Time is running out for RadioShack

NEW YORK (CNNMoney)

The company is saddled with more than 5,000 stores, many of which it can't afford to keep open.

Unfortunately for Radio Shack, the company is so cash-strapped that it can't afford to close them, either.

Closing stores is an expensive undertaking. It requires cash for paying severance, liquidating merchandise and paying penalties to exit leases early.

Management announced a plan earlier this year to close about 1,100 stores, but it has only been able to come up with enough cash to close 175 stores through the end of October. It is currently battling with its lenders to get the green light to close more stores.

Once upon a time RadioShack (RSH) bragged about its network of stores, saying that 90% of the U.S. population lives or works within a few minutes of a RadioShack location. But today, when people can easily order the items online, those brick-and-mortar stores are dead weight. The stores are so close to one another they are essentially completing with themselves and are dragging the company down to its third-straight year of losses.

As sales have plunged in recent years, losses mounted. It burned through all but $43 million of its cash as of Nov. 1, down from the nearly $300 million it had a year ago.

Even counting its credit lines it only had $63 million available heading into the Christmas shopping season. It needs $100 million in combined cash and available credit by Jan. 15 or its major creditors can pull the plug on the long-term financing it needs to survive.

The company's own Super Bowl ad early this year poked fun at how its hopelessly out of date its stores are. But like much else at the chain, it hasn't had the funds it needed to update those stores.

Jennifer Warren, the chief marketing officer behind that ad campaign, left the company for another job a week before Christmas. The company also lost its chief financial officer in September and has two different outside consultants holding that key job as it tried to negotiate new deals with lenders.

RadioShack goes back to 1921, when it opened a store and mail-order operation in Boston to serve the needs of radio officers aboard ships. It was bought in 1963 by the Tandy Corporation, a retailer that had started as a supplier of leather shoe parts to shoe repair shops.

Related: Wireless war: Consumers win, investors lose

For a time it prospered from Americans' growing love affair with technology, introducing one of the first mass-market personal computers, the TRS-80, in 1977, and one of the first laptops, the Model 100, in 1983. It also was an early seller of both cell phones and satellite television systems.

"Up until the early 2000's, they were riding tremendous momentum, and they kept opening more and more stores," said Robin Lewis, a retail expert and co-author of The New Rules of Retail . "They didn't understand how a lot of their business could be taken away by Amazon (AMZN, Tech30). And even if they had time and money to close stores, they haven't done enough to differentiate themselves from other places you can buy a smartphone."

First Published: December 29, 2014: 6:21 AM ET

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7 top stocks to buy for 2015

NEW YORK

To help you find solid stock ideas we asked Motley Fool contributors covering technology and consumer goods stocks to talk about top stocks for 2015.

1. Ashraf Eassa likes Qualcomm: It's hard not to be pleased with the performances of technology and, in particular, semiconductor stocks in 2014. The Philadelphia Semiconductor Index is up over 28% year-to-date, handily crushing the S&P 500 and the Nasdaq, up about 13% and 15%, respectively. However, one high-quality chip company that has underperformed pretty significantly during 2014 -- but one that I believe is set to do much better in 2015 -- is Qualcomm (QCOM, Tech30).

Related: Warren Buffett Tells You How to Turn $40 Into $10 Million

First, Qualcomm's execution in developing and delivering a compelling range of mobile applications processor offerings looks unmatched. For example, the company revealed on Dec. 11 that it would be upgrading the baseband on its upcoming high-end Snapdragon 810 processor to offer 50% greater download speeds than had been previously announced. This further extends the company's leadership position in cellular baseband technology.

It's this kind of execution in its chip business that not only keeps it ahead of major competitors like MediaTek, but also makes it very difficult for mobile device vendors to successfully develop their own in-house chip solutions in a bid to cut Qualcomm out.

Further, Qualcomm's technology licensing business, which collects royalties on most 3G/4G devices sold, is extremely profitable and should continue to grow with overall smartphone growth. Now, it's well-known that Qualcomm is having issues collecting on royalties from some Chinese handset vendors (leading to pessimism around the business), but I think Qualcomm will be able to solve its issues there, as it has done in the past.

Related: Smartphone maker you never heard of valued at $45 billion

All told, Qualcomm stock is cheap at just 16.36 times trailing-12-month earnings, it's a high-quality company, but the stock has underperformed during 2014. Qualcomm the company is a winner, and I think that during 2015, Qualcomm the stock will be, too.

2. Andrés Cardenal likes Google: Information is power and Goggle (GOOGL, Tech30)'s mission statement, "to organize the world's information and make it universally accessible and useful" says a lot about the company and the role it plays in times of chaotically abundant information.

Google is the undisputed king in online search; the company has a bigger market share than all its competitors combined. In addition, Google has built a massive portfolio of services and applications, including enormously valuable assets like Gmail, YouTube, and Chrome, to name a few remarkable examples. More than 80% of smartphones around the planet are powered by Android, so Google is in a position of strength to continue thriving under the mobile paradigm.

Related: 8 Pieces of Timeless Advice from the "Sage of Wall Street"

The company generates tons of cash flows from its leadership position in online advertising, and management is not shy at all when it comes to investing that money in the search for breakthrough innovations. From self-driving cars to biotechnology solutions to fighting human aging and associated diseases, Google has plenty of exciting projects with disruptive potential in its pipeline.

Investors are getting concerned about slowing revenue growth and rising expenses lately, and this may provide a buying opportunity in the online search giant. Google trades at a forward P/E ratio near 17.5, roughly in line with the S&P 500 Index. However, even during a "disappointing" third quarter, Google delivered a big increase of 20% in revenues, a level of performance which most companies in the index can only envy. Google has a lot of things going right and I think Google is a top stock to consider buying for 2015.

3. Tamara Walsh likes WhiteWave Foods: From smart acquisitions to promising opportunities in oversees markets such as China, hiteWave Foods (WWAV) is one of my favorite stock picks heading into the new year. The packaged food and beverage company has enjoyed a nice run this year with the stock up more than 47% year-to-date. However, there should be plenty of growth ahead thanks to WhiteWave's partnership with Mengniu Dairy, one of China's largest dairy companies.

Related: 10 food trends set to dominate 2015

As part of this joint venture, WhiteWave purchased a production facility where it plans to begin manufacturing its products for the Chinese market in the coming months. WhiteWave Foods owns a 49% stake in the deal, which will enable the company to sell its brands in China, one of the world's largest consumer markets with over 1.3 billion consumers and a rapidly growing middle class.

Market-leading brands including Silk soy milk and almond milk, Land-o-Lakes butter, and International Delight coffee creamers, have already helped WhiteWave Foods make a name for itself in North America and Europe. The company celebrated a record third quarter recently, with net sales climbing 35% to $857 million in the period. I expect this momentum to carry over into the new year, and for the stock to continue to gain speed in the year ahead as the company expands into new markets and product categories.

4. Rick Munarriz likes SeaWorld Entertainment: I'm going to go full contrarian with a stock that everybody seems to hate. SeaWorld (SEAS) is in a bad spot these days. Activists have succeeded in keeping guests away from its marine life theme parks given the negative publicity about killer whales in captivity. Attendance across its 11 parks fell 4.1% in 2013 and is off by another 4.7% through the first nine months of 2014. This is the only theme park or regional amusement park operator that's experiencing lower turnstile clicks this year.

The stock that went public at $27 early in 2013 is now all the way down to the mid-teens, and earlier this month it announced that it would have to postpone the dividend that was supposed to go out in December because it would violate its debt covenants.

Related: Apple Television Rumors Are Back. Ignore Them

This all seems pretty grim, but changes are coming. SeaWorld's CEO is leaving in January, opening the door for an outsider who can help soften the battered brand. Along the way we have some favorable trends including an improving economy and lower gas prices that should deliver big boosts to the theme park industry in general.

SeaWorld is in a bad spot, but it's also important to remember that just three of its parks are orca-housing SeaWorld attractions. The dividend should return in January, and guests will eventually follow as the chain either takes active steps to improve its image or fickle consumers move on to a new cause. With SeaWorld trading at a valuation discount to its peers there's plenty of upside in 2015 even if the market doesn't comply. The climate is ripe for SeaWorld to make a big splash in the year ahead.

5. Dylan Lewis likes Apple: It's far from a sexy pick, but most who have bet against Apple (AAPL, Tech30) the past five years have come to regret it and I don't see 2015 being any different.

Apple's brand cachet and customer loyalty hasn't wavered -- while the company's iPad line is faltering, Macs are selling well. In October the company revealed the segment posted its highest quarterly market share since 1995.

Related: How we made nearly $1 million on Apple stock

Apple's brand prestige is even more valuable in the increasingly competitive smartphone market as Asian OEM's Xiaomi, Lenovo, and Huawei continue to produce low-cost devices. Skeptics need to look no further than Samsung's shrinking smartphone market share to appreciate the moat Apple enjoys due to its status, quality, and exclusive iOS and Mac operating systems.

The recent December sell-off gives investors an even more attractive entry point, the company still trades at a trailing P/E of 17 and a forward P/E of 14.

Even in the neighborhood of some of the more conservative analyst estimates of 5 million to 10 million units, the Apple Watch could provide a 1%-3% lift on projected revenue for CY 2015. The fledgling Apple Pay now supports credit cards that comprise 90% of the U.S. credit card purchase volume and could prove to be an even bigger catalyst than the new line of wearables. With each e-commerce security breach (it seems like there's one almost every other week), Apple Pay's tokenization system becomes increasingly appealing to consumers seeking security.

