Would-be giant in online house hunting has brokers scared

NEW YORK (CNNMoney)

The rumored deal -- the companies won't confirm it -- sent the companies' stocks soaring Friday as the chatter gathered steam.

The companies don't charge for publishing these listings of homes for sale, but they do charge real estate agents fees to appear on their listing pages.

Should the two sites merge, they could have the leverage to charge more, said Steve Murray, editor at Real Trends a real estate communications and consulting company.

Already, some agent teams spend $20,000 a month with Zillow, Trulia, or both, said Murray.

For now, the agents are generally satisfied with the fees because the exposure generates so much business. Zillow and Trulia together attract 130 million visitors a month.

The ultimate fear: Zillow and Trulia could make brokers irrelevant.

Zillow, for instance, has its own home value algorithm called Zestimates. Trulia offers extensive rankings on crime, public transit and schools.

"Combined, [Zillow and Trulia] could further erode the leadership of the National Association of Realtors," said Jonathan Miller, president of Miller Samuel, a New York based appraisal firm.

Related: 10 mansions for under $1 million

Related: Best places for vacation home deals

First Published: July 25, 2014: 6:31 PM ET

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Mary Poppins won't work for minimum wage

NEW YORK (CNNMoney)

But in a parody from Funny or Die, the Disney character (played by Kristin Bell) is quitting her job because that's all the Banks family will pay her.

She struggles to make ends meet while making $7.25, the federal minimum wage, pleading for a $3 raise.

"In every job that must be done, you must be paid in more than fun," she sings, a play on an original Mary Poppins song.

Related: LA hotel workers could get highest minimum wage in the U.S.

Plenty of people in the real world agree. 71% of people surveyed by CNNMoney favor an unspecified hike in the federal minimum wage. Meanwhile, 36% said it should be increased to $10.10 an hour, which is what Senate Democrats and President Obama have proposed.

A number of states and major cities aren't waiting for Congress to act and are passing minimum wage increases on their own. This year, five states and Washington D.C. passed legislation to gradually increase their wages to $10.10 or higher; other states passed smaller increases. In June, the Seattle city council approved an eventual increase to $15 an hour, making it the nation's highest so far.

But critics contend that a higher minimum wage will hurt jobs and consumers. A report released by the Congressional Budget Office in April said that a federal hike to $10.10 would lift 900,000 people out of poverty, but also cut 500,000 jobs.

First Published: July 25, 2014: 4:32 PM ET

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Lyft gets the green light in New York City

Rideshare app Lyft, known for the pink mustaches on car grills, will launch in New York on Friday

NEW YORK (CNNMoney)

After two weeks of sparring with New York City taxi regulators, rideshare app Lyft can start serving the five boroughs -- provided its drivers go through city licensing.

Lyft, known for the fuzzy pink mustaches on drivers' car grills, connects users with drivers, many of whom drive their own cars rather than a dispatcher's taxi. (The company said it will use smaller, dashboard mustaches in New York, as opposed to a big 'stache mounted on the front bumper.)

New York City's taxi regulator, the Taxi & Limousine Commission (TLC), has said it has the right to regulate so-called rideshare apps like Lyft. The commission sought a temporary restraining order against the app as recently as July 11, when Lyft planned to launch in Brooklyn, because it had not secured licenses.

Related story: 24 hours with Lyft CEO Logan Green

Today's agreement suggests that the commission might be accepting technology with the potential to upend how it does business.

As part of the new agreement, Lyft drivers will meet a host of requirements. They'll submit to annual drug testing, attend a state-certified driving course every three years and get fingerprinted.

Around the country, regulators have shown skepticism -- and outright hostility -- to transportation apps like Uber and Lyft, which help users get taxis using their smartphones. They have laid down fines and court orders. Friday's agreement seemed to signal recognition in the highly regulated New York market that the apps are here to stay.

Commission chair Meera Joshi said in a statement that working with Lyft has helped regulators gain insight into the apps and how they serve passengers.

"As long as we ensure that public safety and consumer protection is at the forefront of these efforts, the city will benefit," said Joshi.

That's a far cry from the battle that Lyft's competitor Uber fought. It launched in New York in May 2011, according to its website, but it wrangled with the commission for two years before it was officially recognized.

