Sapphire Energy: Growing green oil

Sapphire Energy has raised $300 million for its "green crude farm."

(Fortune)

Algal oil "has the potential to change the world," says Cynthia Warner, Sapphire's chief executive, because the process by which it is grown will allow any nation to produce oil. Warner joined Sapphire after 28 years in the oil business, most recently as head of global refining at BP (BP). She couldn't resist the allure of algae. Productive and versatile creatures, they grow fast, don't need to be fed, and build up oil in their cells after being exposed to sunlight and CO2. They like salty or brackish water, so ponds can be built on cheap land where not much else will grow. Into each pond go genetically engineered single-celled algae that grow to maturity in about five days, after which they are skimmed from the water and put through a thermo-chemical "wet extraction" process to separate the oil. The company plans to make about 100 barrels of oil a day in New Mexico. If all goes according to plan, commercial production of perhaps 10,000 barrels a day will begin in 2018.

MORE: Green energy in the 'valley of death'

The company has raised about $300 million from venture capitalists, including Cascade Investment, which is owned by Bill Gates. Sapphire was also awarded a $50 million stimulus and a $54.4 million federal loan guarantee. Alas, no company can make algal oil at a cost that enables it to compete with conventional petroleum -- yet. Green crude just isn't as cheap as the black stuff.

This story is from the December 24, 2012 issue of Fortune.

First Published: December 11, 2012: 4:35 PM ET

14.44 | 0 komentar | Read More

Yahoo Mail finally gets a revamp and new apps

Yahoo's email overhaul aims modernize and speed up its Web and mobile apps.

NEW YORK (CNNMoney)

Yes, Yahoo Mail still exists. The update is one of the first major product overhauls released by new CEO Marissa Mayer, who pledged to revamp Yahoo's languishing collection of Web sites and apps.

Yahoo (YHOO, Fortune 500) once dominated search and email, and it was one of the earliest players in instant messaging and online news aggregation. Then, of course, it all went south. By the time Yahoo lured Mayer away from Google, it was barely even a shell of its former self.

With her hiring came promises to restructure the sprawling company, remake the products, and transform Yahoo into an innovator that can compete with the Googles, Facebooks, Microsofts, Apples and Twitters of the world.

Yahoo Mail general manager Vivek Sharma says Mayer was actively involved in the email revamp.

"She's played an unbelievably pivotal role in product direction and design," Sharma said. "She has an unbelievably intuitive understanding of what users want and need."

The new suite of email apps aren't life changing, but they at least offer a good experience for dedicated Yahoo users and show that the company is aware of what it needs to do to not only hang around, but actually make people care.

Following in the footsteps of Google (GOOG, Fortune 500) and Microsoft's recent redesigns of Gmail and Hotmail/Outlook, Yahoo's apps now have a cleaner look, though Yahoo's overall use of color and texture in its user-interface design feels a few years behind what its competitors are doing. A big part of the company's goal was to make its products simpler (there are fewer visible elements and a more intuitive layout) and more consistent across platforms. All of the mobile apps and the Web client now have the same general features and layout.

Among Yahoo's new apps, the iOS app for Apple devices is probably the most modern in look and feel, though much of that comes from the baked-in iOS tools that Google, Twitter and Facebook already use in their apps (including the "pull" gesture to refresh and "swipe" for options). Most importantly: It's fast, renders emails properly, and works offline. One drawback is that it only allows one account at a time to be logged in.

The Web client is also an improvement, with less visual noise and an easier path to firing off emails, but it still looks a generation behind as far as design trends go. Yahoo's Windows 8 app can't help but feel modern since it follows the Windows 8 design language, but -- much like the default Metro email app -- the tragic flaw is that it lacks an expanded view for individual emails. That forces you to view messages in a single corner of the screen.

Merely being good might not cut it. Email is no longer a novel thing, and it's not hard to find better alternatives. Unlike Google and Microsoft (MSFT, Fortune 500), Yahoo lacks a widely used instant messaging service, offers no cloud services, and doesn't have little perks like a "priority inbox" setting.

