China canal project in Nicaragua has investors

Nicaraguan President Daniel Ortega and Wang Jing of HKND Group.

HONG KONG (CNNMoney)

Telecom executive Wang Jing told reporters in Beijing that work should start on the canal by the end of 2014 and finish within six years.

Lawmakers in Nicaragua granted a 50-year concession earlier this month to Wang's privately held HKND Group to build the canal, which will stretch three times the distance of its Panamanian counterpart.

The proposed passage through Nicaragua would be wider that the Panama Canal, and could leave the country well placed to capitalize on a predicted rise in global shipping over the next 20 to 30 years.

Even with its current expansion, the Panama Canal will still be too small to accommodate the world's largest container ships.

In addition to the canal, HKND has won rights to build a railroad, two ports, an international airport and an oil pipeline.

It is not clear how the group intends to finance the canal's construction, which carries a reported price tag of $40 billion.

Wang said Tuesday that fundraising is "going very well so far." But he declined to name any investors, saying instead that more information will be provided "when the project reaches different phases."

Nicaragua has long attracted ambitious businessmen, politicians and governments hoping to build a canal. So far, all efforts have fallen victim to a lack of funding or the country's complicated politics.

Related story: China and Europe risk trade war

Many observers are deeply skeptical of the project's viability. Wang has no apparent experience with large infrastructure projects, and little is know about HKND's governance structure.

Wang denied any ties to the Chinese government or military on Tuesday, saying the project is entirely independent. Pressed about his background, Wang said that he studied Chinese medicine before pursuing a career in business.

"I am an average Chinese citizen," the CEO said.

T.L. Yip, an assistant professor at Hong Kong Polytechnic University, said that the project is technically viable and not unrealistic.

Beijing is eager, Yip said, to secure energy supplies, and a canal in Nicaragua would provide an additional avenue for trade between China and key trading partners like South Africa.

"From China's point of view, they would like to see an alternative to the Panama Canal," Yip said. "This could be very important for Beijing."

President Daniel Ortega and his Sandinista government have portrayed the project as an economic boon for Nicaragua, which is the poorest country in Central America and second poorest in the Western Hemisphere. The country is highly indebted and unemployment is rampant.

Ortega faces domestic opposition over the project. The Movement for Nicaragua, a coalition of community groups, has already objected to the proposed construction.

"Nicaragua isn't for sale. Nicaragua belongs to all Nicaraguans and isn't the private property of Ortega and his family," the group said in a statement.

-- CNN's Dayu Zhang contributed reporting.

First Published: June 26, 2013: 12:11 AM ET

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Mexico eyes China as new tequila market

Some high-end tequilas such as Jose Cuervo, Herradura, Patron and Don Julio will be largely launched in Beijing, Shanghai and Hong Kong by the end of the year.

NEW YORK (CNNMoney)

The two countries agreed to increase tequila imports from Mexico when their presidents met earlier this month.

"We are expecting to export 10 million liters of tequilas to China in five years, and make China the second largest market after the United States," said Francisco Soltero Jimenez, general manager of Mexico's national tequila industry association.

Until recently, China restricted imports of foreign liquor that exceed 2 grams of methanol per liter, citing harmful health effects. Most high-quality tequila -- made with 100% agave -- contains more methanol than the limit. Consequently, high-grade tequilas have been largely unavailable to Chinese drinkers.

Last year, Mexican tequila makers exported 410,000 liters of lower agave tequila into China.

But China recently reassessed tequila's risks and found that tequilas with more than 2 grams of methanol per liter don't pose any harmful health effects.

Mexico currently exports tequila to more than 100 countries, but nearly 80% goes to the United States, according to Mexico's national tequila industry association.

China consumes 5 billion liters of spirits every year, led by cognac, whiskey and vodka. Drinking has been a long-standing part of Chinese culture, especially during business banquets. And tequila's flavor profile is similar to traditional Chinese wine, a strong drink.

Related: Tequila! But not for spring breakers

Looking for new growth opportunities, Mexican producers are studying the spirits, culture and customs of the nearly 300 million Chinese upper-middle class consumers.

"We will have more promotions in Beijing, Shanghai and Hong Kong," Jimenez said. "Some high-end tequila such as Jose Cuervo, Herradura, Patron and Don Julio will be largely launched in China by the end of the year," he said.

The 100% agave-based tequila will cost approximately $40 to $60 per bottle including import tax, according to Jimenez.

