notifications system and offers more flexibility over how you use a second monitor. It has a better browser and a better calendar app and an overhauled finder user interface.

But even if these features end up as improvements, there's nothing that feels especially new. In fact, the main purpose of Mavericks seems to be fixing many of the things Apple (AAPL, Fortune 500) got wrong with the last release, Mountain Lion.

That has become par for the course over the past six years. Since the release of OS X Leopard in 2007, the biggest change to the Macintosh operating system has been a general effort to bring more of the iOS experience to OS X, including the cutting and pasting of iOS's Notification Center.

For the most part, Apple's lack of bold moves with OS X hasn't been a problem, since OS X has continued to be an excellent operating system.

Related story: With iOS 7, Apple gets its mojo back

But if Apple wants to innovate -- as it generally aspires to do -- what's left for the company when it comes to OS X? Will we ever again the see the introduction of a feature as crucial as, say, Time Machine?

Maybe. Maybe not. But there are still a few possibilities:

Merge with iOS: Tech nerds have long speculated and openly wished for the day that OS X would become one with Apple's mobile platform, iOS. Those fires were fueled by the introduction of iOS-esque features in the last two iterations of OS X.

Like Microsoft (MSFT, Fortune 500) is attempting with Windows 8, merging the two operating systems would not only create a sense of excitement and newness, but could let the combined platform cherry pick the best features from both and allow Apple to devote more of its energies to one environment. But it could also lead to a confused, inconsistent experience, as the young Windows 8 still sometimes lends itself to.

And this might all be a moot point anyhow, since Apple CEO Tim Cook has long insisted that the two platforms will remain just that: two platforms.

Update the user interface: Even if Apple doesn't make two operating systems into one, it could eventually give the next version of OS X (or OS 11, or whatever it may be called), a visual makeover.

The need to update the look of OS X isn't as badly needed as it had been with iOS. But with the increase of apps and services coming from Apple, a refresh of the user interface could help unify all of those new features.

Expand into iCloud: Google (GOOG, Fortune 500) is quietly proving with its Chrome OS that an operating system built largely around cloud and Web services is a viable computing solution for the future.

Apple has a cloud platform of its own in iCloud. But even with the announcement of new iCloud-centric features at its Worldwide Developers Conference earlier this month (including a password manager and iWork in the cloud), the technology remains flawed and underutilized.

If Apple continues to put more of its core services in the cloud and give more developers the tools to integrate iCloud technology, OS X can become a more flexible operating system that's less dependent on any single device and better linked to its mobile counterpart.

But for now, the only excitement surrounding the new OS X Mavericks will be to see if the new Maps app can actually route us to our favorite restaurants without landing us in the middle of a lake.

First Published: June 20, 2013: 6:51 AM ET

05.32 | 0 komentar | Read More

Fewer Americans to travel for July 4 holiday

It might not seem like it if you get stuck in July 4 traffic but there are expected to about 300,000 fewer people on the roads over the holiday weekend.

NEW YORK (CNNMoney)

This year July 4 falls on a Thursday, giving travelers a four-day holiday weekend, rather than the five-day weekend they had last year. AAA projects that 40.8 million Americans will travel at least 50 miles from home in the July 3 to July 7 period., down about 300,000 from those who made a trip last year.

But the travel group says economic conditions are also keeping people closer to home.

"Economic growth is not robust enough to offset the impact of the sequester and the effect of the end of the payroll tax cut on American families," said AAA CEO Robert Darbelnet.

In addition to slightly fewer people hitting the road, the group estimates the average trip will fall to 613 miles, down 110 miles from last year. But travelers are expected to spend about the same amount as in 2012 - about $747.

Related: Want a cheap flight? Book 49 days ahead

Air travel is expected to tick up by about 10,000 flyers to 3.07 million. So the bulk in the travel decline will come from motorists, who make up 84% of those traveling.

Related: Gas spending and prices by state

Those drivers could be paying more at the pump. AAA says that the current national average for a gallon of self-serve regular gas is $3.60, up 11 cents from a year ago. But where people live and where they're traveling could make a big difference in those year-over-year comparisons due to wide variations in various regional wholesale markets.

Related: American Airlines plans to pack more people into its planes

"If they live near the Great Lakes, they may see the cheapest pump prices since mid-winter," said Tom Kloza, chief oil analyst at GasBuddy. "If they reside in California or the Pacific Northwest, they may see the highest street prices since last October."

First Published: June 20, 2013: 7:43 AM ET

05.32 | 0 komentar | Read More

Myanmar: Tales from the last business frontier

NEW YORK (CNNMoney)

Take Coca-Cola. Taking advantage of newly eased sanctions on the former military dictatorship, Coke (KO, Fortune 500) cut the ribbon earlier this month on the first bottling plant the company has had in the country since before World War II. But in rolling out its product, Coke found itself with a dilemma it seldom has: A lot of people didn't know what Coke was.

