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Some VMware employees are concerned about the future of the company under Broadcom, as they worry about layoffs, a culture clash, and having to return to the office
As VMware prepares for a takeover by Broadcom, employees say they're uncertain about their future.
Employees told Insider they were most worried about layoffs since Broadcom would likely cut costs.
They were also concerned about losing remote work benefits and VMware's focus on DEI efforts.
Employees at the software giant VMware are facing a number of uncertainties following the news that the chipmaker Broadcom plans to acquire it for $61 billion.
No sooner had the deal been announced than the specter of layoffs began to loom over VMware, which had some 33,000 employees at the end of 2020. Under the leadership of CEO Hock E. Tan, Broadcom has earned itself a reputation for buying up lots of companies — and then aggressively cutting costs.
It appears that it may follow the same playbook at VMware: In late May, Broadcom leadership said at a town-hall meeting that under its watch, VMware would become "lean and flat," an employee present at the meeting said. And in an investor presentation, Broadcom said it would be "eliminating duplicative general and administrative functions" at VMware to increase profitability.
Insider spoke with four VMware employees about the deal, who agreed that the uncertainty around layoffs fed into a larger sense of doom and gloom at the company.
While some VMware employees are taking a more optimistic "wait and see" attitude, the company insiders said, some are already scrambling to find new jobs where things are a little more stable. Many want to get started on the job hunt early, as layoffs and hiring freezes in the industry have exacerbated employee concerns about making the jump to another company.
Employees worry that under Broadcom, VMware will lose much of what they believe makes it special — specifically, a culture that values innovation, diversity, and flexible working styles above a stone-cold focus on profits. In a more practical sense, too, it won't be clear until the deal closes how Broadcom plans to trim or reorganize VMware's product lines.
"From now until then, it almost makes work semi-meaningless or difficult because we don't know if our product will continue after six months," one VMware employee said.
VMware said in a statement that it was "too early to make assumptions about the outcome of the unsolicited acquisition proposal by Broadcom."
"Following the closing of the transaction, Broadcom Software Group will operate and rebrand as VMware, incorporating Broadcom's existing infrastructure and security software solutions as part of the VMware portfolio," the statement continued. "Combining our assets and talented team with Broadcom's existing enterprise software portfolio, all housed under the VMware brand, will create a remarkable enterprise software player, with a continued focus on technology innovation."
A culture clash may be brewing
Some employees said the takeover bid from Broadcom was shocking, especially since VMware spun off from Dell only last year. The software giant in Palo Alto has had a tumultuous few years, with former CEO Pat Gelsinger departing for Intel amid other executive changes.
"The internal dialogue was that we were going to go back to our former glory as an independent company," one employee said.
Tan, the Broadcom CEO, has tried to assuage some of those concerns, pushing the idea that the two companies will be stronger together.
"In terms of how our values align, we appreciate that VMware's culture is built on execution, passion, integrity, customers and community. We too share values like these. At Broadcom we prioritize accountability — to our customers, our partners, our shareholders and each other," Tan wrote in a letter to employees earlier this month.
Some employees, at least, aren't so sure, citing perceived differences between VMware's more flexible corporate culture and Broadcom's more buttoned-up approach to business.
"We're concerned about a culture clash between their company and ours," an employee said. "I know VMware is very employee-centric, which is why a lot of people work there."
For instance, employees said that while most VMware staff could work from home, Broadcom leadership had indicated that it generally wanted employees working in person. Working from home "gives you a lot of freedom and flexibility to do your job and care for the family," one employee said. "That's extremely important to me. It doesn't line up with Broadcom's way of operating."
And for VMware employees, the company's focus on diversity, equity, and inclusion has been a point of pride. Broadcom doesn't seem to share those values, one employee said. Some intend to present demands to Broadcom leadership, pushing them to retain key elements of VMware's commitments to diversity, equity, and inclusion, remote work, and its well-liked health-benefit plan.
"They only care about shareholder value, and they're not going to continue the programs that VMware employees are used to, the things we value," the employee said of Broadcom. A Broadcom spokesperson said that last year the company launched Diversity@Broadcom, an initiative to promote DEI across its workforce.
Amid all of this, the company's leadership is urging employees to be patient and see what happens — a message that's resonated with at least some employees, who want to see what happens before they decide to make a move.
"I think the general approach from management is, 'There's a lot we don't know. Stand by. Don't freak out. We've got a long road ahead,'" that employee said.
The full statement from VMware:
"It is too early to make assumptions about the outcome of the unsolicited acquisition proposal by Broadcom. While change can be difficult, we view this transaction as an opportunity to accelerate our multi-cloud strategy. Following the closing of the transaction, Broadcom Software Group will operate and rebrand as VMware, incorporating Broadcom's existing infrastructure and security software solutions as part of the VMware portfolio. Combining our assets and talented team with Broadcom's existing enterprise software portfolio, all housed under the VMware brand, will create a remarkable enterprise software player, with a continued focus on technology innovation. Collectively, we will deliver even more innovation to customers, enabling them to thrive in this increasingly complex multi-cloud era."
Got a tip? Contact reporter Rosalie Chan via email at rmchan@insider.com, Signal at 646.376.6106, or Telegram at @rosaliechan. Contact reporter Belle Lin via encrypted email (bellelin@protonmail.com) or corporate email (blin@insider.com).
More: VMware Broadcom m&a 2022 Enterprise Software | 2022-06-09T18:19:07Z | www.businessinsider.com | VMware Employees Worry About Layoffs and Culture Clash Under Broadcom | https://www.businessinsider.com/broadcom-acquisition-vmware-employees-layoffs-culture-clash-2022-6 | https://www.businessinsider.com/broadcom-acquisition-vmware-employees-layoffs-culture-clash-2022-6 |
Five House Republicans voted for a nationwide "red flag" law.
Biden previously called for a federal red flag law in the wake of a series of mass shootings.
The legislation, along with other House-passed measures, is not expected to pass the Senate.
Just five House Republicans broke with their party on Thursday and supported President Joe Biden's push for a nationwide "red flag" law, a further sign that any congressional action after a series of mass shootings will be limited in scope.
Red flag laws can give authorities the power to temporarily confiscate a person's firearm if they pose an immediate threat to themselves or others. Nineteen states and the District of Columbia currently have some form of red flag laws.
The five House Republicans are Reps. Brian Fitzpatrick of Pennsylvania, Anthony Gonzalez of Ohio, Chris Jacobs of New York, Adam Kinzinger of Illinois, and Fred Upton of Michigan. Fitzpatrick is the only one in the group who is running for reelection. Jacobs, who previously shocked his colleagues by announcing his support for a renewed federal assault weapons ban, announced that he would leave the House after New York Republicans blasted him for his changing position on gun rights.
One Democrat, Rep. Jared Golden of Maine, voted against the proposal. Golden previously opposed a package of gun reforms, including raising the legal age for buying semi-automatic firearms to 21.
The House passed Rep. Lucy McBath's bill on a largely party-line 224-202 vote. Her legislation joins a series of gun violence bills that will now move to the Senate. But like action for raising the legal age, the red flag legislation is almost certain to go nowhere.
McBath's legislation, the Federal Extreme Risk Protection Order Act, would empower federal courts to issue red flag notices if a family, household member, or law enforcement officer approached the court with information that a gun owner posed "a risk of imminent personal injury to self or another individual, by purchasing, possessing, or receiving a firearm or ammunition." A Georgia Democrat, McBath has made gun violence a focus of her career after her son, Jordan, was fatally shot in 2012.
Instead of the House-passed bills, senators have rallied around bipartisan talks that are likely to produce a more limited federal response.
Sen. Chris Murphy, a Connecticut Democrat who is involved in the discussions, made clear earlier Thursday that raising the age from 18 to 21 for buying AR-15s and similar guns is not under consideration. Rather, senators are looking at increasing the scope of background checks for younger buyers. Instead of a nationwide red flag law, senators have discussed ways to incentivize states to take action on their own.
More: Congress Gun Rights House Republicans House Democrats | 2022-06-09T18:19:25Z | www.businessinsider.com | The 5 House Republicans Who Voted for a Nationwide Red-Flag Law | https://www.businessinsider.com/five-house-republican-vote-for-a-nationwide-red-flag-law-2022-6 | https://www.businessinsider.com/five-house-republican-vote-for-a-nationwide-red-flag-law-2022-6 |
Street Fighter 6 / Capcom
Summer Game Fest and Day of Devs
Xbox and Bethesda press conference
Sony's State of Play
E3, the video game industry's largest annual conference, has been canceled for 2022.
In E3's place, new games are being announced through events like Summer Game Fest.
Summer Game Fest begins with a showcase on June 9 at 2 p.m. ET and continues through June 14.
In the video game industry , the early weeks of June are typically filled with anticipation as publishers prepare for E3, the largest annual showcase for new games. However, E3 2022 is canceled due to ongoing concerns with hosting a large in-person event during the pandemic. The organizing group behind E3, the ESA, says the conference will return in 2023.
In its place, we have events like Summer Games Fest, a collaborative online showcase hosted by The Game Awards and founder Geoff Keighley. Summer Games Fest begins on June 9 at 2 p.m. ET with a series of announcements and gameplay showcases presented by multiple developers. Summer Games Fest continues into the weekend with a major press conference from Xbox and Bethesda on June 12, and several more events through June 14.
Below, we've broken down the schedule and streaming details for every major event during Summer Game Fest, along with info on what you can expect from the industry's biggest publishers: Microsoft, Sony, and Nintendo.
Summer Game Fest schedule: How to watch every event from this year's E3 replacement
Summer Game Fest and Day of Devs — June 9, 2 p.m. ET
The Summer Game Fest showcase will kick things off with roughly one hour of announcements. You can expect news and trailers for upcoming games like Call of Duty: Modern Warfare 2, The Callisto Protocol, Gotham Knights, and One Piece Odyssey.
The stream will also feature appearances from celebrities like Dwayne "The Rock" Johnson and the developers of some of the year's most anticipated games.
You can stream the Days of Devs showcase at 2 p.m. ET on June 9 through the Summer Game Fest website, YouTube and Twitch.tv.
Devolver Digital showcase — June 9, 6 p.m. ET
Wizard with a Gun is a great example of the indie games Devolver Digital works to publish.
"Wizard with a Gun" / Devolver Digital
Devolver Digital is a popular publisher of indie games like Hotline Miami, Loop Hero, and Trek to Yomi. The company usually makes its E3 presentations into satirical skits, and so far 2022 looks to be no different.
Devolver released a teaser video parodying the anime "Neon Genesis Evangelion" and the countdown clocks that have become cliches for new video game announcements.
We don't know exactly what Devolver has planned for the showcase, but some previously announced titles include Terra Nil, Cult of the Lamb, and Wizard with a Gun.
The stream begins at 6 p.m. ET on June 9. You can stream it live at the Summer Game Fest site or Twitch.tv.
Netflix Geeked Week: Gaming — June 10, 1 p.m. ET
Netflix's "Castlevania" adaptation is set for another season.
Netflix is home to several shows inspired by video games, like "Castlevania" and "Cuphead," and even more on the way, including "Sonic Prime," "Tekken: Bloodline," and a new live-action "Resident Evil" series.
Netflix's Geeked Week presentation also promises info on more than 10 upcoming Netflix games, like Lucky Luna and La Casa de Papel. Netflix recently started offering games within its streaming app.
The stream starts on June 10 at 1 p.m. ET on the Summer Game Fest website.
Xbox and Bethesda press conference — June 12, 1 p.m. ET
Starfield is an upcoming game from the creators of Fallout and The Elder Scrolls.
Microsoft/Bethesda Game Studios
Xbox and Bethesda usually hold two of the biggest conferences at E3, but with the two companies recently agreeing on a merger, they now host a joint showcase.
Microsoft continues to focus on new additions to its Xbox Game Pass subscription, which is often compared to Netflix . Fans have been waiting for news on previously announced Xbox titles like Fable and Hellblade 2, as well as updates for existing titles, like the long-awaited multiplayer campaign for Halo Infinite.
Bethesda is planning to show off some major releases too, like the sci-fi roleplaying game Starfield and the cooperative multiplayer shooter Redfall, both of which were delayed to early 2023 to allow for more development time.
The Summer Game Fest site will stream the conference on June 12 at 1 p.m. ET.
Capcom showcase — June 13, 6 p.m. ET
Capcom's Street Fighter 6 is coming in early 2023.
"Street Fighter 6" / Capcom
Japanese publisher Capcom will present new footage of previously announced games, including the latest additions to hit franchises like Street Fighter, Resident Evil, and Monster Hunter.
Street Fighter 6 and a remake of Resident Evil 4 are due out in early 2023, but you can also expect to see reveals from Monster Hunter Rise: Sunbreak, an expansion launching on June 28. Capcom also promised visual updates for Resident Evil 2 and Resident Evil 3 to make them look even better on PlayStation 5 and Xbox Series X/S.
The stream kicks off at 6 p.m. ET on June 13. You can watch on the Summer Game Fest website.
Nintendo Direct — TBA
Nintendo showed off more of Pokémon Scarlet & Violet in a trailer on June 2.
Pokémon Scarlet & Violet / Nintendo
Nintendo isn't included as a Summer Games Fest partner but it's entirely possible that a Nintendo Direct presentation happens before the end of June.
Nintendo revealed the launch date of Pokémon Scarlet and Violet last week, and formally delayed the sequel to The Legend of Zelda: Breath of the Wild to Spring 2023.
Sony's State of Play — Streamed on June 2
While not officially a part of Summer Game Fest, Sony streamed a 40-minute presentation filled with announcements on upcoming PlayStation games on June 2. This included new footage of Street Fighter 6 and Final Fantasy 16, as well as multiple new games for the upcoming PlayStation VR2.
Sony also revealed that Marvel's Spider-Man will be coming to PC in August, after being a PlayStation exclusive for nearly four years. Spider-Man: Miles Morales will come to PC this fall too.
More: Features Insider Reviews 2022 Insider Picks Streaming | 2022-06-09T18:19:31Z | www.businessinsider.com | How to Watch Summer Game Fest, 2022's E3 Alternative | https://www.businessinsider.com/guides/streaming/how-to-watch-summer-game-fest-2022-e3-alternative-schedule | https://www.businessinsider.com/guides/streaming/how-to-watch-summer-game-fest-2022-e3-alternative-schedule |
Grocery shopping in Rosemead, California on April 21, 2022.
Two-thirds of households expect inflation to worsen over the next year, according to a new poll.
Americans are adjusting their activity accordingly to avoid the impact of surging prices.
Here are the top five ways households are preparing for even faster price growth.
The economy has shown signs of easing inflation, but Americans are still bracing for the price surge to worsen.
Inflation continues to run at the fastest pace in 40 years as supply-chain snags and Russia's invasion of Ukraine lift prices across the board. Soaring prices have dragged Americans' economic sentiments to the most pessimistic levels in a decade. And while some economists see March as representing peak inflation, most households aren't so hopeful.
Two-thirds of Americans expect the inflation problem to get worse over the next year, according to a new poll conducted by The Washington Post and George Mason University's Schar School of Policy and Government. Three-in-ten respondents said they expect inflation to get "much worse." Only 21% of households said they see the situation improving in the next year, and 12% said they expect the pace of price growth to generally stay the same.
The poll's findings cast a shadow over an otherwise encouraging economic outlook. The country added more jobs than expected in May, signaling the labor market is still recovering amid rising interest rates. Consumer spending — a crucial fuel for economic growth — has also held strong. Yet inflation can be influenced by Americans' expectations, and the new poll hints there's little hope for the price rally to slow.
Not only are households anticipating worse inflation, they're preparing for it. Here's how Americans are bracing for even faster price hikes in the months ahead, according to the new poll.
Searching for cheaper options
By far the most popular method for countering inflation was to spend more time hunting for deals, according to the poll. Eighty-seven percent of households said they put more effort into finding the cheapest price for products they buy. The shift has likely buoyed wholesalers and e-commerce giants like Costco and Amazon, as such businesses' ability to buy in bulk allows them to price goods lower than most brick-and-mortar retailers.
By comparison, 81% of Americans said the same in July of 2008, when the country was mired in the Great Recession .
Cutting back on unnecessary spending
Households are also reining in their spending on goods and services that are less important for day-to-day living. Seventy-seven percent of respondents said they decreased their spending on entertainment or eating out in recent months, according to the poll.
Should that trend intensify, service businesses could be in for a bumpier recovery. Such businesses have only recently started to rebound as Americans shift their spending from goods to services. Relatively low coronavirus infections opened the door for increased spending on in-person services, but if inflation keeps biting into Americans' finances, those businesses could see fallout from more cautious spending.
Delaying purchases
Even the spending that Americans were planning to do is being pushed back. Nearly three-quarters of surveyed households said they've put off purchases they were otherwise planning on. While that activity suggests Americans will revive their spending activity once inflation cools, a prolonged delay could starve the recovery of much-needed fuel.
Putting less cash aside for savings
Household saving boomed through the first year of the pandemic as lockdowns curbed in-person spending and stimulus bolstered Americans' finances. Inflation is now eating away at that trend.
Fifty-nine percent of respondents said they cut back how much they've been putting toward their savings in recent months. That's up from the 2008 level of 50%, signaling Americans are having a harder time building a financial buffer than they did during the Great Recession. Although household balance sheets remain fairly healthy, decreased saving could leave Americans less equipped to handle another downturn if one does arrive.
Easing up on energy use
Soaring energy prices have been one of the biggest contributors to today's sky-high inflation, and Americans have been adjusting their activity accordingly. Fifty-nine percent of households said they minimized their use of electricity and drove less to cut down on energy spending.
That reading shouldn't come as much of a surprise to anyone who has driven past a gas station in recent months. Gas prices hit a record-high nationwide average of $4.97 per gallon on Thursday, according to AAA. That's up nearly $2 from levels seen one year ago. The upward trend has shown no signs of stopping, either, as Americans' demand for gas continues to outstrip supply. Until prices fall back to more sustainable levels, cutting down on driving will likely remain one of the best ways to avoid high inflation.
More: Economy Poll Inflation inflation outlook
price growth | 2022-06-09T18:19:49Z | www.businessinsider.com | 5 Ways Americans Are Bracing for Even Higher Inflation: New Poll | https://www.businessinsider.com/inflation-hacks-ways-americans-avoiding-higher-prices-gasoline-costs-poll-2022-6 | https://www.businessinsider.com/inflation-hacks-ways-americans-avoiding-higher-prices-gasoline-costs-poll-2022-6 |
US House Minority Leader Kevin McCarthy.
He said that, so far, he's been "denied the right to participate," but never said he wouldn't.
House Minority Leader Kevin McCarthy railed Thursday morning against what he viewed as injustices the January 6 select committee has inflicted on him, Donald Trump, congressional Republicans, and MAGA supporters.
But he stopped short of closing the door to ever cooperating with the ongoing investigation as it kicks off its public hearing phase.
McCarthy is one of the Trump allies in Congress the select committee has subpoenaed to testify, a short list that includes fellow Republican Reps. Jim Jordan of Ohio, Andy Biggs of Arizona, Mo Brooks of Alabama, and others.
"They answered me but they didn't answer all my questions. So I sent them another letter and they haven't answered that" he said.
Should McCarthy join in at some point during the month-long hearing process the committee has laid out, he'll be lending his voice to what he claims is the legislative branch's worst mistake.
"It is the most political and least legitimate committee in American history," McCarthy decried while surrounded by Jordan, House Republican Conference Chairperson Elise Stefanik, House GOP Whip Steve Scalise, and others in the House TV Gallery. "It has permanently damaged the House and divided this country."
The House Republican leaders are in the meantime preparing their own accounting of what they say happened on and around January 6, in a report to be released at a later day.
More: Kevin McCarthy January 6 commitee hearings | 2022-06-09T18:19:55Z | www.businessinsider.com | Kevin McCarthy Hasn't Ruled Out Testifying About January 6 | https://www.businessinsider.com/kevin-mccarthy-january-6-investigation-testimony-committee-hearings-2022-6 | https://www.businessinsider.com/kevin-mccarthy-january-6-investigation-testimony-committee-hearings-2022-6 |
Tesla's future is 'brighter than ever' thanks to record demand a new factories, UBS says
A Tesla Model X.
REUTERS/Francois Lenoir/File Photo
"Tesla's future is brighter than ever," according to analysts from UBS.
The bank points to Tesla's record-high order backlog, growing margins, and an advantage in critical supply chains.
The analysts expect Tesla to become one of the top three global carmakers by 2030.
Tesla's future is "brighter than ever," UBS analysts said in a note to clients on Thursday.
That's thanks to three key reasons that should help Elon Musk's electric automaker rebound after a brutal 38% selloff this year fueled by shutdowns, shortages, and a broader tech slump.
The first piece of the puzzle is record demand for its cars, leading to record backlogs. Indeed, buyers need to wait a year or more to take delivery of some Tesla models.
The analysis also pointed to Tesla's two new factories in Germany and Texas, which are ramping up production and should roughly double the company's production capacity over time. They expect the new plants and Tesla's pricing will help keep the company's automotive margins above 30% for quarters to come.
Looking forward, they argue that Tesla has an edge over other players when it comes to sourcing critical components like semiconductors and batteries. UBS thinks batteries will be the next "industry-wide bottleneck," and that Tesla will outperform rivals by building cells in-house and maintaining better access to raw materials like lithium.
Elon Musk's "structurally superior" supply chain will allow Tesla to grow faster and more profitably than legacy automakers, UBS says.
Tesla has said it plans to grow sales by around 50% on average year over year, a goal UBS expects it will meet in 2022. Despite lost sales due to the coronavirus lockdown in Shanghai, UBS expects Tesla will deliver 1.4 million vehicles this year.
The bank says Tesla is in a good spot to become one of the top three global automakers by 2030. Today it's the most valuable, but sells millions fewer cars than giants like General Motors, Volkswagen, and Toyota. | 2022-06-09T18:20:25Z | www.businessinsider.com | Tesla's Future 'Brighter Than Ever,' UBS Analysts Say | https://www.businessinsider.com/tesla-stock-buy-strong-outlook-ubs-analysts-bright-future-2022-6 | https://www.businessinsider.com/tesla-stock-buy-strong-outlook-ubs-analysts-bright-future-2022-6 |
Walmart wants self-driving vehicles to outpace competition on delivery. It's betting on these 4 startups to get it on the road.
Alexa St. John and Ben Tobin
Walmart has placed its middle- and last-mile delivery bets on 4 AV companies, including Argo AI.
Walmart announced 4 autonomous vehicle partnerships in just over two years.
The company has said 'a closer store isn't always the answer' for customer experience.
Self-driving Walmart pilot programs span from Phoenix, Arizona, to Miami, Florida.
Walmart is laying its foot on the gas with investments in autonomous vehicles to enhance its delivery plans.
The Bentonville, Arkansas-based retail giant has forged partnerships with four self-driving companies in roughly two years to focus on middle- and last-mile delivery operations, a Walmart spokesperson told Insider.
From Phoenix to Miami and many places in between, Walmart has been testing pilot programs across the country to deliver products to stores and customers with greater efficiency and less humanity.
"With 90% of Americans living within 10 miles of a Walmart, a closer store isn't always the answer," Tom Ward, who has held a variety of roles at Walmart and is now the company's chief e-commerce officer, wrote in a December 2020 blog post. "Perhaps it's just a pickup location, with an autonomous vehicle making deliveries on a constant loop."
Widespread usage of autonomous vehicles is still years away. While small-scale deployments are slowly becoming reality, self-driving tech isn't the easiest to implement, given the complexities of getting a vehicle to operate entirely without a driver on different roadways and in dynamic environments.
Meanwhile, dozens of companies are racing to tackle the hardest problems to solve with autonomy. Aside from delivery applications, the tech has been applied to commercial vehicle use cases, like in the case of Waymo, Aurora, TuSimple and Embark.