Sharma says that he hasn't dismissed the value of those features. In addition to looking into developing new clients for other iOS products (read: iPad), the company has its eye on ways to improve the utility of Yahoo Mail, he said.

These apps won't attract an army of converts, but if Yahoo follows through on its promise to treat this as a first step, there may be hope yet for the embattled company.

First Published: December 11, 2012: 4:39 PM ET

14.44 | 0 komentar | Read More

U.S. oil prices could sink to $50

NEW YORK (CNNMoney)

But don't expect a corresponding drop in gas prices.

Merrill analysts expect U.S. oil prices to still average about $90 a barrel over the same time period. Global oil prices meanwhile, which more closely dictate the price of gasoline in the United States, are expected to remain high as growth in global oil supplies lags population growth and economic output.

The drop in U.S. oil prices would likely be temporary, caused by the difficulty in moving huge amounts of new oil from places like North Dakota's Bakken shale or Texas' Eagle Ford to market. Already, all the new production has led to a glut of oil in the region.

"No one expected output to grow by a million barrels per day last year," Francisco Blanche, Merrill's head of commodity research, said at a press briefing in New York. "No one."

As a result, oil has been accumulating in Cushing, Okla. -- home to the convergence of several pipelines and dozens of oil storage tankers that acts as the delivery point for the most commonly quoted U.S. oil price, West Texas Intermediate.

Related: U.S. closer to being major natural gas exporter

The problem for U.S. drivers is that WTI crude accounts for just a small percentage of the oil used to make gasoline in the United States. And prices for other types of oil -- such as Louisiana Light Sweet, Alaskan North Slope or Nigeria's Bonny Light -- remain high.

In fact, Blanche said the U.S. government may have to approve exports of WTI if it wants the oil boom in this country to continue, as $50 a barrel is below the cost of production.

Merrill also predicted relatively slack economic growth in both the United States and globally in the years ahead.

The bank predicts the U.S. economy will grow by 1.5% in 2013 and 2.8% in 2014. Globally, it sees 3.2% growth in 2013 before returning to a more average level of 3.9% the following year.

But there is some good news for investors.

Continued high prices and low yields on bonds, plus the successful resolution of the so-called fiscal cliff and an improving outlook in Europe, means money should pour into stocks. Returns could run between 9% and 16% in 2013, while the S&P 500 may hit an all time high, the firm predicts.

"We are unapologetically bullish for 2013 when it comes to the U.S. equity market," said Savita Subramanian, Merrill's head of U.S. equity research.

Sectors the bank likes: tech, energy and industrials. Ones to avoid: telecoms and utilities.

First Published: December 11, 2012: 9:57 PM ET

14.44 | 0 komentar | Read More

Starbucks limited-edition gift cards spark eBay frenzy

Starbucks created 5000 limited edition, $450 holiday cards "loaded" with $400 for food and drink purchases. Now they're selling for over $1000 on eBay.

NEW YORK (CNNMoney)

On Friday, the company offered 5,000 stainless steel gift cards for sale online that went for $450 each, but were loaded with just $400 in Starbucks (SBUX, Fortune 500) credit.

That $50 gap apparently didn't make much difference to many consumers -- the cards, offered through Gilt.com, sold out within six minutes.

Starbucks said the cards themselves cost "more than $50" to make, and noted that they include membership in Starbucks' "Rewards Gold" program -- access to special offers and free food and drinks after customers buy a certain amount.

Related: Starbucks to pay more U.K. taxes

The company said in a statement that it had no plans to produce any more of the cards, but by Monday, dozens were selling on eBay (EBAY, Fortune 500) for hundreds of dollars more than face value. One was claimed Saturday after a winning bid of $1,074.

The steel cards are just the latest offering targeting well-heeled Starbucks customers. Starbucks recently unveiled an "ultra-premium" Costa Rican coffee that costs $7 for a 16 oz. cup.