In the long run the tequila market in China could be even larger than in the United States because there are more Chinese with disposable incomes, said Christopher Shanahan, food and agriculture manager at Frost & Sullivan, a U.S. marketing analysis firm.

Tequila makers are trying to encourage China's growing new rich to buy the alcohol by leveraging its mystique and novelty, Shanahan said.

"There has been significant growth in food services and restaurant sales on top of grocery sales in China," Shanahan said. "And the Chinese market likes foreign prestige brands. These are indicators that tequila will be popular in China."

Major foreign brands that have launched in China almost all experienced significant growth, Shanahan said.

"Chinese consumers want to spend money on luxurious and unique foreign products to increase their social standings in a fashionable way. Tequila is one of many products that will become part of the equation," Shanahan said.

First Published: June 26, 2013: 2:12 AM ET

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Betting on the royal baby

Prince William and the Duchess of Cambridge are due to welcome their first child in July.

NEW YORK (CNNMoney)

It will also be a chance for some people to win big money.

As Prince William and the Duchess of Cambridge prepare to welcome their heir in mid-July, thousands of people are betting on when the royal bundle of joy will arrive, what its name will be and whether it will have its Uncle Harry's signature ginger hair.

William Hill, one of the world's biggest online betting sites, has already taken in more than £20,000 in bets, according to spokesman Rupert Adams. The vast majority of bets average less than £1.

"Obviously the closer we get to the big day, the more interest we will see," Adams he said. He expects the most money to be bet on the baby's name, followed by its size and the birth date.

Related: The $380 million royal baby bump

So far, Alexandra is the favorite with 5/2 odds. Diana and Elizabeth, for Prince William's late mother and grandmother, trail close behind.

A small few could win big if William and Kate go with dark horse choices Waynetta or Chardonnay. Odds are at 500/1 and 250/1, respectively.

Most of the royal gamblers think the couple will have a teeny tiny brown-haired princess, but the odds are split between which royal will carry the future queen or king out of the hospital.

Related: Online gambling toes a confusing legal line

Adams is just hoping that the name is kept secret, unlike when Prince William was born. He said William Hill got taken to the cleaners in 1982, when the prince's name leaked three days before he was born. They lost nearly £10,000 as the price plummeted from 33/1 to 3/1. They paid out £30,000 total around his birth.

But try as they might, Adams thinks royal snoops are unlikely to unearth the name early this time around.

"The news they were engaged did not leak, so they must run a very tight ship."

First Published: June 26, 2013: 2:13 AM ET

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4 stocks I'm buying to ride U.S. energy boom

Occidental Petroleum Corp v. Kinder Morgan

NEW YORK (CNNMoney)

This week, the sector will be in focus, with President Obama expected to unveil a national plan to combat climate change on Tuesday.

The energy renaissance has also been on the mind of portfolio manager Mark Freeman, who has been stocking up on companies that are benefiting from it. Freeman said his investments have been driven by the U.S.' push to become energy independent and its focus on renewable energy sources.

"You get a powerful dynamic in achieving self-sufficiency," said Freeman, chief investing officer of Westwood Holdings Group, which manages $8 billion in assets.

American oil production has surged, and is expected to continue rising. It's lit a fire under energy stocks -- the S&P 500 energy sector index is up over 20% in the past year.

Freeman's firm has invested on all sides of the energy market, from domestic producers to infrastructure components to support services for oil drilling. Here are 4 stocks he's bought, and why he thinks they'll continue to be hot:

1. Domestic producer Occidental Petroleum Corporation (OXY, Fortune 500)'s stock has risen 13% this past year. But Freeman believes it has more to go as the largest onshore producer in the United States.

2. Infrastructure components company Kinder Morgan (KMI, Fortune 500), whose stock is also up 13%, has been big for Freeman. The company's 80,000 miles of pipelines and 180 terminals, which transport natural gas and petroleum products, Freeman believes puts Kinder in the perfect position to benefit from increased domestic production.

3. Freeman said that Union Pacific (UNP, Fortune 500), a major railroad franchise, will benefit in the same way, because there will be more demand for crude-by-rail and shipping. The stock is up 32% in the past year.

4. Schlumberger (SLB), a leading oilfield services company, will be big, said Freeman. Energy companies will rely more on Schlumberger to get their work done because Schlumberger helps supply technology and project management to the oil production industry. Its stock is up 16% this past year.

All these stocks are multi-year holdings for Freeman.

First Published: June 23, 2013: 2:08 PM ET

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Brazilian stocks among world's worst performers

Click chart for more data on global markets.