Stability with its hardware stalwarts, new growth opportunities, a decent dividend yield (1.7%) and an average of $11 billion in stock repurchases each quarter for the past year and a half -- there are simply too many reasons to ignore the Mac maker in 2015.

Related: The One Major Investing Mistake You're Making

6. Tim Brugger likes Facebook: With its stock price up 38% so far this year, it may seem counterintuitive to include Facebook (FB, Tech30)on a list of stocks to buy in 2015. However, there are a laundry list of revenue opportunities at Facebook's fingertips heading into the new year, and it appears a couple in particular are about ready to pay off.

Though Twitter is loath to admit the importance of the milestone, the news that Instagram recently topped 300 million monthly active users (MAUs) is significant, to say the least. Perhaps most impressive is how quickly Instagram's MAUs grew. The number was hovering around 200 million users just nine months ago. No wonder Twitter's envious.

Facebook COO Sheryl Sandberg made waves earlier this year when she said that there was no rush to monetize Instagram in any meaningful way, nor incorporate video spots as an advertising medium. Instead, Sandberg and CEO Mark Zuckerberg wanted to grow Instagram's user base, ensure a positive user experience, and test the video ad waters -- at a whopping cost of $1 million a day -- before making them available to its marketing partners. The MAU growth of Instagram is certainly there, and with the advent of video ads on both Facebook and Instagram, 2015 should be yet another banner year.

Related: Twitter needs to find its Sheryl Sandberg

7. Sean O'Reilly likes Taiwan Semiconductor: Technology can be a tough business to be in for investors. The relentless competition and constant need to innovate frequently make long-term shareholder gains elusive. However, Taiwan Semiconductor (TSM) not only dominates its market but happens to be leveraged to an increasingly important technological trend making it my top stock pick for 2015.

Taiwan Semiconductor is the world's largest fabricator of silicon chips. The company pioneered the dedicated semiconductor foundry model and operates primarily by partnering with fabless customers that don't have the scale and operating expertise that Taiwan Semiconductor possesses. Cost advantage and scale are the name of the game and these happen to be things that Taiwan Semiconductor has in spades. These advantages will become all the more apparent as the world's need for semiconductor chips grows exponentially in the coming years.

Related: Social Security: 5 Facts You Must Know

As the world becomes more and more connected (a trend called the "Internet of Things"), Taiwan Semiconductor stands to benefit in a big way. Technology research organization Gartner estimates that 4.9 billion connected "things" will be in use in 2015, up from 3.75 billion in 2014. Gartner's estimate for 2020? Try 25 billion connected devices. Investors have two ways to participate in this increasingly connected world: Focus on those that produce the connected devices, or the companies that make connecting these devices to the internet possible, like Taiwan Semiconductor.

There's a lot to like on Taiwan Semi's balance sheet and income statement as well. The company trades for just under 14 times this year's estimated EPS according to S&P Capital IQ estimates (high for a semiconductor fabricator but more than fair given its dominant industry position) and has a pristine balance sheet with very little debt. Add in the company's exceptional return on equity, which has averaged 23.62% over the last five years and you get a company that should be on every (Motley) Foolish investor's holiday wish list.

First Published: December 29, 2014: 10:18 AM ET

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Get ready for a new Greek drama

Polls show the anti-austerity party Syriza could win the most voter support during upcoming elections in Greece.

LONDON (CNNMoney)

The need for snap elections was triggered Monday after Greece's parliament was unable to secure enough votes to install a new president.

The main Greek stock market index plunged by as much as 11% after the voting results came out, but then recovered slightly. The main indexes in Spain and Italy also dipped by about 2%.

The yield on Greek 10-year government bonds jumped by one percentage point to 9.3%, reflecting growing concern that Greece may be heading for another debt crisis.

Opinion polls indicate the popular anti-austerity party -- Syriza -- could win the most voter support at the upcoming elections. This is a party that wants to renegotiate the terms of Greece's 240 billion euro ($293 billion) bailout package with the International Monetary Fund, European Commission and European Central Bank.

The party has also vowed to reverse many of the reforms that have helped Greece return to economic growth, and said it plans to introduce billions in spending programs that would hike wages and increase pensions.

While Syriza's plans are popular among Greeks who have been hurting from high unemployment and years of recession, experts say they are unrealistic and irresponsible and could trigger a crisis that would ultimately lead to Greece leaving the eurozone.

However, Syriza has been softening its tone recently and says it wants to stay in the eurozone.

Greece's massive bailouts from 2010 and 2012 kept the country afloat and within the eurozone, but left it saddled with a mountain of debt worth about 170% of GDP.

Despite the risks presented by the current situation in Greece, experts think the eurozone is now better placed to cope with another Greek crisis.

"The eurozone could probably handle an unlikely but not impossible Greek accident with no more than very limited and temporary damage," said Berenberg economist Holger Schmieding in a research note written earlier this month.

James Shugg, a senior economist at Westpac in London, echoed this sentiment.

European leaders are much better prepared to deal with a potential Greek fallout, said Shugg.

"This is not the beginning of [another] euro sovereign debt crisis," he said.

The upcoming Greek elections are expected to be held on January 25.

-- CNN's Elinda Labropoulou in Athens contributed to this report.

First Published: December 29, 2014: 6:35 AM ET

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Netflix countdown will help parents fool kids on New Year's Eve

NEW YORK (CNNMoney)

While the childless might be popping champagne and staying out late, 87% of parents are planning to celebrate New Year's Eve with their kids, according to a Wakefield Research survey conducted by Netflix.

Midnight, however, is a bit late for most youngsters. Already, 34% of parents "fool" their kids into thinking it's midnight at an earlier time.

That is why Netflix (NFLX, Tech30) created an on-demand countdown hosted by King Julien, the animated lemur from the company's series "All Hail King Julien." Families can start streaming it any time they please.

The three-minute New Year's Eve countdown includes many of the dancing lemurs from the film and will be available to stream beginning today at Netflix.com.

In a statement released by Netflix, the fictional king of the lemurs proclaimed he was changing the rules so that his young audience can celebrate the holiday.

"Move over, Ryan Seacrest, I've got my very own on-demand countdown party on Netflix," King Julien "said" in a statement.

Related: Netflix speeds jumped 51% this year

The countdown is another piece of Netflix's strategy to have content for people of all ages, especially children.

The company's chief content officer, Ted Sarandos, told CNNMoney's Brian Stelter in October that more than 70 kids shows have been streamed by some 2 million Netflix subscribers this year.

Programs like "King Julien" and an upcoming "Care Bears" series are pivotal in grabbing a loyal audience early on.

"To a 12-year-old boy, Netflix means something completely different than it does to a 5-year-old girl or 40-year-old," Sarandos said at the time.

The first five episode of "All Hail King Julien" launched on Dec. 19.

Related: Netflix sues former executive for kickbacks

First Published: December 29, 2014: 6:01 AM ET

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Prosecco: No longer the 'poor man's Champagne'?

NEW YORK (CNNMoney)

Prosecco sales have been booming in recent years, partly due to its affordability. But that's starting to change. Higher-end Proseccos have entered the market, with prices of as high as $160 a bottle -- and, in some cases, these sparkling wines may even start commanding the same respect as a chilled bottle of Veuve Clicquot.

"Cava and Prosecco are shedding the idea of the poor man's alternative for Champagne," said Chris Deas of New York's Zachys Wine & Liquor, a family-owned wine shop that sells nationwide. "People are becoming more educated and more experienced."

Deas said sparking wine is a "huge growth area" for his business, especially in cities like New York and San Francisco. "There's a hip wine culture in places where the sommeliers are able to educate the buyers who are coming in," he said.

The buyer of a premium bottle of Prosecco will get a sparkling wine that's rich and elegant, with a taste that's derived in part from the soil where the grapes are grown. Rock and clay make up the foundation for grapes grown in the Cartizze zone, for example, which is said to produce superior Prosecco. The up-and-coming Prosecco company Silvano Follador grows its grapes there for its top-shelf bubbly.

Related: Why cook a gourmet meal when you can defrost it?

"Ultra premium" Prosecco, like the one made by the company Altaneve, can sell for $160 a bottle. The grapes that make up that bottle are selected by hand, which the company says insures the grapes are as fresh as possible and require the least amount of preservatives.

But Altaneve is on the pricey side. A Prosecco is typically considered premium once it costs over $20 a bottle, making it a luxury accessible even to the most casual buyer who may usually only spend $10 to $18 on a bottle.

Proseccos from Mionetto and Altaneve are going high-end.

Mionetto, the largest supplier of Prosecco to the U.S., introduced a luxury line in 2013 with that customer in mind. That line tops out at $35 a bottle.

The luxury line currently represents 6% to 7% of Mionetto's total sales. "Our wish is to have the luxury line be about 10% to 15%," said Enore Ceolai, the managing director of Mionetto.

This year, the company sold about half a million cases of Prosecco, and says it has seen a yearly growth rate of about 30% over the last several years.

Ceolai said there's still a lot more room for growth since the number of Americans drinking Prosecco is still small. But of those who are already drinking the sparking wine, he said, "they are ready to taste ultra-premium Prosecco."

Related: Forget wine. It's about about water pairings

An easy way to figure out if a Prosecco is premium quality is to check out if the label has a "D.O.C.G." stamped on it, which means it has been designated a Denominazione di Origine Controllata e Garantita.

The top-tier Proseccos will have that, which basically means it has been made in a certain area in Italy and is analyzed and tested for authenticity by an independent governing body. It's similar to how Champagne can only be labeled "Champagne" if it comes from the Champagne region of France.

However, Prosecco isn't as stuffy as Champagne, and most Prosecco drinkers don't care too much about that stuff.

