Five years later, TARP price tag hits $40 billion

The cost of the federal bailout from 2008 is down to about $40 billion.

WASHINGTON (CNNMoney)

That's a lot less than what many once feared the Troubled Asset Relief Program would cost.

But the report warned that the controversial bailout -- of banks, the housing market, and automakers -- has left a stain on the financial sector: the expectation of federal help if they get into trouble in the future.

Bailed out companies may now believe they can "play by their own set of rules without regard for consequences," wrote special inspector general Christy Romero wrote.

Related: Tim Geithner's new book coming in May

Congress grudgingly passed the federal bailout in 2008, originally to save the financial system at the height of the financial crisis. Federal officials were given the power to spend as much as $700 billion. No more than $475 billion was spent, and most of it has been paid back, according to the report.

The report attributed much of the $40 billion TARP cost from losses or write-offs on parts of bailouts of the auto industry and American International Group (AIG, Fortune 500).

While $50 billion went to General Motors (GM, Fortune 500), $12 billion is considered written off or lost, the report said. Of the $68 billion that went to AIG, $13.5 billion is considered lost.

Treasury has spent $7.8 billion of the federal bailout helping taxpayers with underwater mortgages get cheaper loans. The report said $1.2 billion has been lost on loan modifications for borrowers who later defaulted anyway.

As of March 31, 323,000, or 28%, of borrowers with modified mortgages, re-defaulted on their mortgages and nearly 100,000 more were deemed "at risk" of default, the report found.

First Published: April 30, 2014: 12:17 AM ET

15.30 | 0 komentar | Read More

Wal-Mart to offer auto insurance

Besides buying groceries, you'll also be able to buy auto insurance through Wal-Mart.

NEW YORK (CNNMoney)

The nation's largest retailer said Wednesday it is partnering with AutoInsurance.com to provide customers with "a one stop shop" for their auto insurance needs.

Wal-Mart will not sell insurance, but its customers can click through a link on walmart.com, or go to autoinsurance.com directly to get competing quotes from several car insurance providers such as Progressive (PGR, Fortune 500), Esurance and Safeco to choose the policy and price that best fit their needs. Wal-Mart will also promote the service via displays in its stores.

The service is already available in eight states -- Arkansas, Louisiana, Mississippi, Missouri, Oklahoma, Pennsylvania, Tennessee and Texas. Wal-Mart (WMT, Fortune 500) plans a nationwide rollout in the coming months.

Related: Ex-Wal-Mart CEO Duke retired with $140 million

Wal-Mart said the service will save customers money. The company cited a pilot program survey it conducted last year in Pennsylvania, where customers who purchased policies from autoinsurance.com on average said they saved $1,168 a year.

"We are always looking for ways to reduce complexity, increase transparency, and give everyday low prices to Wal-Mart shoppers," said Daniel Eckert, Wal-Mart's senior vice-president of services.

Eckert also stressed the simplicity of the site, which is able to retrieve information from a customer's current policy and automatically fill in most of the necessary coverage information.

Wal-Mart said the service originated from talks with Tranzutary Insurance Solutions, a New Jersey-based insurance broker, that runs the site.

The announcement is the latest in Wal-Mart's aggressive move into financial services recently.

Just earlier this month, the giant retailer announced it was entering the money transfer business to compete with the likes of Western Union (WU, Fortune 500) and MoneyGram (MGI). Through the service, customers can transfer money to each other within Wal-Mart stores around the country for a fee that is relatively lower than competitors.

Related: What's my real living wage?

Much of Wal-Mart's financial service offerings are targeted at people who do not have access to bank accounts, because they either cannot afford the high fees, or do not have stable enough jobs to be able to keep a minimum balance.

Wal-Mart also offers check cashing and prepaid cards at its stores. In addition, it has partnered with American Express (AXP, Fortune 500)to offer debit and checking accounts that don't require a minimum balance, or monthly maintenance fee.

This is also Wal-Mart's way of countering a slump in sales in recent months. In February, Wal-Mart reported a drop in profit and same store sales and also lowered its outlook for the year on concerns about higher taxes and health care costs.

First Published: April 30, 2014: 12:20 AM ET

15.30 | 0 komentar | Read More

Microsoft's Xbox One to be sold in China for first time

Microsoft will start selling the Xbox One to Chinese consumers in September.

HONG KONG (CNNMoney)

China had implemented a blanket restriction on the manufacture and sale of consoles and games in 2000, denying gaming companies access to the world's most populous nation. Chinese officials had cited worries over violent content and the potential for moral decay in explaining the ban.

China announced earlier this year that it would lift the ban, allowing companies to sell consoles across the country, opening a potentially lucrative new market for manufacturers including Sony (SNE) and Nintendo.

Xbox executive Yusuf Mehdi wrote in a blog post that Microsoft is "incredibly excited" to bring the console to China.

"Launching Xbox One in China is a significant milestone for us and for the industry, and it's a step forward in our vision to deliver the best games and entertainment experiences to more fans around the world," he said.

While the ban was in place, Chinese gamers keen to try consoles were forced to rely the black market to find the latest hardware. Controversial game titles -- which are still frequently banned by the government -- were also available from underground suppliers.

The restrictions didn't affect the wide proliferation of PC, online and mobile gaming in China, all of which flourished in the absence of console-based entertainment.

Related story: The Xbox One is a $499 PC for your living room

Microsoft (MSFT, Fortune 500) said it was working with Chinese partner BesTV New Media on the project, and operating a joint venture in the Shanghai Free Trade Zone. While most video game consoles are already manufactured by contractors based in China, the new rule requires foreign companies to operate in the free trade zone.

Shanghai's free trade zone -- 29 square kilometers in area -- is an experiment in promoting trade, expanding foreign investment access and liberalizing the financial sector, all of which are tightly controlled and regulated by the government.

First Published: April 30, 2014: 2:39 AM ET

15.30 | 0 komentar | Read More

For entrepreneurs, cycling is the new golf

In Southern California, Michael Marckx spearheads a group of cyclists who regularly ride and network.

NEW YORK (CNNMoney)

"Unlike golf, cycling is also a great equalizer," said Andy Clarke, president of the League of American Bicyclists. "You're the same as the person riding next to you. So it makes people more approachable. "

Entrepreneurs also gravitate toward cycling because it's a better way to stay in shape, said Clarke. It's also less time consuming and relatively less expensive.

"The trend is gaining momentum in bustling business centers," he said. "But it's also taking root in the heartland of the country, in places like northwest Arkansas."

Related: Meet America's oldest bike maker

In 2007, Jason Kayzar founded the Midwest Cycling Network for those who enjoyed the outdoors but wanted a change from 18 holes.

"I wanted to draw decision-makers, business owners, c-level executives who are in charge of their own schedules," said Kayzar, the founder and president of Milwaukee, Wis.-based MC2, a telecom service provider.

The rides started with just a few people he knew. But today, the group has 500 members and meets once a month for a two-hour, 35-mile ride. It usually attracts between 10 and 40 people -- architects, web designers, builders and small business owners -- most from the the Milwaukee area, but some from cities like Madison and Chicago.

Kayzar actually struck one of his firm's most lucrative deals on a ride five years ago when he signed one of the largest scaffolding firms in the country as a client.

While Kayzar said there's a little chit-chat as they ride (it's legal to ride two abreast in Wisconsin), the big chance to network comes at the end when they stop at a Mexican restaurant for chips and salsa and a round of drinks.

"Unlike golf, we're not committing to a couple of hours and all kinds of expenses just to network," said Kayzar. "This is a free gathering, very informal and you're done in 2 hours."

Because the monthly rides are mostly male dominated, Kayzar recently launched a second group in the hopes of attracting more women.

"It's half the speed and half the distance," he said.

Related: Hot startup ideas

There's no escaping golf's influence in the Southern California city of Carlsbad. It's home to Callaway (ELY), the world's largest maker of golf clubs, Cobra Golf, a top maker of golfing equipment, and a number of top-notch golf courses.