"We had to do taste tests for the first time in years," said Petro Kacur, a Coke spokesman. "Everybody's had a Coke, except if you happen to be from Myanmar."

There are just two remaining countries in the world where one can't legally obtain a Coke: North Korea and Cuba.

With its foray into the once off-limits country, Coke joins the ranks of General Electric (GE, Fortune 500), Procter & Gamble (PG, Fortune 500), Colgate-Palmolive (CL, Fortune 500), Yum! Brands (YUM, Fortune 500), Chevron (CVX, Fortune 500), DuPont (DD, Fortune 500), Caterpillar (CAT, Fortune 500) and a host of other companies with operations or franchises in the country.

U.S. exports to Myanmar are growing rapidly, following last year's move by the Obama administration to ease sanctions on the country after it transitioned to a more democratic government. Exports to the country in the first four months of this year have already outpaced the total for all of 2012, according to the State Department office in Yangon (a place the State Department still calls "Rangoon." The U.S. government also refers to the entire country as Burma, its colonial name under the British Empire.).

Related: Pittsburgh becomes expat hot spot

Companies worldwide are eager to tap into the country's 55 million consumers, and the nation is considered one of the last great frontier markets. But like Coke, many companies are finding the operating environment a bit of an eye-opener.

Ford (F, Fortune 500) seized on a potential opportunity after noticing many vehicles on the roads -- where people drive on the right, like in the U.S. -- that were set up for a British-style system, where people drive on the left. In practice, that means buses would stop, open the door, and let passengers out into oncoming traffic.

There's an extra catch: The brakes on the buses don't work so well. To remedy the problem, there's a guy who hangs on to the back of the bus, inserting blocks under the wheels when it stops to prevent it from rolling backwards.

"That's just flat-out dangerous," David Westerman, Ford's director of export operations for Asia Pacific, said from his Bangkok office. "We saw that and we knew there were good opportunities in the marketplace."

Ford is planning to open a major showroom and service center in early August. It will be the first major automaker to sell new vehicles in a country where 40% of what's on the road is more than 20 years old.

For financial services giant Visa (V, Fortune 500), the challenge is one of infrastructure.

Related: Google's Eric Schmidt makes rare visit to Myanmar

The company began processing retail transactions in the country earlier this year. Its services are primarily aimed at retailers who want to accept Visa cards from foreigners, or Myanmar business operators who want to buy products abroad or online and need a digital currency. (There are no plans for a credit card yet. The concept of formal credit --such as mortgages or car loans -- doesn't really exist in Myanmar.)

To process payments, though, Visa needs phone lines, which are "rare, expensive, and don't always work," said Peter Maher, Visa's Singapore-based country manager for Southeast Asia.

How expensive? Until recently, a mobile phone SIM card -- the type you can get in the United Sates for $10 -- went for around $2,500. That explains why, in a world where people in even the poorest nations seem to have mobile phones, only 2% of those in Myanmar do.

Visa could use Internet or Wi-Fi connections to transmit data, but the situation there is even more dire. Less than 1% of the country has Internet access.

Still, Visa says it is confident that the nation's infrastructure will develop rapidly. That should bring with it the ability to use cards like Visa -- and, hopefully, the economic activity to generate money for people to buy stuff with.

First Published: June 18, 2013: 6:17 AM ET

05.33 | 0 komentar | Read More

Ex-trader charged with Libor rigging in U.K.

Former UBS and Citigroup trader Tom Hayes is the first person charged in the U.K. in connection with the Libor scandal.

LONDON (CNNMoney)

The Serious Fraud Office, which prosecutes cases of complex fraud, said Hayes has been charged by police Tuesday with eight counts of conspiracy to defraud following its year-long investigation into the manipulation by banks and brokers of the London Interbank Borrowed Rate, or Libor.

Libor is a collection of rates set by a panel and used as a benchmark for securities worth trillions of dollars globally.

Hayes, 33, was one of three people arrested by officers from the fraud office and City of London police in December 2012. He will appear at Westminster Magistrates' Court in London on June 20, although the case is likely to be referred to a higher court.

Hayes was indicted by American authorities in December, accused of conspiracy, fraud and a price-fixing violation. U.S. authorities said at the time that they would seek his extradition. The Justice Department also indicted Roger Darin, a Swiss trader who worked at UBS.

UBS (UBS) agreed to pay $1.5 billion in December in a settlement with authorities in the U.S., the U.K. and Switzerland over Libor rigging. The bank agreed to a non-prosecution deal with the U.S. Department of Justice covering all its subsidiaries except UBS Securities Japan, which pleaded guilty to one count of wire fraud.

