Reporter behind story of $72 million teen trader stays at NY Mag

NEW YORK (CNNMoney)

Jessica Pressler was slated to join the Bloomberg News investigative unit, but got caught up in controversy this past week following a story she wrote about a New York City high school student who said he'd made $72 million trading stocks. (Spoiler alert: He hadn't.)

New York Magazine's editor-in-chief Adam Moss told his staff Friday in an announcement that reporter Jessica Pressler would be staying at the magazine.

"Can't say that we expected things to turn out this way, but we feel very lucky to be keeping [Pressler] on, and look forward to publishing more of her with pride," Moss wrote in the memo, which was first published by Capital New York. New York Magazine confirmed the authenticity of the memo to CNNMoney.

Pressler's profile of Stuyvesant High School senior Mohammed Islam stirred up controversy and plenty of doubters from the start.

A front page piece about the story by the New York Post and a flurry of Facebook (FB, Tech30) shares later, the improbable tale unraveled quickly. Islam told the New York Observer on Monday that he never actually made any money at all. As the criticism mounted, Pressler defended her reporting.

"I still think the piece is skeptical enough," Pressler told CNNMoney Monday. "The story says, 'This is a rumor and draw your own conclusions.'"

People began to wonder whether Pressler would move to her new job as early as Tuesday, when blogger Jim Romenesko published an email he sent to Bloomberg questioning the company's plans to hire her. A Bloomberg spokesperson declined to comment to Romenesko at the time, and Bloomberg again declined to comment Friday to CNNMoney.

Pressler seems to be taking it all in stride, tweeting Friday, "Good news is I'm staying @NYMag. Bad news is I lost a shoe at holiday party; not the worst thing this week but annoying so if you see it lmk."

First Published: December 19, 2014: 6:41 PM ET

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'Colbert Report' says goodbye with record ratings

NEW YORK (CNNMoney)

On Thursday, 2.5 million viewers watched as Stephen Colbert ended his very popular satirical news show, "The Colbert Report."

This made the finale the most-watched episode in the show's history.

And that number may even grow considering that "The Report" was shown at 11:30 at night, and many viewers may watch the sendoff days later thanks to their DVRs.

After nine years, Colbert said goodbye to his patriotic pundit persona in grand fashion.

First by killing his guest, The Grim Reaper AKA Grimmy, and then riding off into the night with Santa Claus, Abraham Lincoln and Jeopardy's Alex Trebek.

However, Colbert wasn't the only one who said goodbye to the character.

In a nearly five-minute sing along to "We'll Meet Again," Colbert was joined by a stage full of people singing Colbert's persona off into the sunset.

This included the Daily Show's Jon Stewart, musician Randy Newman, ESPN's Keith Olbermann, actor Bryan Cranston, NBC's Tom Brokaw, New York City mayor Bill de Blasio, "Star Wars" director George Lucas, CNN's Christiane Amanpour, and even Sesame Street's Cookie Monster.

Colbert will be taking over the CBS "Late Show" from David Letterman sometime in 2015. The show will be owned by the network.

As for Comedy Central, it will fill Colbert's slot with the new "The Nightly Show starring Larry Wilmore" starting on January 19.

First Published: December 19, 2014: 6:19 PM ET

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How has middle class Christmas changed?

NEW YORK (CNNMoney)

CNNMoney wants to know what was under your Christmas tree 30 years ago (Think: Trivial Pursuit, Cabbage Patch dolls, Transformers) and what are you wrapping this year (Think: iPhones, Fitbits and PlayStation)?

Do you, your kids or grandkids expect more expensive presents nowadays? Is it more than you gave or received 30 years ago?

Tell us about it.

First Published: December 19, 2014: 7:40 PM ET

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Texas is in danger of a recession

NEW YORK (CNNMoney)

The shale oil boom has been a blessing to Texas, making the state an economic standout during the past few years of ho-hum U.S. growth.

But oil's dramatic plunge below $55 a barrel is scaring the shale industry. Since some wells are unprofitable at lower prices, shale companies will be forced to dial back capital spending and cut jobs.

While cheap gas is likely to be a net positive for the U.S., Texas is poised to take a hit because of the pivotal role that oil plays in the state's economy.

"We think Texas will, at least, have a rough 2015 ahead, and is at risk of slipping into a regional recession," Michael Feroli, JPMorgan Chase chief U.S. economist, predicted Thursday.