But even here, many entrepreneurs are choosing cycling over golf.

"It's a better cardio workout. You can get a great ride done in one to two hours as opposed to hours on a golf course," said Michael Marckx, CEO of eyewear company Spy Optic. "And you can actively network with more people."

Marckx is the driving force behind a cycling group of 60 people who gather every Tuesday and Thursday for a 30-mile trek.

"We get CEOs, entrepreneurs, and division heads of biotech and pharmaceutical companies joining in," he said. "Cycling is absolutely becoming the go-to activity for 40- and 50-year-olds who find it's a better compliment to their lives."

Sometimes the rides result in business deals and new hires. On a January ride, Marckx met a fellow cyclist who he hired to run performance marketing at Spy Optic.

Related: This startup thrives on a four-day workweek

Brad Swope recently broke several ribs in a cycling accident, but he's itching to rejoin his cycling group in Louisville, Ky., which he says is a "phenomenal cycling town."

"You see people from all professions -- doctors, lawyers, firemen, business folks -- getting together for rides," said Swope, a marketing director.

Swope said many riders in his group have ditched golf for cycling because it keeps them more active and is easier on the wallet.

And sometimes a ride can turn into a networking bonanza. It was on a group ride a decade ago that Swope befriended John Schnatter, founder of Papa John's (PZZA). Their conversations during the rides eventually inspired Swope to enter the restaurant industry. He and his wife are now partners in a local chain called Wild Eggs.

"It's ironic that I gave him cycling tips years ago and he would give me tips about the restaurant industry," said Swope. "Cycling can be very effective for networking."

First Published: April 29, 2014: 5:56 AM ET

17.42 | 0 komentar | Read More

Big Data knows you're broke

Data brokers are selling lists of financially vulnerable consumers, including seniors and those who are deep in debt.

NEW YORK (CNNMoney)

Whether you're deep in debt or a senior on a fixed income, data brokers can track and sell your information to payday lenders, debt consolidation firms and other marketers.

The problem is the information can be used by businesses or scammers that prey on the poor and the elderly, lawmakers say.

For example, lists of frequent payday loan borrowers could be targeted for other high cost loans -- ones that could sink them even further into debt.

And lists of elderly consumers could be used by scammers posing as telemarketers.

Related: What your zip code reveals about you

How do data brokers get this information? By tracking the websites you browse, the credit cards you apply for and the surveys you take, among other sources.

One data broker, List Connection, markets a slice of the data called: "The Help Needed -- I'm 90 Days Behind with Bills."

List Connection's website says the leads from it are "excellent prospects for payday loan, secured credit card, debt consolidation, subprime credit, or financial assistance offers."

Ken Wood, vice president of management at List Connection, said the list is for firms trying to help people with bad credit.

Senator John "Jay" Rockefeller of West Virginia, called out this list in a February letter to NextMark, a website that advertises a variety of data broker lists. Rockefeller, who heads the Senate Commerce Committee, is sponsoring legislation that would allow consumers to see and correct the information collected about them and to opt out of the lists entirely.

Another list Rockefeller cited featured leads for sweepstakes offers.

The data broker, Multimedia Lists, markets it as a list featuring "highly responsive opportunity seekers" who are ripe for promotional offers, sweepstakes, contests and other "opportunities to make easy money."

Related: Big Data is secretly scoring you

Multimedia Lists did not respond to phone and email requests for comment.

Under the Fair Credit Reporting Act, marketers aren't allowed to use your sensitive credit information, like your credit score, unless it's to make a "firm" offer of credit, say for a credit card or auto loan.

But there is a lot of other information -- like whether or not you're facing foreclosure or get denied for a credit card -- that data brokers argue is fair game.

While data broker's lists are often used for harmless purposes, like sending catalogs, the growing use of all of this personal information is raising red flags among privacy advocates.

"We shouldn't use our most private information for just any marketing purpose," said Ed Mierzwinski, consumer program director at U.S. Public Interest Research Group. "We need additional protections."

PIRG is calling for increased transparency regarding who is buying our information and how it is being used.

Some large data brokers say they already impose controls on how clients use their data. Epsilon, for example, says it has strict use guidelines and ensures that its clients comply.

Meanwhile, the Direct Marketing Association said it expects data brokers and marketers to adhere to its set of ethical guidelines and reports egregious offenders to the Federal Trade Commission.

Related: Find out what Big Data knows about you

The organization noted that lists of financially vulnerable customers can be used for positive purposes as well, such as when a nonprofit is seeking people in need of services.

Still major industry players like Acxiom acknowledge that more could be done to protect consumers.

"Data could help people in financial stress or be used to harm them," said Acxiom's chief privacy officer Jennifer Barrett Glasgow at the conference. "We're getting into a very complex world where the ultimate use of the data... is where the controls need to be."

First Published: April 29, 2014: 4:55 AM ET

17.42 | 0 komentar | Read More

Stocks: Emerging from a month-long funk?

Click chart for in-depth premarket data.

NEW YORK (CNNMoney)

But U.S. stock futures were pointing higher Tuesday, lending some hope that the final days of April could see markets regain lost ground.

Earnings continue to dominate the agenda, with Sprint (S, Fortune 500) reporting before the opening bell. eBay (EBAY, Fortune 500) and Twitter (TWTR) are among the major companies reporting after the close.

Related: Fear & Greed Index

Shares in Finnish firm Nokia (NOK) surged 8% premarket after the company announced a new CEO and plans to spend billions on dividends and share buybacks. Nokia has just finalized the sale of its handset division to Microsoft (MSFT, Fortune 500), allowing it to focus on its networks business.

Share in BP (BP) were edging up by roughly 1% in London after the latest quarterly results from the oil and gas firm impressed investors.

In economic news, the S&P/Case-Shiller home price index will be published at 9 a.m. ET. The Conference Board will publish its consumer confidence index at 10 a.m. ET.

Related: CNNMoney's Tech30

U.S. stocks ended the day mixed Monday. The Dow and S&P 500 closed slightly higher while the Nasdaq ended the day flat. The Nasdaq has declined by roughly 3% since the start of April.

European markets were mostly rising in morning trading, though the gains were relatively small. Russian stocks rose and the ruble firmed against the dollar as investors shrugged off the latest round of U.S. and EU sanctions imposed this week over the crisis in Ukraine.

The British pound was pushing up, trading at its highest levels since late 2008, as GDP data showed U.K. growth accelerated to 0.8% in the first quarter. Compared with the same period last year, the economy grew by 3.1%.

Asian markets closed with mixed results. The two major indexes in China moved up while the Nikkei in Japan declined by 1%.

First Published: April 29, 2014: 5:24 AM ET

17.42 | 0 komentar | Read More

Ukraine crisis: See full sanctions list

Anatoliy Sidorov, right, is a commander in the Russian military.

LONDON (CNNMoney)

The U.S. has also targeted 17 Russian companies with sanctions.