First Published: December 10, 2012: 3:37 PM ET

14.44 | 0 komentar | Read More

Treasury to sell remaining AIG shares

The government at one point owned 92% of AIG.

NEW YORK (CNNMoney)

The planned offering comes four years after AIG was crippled by the financial crisis and required a government bailout that eventually swelled to $182 billion. The government at one point owned 92% of the firm.

Treasury now owns 15.9% of AIG, or 234.2 million shares. The department did not reveal an offering price for these shares, though they're worth $7.8 billion at Monday's closing price of $33.36.

Following completion of the offering, the department will still hold warrants allowing it to purchase AIG stock in the future.

Related: Chinese investors take 80% stake in AIG aircraft leasing unit

An AIG (AIG, Fortune 500) spokesman declined to comment. Shares slid 1.2% in after-hours trading Monday.

In September, the Treasury Department sold $20.7 billion worth of AIG shares, reducing its stake in the company from 53.4% to 15.9%. At that time, Treasury said it and the Federal Reserve together had generated a $15 billion profit on the AIG rescue, having recovered $197 billion on a $182 commitment.

First Published: December 10, 2012: 6:27 PM ET

14.44 | 0 komentar | Read More

HSBC to pay $1.92 billion in money-laundering settlement

NEW YORK (CNNMoney)

The deal includes a deferred prosecution agreement with the Department of Justice. Financial penalties will be assessed, but no charges will be brought against the bank provided certain conditions are met.

As part of the agreement, HSBC is required to take further actions to strengthen its compliance policies and procedures. HSBC said it also expects to reach an agreement shortly with the United Kingdom Financial Services Authority.

"We accept responsibility for our past mistakes," HSBC CEO Stuart Gulliver said in a statement. "We have said we are profoundly sorry for them, and we do so again."

The settlement follows a Senate subcommittee report released in July that accused HSBC (HBC) of failing to prevent money transfers by Mexican drug cartels and banks linked to terrorism financing.

Among other things, the report claimed that in 2007 and 2008, HSBC's Mexico unit shipped $7 billion in cash to the bank's U.S. affiliate, a volume of shipments that law enforcement officials said could reach that size "only if they included illegal drug proceeds."

Spokespeople at the Justice and Treasury Departments declined to comment when reached by CNNMoney.

Related: New York cashes in with Standard Chartered settlement

In a filing with the Securities and Exchange Commission last month, HSBC said it had set aside $1.5 billion to cover potential penalties from the U.S. money laundering investigation.

On Monday, HSBC announced that former Treasury Department official Bob Werner was taking on a new role as Head of Group Financial Crime Compliance and Group Money Laundering Reporting Officer.

"The announcement of Bob's new role underscores our determination to address the shortfalls highlighted by recent investigations," HSBC spokesman Rob Sherman said. "We have made good progress to date, but have much more to do."

The London-based bank isn't the first financial institution to face scrutiny from U.S. regulators over allegedly illicit money transfers.

Also on Monday, officials announced that U.K. bank Standard Chartered had agreed to pay $327 million to settle charges that it violated international sanctions on transactions with Iran, Burma, Libya and Sudan.

In June, Dutch bank ING agreed to pay a $619 million penalty for moving billions of dollars through the U.S. financial system at the behest of Cuban and Iranian clients. Back in 2010, Wachovia Bank paid $160 million to resolve allegations that its weak internal controls allowed Mexican cartels to launder millions of dollars worth of drug proceeds. Wells Fargo (WFC, Fortune 500)bought Wachovia in 2008.

First Published: December 10, 2012: 7:42 PM ET

14.44 | 0 komentar | Read More

Inflation rises in China

Rising food prices led a broad measure of consumer prices higher in China in November.

NEW YORK (CNNMoney)

Chinese consumers paid 2% more for goods and services in November than they did a year ago, the government's National Bureau of Statistics reported Sunday.