NEW YORK (CNNMoney)

The Bovespa Stock Index (IBOV) is down more than 20% so far this year, making it the worst performer among the major emerging markets.

Investors have been pulling out of emerging markets in anticipation of tighter monetary policy in the United States. The sell-off in Brazil accelerated last month after Federal Reserve chairman Ben Bernanke told U.S. lawmakers that the central bank could begin to slow the pace of its asset purchases later this year.

The Fed has bought some $3 trillion worth of assets since it launched quantitative easing in 2008. Much of that money has found its way into stocks in developing economies as investors ventured into more risky assets.

Brazilian stocks have also been hurt this year by a lackluster growth outlook for Latin America's largest economy as global demand for natural resources wanes.

Related: Emerging markets in turmoil

The Brazilian real has come under pressure as investors pull money out of the country. That's prompted Brazil's central bank to take steps to prop up the currency. Despite such intervention, the real tumbled to a four-year low against the dollar Friday.

The recent political unrest in Brazil has also put the country in the headlines for the wrong reasons. But analysts say the political turmoil has not yet impacted the nation's economy.

Following large-scale protests in Sao Paulo and Rio de Janeiro, the government agreed to roll back controversial fare hikes on bus and metro tickets.

"The protests are having very little impact on sentiment towards Brazil at this stage," said Robert Wood, Brazil analyst for The Economist Intelligence Unit. "It's mostly driven by external factors."

However, the protests have highlighted the significant gap between the rich and poor in Brazil.

Brazil has 12 to 13 million households in extreme poverty, which translates to roughly 40 million people, said Rafael Amiel, director of Latin American economics at IHS Global Insight.

"Brazil has made substantial progress, but they still have a lot of people in poverty," said Amiel.

Nevertheless, he said the recent political unrest is not comparable to the Arab spring uprisings over the past few years.

"They don't want to bring down the government," he said. "They just want more services and less corruption."

Related: Meet the new emerging markets

So why have Brazilian stocks fallen even more than shares of Indian and Chinese companies? A global slowdown in the demand for oil and other commodities is the big reason.

Brazil's economy has cooled off from a torrid pace in the past few years as domestic consumption has not made up for the decline in demand for natural resources. The International Monetary Fund cut its outlook for Brazilian growth this year to 3% in April, down from 3.5% in January.

"Brazil was one of the investment darlings of the emerging world over past ten years," said Paul Christopher, chief international strategist Wells Fargo Advisors. "Now, it has fallen out of favor with a big thud."

Shares of Brazilian oil company Petrobras (PBR) has fallen nearly 30% this year while mining company Vale (VALE) has plummeted 35%.

Christopher noted that the Bovespa has underperformed the benchmark MSCI (MSCI) index of emerging market stocks since mid-2012.

The government has ramped up infrastructure spending in the past few years as Brazil prepares to host the 2014 World Cup and the 2016 Olympic Games. But that hasn't been enough to offset the impact of the slowdown in commodity prices and is putting a strain on the government's finances.

Related: China's credit squeeze spooks markets

Amiel said the political unrest could discourage some people from traveling to Brazil for the World Cup. But given the nation's limited capacity to host such a large event "it might be a good thing if some people are discouraged," he added.

While Brazil has invested heavily in public works, progress has been slow on key projects such as airports, railways and roads.

Meanwhile, inflation remains a problem. The Brazilian central bank has been hiking interest rates in an effort to bring inflation back down to its target level of 4.5%. The bank announced a surprise interest rate hike in April, and increased the benchmark rate again in May to 8%.

The central bank has also been busy trying to prevent the Brazilian real from falling further. Brazil's currency had appreciated significantly from 2009 to 2011 as investors poured money into the country, which held up better during the credit crisis than the United States, Europe and other developed markets

Brazil declared a currency war in 2012 and started hiking interest rates in an attempt to discourage excessive speculation by foreign investors. The real had been drifting in a range for the past year, but it recently fell through the low end.

"The central bank will try to keep the real in that range," said Christopher. "But it's an open question as to whether they will succeed."

First Published: June 23, 2013: 5:08 PM ET

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76% of Americans are living paycheck-to-paycheck

Consumers feel better about their finances, but savings rates remain stagnant.

NEW YORK (CNNMoney)

Fewer than one in four Americans have enough money in their savings account to cover at least six months of expenses, enough to help cushion the blow of a job loss, medical emergency or some other unexpected event, according to the survey of 1,000 adults. Meanwhile, 50% of those surveyed have less than a three-month cushion and 27% had no savings at all.