And Walmart isn't the only firm looking to stay ahead of the curve with this technology: rival Amazon and shipping giants like UPS and FedEx have also recently made investments in self-driving companies.
Here's more on each of Walmart's four autonomous vehicle partnerships, and what these startups bring to the table.
Gatik began partnering with Walmart in 2019 and now operates with the company in Arkansas and Louisiana.
courtesy Gatik
Gatik was Walmart's first autonomous vehicle delivery partner, with the retailer announcing a pilot program with the Mountain View, California-based company in July 2019.
Founded in 2017 and with offices in California and Toronto, Canada, Gatik focuses on middle-mile delivery, moving goods between micro-fulfillment centers and retail locations.
"Where we live and succeed is the middle mile, so we transport goods exclusively on fixed, repeatable, predictable routes, in a short-haul B2B logistics landscape," Rich Steiner, Gatik's head of policy and communications, told Insider.
A Gatik spokesperson told Insider that the company currently works with Walmart in Louisiana and Arkansas. The companies announced in November that Gatik was operating daily without a safety driver behind the wheel on a delivery route for Walmart in Bentonville.
That deployment represents the first time an autonomous trucking company removed a safety driver on a middle-mile commercial delivery route, according to the companies.
Cruise is the only AV company that Walmart has actually poured money into.
Walmart and Cruise, GM's self-driving vehicle arm, announced their collaboration in April 2021.
Based in San Francisco, Cruise was founded in 2013. GM just recently invested another $3.45 billion in the unit after SoftBank Group Corp's Vision Fund exited its investment.
Customers place their Walmart order online and are notified if their order qualifies for Cruise delivery. Customers can then opt in to receive their order via self-driving vehicle, get updates on the car's status via Cruise's app, and grab the order from the car once it is at their curb.
The delivery pilot is currently available for customers of select Walmart stores in Scottsdale, Chandler, and Phoenix, Arizona.
A Cruise spokesperson said the company has made thousands of deliveries with multiple vehicles running multiple hours a day since the service began in May 2021.
Argo has been autonomously delivering goods in Miami, Florida, and Austin, Texas to Walmart's customers for the past several months.
Walmart teamed up with Ford- and Volkswagen-backed Argo in September to use Ford vehicles equipped with Argo's self-driving system in select cities.
The Pittsburgh-based company was founded in 2016 and has received $1 billion from Ford and $2.6 billion from Volkswagen Group.
An Argo spokesperson told Insider that operations with Walmart are currently underway and that for the past several months, Argo has been autonomously delivering goods in Miami, Florida, and Austin, Texas to the retail giant's customers daily.
The partners are also supposed to implement a collaboration in Washington, DC later this year.
Walmart announced its pilot with autonomous vehicle company Nuro in December 2019.
courtesy Walmart
Walmart announced its pilot with Nuro in December 2019.
The Mountain View, California-based startup was founded in 2016 by two former members of Google's self-driving car project. It also works with Domino's, Chipotle, CVS Pharmacy, Kroger, and FedEx.
Nuro and Walmart are expected to pilot grocery pickup and delivery in Houston, Texas, but haven't announced more details.
A Nuro spokesperson told Insider the two "are actively planning the next phase of the partnership."
More: Auto Retail Walmart
Autonomous delivery | 2022-06-09T18:20:31Z | www.businessinsider.com | Walmart Has Bet Big on These Four Self-Driving Vehicle Firms for Delivery | https://www.businessinsider.com/walmart-retail-betting-big-four-self-driving-vehicle-firms-delivery-2022-6 | https://www.businessinsider.com/walmart-retail-betting-big-four-self-driving-vehicle-firms-delivery-2022-6 |
US Rep. Elise Stefanik, R-N.Y., and former Republican New York gubernatorial candidate Carl Paladino.
Kevin Dietsch/Getty Images, KENA BETANCUR/AFP via Getty Images
New York House candidate Carl Paladino said Adolf Hitler is "the kind of leader we need today."
Paladino made the remarks in a WBEN radio interview in June 2021.
"I understand that invoking Hitler in any context is a serious mistake," he told Insider on Thursday.
Carl Paladino, a Republican congressional candidate in New York, described the Nazi dictator Adolf Hitler as "the kind of leader we need today" during a June 2021 radio interview.
Paladino's remarks to WBEN were unearthed by Media Matters, a left-leaning nonprofit organization that reports on right-wing media.
"I was thinking the other day about [how] somebody had mentioned on the radio Adolf Hitler and how he aroused the crowds," Paladino said in the interview when asked how he would boost voter enthusiasm. "And he would get up there screaming these epithets and these people were just — they were hypnotized by him. That's, I guess, I guess that's the kind of leader we need today. We need somebody inspirational. We need somebody that is a doer, has been there and done it."
—Eric Hananoki (@ehananoki) June 9, 2022
Paladino, a controversial figure who ran against former Gov. Andrew Cuomo in 2010, went on to say the New York GOP was "sound asleep" and criticized his party's communications strategy.
"They don't get up with new press releases to comment on this issue, comment on that issue," Paladino said. "I mean, there should be a debate going on in the newspaper every day."
Paladino denied that he praised Hitler in his 2021 comments, but conceded it was a "serious mistake" to invoke the Nazi leader.
"Any implication that I support Hitler or any of the sick and disgusting actions of the Nazi regime is a new low for the media," Paladino said in the statement. "The context of my statement was in regards to something I heard on the radio from someone else and was repeating, I understand that invoking Hitler in any context is a serious mistake and rightfully upsets people. I strongly condemn the murderous atrocities committed against the Jewish people by Hitler and the Nazis.
In a Thursday interview with The Buffalo News, Paladino said he picked the wrong historical figure.
"I should have used Churchill," he told the paper.
On June 3, Rep. Elise Stefanik, the third highest-ranking Republican in the House, endorsed her fellow New Yorker for his bid in the 23rd district, which covers and area around Buffalo and the state's Southern Tier along the Pennsylvania border.
—Elise Stefanik (@EliseStefanik) June 3, 2022
The congresswoman described Paladino as "a friend" and a "conservative outsider." Paladino is expected to run up against Nick Langworthy, the chairman of the New York State Republican Committee, in the primary set for August 23, which coincides with a special election to pick who will serve the remainder of Rep. Tom Reed, who resigned in May.
Stefanik's campaign did not immediately return Insider's request for comment.
Paladino deactivated his Facebook page on Tuesday after his account promoted a conspiracy theory regarding the May mass shooting in Buffalo. The candidate denied posting the message.
"I don't post," Paladino said, according to WIVB, the CBS affiliate in Buffalo. "I don't even know how to get on Facebook. My assistant does our posting only when I told her to post things."
More: Elise Stefanik Carl Paladino Hitler 2022 midterms | 2022-06-09T19:28:02Z | www.businessinsider.com | Stefanik-Endorsed GOP Candidate Praised Hitler's Leadership | https://www.businessinsider.com/carl-paladino-running-again-stefanik-endorsement-hitler-leadership-quote-radio-2022-6 | https://www.businessinsider.com/carl-paladino-running-again-stefanik-endorsement-hitler-leadership-quote-radio-2022-6 |
Philip Pilosian/Shutterstock
When the federal payroll support program ran out in 2020, airlines moved to downsize their workforces.
Most furloughed workers, but Delta offered buyouts targeted at its highest-earning employees.
As travel rebounded, the hiring spree gave Delta a relatively younger workforce, leading to significant savings.
Summer travel is back in force and airlines are racing to hire workers to meet demand.
As major US airlines navigate a tight labor market and rampant staffing shortages, many are now paying more per employee than before the pandemic. Delta, by contrast, has seen its median pay tick down, even as it staffs up — saving the company a bundle of cash on payroll in recent quarters.
Delta's savings are largely the result of a peak pandemic staffing strategy that focused on buyouts rather than furloughs, which is now allowing the airline to hire younger, less experienced staffers at cheaper salaries.
Delta CEO Ed Bastian described the financial phenomenon as a "juniority benefit" on an earnings call last fall.
"Many of our most experienced employees had chosen to retire and that's opened up opportunities for younger people, so there is a benefit to that," he said.
Delta's approach set it apart from top competitors like American and United. In September 2020, when the federal payroll support program for airlines was running out, airlines faced a choice. Those that received funding were barred from laying off or furloughing workers, but they could ask people to voluntarily retire early.
Delta acted early and elected to offer buyouts to roughly one-fifth of its workforce, or nearly 20,000 workers, including 2,000 pilots. Meanwhile, American and United waited and relied heavily on furloughs once funding restrictions were lifted in October.
Delta's 4,273 buyouts for flight attendants outnumbered the roughly 2,800 each from American and United, according to internal tracking data from the Association of Flight Attendants. As a percentage of its workforce, Delta's buyout was even larger, since the company has fewer total workers than American.
When a second round of funding arrived, American and United were required to rehire furloughed workers, while Delta hunted for new talent as travel rebounded faster than expected. In many cases, these new hires were younger, and therefore cheaper, than before.
And Delta has been hiring: the company reported adding 11,000 workers in 2021. When 3,000 positions for flight attendants were listed last year, the company said it received nearly 40,000 applications and had to shut down its portal.
One way this has helped the company's finances is there are now more pilots with less than ten years of experience than with more than 15 years, Cowen airlines analyst Helane Becker told Insider.
Still, some of the initial savings on higher-paid employees is now being offset by recent pay bumps as the company battles for talent among flight attendants and ground crews, Becker added. (Delta pilot compensation is largely set by a union contract.)
In the two years before the pandemic, Delta's reported median employee wage was higher than that of United or American, peaking at $118,000 compared with $74,700 and $61,100, respectively, in 2019.
In 2021, Delta was squarely between its competitors at $70,200, compared with $78,200 for United and $62,700 for American.
Those numbers could start to climb back up as Delta hires thousands more pilots, flight attendants, and mechanics this year. A successful union drive by the Association of Flight Attendants could also lead to pay increases at the airline (Delta has the lowest unionization of the major carriers).
For all the scheduling woes frustrating passengers, the company seems to be keeping investors happy and opening up more job opportunities in the industry for younger workers.
More: Airlines Delta American Airlines United Airlines | 2022-06-09T19:28:07Z | www.businessinsider.com | Delta's 'Juniority Benefit' Is Saving the Airline Loads of Cash | https://www.businessinsider.com/delta-juniority-benefit-saving-airline-loads-of-cash-2022-6 | https://www.businessinsider.com/delta-juniority-benefit-saving-airline-loads-of-cash-2022-6 |
The beach read of the summer is actually not a rom-com. 'One Italian Summer' centers on a mother-daughter relationship, and I couldn't put it down.
'One Italian Summer' is a picturesque novel about a mother-daughter relationship. Here's why it's the perfect slow-paced beach read to dive into.
"One Italian Summer" incorporates magical realism and romance into one atmospheric story.
It's a popular "beach read" pick for this summer.
Here are three reasons I recommend this summery read.
"One Italian Summer"
Rebecca Serle's last novel, "In Five Years," was an incredible, finished-in-one-sitting romantic read that I absolutely adored. So when her latest novel, "One Italian Summer," was released, I couldn't wait to get back to Serle's ethereal and atmospheric writing.
Unlike "In Five Years," "One Italian Summer" isn't really a romance book, though there are moments of passion sprinkled throughout. It's a contemporary novel that follows Katy to the Amalfi Coast after her mother's passing. The story uses elements of magical realism to bring the past to life as Katy explores Italy, grapples with her grief, and aches to understand her mother through the country that she once roamed herself.
I read "One Italian Summer" over one sunny weekend and here are three reasons I think it's the perfect beach read.
1. The novel's sunny setting compels you to read outside.
The book primarily takes place on the Amalfi Coast in Italy.
Francesco Riccardo Iacomino/Getty Images
In the wake of her mother's passing, Katy is completely lost. As Carol was the "great love of her life," she feels like she doesn't quite know who she is or what to do in a world without her mother. The one thing Katy is sure of is she will still embark on the trip they had planned: to visit the Italian city where Carol spent the summer before she met her father. Katy leaves alone and takes off for Italy with a need to rediscover herself.
When Katy lands in Positano on the Amalfi Coast, "One Italian Summer" takes on an atmosphere of salty air, chilled wine, and tanned skin that's so palpable, it would shock me if Serle hadn't spent a summer there herself just to capture it properly.
I loved getting lost in the world Katy was slowly taking in. Between boat trips, impeccably described food, and sun-soaked narratives, this novel begs to be read with the sun on your face, whether it's from a sandy beach or a patio chair, which was exactly how I spent my time while reading this book.
2. It's a short read that's easy to put down and pick up.
Soon after Katy's arrival, she encounters the impossible — her own mother, perfectly preserved from the summer she'd spent in Italy nearly 30 years before. Serle has used magical realism like this before in "In Five Years" and it's my personal favorite use of fantasy because it's casual, exists without many (or any) rules, and nestles into the story with an air of passive indifference.
Despite this appearance of her mother, "One Italian Summer" is certainly not the most eventful novel I've ever read, with many of the plotlines casually waxing and waning between Italian meals and Katy's struggles to grapple with her grief. This lack of urgency throughout made this book easy to put down but easy to pick up every time I wanted to resume my virtual escape to Italy.
3. The important messages of the story don't reveal themselves until the end, which kept me engaged to the last page.
I loved the final messages of "One Italian Summer," which went far deeper than coping with grief. Instead, my two favorite quotes truly summarize what I got out of this novel: "Even inaction is a choice" and "There is more to life than just continuing to do what we know. What got you here won't get you there."
"One Italian Summer" is about loss, but it's also about change, both willing and unwilling, and the choices we make — or purposefully do not — that shape who we are. Once these themes revealed themselves, I felt that each event or scene from earlier in the book had greater meaning and I understood how they cumulated to the final takeaways of the novel.
"One Italian Summer" may not be the most eventful novel I've ever read, but with a combination of an incredibly atmospheric setting, Serle's fabulously illusory writing, and a satisfying emotional ending, it's still one of my favorite beach reads of 2022.
I also listened to the audiobook version of this novel, which contributed even more to its sunny disposition and emotional narrative — I recommend giving it a try if you're someone who needs a lot of action to keep the pages turning.
More: Insider Reviews 2022 Insider Picks IP Reviews IP Freelance | 2022-06-09T19:28:08Z | www.businessinsider.com | 'One Italian Summer' by Rebecca Serle Review: the Perfect Beach Read | https://www.businessinsider.com/guides/learning/one-italian-summer-book-review | https://www.businessinsider.com/guides/learning/one-italian-summer-book-review |
Is WhatsApp safe?
How to keep your WhatsApp data secure
A previous security risk of WhatsApp group chats
Is WhatsApp safe? What to know to keep your data secure on the messaging platform
WhatsApp is relatively safe thanks to end-to-end encryption on all chats, which makes it a highly secure messaging app.
Your WhatsApp data is vulnerable if you don't encrypt your WhatsApp backup; you can enable that with just a few taps.
A previous group chat vulnerability, which made private chats discoverable via a Google search, has been resolved for over two years.
With about 2 billion monthly active users, WhatsApp is the single most active and popular mobile messenger app. That kind of popularity tends to make software vulnerable, which means there's good reason to wonder if WhatsApp is safe and secure or if it's risky to use the service.
The short answer: No messaging system is without vulnerabilities. But even so, WhatsApp is generally considered a secure messaging platform thanks its built-in end-to-end encryption.
"Any social media platform has security risks, and every platform has hackers attempting to break through its security measures," says Kristen Bolig, CEO at SecurityNerd.
But unlike many similar messaging platforms, WhatsApp is built with strong end-to-end encryption.
"Any messages sent between any users are fully encrypted, so the only people able to decode them are the sender and recipient — not even WhatsApp. So even if hackers intercept a message, they aren't able to decode it," Bolig says.
In principle, no one can decrypt the data at any point in the communication process, which is much more robust security than you'll find in apps like Snapchat, Instagram, and Twitter.
There is a notable caveat, though. Critically, your data, including chat and voice calls, are only secure and encrypted within the WhatsApp chat ecosystem. Both Android and iPhone devices can back up app data — that's handy in case you need to restore data to a new device.
But by default, this backup is not encrypted. If your backup on iCloud or Google Drive is hacked, your WhatsApp data is vulnerable. There is a solution, though: It's possible to encrypt your backups, though this option is disabled by default. To keep your WhatsApp data fully secure, you should enable encryption for your WhatsApp backups.
1. Start the WhatsApp app.
2. If you have an iPhone, tap Settings at the bottom right. On Android, tap the three-dot menu at the top right and choose Settings in the dropdown menu.
3. Tap Chats.
4. Tap Chat Backup.
5. Tap End-to-end Encrypted Backup and then tap Turn On.
By default, encrypted backups in WhatsApp are turned off.
In addition, as with any online platform, WhatsApp has a vulnerability in potential incursion from spam messages. For more information and a few security suggestions, see our guide on ways to spot WhatsApp spam and stop it from reaching you.
You might have heard about another risk to your WhatsApp data — this one related to WhatsApp group chats. In 2020, it was discovered that Google indexed links to WhatsApp group chats, which meant that it wasn't necessary to have the private code to join a chat; it was instead possible to find and join group chats on WhatsApp simply by performing a targeted Google search.
This sounds alarming but it is not as serious as it might at first seem. When someone joins a WhatsApp group chat, for example, everyone in the group is notified, so it's not possible for a stranger to lurk. "An admin can always change or revoke the group invite link if they see it has been compromised," says Leslie Radka, founder of GreatPeopleSearch.
But more importantly, this leak was plugged quickly. Within days of this vulnerability's disclosure in March 2020, "WhatsApp began to include the noindex tag on these pages, which excludes them from indexing," Radka says. The result: The vulnerability was patched and group chats are no longer discoverable on search engines. There are currently no known security issues that affect WhatsApp users along these lines.
TECH How to lock WhatsApp on your phone and prevent unwanted access to the messaging app
TECH How to create a WhatsApp group and send an invitation link so your contacts can easily join a group conversation
TECH How to change your phone number on WhatsApp from the same phone or a new phone
More: WhatsApp Online security Social Media Reference Freelancer | 2022-06-09T19:28:28Z | www.businessinsider.com | Is WhatsApp Safe? What to Know to Keep Your Data Secure | https://www.businessinsider.com/is-whatsapp-safe | https://www.businessinsider.com/is-whatsapp-safe |
How much a TikToker with about 400,000 followers earns by letting his audience pay to disturb his sleep
Marta Biino and Dan Whateley
Jakey Boehm (left) has found success gamifying the act of sleep on TikTok Live. On the right is his sleeping setup.
Jakey Boehm.
Jakey Boehm is an Australian TikToker known for his interactive sleep streams.
Boehm is one of many "sleepfluencers" who have built audiences by livestreaming while dozing off.
Here's how much he makes from his audience through TikTok Live's gifting feature.
At 11 p.m. on any given night, when most people are winding down for a good night's sleep, Jakey Boehm starts his work day by turning on the "Live" function on his TikTok app.
Boehm, a 28-year-old Australian TikToker, is a "sleepfluencer," a social-media creator who films content while they sleep — or try to sleep — in front of thousands of fans in real time. The fans, meanwhile, do whatever they can to keep him up.
Boehm has earned tens of thousands of dollars from his fans since he started livestreaming in March. In May, he earned $34,000 from TikTok Live, according to screenshots of his TikTok dashboard viewed by Insider.
"It's seriously life-changing money," he told Insider. "The first week I made about $5,000 dollars, and that's where I thought 'This is big, I can do something really crazy here.'"
The trend of sleep streams on TikTok and other social-media platforms isn't new. Creators have filmed themselves dozing off on streaming platforms, like Twitch , for years.
Some sleep influencers simply set up their phones next to their beds and close their eyes, hoping their followers will send them gifts and chat amongst themselves while they rest. Others, like Boehm, gamify the idea of livestream sleeping by creating opportunities for their fans to try to wake them up.
Boehm coded a script that reads the chat from his livestreams to activate different sounds or turn on distracting items in his room when he receives a "gift." One gift turns on neon lights, for example, while another turns on loud music.
Within a month, he was making so much money that he stopped freelancing as a web developer and committed to streaming full time. He now has about 400,000 followers and works 49-hour weeks, going live every night from 11 p.m. to 6 a.m.
How Boehm uses TikTok gifts to gamify his sleep
Using TikTok's gifting feature, Boehm has created an elaborate system to allow users to disrupt his sleep — and help him earn money.
He assigns a different distraction to each gift he receives and breaks it down with a key hanging above his bed. If a viewer gifts him a cap icon, for example, a noise will go off imitating FBI agents knocking on his door; a gift of a duck will trigger a quacking noise. The bigger the gift, the louder — and longer — the disruption.
Gifts are one of TikTok's livestream monetization tools.
The gifts come in various forms, such as a rose, a bottle of perfume, or a doughnut. Each gift corresponds to a set amount of coins. A rose, for example, currently costs one coin, while a bottle of perfume costs 20 coins.
Examples of gifts on TikTok Live.
Screenshot from TikTok.
Users can purchase coins for money and use those coins to buy the various gifts for livestreamers. Those gifts convert into diamonds that the streamer accrues and can redeem for money. Exactly how much money those diamonds are worth — and what percentage of the gifts TikTok takes for itself — is a black box.
Boehm's room.
Boehm has managed to stay among the top 50 streamers on TikTok Australia for the past five weeks, and in the week of June 6, he was in the top 30, with a total of 634,000 viewers over seven days.
"I love watching for hours at a time to see if the big expensive gifts go off," Toni Rice, a regular viewer of Boehm's livestreams, wrote to Insider in a DM. "You don't often see them on TikTok. It's always amazing to see, and the room goes wild as well."
Boehm isn't alone in drawing viewers. TikTok sleepfluencers @omg_letmesleep and @best.olty, who follow a similar interactive format, also have impressive followings. (Insider could not reach them for comment.)
But not all sleepfluencers are the same, and some, like, Eliza Diaz, a 23-year-old streamer with around 422,000 TikTok followers, simply film themselves sleeping in an effort to help others relax.
"Just like how when you yawn and it triggers a yawn for someone else, it's like the same thing," Diaz said. "When you see someone sleeping, it makes you tired and fall asleep."
Making a habit of disrupting sleep for followers could be a mixed bag, Dr. Sophie Bostock, a behavioral health scientist, wrote in an email to Insider.
"Disrupted sleep could lead to conditioned arousal, where your sleep becomes lighter as the brain learns to anticipate interruptions," she wrote. "I suppose the flipside is that if this behaviour generates financial security, and you worry less about paying the bills, it could have positive impacts on sleep when you're away from the camera."
That money — and seeing his audience grow — has motivated Boehm to keep his unusual sleep schedule, at least for now.
"I sort of enjoy doing it. Seeing the page grow so much consistently gives me a lot of joy," he said. "It's almost like an addiction really, you're just trying to get up to the top all the time."
More: TikTok Livestream tiktok live
Livestreaming money | 2022-06-09T19:49:51Z | www.businessinsider.com | How Much a TikToker With 400K Followers Earns Livestreaming His Sleep | https://www.businessinsider.com/how-tiktok-creator-made-34000-livestreaming-sleep-sleepfluencer-2022-6 | https://www.businessinsider.com/how-tiktok-creator-made-34000-livestreaming-sleep-sleepfluencer-2022-6 |
What is high-risk auto insurance?
Who is a high risk driver?
High risk auto insurance cost
Companies for high-risk drivers
10 ways to lower your insurance cost as a high-risk driver
10 tips to lower your car insurance premium as a high-risk driver
Teens and young adults tend to see higher rates than older, more experienced drivers.
High-risk drivers are a greater liability to insurers as they are more likely to file claims.
They usually see higher premiums and can even be denied coverage.
Reduce your premiums by shopping around and making an effort to lower your risk.