Texas has become a dominant oil producer, boosting its share of U.S. crude production from 25% to more than 40% over the past five years.

That heavy exposure to crude should go from a big positive to a big negative. Crude oil traded above $100 in June. Now the price is about half that at $54.

Related: 3 things Rick Perry should know about income inequality

1986 all over again? The current situation has echoes of 1986, when oil prices collapsed and caused a painful recession in Texas but the rest of the country kept humming along.

"The labor market response was severe and swift," said Feroli, pointing to a two-percentage point jump in the state's unemployment rate from January to March of 1986 alone.

Of course, it's not entirely the same. As Feroli concedes, natural gas prices aren't collapsing now like they did in 1986, exacerbating the industry's problems.

Also, the oil industry has undergone dramatic technological changes that have make extraction profitable at lower and lower prices.

Related: Cheap gas is like a $60B tax cut

Real-estate, banking fallout: Still, JPMorgan believes Texas will bear the brunt of the pain caused by the oil meltdown, along with North Dakota, America's second-largest crude producer. .

"There are some reasons to think that it may not be as bad this time around, but there are even better reasons not to be complacent about the risk of a regional recession in Texas," Feroli wrote.

The fallout of a recession in Texas could throw cold water on the state's hot real estate market and cause pain for regional banks.

Home prices shrank 14% from their peak during the 1986 recession and hundreds of banks were forced to shut down, JPMorgan said.

Representatives from Texas Governor Rick Perry's office were not immediately available to comment on the report.

First Published: December 18, 2014: 3:38 PM ET

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Toyota's futuristic, freaky fuel-cell car

NEW YORK (CNNMoney)

It is kind of ugly.

Toyota's designers wanted an appearance that clearly showed this car is something different. Score one there.

They also wanted a design that would never grow boring now matter long the car was on the road or how many of them you saw. Two wins for the Toyota design team.

Hydrogen fuel cell vehicles, this one included, have a lot going for them. You fill up with compressed hydrogen gas -- that takes about five minutes -- then a fuel cell stack in the car combines that hydrogen with oxygen from the atmosphere in a process that makes water (H₂O) while throwing out a stream of electricity. So, as with a plug-in electric car, you get no nasty emissions from the car plus it takes only a few minutes, not hours, to "recharge" for a full 300 mile range.

The most obvious downside is... Hydrogen? They don't sell that down at the Shell station, do they? No, unless you live in California, they almost certainly don't. But Toyota and a few other automakers with hydrogen vehicles to sell are working to make hydrogen at least a little easier to get. And they're also working on environmentally friendly ways to make pure hydrogen gas.

Related - Hydrogen cars: A zero-emission long-shot

Making hydrogen is where a lot of the controversy comes in. While hydrogen is the most abundant element in the entire universe it just happens to be a particularly friendly element, too. It doesn't naturally hang out by itself. That means it has to be split out from some other substance like water or, very often, natural gas.

Wait... Natural gas? That means fracking! Fracking is an extremely controversial method of getting natural gas out of the earth's crust. It makes a lot of people very, very angry.

But hydrogen doesn't have to be made from natural gas taken out of the ground. For instance, there are hydrogen fueling stations that make hydrogen from the gases produced by rotting garbage or even the stuff you flush down the toilet. Yeah, I know. Nasty. But at least they're making good use of it.

Then there's the way the hydrogen is extracted from gas or water. To get hydrogen out of whatever it is in you have to apply energy. That's sometimes done with electricity but most often by applying heat from something like burning natural gas. And , again, that gas could come from sources other than the earth.

Now, about the car itself... Toyota touts the Mirai as a fun-to-drive car and, in a weird way, it sort of is. Despite a supposedly low center of gravity, thanks to heavy batteries, it is still a tall car and it wobbles through turns. The up-side of the Mirai's canoe-like rocking is that the ride is quite comfy. The backseats are also roomy and fairly comfortable.

Seen from the inside -- which is really the best way to see this car -- the Mirai could almost be a Lexus. The futuristic interior with its gear selector toggle has a hint of Prius about it but the overall quality and construction seem up to luxury car standards or at least really close.

With an advertised zero-to-60 time of nine seconds, the Mirai is a shade slower than the average boring family car. That zero-to-sixty time doesn't really tell the story, though, at least in terms of how the Mirai feels. Electric motors deliver their full pulling force as soon as you step on the pedal unlike gasoline engines that have to wind up a bit to really start pulling. So electrically driven cars can feel peppy and fun even in cases where, by standard measures, they're not.