Here is a full list of the individuals and companies affected since the March sanctions began:

Individuals

Vladislav Surkov: Presidential Aide to Putin

Sergey Glazyev: Presidential Adviser to Putin

Leonid Slutsky: Russian State Duma Deputy

Andrei Klishas: Member of the Russian Federation Council

Valentina Matviyenko: Head of the Federation Council

Dmitry Rogozin: Deputy Prime Minister of Russia

Yelena Mizulina: Russian State Duma Deputy

Sergey Aksyonov: Self-claimed Prime Minister of Crimea

Vladimir Konstantinov: Speaker of the Crimean Parliament

Viktor Medvedchuk: Leader of Ukranian Choice

Viktor Yanukovych: Former President of Ukraine

Viktor Ozerov: Security and Defense Committee chairman of Russian Federation Council

Vladimir Dzhabarov: Deputy Chairman of the International Affairs Committee of Russian Federation Council

Evgeni Bushmin: Deputy Speaker of the Russian Federation Council

Nikolai Ryzhkov: Senator in the Russian Federation Council

Sergei Zheleznyak: Deputy Speaker of the Russian State Duma

Sergei Mironov: Leader of the Fair Russia Faction in the Russian State Duma

Aleksandr Totoonov: Member of Committee on Culture, Science, and Information with Russian Federation Council

Oleg Panteleev: First Deputy Chairman of the Russian committee on Parliamentary Issues

Sergey Naryshkin: Member of the National Security Council of the Russian Federation

Victor Ivanov: Member of the Security Council of the Russian Federation

Igor Sergun: Head, Russia's military intelligence service and Deputy Chief of the General Staff

Sergei Ivanov: Chief of Staff of the Presidential Executive Office

Alexi Gromov: First Deputy Chief of Staff of the Presidential Executive Office

Andrei Fursenko: Aide to the President of the Russian Federation

Vladimir Yakunin: Board Chairman, Russian Railways

Vladimir Kozhin: Putin's Head of Administration, overseeing 60,000 staff and more than 100 enterprises

Gennady Timchenko: Founder of Gunvor, one of the world's largest independent oil and gas trading companies

Arkady Rotenberg: Made billions of dollars from construction contracts from Gazprom and the Sochi Winter Olympics

Boris Rotenberg: Brother and business partner of Arkady Rotenberg

Yuri Kovalchuk: Largest single shareholder of Bank Rossiya (see below)

Rustam Temirgaliev: Deputy Chairman of the Council of Ministers of Crimea

Deniz Berezovskiy: Defected from Ukrainian Navy to Crimean Armed Forces

Aleksei Chaliy: Became Mayor of Sevastopol in Crimea in February

Pyotr Zima: Appointed head of the Crimean Security Service by Aksyonov

Yuriy Zherebtsov: Counsellor of the Speaker of the Crimean parliament

Sergey Tsekov: Vice Speaker of the Crimean parliament

Aleksandr Vitko: Commander, Russian Black Sea Fleet

Anatoliy Sidorov: Commander, Russia's Western Military District

Aleksandr Galkin: Commander, Russia's Southern Military District

Dmitry Kiselyov: Head of the Russian Federal State news agency

Alexander Nosatov: Deputy Commander, Black Sea Fleet

Valery Kulikov: Deputy Commander Black Sea Fleet

Mikhail Malyshev: Chair of the Crimea Electoral Commission

Valery Medvedev: Chair of the Sevastopol Electoral Commission

Igor Turchenyuk: Commander of the Russian forces in Crimea

Elena Muzulina: Deputy in the Russian State Duma

Oleg Belavantsev: Appointed as Russia's Presidential Envoy to Crimea by Putin

Sergei Chemezov: On the board of Directors for Rosneft, Russia's state-owned oil company

Dmitry Kozak: Deputy Prime Minister of the Russian Federation

Evgeniy Murov: Director, Russia's Federal Protective Service

Aleksei Pushkov: Chairman of the Russian State Duma Committee on International Affairs.

Igor Sechin: President and Chairman, Management Board for Rosneft

Vyacheslav Volodin: First Deputy Chief of Staff of the Presidential Executive Office

Banks and companies

Bank Rossiya: The 17th largest bank in Russia, controlled by Yuri Kovalchuk

InvestCapitalBank: Controlled by Rotenberg brothers

SMP Bank: Controlled by Rotenberg brothers

SGM Group: A gas pipeline construction company owned or controlled by Arkady Rotenberg

Bank Rossiya is the 17th largest bank in Russia.

Volga Group: Owned by Gennady Timchenko

Transoil: A freight operator that transports oil, owned or controlled by the Volga Group or Timchenko

Aquanika: A mineral water and soft drink company, owned or controlled by the Volga Group or Timchenko

Sakhatrans: A transportation company, owned or controlled by the Volga Group or Timchenko

Avia Group: Provides ground services at Moscow airport, owned or controlled by Volga Group or Timchenko

Avia Group Nord: Provides services for corporate aviation at St Petersburg airport, owned or controlled by Volga Group or Timchenko

Stroytransgaz Holding: A construction holding company, owned or controlled by the Volga Group or Timchenko

Stroytransgaz Group: A construction group, owned or controlled by the Volga Group or Timchenko

Stroytransgaz OJSC: An electricity construction company, owned or controlled by the Volga Group or Timchenko

Stroytransgaz-M LLC: A construction company focused on oil, gas and petrochemicals, owned or controlled by the Volga Group or Timchenko

Stroytransgaz LLC: An infrastructure construction company, owned or controlled by the Volga Group or Timchenko

The Limited Liability Company Investment Company Abros: Owned or controlled by Bank Rossiya

CJSC Zest: Owned or controlled by Bank Rossiya

JSB Sobinbank: Owned or controlled by Bank Rossiya

First Published: April 29, 2014: 3:32 AM ET

15.30 | 0 komentar | Read More

Univision airs concerns about Comcast deal

Univision's Randy Falco, pictured in 2011.

NEW YORK (CNNMoney)

Falco stopped short of opposing the merger outright, but expressed sharp concerns about the potential combination of the two companies. As government regulators undertake a review of the merger, he said he hopes that "the right questions are asked" and "that the right protections are put in place, particularly for Univision."

Univision is the country's biggest Spanish language broadcaster. Comcast's NBCUniversal division owns the No. 2 Spanish language broadcaster, Telemundo.

Comcast refuted Falco's comments on Monday evening, citing what it called a "great record of working with programmers from the largest to the smallest" and an "extraordinary, long-standing commitment to Hispanic programming."

Comcast (CMCSA, Fortune 500) and Time Warner Cable (TWC, Fortune 500) announced their plan to merge in February. The two companies are awaiting government approval.

Falco's comments — which seemed at least partially scripted, and came during an earnings conference call with investors — were striking because big companies whose channels compete with Comcast-owned channels have mostly kept their concerns about the merger to themselves.

One exception has been Netflix (NFLX), which depends on broadband providers like Netflix for access to subscribers and negotiates with Comcast and other media companies for access to TV shows. Last week Netflix said it feared that the merger would give Comcast "anti-competitive leverage."

Falco raised a similar complaint on Monday.

"You've already heard that the new Comcast will be the dominant cable and high-speed broadband provider in markets with 30% of all U.S. cable households," Falco said on the call. "What you may not know is that the new Comcast will serve markets with 91% of all Hispanic households and be the top TV distributor in 19 out of the top 20 Hispanic markets. That gives this new company staggering influence over Hispanic consumers."

He went on to describe how one of Univision's upstart cable channels, Univision Deportes Network, is being carried by "all of the top distributors" except Comcast.

"Either Comcast doesn't understand that soccer is a passion point for Hispanics or they don't support competitors who have competing services," he said. "My fear is that the latter is the case and this type of anti-competitive conduct would continue."

D'Arcy Rudnay, Comcast's chief communications officer, responded by saying that Comcast is "proud to be the nation's largest provider of Latino and multicultural television packages." She said Comcast carries "more than 60 Latino networks in both Spanish and English."

The combined Comcast-Time Warner Cable "will not have undue power in negotiating with programming networks, and we have a great record of working with programmers from the largest to the smallest," Rudnay added. She said that "through the transaction with Time Warner Cable, we are committed to bringing high-quality Hispanic content to millions of additional Americans."

First Published: April 28, 2014: 7:59 PM ET

15.30 | 0 komentar | Read More

Netflix to speed up for Verizon customers

Netflix strikes deal with Verizon to allow faster speeds.

NEW YORK (CNNMoney)

The two companies said Monday that they struck a connection deal, the second Netflix has made with an Internet provider aimed at improving streaming speeds for customers.

"We have reached an interconnect arrangement with Verizon that we hope will improve performance for customers over the coming months," a Netflix spokesman said.