Check out Insider's guide to the best, cheap, car insurance companies in 2022.
Most states require drivers to have auto insurance . However, those with bad driving records may find themselves struggling to cover the added costs that come with being deemed a high-risk driver.
High-risk drivers can expect to see more expensive premiums. Even those with clean driving records may see rate increases if they fit a profile that the insurance company determines makes them more likely to have an accident. Nevertheless, there are still ways to lower your cost and stay adequately covered.
"Insurance companies define a high-risk driver as someone who is more likely to file a claim," says Josh Damico, vice president of insurance operations at Jerry, a car-insurance comparison platform.
High-risk drivers often have poor driving histories, have had lapses in coverage, or live in hazardous areas. If you are a high-risk driver, expect to pay higher premiums for your policy or even denial of coverage.
Some providers are more friendly to high-risk drivers. These insurers may be lenient on common aspects that affect your premiums like your credit score . High-risk auto insurers will take on the additional risk to insure you, and some offer more affordable coverage than their competitors.
What determines who is classified as a high-risk driver?
Multiple factors play into your premium, from your claim history to your gender. However, below are the most common indicators of a high-risk driver:
Inexperience: Teens and young adults tend to be new drivers with little to no driving history and, as a result, face higher rates. Most insurance companies offer discounts to teen drivers for having good grades or taking driving safety courses. If you're a teen or young adult, consider staying on your parent's auto policy to keep costs low.
Poor credit: Many underwriters use your credit history to determine your likelihood of filing a claim. Those with poor credit tend to have higher premiums than those with good credit scores.
Poor driving record: If you have a history of traffic violations, at-fault accidents, or DUIs, you may face significantly higher premiums, especially if you've filed any claims.
Lapses in coverage: Having gaps in your coverage is an indicator of a high-risk driver. This is because insurers see you as willing to drive and take on more risks without protection. Driving without insurance is also illegal in most states.
Location: If you live in an area with a high rate of accidents or crime, the likelihood of your car being damaged or stolen increases. Insurers take this into account when calculating your premiums.
Type of car you drive: Poor crash safety test ratings, increased risk of rollovers, and how likely your make and model of car is to be stolen may affect your premium.
Quick tip: See Personal Finance Insider's average car insurance cost guide for the average cost of car insurance in your state.
How much does high-risk auto insurance cost?
If you're a safe driver in the market for an auto insurance policy, expect to pay an average of $1,070 per year, according to data from the Insurance Information Institute. However, if you're a high-risk driver, you may pay rates 30% to 80% higher, according to Damico.
Fortunately, minor traffic infractions like speeding will fall off your record within three to five years, according to Progressive. When your record is clean again, you will see a decrease in premiums.
The amount you'll pay for high-risk auto insurance will depend on what caused you to be put in that category. Driving under the influence of alcohol or drugs results in some of the biggest increases.
Driver's profile
Rate of increase
79% more after your first conviction
71% more in states where applicable
43% more for two speeding tickets
32% more for an at-fault accident that injures another driver
Source: Insurance.com
Where to get affordable high-risk auto insurance
If you are a high-risk driver, do your due diligence and shop for coverage, as some insurance providers may not want to cover you. Remember, it is illegal to drive without your state's mandatory minimum coverage. Some providers specialize in high-risk coverage so, you might be able to get better deals.
Here are some of the cheapest companies for drivers with a DUI, at-fault accident, and speeding tickets, according to the insurance-comparison shopping website Insurify:
Companies for drivers with DUIs
Drivers with a DUI see an average premium increase of 79% after their first infraction. Here are some of the cheapest auto insurance companies for drivers with a DUI.
Average monthly rate
Amigo USA
Clearcover
Companies for drivers with one at-fault accident
Drivers with one accident see an average premium increase of 32% after their first infraction. Here are some of the cheapest auto insurance companies for drivers with an at-fault accident on their record.
Companies for drivers with a speeding ticket
Minor traffic violations are usually wiped off your record in three to five years. However, you will typically pay higher premiums within that period. Here are some of the cheapest auto insurance companies for drivers with a speeding ticket.
TSC Direct
While these are some of the cheapest rates for insurance companies, it is essential to do your own research to determine if the company offers policies that are right for you
Finding affordable car insurance is often a challenge for high-risk drivers.
"More than 70% of Americans overpay for car insurance," says Damico. While we don't recommend lowering your coverage to reduce your car insurance bill, there are some actions you can take to reduce your premiums:
Shop around and compare: Use an online broker or work with an independent agent to find an insurance company with the best coverage and the most competitive rates.
Stack discounts: Discounts can have a big impact on your premiums. Insurance providers typically list the discounts that they offer on their websites. Contact your insurance agent to see if you qualify for lesser-known discount opportunities.
Bundle insurance policies: Many companies offer discounts for bundling your policies, like your home insurance and auto insurance. You may also qualify for a discount for insuring multiple vehicles.
Raise deductibles: Your deductible can have a big impact on how much you'll pay for your insurance premiums. The higher the deductible, the lower your monthly rate.
Be a safe driver: Many providers offer discounts for good driving behavior tracked through smart devices. Insurers also typically offer a discount for taking a defensive driving course, especially if you have poor driving history.
Drive less: Putting fewer miles on your vehicle can decrease your premiums. Consider biking, taking public transportation, and using ride-sharing services.
Downsize your vehicle: Trading down to a smaller car can lower your monthly car payments and reduce your insurance payments. Larger cars often result in higher premiums. Many insurers also offer discounts for electric or hybrid cars.
Have a good credit score: In states where credit-based insurance is applicable, having a good credit score (above 670) can reduce your insurance premiums.
Install auto safety devices: Safety features like airbags and antilock brakes can save you on your policy. Let your insurer know if you have any, and inquire about discount opportunities.
Shopping annually: Many policyholders make the mistake of keeping their insurance providers and not shopping annually. You may miss out on saving opportunities and lower rates than competitor companies offer by doing this.
PERSONAL FINANCE The average cost of car insurance in 2022
PERSONAL FINANCE Car insurance rates are increasing in 2022, but there are still options for saving on your premiums
More: high risk auto insurance Auto Insurance Car Insurance Jerry | 2022-06-09T21:22:44Z | www.businessinsider.com | High Risk Auto Insurance: Companies, How It Works, Who Needs It | https://www.businessinsider.com/personal-finance/high-risk-auto-insurance | https://www.businessinsider.com/personal-finance/high-risk-auto-insurance |
Sen. Dick Durbin, Chairman of the Senate Judiciary Committee
Biden recently approved the biggest group student-loan discharge for defrauded Corinthian students.
Sen. Dick Durbin said he should extend that relief to 3,600 defrauded Westwood College students in Illinois.
A group claim for Westwood was submitted six years ago, but the Education Department has yet to act on it.
After President Joe Biden enacted the biggest group student-loan relief for defrauded borrowers, a top Democratic senator wants him to extend the favor to others.
On Thursday, Senate Majority Whip Dick Durbin sent a letter to Education Secretary Miguel Cardona to follow-up on requests for relief, known as borrower defense to repayment claims, for over 3,600 students defrauded by Westwood College in Illinois. The for-profit school shut down in 2015, and following its closure Illinois Attorney General Kwame Raoul filed a group borrower defense claim on behalf of students in the state's criminal justice program.
Durbin says it time Cardona approves that claim, as he did with nearly 600,000 students defrauded by Corinthian Colleges two weeks ago.
"These were the first group discharges since 2017, when former Secretary Betsy DeVos irresponsibly stopped processing borrower defense applications and issued blanket denials to clear the backlog before leaving the Department," Durbin wrote. "While I applaud the Department's actions to undo the harm caused by the Trump Administration and streamline access to debt relief that hundreds of thousands of borrowers are legally entitled to, I believe the Department also must provide group discharges for borrowers who attended Westwood College."
Durbin was referring to a methodology implemented under DeVos that compared the median earnings of graduates with debt-relief claims to the median earnings of graduates in comparable programs in order to determine if schools had overpromised earning potential and defrauded students. Compared to a 99.2% approval rate for defrauded claims filed under President Barack Obama, DeVos had a 99.4% denial rate for borrowers.
According to investigations from the Illinois Attorney General's office, Westwood misrepresented costs and employment prospects to students, leaving many of them with big student debt loads but no degree. That's why, along with pressure from Durbin, a group of advocacy groups including Student Defense, which advocates for borrowers' rights, at the end of May sued the Education Department for failing to process Westwood's group discharge claim for six years.
"For nearly six years, across administrations, the Department has shirked its obligations, leaving countless borrowers in the dark about whether or when they'll receive the relief they're owed under federal law," Student Defense Litigation Director Eric Rothschild said in a statement. "The Department has everything they need to free borrowers from financial limbo and offer them a well-deserved fresh start. It's beyond time they act on it."
The department did approve some relief for Westwood students in February, but Durbin and advocates said defrauded borrowers should not have to submit individual claims, and the department can provide that relief on its own.
"It is evident that Illinois students have waited far too long for relief," Durbin said. "Decisive action by the Department would show a further commitment to provide targeted relief," he added, referring to debt already wiped out for defrauded students, along with borrowers with disabilities.
More: Policy Politics Economy Dick Durbin | 2022-06-09T21:22:56Z | www.businessinsider.com | Biden Must Wipe Out Student Debt for 3,600 Defrauded Borrowers: Durbin | https://www.businessinsider.com/student-loan-debt-forgiveness-biden-defrauded-westwood-borrowers-durbin-2022-6 | https://www.businessinsider.com/student-loan-debt-forgiveness-biden-defrauded-westwood-borrowers-durbin-2022-6 |
US Brigadier General Steven Butow said Starlink has "destroyed Putin's information campaign."
The internet service helped organize attacks and kept soldiers in touch with family, per Politico.
SpaceX CEO Elon Musk sent over the first Starlink terminals within days of Russia's invasion.
Starlink, the satellite-internet service from SpaceX, has been crucial part of Ukraine's defense against Russia, according to a US official and Ukrainian military members.
From sending coordinates for artillery strikes against Russia to broadcasting Ukraine President Volodymyr Zelenskyy's speeches across the world, US Brigadier General Steven Butow told Politico that SpaceX's Starlink services have been indispensable to the Ukrainian military. The general has worked closely with SpaceX as the director of the space portfolio at the defense innovation unit.
"The strategic impact is, it totally destroyed [Vladimir] Putin's information campaign," Butow told the publication. "He never, to this day, has been able to silence Zelenskyy."
Starlink's capabilities are put to the test on a daily basis by Ukrainian soldiers. Politico reported that the satellite dish is used to plan missions and fight misinformation from Russia, as well as keep soldiers in touch with their family and provide a source of leisure activity during down times.
Last week, Zelenskyy praised the satellite service for allowing the Ukraine to maintain contact with the rest of the world.
"Sometimes we completely lost communication with those places. To lose contact with those people is to lose control completely, to lose reality," he said. "Believe me: people who got out of the occupied cities, where there was no such assistance as Starlink, said that the Russians told them that Ukraine doesn't exist anymore, and some people even began to believe it. I am really grateful for the support of Starlink," Zelenskyy added.
Starlink has been instrumental in allowing Ukraine to overcome Russian cyberattacks. On February 24 — one hour before Russia launched its attack on Ukraine — the nation hacked the satellite provider that was used by the Ukrainian military, per US and UK intelligence reports.
Two days after the attack, SpaceX CEO Elon Musk shipped Starlink dishes to Ukraine within hours of a request for Starlink terminals from Mykhailo Fedorov, the vice prime minister of Ukraine. Since, SpaceX has continued to send materials. Last week, the company reported it had delivered 15,000 Starlink kits to Ukraine over the past three months.
Starlink operates as a constellation of satellites in Earth's lower orbit. The service was initially designed to provide internet coverage to remote areas. Most recently, SpaceX has begun advertising its service as an option for RV owners.
Read Politico's full story on its website.
More: Elon Musk Starlink SpaceX Russia | 2022-06-09T21:23:14Z | www.businessinsider.com | US General: Starlink 'Destroyed Putin's Information Campaign' | https://www.businessinsider.com/us-general-elon-musk-spacex-starlink-destroyed-putin-information-campaign-2022-6 | https://www.businessinsider.com/us-general-elon-musk-spacex-starlink-destroyed-putin-information-campaign-2022-6 |
Ukrainian special-operations forces during an exercise in May 2019.
ArmyINFORM/Ukrainian Ministry of Defense
Since Russia's 2014 invasion of Ukraine, Ukrainian troops have trained closely with the US military.
That includes Ukraine's special-operations forces, which have doubled in size over that period.
Since Moscow began its latest attack in February, those Ukrainians have wreaked havoc on the Russians
Three months into the war, the Ukrainian military has awed the world with its impressive defense against the invading Russian forces.
Ukrainian special-operations forces have played a big part in that resistance. But to develop those skills, Ukraine's operators have been working hard for years and learning from the best.
How the US helped Ukraine's commandos
A US Army Green Beret does a close-quarters-battle drill with Romanian and Ukrainian special operators in Romania, May 6, 2021.
Romanian army/Capt. Roxana Davidovits
Since 2014, US special-operations forces have been training their Ukrainian counterparts on pretty much every skill set and mission set imaginable.
The years-long effort by the US and its NATO allies to train their Ukrainian counterparts has created a solid military force with a robust non-commissioned corps. It also created a cadre of potential recruits for Ukrainian special-operations units, helping those units not only get better but bigger.
"Our special-operations forces help develop and work with other allies to come into Ukraine and help build up the Ukrainian special-operations forces," Gen. Richard Clarke, the head of US Special Operations Command, told members of the House Armed Services Committee at a hearing in April.
Since that training began eight years ago, those Ukrainian forces have "doubled in size," Clarke said.
Ukrainian troops during special-operations training in November 2015.
Andriy Ageev/Ukrainian Ministry of Defense
The SOCOM boss acknowledged that the US effort to train Ukraine's special operators was broad and included conventional US troops and National Guard units. (Special-operations troops from the UK and other NATO militaries have also trained Ukrainians.)
Clarke highlighted that Ukrainian special operators have also added new capabilities, with US operators bringing them up to speed on operational planning, urban warfare, and small-unit tactics, among other things. But it is in the unconventional-warfare mission set where the Ukrainians have learned the most.
Before the first Russian invasion of Ukraine in 2014, Ukrainian special operators were aligned with Russian doctrine and practice. As former Soviet republic, Ukraine's military was heavily influenced — and in a lot of ways, it still is — by the Soviet model.
That history means there weren't a lot of differences between Ukrainian and Russian special operators, but that has completely changed after eight years of training with Western commandos.
Ukrainian, Romanian, and US Army Special Forces soldiers during an exercise in Romania, May 6, 2021.
Today, Ukraine's military has a competent special-operations component that can tackle any problem that Russia throws at it.
Beyond combat skills, US Army Psychological Operations and Civil Affairs troops worked with the Ukrainians on soft skills that could increase their effectiveness on the battlefield.
From the start of the current conflict in February, Ukrainian forces have conducted highly effective information warfare. The information that Ukrainians have intercepted, sometimes with help, and distributed the world — radio intercepts of Russian troops in disarray and video after video of Russian hardware being destroyed — has compounded the humiliation of Russia's military and security services.
"One aspect is that it was a lot of our civil affairs, our psychological operations, and our Special Forces that were also working side-by-side with Ukrainians," Clarke told lawmakers. "It wasn't just combat forces, but it was also other parts of special operations that work very closely with their Ukrainian partners."
Ukrainian special-operations forces
A Ukrainian special-operations forces soldier secures an opposing-force prisoner during an exercise in Bulgaria, June 17, 2019.
US Special Operations Command Europe
In the weeks after Russia's attack on Ukraine began in late February, Ukrainian special-operations forces wreaked havoc behind Russian lines.
Using their inherent organizational flexibility and taking advantage of the Russians' lackluster force-security practices, Ukrainian special operators took out Russian logistical convoys, starving Russian frontline units of ammo, fuel, and reinforcements.
One tactic Ukrainian commandos used was the employment of small anti-tank weapon teams on quad-bikes or motorcycles. These mobile teams could outrun and outmaneuver the cumbersome Russian columns and use anti-tank missiles or mines to take out Russian tanks, armored personnel carriers, and infantry fighting vehicles.
Videos frequently emerged showing Ukrainian commandos ambushing and destroying Russian mechanized columns and even elite Russian units, such as the VDV airborne forces.
The Russian advance ground to a halt, and Russian troops have since retreated from many areas in northern and northeastern Ukraine. Ukrainian special operators were key to stopping the Russian advance on Ukraine's capital, Kyiv, in particular.
Ukrainian special operators have performed admirably thus far. With the conflict appearing to settle into a new, more static, and more grinding phase, whether Ukraine's military can keep pushing the Russian invaders back will depend on more than its commandos.
More: Ukraine Russia Ukrainian Military Special Operations | 2022-06-09T22:53:40Z | www.businessinsider.com | Ukrainian Special-Ops Forces Double in Size While Training With US | https://www.businessinsider.com/ukrainian-special-ops-forces-double-in-size-during-us-training-2022-6 | https://www.businessinsider.com/ukrainian-special-ops-forces-double-in-size-during-us-training-2022-6 |
Ohio Republican Senate candidate JD Vance speaks to reporters following a GOP debate at Central State University in Wilberforce, Ohio, on March 28, 2022.
Watchdog groups filed a complaint about JD Vance's campaign and a PAC funded by Peter Thiel.
The complaint said the campaign and the PAC used a secret website to flout campaign finance law.
The website included campaign strategy documents, opposition research, and text for campaign ads.
A new complaint alleges Senate candidate JD Vance, a Republican from Ohio, illegally coordinated with a super PAC funded by billionaire Peter Thiel, a cofounder of PayPal and friend of Vance's.
The complaint, first obtained by The Daily Beast, was filed on Monday with the Federal Election Commission by Campaign Legal Center and End Citizens United.
The watchdog groups said Vance's campaign and Protect Ohio Values super PAC used a secret website to share information that included campaign strategy documents, polling data, opposition research, draft text for TV campaign ads, and advice on how to get an endorsement from former President Donald Trump.
"This abuse is perhaps one of the clearest and most flagrant examples of a candidate and a super PAC skirting campaign finance laws," Tiffany Muller, president of End Citizens United, said in a statement. "Protect Ohio Values PAC and JD Vance's campaign completely disregarded the law as the super PAC essentially served as an all-inclusive and paid-for arm of the campaign."
Politico first reported on the website in May, saying it was a public Medium page but that the Vance campaign was the only intended audience. The outlet reported that the purpose of the site was to avoid violating federal laws that prohibit super PACs and campaigns from working together.
While such websites have been created by figures from both political parties, the extent of the information included on the site was unique, according to Politico.
"When candidates and campaigns flout federal campaign finance laws, they are fostering a system that elevates the voices of the rich and drowns out the voices of everyday Americans – increasing the risk of corruption," Saurav Ghosh, director of federal reform at Campaign Legal Center, said in a statement provided to Insider. "The FEC, which is responsible for enforcing campaign finance laws, should protect American voters against inequity and corruption in our elections."
It's unlikely the FEC will make any ruling on the complaint prior to November's elections. It's not uncommon for two, three, or even four years to pass before the bipartisan agency's six commissioners take a final vote. Even then, high-profile cases routinely end in 3-3 deadlocks along ideological lines.
Vance was trailing in Ohio's GOP primary for US Senate before receiving the coveted endorsement from Trump in April. He won the primary weeks later and is set to face Democrat Tim Ryan in the high profile race this fall.
Vance and the Protect Ohio Values super PAC did not immediately respond to Insider's requests for comment.
Insider's Dave Levinthal contributed reporting.
More: JD Vance Peter Thiel Ohio Senate | 2022-06-10T00:24:13Z | www.businessinsider.com | JD Vance, Peter Thiel Accused of Illegally Coordinating on Election | https://www.businessinsider.com/jd-vance-peter-thiel-accused-of-illegally-coordinating-on-election-2022-6 | https://www.businessinsider.com/jd-vance-peter-thiel-accused-of-illegally-coordinating-on-election-2022-6 |
The House select committee on January 6 showed a recording of Ivanka Trump's testimony.
She was asked how former Attorney General Bill Barr's statement that her father's election claims were wrong affected her perspective.
"I accepted what he was saying," she said.
Ivanka Trump told House select committee investigators that she "accepted" former Attorney General Bill Barr's perspective that her father's claims about election fraud were wrong.
The daughter of former President Donald Trump in April voluntarily testified for eight hours before the committee, which is holding its first of several public hearings on its investigation into the January 6 attack on the US Capitol by Trump supporters.
She was asked how Barr's statement that her father's election claims were wrong affected her perspective.
"It affected my perspective," Ivanka Trump told the committee in recorded testimony, aired for the first time on Thursday. "I respect Attorney General Barr. So I accepted what he was saying."
The committee also played recordings of testimony by Barr, who said he told Donald Trump that he didn't find evidence of fraud that could overturn the election.
He also told Trump that he saw "zero basis" for his allegations about conspiracy theories about voting machines being compromised.
More: Ivanka Trump Capitol Siege January 6 committee | 2022-06-10T01:57:00Z | www.businessinsider.com | Ivanka Trump 'Accepted' William Barr Found No Fraud to Overturn Election | https://www.businessinsider.com/ivanka-trump-accepted-doj-found-no-fraud-to-overturn-election-2022-6 | https://www.businessinsider.com/ivanka-trump-accepted-doj-found-no-fraud-to-overturn-election-2022-6 |
House Jan. 6 panel played footage of former AG William Barr calling Trump's election claims 'bullshit'
Former Attorney General William Barr told Trump that his claims of widespread election fraud were "bullshit."
The Jan. 6 hearing played a video of Barr saying he told Trump he did "not agree" the 2020 was stolen.
The clip of Barr was the first piece of footage played by the House January 6 committee from the more than 1,000 interviews it's conducted.
In the waning weeks of 2020, then-Attorney General William Barr told Donald Trump that his claims of widespread election fraud were "bullshit" and entirely unsupported by evidence.
Barr recounted his remarks to Trump in a closed-door interview with the House committee investigating the January 6, 2021 attack on the Capitol. As the panel kicked off the first of six hearings planned for this month, it played footage of Barr's interview in which the former attorney general recalled making clear to Trump that he did "not agree with the idea of saying the election was stolen" and saw no evidence of fraud that would have affected the election outcome.
"Frankly a year and a half later I've seen nothing to change my mind on that," Barr said.
Barr told the House committee that he spoke with Trump on at least three occasions between November and December 2020.
Recalling those conversations, Barr said he described Trump's claims of election malfeasance as "crazy stuff" and said the falsehoods were influencing the public, doing a "great, great disservice to the country." Barr credited the timing of his December 2020 resignation, in part, to Trump's baseless election claims.
"You can't live in a world where the incumbent administration stays in power based on its view, unsupported by specific evidence, that the election that there was fraud in the election," Barr said.
The clip of Barr was the first piece of footage played by the House January 6 committee from the more than 1,000 interviews it has conducted in its months-long investigation. Rep. Liz Cheney, the panel's Republican vice chair, said forthcoming footage would display other members of Trump's cabinet.
Before playing the footage of Barr — who was nicknamed the "buffalo" at the Justice Department for his hard-charging style — Thompson warned viewers that the video included strong language. | 2022-06-10T01:57:06Z | www.businessinsider.com | Jan. 6 Hearing Plays Video of Barr Calling Trump's Election Claims 'Bullshit' | https://www.businessinsider.com/jan-6-hearing-video-barr-calling-trumps-election-claims-bullshit-2022-6 | https://www.businessinsider.com/jan-6-hearing-video-barr-calling-trumps-election-claims-bullshit-2022-6 |
Creator economy startup Jellysmack has laid off 8% of its staff amid concerns of an ad downturn. Here's the email the cofounders sent to employees.