"It's disappointing," said Greg McBride, Bankrate.com's senior financial analyst. "Nothing helps you sleep better at night than knowing you have money tucked away for unplanned expenses."

Even more disappointing; The savings rates have barely changed over the past three years, even though a larger percentage of consumers report an increase in job security, a higher net worth and an overall better financial situation.

Related: Seniors in 48 states face serious income shortage

So why aren't Americans saving more?

Last week, online lender CashNetUSA said 22% of the 1,000 people it recently surveyed had less than $100 in savings to cover an emergency, while 46% had less than $800. After paying debts and taking care of housing, car and child care-related expenses, the respondents said there just isn't enough money left over for saving more.

Related: Ben Bernanke's power over your money

"There really hasn't been much relief," said Megan Stanton, director of marketing for CashNetUSA "The economy is stagnant, $100 is not enough to help you out in an emergency."

First Published: June 24, 2013: 12:59 AM ET

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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

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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

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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

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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

14.44 | 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

14.44 | 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

14.44 | 0 komentar | Read More

10 firms named as first Libor trial begins

Former UBS and Citigroup banker Tom Hayes is the first person to appear in court in connection with the Libor rigging investigation.

LONDON (CNNMoney)

Tom Hayes appeared in court Thursday to hear eight charges of conspiracy to defraud by trying to manipulate the London Interbank Offered Rate (Libor) and other rates between August 2006 and September 2010.

Hayes is the first person to face trial in connection with the Libor scandal, a year after Barclays (BCLYF) admitted to taking part in a scheme to rig the benchmark rate used to price loans and derivatives worth trillions of dollars.

The British bank paid a fine of $453 million to settle claims by U.K. and U.S. authorities. UBS was fined $1.5 billion in December last year, and Royal Bank of Scotland paid $612 million two months later for its role.

Hayes, 33, only spoke to confirm his name, date of birth and residence. His lawyer Lydia Jonson declined to comment when asked what Hayes thought about the charges. Hayes did not enter a plea.

While working for UBS (UBS), prosecutors claim that Hayes conspired with colleagues at the Swiss bank and employees at JPMorgan Chase (JPM, Fortune 500), RBS (RBS), Deutsche Bank (DB), Rabobank, HSBC (HBC) and brokers ICAP (IAPLF), RP Martin and Tullet Prebon.

Related: Singapore raps 20 banks for trying to rig rates

They also claim that while working at Citigroup (C, Fortune 500), he conspired with colleagues at the U.S. bank as well as employees at UBS, Deutsche Bank and ICAP.

ICAP said it understood that unnamed employees of one of its subsidiaries had been referred to in the charges against Hayes but said no ICAP company had been charged.

"ICAP has provided information to the Serious Fraud Office and continues to cooperate with its investigation," it said in a statement.

Tullet Prebon said it had not been informed by any authority that it or any of its brokers were under investigation in relation to Libor.

"Tullett Prebon has been asked to provide information to the Financial Conduct Authority and other regulators and government agencies in connection with their enquiries in relation to Libor and is cooperating fully with these requests," it said in a statement.

UBS, Citigroup, Deutsche Bank, RBS, JPMorgan and RP Martin declined to comment. Rabobank and HSBC could not be immediately reached for comment.

The case was referred to a higher court, with a preliminary hearing set for July 4. Hayes was granted bail on condition that he surrender his passport and not make contact with others named in the bail conditions. Those names were not read in court at the prosecutor's request.

-- CNN's Carol Jordan contributed to this article.

First Published: June 20, 2013: 12:14 PM ET

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7-Eleven cracks down on franchises following fed bust

U.S. Attorney Loretta Lynch of the Eastern District of New York charged nine owners and managers of 7-Eleven franchises of stealing identities and exploiting illegal immigrants.

NEW YORK (CNNMoney)

The 7-Eleven company said Thursday that self-reviews must be conducted by the end of June, or the franchises will be subjected to fines of up to $1,100 per violation.

Starting on July 1, the company said it will send consultants to 5,000 of its franchises to make sure they're in compliance.

The aggressive move by 7-Eleven follows the June 18 indictment by federal authorities of nine owners and managers of 14 franchises, located on Long Island, NY and Virginia. The company is currently running the stores.

"We know that you are the sole employer of all associates in your stores, and we are not attempting to interfere with your employment relationship or control how you hire, fire or manage your employees," said 7-Eleven chief operating officer Darren Rebelez, in a letter to franchises.