"It's light, fun and bubbly," Deas said. "Prosecco is more about, 'I have a fun time drinking it...I don't need to open up a high-end Champagne on New Year's Eve.'"

First Published: December 29, 2014: 6:17 AM ET

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Coming in 2015: Uber and Airbnb IPOs?

NEW YORK (CNNMoney)

But 2015 may wind up being an even bigger year for high-profile IPOs.

Controversial ride sharing app Uber could be a monstrous hit on Wall Street if the company decides to go public.

Bad publicity about drivers, tone-deaf comments from executives and mounting legal woes have yet to make a dent in Uber.

The company is already worth more than $40 billion based on its last round of financing. Chinese search engine Baidu (BIDU, Tech30) recently invested in Uber. And Uber is already rumored to be generating about $2 billion in net revenue a year.

Related: It's time for disruptive tech firms like Uber to grow up

Uber is just one of 42 private companies highlighted by venture capital database CB Insights as having likely valuations of at least $1 billion that could be considered IPO candidates for 2015.

Real estate rental site Airbnb, whose rumored valuation of $13 billion makes it worth more than well-known hotel chains Wyndham (WYN), Holiday Inn owner InterContinental Hotels (IHG) and Hyatt (H), is another.

So are cloud storage services Box (which has already filed for an IPO) and Dropbox, social media site Pinterest and payment services companies Square and Stripe.

Snapchat, with a reported value of $10 billion is also being viewed as a hot IPO contender. It's ironic that the app known for disappearing images, videos and text messages may have to enter its finances in a public document that can never be erased.

SpaceX, the rocket company founded by Tesla (TSLA) CEO and SolarCity (SCTY) chairman Elon Musk, also made the CB Insights list. (Three Elon-related stocks could make up a new MUSK ETF!)

Related: Boeing and SpaceX both land NASA contracts

So did Vice Media, the edgy content creator that has the backing of Rupert Murdoch's Fox (FOXA) and A&E Networks.

But it's worth noting that tech IPOs aren't the only ones that are likely to attract big interest.

While Alibaba (BABA, Tech30) and wearable camera company GoPro (GPRO) generated the most buzz among average investors, they were not the top IPOs of 2014.

In fact, several small biotechs were the best IPO performers of 2014 according to Renaissance Capital, a firm that researches and invests in IPOs.

There was strong demand for IPOs in many sectors. Renaissance said that 273 companies went public in 2014. That's the most since the 403 IPOs during 2000 -- the last days of the dot-com boom.

Related: Burger mania hits Wall Street

Restaurant stocks also enjoyed a lot of success this year.

Burger joint Habit (HABT), Mediterranean food chain Zoe's Kitchen (ZOES) and grilled chicken restaurant El Pollo Loco (LOCO) all soared in their market debuts.

With that in mind, Renaissance predicts that Shake Shack, Smashburger and Brazilian steakhouse chain Fogo de Chão could all file for IPOs soon.

It seems like investors are all hungry for the next big restaurant phenomenon like Chipotle (CMG).

So don't be surprised if some of the hottest offerings of 2015 wind up coming fresh out of the oven ... and not Silicon Valley.

First Published: December 29, 2014: 6:19 AM ET

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Did China pull the plug on Gmail?

Gmail activity has flatlined in China. Is the Great Firewall to blame?

NEW YORK (CNNMoney)

Gmail traffic in China tumbled to near zero on Dec. 26 and hasn't budged since, according to Google's transparency report.

Dyn Research, a group of scientists that reports on Internet issues, tweeted that the Chinese government had deliberately blocked Gmail in China, according to its analysis. The research group also said that "blocks" of Google served from Hong Kong have shut down throughout the country.

Google (GOOGL, Tech30) and China have had a testy relationship since 2010, when Google pulled its business out of the country. Google's websites are no longer served in China; instead, its servers reside in Hong Kong, which is not subject to the same censorship laws that the rest of China is.

Google's move to Hong Kong forces China to actively censor or block Google content for its citizens -- something Google said it was no longer willing to do four years ago. Google search, YouTube, photos and maps have all experienced major outages and service disruptions this year, according to Google's transparency report.

This could be latest sign of China's ruling Communist Party exerting its influence on Hong Kong. In recent months, Hong Kong erupted into violent pro-democracy protests.

Related: Why North Korea's economy can't live without China

China's ruling Communist Party has for decades operated a massive censorship project called the Great Firewall of China. Social media platforms including Facebook (FB, Tech30) and Twitter (TWTR, Tech30) are banned, and thousands of websites cannot be accessed from inside China.

Internet stability in the region has been a bit shaky. China's neighbor North Korea lost its Internet connection and went dark on Dec. 22. It was unclear whether the country suffered a massive power outage, or got unplugged by an outside entity.

That came after the FBI accused the North Korean government of hacking Sony Pictures for revenge over its movie "The Interview," which depicts the fictional assassination of Kim Jong Un. The North Korean government denied the allegations.

First Published: December 29, 2014: 7:55 AM ET

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AirAsia shares slide after plane vanishes

HONG KONG (CNNMoney)

Company shares trading in Malaysia closed down nearly 8%, recovering from an early decline of more than 12%.

The search for the missing plane, which lost contact with air traffic controllers early Sunday morning, has resumed in the shallow waters of the Java Sea between the islands of Belitung and Borneo.

Indonesia's top rescue official said authorities believe the missing jet is likely at the bottom of the sea.

Related: Search resumes for missing AirAsia Flight

CEO Tony Fernandes addressed the crisis on Twitter, saying the low-cost airline will do whatever it can to help.

"This is my worse nightmare," Fernandes said. "My only thought(s) are with the (passengers) and my crew. We put our hope in the SAR operation and thank the Indonesia, Singapore and Malaysian governments," he wrote, referring to the search-and-rescue effort.

Led by the outspoken Fernandes, AirAsia pioneered the low-cost airline model in Asia, delivering rapid growth as it undercut bloated legacy carriers in the region. The airline offers few free perks, and saves money by encouraging passengers to check themselves in.

Related: AirAsia CEO takes to Twitter fast in wake of tragedy

Fernandes has been with the company since its earliest days. In 2001, the former music executive and several partners bought the unprofitable air travel business -- it owned just two planes -- for 1 Malaysian ringgit, or around U.S. $0.25.

The airline is strongest in Southeast Asia, where it has built a huge network of routes between Malaysia, Thailand and Indonesia. AirAsia is frequently named the best low-cost airline by industry group Skytrax, an distinction it won again in 2014.

The carrier's workhorse aircraft is the Airbus A320, a narrow-body model that is ideal for short and medium-range routes between Asia's regional airports. The missing plane is an Airbus A320-200, a variation that offers an extended flight range.

The airline boasted a clean safety record until the disappearance of Flight 8501, which departed from the Indonesian city of Surabaya. The missing aircraft was operated by AirAsia's affiliate in Indonesia.

First Published: December 28, 2014: 9:18 PM ET

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Smartphone maker you never heard of valued at $45 billion

NEW YORK (CNNMoney)

Lenovo? LG? Nokia? Sony (SNE)? No, no, no and no. It's a Chinese company called Xiaomi.

If you've never heard of Xiaomi, you will soon.

Xiaomi just raised $1.1 billion in funding from some of the tech industry's most powerful players. That values the company at $45 billion -- bigger than LG, Motorola and Sony (SNE) put together. Xiaomi is currently the world's most valuable startup -- worth more than than Uber, Airbnb or Pinterest.

Xiaomi is also the fastest-growing smartphone maker. Its sales soared 211% to more than 17 million smartphones in the third quarter -- just less than half the number of iPhones that Apple (AAPL, Tech30) sold, according to IDC.

Xiaomi's share of the market more than doubled to just over 5%. A year ago, it commanded just 2% of the market.

Related: Chinese smugglers make big bucks on iPhone 6

The Chinese smartphone maker rose to such prominence so quickly by focusing on China and a few nearby high-growth countries. Xiaomi is now the No. 2 smartphone brand in China (behind only Samsung), and it recently began selling phones in Indonesia, Mexico, Russia, Thailand and Turkey.

Xiaomi has taken the growth markets by storm by offering super-low price phones with online-only sales. The company's gorgeous Mi4 smartphone debuted in August, designed to be that country's "iPhone killer." It helps that the Mi4 looks almost exactly like the iPhone.

The company has a unique business model: It doesn't even try to make money on its $130 phones, which it sells at cost. Instead, most profits come from selling add-ons and apps.

Xiaomi has also has a knack for marketing, and its advertising campaigns have attracted a massive group of extremely loyal fans in China.

"We will strive to continue bringing innovation to everyone, with a goal of producing high-quality, high-performance devices with great user experience," said Bin Lin, co-founder of Xiaomi, in a Facebook message on Monday. "In January 2015, we will be unveiling our next flagship device."

Related: Xiaomi just took over China -- is the U.S. next?

The big question for Xiaomi is whether it can grow beyond the countries in which it currently sells phones. For instance, could Xiaomi shake up the U.S. smartphone market, which is dominated by Samsung and Apple?

Chinese smartphone makers haven't exactly been welcome in the United States. None of Xiaomi's biggest national competitors -- Lenovo, Yulong and Huawei -- have made any headway in America. For the better part of the past decade, Nokia was the worldwide leader in cell phone sales without any significant presence in the United States. LG, Sony, and many others have found international success but have failed to gain traction here.

Xiaomi has made no plans to sell its phones in the United States. But if and when that day comes, it will face its biggest challenge yet.

First Published: December 29, 2014: 9:23 AM ET

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Internet icon dies as Yahoo Directory goes dark

NEW YORK (CNNMoney)

Yahoo (YHOO, Tech30) plans to shut down Yahoo Directory this week, quietly ending a service that was once the primary way to search for information online.