Jellysmack cofounders Swann Maizil, Robin Sabban, and Michael Philippe.
Jellysmack.
Creator economy startup Jellysmack laid off 8% of its employees on Thursday as part of a larger restructuring.
Jellysmack's leadership also told employees it planned to cease some international operations.
Here's the email Jellysmack leadership team sent to employees on Thursday.
Jellysmack laid off 8% of its employees on Thursday as part of a larger restructuring that affected several departments across the startup.
The creator economy startup has raised over $991 million, according to Pitchbook, from backers including SoftBank, Unilever Ventures, and Highland Europe. The company, which identifies creator content that can be recut and distributed on platforms like Facebook and Snapchat to make ad revenue, had most recently set aside $500 million to buy the licensing rights to influencers' back catalogs in January, and doubled down on food creators, signing 23 of them in 2022 alone.
"In light of the current macroeconomic volatility , Jellysmack – like many other technology companies – anticipates a short-term decline in ad spending," a Jellysmack spokesperson told Insider in a statement. "We have made the difficult decision to reduce the size of the Jellysmack team by 8% to focus on areas of growth that bring the most added value for our creator partners."
A company-wide email sent on Thursday signaled Jellysmack's plans, which include shutting down commercial operations in Italy, Germany, and the Netherlands and curbing its investment in marketing.
"We will be reducing our investment in areas of the company that are not driving sustainable growth for us and for our creator partners," the cofounders wrote in the email.
Impacted employees were then notified through a meeting with a senior leader or HR staffer.
The company continues to employ over 1,000 employees post-layoffs.
"It came as quite a shock as there was no indication prior to today," said a person close to the company, who asked to not be identified to protect career prospects. Their identity is known to Insider. "I'm very disappointed. I quite enjoyed my time at the company and was excited to be a part of a fast-growing organization in a very fluid field."
Jellysmack's layoffs come as the tech sector braces for an economic downturn. Roughly 16,000 tech workers lost their jobs or saw job offers revoked in May alone at companies such as Carbon Health, Loom, Coinbase, and IRL. Tesla CEO Elon Musk also told company executives in early June to "pause all hiring worldwide" and reduce employee headcount by 10%.
Here's the email Jellysmack's leadership team sent all employees:
From: Michael Philippe
Subject: Message from the founders
Dear team,
As you probably already know, we are seeing signs of an economic slowdown that is impacting technology companies globally. As a result, our platform partners anticipate decreases in ad spending.
This will have implications for the entire Creator Economy, and Jellysmack is no exception.
To ensure the mid and long-term success of the company and position ourselves for growth, it is essential we take action now.
Unfortunately, we have come to the very hard decision to reduce the size of the Jellysmack team by 8%. This is a difficult and sad choice that no founder wants to make, but we know it's above all, difficult for the team members leaving Jellysmack.
Focusing our business strategy
Our long-term mission remains the same: to help creators Go Bigger. We will continue to pursue this ambition by focusing our efforts where we are seeing the most success and bringing the most value to creators.
Therefore, we will be reducing our investment in areas of the company that are not driving sustainable growth for us and for our creator partners.
Narrowing our footprint in regions where we are seeing little traction
We are shutting down our commercial operations in Italy, Germany, and the Netherlands. Some countries will be asked to narrow their focus to a more limited number of services such as India, South Korea, and Japan.
Sunsetting parts of the business that don't bring the most immediate value to our creator partners
We will be closing JellyX and reducing our Marketing investment globally.
Increasing our focus on areas of the business that help us deliver on our mission
We will be right-sizing teams across the organization to support this more focused business strategy.
What's next for impacted employees
We are committed to supporting team members through this transition in a thoughtful and respectful way. All departing employees will be offered a severance package and provided job search assistance from our People team, should they wish to use it.
For U.S. team members, we can provide immediate clarity. Within the next few hours, those leaving Jellysmack will receive a calendar invite for a meeting with a manager and an HR business partner. The details of individual severance packages will be outlined at this time and today will be the final working day for impacted employees.
For team members outside of the U.S., this announcement and its implications will be conducted in accordance with local laws. Within the next few hours, impacted employees will receive a calendar invite for a meeting with a manager and an HR business partner. During this meeting, managers and HRBPs will be sharing the next steps.
For those continuing on the Jellysmack journey
Jellysmack's mission remains intact, and our strategy and ambition remain the same. We know we can rely on our strong foundations: our culture, our values, our DNA. These will guide us through our journey, so we can keep building the future of the Creator Economy.
Over the next few days and weeks, we will share more details about supporting organizational changes that will help streamline our operations and make us a more focused and efficient company.
In addition, a global all-hands meeting will be held at the end of the month to share more about our vision for the future, and to answer questions you may have about the actions we've taken to ensure Jellysmack's lasting success.
To those leaving Jellysmack
We want to thank you for all your hard work and your commitment to helping our company grow. Whatever your role, you made Jellysmack, Jellysmack and we're extremely grateful for that. Know you will always be a part of the fabric of this company and we wish you the best for your future.
Michael, Robin, and Swann
More: Tech layoffs Influencer Influencers | 2022-06-10T01:57:18Z | www.businessinsider.com | Creator Startup Jellysmack Laid Off 8% of Its Employees: Staff Memo | https://www.businessinsider.com/jellysmack-laid-off-employees-economic-slowdown-email-ceo-to-employees-2022-6 | https://www.businessinsider.com/jellysmack-laid-off-employees-economic-slowdown-email-ceo-to-employees-2022-6 |
Taiyler Simone Mitchell and Charles R. Davis
Ex-President Trump said Vice President Pence may 'deserve' to be hanged, Rep. Liz Cheney said.
Her remarks came during the first public January 6 House Committee Hearing.
Five more public hearings highlighting the insurrection are set for the month of June.
As a riot unfolded at the US Capitol, former President Donald Trump told aides that his own vice president might deserve to be hung, Rep. Liz Cheney said at the first public hearing held by the January 6 Committee.
Cheney, a Wyoming Republican who co-chairs the House panel investigating the January 6 insurrection, made the claim in her opening remarks Thursday.
"Aware of the rioters' chants to 'hang Mike Pence,' the president responded with this sentiment: 'Maybe our supporters have the right idea.' Mike Pence 'deserves it,'" Cheney said.
The GOP congresswoman's comments confirmed a story published last month in The New York Times. In that report, two former White House staffers testified before the January 6 committee that the president's chief of staff at the time, Mark Meadows, told them that he heard Trump make the comment about hanging his vice president.
Cheney added that Trump declined to listen to Capitol Hill leaders urging him to put an end to the attack. It took the former president 187 minutes to release a video telling the mob to stop the attack. He would refer to them in the video as "very special people."
Five more public hearings detailing new knowledge from the insurrection are set for the month of June and can be viewed online or on major television networks. The next hearing is scheduled for Monday, June 13 at 10 a.m. ET.
"Over multiple months, Donald Trump oversaw and coordinated a sophisticated seven-part plan to overturn the presidential election and prevent the transfer of presidential power," Cheney argued. "In our hearings, you will see evidence of each element of this plan."
More than 860 people have been charged in the riot. Only 306 individuals pleaded guilty.
More: january 6 Jan 6 Jan 6 committee House | 2022-06-10T01:57:36Z | www.businessinsider.com | 'Mike Pence Deserves It,' Trump Said of Mob's Hang VP Chant | https://www.businessinsider.com/trump-hang-vp-pence-deserves-it-house-january-6-hearing-2022-6 | https://www.businessinsider.com/trump-hang-vp-pence-deserves-it-house-january-6-hearing-2022-6 |
U.S. Rep. Bennie Thompson, Chairman of the Select Committee to Investigate the January 6th Attack on the U.S. Capitol, Vice Chairwoman Rep. Liz Cheney, and Rep. Adam Kinzinger take part in a hearing on the January 6th investigation on June 09, 2022 on Capitol Hill in Washington, DC.
The first hearing from the House select committee investigating the January 6 attacks was held on Thursday.
Chairman Bennie Thompson and Vice Chair Liz Cheney spoke for the bulk of the time, placing then-President Donald Trump at the center of the riots.
The hearing presented testimony from the president's daughter, the former attorney general, a Capitol police officer, Proud Boys, and Capitol rioters.
The House select committee investigating the January 6 attack on the US Capitol held its first hearing on Thursday night after hearing countless interviews, sifting through thousands of documents, and dozens of subpoenas.
The committee offered an overview of its findings that then-President Donald Trump was at the heart of a multi-stage attempted coup to retain power, and showcased bits of testimony from former Attorney General Bill Barr, Capitol rioters, a Capitol police officer, a documentary filmmaker, Proud Boys, and even the president's daughter, Ivanka Trump.
At the hearing itself, committee chairman Bennie Thompson and Vice Chair Liz Cheney presented the committee's case to show that the former president attempted to subvert the 2020 presidential election and bring to light his allies who assisted him along the way.
Here are the main takeaways from the two-hour hearing:
Hearings will show Trump and his allies staged 'an attempted coup'
Chairman Thompson didn't mince his words in his introductory speech on Thursday evening, as Insider's Jake Lahut reported.
"Donald Trump was at the center of this conspiracy, and ultimately, Donald Trump, the President of the United States, spurred a mob of domestic enemies of the Constitution to march down the Capitol and subvert American democracy," Rep. Bennie Thompson said.
—Pod Save America (@PodSaveAmerica) June 10, 2022
Cheney said Trump led a misinformation campaign that provoked the Jan. 6 violence
In a statement, Rep. Liz Cheney said Trump invested millions in campaign funds to purposely spread "false information, running ads he knew were false and convincing millions of Americans that the election was corrupt and he was the true president."
"As you will see," Cheney added, "this misinformation campaign provoked the violence on January 6."
Cheney, a Republican who has been outspokenly critical of Trump after Jan. 6's attack, also alleged that Trump or his allies were carrying out a multi-step plan to block Joe Biden's taking office after winning the electoral college vote.
"Over multiple months, Donald Trump oversaw and coordinated a sophisticated seven-part plan to overturn the presidential election and prevent the transfer of presidential power," Cheney said. "In our hearings, you will see evidence of each element of this plan."
Ivanka Trump says she 'accepted' the AG's opinion that there was no election fraud
The committee showed a short clip of a video testimony from the president's daughter, part of the eight hours she spent before the committee. Ivanka Trump was asked about Barr's assertion that there was no fraud to be found to overturn the presidential election.
"It affected my perspective," Ivanka Trump said. "I respect Attorney General Barr. So I accepted what he was saying."
—BBC News (World) (@BBCWorld) June 10, 2022
Several members of Congress asked for pardons
Cheney said that Rep. Scott Perry, who refused to testify to the committee, directly asked for a pardon from Trump for working to install Jeff Clark as attorney general to further investigate the results of the election in a possible attempt to undermine confidence in a vote the Homeland Security Department had already called "the most secure in American history." She also said that several other Republican members of Congress asked for pardons from the president as well.
Trump's presidential debate comments 'tripled' Proud Boys membership
At the first presidential debate in September 2020, Trump told the Proud Boys in a statement to "stand back and stand by." A member of the Proud Boys testified to the House committee that the president's comment effectively "tripled" the membership of the militia. Its former leader, Enrique Tarrio, also said he wishes he made t-shirts of the moment.
Members of the Proud Boys stormed the Capitol on January 6, 2021, and in a coordinated attempt, prevented Capitol Police from sealing off the tunnels of the building.
More: INSIDER Data Capitol Siege January 6 committee | 2022-06-10T03:28:09Z | www.businessinsider.com | Biggest Takeaways From 1st January 6 Committee Hearing | https://www.businessinsider.com/biggest-takeaways-from-1st-january-6-committee-hearing-2022-6 | https://www.businessinsider.com/biggest-takeaways-from-1st-january-6-committee-hearing-2022-6 |
Supporters of Donald Trump broke past Capitol Police into Capitol on January 6, 2021, in an attempt to stop the electoral vote certification.
Proud Boy Jeremy Bertino said Donald Trump's comment made the group's numbers triple.
Bertino said membership grew "exponentially" after Trump's call to "stand back and stand by."
Bertino added that there was likely "potential for a lot more" members after those comments.
A high-ranking member of the Proud Boys told the January 6 panel that membership in the organization "tripled" after former President Donald Trump told them to "stand back and stand by."
Trump made the comments during a debate in September 2020. The former president was asked to disavow white supremacist groups and urge them to "stand down." But instead of doing so, Trump said: "Proud Boys, stand back and stand by."
A clip of an interview with Proud Boys member Jeremy Bertino aired during the televised January 6 hearings on Thursday night. He said Trump's comments were a watershed moment for the group.
Bertino was asked if the number of Proud Boys members increased specifically after Trump's comments.
"Exponentially," Bertino said. "I'd say, tripled, probably. With the potential for a lot more eventually."
Bertino was a high-profile member of the Proud Boys, based out of North Carolina. He was the subject of an FBI search of his home in March this year but has not been arrested.
The televised hearing also featured a clip of former Proud Boys chair Enrique Tarrio, who said he saw the speech as a galvanizing moment for their movement and admitted he regretted not selling shirts of the "stand back and stand by" phrase.
Several Proud Boys have been charged in connection with the violence that unfolded at the Capitol on January 6, 2021.
On Monday, the Justice Department charged Tarrio and four other Proud Boys with seditious conspiracy in connection with the Capitol attack, adding to preexisting criminal accusations from January 6.
The DOJ is working to prosecute the more than 860 people arrested in connection with the attack. The DOJ said the January 6 committee also plans to publicly release the transcripts of more than 1,000 interviews with witnesses in September.
More: january 6 January 6 committee capitol riot capitol riot investigation | 2022-06-10T06:27:37Z | www.businessinsider.com | Proud Boy Says Membership 'Tripled' After Trump Told Them to 'Stand Back and Stand by' | https://www.businessinsider.com/proud-boy-membership-tripled-trump-stand-back-and-stand-by-2022-6 | https://www.businessinsider.com/proud-boy-membership-tripled-trump-stand-back-and-stand-by-2022-6 |
Quant Insight just struck a deal to supply Goldman Sachs' clients with data. Its head of analytics told us how the firm makes its market calls, and why investors should consider buying Chinese biotech stocks now.
Huw Roberts, head of analytics for Quant Insight.
Quant Insight
UK firm Quant Insight tracks macro investing risks, and it just struck a deal with Goldman Sachs.
Head of Analytics Huw Roberts told Insider how the firm boils major risks down to single numbers.
He also said investors who are bullish on China should look at a leading biotech index there.
Research firm Quant Insight aims to give investors the clearest possible picture of what's going on in the stock market, helping them uncover hidden risks in their portfolios and make adjustments based on issues like changes in macroeconomic conditions.
This week, the eight-year-old UK firm announced that its macro risk data will be embedded into Goldman Sachs' Marquee platform so that institutional investors can use it to inform their trades and strategies.
Huw Roberts, the firm's head of analytics, told Insider in an exclusive interview that the firm has developed an algorithm that distills a series of macroeconomic factors to determine the fair value of any asset based on prevailing conditions. He said there are three major groups of inputs.
"Between economic fundamentals, measures of financial conditions, and risk appetites — risk on, risk off — we have an algorithm that then spits out fair value for any asset for prevailing macro conditions," he said.
To evaluate economic fundamentals like overall growth and whether inflation is rising or falling, he says the firm uses "Nowcasting," a real-time tracker that's similar to the Atlanta Fed's GDP Now tool.
"They don't look at the individual data releases in that much detail, apart from payrolls. They'll want to know what does this actually mean for growth," he said. "Does that beat in industrial or that miss in retail sales, does that mean that trend tracking GDP is getting stronger or weaker? That's what I care about."
In measuring financial conditions, he says QI looks at real yields, currency strength, the steepness or flatness of the yield curve, and whether central banks are raising or cutting rates and expanding or shrinking their balance sheets.
Lastly, QI evaluates whether investors in the market are in a risk-on or risk-off mode based on the traditional gold-to-silver ratio and the CBOE's volatility indexes in the US, Europe, and emerging markets.
"Those four measures between them are our way to capture whether markets are in a risk-on or risk-off frame of mind," he said. When they are combined, Roberts says, the product is more systematic than the views of an individual analyst.
Asked about some of the market's biggest names, he says that Apple is the only " FAANG " stock that's trading on micro factors like company performance rather than what the overall macroeconomic picture would suggest. That is to say, there aren't any bargains to be found there.
"Microsoft, Facebook, Meta, Google, Amazon, are all in strong macro regimes," he said. "In valuation terms, they're all very close to home. They're doing exactly what they should be doing given the prevailing macro conditions."
Meanwhile Chinese stocks are already pricing in good news, like an end to the government's tech crackdown, as well as looser COVID rules. Roberts says the Chinext, China's answer to the Nasdaq, and MSCI's China information technology ETF are both trading above fair value.
What's lagging by comparison is a leading Chinese biotech ETF. He says that could play catch-up if investors remain optimistic about China.
"If you are really looking to say, 'well, I believe that the China story has turned and I'm looking for some upside plays, I'm looking for laggards,' the one that jumps out to us is CHB," he said. "That is just about getting close to macro regime and that is bang on model value."
More: Investing Quant trading investing strategies
quantitative investing
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Macro Investor | 2022-06-10T09:34:14Z | www.businessinsider.com | Macro Investing Insights & Stock Market Views: Quant Insight | https://www.businessinsider.com/investing-insights-china-biotech-macro-stock-market-views-goldman-sachs-2022-6 | https://www.businessinsider.com/investing-insights-china-biotech-macro-stock-market-views-goldman-sachs-2022-6 |
On Thursday, The National Highway Traffic Safety Administration said that it was widening and upgrading its probe into Tesla's Autopilot function. Here, Tesla CEO Elon Musk steps out of a Tesla Model X during an event in 2015.
NHTSA is reviewing additional crash data to determine how safe Tesla's Autopilot function is.
The agency has also upgraded the probe, which is necessary before any possible recall.
NHTSA has said that there is no vehicle currently that is fully automated or "self-driving."
A federal agency has escalated its probe into whether Tesla's Autopilot function is potentially defective.
The National Highway Traffic Safety Administration (NHTSA) first launched its investigation into 765,000 Tesla cars ten months ago, after identifying 11 cases of Tesla cars crashing into first-responder vehicles.
On Thursday, NHTSA said in a release that it was widening the probe into the effectiveness of Tesla's driver assistance system. NHTSA will now review data from 830,000 Tesla cars and almost 200 new cases of collisions that involved Tesla cars with the Autopilot function operating.
The agency also said it was now treating the investigation as an "Engineering Analysis," which is a necessary step before a possible recall of the cars that come with the Autopilot function.
NHTSA's expanded probe will "explore the degree to which Autopilot and associated Tesla systems may exacerbate human factors or behavioral safety risks by undermining the effectiveness of the driver's supervision," per the release.
Since launching the probe ten months ago, NHTSA has added six more crashes involving first-responder vehicles to its analysis, according to the release.
The agency said it found that Tesla's warning system activated most of the time just before impact. It also said the "Automatic Emergency Braking" system kicked in for about half of the crashes. "On average in these crashes, Autopilot aborted vehicle control less than one second prior to the first impact," per the release.
NHTSA also studied 191 crashes that did not involve ambulances, fire trucks, or police cars. It said it dropped 85 because they were determined to have been caused by other factors or it was difficult to determine the cause. In about 50 of the remaining cases, the agency said drivers were not responsive enough when driving. In about 25 other crashes, the agency said the drivers were using Autopilot in situations where Tesla has said could limit the system's effectiveness, such as in bad weather.
Tesla markets Autopilot as a feature that allows cars to automatically brake and steer within their lanes. It also labels some assistance features as "Full Self-Driving." The NHTSA's website states, "There is no vehicle currently available for sale that is fully automated or 'self-driving.'"
In its Thursday release, NHTSA said that misuse of the Autopilot function did not mean that the system was not defective. "This is particularly the case if the driver behavior in question is foreseeable in light of the system's design or operation," it said.
Democratic Senator Edward Markey of Massachusetts welcomed NHTSA's escalation of the probe. "Every day that Tesla disregards safety rules and misleads the public about its 'Autopilot' system, our roads become more dangerous," he tweeted on Thursday.
In a separate investigation, the NHTSA is investigating 758 cases of "phantom braking" where drivers complained that their Tesla cars braked suddenly while traveling at high speeds. It has given Tesla a long list of questions to answer by June 20.
More: Tesla Autopilot Elon Musk National Highway Traffic Safety Administration | 2022-06-10T09:34:32Z | www.businessinsider.com | US Agency Escalates Tesla Autopilot Probe That Could Lead to Recall | https://www.businessinsider.com/us-agency-escalates-tesla-autopilot-probe-could-result-in-recall-2022-6 | https://www.businessinsider.com/us-agency-escalates-tesla-autopilot-probe-could-result-in-recall-2022-6 |
It's Friday. Well done Wall Streeters, you made it to the end of the… day before you open your laptops to work on Saturday.
I'm your host, Aaron Weinman. To lighten things up, I'm rolling out Insider's first "Banker of the Week" segment. The BoW highlights rainmakers, significant new hires, or someone taking on meaningful initiatives at their firms.
Got an idea on who should be next week's banker? You can email me at aweinman@insider.com or tweet me @aaronw11.
By the way, get your earbuds ready: I'm on this morning's The Refresh from Insider talking SPACs – listen to my segment here and check out the full episode here.
Now, let's get to it.
Harold Butler, Citi's head of diversified financial institutions group
1. Our inaugural BoW: Harold Butler, who leads Citi's diverse financial institutions group. After 17 years at Citi, he's known for his links to the US Treasury and the Federal Reserve .
Butler — a huge advocate for greater equity on Wall Street — was tasked with leading Citi's newly-formed diverse financial institutions group in February. The team aims to expand Citi's capital-markets activity with minority-owned broker dealers and asset managers, and it oversees the bank's investments in minority-owned depository institutions (MDIs).
A couple of years before being asked to lead this team, however, Butler sowed the seeds for a rotational program designed to cultivate links between Citi and more MDIs. In the summer of 2020, while having dinner with Kase Lawal, chairman at Unity Bank in Texas, the Lone Star state's sole Black-owned bank, Butler was asked whether Citi would consider a grant to help Unity get a new markets tax-credit business.
Butler thought on it and realized a rotational program not only strengthened relationships with MDIs, but provided minority-owned financial institutions with access to Wall Street talent, services, and technology.
The rotational initiative, like a secondment, embeds Citi bankers with MDIs for a short term.
Thanks in part to Butler, Citi started the rotational program last year. Its initial secondee was Gina Nisbeth, a director in Citi's trading division, who spent last year working with Unity National Bank of Houston.
And last month, Citi named three secondees for the second installment of rotations:
Sandy Furlow is doing a year-long assignment with African-American-owned Industrial Bank.
Abhijit Bhattacharya is providing advisory services to Optus Bank.
Valerie Scruggs joined M&F Bank, where she will work in advisory services.
Meet seven other Wall Street bankers plying their trade at minority-owned institutions.
Kenneth C. Griffin, Citadel Founder and Chief Executive Officer, at the CNBC Institutional Investor Delivering Alpha conference July 18th in NYC
Heidi Gutman/CNBC/NBCU Photo Bank via Getty Images
2. Citadel Securities is hiring 25% more interns than the last two years. The fund/market maker's class of minions feature some sharp individuals, including students who've won the Putnam math competition, NASA researchers, and special-ops soldiers.
3. Despite Citadel's hiring chops, not all of it seems squeaky clean. A former analyst at the firm was sentenced to prison time for scamming millions of dollars in Covid relief loans, according to Bloomberg.
4. Sotheby's is going head-to-head with private banks on lending. Here's how the auction house is providing loans against luxury purchases like Patek Philippe watches.
5. Federal Prosecutors opened a criminal inquiry into Wells Fargo's hiring practices, according to the New York Times. The inquiry comes after Wells paused a policy that an ex-staffer said led to "fake" job interviews.