Related: Feds forfeit 14 7-Eleven franchises in immigrant crackdown

"However, we have a critical need to protect the integrity and reputation of the 7-Eleven brand, a right to insist upon your compliance with the franchise agreement, and to ensure that all franchised stores are being operated in a lawful manner," the letter said.

Related: Madoff, the king of thieves

The indicted 7-Eleven owners are accused of employing illegal immigrants from Pakistan and the Philippines and pocketing their pay, while using stolen identities to hide their true identities from 7-Eleven and the government.

Married couple Farrukh and Bushra Baig, who owned or managed a dozen of the stores, and six of the other defendants pleaded not guilty on Tuesday and were held without bail, according to the feds. One of the defendants, Azhar Zia, was still a fugitive.

First Published: June 20, 2013: 3:00 PM ET

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Instagram video: Vine killer and not much else

Facebook's Video on Instagram launched Thursday.

NEW YORK (CNNMoney)

Video on Instagram works almost exactly as CEO Kevin Systrom said it would -- quick and simple. The new feature, developed by the Facebook-owned (FB) Instagram, bears much resemblance to Twitter's Vine app. But Video on Instagram packs a couple of features Vine does not, such as video filters and stabilization.

As technically sound as Instagram's new features are, they feel less like a magical new way of using Instagram and more like a quick way to snuff Vine out.

Why bother with keeping accounts with two services when you can get everything in one package? Why limit yourself to six seconds of Vine video uploads when you can have up to 15 with Instagram? Why look at the world as it is, when you can see it through a faded lens?

But that's just about where the benefits of Video on Instagram end.

Related story: Twitter's identity crisis

The initial magic of Instagram was not that it allowed you to stumble into beautiful, nostalgia-laced photography through the use of filters (Hipstamatic did that first). It's that it made the process of capturing and sharing those types of photos fast and easy.

Instagram's video product won't have quite the same effect.

As easy as Vine and Instagram have made video sharing, it's still not as simple as it could be. Compared to the video stitching feature on the HTC One smarphone, which will auto-edit a video together from multiple clips (generally to good effect), the Instagram and Vine solutions take comparatively more work, often yielding a cruder finished product.

The additional time and effort needed for creating and consuming video could diminish some of the magic that Instagram has been so good at providing.

Video on Instagram does not feel as essential as its photo counterpart. Still, it has enough positive features to vault it to the top of the list of best video-sharing apps.

First Published: June 20, 2013: 4:15 PM ET

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Google files First Amendment court case against NSA surveillance secrecy

NEW YORK (CNNMoney)

In a First Amendment plea lodged with the secretive U.S. Foreign Intelligence Surveillance Court, Google (GOOG, Fortune 500) asked that the court let it disclose the scope of the newly discovered "Prism" program. Google also asked for the ability to share the number of user accounts associated with those secret data requests. The company argued that a gag order barring such disclosure is a violation of its right to free speech.

The petition comes less than two weeks after The Guardian and The Washington Post revealed a National Security Agency surveillance program known as Prism. Leaked documents said the NSA has been monitoring data from nine major U.S. companies, including Google, Apple (AAPL, Fortune 500) and Microsoft (MSFT, Fortune 500), in an effort to gather data on foreign intelligence targets.

Google claims that those and other reports about Prism were "misleading" and "mischaracterized the scope" of the program -- specifically, that they misled the public to believe that the government has carte blanche to snoop on its users. The company has publicly denied that the government has the ability to tap directly into its servers, and Google says it wants to clear the record about the scope of such requests.

See Google's court document here

"Google's reputation and business has been harmed by the false or misleading reports in the media, and Google's users are concerned by the allegations," the company said in its filing. "Google must respond to such claims with more than generalities."

The U.S. Department of Defense did not immediately respond to a request for comment. A representative for the NSA pointed to previously published statements about Prism, but would not comment on Google's petition specifically.

The government recently ruled that companies can include the number of surveillance requests in aggregate with other government requests for data, including criminal requests from federal, state and local authorities. Several of Google's competitors jumped at the chance, including Microsoft, Facebook (FB), Apple and Yahoo (YHOO, Fortune 500).

For the past several years, Google has published a "transparency report" that includes the number of user data requests it receives from government agencies as a whole. But the company wants to get more specific by breaking out "aggregate numbers of national security requests" separately.

"Lumping national security requests together with criminal requests would be a backward step for Google and our users," a Google spokeswoman said in a statement.