Before it was a search engine, Yahoo started out as "Jerry and David's Guide to the World Wide Web" in 1994. It was essentially a list of websites organized by category that Yahoo founders Jerry Yang and David Filo put together in graduate school.

That list morphed into Yahoo Directory and became one of the most common ways to find information in the early days of the Internet.

Related: Marissa Mayer says Yahoo isn't done with search

All that changed when search came on the scene, and Yahoo Directory's usefulness faded.

Yahoo added search that searched websites for keywords. In 1998, Google (GOOGL, Tech30) developed an algorithm for organizing search results by how many other sites were linking to certain Web pages. A few years later, Google became synonymous with searching the Internet.

Yahoo's directory in 1996

Still, Yahoo kept its Directory alive for nearly 20 years.

Yahoo unceremoniously announced the end in a September blog post entitled "Progress Report: Continued Product Focus." The post said Yahoo would "retire" the directory on Dec. 31, 2014.

First Published: December 29, 2014: 10:45 AM ET

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Vacationing with grandma and grandpa is all the rage

NEW YORK (CNNMoney)

Nearly half of all vacations taken by both grandparents and parents include other family members, according to a recent survey by Preferred Hotel Group. And 91% of millennials said they try to take an annual multi-generational trip.

"In many cases, grandparents are footing the bill," said Lindsey Ueberroth, president and CEO of the luxury hotel chain. "Boomers are healthier and wealthier and want to spend more time with their grandchildren and they know this will make that happen."

Related: Top multi-generational family vacation destinations

But it's not just about tagging along on grandma's vacation since millennial-aged travelers play a major role in planning the trips. "Families are hitting the beaches, spending more time outdoors and really pushing themselves to bond together," said Tim Larison, co-founder of Family Travel Gurus.

An extended family escape can create life-long memories, but if they aren't planned and executed properly, they can turn into a total nightmare. Here are the rules experts recommend following:

Set a point person. Too many cooks in the vacation-planning kitchen is a recipe for indecision.

"Make one person the point person, especially if you are working with an agent," said Larison.

Having one person in charge of making reservations limits confusion, but that doesn't hand over the itinerary planning reins completely.

Solicit ideas for activities and consider giving each person a day to plan to help keep everyone happy.

Related: 6 luxury getaways to escape your digital life

"Also, if grandma is paying, make sure you know what she wants out of the trip if you want this to become a tradition," said K-K Afre, a manager for Expedia CruiseShipCenters.

Pick the right destination. When trying to decide the best place to get away, look at the oldest and youngest travelers.

"Evaluate everyone who is going and their walking ability; strollers and wheelchair needs should play a role in choosing a destination that will accommodate everyone," said Afre.

Finding out whether people want a relaxing beach trip versus a more activity-filled getaway will help narrow down the destination contenders.

Talk about money... a lot. If the cost of the trip is being split among the family members, set the budget before making any reservations.

"It might be uncomfortable, but make sure you know how much each family or individual is willing to pay. Make sure to include costs like food, tips and costs for excursions," said Laura Motta, director of publishing at ShermansTravel.

Related: You won't want to leave the airport when these amenities hit the terminals

There are many ways to accommodate different budgets on the same vacation like having different levels of hotel rooms available, sharing rental cars and not making every meal a mandatory together time.

Plan a couple of big events. Vacationers shouldn't expect to spend the entire time together, but experts recommend scheduling at least one big excursion.

"An activity like a private guided tour, boat trip or dolphin swim -- those are the things that are going to leave a lasting memory," said Afre.

Give each other space. When booking the lodging, sharing a wall might not be the best idea.

"We recommend unless you are traveling with small children that you have a little space between rooms," said Afre. "Maybe on the same floor, but two to three doors down. A little space is always a good idea."

First Published: December 15, 2014: 10:01 AM ET

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Brian Williams renews with NBC for five more years

NEW YORK (CNNMoney)

The Los Angeles Times was first to report the contract renewal. In an interview, Williams told The Times that it was akin to "reaffirming your vows."

Deborah Turness, the president of NBC News, described it in similar terms: In an internal memo, she wrote, "Please join me in congratulating Brian and in looking forward to a shared future together."

Turness didn't specify the length of the contract. But a source with direct knowledge of the deal said it extends for more than five years, effectively ensuring that Williams will remain in the chair through the end of the decade.

Williams and NBC celebrated his 10-year anniversary at the "Nightly News" anchor desk on December 2.

He is presently the longest-serving nightly news anchor, competing every weeknight against David Muir, who just took over ABC's "World News" three months ago, and Scott Pelley, who became the anchor of the "CBS Evening News" three years ago.

Williams has been No. 1 in total viewers and in the key 25- to 54-year-old demographic for most of his tenure. Recently, however, Muir has been challenging Williams among 25- to 54-year-olds.

In the first week of December, Williams had 9.64 million viewers while Muir had 8.84 million and Pelley had 7.48 million.

Among 25- to 54-year-olds, Williams had a slight lead, with 2.31 million versus Muir's 2.14 million and Pelley's 1.87 million.

"In this changing news and media environment, that special trust in Brian is more important than ever, and therefore wherever Brian is, the audience follows," Turness wrote in her memo.

First Published: December 15, 2014: 8:14 AM ET

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Sony hackers: ask nicely and we'll offer mercy

NEW YORK (CNNMoney)

Hackers on Sunday publicly dumped an eighth batch of stolen documents. And now, they're offering an odd deal to Sony Pictures employees: Email us your name, and we won't expose your emails and private data.

It's an empty promise, though. Hackers have already exposed the Social Security numbers of 47,426 people -- and enough information on a third of them to steal their identities and ruin their credit.

In their public message posted on anonymous websites Pastebin and Friendpaste, hackers posted the email files of Sony international president Steven O'Dell.

They also warned that further leaks are coming.

"We are preparing for you a Christmas gift. The gift will be larger quantities of data. And it will be more interesting," the note said.

The message claimed hackers are hurting Sony, because the company has not met their demands. Those demands are still murky, but include not showing "the movie of terrorism," which is presumably the Hollywood studio's upcoming release of "The Interview," a comedy about a plot to kill North Korean leader Kim Jong-Un.

Mounting evidence indicates that North Korea is likely behind the hack.

The latest damage

The Sony hack, which started with leaked movies, personal files and emails, has blown up to include everything you can imagine.

The producers of the next James Bond film, "Spectre," said an early version of the screenplay is among the stolen documents made public by hackers. The company, Eon Productions, warned that anyone leaking the script would violate copyright laws. Last week, CNNMoney revealed that "Spectre" is so incredibly over budget, it's on track to be one of the most expensive films ever at more than $300 million.

And on Sunday, it became clear that Sony hired a nationally recognized lawyer, David Boies, to silence media companies -- including CNN, The New York Times and others -- censuring them for reporting on the documents and demanding that they avoid and destroy them.

Related: Bringing down Sony was frighteningly easy

Related: How safe are you? CNN's cybersecurity magazine

First Published: December 15, 2014: 10:58 AM ET

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Gas for less than $2 is now widespread

NEW YORK (CNNMoney)

After a weekend of price cutting at stations, gas for less than $2 can be found in 13 states across the country. Two weeks ago there was only one gas station in the country selling gas that cheap.

Data from price tracker GasBuddy.com shows that three states -- Oklahoma, Louisiana and Ohio -- have at least one station each selling regular gas for less than $1.90 a gallon. Cheap gas is most frequently found at stations in Oklahoma, which was the first state to break the $2 a gallon mark on Dec. 3.

Another ten states -- Alabama, Arizona, Colorado, Indiana, Mississippi, Missouri, Nebraska, New Mexico, Texas and Virginia -- also have gas for less than $2.

Related: What's gas cost in your state?

Gas below $2 a gallon can only be found at a handful of stations in all these states, even in Oklahoma. Four of the states only have one station each with gas that cheap. All these states still have statewide averages well above $2 according to AAA. Missouri has the lowest average price at $2.25.

And with the statewide average in New York finally falling below $3 over the weekend, every state in the lower 48 now has an average below that benchmark. The nationwide average is now $2.55 a gallon, the lowest it has been since October 2009.

Related: OPEC isn't scared of $40 oil

Falling gas prices have been driven by plunging oil prices. Crude traded below $60 a barrel for the first time in five years last Thursday and was just over $58 a barrel early Monday.

Falling demand for oil due to economic slowdowns in Europe and Asia, as well as more fuel efficient vehicles, are major reasons for the fall in oil prices. But increased U.S. oil production, which took the nation past Saudi Arabia as the world's largest source of crude earlier this summer, is another major factor, as is a strong dollar.

With OPEC so far unwilling to cut production in order to prop up prices, some forecast that oil could fall to near $40 a barrel at some point in 2015. That would drive gas prices down even more and make gas for under $2 a gallon common at stations across the country.

Related: Tumbling oil could take thousands of jobs with it

First Published: December 15, 2014: 7:48 AM ET

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Michael Bloomberg: Cities drive innovation

Michael Bloomberg, left, with Chicago Mayor Rahm Emanuel, one of the first five recipients of a Bloomberg Philanthropies grant.

NEW YORK (CNNMoney)

But in government, there is a tendency to reach immediately for the first available solution, without spending any time thinking about different ways to approach the problem. It's understandable, because there is enormous public pressure do something -- anything -- quickly.

But very often, that leads to throwing good money after bad -- and watching old problems get worse. That's standard operating procedure in Washington, but mayors around the country are increasingly starting to challenge it.