6. Franchise Group is eyeing more than $2 billion to support its $8 billion deal for retailer Kohl's. The store operator is turning to Apollo Global Management for the money, people told the New York Post.
7. Staying on Apollo, the investing giant is teaming up with Indian conglomerate Reliance. The pair have made a binding offer for UK-based drug store Walgreens Boots, Bloomberg reported on Thursday.
8. Apple will not use Goldman Sachs' balance sheet to issue loans for its new Apple Pay Later service. The tech giant will instead make the short-term loans through a wholly-owned subsidiary called Apple Financing LLC.
9. Blockchain.com's CEO said an embattled crypto market feels like "normal." Here's the latest from Money20/20 Europe.
10. A former Capital One exec landed $60 million for this fintech. Here's 23 slides on how Tandym, a startup that's reinventing store credit cards, nabbed funding from investors like Gradient Ventures.
CIFC Asset Management, an alt-credit specialist with about $4o billion in AUM, has hired Conor Daly as its head of European credit. He previously ran European credit for fellow structured-finance shop Onex Credit.
General Atlantic led a $90 million funding round in Klar, a fintech platform in Mexico.
Event invite: The fourth installment in Insider's "Financing a Sustainable Future" series is next Tuesday, June 14 at noon Eastern. This event, in partnership with Bank of America, focuses on corporate governance, perhaps the most difficult measure of ESG reporting. Check out the previous three events and register for next week here. | 2022-06-10T11:05:17Z | www.businessinsider.com | Wall Street: Meet the 'Banker of the Week' | https://www.businessinsider.com/10-things-wall-street-citi-investment-banking-citadel-2022-6 | https://www.businessinsider.com/10-things-wall-street-citi-investment-banking-citadel-2022-6 |
There's 'no question' that the economy has peaked, says a research-firm head who used to be Morgan Stanley's equity strategy chief — but investors should buy stocks in these 4 economically sensitive industries
The economy may be losing momentum, but that doesn't mean that cyclical stocks should be sold.
Trivariate Research founder, Adam Parker, said there's "no question" that the economy has peaked.
But slowing GDP growth may not necessarily lead to an earnings recession.
Here are four stock-market sectors and industries that investors should target.
The best days of this economic cycle are in the rearview mirror, according to Adam Parker, the founder and CEO of Trivariate Research.
"Most investors that I talk to are pretty convinced that we're going to have some earnings decline," Parker told Insider in a recent interview. "We're starting to see firings. You're starting to see inventory building. So there's no question the economy has peaked and is slowing."
Parker, who was formerly Morgan Stanley's chief US equity strategist before becoming Eminence Capital's director of quantitative strategy, said he doesn't believe that the recent wave of hiring freezes and layoffs are confined to the tanking technology sector . He also believes that high inflation and falling consumer-confidence levels are signs that the economy has topped out.
Adam Parker founded Trivariate Research last spring.
Adam Parker, Trivariate Research
But surprisingly, the research-firm head said he isn't banking on an earnings recession in the US — even if economic growth, as measured by GDP, declines for a second straight quarter.
"I think the S&P 500 can be totally different from the economy," Parker said. "Meaning, I could have two quarters of negative GDP — if that's the official recession definition — and while that's happening, I think you'll have earnings grow."
Corporate earnings will still rise 5% in 2022 despite all the headwinds the economy faces, Parker predicted, though he believes that Wall Street's forecast for 10% year-over-year is too lofty.
"Expectations for earnings should be slightly lower than they were," Parker said. "Because commodities are off, the dollar's stronger, and inflation in a lot of areas has peaked and the economy's softer. So I think it's probably hard to think earnings are better now than they were, let's say, two months ago."
A new type of inventory issue
Much has changed in markets since Parker last spoke with Insider in early April. Talk of an economic downturn was more a nervous murmur than a mainstream view, and US stocks were in their first week of a seven-week slide.
Then, the Trivariate Research founder listed three warning signs to watch for in the economy: overinvestments by companies in products, production capacity, and people. Those indicators currently appear to be flashing what's more of a yellow light than a red alert.
"In aggregate, I don't think that there's a ton of excess hiring, excess inventory, and excess capital spending," Parker said. "But clearly, the trends have deteriorated over the last couple months on all three."
While investors don't yet need to worry about widespread corporate hubris, Parker said there is a concerning development to keep an eye on: massive product backlogs.
Early in the pandemic, consumers stuck at homes shopped online in droves for goods like furniture and electronics. That led to widespread shortages and order backlogs, causing companies to scramble to get more product in stock. Fast-forward two years, and consumer spending has largely shifted to services instead of goods — meaning that there are beginning to be massive surpluses for goods that are no longer in demand, Parker said.
Though Parker doesn't expect this issue to tip the US into an earnings recession in the back half of the year, he acknowledged that it's "not impossible" that corporate earnings completely fall flat in what appears to be an increasingly challenging macroeconomic environment. And even if corporate earnings grow this year, that wouldn't mean that a downturn couldn't still come.
"In 2023, I think that's probably more where the risk would start," Parker said. "Comparing 2023 versus 2022 — that's definitely more possible."
4 ways to invest now
Parker is no longer charged with predicting every twist and turn for stocks like he was as Morgan Stanley's chief US equity strategist, but he still has plenty of ideas about which parts of the market will fare best.
Trivariate Research has recently done deep dives into the "relative estimate achievability" — or how easily firms can hit earnings estimates compared to peers — of both economically sensitive cyclical stocks and their growth counterparts, which are less dependent on the economy.
Growth names have outperformed their value-oriented peers for years but have recently suffered from what Parker called a "humongous" reset of their valuations as interest rates rise. Investors have gotten burned by big multiple contractions but are still focused on growth, Parker said.
The other part of the market that investors, including Parker, have their eye on are cyclicals. There's a dilemma here: Stocks in this category tend to have less expensive valuations but would likely suffer disproportionately if the economy ends up falling into a recession.
Parker said that in addition to the defensive healthcare sector, four of his favorite sectors and industries to invest in are economically sensitive: energy, materials, metals and mining, and home building. The first three sectors mentioned were also Parker's picks back in April.
It may at first seem contradictory that Parker is recommending cyclicals while saying that there's "no question the economy has peaked and is slowing." But those two beliefs can coexist if, as the research-firm head said, there's "sufficient negativity embedded" into those stocks already.
Energy is a group that Parker continues to make the case for after recommending on January 4 that clients "remain max bullish" on the sector. A mind-bending rally of 65% this year has ensued, and Parker thinks that the party can continue as long as oil prices continue to rise.
"We don't have enough oil to meet demand," Parker said. "People can say whatever they want about ESG, but peak oil demand will be 15 years from now. It won't be this week."
Parker's preference for materials over industrials hasn't wavered in the past five months or so, as what he wrote in an early January note still holds true today, in his view: "The relative estimate achievability and valuation are far more compelling for materials, and in many cases these materials are input costs that impact gross margins of the industrials."
Companies in the metals and mining and home-building industries are attractive for the same reason: valuation. Stocks in the former are near 20-year lows on a price-to-earnings (P/E) basis and are trading at low-single-digit multiples in some cases, like steel-producing giant Nucor (NUE). The same is true of home builders like Lennar (LEN) and DR Horton (DHI).
"People think there's a big collapse coming and they're embedding that in the price, but current conditions are still reasonably strong," Parker said of Lennar in particular.
Investors can consider adding exposure to the following exchange-traded funds that Insider compiled based on Parker's ideas: the SPDR S&P Oil & Gas Exploration & Production ETF (XOP), the Materials Select Sector SPDR Fund (XLB), the SPDR S&P Metals and Mining ETF (XME), and the iShares U.S. Home Construction ETF (ITB).
economy outlook
earnings recession
Contrarian Investing
Trivariate Research
Trivariate Research adam parker
adam parker Trivariate Research
metals and mining sector
Homebuilder Stocks
home builders stocks | 2022-06-10T11:05:29Z | www.businessinsider.com | Contrarian Investing Strategy As Economy Slows: Adam Parker | https://www.businessinsider.com/investing-recession-risk-economy-stock-market-contrarian-strategy-adam-parker-2022-6 | https://www.businessinsider.com/investing-recession-risk-economy-stock-market-contrarian-strategy-adam-parker-2022-6 |
Coffee really does taste better on Fridays. But if you're in the housing market right now it's probably hard to swallow every day of the week. Mortgage applications have cratered, and business is cooling after a historic boom.
I'm Phil Rosen, and today we're breaking down the housing market.
Chris Hellier/Getty Images
1. Mortgage demand is at its lowest point in 22 years. Over the last week, mortgage applications fell 7%, and they're down 21% since last June.
A traditional 30-year fixed mortgage saw average interest rates rise to 5.4% last week, compared to rates in the low 3% range around this time last year.
The cost to buy a home has risen dramatically in 2022, which has resulted in a drop-off in demand.
Or, more simply: there's been "a meltdown."
Pantheon's chief economist Ian Shepherdson said the sharp drop in applications is likely to continue, given that interest rates are set to rise further. This could be a silver lining for buyers who've been locked out of the market by the dual headwinds of stubbornly high prices and higher mortgage rates.
"The chance of a short period of clear declines in prices is increasing, primarily because new home inventory has shot higher," Shepherdson said.
And weakness in housing begets weakness in lumber. Prices for the key building commodity dropped another 4% Wednesday to hit their lowest level in nine months. Builders have pulled back on new housing starts as they see inventories across the country rising.
Prices have slipped in nine of the last 11 weeks, and the strength in mortgage rates has moved inversely with weakness in lumber.
Lumber prices are down 50% this year, and have plunged 67% from their record-high reached last May of around $1,700 per thousand board feet.
An employee holds a sample of crude oil at the Yarakta oilfield, owned by Irkutsk Oil Co, in the Irkutsk region, Russia on March 11, 2019.
2. US stock futures traded cautiously early Friday, as investors braced for US inflation data that could influence the Fed's tightening policy. Economists largely expect May's CPI reading to have flatlined at 8.3%. If the report is higher than expectations, that could spark volatility in stocks. Here are the latest market moves.
3. On deck today: North Bud Farms, YourWay Cannabis Brands, and Mimi's Rock Corp, all reporting. Plus, the latest consumer price index inflation print for May is due at 8.30 a.m. ET.
4. A UBS strategy head who warned about high inflation and slowing growth last June gave his top investing ideas. There's only a 12% chance of a recession , according to Keith Parker. But these four investments are strong bets right now.
5. Russian oil and gas exports helped the Kremlin add $9.5 billion to an emergency fund. According to a Reuters report, bailouts are piling up amid Western sanctions and Russia is looking to shore up its defenses. Here's what you want to know.
6. US stocks are primed for a dramatic move in either direction as investors look to the inflation report. "The S&P 500 remains wound up in a tight intraday trading range, which has the potential to be resolved in dramatic fashion," Fairlead's top analyst said. These are the key levels to monitor.
7. Elon Musk's Twitter deal is backed by a little-known Dubai-based investment firm. And its founder was once dubbed a "human supercomputer" by the venture capitalist behind Andreessen Horowitz. The secretive Vy Capital has committed $700 million to Musk's Twitter takeover.
8. Goldman Sachs' star economist laid out whether the US is heading for a recession. He also broke down what could possibly trigger a rebound in the floundering stock market after the crash. See what he said here.
9. Top money managers are looking to Jim Osman's buy list to find hidden gems. The expert stock picker is helping investors navigate the "everything is on sale" market. He shared his five "special situation" stocks that are loaded up for gains of up to 31%.
10. ExxonMobil stock has soared 157% since the Dow Jones Industrial Average kicked it out two years ago. And it replaced the oil giant with Salesforce — which has slumped 30% since then. | 2022-06-10T11:05:53Z | www.businessinsider.com | Opening Bell: Mortgage Mega-Slump | https://www.businessinsider.com/opening-bell-mortgage-mega-slump-2022-6 | https://www.businessinsider.com/opening-bell-mortgage-mega-slump-2022-6 |
Today's mortgage and refinance rates: June 10, 2022 | Average rates are up again
The average 30-year fixed mortgage rate inched back up this week and is now at 5.23%, according to Freddie Mac. Rates had been trending down for several weeks, but uncertainty in the market appears to be causing some volatility . Inflation is still an issue, though it has showed signs of easing. | 2022-06-10T11:05:59Z | www.businessinsider.com | Today's Mortgage, Refinance Rates: June 10, 2022 | Average Rates Are up Again | https://www.businessinsider.com/personal-finance/best-mortgage-refinance-rates-today-friday-june-10-2022-6 | https://www.businessinsider.com/personal-finance/best-mortgage-refinance-rates-today-friday-june-10-2022-6 |
Warmest regards, readers. Jordan Parker Erb here. Another Uber exec is leaving the company, and Apple has plans for a new laptop.
1. Another Uber executive is leaving the company. Dennis Cinelli, Uber's head of rides in the US and Canada, is the latest in a string of top-level executives that have left Uber in the past six months.
Cinelli, who's been with the company since 2016, has held key positions within Uber's finance division — and was projected by some to become the company's next CFO.
Cinelli will be joining machine-learning platform Scale AI as its next CFO.
Other senior Uber executives who have departed in recent months include its head of grocery and new verticals, as well as its head of corporate development.
Get the latest.
2. Meta abandoned its plans to release an Apple Watch rival. According to Bloomberg, Meta scrapped its two-year-long project to develop a smart watch, which was slated for a 2023 release at about $349. Meanwhile, the company also decided it would not be selling the first version of its augmented reality glasses — here's why.
3. New side hustle alert: A TikToker explains how much he makes as a "sleepfluencer." Jakey Boehm, a 28-year-old Australian TikToker, said he earns "life-changing money" by letting his audience of more than 400,000 followers pay to disturb his sleep. See how much he makes for sleeping.
4. Elon Musk is really worried about bots. We explain why. Musk has threatened to nix his Twitter deal over too many bots on the platform. And while they could have real implications for Twitter's ad revenue, they're tricky to measure — so we broke down everything you need to know about the Musk-bot debacle.
5. A former Bolt engineer borrowed nearly $100,000 to exercise his stock options. A few months later, he was laid off along with about one-third of the workforce — and now has just 90 days to pay back his vested shares to Bolt, worth about $40,000. Read his experience here.
6. Stitch Fix just laid off 15% of its salaried employees. A leaked memo viewed by CNBC shows the layoffs will mostly affect corporate roles and styling leadership positions. Get the full rundown.
7. Microsoft just halted TV advertising. Three sources familiar with the issue said it's not clear when TV ads would resume — the latest sign of trouble for tech, and an early indicator of the economic downturn's effect on the ad industry. What we know so far.
8. Apple is planning a new 15-inch MacBook Air. Bloomberg's Mark Gurman reported the new model could arrive by 2023, and would be the first of that size in the company's history. Everything you want to know.
9. Ebay just launched a temperature-controlled facility to store valuable trading cards. The 31,000 square-foot vault has 24/7 security — and expensive cards can be bought and sold in seconds without ever leaving the vault. Check it out here.
10. If you have an older Apple device, it may no longer get software updates. A surprising number of older iPhones, Macbooks, Apple Watches, and other devices won't be eligible for Apple's most recent software updates, announced this week. Here's how you can to stay up to date.
Disney fired Peter Rice, one of its top executives.
Meta's top engineer is the third senior exec to step down this month.
Benjamin Dunham has stepped down as WeWork's chief financial officer.
Zoom hired Greg Tomb as president and Matthew Saxon as chief people officer.
Dave Clarke, former top Amazon exec, was made CEO of a supply-chain startup.
The CEO of Yandex, Russia's Google equivalent, has resigned.
Peloton hired a former Amazon VP as its CFO, with a $1 million base salary. | 2022-06-10T11:06:11Z | www.businessinsider.com | Tech: Uber Exec Exodus | https://www.businessinsider.com/tech-uber-exec-exodus-2022-6 | https://www.businessinsider.com/tech-uber-exec-exodus-2022-6 |
Tesla has canceled recruiting events in China.
Tesla has canceled three hiring events in China planned for this month, Reuters reports.
Elon Musk previously told executives via email that the company needed to cut 10% of staff.
Musk said at the time that he had a "super bad feeling" about the economy and urged caution on hiring.
Tesla has canceled three hiring events in China amid Elon Musk's warnings of staff cuts at the company, according to Reuters.
Recruiting events for Tesla's research and development, sales, and supply chain departments were planned for June 16, 23, and 30, according to a company WeChat seen by the news agency.
The cancelations come just a day after Tesla added two dozen new job openings for managers and engineers in China. A hiring event for "smart manufacturing" roles had been planned for June 9 but it is unclear from the company WeChat if the event went ahead.
There are more than 1,000 Tesla job openings posted on the social-media platform that are still allowing applications, according to Reuters.
Musk announced last week that he wanted to cut 10% of Tesla's salaried headcount. He expressed concerns about the economy and said Tesla was "overstaffed in some areas" in an email to executives. The email's subject line was "pause all hiring worldwide."
Insider reported that Tesla employed almost 100,000 people at the end of 2021, cutting 10% of staff would mean axing thousands of jobs.
Musk told Tesla executives via email he had a "super bad feeling" about the economy.
The tech industry has experienced a wave of hiring pauses and layoffs in recent months. Big tech companies such as Meta and Uber have announced they are slowing hiring amid uncertain economic conditions.
NOW WATCH: Why China Loves Tesla
More: Elon Musk Tesla Hiring China | 2022-06-10T11:06:17Z | www.businessinsider.com | Tesla Cancels China Hiring Events Amid Musk's Warnings of Staff Cuts | https://www.businessinsider.com/tesla-elon-musk-recruiting-events-china-staff-cuts-2022-6 | https://www.businessinsider.com/tesla-elon-musk-recruiting-events-china-staff-cuts-2022-6 |
The 28-year-old crypto CEO who 'inspires' Jack Dorsey discusses the most important metric to value bitcoin by as it struggles to recover
Jack Mallers, CEO of Strike, said bitcoin's stock-to-flow ratio is why the cryptocurrency is the "hardest asset of all time."
Jack Mallers/ Jack Mallers
Jack Mallers is the 28-year-old CEO of crypto payments app Strike.
Mallers told Insider that bitcoin is the best cryptocurrency to invest in right now.
Mallers said bitcoin's stock-to-flow ratio sets bitcoin apart from all other crypto investments.
When Satoshi Nakamoto created bitcoin, he capped the total amount of the cryptocurrency that would ever exist at 21 million.
Due to this inherent scarcity, investors ranging from Mike Novogratz to Bill Miller believe that bitcoin is the digital version of gold. It makes sense that, with a finite supply of bitcoin available to investors, the cryptocurrency only becomes that much more valuable the closer we get to the last bitcoin ever mined.
Jack Mallers also believes that bitcoin is a form of digital gold, and in a recent interview with Insider he cited the specific mathematical model that predicts bitcoin will one day be the "hardest" asset, and why he thinks that makes the cryptocurrency an incredible investment opportunity.
Who is Jack Mallers?
Jack Mallers is a 28-year-old Illinois native who created the payment platform Strike, which uses the lightning network, a layer 2 bitcoin scaling solution, to improve the original blockchain's speed, scale, and efficiency
Strike has found tremendous success in the five years since its founding. El Salvador, which made bitcoin an official currency last year, uses Strike's app to allow vendors to send and accept bitcoin. Twitter's tipjar — which allows for Twitter's over-200 million users to use bitcoin as a payment — utilizes Strike's plug-in to send bitcoin "tips."
As Strike has grown, so too has Mallers' authority in the cryptocurrency industry. In fact, Twitter and Block founder Jack Dorsey has cited him as an "incredible inspiration."
Despite the bear market , Mallers maintains an absolute belief in bitcoin, and has previously stated that he believes the price of bitcoin could hit six figures as soon as this year.
Mallers roots his optimism in the power of the stock-to-flow model. This model illustrates bitcoin's scarcity compared to other assets, and proves that bitcoin's price increases have been directly related to its rising scarcity — and that future price appreciation lies ahead.
What is stock-to-flow?
Stock-to-flow measures how much of an asset exists in the world, and compares it to how many units of the asset are created each year.
The model was pioneered by Plan B, a pseudonymous Twitter user with over 1.5 million followers, as well as a background in law and finance. On a recent episode of SALT Crypto with Skybridge Capital's Anthony Scaramucci — who has described the model as being the "most prescient" for bitcoin valuation — PlanB explained stock-to-flow.
"The stock-to-flow model basically says that if an asset is scarcer, then it should be more valuable," PlanB said. "How do you quantify scarcity? There's a known measure, the stock-to-flow measure, the number of years for a reserve for a certain asset to replenish the reserve that exists. The scarcer an asset, the higher the stock-to-flow ratio, the higher the value of that market should be."
The stock-to-flow equation is simple: stock (or the total amount of asset available) divided by flow (how much of an asset is produced annually). The resulting ratio determines how scarce or abundant the asset is, and the higher the ratio, the more scarce (and therefore valuable) the asset is. Mallers would describe an asset's stock-to-flow ratio as "hardness," noting that "the harder a resource is, the more valuable it becomes."
Stock-to-flow shows how bitcoin's value rises over time
Below are the stock-to-flow calculations of gold and bitcoin — which have high stock-to-flow ratios — and zinc , which has a relatively lower stock-to-flow, and thus holds less value.
The world's supply (stock) of gold is 244,000 metric tons, and 3,560 metric tons are produced annually (flow). So its stock-to-flow ratio is roughly 68.5:
244,000 total supply (in tons) / 3,560 total creation = 68.5 stock-to-flow ratio
The world's supply (stock) of bitcoin is 18,920,000, and 328,500 new bitcoins are produced annually (flow). So its stock-to-flow ratio is about 57.5:
18,920,000/328,500 = 57.5 stock-to-flow ratio
The world supply (stock) of zinc is 250 million metric tons, and 13.8 million metric tons are produced annually (flow). So its stock-to-flow ratio is roughly 18.1:
250/13.8 = 18.1 stock-to-flow ratio
What compounds bitcoin's stock-to-flow ratio are its halving events. A "halving" refers to when a bitcoin miner's reward for creating a new block on the bitcoin blockchain — paid in bitcoin — is reduced by half. Bitcoin halving occurs once every four years.
For example, in 2020 the reward a bitcoin miner got for mining a block of bitcoin was cut in half from 12.5 btc to 6.25 btc per new block. The next halving event is in 2024, when the reward will be reduced to 3.125 btc.
Those who believe in the stock-to-flow model point to the fact that not long after each halving event, bitcoin's price surges to a new all time high. After the 2016 halving, for instance, bitcoin's price went from trading between $500 and $1,000 to $20,000. After the halving in 2020, the price climbed from $9,000 to about $30,000.
The next halving event is set to occur in 2024, at which point the global production of bitcoin is set to decrease 50%, thus making bitcoin a much "harder" asset according to the stock-to-flow model.
When the halving occurs in 2024, the stock-to-flow of bitcoin would be
(present stock) 18,920,000 + (2 x 328,500) (two years of production) = 19,577,000
328,500 / 2 = 164,250 (one half production after the halving)
19,577,000 / 164,250 = 119.19
This means in two years, bitcoin will become more than twice as "hard" as it is now, and its stock-to-flow ratio will easily surpass that of gold.
Those who believe the stock-to-flow model has a positive financial relationship with halving events would argue that the 2024 bitcoin halving could drive the cryptocurrency to a new all-time high.
Bitcoin's downturn doesn't mean the model is wrong
While the stock-to-flow model gained prominence during the last bull run, it has since received a lot of criticism in the recent bear market.
Critics say that according to the model, bitcoin should be closer to the market cap of gold, as their stock-to-flows are similar. However, while gold's market cap sits at $11.7 trillion, bitcoin's is just $596 million, and the highest it ever reached was $1.27 trillion at its peak in 2021.