Earlier on Tuesday, Yahoo said it received between 12,000 and 13,000 requests for user data from U.S. law enforcement agencies over the last six months. Apple said Monday it had received as many as 5,000 requests, while Facebook (FB) received about 10,000 requests in the last half of 2012.

Some viewed Google's petition as a ploy to win public opinion.

"Although I am delighted Google has challenged the FISA gag, the lawsuit is a cheap way to get some positive PR after 2 weeks of awful press," tweeted Christopher Soghoian, a technologist and policy analyst at the American Civil Liberties Union.

-- CNN's Kevin Bohn and Michelle Jaconi contributed reporting to this article.

First Published: June 18, 2013: 5:10 PM ET

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Immigration bill could cut deficits by $175 billion - CBO

New CBO report of Senate immigration bill estimates 8 million unauthorized residents would become legal in the first decade after enactment.

NEW YORK (CNNMoney)

That's according to an analysis released Tuesday by the nonpartisan Congressional Budget Office.

The CBO, working with the congressional Joint Committee on Taxation, estimates that 8 million unauthorized residents would become legal in the first decade.

In addition, the report estimates the bill would boost the U.S. population by a net of 10.4 million people by 2023 and by 16 million by 2033.

The rise in legal immigrants and the U.S. population overall would increase spending on refundable tax credits, Medicaid and health insurance subsidies, among other federal benefits. And it would increase spending for the implementation and enforcement of the bill's provisions.

At the same time, however, the surge would create even more tax revenue by way of income and payroll taxes, the agency noted.

From CNN: 5 things to know about immigration reform

The CBO did caution, however, that "the net impact of the bill on federal deficits would depend on future actions by lawmakers."

The report didn't analyze the effects of the increased population on state and local governments but allowed that there would be both positive and negative effects.

In addition, the CBO estimates that the bill, while increasing economic output, would also decrease average wages before 2025 but increase them thereafter. It would also "slightly raise" the unemployment through 2020.

The legislation, known as the Border Security, Economic Opportunity and Immigration Modernization Act, was introduced in the Senate by a bipartisan group of senators known as the Gang of 8.

The Obama administration backs the bill. "By fixing our broken immigration system ... we can grow the economy, strengthen the middle class, improve our fiscal outlook and create new opportunity for Americans everywhere," the White House said after the CBO report came out.

The Senate is debating the bill. If it passes, it will move to the House, where it could face considerable opposition.

Republicans in general are divided over immigration reform. Among the concerns of those who oppose it: border security, creating a path to citizenship for those who entered the country illegally, and the potential effect on jobs.

"This bill guarantees three things: amnesty, increased welfare costs, and lower wages for the U.S. workforce," Jeff Sessions, the top Republican on the Senate Budget Committee said in a statement.

On Tuesday, House Speaker John Boehner said he wouldn't bring an immigration bill to a vote unless he know it has the support of a majority of House Republicans.

First Published: June 18, 2013: 6:35 PM ET

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China's fastest-growing cities for millionaires

The population of multi-millionaires in no-name Chinese cities is growing at a breakneck pace. Case in point: Chongqing's multi-millionaire population grew by nearly 80% between 2007 and 2012.

LONDON (CNNMoney)

Make room for some new up-and-coming Chinese cities where multi-millionaires are taking over.

But the thing is, most Westerners have probably never heard of these cities.

How about Chongqing? Or maybe Hangzhou?

New research from WealthInsight shows Chongqing was the fastest growing city for multi-millionaires in China between 2007 and 2012. Chongqing's multi-millionaire population grew by nearly 80% in that time period and the city now boasts 96 ultra high net worth individuals with more than $30 million in assets.

Chengdu and Fuzhou's multi-millionaire population also ballooned by 60% in the same period. The latest data shows Chengdu has 120 multi-millionaires and Fuzhou has 67.

By comparison, Hong Kong had 2,560 multi-millionaire residents at the end of 2012, making it the city with the most ultra-rich people. But its ultra high net worth population only grew by 16% in that same time period.

Related: China cracks down on military use of luxury cars

WealthInsight notes that its list of the top 10 fastest growing Chinese cities for multi-millionaires did not include any of the country's largest cities, showing that some wealth has begun transitioning away from these established commercial centers.

"Private banks and luxury goods companies should start targeting smaller cities such as Hangzhou and Wuhan," the report said.

Of the top 10 cities with the fastest growing populations of multi-millionaires, Hangzhou had the largest numbers -- 563 -- with a growth rate of 57%.

First Published: June 18, 2013: 6:49 PM ET

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