Netflix (NFLX) said it will pay Verizon (VZ, Fortune 500) for a direct connection to its network, but neither company would confirm details of the deal.

Internet service providers have been at odds with Netflix, arguing the company should pay up for the huge bandwidth its streaming videos hog. Netflix CEO Reed Hastings has said those kind of payment demands are an abuse of market power. But the company has agreed anyways to pay both Verizon and Comcast for preferential treatment.

Related: Netflix speeds lag for Verizon users amid dispute

The connection deal with Comcast (CMCSA, Fortune 500) in which Netflix pays for a direct connection to the Internet provider's network, was inked earlier this year. That deal paid off, resulting in a nearly 50% jump in streaming speeds for Comcast customers.

Federal regulators are currently considering rules that would go even further, allowing Internet providers to create a "fast lane" for certain websites and services. It's up to the Federal Communications Commission to decide the particulars and its members will vote on the proposed rules on May 15 before putting them out for public comment.

First Published: April 28, 2014: 8:27 PM ET

15.30 | 0 komentar | Read More

Minimum wage: Congress stalls, states act

NEW YORK (CNNMoney)

But the issue will be revisited in coming days as the Senate takes up a bill to increase it to $10.10 an hour. And President Obama and congressional Democrats plan to push the issue on the campaign trail ahead of the November mid-term elections.

In the meantime, many states have made moves to raise their own minimum wages over the next year.

Related: Why some low-wage workers aren't protected

Generally, workers covered under the Fair Labor and Standards Act must be paid at least $7.25 an hour if the state's own minimum wage is set below that level or if there is no state minimum at all.

But that's not an issue in 21 states plus the District of Columbia, which already have higher minimum wages.

That number will soon grow to 25 states, since lawmakers in Maryland, Minnesota, Delaware and West Virginia have recently approved minimum wage increases.

Maryland will raise its wage floor to $8 by Jan. 1, 2015; $8.25 by July 1, 2015; then by 50-cent increments until it hits $10.10 by July 1, 2018.

Minnesota's $7.25 minimum will increase to $9.50 by 2016 and be indexed to inflation starting in 2018.

In Delaware, the minimum wage will hit $7.75, effective June 1; then it will go to $8.25 by June of 2015.

And in West Virginia, the minimum will increase gradually to $8.75 by 2016.

Other states and the District of Columbia have also recently approved increases to their wage floors, which already top $7.25.

Connecticut, for instance, will gradually raise its minimum from $8.70 today to $10.10 by 2017.

New York's minimum is set to rise from $8 currently to $8.75 by the end of this year, then climb to $9 by the end of 2015.

California's $8 minimum wage will increase to $9, effective July 1. Then it will rise to $10 by Jan. 1, 2016.

The District of Columbia, meanwhile, is hiking its $8.25 minimum to $9.50 by July, then increasing it gradually to $11.50 by 2016 and indexing it to inflation thereafter.

D.C. joins 12 states that also will index their minimum wage to inflation, according to the National Employment Law Project.

Many cities have been getting in on the act too.

According to NELP, Seattle, San Francisco, New York, San Diego, Oakland, Portland, Maine, and Las Cruces, New Mexico, are among cities currently trying to raise their minimum wages.

But at least one state wants to put the kibosh on such efforts. Oklahoma just passed a law banning cities and towns from raising their local minimum wages.

First Published: April 28, 2014: 6:20 AM ET

17.42 | 0 komentar | Read More

Google Now and Cortana are the future, not Siri

NEW YORK (CNNMoney)

Based on the investments Big Tech companies are making, the next tech wave will likely be powered by contextual and predictive technologies.

In plain terms, contextual and predictive technologies are designed to get our devices to do exactly what we want without us having to ask over and over again.

Microsoft's (MSFT, Fortune 500) new Cortana feature for Windows Phone can dive into a handful of apps and anticipate when and where you'll need certain bits of critical information. For example, Cortana can offer up your flight info and boarding pass as you travel to the airport. It can then prominently present that information to you without you doing anything. In some cases, it could even automatically relay information to another app.

What's particularly interesting about Cortana is how much attention Microsoft has given it. Cortana was the star of the show at this year's Microsoft Build developers conference, overshadowing substantial Windows and Windows Phone updates.

Microsoft is not alone, either.

Related: Meet Cortana, Microsoft's Siri

Google (GOOGL) offers a similar service called "Google Now" for Android devices. Earlier this year, Yahoo! (YHOO, Fortune 500)paid a cool $80 million for Aviate, an Android app that changes the look of users' homescreens based on where they are, what time of day it is, and what they're doing. Nest's thermostats learn your habits and the most efficient way to manage the temperature in your house.

The lack of contextual services is also what makes Apple's (AAPL, Fortune 500) Siri feature more of a gimmick than a digital assistant. Apple has spent years polishing its voice recognition technology, which works pretty well. But aside from things like dictating text messages, setting alarms, and checking the weather, there's not much to it that is actually useful.

Why all this attention to context and predictions? As new categories of technology, including wearable devices, grow more popular, services such as Cortana and Google Now will only rise in importance.

Contextual and predictive technologies, if done right, will streamline and improve the process of interacting with a phone, watch, headset, television and cars. Smarter software inside a car could help keep our focus on the road. Embedded within a video streaming service, it could determine each person's likes and dislikes in a room and recommend something everyone will want to watch. And it could mean less interaction with devices that have limited physical space, particularly watches or Google Glass-like wearable displays.

That's why Google prominently mentioned Google Now features when introducing its forthcoming Android Wear platform for smartwatches. With Google Now, Android-powered watches have the potential to determine where you are, and to a certain extent, what you're doing. They could also predict what you're most likely to go tapping and swiping for and then display that on the watch's screen.

Related: Windows 8 will soon be more like Windows 7

How well this will work in real life remains to be seen. But without the predictive powers of Google Now, any Android watch would have struggled to be more than a clone of Samsung's woeful Gear smartwatches that force you to swipe and swipe and swipe to accomplish anything.

As cool as this not-so-distant future sounds, the thought of technology constantly tracking you and collecting data can seem a bit dystopic. The rise of these services will require a certain level of caution and responsibility from their creators.

Marcus Ash, the program manager for Microsoft's Cortana project, stressed how important it was to approach the issues of data collection and privacy with extreme sensitivity.

Cortana, for example, has a built-in dashboard where users can see exactly what the software is tracking and the the types of data it is saving. Ash says that outside apps have no access to any personal data collected, and the user has complete control over changing or removing any settings or collected data.

"When it comes to new technologies like this, you only get one chance to win people over," said Ash. "And if you mess that up, it's a hard thing to recover from."

So far, these services have avoided any of the major pitfalls that could detract from mass adoption of these technologies. And that's a good thing, because without them, technology would be much more boring right now.

First Published: April 28, 2014: 6:24 AM ET

17.42 | 0 komentar | Read More

NFL Cheerleaders: We're not even making minimum wage

A lawsuit against the Oakland Raiders was the first of several this year filed by cheerleaders against their NFL teams.

NEW YORK (CNNMoney)

Several current and former cheerleaders are suing their NFL employers over pay.

Three separate suits filed against the Oakland Raiders, Buffalo Bills and Cincinnati Bengals describe contracts that don't guarantee the minimum wage and claim the cheerleaders are vastly underpaid.

The suits say cheerleaders also aren't compensated for equipment they must buy, practices they must attend and community appearances they must make. Cheerleaders must meet exacting hair, makeup and uniform standards set by the team and keep up with physical fitness requirements, according to court documents.

One former cheerleader for the Cincinnati Bengals, Alexa Brenneman, said she was paid no more than $90 for each game and worked 10 games. Including $75 for a public appearance, she said she was paid $855 for the 2013 season and worked "well over 300 hours a year."

Including the games, practices and other events, she calculated her hourly wage at $2.85.