Related: The most innovative cities in America

More and more cities are becoming engines of policy innovation, searching for bold new solutions to tough problems that Washington has failed to address. Coming up with innovative new ideas requires creative thinking based on rigorous data analysis. And then, once the best ideas are selected, the hard work begins -- implementing them.

Successful innovation depends as much on the ability to generate ideas as it does the capacity to execute them. The trouble is, many mayors have small staffs who are already stretched thin just keeping the trains running on time. It is often impossible for them to devote the kind of time and energy that is necessary to research, develop and implement innovative new policies.

Helping cities increase their capacity to tackle their big issues is the focus of Bloomberg Philanthropies' government innovation programs. For the last three years we've invested in innovation teams -- we call them i-teams -- to help mayors generate fresh ideas and deliver results. Here's how they work:

The i-teams gather and analyze the data that city leaders need to understand problems and their causes -- and later, to set goals, measure progress, and hold themselves accountable for success.

Related: Rahm Emanuel: How Chicago saved its small businesses

As part of this work, the i-teams open up the brainstorming process to new voices to come up with ideas that better address the problems cities face.

They also facilitate cooperation among different agencies -- and organizations outside of government -- that too often operate independently of one another, while tackling different pieces of the same problem. And they help consider programs and policies that have worked elsewhere and translate those ideas from city to city, saving time and money.

Michael Bloomberg in conversation at CityLab 2014 in Los Angeles.

In 2011, we started funding i-teams in five U.S. cities -- Atlanta, Chicago, Louisville, Memphis, New Orleans. Last week, mayors of those cities wrote on this website about their experiences and what they've been able to achieve.

Each of those cities initially set out to address a set of specific and urgent problems -- from gun violence, to economic development, to customer service -- and each achieved great results.

In an encouraging sign, each city has now assigned their i-team to take on new challenges. And to ensure their work continues even after the grant expires, each city is moving to incorporate them into their public budgets.

Related: How Memphis is lowering crime and reviving neighborhoods

Based on the great progress we've seen in these cities, and the appetite for innovation that exists in cities around the world, we're significantly expanding our i-teams program. Today, we are announcing that 12 more American cities will develop i-teams with support from Bloomberg Philanthropies.

These cities are Albuquerque, N.M.; Boston; Centennial, Colo.; Jersey City, N.J.; Long Beach, Calif.; Los Angeles; Mobile, Ala.; Minneapolis, Minn.; Peoria, Ill.; Rochester, N.Y.; Seattle; and Syracuse, N.Y.

We're also expanding the program outside our borders, by supporting i-teams in Israel's two biggest cities, Tel Aviv and Jerusalem.

Related: Why cities matter

More and more, we're counting on cities to come up with creative solutions to the big challenges we face -- and increasingly, we know which approaches can do the most to help cities innovate. I-teams are one way to spread those approaches.

We're excited to bring the program to 14 new cities, and to see how the lessons they learn can help continue to drive innovation in cities around the world.

First Published: December 15, 2014: 8:32 AM ET

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BlackRock exec loses career for dodging fares

The former investment manager repeatedly dodged fares on his way to work in London.

LONDON (CNNMoney)

A former managing director at BlackRock has been banned from the industry for life by U.K. regulators. His crime: dodging rail fares on his commute to work.

Jonathan Burrows was caught without a ticket at a station in the heart of London's financial district. Confronted by ticket inspectors, he admitted evading fares on several occasions.

The Financial Conduct Authority said the crime showed Burrows lacked honesty and integrity, and was therefore not a "fit and proper" person to work in financial services.

Burrows was forced to resign from BlackRock earlier this year.

Related: Big banks should clean up their acts, Fed official says

Boarding the train without a ticket was the easy part: Burrows' local station has no barriers.

When he arrived in London, he would use his Oyster Card -- the city's cashless payment system -- to open the barrier, triggering the maximum daily charge of £7.20 ($11), or about a third of what he should have paid for the journey.

BlackRock said Burrows' behavior ran "totally contrary" to its values and principles.

In a statement issued Monday, Burrows apologized for diverting regulators from more serious misconduct at a critical point for London's finance sector.

He was reported to have settled out of court with the railway operator Southeastern, paying £43,000 ($67,000) for tickets he had failed to buy over the last five years.

The sum was "significantly in excess of the value of the fares not paid by me," he said Monday.

First Published: December 15, 2014: 8:28 AM ET

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Busiest day of season for FedEx, postal service

NEW YORK (CNNMoney)

That means it's extra busy for shippers as well. Monday is the peak shipping day of the season for FedEx (FDX) and the U.S. Postal Service.

The post office, which is the nation's largest shipper, expects to process 640 million pieces of mail on Monday, up 33 million from last year. Between Thanksgiving and Christmas Eve, it expects to deliver 12.7 billion cards, letters and packages. An additional 3 billion will be shipped between Christmas and New Year's Eve.

FedEx expects to handle 22.6 million shipments on Monday. It is one of three days this month -- all Mondays -- when FedEx expects to handle more than 20 million packages. This season, FedEx projects making 290 million deliveries, up nearly 9% over last year.

Related: Toys 'R' Us 'layaway angels' pay thousands for others' gifts

Mondays tend to be busier because of volume built up over the weekend, when people spend more time shopping or writing Christmas cards. To handle all those packages and make the spikes more manageable, the Postal Service, FedEx and UPS deliver on all seven days of the week this season, and they hire thousands of extra hands.

UPS (UPS) said it expects next Monday to be its busiest day, handling 34 million packages. It is planning for 585 million packages this month.

Experts are projecting a big increase in online shopping this season, another test of the already-stressed shipping system. Last year, Amazon (AMZN, Tech30) and UPS tested the limits of on-time delivery for Christmas, and the companies were forced to offer gift cards after many orders did not make it in time.

This year, Amazon isn't taking any chances. The online shopping giant says there are just four days left to place an order for free delivery by Christmas.

Related: Guess who's expecting a holiday tip this year...

Related: Meet Dr. Christmas, holiday stylist to the rich and famous

First Published: December 15, 2014: 9:48 AM ET

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France wants to ban uberPOP from January 1

Uber is facing a tangle of legal and regulatory challenges around the world.

LONDON (CNNMoney)

A government spokesman told French TV channels that the service would be barred across the country under new industry laws. However, people will still be able to use Uber for other services, such as hailing nearby taxis.

Uber has faced an onslaught of regulatory and legal challenges around the world. On Friday, a French judge ruled that he was unable to suspend uberPOP because he lacked the legal authority.

UberPOP operates in over a dozen cities across Europe and gives passengers a cheaper alternative to traditional taxis by letting private drivers offer rides. The fact that these drivers are not licensed doesn't sit well with established taxi firms and local officials.

The French government is concerned that uberPOP drivers do not have sufficient insurance in case of accidents.

Pierre Dimitri Gore-Coty, Uber's general manager for western Europe, told CNN the company was considering the government's announcement. However, he said the judicial system should ultimately decide Uber's fate.

Related: Anger at Uber as fares soar during the Sydney siege

UberPOP has been here before. It faced a high-profile ban in Germany earlier this year, but continues to operate in the country after Uber tweaked the service.

This is a familiar story: When Uber is backed into a corner by courts and regulators, it often makes changes to stay in line with local rules.

In Spain, a judge ordered a temporary block on Uber services last week. However, an Uber spokesperson told CNNMoney on Friday that the company did not receive a formal ruling from the court and, therefore, continues to operate.

Last week, Uber services were banned in the Indian capital New Delhi after a driver was accused of raping a passenger.

Uber has a presence in six cities across France and serves over 500,000 French customers. Of those riders, 160,000 people regularly use of the uberPOP service.

Uber operates in over 250 cities around the world.

Uber CEO Travis Kalanick recently announced a $1.2 billion round of funding that values his company at $40 billion.

-- CNN's Sandrine Amiel and Marion Lory in Paris contributed to this report.

Related: New York and Chicago could launch their own Uber-style apps

Related: Uber's global ambitions hit roadblocks

Related: California prosecutors sue Uber for misleading customers

First Published: December 15, 2014: 10:49 AM ET

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Oil is the Federal Reserve's 800-pound gorilla

NEW YORK (CNNMoney)

The stock market just suffered its worst week in years along with a dramatic drop in oil prices. So investors and economists are now wondering if the Fed will (or should) discuss what impact lower energy prices may have on its outlook for inflation.

"That 800 pound gorilla known as oil? Will anybody notice it? Yes. It will be noticed. The Fed will have to address it. It needs to be proactive," said Dorothy Weaver, CEO of Collins Capital and former chairman of the Federal Reserve Bank of Atlanta's Miami branch.

The Fed meets this week and will put out a formal policy statement Wednesday. Traders will be watching to see if the Federal Reserve finally drops the term "considerable time" from its release. The Fed has been using that language to describe how long it thinks it should keep interest rates near zero.

Weaver thinks the Fed will need to talk about how oil may be a factor that is keeping inflation relatively low either in its statement or during the press conference by Fed chair Janet Yellen. That's important because inflation is one key thing the Fed looks at when making decisions. The other is the job market.

The job market is humming along nicely. But now Janet Yellen may have to worry about plunging oil prices.

Time to raise rates: With the unemployment rate continuing to fall and the economy adding jobs this year at the best clip since 1999, the Fed should feel comfortable finally raising rates sometime in 2015. Rates have been near zero since December 2008.

The lack of inflation has to be a concern too though. The Fed has two official tasks, or mandates: trying to maximize employment and keeping prices stable.

If oil prices continue to fall and the prices of other goods follow suit, that could be a sign of a weakening economy and deflation. Interest rate hikes would not be a great idea if the economy is still fragile.