Moreover, given the current crypto winter, many are losing faith in the stock-to-flow model. According to PlanB's predictions last year, bitcoin should have touched $100,000 per coin in December 2021. Not only did it never hit that, it ended December down 17% and finished 2021 around $47,700.
Since then, bitcoin has fallen even further as stock market doldrums in 2022 sent cryptocurrency prices plummeting. Bitcoin's price is currently hovering around $30,000, and there's little sign that it will recover any time soon.
Marcel Burger, the CIO of AMDAX Asset Management, told Insider about his issues with the model. "The stock-to-flow model was introduced as a model to forecast the future price of bitcoin," Burger said. 'As the model is built upon linear regression, but it doesn't meet the required assumptions in order to do so, this model can't produce reliable results."
While Burger said stock-to-flow is a failed econometric model, he did say there are some merits to it.
"It is fair to assume that assets that get more scarce over time tend to increase in price. As long as demand remains equal, but supply decreases, I would expect prices to increase," Burger said.
In his discussion with PlanB, Anthony Scaramucci expressed his continued belief in the model despite criticism that it isn't keeping up with bitcoin's recent price movements. "There's an expression that Warren Buffet has that I would rather be roughly right than precisely wrong," Scaramucci said. "When you step back and look at it is doing more or less what you said."
PlanB agreed, making it clear that his intention with the model was never to map out bitcoin's price movements day-by-day, but rather to provide a guide for bitcoin's potential price over the long-term.
"It's a very principle-based, very intuitive-based thing that scarce things are more valuable. It uses that same scarcity to value bitcoin," PlanB told Scaramucci. "It would not be very usable for trading, but it would be a very rough compass for investors."
For Mallers it's the underlying idea of creating a store of value with high "hardness" that matters the most. He's less interested in bitcoin's daily moves, and far more focused on its long-term potential. And it's bitcoin's "hardness," as illustrated by the stock-to-flow model, that makes him a bitcoin believer.
"Bitcoin has accomplished a hardness never before seen in our species history, it has set a record for hardness in stock to flow," Mallers said.
Get the latest Gold price here.
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altcoin investor | 2022-06-10T17:08:42Z | www.businessinsider.com | The Mathematical Formula Behind Bitcoin Bullishness: Crypto CEO | https://www.businessinsider.com/bitcoin-investing-crypto-dorsey-stock-flow-bullish-jack-mallers-strike-2022-6 | https://www.businessinsider.com/bitcoin-investing-crypto-dorsey-stock-flow-bullish-jack-mallers-strike-2022-6 |
Cort is a classic Berkshire Hathaway business. CEO Jeff Pederson explains why Warren Buffett's backing gives him an edge over rivals, how he's dealing with inflation and why he isn't stressing about the next recession.
Cort CEO Jeff Pederson.
Warren Buffett's Berkshire Hathaway acquired Cort, a furniture-rental company, in 2000.
Cort CEO Jeff Pederson trumpeted Berkshire's ownership as a key advantage over rivals.
Pederson explained how Cort mitigated the pandemic's impact, and how it's dealing with inflation.
Warren Buffett's Berkshire Hathaway acquired Cort, a furniture-rental company, for about $386 million in 2000. The famed investor described it as a "national leader" and a "fine though unglamorous business" in his letter to Berkshire shareholders that year.
Cort CEO Jeff Pederson explained the benefits of Berkshire's ownership, how he's dealt with the pandemic and inflation, and why a recession doesn't scare him in an interview with Insider this week.
The Berkshire way
When Buffett buys a business, he promises minimal intervention, financial support, and a permanent home.
"It's night and day" compared to running a public company or reporting to private equity owners, Pederson said. At Berkshire, he can focus on making the best long-term decisions possible, instead of worrying about financing or hitting Wall Street's quarterly forecasts.
Buffett and his top deputy, Greg Abel, trust Pederson to run Cort, but are happy to help and answer questions when needed, he said.
"In the past, I would use Mr. Buffett as kind of a sounding board," Pederson recalled, noting he valued the investor's decades of experience across multiple industries.
While Berkshire doesn't actively encourage synergies between its subsidiaries, Pederson has found that speaking with his peers and attending internal CEO roundtables is helpful in solving problems and refining strategies.
Weathering the pandemic
"Imagine running the nation's largest trade show and events business when the world gets shut down," Pederson said. "That aspect of our business went from hero to zero."
Fortunately for Cort, it was able to mitigate some of that pain by providing furniture and related services to mobile response units, traveling nurses, testing sites, and transitional housing during the pandemic. Its clearance-center business also saw strong demand as people stuck at home spruced up their living spaces, Pederson said.
Thanks to Berkshire's backing, Cort didn't suffer the cash crunch that many of its rivals did. It kept buying what it needed, and was able to secure some preferential treatment from suppliers. The company has received north of 450 containers of furniture this year, and expects another 250 by Christmas, Pederson said.
Moreover, Cort is benefiting from pent-up demand for events now the pandemic threat has receded. That part of its business is "bouncing back in a wildly successful way," Pederson said.
He also shared his key takeaway from the health crisis. "The pandemic taught us that you really have to make certain you've got not just a plan A, or a plan B, but a Plan C," Pederson said.
Dealing with inflation
The rising expense of shipping, trucking, and manufacturing inputs such as steel has been painful for Cort, Pederson said. It has passed on some of those higher costs in the form of price hikes, but it doesn't want to be too early or aggressive in defending its profit margins, and risk losing customers.
"Most businesses — Cort is no exception — are playing catch up to inflation," Pederson said, noting some executives expected price increases to be transitory, or fuel costs to normalize before the summer.
He added that Cort actually benefits from moderate inflation, as penny-pinching businesses opt for cheaper, shorter-term commitments such as renting furniture instead of buying it.
Pederson reflected on Cort's underperformance after the dot-com and housing bubbles burst. Surprisingly, he noted that lots of businesses sprung up in the late 1990s based on Y2K fears, but when the new millennium didn't spark a worldwide computer crash, those companies shut down almost overnight, creating a nationwide glut of office furniture.
Meanwhile, Cort suffered during the financial crisis because a big chunk of its business was renting furniture to people moving homes, and house sales slowed down, he said.
Pederson added that he isn't overly worried about the next recession. Cort has held up well in past ones, and he expressed confidence that Buffett and Abel will support him in managing the company for long-term success, instead of overreacting to a temporary downturn.
More: Markets Investing Warren Buffett
Jeff Pederson
Greg Abel | 2022-06-10T17:08:48Z | www.businessinsider.com | Cort CEO on Benefits of Buffett-Owned Businesses, Inflation, Recession | https://www.businessinsider.com/cort-jeff-pederson-warren-buffett-berkshire-hathaway-pandemic-inflation-recession-2022-6 | https://www.businessinsider.com/cort-jeff-pederson-warren-buffett-berkshire-hathaway-pandemic-inflation-recession-2022-6 |
On Friday, a Manhattan judge rejected the NRA's bid to throw out a lawsuit by New York's attorney general.
AG Letitia James can continue to seek to bar Wayne LaPierre from leading the gun group.
James is also seeking an independent monitor, something the NRA likened to a state "takeover."
In a legal loss for the NRA and its newly re-installed leader, a Manhattan judge on Friday rejected the gun group's bid to quash a lawsuit that seeks to install an independent monitor and oust Wayne LaPierre from its helm.
The decision by New York State Supreme Court Justice Joel Cohen allows a lawsuit by New York Attorney General Letitia James to move forward by rejecting the NRA's claim that she pursued the gun group solely out of political bias.
The NRA has failed to prove that James pursued the NRA only because of her political views, the judge ruled.
Instead, James' allegations of "fraud, waste, and looting" are enough to justify her lawsuit, regardless of her political beliefs, the judge wrote.
"There are no factual allegations suggesting that the stated concerns driving the investigation — reports of fraud, waste, and looting within the NRA — were imaginary or not believed by the Attorney General," the judge wrote.
None of the AG's claims are frivolous, Cohen added.
"In fact, the NRA itself recognized many of the same issues about corporate governance underlying the Attorney General's investigation," the judge wrote.
James' lawsuit seeks to oust LaPierre from the group's helm by barring him and three other leaders from ever heading a non-profit in New York.
The suit also seeks to install a court-appointed monitor, something the NRA has likened to a state "takeover" attempt.
Cohen had sided with the NRA just two months ago, in another key ruling. He refused to dissolve the group in its entirety, as James had originally requested, arguing that doing so could impinge on the free speech rights of its millions of members. James has yet to say if she is appealing that ruling.
More: Wayne LaPierre NRA Letitia James Breaking | 2022-06-10T17:08:54Z | www.businessinsider.com | Court Upholds NY Attorney General's Case Against NRA | https://www.businessinsider.com/court-upholds-ny-attorney-general-case-nra-letitia-james-2022-6 | https://www.businessinsider.com/court-upholds-ny-attorney-general-case-nra-letitia-james-2022-6 |
The University of Michigan's consumer sentiment index cratered to 50.2 from 58.4 in an early June reading, according to a Friday report. That reflects the lowest level since regular monthly data collection began in the late 1970s. The print also landed well below the median forecast of 58.1 from economists surveyed by Bloomberg.
That share will likely be larger in the final June reading. Data out earlier Friday morning showed inflation unexpectedly speeding up in May to a year-over-year pace of 8.6%. The uptick was largely powered by skyrocketing energy prices, with the cost of gasoline and fuel oil both surging last month. The report countered hopes that inflation had peaked in March and signaled it will likely be harder than initially expected to slow price growth.
More: Economy Economic Indicators University of Michigan consumer sentiment University of Michigan Survey of Consumers
UMich consumer sentiment | 2022-06-10T17:09:00Z | www.businessinsider.com | University of Michigan Consumer Sentiment Index Hits All-Time-Low | https://www.businessinsider.com/economic-outlook-consumer-sentiment-lowest-level-ever-2022-6 | https://www.businessinsider.com/economic-outlook-consumer-sentiment-lowest-level-ever-2022-6 |
Here's the 12-page pitch deck a startup helping fintechs manage their data used to score a $4.3 million seed from investors like Redpoint Ventures and Y Combinator
Bianca Chan
Proper Finance co-founders Travis Gibson (left) and Kyle Maloney.
Proper Finance is a fintech that provides infrastructure for other fintechs to manage data.
The startup was founded by two former employees of Marqeta, a payments fintech.
Here's the deck it used to raise $4.3 million from investors Redpoint Ventures and Y-Combinator.
As the flow of data becomes evermore crucial for fintechs, from the strappy startup to the established powerhouse, a thorny issue in the back office is becoming increasingly complex.
Even though fintechs are known for their sleek front ends, the back end is often quite the opposite. Behind that streamlined interface can be a mosaic of different partner integrations — be it with banks, payments players and networks, or software vendors — with a channel of data running between them.
Two people who know that better than the average are Kyle Maloney and Travis Gibson, two former employees of Marqeta, a fintech that provides other fintechs with payments processing and card issuance.
"Take an established neobank for example. They'll likely have one or two card issuers, two to three bank partners, ACH processing for direct deposits and payouts, mobile check deposits, peer-to-peer payments, and lending," Gibson told Insider.
At Marqeta, a growing portion of Gibson and Maloney's time was spent stitching together these back-end providers.
"We were constantly tweaking and refining our underlying financial-data infrastructure," Maloney said. When they couldn't find a product in the market to manage under-the-hood financial-data operations, they decided to build it instead.
A few months later, Proper Finance was born. The startup helps other fintechs keep track of transaction data moved between third-party and in-house systems with its platform that acts as ledger. The system tracks money movement to external parties to confirm funds have been processed and matches transaction data across different sources to make sure it is consistent across disparate systems.
The startup raised a $4.3 million seed round on June 8 led by Redpoint Ventures with participation Y Combinator, BoxGroup, and Mischief, among others.
Since officially launching in 2021, Maloney, Proper's CEO, and Gibson, its CTO, have found that back-end data integrations are a ubiquitous thorn in many fintechs' sides.
"For any company that moves money, financial accuracy and regulatory compliance are a must. But financial data exists across many sources, payment providers, and systems," Maloney said. "Today, teams spend dozens to hundreds of hours per month pulling together this data and reconciling it across their services to ensure that money has moved correctly, typically using spreadsheets and complex queries," he added.
And while the fintech industry, compared to the legacy banking system, is new, it still relies on those banking rails and its accounting methods. "This doesn't always connect with Silicon Valley's 'move fast and break things' ethos," Maloney said.
With Proper Finance, Maloney and Gibson are looking to give back-office operations teams a lift with their single system that tracks and connects data, and processes the payment data across each provider.
Here's the 12-page pitch deck Proper Finance used to raise its $4.3 million seed. | 2022-06-10T17:09:06Z | www.businessinsider.com | Fintech Proper Finance's Pitch Deck Used to Raise $4.3 Million Seed | https://www.businessinsider.com/fintech-proper-finances-pitch-deck-raise-seed-round-y-combinator-2022-6 | https://www.businessinsider.com/fintech-proper-finances-pitch-deck-raise-seed-round-y-combinator-2022-6 |
CNN's Jim Acosta questions former Fox News editor Chris Stirewalt about the Arizona audit on September 26, 2021
Chris Stirewalt, who was fired from Fox News after the 2020 election, will testify on Capitol Hill.
The former political editor will appear at Monday's January 6 hearing, he said on Friday.
The select committee hearing will begin at 10 a.m. EST on Monday.
Former Fox News political editor Chris Stirewalt will testify before the January 6 committee on Monday, he confirmed on-air Monday at his new home, NewsNation.
Speaking on the Nexstar-owned cable channel — rebranded from WGN America in March 2021 — Stirewalt said he could not discuss what he would be testifying about, but offered some commentary on his time at Fox News, where he was fired in January 2021.
—Kellie Meyer (@KellieMeyerNews) June 10, 2022
Kellie Meyer, NewsNation's Washington correspondent, tweeted on Friday morning that Stirewalt said Fox News hosts "were functioning as an arm of the Republican Party."
Stirewalt has specifically been critical of prime-time opinion hosts such as Tucker Carlson, who he said acted in a "beyond reckless" manner by airing his conspiracy theory-ridden January 6 documentary on the Fox Nation streaming service.
Carlson's primetime colleagues, Sean Hannity and Laura Ingraham, have been caught up in the committee's investigation through text messages they sent to former White House officials as the insurrection was unfolding. Both offered political messaging advice to the White House privately, but on-air, they did not implicate Trump as directly for his role in the riot, and issued general condemnations of anyone committing violence on the day.
The hosts also privately pleaded with former White House Chief of Staff Meadows to get Trump to call off his supporters as the Capitol siege escalated.
One of the most critical junctures for Fox News — and potentially of interest to the committee with regard to Stirewalt — came in its mid-election week call for Arizona to go for President Joe Biden.
Fox News had just introduced a new methodology to its decision desk, which its director, Arnon Mishkin, explained to Insider ahead of Election Day. The network called Arizona before other major TV outlets, and ultimately proved correct in its decision.
However, the Arizona call — which put Biden on the cusp of victory as ballots continued to be counted that week — sent Trumpworld into a frenzy, with the former president quickly turning the cold shoulder to his self-professed favorite TV channel. | 2022-06-10T17:09:12Z | www.businessinsider.com | Ex-Fox News Editor Chris Stirewalt to Testify at Next Jan. 6 Hearing | https://www.businessinsider.com/fox-news-editor-chris-stirewalt-testify-next-jan-6-hearing-2022-6 | https://www.businessinsider.com/fox-news-editor-chris-stirewalt-testify-next-jan-6-hearing-2022-6 |
From gold to enterprise software, top hedge fund players like David Einhorn and Mala Gaonkar share what investment opportunities they're eyeing
Photo by Neilson Barnard/Getty Images for New York Times
Mala Gaonkar is eyeing ServiceNow, a $95 billion enterprise software company based in Santa Clara.
Greenlight Capital David Einhorn is pitching gold, "the ultimate reverse asset."
Activist ESG investor Lauren Taylor Wolfe is betting on Wex, a high-quality payments company.
Hedge funds are having to adapt to a pretty different environment as inflation runs rampant, interest rates rise, and the continuation of the Russia/Ukraine war.
At the 2022 Sohn Investment Conference, Stanley Druckenmiller warned Wall Street that we're about six months into a bear market and that it still has some ways to run.
"For those tactically trading, it's possible the first leg of that has ended. But it's highly, highly probable that the bear market has a ways to run," he added during the virtual broadcast of the event Thursday.
For managers looking for inspiration in these volatile times, Insider pulled together some of the top insights from the day from investors including former Lone Pine manager Mala Gaonkar, billionaire investor and Greenlight Capital head David Einhorn, and Lauren Taylor Wolfe, founder of activist hedge fund Impactive Capital.
Learn more about their investment ideas here:
Mala Gaonkar, SurgoCap Partners
Long-time Lone Pine managing director Mala Gaonkar has been growing her team for her anticipated fund launch.
Adam Jeffrey/Getty Images
Gaonkar — the long-time Lone Pine Capital managing director and portfolio manager — is set to launch her own fund, SurgoCap Partners, in January 2023, which is expected to raise at least $1 billion.
The fund is expected to focus on the intersection of technology and the following themes: enterprise data, financial services, healthcare, and industrials.
One company she's keeping an eye on as she prepares to roll out the fund is ServiceNow, a $95 billion enterprise software company based in Santa Clara. The company's tech and data platform help automate workflow across all aspects of a business — which could include dealing with customer complaints or organizing factory upgrades, Gaonkar explained.
The software company already has 80% of Fortune 500 companies as its customer base, she added, but she sees potential for ServiceNow to significantly grow the services clients are already using.
Kraft Heinz started with ServiceNow's information technology products but has expanded to use the company's workflow tools for its product research and development and manufacturing operations.
"We believe ServiceNow has an underappreciated runway of growth, with the opportunity to reinvest capital at very high levels for the foreseeable future," she said. ServiceNow was trading at $472.74 a share and was down 25% year-to-date as of noon on Friday.
David Einhorn, Greenlight Capital
David Einhorn speaking at the Sohn conference in New York, May 2019.
The value investing boss is known for taking both long and short positions, more famously when he shorted Lehman Brothers over a year before the bank's collapse and betting against Tesla.
Now, Einhorn is pitching gold. It's "the ultimate reverse asset," he said at the conference. He told the audience that he prefers gold to cryptocurrencies since gold is recognized as a "globally acceptable" central bank asset.
"The question is whether there's enough gold to back the currency reserves," he said. "The answer is for the price of gold to go higher, perhaps much higher."
Spot gold, or the live price of gold, was down roughly 0.95% at $1,830 per ounce on Friday morning, while US gold futures dropped a little over 1% to $1,832.40.
Over the past few months, he's been outspoken about the Federal Reserve's handling of inflation rates, and his attitude since hasn't seemed to change. As inflation continues to surge prices across a myriad of industries, Einhorn said he still believes that the level of inflation is understated.
He also blamed the Fed for not increasing interest rates fast enough to help control inflation.
"As we watch the Fed implement unconventional monetary policy, the Fed promised it could handle inflation when and if it occurred," he said at Sohn. "For example, here was Ben Bernanke promising he could raise interest rates in 15 minutes if needed. As it turns out, this wasn't quite right."
Lauren Taylor Wolfe, co-founder of Impactive Capital
Impactive Capital co-founder Lauren Taylor Wolfe.
Impactive Capital
After spending a decade at Blue Harbour Capital, Wolfe started her own activist investment firm, Impactive Capital, in 2018 focusing on environmental, social, and governance.
This year, Wolfe is betting on Wex, a high-quality payments company that operates across three segments: commercial and government vehicle fleet industry, corporate payment, and healthcare.
"By nature of its revenue models, it benefits in inflationary environments and it compounds earnings through the cycle," she said. "Its high quality and resilient business have enjoyed a long track record of double-digit returns."
Despite its track record of earnings and growth, Wex is trading at its lowest multiple in over a decade, said Wolfe, and is trading at 13 times earnings. Wex was trading at $57.05 a share, down 64% so far this year, as of mid-day Friday.
"This is driven by market fears over new entrants primarily in the smaller corporate payment segment," she said.
Over the next three years, Wolfe predicts that Wex will generate $2.2 billion in free cash flow and $2.2 billion in debt capacity. This means there will be $4.5 billion of capital to deploy, which is 60% of their market cap .
"If Wex deploys this capital entirely to share repurchases, they'll generate about $23 a share in earnings by 2026."
At last year's Sohn conference, Wolfe pitched government services company KBR, which was "misunderstood and had an accelerated yet underappreciated tech business," she said. As of Friday, KBR was up 25.7% year-on-year.
More: hedge fund Lone Pine Mala Gaonkar
Greenlight Capital | 2022-06-10T17:09:30Z | www.businessinsider.com | Investors David Einhorn, Mala Gaonkar Share Best Investment Ideas | https://www.businessinsider.com/hedge-fund-investors-einhorn-gaonkar-wolfe-best-investment-ideas-sohn-2022-6 | https://www.businessinsider.com/hedge-fund-investors-einhorn-gaonkar-wolfe-best-investment-ideas-sohn-2022-6 |
Trump allies spoke directly with extremist groups, the January 6 hearing committee chair alleged.
Rep. Bennie Thompson spoke with CNN's Jake's Tapper following Thursday night's prime-time hearing.
'A number of witnesses' would describe talks between extremists and those in 'Trump's orbit,' he said.
Upcoming hearing witnesses will describe direct, back-channel talks between Trump allies and extremist groups in the lead-up to the Capitol riot on January 6, 2021, House Select Committee Chair Bennie Thompson said in an interview with CNN.
Thompson teased the upcoming testimony in an interview with network host Jake Tapper after presiding over Thursday night's first, prime-time hearing on the attack on the Capitol after Tapper mentioned the Proud Boys and the Oath Keepers.
Leaders of the two far-right, pro-Trump groups have been charged with seditious conspiracy for their alleged roles in the attack.
"I wonder about the Proud Boys and the Oath Keepers," Tapper asked.
"You convincingly made the case that Trump was good for their membership," Tapper said, referring to a Proud Boy's videotaped testimony, broadcast Thursday night, stating that membership tripled after Trump told the group to "stand back and stand by."
"And you convincingly made the case that they were there, they thought, because Trump had told them to be there to undermine the election, to stop the electoral count vote," Tapper continued.
"Are there going to be witnesses that describe actual conversations between those extremist groups and anyone in Trump's orbit?" the host asked.
"Yes," Thompson answered. He did not name names.
"Obviously, you have to go through the hearings," Thompson said. "But we have a number of witnesses who come forward that people have not talked to before, that will document a lot of what was going on in the Trump orbit while all of this was occurring."
He added, "And everything the public heard tonight is factual. We can prove it."
The Oath Keepers are accused of keeping caches of arms off-site, but at the ready as the attack unfolded, and federal prosecutors allege the group's leader, Elmer Stewart Rhodes, personally tried to speak to Donald Trump that day.
Federal prosecutors have alleged that a force of some 200 Proud Boys spearheaded the attack on the property itself.
Prosecutors have said that the extremist group's members were the first to reach the barricades and the first to breach the building itself, allegedly using a riot shield ripped from a Capitol Police officer to break a Capitol window.
More: Capitol Siege January 6 commitee hearings January 6 commission Donald Trump | 2022-06-10T17:10:18Z | www.businessinsider.com | Trump Allies Spoke With Extremist Groups, Jan. 6 Hearing Chair Says | https://www.businessinsider.com/trump-allies-spoke-with-extremist-groups-capitol-riot-hearings-chair-2022-6 | https://www.businessinsider.com/trump-allies-spoke-with-extremist-groups-capitol-riot-hearings-chair-2022-6 |
Leaked audio reveals that for BofA's investment bankers, the message is unwritten but clear: Back to your seats
Alex Morrell and Samantha Stokes
Bank of America CEO Brian Moynihan.