Team spokesman Jack Brennan responded, "The Ben-Gals cheerleading program has long been a program run by former cheerleaders and has enjoyed broad support in the community and by members of the squad." The team's attorneys filed documents in federal court which argued Brenneman "has been paid all wages allegedly due" under state and federal law.

The case against the Raiders, which was filed in January, is tied up in court over a stipulation in the cheerleading contract that disputes be settled in arbitration, said attorney Sharon Vinick, who represents a former Raiders cheerleader named Lacy T.

Related: Cheerleader sues Oakland Raiders over wages

"This is our dream job, we work extremely hard to be on this team and to maintain our spot on this team," Lacy T., who is suing the Raiders, told CNN. The team declined to comment when the suit was filed and didn't respond to a new request for comment last week.

The lawsuit against the Bills, filed by five former members of its cheerleading organization the "Jills," said "each individual Jill provides approximately 20 hours of unpaid labor per week ... This equals 840 hours of unpaid work per woman, per year."

They claimed they were paid only a few hundred dollars for an entire season, which includes about eight regular season games, plus some preseason play.

A spokesman for the Bills said the team was aware of the lawsuit but would not comment on it publicly.

Related: FCC considers scrapping 'blackout rule'

The central legal question in the disputes is if the cheerleaders were properly categorized as independent contractors, who aren't subject to certain regulations like minimum wage, or should have been considered employees.

Several experts said it's likely the cheerleaders weren't paid fairly.

"If it had been my client, I never would have told them to make (the cheerleaders) independent contractors," said Deborah Kelly, a partner at Dickstein Shapiro a law firm that typically represents companies in employment disputes.

"Cheerleaders are certainly employees," said Justin Swartz of Outten & Golden. "They're providing a benefit that directly entertains the fans, just like the players," Swartz, who typically represents people who sue their employers, said.

Stewart Schwab, a dean and professor at Cornell, said the distinction between an employee and contractor is the amount of supervision and direction that the employer provides.

"The more they're required to do and the more they're required to show up at particular times and work with others in a coordinated fashion and listen to a boss, the more they're sounding like employees," Schwab said. "I think there's quite a bit to that suit."

Even if the cheerleaders should have been considered employees, there are are some narrow exceptions to the federal minimum wage, such as for seasonal employees and small businesses.

First Published: April 28, 2014: 6:35 AM ET

17.42 | 0 komentar | Read More

Supreme Court hearing leaves Aereo backer more confident

Click the photo to watch the interview.

NEW YORK (CNNMoney)

Barry Diller, chairman of the media giant IAC, was in the courtroom on Tuesday morning when the Supreme Court heard oral arguments in television broadcasters' high-stakes lawsuit against Aereo. In an interview on CNN's "Reliable Sources," his first since the hearing, he said he left the courthouse feeling more confident that Aereo would win the case.

But, he added wryly, "it means nothing."

"Nobody knows" what the justices will decide, he emphasized. The court is expected to rule on the copyright infringement case by early summer.

Related: Watch the interview on "Reliable Sources"

Using thousands of miniature TV antennas, Aereo scoops up the freely available signals of local stations in cities like New York and Boston. Then it delivers the signals to the smart phones, tablets or computers of paying subscribers.

TV station owners, including major media companies like The Walt Disney Company (DIS, Fortune 500) and CBS (CBS, Fortune 500), say that Aereo is violating copyright by allowing "public performances" of their shows. Aereo says it is only enabling only private screenings, just like off-the-shelf TV antennas do, but with added convenience.

"Aereo is, essentially, simply an antenna device that replaces technologically what you used to have to do — to go up to your rooftop and erect an antenna," Diller said.

Related: What the heck is Aereo, anyway?

He complained about some of the media coverage of the case, calling it "dopey." And he disagreed with Chief Justice John Roberts' depiction of Aereo as a "gimmick."

"Rather than saying it's a gimmick, what we did is constructed a technological advance within law as we understood it," Diller said.

Ever since Aereo was introduced in early 2012, Diller has said that there is "no plan B" if the courts conclude that the service is violating the law. He affirmed that point of view in the "Reliable Sources" interview.

Asked whether he thought Aereo would ultimately lose, he said, "I think there's a 50% chance it'll lose. Of course, yes. Always, I thought that ... But I did not think that it would become this important a moment in the world of technology."

He added that "Aereo, if it's successful, together with other services, may change and give competition to the closed system of satellite or cable. That's what it may do."

Related: Supreme Court quizzes Aereo

Diller said he had never been to the Supreme Court before Tuesday. "They took themselves very seriously when they built that place," he quipped, "and they're keeping it up, in equal majesty and grandeur as the creators."

He said he didn't expect to ever be back in court there.

First Published: April 27, 2014: 1:26 PM ET

15.30 | 0 komentar | Read More

Stocks: Federal Reserve to the rescue?

Click image for more market data.

NEW YORK (CNNMoney)

After a bonanza of corporate report cards dominated recent headlines, investors will likely refocus on the state of the U.S. economy and the Federal Reserve's delicate dance to curtail its stimulus measures without roiling markets.

They will be looking for positive news to turn things around after the market downturn last week and a lot of choppy trading so far this year.

Related: Stocks end week in red as tech gets hammered

The early attention will clearly be on the Fed, which is widely expected to dial back its bond-buying exercise by another $10 billion following a two-day meeting that concludes on Wednesday.

Investors will sift through the central bank's policy statement for clues on when Yellen and Co. might embark on their first interest rate hike, a thought that has spooked some on Wall Street.

The Fed may also hint at whether it believes the recent uptick in economic data will persist. A brightened outlook could signal the central bank will continue, if not accelerate, its exit of quantitative easing.

There's no scheduled press conference following this meeting, meaning Wall Street doesn't need to worry about a repeat of last month when Yellen inadvertently riled the markets by fumbling a question about rate hikes.

But the clearest evidence on the health of the U.S. economy will come later in week in the form of the April jobs report.

Forecasters believe the government will report that U.S. nonfarm payrolls jumped by 204,000 jobs in April, improving upon March's estimate of 192,000. But watch for revisions to prior months and the unemployment rate, which could tick down to 6.6% from 6.7% in March.

Related: Many low-wage workers not protected by minimum wage

Wall Street will also take a look at GDP figures, which offer the broadest view of economic health. Due to weather-related headaches, first-quarter growth is seen tumbling to just 1.3%, down from 2.6% in the fourth quarter.

All of this U.S. economic news could easily be superseded if the situation between Russia and Ukraine intensifies. World markets, especially in Europe, fell on Friday thanks to the deteriorating economic -- not to mention political -- situation in Russia and Ukraine.

Related: The top three risks from the Ukraine crisis

Investors will weigh all of this economic and geopolitical news against more corporate earnings reports. Top consumer brands including Buffalo Wild Wing, (BWLD) Domino's Pizza, (DPZ) Expedia (EXPE)and Sprint (S, Fortune 500) will reveal their latest numbers.

PayPal owner eBay (EBAY, Fortune 500) is also scheduled to hit the earnings stage on Tuesday. The e-commerce behemoth is expected to log per-share earnings of 67 cents, down from 70 cents the year before. EBay recently ended a war with Carl Icahn over the billionaire activist investor's push to spin off PayPal.

The activist investing community will certainly tune in when Herbalife (HLF) logs quarterly results on Monday. The controversial nutrition company, which recently disclosed a probe from the Federal Trade Commission, has been under assault from billionaire hedge fund giant Bill Ackman.

Related: 5 reasons to care about Ackman's Botox bet

Twitter (TWTR) is scheduled to report earnings for the second time as a public company on Tuesday, with analysts expecting the micro-blogging site to narrow its loss to 3 cents per share, down from 8 cents a year ago. Twitter shares have shed a third of their value this year as investors back away from momentum Internet and biotech names.