The Mirai will go on sale late next year, initially only in California but in more states soon after as Toyota (TM) joins Honda (HMC) and Hyundai (HYMTF) in offering limited numbers of hydrogen fuel cell vehicles to the public. The Mirai will not be cheap, though. Prices will start at $57,500. In California, after federal and state incentives, that translates to $44,500. You can also lease one for about $500 a month. That's a lot of money for something that is, after all, a fairly small Toyota. But you will, very likely, be the only one on your block with a Mirai dripping freshly made water onto your driveway.

First Published: December 18, 2014: 3:45 PM ET

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Uber agrees to temporarily suspend service in Portland

NEW YORK (CNNMoney)

The company said it would stop picking up customers there for three months after the city sued, asking a judge to order Uber to stop operating until it is in compliance with safety, health and consumer protection rules.

But Uber fully expects to be back. In fact, this could be good news for Uber fans in the long-run.

The city has agreed to update its laws, creating a new regulatory framework for companies like Uber that tend to fall somewhere between a taxi and a ridesharing service. People use it by requesting a driver with a smartphone app.

Related: Uber's global ambitions hit roadblocks

Uber, which operates in 60 cities across 21 countries, has run into problems because its drivers do not always meet the city's regulations for taxi and car services.

Last week, for example, a judge in Spain temporarily blocked Uber because the Madrid taxi service said it was unfair to competition and not properly licensed.

The mayor's office said it will set up a task force and present its findings at the April 9 council hearing. If new regulations are not available by then, the city will allow Uber to operate while it continues to work on the new regulatory framework.

Uber will stop picking up customers in Portland on Dec. 21, but said it will still operate in other parts of the metro area, including Beaverton, Gresham, Hillsboro and Tigard.

First Published: December 18, 2014: 7:13 PM ET

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Cuba poised to join the Internet age

NEW YORK (CNNMoney)

Internet access in Cuba is heavily restricted and the cost is well above what most Cubans can afford. Just 5% of Cubans have unfiltered access to the Internet, according to Freedom House, a watchdog group.

But all that could change now that President Obama has begun easing decades-old trade restrictions with the Communist country.

The White House will begin allowing telecommunications companies to help upgrade Cuba's telecom and Internet service. It is also allowing the export of certain devices and software that will help expand Internet use on the island.

Obama said U.S. sanctions on Cuba over the past 50 years "have denied Cubans access to technology that has empowered individuals around the globe."

"So I've authorized increased telecommunications connections between the United States and Cuba," he continued. "Businesses will be able to sell goods that enable Cubans to communicate with the United States and other countries."

As part of the landmark deal, U.S. contractor Alan Gross was freed after being held by the Cuban government since 2009. Ironically, Gross was arrested after traveling under a program to deliver satellite phones and other communications equipment to the island's small Jewish population.

Cuban officials charged he was trying to foment a "Cuban Spring." In 2011, he was convicted and sentenced to 15 years in prison.

Just 5% of Cubans have unfiltered access to the Internet. But that could change now.

Related: The promise for American businesses if Cuba sanctions are lifted

Only one quarter of Cuba's 11 million inhabitants have access to the Internet, according to the International Telecommunication Union. That puts Cuba slightly ahead of Swaziland, Kyrgyzstan and El Salvador in terms of Internet penetration.

But most Internet users in Cuba only see information available on a government controlled intranet, which consists mainly of a national email system, domestic websites and some foreign websites that are supportive of the Cuban government.

Cuba opened a new fiber-optic cable in 2013, which helped improve Internet speeds and wireless access at a few locations. But the nation's Internet and cellphone business has been dominated by the state-owned telecommunications company, Etecsa.

So, will American telecommunication companies jump at this opportunity.

It's too soon to tell.

AT&T (T, Tech30) and Sprint (S) declined to comment, while Verizon (VZ, Tech30) said it remains focused on its U.S. customers.

Vodafone, the British telecom giant, and Mexico's American Movil are among the other companies that could also be eyeing expansion in the Cuban market. T-Mobile (TMUS) did not immediately respond to requests for comment.

First Published: December 17, 2014: 4:05 PM ET

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Americans send $2 billion a year to Cuba

NEW YORK (CNNMoney)

Most of it came from Cuban-Americans sending money home to their families. But now, anyone in the U.S. can send up to $8,000 a year to just about anybody in Cuba, as the Obama Administration eases restrictions with the Communist country.