Bank of America requested investment bankers return to the office at least four days a week, according to leaked audio.
In a mid-May call, junior M&A staffers were asked to be in the office five days a week.
The call illustrates the struggle Wall Street firms have faced getting workers back in the office.
On a Wednesday in mid-May, Kevin Brunner and Ivan Farman, Bank of America's coheads of merger and acquisitions, were set to host a phone call with their team's junior staffers in New York and Palo Alto around expectations for in-office attendance, which had been sparse.
The pair didn't show — a person familiar with the matter said they both had conflicts — and instead the chief resource officer, a mid-level group official responsible for staffing juniors to deals, delivered the news: All employees at all levels in investment banking, referred to as "IBK," would be expected back in the office at least four days a week, and they wanted to see M&A staffers back five days a week.
"I want to communicate that the current expectation here — and this is being communicated across all of IBK and all levels — is that we as a firm come in at minimum four days a week. Again, this is an all IBK, all levels update," said Malav Chakravorty, the M&A chief resource officer who led the call. "And then I will say, specifically in M&A, we would love to see you five days a week."
"We will be in contact with you on a weekly basis here as we really focus on this initiative," Chakravorty said, according to a recording of the call heard by Insider. Two people with direct knowledge of the call confirmed details surrounding its circumstances.
No follow-up email or written directive was issued detailing the changes, the sources said. But the next week, investment banking head Thomas Sheehan visited the division's teams in-person at the firm's One Bryant Park headquarters and verbally reiterated the return-to-office expectations, one junior investment banker said.
Attendance has been closely monitored since and managers in the unit have called employees to grill them about absences, this person said.
The episode highlights Bank of America's strategy of empowering divisional leaders to mandate return-to-office regimes stricter than the bank's official, broader policy, which has created a hodge-podge of rules and attendance across teams.
It also underscores an aversion by some BofA leaders to put more austere measures in writing.
A Bank of America spokesman declined to comment on the firm's return-to-office procedures beyond reiterating the official company policy, which is to work from the office more often than at home while promoting remote-work flexibility at the manager's discretion.
Employees have been grilled about absences
Demands for in-person work have become common in recent months at Wall Street investment banks, whose leaders are pressing to reclaim tenets of prepandemic office culture, even after their dealmaking and trading operations produced record performance in the remote-work era. Goldman Sachs and JPMorgan have faced internal blowback from employees over rigid enforcement and tracking of return-to-office initiatives.
Fully staffed and bustling offices have taken on added importance as summer interns, the pipeline of future junior talent, flock to Wall Street offices this month.
Bank of America called vaccinated employees back to the office in March without prescribing either a hybrid or full-time attendance policy, and it expanded its call to all employees regardless of vaccination status last week.
The tactics in the M&A team echo those in other hard-charging groups, such as the equities trading unit, in which managers have conveyed full-time, in-office expectations without formally enshrining them in a company memo, sources previously told Insider.
"They've generally avoided putting anything on paper and such decisions are communicated on calls," the junior investment banking employee told Insider, suggesting it was an attempt to avoid the leaks and bad publicity that have become fodder for popular Instagram accounts dedicated to lampooning Wall Street.
But the message was nonetheless received loud and clear.
After the call in May, attendance swelled, the investment banking staffer said. This person added that attendance has been tracked closely and that managers have called absent employees to grill them about their whereabouts and to reiterate the attendance expectations.
"We are junior, you don't want to be in the bad book," this person said.
In the investment banking group, some people are unhappy with the in-office demands, especially as Covid-19 has continued to spread, including among team members.
One person on the mid-May call asked how Covid-19, which in May surged throughout New York City, factored into the thought process behind the policy, according to the audio heard by Insider. This person noted that deal team members "regularly are still getting Covid." The guidance provided was simple: If you know you have Covid-19, report it and do not come in.
This person expressed concern about exposure on the team given the lag between infection and the presence of symptoms, which was met with several seconds of silence before the host thanked them for the comment.
"The lack of flexibility given how much the bank demands from its junior investment bankers feels like shit to be honest," the junior investment bank staffer with knowledge of the call told Insider. | 2022-06-10T18:44:18Z | www.businessinsider.com | Leaked Audio: BofA M&a Bankers Asked Back to Office Full-Time | https://www.businessinsider.com/bofa-leaked-audio-bankers-told-back-to-office-four-days-2022-6 | https://www.businessinsider.com/bofa-leaked-audio-bankers-told-back-to-office-four-days-2022-6 |
Bryan Hainer/Getty Images
The 340 employees at a Nebraska construction firm are getting $2,000 bonuses to offset inflation.
Hawkins Construction CEO Chris Hawkins told Construction Dive it's a worthwhile investment.
The bonuses came with a request to work smarter and "help us stay cost competitive" while on the job.
With US inflation reaching its highest level in 41 years, ordinary wage increases are falling well short of matching the higher costs of living.
For Chris Hawkins, president and CEO of Hawkins Construction in Nebraska, the math showed that employees at his company would come up about 3% short of inflation after their normal raises.
To help offset those costs, he told Construction Dive, each of the company's 340 hourly workers received a $1,000 bonus check in April. A second bonus of $1,000 is scheduled for August.
"It's really difficult to overpay for talent," Hawkins told the publication. "You can spend a lot on talent and not regret it."
The bonuses do come with a request:
"Be focused, be a little more efficient," Hawkins said. "Take five minutes to unravel your extension cord instead of 10. You can help us stay cost competitive."
Nate Harper, who has been with Hawkins for 17 years, said he hoped other companies would follow suit: "Everybody knows the problem there, but figuring out how to help the individuals who are carrying you, that's something a lot of companies could learn from."
Hawkins Construction didn't immediately respond for a request to comment.
Nearly half of 300 employers surveyed by an HR consulting firm said they do not consider inflation when calculating salaries, Forbes previously reported. The same survey found more than 40% of workers asked for help with rising costs.
Wages have certainly been climbing since the beginning of the pandemic, but those gains are largely attributable to people switching jobs.
On average, salaries for new hires are 7% higher than the median pay for people already employed in similar positions, according to LaborIQ, a compensation data provider.
More: Construction Nebraska Inflation bonus pay | 2022-06-10T18:44:24Z | www.businessinsider.com | Construction CEO Giving Employees $2,000 Inflation Bonuses: Report | https://www.businessinsider.com/construction-ceo-in-nebraska-gives-employees-2000-inflation-bonuses-report-2022-6 | https://www.businessinsider.com/construction-ceo-in-nebraska-gives-employees-2000-inflation-bonuses-report-2022-6 |
Disney insiders reveal why Bob Chapek fired TV chief Peter Rice and what it means for CEO succession plans
Claire Atkinson, Natalie Jarvey, and Alison Brower
Disney CEO Bob Chapek abruptly fired the company's TV content chief, Peter Rice, replacing him with Dana Walden.
Rice, a former Fox exec with close ties to Rupert Murdoch, did not fit in Disney's culture, insiders said.
Walden now may be positioned as a possible future CEO of the company
Just a few weeks ago, the Walt Disney Co's top TV content executive, Peter Rice, was in New York to showcase the company's creative output to a room full of advertisers, media and investors, handing off to his boss, CEO Bob Chapek, with a smile.
But behind the scenes, according to multiple sources inside and close to Disney, the two men were at loggerheads over Rice's desire to run his Disney fiefdom as his own and failing — in management's eyes — to be a team player.
Rice, one of Hollywood's most powerful content executives and a hugely popular figure in the industry, was fired on Wednesday by Chapek, who installed Rice lieutenant Dana Walden in his place.
A Brit who has long ties to Rupert Murdoch — he joined Disney via its $71 billion acquisition of Fox's movie and TV assets three years ago — Rice never fully adapted from the smaller company's scrappy, autonomous style to the larger company's more collaborative one, according to two people familiar with internal decision making.
"He was difficult to work with, ever since day one," said a high-level Disney insider, underscoring the cultural issues that came with acquiring Fox. "It's not an us-and-them" at Disney, the source continued. "You have to work together." This person added that Rice was also suspected of leaking negative news about Disney to the media. A person close to Rice denied this suggestion.
Rice closely guarded details of talent compensation deals from senior executives at the company, the insider said. "He said all the right things, but actions mean more." Former CEO Bob Iger had said he would rid Disney of Rice, this person added, but ultimately left him in place.
Yet in recent months, as Chapek has faced multiple crises — Disney's plunging stock price and the company's ongoing political wrestling with Florida Governor Ron DeSantis — Rice had been mentioned frequently in the media and in Hollywood circles, where he's respected by partners and competitors, as a potential replacement.
"He was fired. Boom. Threat to Chapek. Hollywood loved Rice. Not Chapek," said one consultant who has worked with Disney as a client.
Rice is also beloved by many who've worked under him. "Everyone loves Peter and thinks he's genuinely an incredible, empathetic leader," one ABC insider said. "He felt like the next Bob Iger to me."
But it's Walden who now may be positioned as a CEO in waiting, if she executes her job well. When Disney restructured its TV business to put Disney Media and Entertainment Distribution Chairman Kareem Daniel in charge of budgets, distribution, and other business functions, Rice's power was arguably reduced and his role became less clear, one Disney executive told Insider. Walden's star meanwhile was rising as she shepherded creative hits like ABC's "Abbott Elementary," Hulu's "Only Murders in the Building," and the Academy Award-winning documentary "Summer of Soul."
"What Peter was really good at was that intersection of the creative and the business," this person said. "After the reorganization, I was wondering, 'What is Peter's job?', because they took the money away from him and he's got all these big people reporting to him but they're the ones doing all the work."
Walden, Nat Geo President Courteney Monroe, and FX chief John Landgraf were firmly in charge of their purviews, the Disney executive added. "It's not like Peter was reaching down into their organizations to help them make creative decisions or even build creative relationships."
Some staffers are "concerned about Dana's authenticity" as a manager, the ABC insider said, "and how that will affect the culture. It's still pretty old school and fear-based but was getting better." This person added that some staffers were even reconsidering jobs they recently took in light of the shakeup.
But the Disney executive characterized Walden as "personable and a good and direct executive to work with who really knows her stuff." And the high-level Disney insider said Walden has operated well at the company. "She is not a diva, she's a really smart woman. She's got style and is confident."
When asked if Walden could be a successor to Chapek, this person said: "We'll see how she does in her role. It's a possibility."
As Hollywood reeled from Thursday's news, the Disney board took the unusual step of affirming they have Chapek's back, with chairman Susan Arnold sharing a statement of support. And the high-level insider said it's likely the board will renew his contract, which is up in February, at one of two upcoming meetings, in June and September.
Rice, whose own contract was renewed last summer through 2024, is currently working with Hollywood law firm Ziffren Brittenham to get it paid out, according to a source with knowledge of his plans.
One former Disney executive questioned why Chapek hadn't removed Rice sooner. "What took him so long!" this person said. "Peter spent all of his time bad-mouthing Bob Chapek to the press and setting himself up as an heir apparent. And what in the heck did he do at Disney anyway?"
But a second former Disney executive questioned the process and the notion that Rice wasn't a fit. "When you're talking about culture," this person said, "it's not very Disney to fire a chairman in a hastily arranged seven-minute meeting."
More: Disney Bob Chapek Careers | 2022-06-10T18:44:30Z | www.businessinsider.com | Inside Disney CEO Bob Chapek's Ouster of TV Chief Peter Rice | https://www.businessinsider.com/disney-ceo-bob-chapek-fired-peter-rice-elevated-dana-walden-2022-6 | https://www.businessinsider.com/disney-ceo-bob-chapek-fired-peter-rice-elevated-dana-walden-2022-6 |
Republican Rep. Scott Perry of Pennsylvania outside the Capitol on December 3, 2020.
A Republican lawmaker denied one of the most explosive claims made during a January 6 committee hearing.
Rep. Scott Perry called it a "soulless lie" that he sought a pardon from Trump.
Perry has thus far not testified under oath or cooperated with the investigation.
Republican Rep. Scott Perry blasted any suggestion that he sought a pardon from President Donald Trump for himself or others, rejecting an eyebrow-raising claim that was made during the House January 6 committee's first major public hearing the day before.
"The notion that I ever sought a Presidential pardon for myself or other Members of Congress is an absolute, shameless, and soulless lie," Perry wrote on Twitter Friday.
Rep. Liz Cheney, the top Republican on the panel, revealed on Thursday night that the committee uncovered evidence that Perry and other Republican lawmakers sought pardons from Trump in the wake of the January 6 insurrection, evidence that so far has not been presented to the public. Cheney's claim was one of the hearing's key moments.
"As you will see, Representative Perry contacted the White House in the weeks after January 6th to seek a Presidential Pardon," Cheney said during her opening statement. "Multiple other Republican congressmen also sought Presidential Pardons for their roles in attempting to overturn the 2020 election."
Cheney pointed out that Perry has refused to testify before the panel. She said that Perry was one of the key people involved in an effort to get Jeff Clark, a Trump loyalist, installed as Attorney General so that the Justice Department could do Trump's bidding in investigating his debunked claims about widespread voter fraud.
Thursday's hearing was just the first part of the committee's slate set for this month. Cheney said that the panel intends to hold a hearing next week focused on the efforts to install Clark atop the DOJ.
Clark has invoked his 5th Amendment right and has also refused to testify. The select committee investigating the Capitol riot and what led up to it voted in December to hold Clark in contempt.
Representatives for the committee and Cheney's office did not immediately respond to a request for comment.
A Pennsylvania Republican, Perry objected to the certification of his own state's Electoral College results as a way to try to overturn Biden's win.
More: Scott Perry Congress january 6 Capitol Siege | 2022-06-10T18:44:42Z | www.businessinsider.com | GOP Rep. Scott Perry: It's a 'Soulless Lie' That He Sought a Trump Pardon | https://www.businessinsider.com/gop-scott-perry-a-soulless-lie-he-sought-trump-pardon-2022-6 | https://www.businessinsider.com/gop-scott-perry-a-soulless-lie-he-sought-trump-pardon-2022-6 |
It doesn't take much to make a bed in Minecraft.
To make a bed in Minecraft, you'll need three pieces of wool, and three planks.
All three pieces of wool need to be the same color, which will also be the color of your bed.
You can get wool by shearing sheep, and planks by putting logs on your crafting table.
A bed should be part of any Minecraft survivalist's inventory. Not only does it let you skip the entire night, but sleeping in a bed resets your spawn point and keeps Phantoms away.
They're not hard to make, but you'll need to hunt for some crafting ingredients. Here's what you'll need.
How to make a bed in Minecraft
To make a bed in Minecraft, you'll need three pieces each of two different ingredients: Wool and planks.
You can get wool from sheep. Cutting the wool off a sheep using shears earns you between one and three pieces, and killing a sheep earns you one. You can also combine four pieces of string (usually dropped by spiders) together to craft one piece of wool.
A shorn and unshorn sheep in Minecraft.
All of your wool needs to be the same color to be used for a bed. Sheep can naturally spawn with white, gray, black, brown, and (occasionally) pink wool — if you want a different color, you need to combine your wool with a dyeing agent.
Breaking any tree gets you logs, and placing those logs onto a crafting table gets you planks. Every log makes four planks.
Once you've got three pieces of wool and three planks, line them up on your crafting table. Line the three wool pieces together horizontally, and line the three planks together horizontally in the row below.
This will craft a bed that's color matches the wool you used.
You'll make one bed for three of each ingredient.
What beds are for in Minecraft
Just like in real life, sleeping is incredibly important in Minecraft for a number of reasons.
Firstly: If you go for three in-game days without sleeping (or dying) and are outside at night or in a thunderstorm, terrifying creatures called Phantoms will spawn in the sky above you. They'll slowly swoop down and attack you until you die or go to sleep.
Second, your bed is your home — literally. Touching a bed (even if you don't sleep in it) sets that bed's location as your spawn point. This means that whenever you die, you'll spawn at that bed.
Sleeping in a bed at night or during a thunderstorm skips time forward to morning and resets the weather cycle. You don't need to fear the monsters that spawn at night when you've got a safe bed to sleep in.
Beds act as a spawn point and time machine.
Finally, beds have a secret function when used in The Nether or The End. If you try to place a bed in either of these dimensions, the bed will immediately explode with force stronger than a block of TNT. There's a good chance that it'll kill you in a single blow if you're not wearing armor.
These explosions are usually a downside, but when used carefully, they can be useful. Since the explosion hurts enemies too, most Minecraft speedrunners use beds to quickly kill bosses like the Ender Dragon. It's risky, but incredibly fun when you pull it off.
TECH How to make an enchantment table in Minecraft to power up your weapons and armor
TECH How to make fireworks in Minecraft and use them to fly
More: Tech How To Minecraft beds Minecraft Items | 2022-06-10T18:44:54Z | www.businessinsider.com | How to Make and Use a Bed in Minecraft | https://www.businessinsider.com/how-to-make-a-bed-in-minecraft | https://www.businessinsider.com/how-to-make-a-bed-in-minecraft |
SoftBank-backed OneTrust laid off 25% of its staff 1 month after the privacy-management startup predicted 'record quarters and increasing customer demand'
Samantha Stokes and Kali Hays
SoftBank CEO Masayoshi Son.
Privacy-management startup OneTrust just laid off 25% of its staff, nearly 1,000 employees.
The startup was valued at $5.1 billion when SoftBank led its Series C in December 2020.
In a blog post, CEO Kabir Barday shared the email he sent to the startup's employees.
Startups backed by Masayoshi Son's SoftBank Vision Fund continue to struggle.
OneTrust, an Atlanta-based privacy-management startup, on Thursday laid off 25% of its staff, or 950 employees. News of the layoffs, which was first shared on the anonymous employment message board Blind, was confirmed by a company blog post penned by CEO Kabir Barday.
In the post, first sent as an internal email to OneTrust employees, Barday attributed the layoffs to capital markets moving toward a "more balanced approach between growth and profitability." The company did not immediately respond to Insider's request for comment.
"I know this news is surprising, especially as you heard last month that the business is on track with record quarters and increasing customer demand," Barday said. "The decision to reduce our workforce is the result of an extensive evaluation process and is not a reflection of the performance of any one person or team. There is no sugar-coating it, this reorganization is painful for all of us – and this is a decision that I own as CEO, and the impact on our team members and their families is something I do not take lightly."
As governments have in recent years created laws to govern how websites handle consumer data, OneTrust and its competitors were created to help companies navigate these new rules. It was described six months ago as "a leader in the field" with a "booming" business by The New York Times. And the business was lucrative. OneTrust told the Times its larger clients were paying annual fees for its services in the six-to-seven figure range. OneTrust raised a $300 million Series C funding round in December 2020, led by SoftBank, which bumped its valuation to $5.1 billion.
This funding round was after OneTrust laid off a group of employees earlier that year, at the outset of the pandemic. Barday had said publicly no jobs at the company were at risk, then let go of 15% of the company's 2,200 workers, several of whom have now sued the company in the UK, claiming they were let go under a pretext of poor performance.
With its newest round of layoffs, OneTrust joins a growing list of startups backed by SoftBank's Vision Funds that have struggled in recent months. Corporate gifting platform Sendoso, which also picked SoftBank to lead its Series C round last fall, laid off 14% of its employees on Tuesday.
While SoftBank has had knockout wins with its investments in TikTok parent company ByteDance and DoorDash, other startups in its portfolio, like WeWork, Better, and Greensill Capital, have imploded. Recently, View, a smart glass company, is at risk of being delisted by the stock exchange after becoming one of the worst SPAC deals ever.
Overall, the tech industry has struggled in recent months as share prices for public tech companies have plummeted and VC funding has vaporized. Investors are instructing their startups to cut costs to avoid a "death spiral."
In many cases, that cost-cutting has come to pass as layoffs: More than 21,000 tech workers have lost their jobs so far this year, with 16,800 people dismissed in May alone, according to the online layoffs-tracker Layoffs.fyi.
Startups Superhuman, Main Street, Cameo, On Deck, and Robinhood all recently cut staff, while other tech firms are are freezing or slowing hiring.
More: Tech Masayoshi Son Softbank | 2022-06-10T18:45:00Z | www.businessinsider.com | Layoffs at SoftBank Vision Fund's OneTrust Privacy-Management Startup | https://www.businessinsider.com/layoffs-at-softbank-vision-funds-onetrust-privacy-management-startup-2022-6 | https://www.businessinsider.com/layoffs-at-softbank-vision-funds-onetrust-privacy-management-startup-2022-6 |
How Zelle scams work
Overview of Zelle policies
How banks view Zelle scams
How to avoid Zelle scams
4 red flags from scammers
How to use Zelle safely
Where to report Zelle scams
What to know about Zelle scams — from Zelle's policies to how to spot behavioral red flags from scammers
It's recommended to only use Zelle for payments involving people you know.
Anchiy/Getty Images
Scammers use Zelle and other payment apps because transactions are quick and hard to track.
If you get scammed on Zelle, it will be difficult to get your money back.
Use Zelle only for family and friends, and make sure to implement caution toward people you don't know.
Scammers are now turning to peer-to-peer (P2p) payment networks like Zelle to con people out of their money.
Here's what you should know about Zelle scams, so you can protect yourself while using the payment app.
A scam occurs when is person or company tries to deceive you into directly giving them money or sharing personal information so they can access it.
John Breyault, National Consumer League vice president of public, telecommunications, and fraud, says scammers take advantage of new payment technologies as they emerge. According to Breyault, scammers have now moved onto Zelle and other payment apps for three main reasons:
Money sent through payment apps is available quickly after being sent.
The money is difficult to get back due to regulation.
Scammers can remain out of reach of law enforcement by setting up dummy accounts or using other tactics.
Zelle works differently from other P2P payment apps because it's partnered with credit unions and banks. You'll also have to use your bank's mobile app or online banking platform to make a payment.
"For many consumers, that creates an impression, incorrectly, that the same kind of protections they get for other transfers through their bank, they're going to get on Zelle. That's not true," points out Breyault.
Alexis Castorina, senior director of consumer education at Zelle, says payments on Zelle should be treated like sending cash.
"Zelle does not offer a protection program for authorized payments. Once you authorize a payment to be sent with Zelle, you can't cancel it if the recipient is already enrolled because money is going directly into that recipient's bank account within minutes," says Castorina.
As a result, when you have fallen for a scam, the Zelle website says you must contact your financial institution.
Reporting a scam allows your financial institution to review your situation and freeze accounts if necessary. However, it's unlikely you'll get your money back.
"What we hear all too often from consumers is they do the right thing — call their bank. They report it. The bank says, 'Sorry, there's nothing we can do,'" says Breyault.
Banks will refer to Regulation E, also known as the Electronic Funds Transfers Act, which covers customer protections regarding money transfers — but only for unauthorized transactions. If you willingly hit send, it will usually be considered an authorized transaction. You likely won't get your money back.
Lauren Saunders, associate director at the National Consumer Law Center, says if someone hacked into your account and took your money, you are protected under the law.
"You should insist to your bank that it was an unauthorized charge and that they should reverse it," says Saunders.
4 behavioral red flags from scammers
Scammers may try to fool you by using skillful tactics, but be mindful of these four red flags if you're sending money to someone you don't know:
A person insisting on being paid only through a payment app
A person tries to rush you into making a quick payment
A person telling you that your account has been hacked and you need to share information
A bank calls you and tells you to send money through Zelle
In these situations, it's best to pause contact or hang up the call to determine whether the information you're receiving is correct.
Castorina says Zelle should only be used for people you know and trust. If you're using a Zelle to send money to someone you don't know, it's best to be cautious.
Here are a few tips on how to use Zelle and other payments safely:
Verify you have the right account
Send a small amount of money first and ask the person to make sure they received it
Use only home Wi-Fi or your cellular connection to avoid security gaps in public Wi-Fi
Be mindful of what you share on social media, so scammers don't know details about your personal life
Sign up for alerts or multi-factor authentication for extra security
If you've fallen for a scam on Zelle or another payment app, Breyault recommends reporting scammers.