Related: Investors are done with sexy stocks

Investors will also get a glimpse into the world of energy producers this week. Chevron (CVX, Fortune 500) and ExxonMobil (XOM, Fortune 500), the world's largest public energy company, are scheduled to log results on Thursday and Friday, respectively.

Other notable earning reports on tap for the week include Ameriprise Financial (AMP, Fortune 500), Bristol-Myers Squibb (BMY, Fortune 500), Goodyear Tire & Rubber (GT, Fortune 500), British soccer club Manchester United (MANU)and Standard & Poor's parent company McGraw-Hill Financial (MHFI).

Wall Street will also be digesting the latest real estate data, including an industry group's report on March pending home sales and the S&P Case-Shiller's look at February metro home prices.

As if there isn't already enough on investors' radar, the manufacturing sector will also be in the headlines. The Institute for Supply Management's closely-watched PMI index is expected to show on Thursday that activity improved slightly in April, while the government's factory orders report is set for release on Friday.

First Published: April 27, 2014: 9:20 AM ET

15.30 | 0 komentar | Read More

Pfizer eyes AstraZeneca for $100 billion acquisition

Pfizer is once again pursuing AstraZeneca.

HONG KONG (CNNMoney)

Pfizer (PFE, Fortune 500) said it made contact with AstraZeneca (AZN) on Saturday to renew acquisition discussions, the latest potential pairing in an industry gripped by a new wave of consolidation.

U.S.-based Pfizer said that AstraZeneca declined to engage when contacted over the weekend.

If a transaction is executed, Pfizer said the resulting company would be incorporated in Britain, but headquartered in New York and listed on the NYSE.

"Pfizer is currently considering its options with respect to AstraZeneca," the company said in a statement. "Pfizer believes the strategic, business and financial rationale for a transaction is compelling."

Related: Botox maker gets $46 billion bid

The proposal floated in January would have paid AstraZeneca owners $76.62 per share, a premium of around 30% over the company's stock price at the time.

At that price, the deal would be worth £58.7 billion, or around $98.6 billion.

Pfizer said Monday it remains willing to pay a "significant premium" over the company's closing share price on April 17. AstraZeneca shares rose as much as 15.5% in the first half hour of London trading following Pfizer's disclosure.

Pfizer's decision to go public with its desire could help force AstraZeneca to the negotiating table.

First Published: April 28, 2014: 3:59 AM ET

15.30 | 0 komentar | Read More

Taco Bell tests new restaurant aimed at Chipotle crowd

A rendering of a U.S. Taco Co. shows an eatery that could compete with chains like Chipotle and Qdoba.

NEW YORK (CNNMoney)

How far is Taco Bell branching out? The Mexican Car Bomb isn't even a taco. It's a vanilla shake with Guinness, tequila caramel sauce and chocolate flakes.

U.S. Taco Co is set to open in Huntington Beach, Calif., this summer, with a taco-focused menu -- but not the same tacos you can buy for a buck or two at Taco Bell.

The "Brotherly Love" will be like eating a Philly cheese steak stuffed inside a flour tortilla. The "Winner Winner" adds a southern twist, with crispy chicken and gravy.

The southern California location is a test-run, but it could be the first of dozens across the country, Taco Bell CEO Greg Creed told the Orange County Register.

The eatery won't offer Mexican restaurant favorites like burritos or tortilla chips, and instead it will sell steak fries with tacos.

Related: Why McDonald's is offering free coffee

U.S. Taco Co. aims to fit in with other "fast-casual" chains like Chipotle, Qdoba Mexican Grill and Panera, said Morningstar analyst R.J. Hottovy.

Those chains offer higher quality food at the same speed as a fast-food joint.

U.S. Taco Co's menu will offer steak fries and milk shakes along with tacos.

It's a growing industry so it makes sense that Taco Bell, owned by Yum! Brands (YUM, Fortune 500), would want to enter the field.

"The cost to operate isn't as high as casual restaurants, but they can still charge higher prices. It's very lucrative," Hottovy said.

The tacos will cost $4 at the new restaurant, while most cost under $2 at the nearly 6,000 Taco Bell locations in the United States.

First Published: April 25, 2014: 4:39 PM ET

17.42 | 0 komentar | Read More

Under Armour scores invite to S&P 500

NEW YORK (CNNMoney)

That puts it in the ranks of the largest largest companies on U.S. stock exchanges -- call it the "varsity league" of stocks.

Under Armour (UA) stock has been on the kind of winning streak that the Yankees would envy. It has skyrocketed 850% over the past half-decade. It will replace Beam (BEAM) in the S&P lineup once the alcohol company's $13.6 billion buyout from Japan's Suntory Holdings is completed next week.

Related: Under Armour's crew of star athletes

But the Baltimore-based company didn't get much of a victory lap. Under Armour shares fell on Friday, which is somewhat unusual since new additions to the S&P 500 typically enjoy a bounce as funds that track the broad benchmark buy shares of the companies in the index.

The problem is the athletic-gear maker is a member of the "momentum crowd", a group of stocks that has quickly gone out of style on Wall Street as investors increasingly shift their money into stocks of more boring, but stable companies.

Under Armour experienced that shift first hand on Thursday, when the company's shares tumbled over 7% despite revealing a 73% leap in profits and indicting a lot of optimism about the rest of the year.

Still, the addition to the S&P 500 highlights the ability of Under Armour in recent years to challenge industry leaders Adidas (ADDDF) and Nike (NKE, Fortune 500), the latter of which was added to the even more exclusive Dow Jones industrial average in 2013.

Under Armour sports strong profit margins and impressive growth overseas, where sales surged 92% in the first quarter from the year before. The company has also boosted sales by expanding into new categories, including hunting and golf.

Earlier this year, Under Armour scored a 10-year deal to become the official sports apparel outfitter of Notre Dame's varsity teams. Terms were not disclosed but the blockbuster deal is estimated to be worth around $100 million.

So far Under Armour has been able to weather the storm stemming from the Winter Olympics, where the U.S. speed-skating team blamed the company's high-tech suits for slowing them down in Sochi. The speed-skating team even extended its exclusive contract with Under Armour.

Shares of Under Armour fell over 1.5% on Friday, trimming their 2014 gains to below 15%.

On the other hand, LinkedIn (LNKD) dropped about 5% as the professional social network was snubbed from the S&P 500 despite ample speculation earlier in the week that it would get the bid to join the lineup.

First Published: April 25, 2014: 11:44 AM ET

17.42 | 0 komentar | Read More

Elon Musk's SpaceX will sue U.S. over rocket contract

Musk claims his aerospace company SpaceX was unfairly shut out of a contract for rocket launches he says he can do for less money.

WASHINGTON (CNNMoney)

SpaceX plans to sue the U.S. Air Force to challenge a $7.2 billion contract awarded to a company called United Launch Alliance, Musk said at a news conference on Friday.

The alliance, a venture of Boeing (BA, Fortune 500) and Lockheed Martin (LMT, Fortune 500), is set to use rocket boosters to launch things like GPS satellites into space for the federal government.

The contract, Musk charged, "essentially blocks companies like SpaceX from competing for national security launches."

"This really doesn't seem right to us," added Musk, whose electric car maker Tesla (TSLA) is challenging established auto companies.

The Air Force did not respond to a request for comment.

United Launch Alliance spokeswoman Christa Bell said the contracting process began in 2011. She said the ULA contract was able to deliver $4 billion worth of savings compared to past contracts.

"ULA recognizes the DOD plan to enable competition and is ready and willing to support missions with same assurance that we provide today," Bell said.

Related: Elon Musk's ventures

SpaceX has filed notice that it plans to sue the Air Force, the first step before a federal contract can be challenged. The suit will be filed late Friday or Monday, a spokesman said.

Musk alleged the United Launch Alliance contract is costing taxpayers "billions of dollars, for no reason" because SpaceX could provide launch rockets more inexpensively.