First Published: July 25, 2014: 5:02 PM ET

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Lyft gets the green light in New York City

Rideshare app Lyft, known for the pink mustaches on car grills, will launch in New York on Friday

NEW YORK (CNNMoney)

After two weeks of sparring with New York City taxi regulators, rideshare app Lyft can start serving the five boroughs -- provided its drivers go through city licensing.

Lyft, known for the fuzzy pink mustaches on drivers' car grills, connects users with drivers, many of whom drive their own cars rather than a dispatcher's taxi. (The company said it will use smaller, dashboard mustaches in New York, as opposed to a big 'stache mounted on the front bumper.)

New York City's taxi regulator, the Taxi & Limousine Commission (TLC), has said it has the right to regulate so-called rideshare apps like Lyft. The commission sought a temporary restraining order against the app as recently as July 11, when Lyft planned to launch in Brooklyn, because it had not secured licenses.

Related story: 24 hours with Lyft CEO Logan Green

Today's agreement suggests that the commission might be accepting technology with the potential to upend how it does business.

As part of the new agreement, Lyft drivers will meet a host of requirements. They'll submit to annual drug testing, attend a state-certified driving course every three years and get fingerprinted.

Around the country, regulators have shown skepticism -- and outright hostility -- to transportation apps like Uber and Lyft, which help users get taxis using their smartphones. They have laid down fines and court orders. Friday's agreement seemed to signal recognition in the highly regulated New York market that the apps are here to stay.

Commission chair Meera Joshi said in a statement that working with Lyft has helped regulators gain insight into the apps and how they serve passengers.

"As long as we ensure that public safety and consumer protection is at the forefront of these efforts, the city will benefit," said Joshi.

That's a far cry from the battle that Lyft's competitor Uber fought. It launched in New York in May 2011, according to its website, but it wrangled with the commission for two years before it was officially recognized.

First Published: July 25, 2014: 5:02 PM ET

19.33 | 0 komentar | Read More

Mary Poppins won't work for minimum wage

NEW YORK (CNNMoney)

But in a parody from Funny or Die, the Disney character (played by Kristin Bell) is quitting her job because that's all the Banks family will pay her.

She struggles to make ends meet while making $7.25, the federal minimum wage, pleading for a $3 raise.

"In every job that must be done, you must be paid in more than fun," she sings, a play on an original Mary Poppins song.

Related: LA hotel workers could get highest minimum wage in the U.S.

Plenty of people in the real world agree. 71% of people surveyed by CNNMoney favor an unspecified hike in the federal minimum wage. Meanwhile, 36% said it should be increased to $10.10 an hour, which is what Senate Democrats and President Obama have proposed.

A number of states and major cities aren't waiting for Congress to act and are passing minimum wage increases on their own. This year, five states and Washington D.C. passed legislation to gradually increase their wages to $10.10 or higher; other states passed smaller increases. In June, the Seattle city council approved an eventual increase to $15 an hour, making it the nation's highest so far.

But critics contend that a higher minimum wage will hurt jobs and consumers. A report released by the Congressional Budget Office in April said that a federal hike to $10.10 would lift 900,000 people out of poverty, but also cut 500,000 jobs.

First Published: July 25, 2014: 4:32 PM ET

19.33 | 0 komentar | Read More

Would-be giant in online house hunting has brokers scared

NEW YORK (CNNMoney)

The rumored deal -- the companies won't confirm it -- sent the companies' stocks soaring Friday as the chatter gathered steam.

The companies don't charge for publishing these listings of homes for sale, but they do charge real estate agents fees to appear on their listing pages.

Should the two sites merge, they could have the leverage to charge more, said Steve Murray, editor at Real Trends a real estate communications and consulting company.

Already, some agent teams spend $20,000 a month with Zillow, Trulia, or both, said Murray.

For now, the agents are generally satisfied with the fees because the exposure generates so much business. Zillow and Trulia together attract 130 million visitors a month.

The ultimate fear: Zillow and Trulia could make brokers irrelevant.

Zillow, for instance, has its own home value algorithm called Zestimates. Trulia offers extensive rankings on crime, public transit and schools.

"Combined, [Zillow and Trulia] could further erode the leadership of the National Association of Realtors," said Jonathan Miller, president of Miller Samuel, a New York based appraisal firm.