"You can really see the impact this money is having on the island," said Alana Tummino, director at the Americas Society and Council of the Americas.

The money is often going to small, private businesses.

Yes, even though Cuba is a Communist country, it has moved towards a more private economy in recent years.

Related: Why I changed my mind about Cuba

There are now close to 500,000 people with state-issued private business licenses for everything from restaurants, to nail salons, to coffee shops and mechanics, Tummino said.

It remains difficult for these business owners to get loans, but that has been made easier with remittances from the U.S.

The Obama Administration has eased restrictions before.

In 2009, Cuban-Americans could begin sending as much money home as they wanted. Other Americans could begin sending money to Cubans they weren't related to in 2011 -- but the amount was capped at $500 every three months.

Now americans can send up to $8,000 a year to Cuba.

Related: The promise for American businesses if Cuba sanctions are lifted

The changes announced Wednesday raise the cap to $2,000 every three months.

At Western Union (WU), a money transfer can be made from the U.S. to Cuba much like one to someone in any other country.

"I think you're going to see a lot more people sending money, bolstering the Cuban economy," Tummino said.

First Published: December 17, 2014: 5:52 PM ET

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Sony downplays digital 'Interview' possibility

NEW YORK (CNNMoney)

Or maybe not. On Wednesday night, after Sony (SNE) canceled the film's planned Christmas Day release of the controversial film, the embattled studio also discouraged speculation that it might release the film digitally.

"Sony Pictures has no further release plans for the film," a studio spokesperson said in response to questions about digital distribution.

It's understandable why the digital possibilities were considered. Sony could have pursued streaming services like Netflix (NFLX, Tech30) and video-on-demand cable services like the one operated by Comcast (CCV).

"Sony should fight fire with fire: Make 'The Interview' available online, for free, on every pirate site in the world. In HD," said Digital Disrupton author James McQuivey in a tweet to CNN's Brian Stelter.

Plenty of studios release straight to streaming and pay-TV all the time, but usually with smaller, low-budget films.

For instance, the sequel to the 2000 hit "Crouching Tiger, Hidden Dragon" is slated to be released simultaneously in theaters and on Netflix (NFLX, Tech30) in August 2015.

"The Interview" could have been a pioneer -- a landmark moment for digital distribution -- but Sony's comment on Wednesday night seemed to preempt the idea.

First Published: December 17, 2014: 4:50 PM ET

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Jack Ma made $18.5 billion this year

Thanks, Wall Street.

NEW YORK (CNNMoney)

Alibaba (BABA, Tech30) founder Jack Ma made more money than anyone this year, increasing his wealth by 173% -- a gain of $18.5 billion -- according to a list of the year's biggest winners and losers, from the research firm Wealth-X.

Ma, a former English teacher who started the Chinese online marketplace with $60,000, is now worth a total of $29.2 billion. His banner year is tied to Alibaba's IPO in September -- the biggest IPO ever.

Second on the winners list is Warren Buffett, whose savvy investing netted $13.5 billion so far in 2014 -- a gain of 23%. The Berkshire Hathaway (BRKA) chairman is now worth $72.6 billion.

Bill Gates, the world's richest man with a fortune of $83.1 billion, comes in at No. 3. Gates made $10.5 billion this year. While Gates founded Microsoft (MSFT, Tech30), most of his money now comes from a variety of investments, including Buffett's Berkshire Hathaway (BRKA).

Rounding out the top five are Facebook (FB, Tech30) founder Mark Zuckerberg, who made $8.4 billion, and Swiss telecom magnate Patrick Drahi with a $5.1 billion gain.

The biggest losers

It was a bad year to be a Russian energy tycoon.

Leonid Mikhelson, the biggest shareholder in Russian natural gas firm Novatek, saw his net worth go from $17 billion to $10 billion -- a decline of 41%.

His ill fortune was attributed to plunging oil prices, Russia's free-falling currency and Western sanctions imposed over the trouble in Ukraine.

Related: Who loses if Russia implodes

The second biggest loser is Japanese businessman Masayoshi Son, head of Softbank, the parent company of U.S. telecom firm Sprint (S). Son lost $5.9 billion last year, or 31% of his fortune.

Casino owners Lui Chee Woo and Sheldon Adelson, as well as Amazon's (AMZN, Tech30) Jeff Bezos, rounded out the losers list. Each saw their net worth shrink by roughly $5 billion.

First Published: December 16, 2014: 6:07 PM ET

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