SpaceX has a $1.6 billion contract to launch a dozen unmanned cargo ships to the International Space Station, delivering equipment and supplies.

First Published: April 25, 2014: 3:13 PM ET

17.42 | 0 komentar | Read More

Under Armour scores invite to S&P 500

NEW YORK (CNNMoney)

That puts it in the ranks of the largest largest companies on U.S. stock exchanges -- call it the "varsity league" of stocks.

Under Armour (UA) stock has been on the kind of winning streak that the Yankees would envy. It has skyrocketed 850% over the past half-decade. It will replace Beam (BEAM) in the S&P lineup once the alcohol company's $13.6 billion buyout from Japan's Suntory Holdings is completed next week.

Related: Under Armour's crew of star athletes

But the Baltimore-based company didn't get much of a victory lap. Under Armour shares fell on Friday, which is somewhat unusual since new additions to the S&P 500 typically enjoy a bounce as funds that track the broad benchmark buy shares of the companies in the index.

The problem is the athletic-gear maker is a member of the "momentum crowd", a group of stocks that has quickly gone out of style on Wall Street as investors increasingly shift their money into stocks of more boring, but stable companies.

Under Armour experienced that shift first hand on Thursday, when the company's shares tumbled over 7% despite revealing a 73% leap in profits and indicting a lot of optimism about the rest of the year.

Still, the addition to the S&P 500 highlights the ability of Under Armour in recent years to challenge industry leaders Adidas (ADDDF) and Nike (NKE, Fortune 500), the latter of which was added to the even more exclusive Dow Jones industrial average in 2013.

Under Armour sports strong profit margins and impressive growth overseas, where sales surged 92% in the first quarter from the year before. The company has also boosted sales by expanding into new categories, including hunting and golf.

Earlier this year, Under Armour scored a 10-year deal to become the official sports apparel outfitter of Notre Dame's varsity teams. Terms were not disclosed but the blockbuster deal is estimated to be worth around $100 million.

So far Under Armour has been able to weather the storm stemming from the Winter Olympics, where the U.S. speed-skating team blamed the company's high-tech suits for slowing them down in Sochi. The speed-skating team even extended its exclusive contract with Under Armour.

Shares of Under Armour fell over 1.5% on Friday, trimming their 2014 gains to below 15%.

On the other hand, LinkedIn (LNKD) dropped about 5% as the professional social network was snubbed from the S&P 500 despite ample speculation earlier in the week that it would get the bid to join the lineup.

First Published: April 25, 2014: 11:44 AM ET

15.30 | 0 komentar | Read More

Elon Musk's SpaceX will sue U.S. over rocket contract

Musk claims his aerospace company SpaceX was unfairly shut out of a contract for rocket launches he says he can do for less money.

WASHINGTON (CNNMoney)

SpaceX plans to sue the U.S. Air Force to challenge a $7.2 billion contract awarded to a company called United Launch Alliance, Musk said at a news conference on Friday.

The alliance, a venture of Boeing (BA, Fortune 500) and Lockheed Martin (LMT, Fortune 500), is set to use rocket boosters to launch things like GPS satellites into space for the federal government.

The contract, Musk charged, "essentially blocks companies like SpaceX from competing for national security launches."

"This really doesn't seem right to us," added Musk, whose electric car maker Tesla (TSLA) is challenging established auto companies.

The Air Force did not respond to a request for comment.

United Launch Alliance spokeswoman Christa Bell said the contracting process began in 2011. She said the ULA contract was able to deliver $4 billion worth of savings compared to past contracts.

"ULA recognizes the DOD plan to enable competition and is ready and willing to support missions with same assurance that we provide today," Bell said.

Related: Elon Musk's ventures

SpaceX has filed notice that it plans to sue the Air Force, the first step before a federal contract can be challenged. The suit will be filed late Friday or Monday, a spokesman said.

Musk alleged the United Launch Alliance contract is costing taxpayers "billions of dollars, for no reason" because SpaceX could provide launch rockets more inexpensively.

SpaceX has a $1.6 billion contract to launch a dozen unmanned cargo ships to the International Space Station, delivering equipment and supplies.

First Published: April 25, 2014: 3:13 PM ET

15.30 | 0 komentar | Read More

Taco Bell tests new restaurant aimed at Chipotle crowd

A rendering of a U.S. Taco Co. shows an eatery that could compete with chains like Chipotle and Qdoba.

NEW YORK (CNNMoney)

How far is Taco Bell branching out? The Mexican Car Bomb isn't even a taco. It's a vanilla shake with Guinness, tequila caramel sauce and chocolate flakes.

U.S. Taco Co is set to open in Huntington Beach, Calif., this summer, with a taco-focused menu -- but not the same tacos you can buy for a buck or two at Taco Bell.

The "Brotherly Love" will be like eating a Philly cheese steak stuffed inside a flour tortilla. The "Winner Winner" adds a southern twist, with crispy chicken and gravy.

The southern California location is a test-run, but it could be the first of dozens across the country, Taco Bell CEO Greg Creed told the Orange County Register.

The eatery won't offer Mexican restaurant favorites like burritos or tortilla chips, and instead it will sell steak fries with tacos.

Related: Why McDonald's is offering free coffee

U.S. Taco Co. aims to fit in with other "fast-casual" chains like Chipotle, Qdoba Mexican Grill and Panera, said Morningstar analyst R.J. Hottovy.

Those chains offer higher quality food at the same speed as a fast-food joint.

U.S. Taco Co's menu will offer steak fries and milk shakes along with tacos.

It's a growing industry so it makes sense that Taco Bell, owned by Yum! Brands (YUM, Fortune 500), would want to enter the field.

"The cost to operate isn't as high as casual restaurants, but they can still charge higher prices. It's very lucrative," Hottovy said.

The tacos will cost $4 at the new restaurant, while most cost under $2 at the nearly 6,000 Taco Bell locations in the United States.

First Published: April 25, 2014: 4:39 PM ET

15.30 | 0 komentar | Read More

Under Armour scores invite to S&P 500

NEW YORK (CNNMoney)

That puts it in the ranks of the largest largest companies on U.S. stock exchanges -- call it the "varsity league" of stocks.

Under Armour (UA) stock has been on the kind of winning streak that the Yankees would envy. It has skyrocketed 850% over the past half-decade. It will replace Beam (BEAM) in the S&P lineup once the alcohol company's $13.6 billion buyout from Japan's Suntory Holdings is completed next week.

Related: Under Armour's crew of star athletes

But the Baltimore-based company didn't get much of a victory lap. Under Armour shares fell on Friday, which is somewhat unusual since new additions to the S&P 500 typically enjoy a bounce as funds that track the broad benchmark buy shares of the companies in the index.

The problem is the athletic-gear maker is a member of the "momentum crowd", a group of stocks that has quickly gone out of style on Wall Street as investors increasingly shift their money into stocks of more boring, but stable companies.

Under Armour experienced that shift first hand on Thursday, when the company's shares tumbled over 7% despite revealing a 73% leap in profits and indicting a lot of optimism about the rest of the year.

Still, the addition to the S&P 500 highlights the ability of Under Armour in recent years to challenge industry leaders Adidas (ADDDF) and Nike (NKE, Fortune 500), the latter of which was added to the even more exclusive Dow Jones industrial average in 2013.

Under Armour sports strong profit margins and impressive growth overseas, where sales surged 92% in the first quarter from the year before. The company has also boosted sales by expanding into new categories, including hunting and golf.

Earlier this year, Under Armour scored a 10-year deal to become the official sports apparel outfitter of Notre Dame's varsity teams. Terms were not disclosed but the blockbuster deal is estimated to be worth around $100 million.

So far Under Armour has been able to weather the storm stemming from the Winter Olympics, where the U.S. speed-skating team blamed the company's high-tech suits for slowing them down in Sochi. The speed-skating team even extended its exclusive contract with Under Armour.