Related: 10 mansions for under $1 million

Related: Best places for vacation home deals

First Published: July 25, 2014: 6:31 PM ET

19.33 | 0 komentar | Read More

Move over Hollywood! Louisiana is top for film production

Wingate Jones in front of his New Orleans business.

NEW YORK (CNNMoney)

With a temperate climate and generous tax incentives, Louisiana has been luring the California-based film industry south, creating thousands of new jobs and businesses in the process.

"We have been on a steady upward trajectory since Louisiana adopted its incentive program in 2002," said Chris Stelly, executive director of Louisiana Entertainment, a government organization tasked with developing the state's entertainment industry. "2013 was our biggest year."

With films like G.I Joe, The Butler and Enders Game shot in the Bayou State, last year it topped Film L.A.'s Feature Film Production Study as the number 1 location for motion picture filming. From 2002 to 2012 (the last year data was available), the industry created more than 14,000 jobs -- more than half of which were between 2010 and 2012, according to the Louisiana Department of Economic Development.

It's reflected in a variety of jobs -- everything from costume shops to caterers to truck drivers.

Stelly estimates small businesses represent over 50% of the state's $1 billion film industry. "There's plenty of opportunities for business of all sorts and sizes -- small businesses in particular," he said.

Related: 10 best cities to launch a startup

New Orleans-based Hollywood Trucks is one business that has expanded with the state's growing movie production.

Andre Champagne, a 37-year-old native of Baton Rouge, La., started Hollywood Trucks in 2007 when the state was still in the infancy of its film incentive program. He had $100,000, one employee, five vans and two stake-bed trucks.

"At the time, the state had a fantastic program, but because it was in the starting stages there was no infrastructure," Champagne said.

Today, Champagne has a fleet of over 100 specialized trucks that provide everything needed for on-location filming -- from restroom trailers to flatbeds for moving props. He has 14 full-time employees and brings in $5 million a year.

"Our company has probably done 98% of every single project in the state of Louisiana," he said

The young entrepreneur said he really started to notice the industry's growth in 2009, which Stelly confirmed.

"The film industry was pulling itself out of the recession, and [Louisiana] started to see a pick-up in late 2009 and 2010," Stelly said.

Related: Women take on manufacturing

Wingate Jones was poised to take advantage of this recovery.

"I opened up Southern Costume Company to fill the niche that I saw," said Jones, who had worked in the wardrobe department of films in California and saw that Louisiana didn't have a costume shop catering to the film industry.

"I bought a bunch of stuff in California and a trunk load [of garments] from different studios to bring into New Orleans," said Wingate, who invested around $60,000 to start the business.

He offers on-site tailoring, production rentals as well as costume rentals for the general public, especially during Mardi Gras. Jones said the movie portion represents over a third of the shop's business.

"The motion picture and television industry has helped me keep afloat," he said, estimating that he's rented to about 90% of the productions in New Orleans and 30% of those in Louisiana.

The industry shows no sign of stopping its love affair with Louisiana. The Southern Costume Company outfitted Dallas Buyer's Club, 12 Years a Slave, and is currently working on the latest installments of Terminator and Fantastic Four.

"I think we will meet or exceed those number that we had last year," Stelly said. "It's just kind of one of those states that kind of allows the artistic spirit to thrive."

First Published: July 25, 2014: 9:13 AM ET

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TGIF? Nope. Stocks fall in early trading

NEW YORK (CNNMoney)

The S&P was down about 0.5% in early trading. So was the Dow, which works out to about a 100 point drop. The Nasdaq fell too, largely due to a more than 11% drop in Amazon (AMZN, Tech30) following its latest earnings. Here's what you need to know.

Amazonian drought: Amazon's sales jumped more than 20% but it also reported a $123 million loss. Some investors may be growing tired of Amazon's long history of quarters where it loses more than expected due to big investments.

The company has been spending a lot this quarter, unveiling products and services like the Fire TV, Fire Phone and Sunday delivery..

Related: See how Amazon compares to other companies in CNNMoney's Tech30

Fox aims sky-high: 21st Century Fox (FOXA) merged its BSkyB cable assets in Germany and Italy with BSkyB in England, freeing up $8.3 billion in cash. The market thinks that the money might be put to use to help Rupert Murdoch's Fox make a higher bid for Time Warner (TWX), which Fox has sought to buy for $80 billion. Time Warner turned down the offer. Fox and Time Warner shares were flat Friday.