Related: 2015 may be the year the stock market slows to a trot

The oil scare: That's why Weaver thinks the Fed will continue to indicate that any policy changes will depend on the data, not the calendar.

"Yellen will want to keep her options open," she said. "People are spooked and nervous right now. Anything can be a tipping point for the market and the Fed does not want to be that tipping point."

Qunicy Krosby, a market strategist with Prudential Financial, said that the Fed should show more concern about what's going on with oil.

Two key Fed officials said earlier this month that the drop in energy prices was a good thing because it should help lift consumer spending. But with prices plummeting even further since then, Krosby said the Fed may have to reevaluate that argument.

"You can look at how lower oil helps the U.S. economy, but this is not an equation that's equal on both sides. It could be a sign of weakness in Europe, China and Japan. Plus, you are starting to hear about domestic job cuts in the energy industry," she said.

Related: Tumbling oil could take thousands of jobs with it

Bond investors seem to be betting that the Fed will remain cautious. That's likely due, in part, to what's going on with oil. The yield on the 10-Year U.S. Treasury is currently just 2.12%, not far from the 1.87% low point of the year.

If the bond market expected rates to go up sooner rather than later, investors would be more apt to sell bonds and push their yields higher.

"One of the Fed's goals is to keep inflation in check. There is none. That's why I think bond yields are going to continue to fall," said Brian Needleman, chief investment officer with Cornerstone Financial Partners.

First Published: December 15, 2014: 10:18 AM ET

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10 Sandy Hook families sue Bushmaster

Adam Lanza used this Bushmaster AR-15, model XM15-E2S, to kill students and teachers at Sandy Hook Elementary School in 2012.

NEW YORK (CNNMoney)

The lawsuit was filed one day after the second anniversary of the killings.

Koskoff, Koskoff & Bieder, the law firm that is representing the families, announced Monday that it has filed suit against Camfour, a gun distributor, and Riverview Gun Sales, as well as the Freedom Group, the company that owns Bushmaster.

The lawsuit, filed in Superior Court in Bridgeport, Conn., pointed out that the numerous lives were lost in just 264 seconds and was possible because of the shooter's weapon of choice: The Bushmaster AR-15 rifle.

The rifle, which was used to kill 20 first-grade students and six adults in Newtown on December 14, 2012, should not have been entrusted to the general public because it is a military assault weapon that is unsuited for civilian use, according to the lawsuit.

Related: U.S. Army wants a new gun

"The AR-15 rifle, designed as a lightweight but fearsome combat weapon for troops in Vietnam, can expel 30 bullets in a matter of seconds, each of which is capable of piercing body armor and causing catastrophic injury," the suit claims.

"It has no place among Americans' handguns and hunting rifles."

Adam Lanza, the killer, was mentally unstable and used his mother's Bushmaster to kill her before he went on the rampage at the school, and then killed himself.

Related: Gun violence costs taxpayers $500 million

"The risk of a mentally unstable individual gaining access to an assault rifle and unleashing its military firepower on innocent civilians is not theoretical for Bushmaster. It's a fact," said Katie Mesner-Hage, of Koskoff, Koskoff & Bieder, in the press release.

Related: The mom behind Target's gun ban

The law firm said the Bushmaster used in the Sandy Hook killings was purchased at Riverview, in East Windsor, in 2010.

The owner of Riverview was not immediately available to comment and phone messages to the Freedom Group and Camfour were not immediately returned. The Riverview web site currently lists the Bushmaster, and other assault rifles, for sale.

First Published: December 15, 2014: 10:13 AM ET

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ReWalk makes miracles possible

NEW YORK (CNNMoney)

He likes that his son knows that he's actually tall - 6 foot 3, in fact. Until recently, his 13-year-old had not seen him at his full height.

Laureano, now 51, fell off a ladder in 2001 and became a parapalegic confined to a wheelchair.

For the first time, people like him have the opportunity to stand and even walk.

Laureano has been testing ReWalk's robotic exoskeleton, the first of its kind approved by the FDA for personal use.

The unit weighs 46 pounds, but the user feels only the weight of the backpack, about 5 pounds. A wristwatch controls a battery in the backpack, and controls hip and knee movement.

The cost of the robotic exoskeleton is $69,500, and is not covered by insurance. Laureano has been able to test the product through a clinical trial in the Bronx since January 2013.

ReWalk (RWLK) is the brainchild of Israeli scientist Dr. Amit Goffer who, after an ATV accident in 1997, became a quadriplegic. Goffer grew frustrated with the limitations of wheelchairs.

"Once I realized there was not an alternative to the wheelchair, I couldn't understand why," said Goffer.

He says he had always been an entrepreneur and he began prototyping the ReWalk in his garage.

Another major player in developing robotic exoskeleton community is Ekso Bionics, which just shipped its 100th unit for use in rehab facilities, though not for individuals in the U.S. Ekso Bionics is in the process of also trying to get FDA approval.

Goffer believes it's not just FDA clearance that set his model apart from the competition. "Because I am in a wheelchair, I can sympathize. It's not just technology, it's psychology. I understand what its like to be humiliated, I know what they want really. But I have a long history in technology because I am an engineer all my life. "

Because he's a quadriplegic, Goffer can't use ReWalk. "Once I speak with the ReWalk users and their families, I mean the reward is so fantastic, I can not be frustrated. But we are working on another device that will help people like me."

Related: Fund a mission to the moon on Kickstarter

Related: Shopping? The robot will help you now?

First Published: December 8, 2014: 9:20 AM ET

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Austerity to shrink U.K. government spending to 1930s levels

Austerity budgets over the next 5 years will reduce government spending as a proportion of GDP to levels last seen in the 1930s.

LONDON (CNNMoney)

The U.K. government unveiled new budget goals last week that would mean five more years of cuts as it tries to close a stubbornly wide gap between revenue and spending.

Despite recent strong growth, hefty cuts to welfare programs and frozen public sector pay, Britain is still running a budget deficit of about 5% of GDP. Disappointing tax receipts are partly to blame.

Parliamentary elections are just five months away and the new forecasts from Chancellor George Osborne have drawn heavy criticism from independent forecasters as well as political foes.

The proposals would shrink total public spending to about 35% of GDP in 2019-20, according to the Office of Budget Responsibility, the U.K.'s independent fiscal watchdog.

That would be the lowest proportion of national wealth spent by the government in 80 years.

Related: Europe punts again on more stimulus

Institute of Fiscal Studies director Paul Johnson said "colossal" cuts would be required to reduce the budget to those levels. Some £55 billion ($85.91 billion) would be slashed from government spending, in addition to £35 billion ($54.6 billion) already cut.

"If we move in anything like this direction, whilst continuing to protect health and pensions, the role and shape of the state will have changed beyond recognition," Johnson said.

Other economists have questioned just how much further Britain can tighten its belt.

Berenberg chief U.K. economist Rob Wood said few other countries spend as little as 35% of GDP, and those that do typically don't have public healthcare or face less pressure from an aging population.

Osborne says the U.K. needs to live within its means. His opponents say he's inflicting needless pain on vulnerable groups and growth could be less robust than expected as a consequence.

A deterioration in tax receipts has depleted Britain's coffers and pushed back hopes of a budget surplus. Back in 2010, the U.K. government forecast a deficit of less than $62.5 billion this year. That projection is now more than $140.6 billion.

The U.K. is tipped to be the fastest growing major economy in 2014. Still a drop in real wages has left many people feeling no better off. Growth is expected to slow next year.

Related: $7,500 for a slice of Royal wedding cake

First Published: December 8, 2014: 10:31 AM ET

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French Toast Crunch cereal is back

Throwback! The new packaging, left, is an updated version of the 1990s design.

NEW YORK (CNNMoney)

Now, General Mills has given the sugar-blasted breakfast treat new life, announcing its return to supermarket shelves after an eight-year hiatus.

The distinctive "little toast-shaped, maple-flavored bites of deliciousness," as General Mills describes them, were survived by their sister cereal Cinnamon Toast Crunch.

General Mills said it was responding to demand by relaunching French Toast Crunch.

But it also wants to ride a wave of nostalgia: Children who ate the cereal in the mid-to-late 1990s are now in their 20s and buying cereal themselves.

Related: Remember Surge soda? It's back

For now, French Toast Crunch is available in only a limited number of grocery stores, but it will be available nationally in January.

While French Toast Crunch was discontinued in the U.S., it has been available in Canada; in French-speaking parts, it sells as "Croque Pain Doré." Devotees ordered the cereal online from there, but General Mills said "the shipping fees were often steep" and only "a lucky few" could score a supply.

Related: Hipster beer alert: Ballantine is coming back

First Published: December 8, 2014: 9:48 AM ET

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Nobody escapes U.S. taxes - even astronauts

Astronauts still have to file their taxes on April 15 every year -- even if they're floating in outer space.

HONG KONG (CNNMoney)

Yes, that's right. Astronauts are on the hook to file taxes by April 15, even if they're orbiting hundreds of miles above Earth on a long-term mission.

The IRS -- the much-feared enforcer of the U.S. tax code -- makes no exceptions. Experts say astronauts don't get special treatment, no matter how far away they are from the planet.

NASA astronaut Leroy Chiao -- commander of the tenth expedition to the International Space Station -- was in orbit when tax day rolled around in 2005. Chiao had no choice but to manage his taxes from space.

But how exactly did that happen?

"Get someone to help you out on the ground," Chiao said. The mission commander's sister is an accountant, and she was able to file papers on his behalf to extend his tax return deadline.

"He certainly had a good, valid reason [for the extension]," said his sister, Judy Chiao Smith.