While that's up from a 1.7% annual increase in October, it nevertheless represents tame inflation for the world's second largest economy. A year ago, the country was experiencing an annual inflation rate of 4%.

The Chinese government prefers to keep its annual inflation rate below 4% -- a level it sees as consistent with healthy economic growth and consumer demand.

China's top 10 brands

Price hikes were the most dramatic for food. Food prices rose 3% year-over-year -- fresh vegetables rose the most, up 11.3% over a year ago.

Food is an important gauge of cost of living expenses in China. It accounts for more than a third of the country's inflation calculation, and for rural families, it makes up the bulk of expenses.

Higher prices coincided with stronger factory output and retail sales in November, according to separate reports also released Sunday. Should those trends continue, economists say the fourth quarter may mark a turning point for China, after an otherwise weak year for its economy.

"Overall, we believe economic momentum has turned a corner since September, with recent data pointing to a continuing recovery," Barclays' economist Steven Lingxiu Yang said in a research note.

China is unlikely to return to the days of 10% economic growth per year but may be reaching a "new normal of slower growth", he said. China's economy grew 7.4% in the third quarter, compared to a year earlier.

First Published: December 9, 2012: 12:16 PM ET

14.44 | 0 komentar | Read More

Chinese investors take 80% stake in AIG aircraft leasing unit

AIG sold a controlling stake of its aircraft leasing business to a group of Chinese investors.

HONG KONG (CNNMoney)

The investor group, which includes New China Trust, China Aviation Industrial Fund and P3 Investments, will pay $4.23 billion to acquire the stake in AIG's International Lease Finance Corporation. The deal includes an option for the investors to purchase an additional 9.9% stake.

The acquisition is part of AIG's (AIG, Fortune 500) drive to sell non-core assets, a strategy designed to help the insurance company emerge from the financial crisis, during which it required a government bailout, as a leaner business.

If the option to expand the purchase to 90% of ILFC is exercised, the investor group will grow to include New China Life Insurance and an investment arm of ICBC International.

ICBC International is a Hong Kong-based subsidiary of the Industrial and Commercial Bank of China -- a state-owned enterprise and one of the largest banks in the world.

Related: HSBC unloads Ping An stake

If approved by regulators, the acquisition of the American business would be one of the largest ever by Chinese investors. Regulators in the United States, including the Committee on Foreign Investment, are likely to closely scrutinize the deal.

China has long sought to improve its air travel infrastructure and aircraft fleet, and the acquisition of foreign companies can provide increased sophistication with relatively little investment required.

AIG CEO Robert Benmosche will retain a seat on ILFC's board, and company will continue to be based in Los Angeles. The company -- which owns or manages more than 1,000 aircraft -- employs 450 people in the U.S. The firm has 229 aircraft on order, along with rights to purchase 50 more.

AIG said it expects to record a loss of $4.4 billion on the deal, including a a non-cash tax charge of approximately $1.8 billion.

First Published: December 9, 2012: 10:10 PM ET

14.44 | 0 komentar | Read More

Japan's economy slips into technical recession

Japan is now in a technical recession.

HONG KONG (CNNMoney)

Revised figures from Japan's Cabinet Office show the economy contracted at an annual rate of 3.5% from July to September. GDP for April to June, previously rated as a small expansion, was revised lower to an annual contraction of 0.1%.

Economies are commonly described as being in a technical recession after two straight quarterly contractions. But many countries -- Japan included -- rely on advisory panels to define the length and starting point of recessions.

Economists are increasingly pessimistic about Japan's economy, and many expect GDP to contract in the current quarter as well. The third-largest economy in the world, Japan has suffered from weak exports, a trade spat with China and continued fallout from last year's nuclear disaster and tsunami.

The country's debt-to-GDP ratio is the highest in the world. And much like in the United States, its leaders do not agree on the path most likely to restore growth.

The disappointing revisions come as Japan prepares for an election that could affect monetary and fiscal policy in the country.

Prime Minister Yoshihiko Noda dissolved the lower house of parliament last month, calling for new elections set to take place next week.