Shares of Under Armour fell over 1.5% on Friday, trimming their 2014 gains to below 15%.

On the other hand, LinkedIn (LNKD) dropped about 5% as the professional social network was snubbed from the S&P 500 despite ample speculation earlier in the week that it would get the bid to join the lineup.

First Published: April 25, 2014: 11:44 AM ET

17.42 | 0 komentar | Read More

Taco Bell tests new restaurant aimed at Chipotle crowd

A rendering of a U.S. Taco Co. shows an eatery that could compete with chains like Chipotle and Qdoba.

NEW YORK (CNNMoney)

How far is Taco Bell branching out? The Mexican Car Bomb isn't even a taco. It's a vanilla shake with Guinness, tequila caramel sauce and chocolate flakes.

U.S. Taco Co, set to open in Huntington Beach, Calif., this summer, with a taco-focused menu -- but not the same tacos you can buy for a buck or two at Taco Bell.

The "Brotherly Love" will be like eating a Philly cheese steak stuffed inside a flour tortilla. The "Winner Winner" adds a southern twist, with crispy chicken and gravy.

The southern California location is a test-run, but it could be the first of dozens across the country, Taco Bell CEO Greg Creed told the Orange County Register.

The eatery won't offer Mexican restaurant favorites like burritos or tortilla chips, and instead it will sell steak fries with tacos.

Related: Why McDonald's is offering free coffee

U.S. Taco Co. aims to fit in with other "fast-casual" chains like Chipotle, Qdoba Mexican Grill and Panera, said Morningstar analyst R.J. Hottovy.

Those chains offer higher quality food at the same speed as a fast-food joint.

U.S. Taco Co's menu will offer steak fries and milk shakes along with tacos.

It's a growing industry so it makes sense that Taco Bell, owned by Yum! Brands (YUM, Fortune 500), would want to enter the field.

"The cost to operate isn't as high as casual restaurants, but they can still charge higher prices. It's very lucrative," Hottovy said.

The tacos will cost $4 at the new restaurant, while most cost under $2 at the nearly 6,000 Taco Bell locations in the United States.

First Published: April 25, 2014: 4:39 PM ET

17.42 | 0 komentar | Read More

Elon Musk's SpaceX will sue U.S. over rocket contract

Musk claims his aerospace company SpaceX was unfairly shut out of a contract for rocket launches he says he can do for less money.

WASHINGTON (CNNMoney)

SpaceX plans to sue the U.S. Air Force to challenge a $7.2 billion contract awarded to a company called United Launch Alliance, Musk said at a news conference on Friday.

The alliance, a venture of Boeing (BA, Fortune 500) and Lockheed Martin (LMT, Fortune 500), is set to use rocket boosters to launch things like GPS satellites into space for the federal government.

The contract, Musk charged, "essentially blocks companies like SpaceX from competing for national security launches."

"This really doesn't seem right to us," added Musk, whose electric car maker Tesla (TSLA) is challenging established auto companies.

The Air Force did not respond to a request for comment.

United Launch Alliance spokeswoman Christa Bell said the contracting process began in 2011. She said the ULA contract was able to deliver $4 billion worth of savings compared to past contracts.

"ULA recognizes the DOD plan to enable competition and is ready and willing to support missions with same assurance that we provide today," Bell said.

Related: Elon Musk's ventures

SpaceX has filed notice that it plans to sue the Air Force, the first step before a federal contract can be challenged. The suit will be filed late Friday or Monday, a spokesman said.

Musk alleged the United Launch Alliance contract is costing taxpayers "billions of dollars, for no reason" because SpaceX could provide launch rockets more inexpensively.

SpaceX has a $1.6 billion contract to launch a dozen unmanned cargo ships to the International Space Station, delivering equipment and supplies.

First Published: April 25, 2014: 3:13 PM ET

17.42 | 0 komentar | Read More

Under Armour scores invite to S&P 500

NEW YORK (CNNMoney)

That puts it in the ranks of the largest largest companies on U.S. stock exchanges -- call it the "varsity league" of stocks.

Under Armour (UA) stock has been on the kind of winning streak that the Yankees would envy. It has skyrocketed 850% over the past half-decade. It will replace Beam (BEAM) in the S&P lineup once the alcohol company's $13.6 billion buyout from Japan's Suntory Holdings is completed next week.

Related: Under Armour's crew of star athletes

But the Baltimore-based company didn't get much of a victory lap. Under Armour shares fell on Friday, which is somewhat unusual since new additions to the S&P 500 typically enjoy a bounce as funds that track the broad benchmark buy shares of the companies in the index.

The problem is the athletic-gear maker is a member of the "momentum crowd", a group of stocks that has quickly gone out of style on Wall Street as investors increasingly shift their money into stocks of more boring, but stable companies.

Under Armour experienced that shift first hand on Thursday, when the company's shares tumbled over 7% despite revealing a 73% leap in profits and indicting a lot of optimism about the rest of the year.

Still, the addition to the S&P 500 highlights the ability of Under Armour in recent years to challenge industry leaders Adidas (ADDDF) and Nike (NKE, Fortune 500), the latter of which was added to the even more exclusive Dow Jones industrial average in 2013.

Under Armour sports strong profit margins and impressive growth overseas, where sales surged 92% in the first quarter from the year before. The company has also boosted sales by expanding into new categories, including hunting and golf.

Earlier this year, Under Armour scored a 10-year deal to become the official sports apparel outfitter of Notre Dame's varsity teams. Terms were not disclosed but the blockbuster deal is estimated to be worth around $100 million.

So far Under Armour has been able to weather the storm stemming from the Winter Olympics, where the U.S. speed-skating team blamed the company's high-tech suits for slowing them down in Sochi. The speed-skating team even extended its exclusive contract with Under Armour.

Shares of Under Armour fell over 1.5% on Friday, trimming their 2014 gains to below 15%.

On the other hand, LinkedIn (LNKD) dropped about 5% as the professional social network was snubbed from the S&P 500 despite ample speculation earlier in the week that it would get the bid to join the lineup.

First Published: April 25, 2014: 11:44 AM ET

15.30 | 0 komentar | Read More

Taco Bell tests new restaurant aimed at Chipotle crowd

A rendering of a U.S. Taco Co. shows an eatery that could compete with chains like Chipotle and Qdoba.

NEW YORK (CNNMoney)

How far is Taco Bell branching out? The Mexican Car Bomb isn't even a taco. It's a vanilla shake with Guinness, tequila caramel sauce and chocolate flakes.

U.S. Taco Co, set to open in Huntington Beach, Calif., this summer, with a taco-focused menu -- but not the same tacos you can buy for a buck or two at Taco Bell.

The "Brotherly Love" will be like eating a Philly cheese steak stuffed inside a flour tortilla. The "Winner Winner" adds a southern twist, with crispy chicken and gravy.

The southern California location is a test-run, but it could be the first of dozens across the country, Taco Bell CEO Greg Creed told the Orange County Register.

The eatery won't offer Mexican restaurant favorites like burritos or tortilla chips, and instead it will sell steak fries with tacos.

Related: Why McDonald's is offering free coffee

U.S. Taco Co. aims to fit in with other "fast-casual" chains like Chipotle, Qdoba Mexican Grill and Panera, said Morningstar analyst R.J. Hottovy.

Those chains offer higher quality food at the same speed as a fast-food joint.

U.S. Taco Co's menu will offer steak fries and milk shakes along with tacos.

It's a growing industry so it makes sense that Taco Bell, owned by Yum! Brands (YUM, Fortune 500), would want to enter the field.

"The cost to operate isn't as high as casual restaurants, but they can still charge higher prices. It's very lucrative," Hottovy said.

The tacos will cost $4 at the new restaurant, while most cost under $2 at the nearly 6,000 Taco Bell locations in the United States.

First Published: April 25, 2014: 4:39 PM ET

15.30 | 0 komentar | Read More