Related: This job has the world's worst tax return

After eight months living on the International Space Station, Chiao returned to earth on April 24, 2005 -- just nine days after tax day -- and got busy working on his tax return.

Since astronauts are routinely gone for months, "you do have to anticipate everything," Chiao said. The astronaut ticked off a laundry list of events to prepare for: voting, birthdays, anniversaries and even Christmas.

Taxes are no exception. Astronauts need to "make sure their mail is getting redirected, so the [tax forms] and other information from the government actually goes somewhere, and isn't held at the post office," Chiao Smith said. "If you're up there in space, you can't get ahold of the data."

Another strategy is for astronauts to file taxes early, said NASA spokeswoman Nicole Cloutier. Some astronauts "file an extension pre-flight, or their spouse handles filing the taxes," she said.

Taxes have long stressed out astronauts -- Jack Swigert, a last-minute addition to the Apollo 13 crew, even radioed Houston's mission control center for tax help while the mission was underway.

"Hey, listen, it ain't too funny; things kind of happened real fast down there, and I do need an extension," Swigert said, according to NASA transcripts. "I didn't get mine filed, and this is serious."

With laughter in the background, mission control promised to help Swigert.

For accountants that work on astronaut taxes, the physical location of their clients raises some interesting -- or perhaps bizarre -- questions.

Americans living abroad can claim an exemption on income earned in a foreign country, for example. Could an astronaut also claim the exemption?

Related: For $90, you can bury stuff on the moon

Experts say astronauts working in outer space probably wouldn't qualify. That's because government workers aren't typically eligible, and the IRS doesn't consider international airspace or waters to be a foreign country, said Vincenzo Villamena, an accountant who specializes in expat taxes.

"Even if the astronaut was stationed on board the International Space Station, it would be considered an offshore shop or offshore installation [subject to U.S. taxation]," he said.

But does the IRS definition of "international airspace" extend to altitudes beyond the Earth's atmosphere? The tax code is silent on the issue, and the IRS did not respond to request for comment.

"It'd be an interesting argument to make, because technically, you are out of the country," Chiao Smith said.

Read next: Why NASA is turning to Elon Musk

First Published: December 7, 2014: 9:09 PM ET

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Stocks: 3 things to know before the open

LONDON (CNNMoney)

Here are three things you need to know before the opening bell rings in New York:

1. Records tumble: The S&P 500 closed up 0.17% at another record level Friday, boosted by news that U.S. employers added 321,000 jobs in November, making 2014 the strongest year for job growth since 1999.

Markets will be watching Monday to see if the Dow Jones Industrial Average can hit a new record at 18,000 points. The index came within 10 points of the milestone during Friday's session.

Early signs are that investors may have to wait a while longer, given a few reminders Monday about shaky global growth.

U.S. stock futures were mixed -- S&P futures were down 0.4%, while Dow futures were flat.

Related: Battle Royale: Active vs passive investing

2. Japan's recession: The world's third largest economy is in a deeper hole than expected. A second reading of third quarter GDP showed the economy shrank at a faster rate than previously thought, down 1.9% on an annual basis. An initial estimate put the contraction at 1.6%.

Voters go to the polls Sunday in parliamentary elections called early by Prime Minister Shinzo Abe in the hope that he'll secure a stronger mandate for his economic revival plan.

Japan's Nikkei was flat in a mixed session for Asian markets.

Related: Fear & Greed Index

3. Europe weakens: The downward revision to Japan's GDP data, combined with weak trade figures from China and a disappointing reading of German industrial production in October weighed on European markets in morning trade.

Related: CNNMoney's Tech30

First Published: December 8, 2014: 5:31 AM ET

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America: The best place to put your money

NEW YORK (CNNMoney)

Not only did U.S. equities trounce their depressing performance from last decade, but they left all other major markets in the dust.

Since the end of 2009, the S&P 500 has generated annualized total returns (including dividends) of about 16%. That's a very impressive average based on historical standards.

It's also very strong considering most major stock markets produced modest annual returns in the mid-to-high single digits. Some, like former stock market darlings China and Brazil, suffered outright annual declines.

In other words, the U.S. has been THE place to be for investors.

Related: Will 2015 be the ho-hum year for stocks?

Easy money: Former Federal Reserve Chair Ben Bernanke played no small part in making that happen. The former Federal Reserve chief masterminded emergency policies that juiced risky assets like stocks and stabilized confidence in the economy.

"I would give Bernanke and the Fed the lion's share of the credit for repairing the economy," said Phil Orlando, chief equity strategist at Federated Investors.

Of course, it only stands to reason that stocks would bounce back after the Great Recession. They were deeply oversold in early 2009 as investors legitimately feared the collapse of the banking system and an economic depression.

But the market rally was also fueled by the U.S. energy revolution as well as aggressive cost-cutting moves that left Corporate America very lean.

The stock market proved resilient enough to overcome a number of major obstacles, including the slow U.S. recovery, political dysfunction in Washington (see: 2011 debt ceiling debacle) and Europe's debt mess.

Related: 3 reasons Wall Street is getting riskier

Is the party over? But now the Fed's monetary stimulus is fading and interest rates are expected to lift off next year.

But don't bank on the bull market dying just yet. Gains may not be as strong, but they're likely to continue.

"The U.S. is still the place to be," said Orlando.

Federated Investors believes the S&P 500 will pop from its current level of about 2,075 to 2,350 (a gain of over 13%) by the end of next year and then zoom as high as 2,600 at the end of 2016.

Related: Not worried about a recession? Buy these 10 stocks

Nicest house in a bad neighborhood: The optimism is being fueled by the U.S. economy, which looks relatively good compared with slowing China and flatlining Europe and Japan.

"We believe the U.S. economy will continue to outperform many parts of the world in the half-decade ahead and generate the necessary profit growth to sustain the current equity rally," Joseph Quinlan, chief market strategist at U.S. Trust, wrote in a recent note.

He pointed to America's "unique ability to leverage disruptive technologies" like robotics, cyber security, 3-D printing and cloud computing.

Related: 2014 is best year for job gains since '99

Morgan Stanley recently predicted the current U.S. expansion could end up as the longest ever, lasting until 2020 or beyond.

If they're right, economically-sensitive sectors like industrials, consumer discretionary, financial and IT should do very well.

Orlando said it's possible policymakers in Japan and certain emerging markets eventually get their acts together, making those markets more attractive.

"Unless and until that happens, the United States is the best dressed hobo at the fashion ball," he said.

First Published: December 8, 2014: 7:09 AM ET

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How Memphis is lowering crime and reviving neighborhoods

A C Wharton has been the Democratic mayor of Memphis since 2009.

NEW YORK (CNNMoney)

Here, Memphis Mayor A C Wharton discusses what the grant meant for his city.

As mayor of the city of Memphis, it is my responsibility -- and our collective responsibility at City Hall -- to look after every one of our citizens, to protect our youth and to revitalize the important communities that make up the fabric of Memphis.

Yet in the face of shrinking budgets and dwindling resources, we cannot rely on the old method of government to accomplish these goals. We must seek out new ways to build a safer, stronger and more vibrant city. Innovation makes this possible.

In 2011, using a $4.8 million grant from Bloomberg Philanthropies, I helped Memphis launch an Innovation Team to implement data-driven, results-oriented solutions. The "i-team" works across city divisions to address some of our city's most pressing challenges.

Youth gun violence and neighborhood economic vitality were at the top of the list.

A disproportionate number of crimes in Memphis are committed by persons under 24 years old, and much of this violence has taken root in the neighborhoods of South Memphis and Frayser. To combat government's natural instinct to jump straight from the problem to solutions, the i-team worked to understand what was driving this violence, identify those who could help solve it, and implement a solution that holds everyone accountable.

The result -- Memphis Gun Down -- has worked to more effectively mobilize police, change the community's culture of criminal acceptance, organize jobs training and craft stronger policies.

Related: Most innovative cities in America

We will always have more work to do, but we are seeing results. In our Frayser focus area, since 2012, we have seen a 22% decrease in robberies, non-domestic violence aggravated assaults, and homicides. In the South Memphis focus area, we have seen a 50% decrease in these crimes.

Crime occurs more frequently in disadvantaged neighborhoods, and traveling around Memphis you encounter too many communities struggling with crime and unable to overcome its barriers, limiting potential investment and growth. There are more than 53,000 vacant properties in Memphis, and these vacancies scare away would-be investors and residents and allow crime to take root.

A MEMShop pop-up market in South Memphis.

To tackle this issue, the i-team introduced a simple formula to structure neighborhood revitalization: "Clean it, activate it, sustain it."

This city is home to artists, thinkers and entrepreneurs. It is our job to give them the tools to create. The i-team keyed in on strategies that promote open innovation, actively engaging partners in and out of government.

One such initiative is MEMFix, which was modeled on a successful project led by residents. MEMFix empowers neighborhoods to transform city blocks into temporary community gathering places -- through pop-up shops, marketplaces and painting projects, or by improving street design to increase walkability and biking.

Easy to implement and inexpensive, these projects help Memphians rediscover hidden alcoves, let neighborhoods showcase their creativity, and provide a blueprint for permanent infrastructure.

Mayor Wharton participates in MEMFix: Edge, encouraging residents to exercise more regularly.

MEMShop and MEMMobile are similar, vital public-private partnerships spearheaded by the i-team that are lowering the barriers to starting new businesses. MEMShop provides businesses with free or reduced rent in vacant or underutilized spaces for up to six months, along with a heavy dose of direct business assistance. MEMMobile introduced a forgivable loan program of up to $20,000 to start a mobile business.

As incubators for small businesses, MEMShop and MEMMobile support economic growth, but they also impact the community by activating empty storefronts, increasing foot traffic and raising property values.

