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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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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Make your vacation pals cough up their fair share

(CNNMoney)

"Resentment over money is one of the biggest issues that ruin vacations," says Nadine Davidson, author of Travel With Others Without Wishing They'd Stayed Home.

So before you book this summer's big trip, air your expectations about who will pay for what and how luxuriously (or not) you'll travel. That way, your time together can be all about having fun.

The Ground Rules

Keep it light. Work the topic into a larger discussion about the good times you're going to have, says Patricia Rossi, author of Everyday Etiquette.

Put it in writing. Outline the costs in black and white after your discussion, or have the whole conversation via e-mail if that feels easier.

Prepay separately when you can. Can you each send in half the condo deposit? Buy your own plane tickets? Doing so will prevent headaches later. Or opt for an all-inclusive resort -- you'll have fewer bills to square up.

When You're Face to Face...

1. Opening gambit: "We're so excited to be going to Disney with you. We love the Mickey Mouse theme restaurant. Are there any places you want to try?"

Why it works: Talking about specific activities -- and even eateries -- offers insight into how your pal or relative intends to divvy up his vacation dollars. "Even if someone's in your tax bracket, it doesn't mean they like to spend their travel money the same way," says Davidson.

2. Suggest a split. "Unless you hit the lottery next month, I assume we'll be dividing everything fifty-fifty."

Why it works: Stating upfront how you expect to share costs sets the tone for the whole trip. Be sure to discuss when the money is needed, the deadline for refunds, and what happens if one party has to cancel. Infuse this with humor to make people feel at ease, says Rossi.

3. Take on the burden. "I know the hotel prices in Chicago are outrageous. Why don't I research some cost-effective options?"

Related: How to ask a pal or relative to pay you back

Why it works: Taking the reins can help you avoid the awkwardness that might ensue when, say, your spendy pals suggest the Ritz or your cheap friends pick the Fleabag Inn. Your travel mates are likely to be more receptive to different options if they know it won't create a hassle for them, says Marblehead, Mass., etiquette consultant Jodi R.R. Smith.

4. Propose a practical plan. "Since we're eating lunches at the condo, how about each family sets aside $100 for grocery store runs?"

Why it works: Putting a system in place ensures that no one winds up footing the whole bill, says Lynn O'Rourke Hayes, editor of FamilyTravel.com. Create a communal account or put receipts in a specific place to be tallied up later. Also address how you'll pay for booze, since differences in consumption can cause tension.

5. Ask for alone time. "Seafood isn't really our thing. When you guys go to the surf-and-turf place, we'll head to our favorite taco stand."

Why it works: Making some separate plans allows each party to look forward to things that cater to its budget and tastes. After all, says Smith, "part of the fun of a vacation is the anticipation."

First Published: May 8, 2013: 6:51 PM ET

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