Case documents showed that the conspiracy to rig rates went far beyond any one trader. The investigation revealed extensive misconduct stretching from 2001 to 2010 involving at least 45 UBS staff -- including senior managers, who sought to influence rates to benefit the bank's trading positions and make it look stronger during the financial crisis.

UBS also colluded with other firms, making corrupt payments to outside brokers worth £15,000 per quarter over a period of 18 months to reward their assistance in fixing rates.

Related: Cases against UBS traders just the tip of the iceberg

Barclays and Royal Bank of Scotland have also reached settlements over Libor rigging.

In addition to those firms, more than a dozen other banks involved in setting Libor are being investigated, and further penalties are expected. Among those facing scrutiny are Citigroup (C, Fortune 500), Deutsche Bank (DB), JPMorgan (JPM, Fortune 500) and HSBC (HBC).

The SFO said Tuesday its investigation into the Libor case continues.

Singapore's central bank last week punished 20 banks, including UBS, RBS and Dutch bank ING, (ING) for failing to prevent 133 traders from attempting to manipulate Sibor -- Singapore's version of Libor -- and foreign exchange benchmarks during a four-year period.

It said it found no evidence of criminal behavior during a year-long investigation triggered by the Libor-rigging scandal, but said the traders made several attempts to influence prices inappropriately between 2007 and 2011.

At UBS, employees attempted to manipulate rates on hundreds of occasions, during some periods "on nearly a daily basis," the Justice Department said in December. The case documents include numerous excerpts from e-mails and online chats in which bank staffers discuss the scheme.

"mate yur getting bloody good at this libor game," one broker told a UBS trader in a chat message. "think of me when yur on yur yacht in monaco wont yu[?]"

Hayes hasn't released any public statement on the allegations against him, though in a text message to the Wall Street Journal in January, he reportedly said: "this goes much much higher than me."

First Published: June 18, 2013: 6:38 AM ET

05.33 | 0 komentar | Read More

Chrysler faces deadline to recall Jeeps

NEW YORK (CNNMoney)

Chrysler stated last week that it will not comply with the recall demand, arguing that the vehicles are safe.

The automaker also claimed the National Highway Traffic Safety Administration's analysis is faulty and that most of the deaths involved high-speed accidents in which modifications to the gas tank of the vehicles would not have made a difference.

But if it does not comply with the recall, it faces the prospect of high-profile public hearings with testimony from both car safety advocates who have pushed for the recall, as well as the parents of children who burned to death in fires. Experts say the hearing will cause Chrysler's reputation to take a hit, even if it is able to avoid the recall.

"It's a very risky gamble," said Michelle Krebs, senior analyst at Edmunds.com. "Maybe Chrysler will be proven right. But it's still an uphill battle for Chrysler in the perception of quality and this could set it back."

The J.D. Power & Associates survey of car owners found that the number of problems reported by Jeep owners has fallen by about a third between 2008 and 2012. It has moved up in approval rankings from dead last out of 36 brands in 2008 to 23rd out of 34 last year.

But an online survey by Kelley Blue Book last week found 64% of those answering the survey would not consider any vehicle from an automaker who fights a recall.

There are also liability risks in numerous wrongful death suits if Chrysler agrees with the recall. NHTSA says there have been least 37 accidents that caused fires and resulted in at least 51 deaths.

Related: How valid are car brand rankings?

The automaker's statement says it stands willing to fix any vehicle shown to have a defect or be unsafe, usually without any prompting from NHTSA or customers in many cases. It said it has been talking to NHTSA about the risk posed by these vehicles since 2010.

"All of us remain committed to continue working with NHTSA to provide information confirming the safety of these vehicles," said Chrysler CEO Sergio Marchionne in his statement last week.

Since it rejected the call for a Jeep recall, it has announced a series of smaller recalls of other vehicles. But it says there is no need to redesign the vehicles to move the gas tanks in front of the rear axle, or to put a metal shield over the plastic tank, as the Center for Auto Safety, a public safety group, has advocated.

Related: GM recalling 194,000 SUVs

"These Jeep vehicles have proven to be safe in operation and the company's analysis shows the incidents at the focus of this request occur less than one time for every million years of vehicle operation," said a white paper from the company released the day it announced it wouldn't comply with the recall.

After the expected public hearing by NHTSA, the agency could either agree with Chrysler's argument and drop the request for a recall or order an involuntary recall. If the automaker again refused to issue a recall, NHTSA could go to federal court to force a recall, though that process could take years.

There have been 17,000 recalls involving over 500 million vehicles since NHTSA started the recall process in 1966. It is rare that automakers challenge NHTSA on a recall and even rarer that one wins. Chrysler -- under different management than it is now -- was the last automaker to win such a challenge when it fought a 1996 recall of 91,000 cars in a dispute over its seat belt system.

First Published: June 18, 2013: 7:37 AM ET

05.33 | 0 komentar | Read More