Related: Time Warner shares skyrocketed when Murdoch's offer went public

IPO Loco: Today will be the first day of trading for El Pollo Loco (LOCO), whose shares priced at $15 per share, the higher end of its IPO range. The company has a lot of debt and isn't exactly Chipotle (CMG), but it has ambitious expansion plans and healthy IPO market behind it. Four other companies are due to debut Friday.

Related: Are healthy chicken and a tiny profit enough to take El Pollo Loco nationwide?

International Markets: Asian markets ended the day mixed, but Japanese stocks surged 1.13% after data shows inflation may finally be returning to the long-dormant economy. European stocks are broadly lower in afternoon trading, with the FTSE 100 down about 0.2%.

First Published: July 25, 2014: 9:57 AM ET

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Russians pay higher price for isolation

Russia's central bank jacked up interest rates for the third time since March.

LONDON (CNNMoney)

The country's central bank jacked up interest rates Friday for the third time since March, taking them up to 8%.

With inflation running at 7.5%, it had little choice.

The crisis has led investors and companies to yank money out of Russia. This has crushed the ruble and raised the cost of imports -- helping to drive prices higher.

The government hopes that higher rates will make it more attractive for businesses to keep money in Russia. However, it also means that both consumers and companies will have to pay more to borrow money. It raises the risk that the economy will sink further into recession.

The ruble has fallen 6% against the dollar so far this year, while Moscow's main stock market has dropped 7.6%.

Both were under pressure again on Friday.

Russia's $2 trillion economy slowed dramatically this year as cash flooded out of the country in response to the threat of tough financial sanctions.

The central bank said growth in the second quarter was close to zero. The IMF predicts stagnation this year -- other economists are much more pessimistic.

Even before the shooting down of a Malaysian passenger jet over eastern Ukraine last week -- blamed by Western governments on pro-Russian rebels -- the U.S. had cut off access to long-term financing for two Russian banks and two energy companies.

Europe has been much more reluctant to adopt tough sanctions, partly due to its heavy dependence on imports of Russian energy.

Still, the EU warned Moscow Tuesday that it could prevent Russian banks and businesses from raising finance in Europe if it didn't act fast to ease tension in eastern Ukraine and cooperate with the investigation into the downing of the plane.

Diplomats were meeting Friday for a second consecutive day to draft details of new sanctions, but a decision on whether to proceed is unlikely before next week.

First Published: July 25, 2014: 9:22 AM ET

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#DetroitWater campaign wants you to pay residents' past-due bills

Detroit's looming water shutoffs spark a social media campaign and an app to connect donors with residents behind on their bills.

NEW YORK (CNNMoney)

The Detroit Water Project connects donors with Detroit residents who are delinquent on their water payments. The website lets donors submit direct payments to the Detroit Water and Sewerage Department.

The campaign's #DetroitWater hashtag is helping to spread the word about the initiative, and it has been tweeted thousands of times. More than 300 Detroit residents have registered for the Detroit Water Project, and the campaign has received contributions from 2,400 donors.

The city's ongoing practice of shutting off the water of Detroiters who have bills over 60 days past due or owe at least $150 has sparked controversy. Last week, on the one-year anniversary of Detroit's historic bankruptcy filing, residents took to the streets to protest the city's water shutoffs.

Related: Why Detroit filed for bankruptcy

In June, the United Nations released a statement calling Detroit's disconnection of water services to thousands of customers an affront to human rights. Citing the struggling city's high poverty and unemployment rates, the UN said the shutoffs for Detroiters who genuinely can't afford to pay off their bills a is violation of the right to water.

On Monday, the water shutoffs were temporarily suspended for a 15-day grace period.

Related: How Detroit's bankruptcy impacts my life

The founders of the Detroit Water Project met and conceived of the project over Twitter. Engineer and Code for America fellow Tiffani Bell, and Kristy Tillman, a design director for a start up, collaborated remotely from Oakland and Boston. Three days after their initial tweet back and forth, Bell and Tillman had their first donor on the site.

"We wanted a way to make immediate impact to provide relief to Detroit residents," said Tillman, noting that many existing crowdfunding options require recipients to wait until the end of a campaign to receive the donations. "Technology is merely a tool. How it's used depends on who's wielding it."

First Published: July 25, 2014: 7:04 AM ET

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