More than 75 entrepreneurs have applied to be part of these programs. Thus far, MEMShop has helped to launch nine new businesses, six of which have gone on to sign long-term leases. In one area, the vacancy rate has dropped from 46% to 5% since the program started.

Related: How startups are tackling DC's poverty problem

Innovation means something different in every city. In Memphis, it has become a core principle of how City Hall frames problems and attacks challenges, and I am proud to say Memphis will continue supporting the i-team in the years to come.

For us, innovation means reduced youth gun violence, it means a brighter, more vibrant city landscape, and it means new businesses entering and impacting neighborhoods in need of a lift.

What can it mean for your city?

This is the first in an exclusive series from CNNMoney, featuring op-eds from mayors who received grants from Bloomberg Philanthropies in 2011. Still to come this week: New Orleans' Mitch Landrieu, Louisville's Greg Fischer, Atlanta's Kasim Reed and Chicago's Rahm Emanuel.

First Published: December 8, 2014: 9:27 AM ET

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Sony hacked again as PlayStation goes offline

LONDON (CNNMoney)

Customers trying to access the PlayStation Store were greeted by a note saying "Page Not Found! It's not you. It's the internet's fault."

Hacker group Lizard Squad claimed responsibility for the attack. It posted "PSN Login #offline #LizardSquad" on its Twitter feed.

PlayStation owners were able to play games offline, but couldn't communicate with other players or make use of network functions.

Sony (SNE) said the problem had been resolved and it was investigating what caused the outage.

Related: What hackers know about you

PlayStation's competitor, Xbox Live, suffered a similar attack by Lizard Squad last week. The outage meant owners of the Microsoft (MSFT, Tech30) console were unable to download apps, games, movies, and connect with other gamers.

Lizard Squad warned more attacks were coming.

"Unlike Santa, we don't like giving all of our Christmas presents out on one day. This entire month will be entertaining," Lizard Squad tweeted.

The attacks come only days after hackers -- possibly connected to North Korea -- brought Sony Pictures to its knees by stealing more than 100 terabytes of data.

They leaked new movies, such World War II drama "Fury", and exposed internal memos and personal information about Sony's employees -- including the salaries and Social Security numbers of celebrities Conan O'Brien and Sylvester Stallone.

The FBI has warned other companies to be on alert for the malicious software that infected Sony's computers.

The attacks on the games' networks appear to be unrelated to the major Sony breach last week.

Related: Why the Sony hack is one of the worst hacks ever

First Published: December 8, 2014: 9:13 AM ET

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Army turns soldiers into 3-D avatars

Using 3-D avatars from Body Labs, the Army will design apparel to better fit female soldiers.

NEW YORK (CNNMoney)

But Manhattan startup Body Labs is up to the task.

On Monday, the year-old firm unveiled its plans to work with the U.S. Army as part of a two-year, $825,000 contract to create protective gear for female soldiers in combat.

"Kevlar vests need to fit really well," said Bill O'Farrell, co-founder and CEO of Body Labs. "You can't custom-make them because it's really expensive. [So] how can the Army manufacture them to fit the maximum [number of female soldiers]?"

Body Labs will turn scans of female soldiers into 3-D avatars so the Army can create accurate sizing for women's bodies and virtually test the way the clothes fit.

"All [armor] was originally designed to be unisex," said David A. Accetta, public affairs officer for the Army's Natick Soldier Research, Development and Engineering Center (NSRDEC).

But according to Accetta, who served in the army for 25 years, the gear more closely fits male torsos.

"Females tend to be smaller, their body shapes different," he said.

Related: 3-D-printed organs are on the way

Nearly two years ago, the Pentagon announced plans to fully integrate women into combat roles by 2016. In 2012, the Army first introduced body armor designed for the female body, but Accetta said they're constantly looking for "better ways to protect our soldiers."

Enter Body Labs, which provides an unprecedented level of detail and analytics behind human body shapes. Using its algorithms, the 12-person team is able to fill in body crevices (like under the arms) that traditional body scans can't detect.

The company's technology was actually developed nearly a decade ago by Brown University professor Michael Black (a co-founder of Body Labs). He and his students developed a mathematical model that could accurately predict the shape of the human body. Essentially, this technology is able to convert laser scans of the body into data points and then create true-to-life 3-D models.

Related: Google searching for cancer cure

In its work with the Army, Body Labs is using data from an 18-month study that compiled 12,000 body, head and foot scans of soldiers -- both men and women.

But Body Labs' value also extends to retailers and consumers. On BodyHub.com, anyone can upload scans of their own bodies for free using Microsoft Kinect. Or, you can simply input your measurements and it'll spit out your 3-D version.

The company is also partnering with sports apparel firms (though O'Farrell declined to provide names). Plus, it sees potential to capitalize on the made-to-fit clothing trend.

And investors are noticing the power of their technology: It received $2.2 million in funding last month from FirstMark Capital and New York Angels.

"We are very big believers in mass customization," said O'Farrell. "We think the world is moving in that direction, we envision a world when products, medical equipment, will tailor to us as individuals."

First Published: December 8, 2014: 10:28 AM ET

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Rolling Stone apologizes for rape article: What now?

NEW YORK (CNNMoney)

The magazine's editors spent the weekend belatedly fact-checking the article and reviewing what went wrong.

"We are taking these matters very seriously," said an editor at the magazine who insisted on anonymity.

Some observers are predicting departures from Rolling Stone as a result. Representatives of the magazine declined to comment on Sunday. Jann Wenner, the founder and owner of Rolling Stone, did not respond to requests for comment.

But the editor who spoke anonymously said the magazine would have more to say in the coming days.

November 19 article stuns readers

The crisis meetings at Rolling Stone were prompted by the unraveling of the 9,000-word article, which was written by regular contributor Sabrina Rubin Erdely.

The article described how "rapes are kept quiet" by students and administrators at the University of Virginia. It focused on the story of one freshman student, known as Jackie, who said she was brutally gang-raped by seven men for several hours at a frat party in 2012.

Erdely's article was published on November 19 and immediately stunned readers, grabbed media attention and prompted the president of UVA to suspend all fraternity activities on campus and promise a full investigation.

Less than a week later, critics began to ask questions about some of the details in Jackie's account and about Rolling Stone's decision not to contact the seven alleged attackers.

Erdely defended her process, telling CNN and SiriusXM host Michael Smerconish in a radio interview that she put Jackie's story "through the wringer" and "talked to all her friends."

"Her story is very consistent," Erdely said. "She has clearly been through a tremendous trauma. And I don't doubt that something happened to her that night."

But what Jackie alleged, and what Erdely described, was something very specific: a horrific gang rape.

Many people were -- and many still are -- inclined to give Erdely the benefit of the doubt, given the incredibly sensitive nature of the subject and the damage that can be inflicted through undue skepticism of rape victims' stories.

The Columbia Journalism Review noted on December 2 that "Jackie is far from the only source in the Rolling Stone story, which is rich in reported facts, along with quotes by experts and survivors of rape. Certainly, the main message has had a huge impact so far. But the questions that were not asked now threaten to hijack that narrative."

Chief among those questions were and are: What do the alleged attackers say?

Washington Post investigates and Rolling Stone apologizes

On Friday, the Washington Post reported that it reached one of the seven men, who said he had "never met Jackie in person and never took her out on a date." He also told the Post that he was not a member of Phi Kappa Psi, the fraternity in question.

Furthermore, the frat "said there was no event at the house the night the attack was alleged to have happened."

Around the same time the Post story came out, Rolling Stone published an extraordinary apology on its web site.

"[B]ecause of the sensitive nature of Jackie's story," the magazine wrote, "we decided to honor her request not to contact the man who she claimed orchestrated the attack on her nor any of the men who she claimed participated in the attack for fear of retaliation against her."

"We were trying to be sensitive to the unfair shame and humiliation many women feel after a sexual assault, and now regret the decision to not contact the alleged assaulters to get their account."

Erdely, for her part, has remained silent since the apology on Friday. Her voice mailbox is full and is no longer accepting messages. She did not respond to emails from CNN over the weekend.

On Saturday night, Rolling Stone changed the wording of Friday's apology letter, removing a sentence that said "we have come to the conclusion that our trust in her was misplaced." That sentence was condemned by some people as blaming the victim.

The revised letter said "These mistakes are on Rolling Stone, not on Jackie."

What went wrong: Was it 'belief getting in the way of facts?'

Over the weekend, Rebecca Lim, the editor-in-chief of the UVA student newspaper the Cavalier Daily, said that some of her fellow students "are unhappy with the ways that Rolling Stone portrayed the university" and frustrated that "it didn't fill in all of the gaps before publishing the article, and ended up hurting a lot of people as a result."

Sandra Menendez, a UVA student who knows Jackie and was interviewed by Erdely but not quoted, said she and several other students "felt really uncomfortable after being interviewed."

Speaking on CNN's "Reliable Sources" on Sunday, Menendez said she concluded that Erdely had an agenda: "I think she was trying to tell a really painful story, which is that sexual assault really does happen at the University of Virginia and also around the United States. I'm not quite sure if the story that was told, you know, really does speak truly to it."

Hanna Rosin, a writer for Slate and The Atlantic who raised questions about the article early on, said on "Reliable Sources" that she thought that if Rolling Stone was going to agree not to contact the alleged attackers -- "which you shouldn't, I don't think" -- the magazine should have disclosed that decision to readers from the very start.

"I think part of what went wrong is belief getting in the way of facts," Rosin said, suggesting that "wanting the story desperately to be true got in the way."

First Published: December 7, 2014: 8:31 PM ET

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