Related: What to expect in 2013

Based on current forecasts in Japan, neither of the two main parties is likely to secure enough votes in the election to form a majority government. One possible outcome is a coalition government with LDP leader Shinzo Abe as prime minister.

Abe has held the post in the past, but stepped down citing health reasons in 2007 after only a year in office. If elected, Abe would likely push the Bank of Japan to relax monetary policy and adopt a higher target for inflation.

First Published: December 10, 2012: 12:39 AM ET

14.44 | 0 komentar | Read More

4 ways to save on holiday travel

Holiday airfares are already higher than last year -- and they will only get more expensive the longer you wait.

NEW YORK (CNNMoney)

The average round-trip flight between December 16 and January 1 is $423, up from $355 in 2011, according to Travelocity. And fares will only get more expensive the longer you wait. Hotels, too, will be filling up fast and charging higher rates the closer you get to your travel dates.

Here are four ways you can cut your travel costs:

Be flexible: When booking a flight, flexibility can be a big cash saver. Flights on Christmas Eve or Christmas Day can cost about 19% less than flights on Dec. 23 or the two days following Christmas, according to Hotwire.

The time of day you fly can also factor in, with early morning or red-eye flights generally costing a couple of hundred dollars less than flights at other times.

Related: Know your flier's rights

Also, remember to check alternate airports -- try Fort Lauderdale's airport rather than Miami International, for example. A flight between New York and Fort Lauderdale the weekend before Christmas was nearly $100 cheaper than one between New York and Miami, a recent search on Travelocity found.

Bundle up: Travel sites, such as Travelocity and Hotwire, offer last-minute deals and packages that bundle flights, hotels and sometimes car rentals for a discounted price. Hotwire, for example, recently offered a package deal from San Francisco to New York for $796 a person, including round-trip airfare and three nights at a 3 1/2-star hotel in Midtown Manhattan from Dec. 23 to Dec. 26.

If you are really going to procrastinate, try Expedia's Last Minute Deals, which offers deep discounts for the upcoming weekend and the next couple of weekends on flights, hotels and cruises. Just expect to pay up for the holiday weekends -- especially New Year's -- if you're booking last minute.

Think outside the hotel room. If you can bring yourself to forgo room service, you can save a lot of money by skipping hotels altogether. Instead, live in someone else's home. The savings can add up to hundreds of dollars a night, especially for families who would otherwise have to book multiple hotel rooms over the holidays.

HomeExchange.com offers home swaps with 43,000 listings in 140 countries, says Keghan Hurst, director of public relations. After paying a yearly $120 membership fee (there's no exchange or penalty fees), swappers can select from studios in SoHo to five-bedroom villas in Italy. In many cases, you can also use the family's cars or bicycles to get around.

Related: Maximize your frequent flier miles

Don't feel like letting strangers stay at your place? Try Airbnb.com, a website with listings in 192 countries that allows you to rent someone else's place, usually for much less than a hotel.

For a more upscale experience, there's Onefinestay, a London-based company that recently expanded to include New York City. The homes are pricier but pristine. And they include all the benefits of a hotel, such as housekeeping and concierge services, as well as an iPhone fully loaded with the owner's tips for places to go and see locally. A one bedroom in New York's West Village, for example, goes for $365 a night, while a three bedroom in the Shoreditch neighborhood of London goes for $530 a night.

Don't forget your membership perks! This is the time when that AAA or AARP membership can really pay off.

AAA members can look for discounts on its website. Current offers include Peabody Orlando Resort in Florida for $149 a night, the VDARA Hotel and Spa in Las Vegas for $99 a night, and the Conrad New York in Manhattan for $209 a night, all offered at nearly 60% off.

Just keep in mind any extra expenses when booking a hotel, such as Wi-Fi or a complimentary breakfast, advises Heather Hunter, AAA's public relations manager.

First Published: December 7, 2012: 2:32 PM ET

14.44 | 0 komentar | Read More