"People don't like to admit that they've been a victim of these scams because they're often blamed for it. They often blame themselves," notes Breyault. "While reporting it may not result in you getting your money back, what it does is help law enforcement, identify trends, and help protect other consumers."
It's recommended to report your scam to take the following steps:
Contact your bank
The first thing you can do upon realizing that you've been in a scam is call your bank or credit union. Your financial institution can investigate the situation further and freeze bank accounts if you've been hacked. You may also request that the money be returned. Although, it's unlikely you'll get your money back.
"They might at least pass the information on, which hopefully would trigger the receiving bank into looking into it," says Saunders.
Report to law enforcement
After contacting your bank, you can file a police report on the scammer. In most circumstances, there will be a division or phone hotline dedicated to reporting fraud.
Law enforcement can also report this information to your state attorney general. The state attorney general can review your report to identify illegal activity.
You may refer to the following government agencies to file additional reports or learn more about your rights:
Consumer Financial Protection Bureau: The Consumer Financial Protection Bureau has educational resources on many topics involving scams. For example, you can learn about elder financial exploitation and phishing.
Federal Trade Commission: You could file a report with the Federal Trade Commission. Reports are shared with 3,000 law enforcers throughout the US.
FBI Internet Crime Complaint Center: The FBI Internet Crime Complaint Center looks into all online crimes. You may file a complaint through the center if you or someone you know has fallen for an online scam involving certain types of transactions.
PERSONAL FINANCE How to get overdraft fees refunded at different banks
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PERSONAL FINANCE You may dispute a bank charge online or by phone, but you might not get a refund on some bank fees
More: Zelle Scams Personal Finance Insider PFI-XAMP | 2022-06-10T18:45:12Z | www.businessinsider.com | Zelle Scams: Definition, How to Protect Yourself From Scammers | https://www.businessinsider.com/personal-finance/zelle-scams | https://www.businessinsider.com/personal-finance/zelle-scams |
Apple's next generation of CarPlay is coming in late 2023 — here's what to expect, plus which cars will support the update
Apple's CarPlay with iOS 16 spread across an entire car's dashboard.
The new Apple CarPlay in iOS 16 will expand into your car's infotainment screens.
You'll be able to customize the style and layout of your car's dashboard displays.
The new CarPlay will be available in cars "late next year" from several car manufacturers.
Apple announced a new version of CarPlay that will be included with iOS 16 when that update is released in the fall, and it will bring an unprecedented level of design and customization to digital dashboards later in 2023.
Since 2014, CarPlay has been an extension of your iPhone to your car's infotainment screen for navigation, playing audio, and making calls or sending texts — all with your voice.
The new CarPlay, while relatively normal at first in 2022, will go well beyond this by expanding into the rest of your car's dashboard screens, essentially putting an Apple skin over almost all of the controls and gauges by the end of 2023.
The new CarPlay will take over your dashboard in late 2023.
These CarPlay updates coming will include navigation upgrades.
For cars with dashboard displays rather than dashboards with analog gauges, the new CarPlay will read and display real-time data, like the speed, RPM, tachometer, fuel, mileage, coolant temperature, oil pressure, and trip distances. We even saw gauges like torque and power (horsepower) shown as options by Apple.
Apple also said that you'll be able to customize the design of your dashboard with different themes, styles, and layouts. You'll also be able to add widgets from your iPhone, like navigation, notifications, weather, smart home device control (like a garage door), calendars, and weather to both your car's dashboard and infotainment screen.
The numbers and dials almost look like the Apple Watch's interface here.
CarPlay controls are also expanding into other aspects of your car outside of entertainment, like climate control and the radio.
Which cars will support the new CarPlay?
Apple's new CarPlay will let you customize just about everything with your car's dashboard.
Apple said that the new CarPlay will become available in cars "late next year," which is to say 2024 model years for many car manufacturers.
As for the car manufacturers that will support the new CarPlay in late 2023, Apple has announced the following partners:
Polestar (new addition)
More: IP Tech Smartphones Apple iPhone | 2022-06-10T19:01:41Z | www.businessinsider.com | Apple CarPlay in iOS 16: Which Cars Will Support It? | https://www.businessinsider.com/guides/tech/apple-car-play-ios-16-car-manufacturers-features | https://www.businessinsider.com/guides/tech/apple-car-play-ios-16-car-manufacturers-features |
UFC 275 features a pair of title fights on June 11 — here's how to watch Teixeira vs. Prochazka
Glover Teixeira (yellow trunks) strikes Anthony Smith (black trunks) during their May 2020 fight in Jacksonville, Florida.
Douglas P. DeFelice / Getty Images
UFC 275 will stream live on June 11 on ESPN+, with the main card starting at 10 p.m. ET for $75.
Lightweight heavyweight champion Glover Teixeira will defend his title against Jirí Procházka.
Taila Santos will challenge Valentina Shevchenko for the women's flyweight championship.
Glover Teixeira will defend the UFC Light Heavyweight Championship for the first time against former Rizin Light Heavyweight champion Jiri Prochazka in the main event of UFC 275, streaming live from Singapore on June 11.
Valentina Shevchenko will aim for her seventh successful defense of the women's flyweight championship against Taila Santos, while Chinese fighter Zhang Weili will fight Joanna Jedrzejczyk in a highly touted rematch.
The main event of UFC 275 will be streamed live via ESPN+ at 10 p.m. ET on June 11. The event is separated into three portions: the early prelims, the prelims, and the main card.
The early prelims start at 5:30 p.m. ET and are only available to UFC Fight Pass subscribers. The prelims will begin at 8 p.m. ET on ESPN+ and the ESPN2 cable channel. The main card is scheduled for 10 p.m. ET and is an ESPN+ exclusive, pay-per-view event.
The heart of UFC 275 is a pay-per view event, so you'll need to pay a one-time fee of $75 to watch, as well as sign up for an ESPN+ subscription. An ESPN+ membership costs $7 a month or $70 a year.
You can access the ESPN+ app on all major mobile and streaming devices, including Amazon Fire, Apple TV, Android, Chromecast, PS4, Xbox One, Roku, Samsung Smart TVs, and more.
How to save on the UFC 275 pay-per-view price
If you plan on signing up for ESPN+ to watch UFC 275, you can take advantage of a special discounted package to watch the next UFC pay-per-view.
New subscribers can purchase a year-long ESPN+ membership with access to UFC 275 included for a total of $99.98. That's more than 30% off the regular combined price of an annual plan and a PPV match. Following your first year of service, ESPN+ will then renew for the regular annual price of $70.
Bundle the next UFC PPV with an ESPN+ Annual Plan to more than 30%
Here's the fight card for UFC 275: Teixeira vs Procházka
Early Prelims — 7 p.m. ET, 4 p.m. PT on UFC Fight Pass
Ramona Pascual versus Joselyne Edwards [Women's featherweight]
Liang Na versus Silvana Gomez Juarez [Women's straw weight]
Kyung Ho Kang versus Gatgerel Danaa [Bantamweight]
Prelims — 8 p.m. ET, 5 p.m. PT on ESPN+ and ESPN
Andre Fialho versus Jake Matthews [Welterweight]
Maheshate versus Steve Garcia [Lightweight]
Seungwoo Choi versus Josh Culibao [Featherweight]
Brendan Allen versus Jacob Malkoun [Middleweight]
Main Card — 10 p.m. ET, 7 p.m. PT on ESPN+
Jack Della Maddalena versus Ramazan Emeev [Welterweight]
Rogerio Bontorin versus Manel Kape [Flyweight]
Zhang Weili versus Joanna Jedrzejczyk [Women's strawweight]
Valentina Shevchenko versus Taila Santos [Women's flyweight title fight]
Glover Teixeira versus Jirí Procházka [Light heavyweight title fight]
More: UFC UFC 275 ESPN Streaming | 2022-06-10T21:48:03Z | www.businessinsider.com | How to Watch UFC 275 Teixeira-Vs-Prochazka: Live Stream, Fight Card | https://www.businessinsider.com/guides/streaming/how-to-watch-ufc-275-teixeira-vs-prochazka-2022-6 | https://www.businessinsider.com/guides/streaming/how-to-watch-ufc-275-teixeira-vs-prochazka-2022-6 |
What is mortgage fraud?
How to report mortgage fraud
Mortgage fraud can involve lying on a mortgage application or scamming distressed homeowners. Here's how to avoid and report it
Mortgage fraud falls into two categories: fraud for housing and fraud for profit
Stewart Cohen/Getty Images
Mortgage fraud is when information is falsified or withheld during the application process to manipulate the loan's terms or a bank's decision to approve it.
Both borrowers and homeowners can commit mortgage fraud — or they can be victims of it.
Scams targeting homeowners facing foreclosure are some of the most common types of mortgage fraud.
Mortgage fraud is a serious offense, and it's one that borrowers and homeowners can both commit and be victims of.
When fraud is committed by mortgage borrowers, it's often because they wanted to buy a home but believe their finances would prevent them from getting approval. Things like lying on your mortgage application or misrepresenting your income are considered mortgage fraud and come with serious legal repercussions.
But borrowers and homeowners can also be victims of fraudsters looking to profit off of individuals going through a confusing or stressful process. Homeowners who are behind on their mortgage payments or are facing foreclosure are especially vulnerable, as some of the most common mortgage fraud schemes target distressed homeowners.
Mortgage fraud involves providing false or deceptive information to a lender in order to obtain mortgage approval. The FBI defines mortgage fraud as "a lie that influences a bank's decision." Scams that target homeowners facing foreclosure also fit the FBI's definition of mortgage fraud.
How is mortgage fraud detected?
With rising mortgage rates and high home prices, buying a home has become less affordable. "Historically, fraud becomes a bigger issue for the mortgage industry during times of strong or weak mortgage application activity," says Nick Larson, senior director of strategy and business development at LexisNexis Risk Solutions. "This can tempt consumers to falsify income, liabilities, and occupancy in order to improve the chances of securing a higher-dollar mortgage."
Financial institutions monitor for signs of fraudulent activity by carefully verifying all the information they receive from applicants.
Stricter underwriting processes and advances in technology have made it more difficult for loan applicants to get away with submitting false information. For example, mortgage lenders typically verify the information you provide about your income by requesting your tax transcript directly from the IRS. Some lenders also have the ability to pull information about your assets directly from your bank with your permission.
Lenders will also look for suspicious activity related to the specific transaction. For example, if you're buying a house to be used as your primary residence that's several hours away from where you work, and you're not a remote worker, that can be a red flag. Or if a home appraises for a significantly larger amount than what other similar homes in the area are valued at, that would call for further investigation.
But fraud can still be difficult for lenders and law enforcement agencies to detect. Part of the reason for this is it's relatively rare — in the second quarter of 2020, only 0.61% of mortgage applications contained fraud, according to CoreLogic.
Most of these instances involved borrowers misrepresenting their finances on their application so they could purchase a home. Larger schemes are more rare, but they can cost financial institutions more money.
Types of mortgage fraud
Mortgage fraud falls into two categories: fraud for profit and fraud for housing.
Fraud for profit
This type of mortgage fraud is often committed by people who work in the mortgage industry, such as loan officers, appraisers, or real estate attorneys. The aim of scams that fall under this umbrella is to make money.
The FBI prioritizes investigating cases involving fraud for profit.
Fraud for housing
This type of mortgage fraud is typically committed by borrowers. Fraud for housing, as the name suggests, involves providing false information to mortgage lenders in order to buy a house. An example of fraud for housing is inflating your income on your mortgage application with the goal of being able to buy a home for a larger amount than you'd typically qualify for.
Examples of mortgage fraud
Mortgage fraud typically falls into one of the two categories of fraud listed above, but there are countless different ways that fraud can be committed. Here are some of the most common schemes that consumers should be on the lookout for.
Foreclosure scams
The foreclosure process can be stressful, confusing, and scary, which makes those going through it a prime target for bad actors. Fraudsters may offer to assist the homeowner through the process, charging large fees to negotiate loan modifications with the homeowner's lender or servicer. Or, they might offer a path out of foreclosure by having the homeowner "temporarily" transfer the deed to the property to them. Then, they may sell the property or have the homeowner pay them rent while letting the property go into foreclosure.
Equity skimming
In this scheme, an investor has a "straw buyer," which is a loan applicant working on behalf of someone else, to get a mortgage to purchase a property. Once the property is purchased, the straw buyer uses a quit claim deed to give ownership to the investor. The investor then rents out the property for profit while failing to make payments on the mortgage. Eventually, the property is foreclosed on.
Property flipping
Property flipping, as most people understand it, isn't illegal. But illegal property flipping happens when an individual purchases a home, an appraiser artificially inflates the value of that home, and then it's immediately resold for a profit.
Occupancy fraud
Borrowers typically get lower interest rates and can make lower down payments on properties they intend to live in as their primary residences. If an individual intends to use a home as a second home or investment property but tells their lender they'll be using it as their first home, they've committed occupancy fraud.
Appraisal fraud
Appraisal fraud occurs when an appraiser doesn't value a property according to its actual market value. Because lenders won't lend more than what an appraisal says a home is worth, appraisals may be artificially inflated so that the market value matches the list price. Unscrupulous appraisers can also artificially lower the market value of a home so that the purchaser can buy the home at a lower price and then turn around and sell it for a profit.
There are a few different entities you can report suspected mortgage fraud to, according to the Department of Justice.
To make a report with the FBI, contact your nearest field office or call 1-800-225-5324. You can also make a report online.
The Department of Housing and Urban Development accepts tips via its hotline. Call 1-800-347-3735.
If you believe you're being targeted by a foreclosure-related scam, you can reach out to the Homeownership Preservation Foundation's HOPE Hotline at 1-888-995-HOPE (4673).
The Federal Trade Commission also has a website where you can report fraud.
How to protect yourself from mortgage fraud
Homeowners who are behind on their payments and are at risk of foreclosure need to be especially vigilant, as they're more likely to be targets of mortgage fraud.
"Don't engage unsolicited businesses, meaning anybody that you haven't reached out to first," Angel Hernandez, vice president of Industry and Regulatory Affairs at Stavvy, says.
If a company advertises help with loan modifications or loss mitigation, check with your lender or servicer first to find out if that company is reputable.
You can ensure you're working with reputable companies by using a HUD-approved housing counselor. These counselors offer free or low-cost advice. If you're approached by a company that charges large fees to help you, they likely aren't reputable.
To find a HUD-approved housing counselor, you can search online or call 1-800-569-4287.
You can also avoid scams by working proactively with your mortgage lender or servicer. Homeowners can often be afraid of talking to their lender when they're behind on payments, but the lender is often best situated to help you avoid a loss.
Hernandez also says that although borrowers are often hesitant to reach out to them, lenders and servicers want to help their borrowers resolve delinquencies. "A success for the servicer is directly tied to the success of the homeowners that they are serving," Hernandez says.
PERSONAL FINANCE Wire fraud is any electronic communication for the purpose of fraudulent activity
More: Mortgages Mortgage Fraud Foreclosure Foreclosure Rescue Scams | 2022-06-10T21:48:33Z | www.businessinsider.com | What Is Mortgage Fraud? | https://www.businessinsider.com/personal-finance/mortgage-fraud | https://www.businessinsider.com/personal-finance/mortgage-fraud |
Is TradeZero right for you?
TradeZero vs. Zacks Trade
TradeZero vs. TradeStation
Ways to invest with TradeZero
TradeZero: Is it trustworthy?
TradeZero — Frequently asked questions (FAQ)
TradeZero review: Actively trade stocks, ETFs, and options for free
TradeZero offers free online trading, direct order routing, short selling, and more.
TradeZero; Rachel Mendelson/Insider
Bottom line: TradeZero is best for day traders or active traders who want to utilize a variety of tools and software when exchanging stocks, ETFs, and options. The brokerage is a particularly suitable option for short sellers, since its locater service helps users find ideal stocks for shorting.
TradeZero
$0.003 per share to $7.95 per trade for paid orders; $59/month ZeroWeb and ZeroPro
Stocks, ETFs, and options
Free stock, ETF, and options trading available
Locator service for traders looking to short stocks
Day traders can receive up to 6 to 1 leverage; no pattern day restrictions
Four different trading platforms
Limited investment selection
Limited account funding options; only accepts bank wires or ach transfers
Promotion: Earn up to $200 for each referral you make
TradeZero is an online brokerage offering a vast collection of tools and platforms for active traders and day traders both in the US and abroad. The brokerage primarily offers stocks, ETFs, and options, and it has four different platforms — Trade Pro, Trade Web, Trade Free, and Trade Mobile — that users can take advantage of.
In addition, it offers both commission-free trading and short selling tools, and advanced users might appreciate its direct order routing features and premium services.
Stocks and ETFs: $0.01 per share if shares greater than $1 or 1% of trade volume if investments less than $1; options: $1 for first contract and $0.75 per additional; See complete fee schedule here
Stocks, ETFs, options, mutual funds, and bonds
Open account Open an account
If you're an experienced active or day trader, TradeZero and Zacks Trade are both strong choices. TradeZero, however, is the better choice for day traders who want access to features like direct order routing and short selling locators.
Zacks Trade is also a good choice for active traders, but it offers fewer platforms than TradeZero. However, it has a leg up on TradeZero when it comes to its investment selection. It offers both a wider range of investment choices and account types.
$0 ($2,000 for margin trading; $500 for an equities account on the per-share commission plan; $500 for futures on tiered commission plan)
0%($0.006- $0.01/trade per-share commission plans; $0.0002 per share unbundled accounts; $0.005/share if trades above 10,000 for TS Go and TS Select; 0.50 - $1.50 options and futures contracts)
Stocks, ETFs, options, futures, futures options, mutual funds, cryptocurrencies, and IPOs
TradeZero and TradeStation are both great options for advanced traders and DIY traders who want to rely on state-of-the-art software and tools while exchanging securities.
The fees differ between the platforms, though. Plus, TradeStation has a wider offering of investments. The platform lets you exchange stocks, ETFs, options, futures, futures options, mutual funds, cryptocurrencies, and IPOs. TradeZero, on the other hand, only allows for stocks, ETFs, and options.
However, TradeZero offers more trading platforms, and it even allows users with at least $30,000 to route orders on their own.
TradeZero offers investing for both US and international clients. US clients can invest through TradeZero America Inc., while international clients will have access to TradeZero International. TradeZero America offers four different platforms: Trade Pro, Trade Web, Trade Free, and Trade Mobile. The ZeroPro and ZeroWeb platforms cost $59 per month, but ZeroFree and ZeroMobile are both free.
One of the features that distinguishes TradeZero is its TZ locator. This tool helps traders source stock shares for shorting, making it an ideal resource for short sellers. With short selling, traders borrow securities and sell them to other investors at market value, with the ultimate hope that they can buy back the securities at a lower price than they originally borrowed them at. Note, however, that the platform doesn't allow users to short stocks below $1.
When it comes to costs, the fees you incur (if any at all) while trading depend largely on the exchange and order types you use. For instance, you'll be able to get free online stock trades if: (a) the stock trades on the NYSE, Nasdaq, or AMEX exchanges and is greater than $1, (b) the order you place is a market or limit order, and (c) you trade between 7 a.m. and 8 p.m. EST.
When it comes to options trading, you'll be responsible for the following fees:
Per contract: $0.25
Options Clearing Corp. (OCC) fee: $0.02 per contract; $55 cap
Options Regulatory (ORF) fee: $0.02135
Options Exercise or Assignment: $0.00
Though we've mentioned the rules for getting access to free online stock trades, you'll incur charges for stock and options trading if you trade after hours (4 a.m. - 7 a.m.), exchange equities that are less than $1 each, or trade OTC/pink sheets. Paid orders range from $0.003 per share to $7.95 per trade (see more on the differences between free orders and paid orders here).
Direct routing
With direct routing, you have the power of choosing where your orders are routed and executed. With many popular online brokerages, investors aren't able to make this choice. The brokerages determine where the orders are routed, and many accept payment for order flow (PFOF) in return.
TradeZero lets you direct your order routes from 4 a.m. to 8p.m. EST. Plus, you may be eligible for rebates, depending on the order's execution (see more here).
You'll need at least $30,000 in your account to utilize direct routing.
TradeZero Platinum
Investors with $50,000 or more in their accounts can utilize this premium service. It offers the following perks:
Free Pro trading subscription: Platinum users also get automatic access to the Trade Pro platform for free. This package additionally includes ZeroPro, ZeroWeb, and ZeroMobile.
Discounted locates: Investors receive a 7.5% discount on published locate prices (or stocks available for shorting).
Personal account liason: TradeZero pairs you with a Series 7 Registered Representative to assist you with all investing-related matters.
Priority feature requests: If TradeZero doesn't have all of the features you're in search of, you can actually put in feature requests with its technology team. The platform says it gives Platinum users priority access to beta releases of software and upcoming features.
Both TradeZero Platinum and the platform's other services are all supported with 24/7 customer service support. TradeZero offers phone support (from Monday through Friday) and 24/7 live chat.
TradeZero doesn't have a BBB profile at this time. The Better Business Bureau rates companies based off how well it believes the businesses interact with clients.
Its ratings also consider type of business, time in business, customer complaint history, licensing and government actions, and advertising issues. But the bureau also assures its users that ratings don't guarantee reliability or performance. Therefore, it's equally important to do your own research before setting up an account.
In 2022, however, the SEC charged TradeZero America Inc. and its co-founder, Daniel Pipitone, with misleading customers by saying they didn't restrict meme stock purchases when they had, in fact, done so, according to an SEC press release. The SEC's report claims that, in January 2021, TradeZero halted trading on three popular "meme stocks" for 10 minutes.
During early 2021 several other online brokers also employed trading restrictions on highly volatile hot stocks. TradeZero neither confirmed nor denied the allegations. TradeZero agreed to a cease-and-desist order, $100,000 penalty, and $250,000 penalty for Pipitone. It also agreed to hire an independent compliance consultant.
What is the minimum to invest in TradeZero?
You'll need at least $2,500 to set up an account with TradeZero. Plus, you can only maintain your access to the platform as long as your account balance doesn't fall below $250.
Is TradeZero a good broker?
This depends on what you value in an investment platform. TradeZero offers several notable perks, including stock and options trading, multiple trading platforms, direct routing features, 24/customer support, premium account options, and much more.
Plus, you can choose between free and paid orders, and the platform allows for extended hours trading (i.e.. you can trade from 4 a.m. -8 p.m EST).
Can US citizens use TradeZero?
Yes. US citizens can access TradeZero through its US website, while international traders can take advantage of the TradeZero International website.
Stocks: Stocks represent shares, or portions, of ownership within public companies (you can also purchase private stocks/equity but these are usually offered on an exclusive basis). These investments are available through online brokerages, robo-advisors, broker-dealers, and other investment platforms.
Market order: These orders are for traders who want to buy a security immediately. Your order will be executed, but it may be done at a higher or lower price than originally anticipated.
Limit order: Limit orders let you set the price at which you'd like to purchase a security. Once you set the limit, the order will only execute at that price or better.
Options: With options, you can buy or sell a certain investment at a set price within a specific timeline. All online brokerages don't charge extra for options contracts (e.g., Robinhood charges $0 and TradeZero also offers a $0 contract fee option), but you'll typically pay between $0.50 and $0.65 per contract.
PERSONAL FINANCE What is a limit order?
PERSONAL FINANCE Stock trading: How to get started for beginners
PERSONAL FINANCE Market order vs. limit order: What's the difference?
More: TradeZero Investing Stocks Personal Finance Insider | 2022-06-10T21:48:39Z | www.businessinsider.com | TradeZero Review: Pros, Cons, and Who Should Set up an Account | https://www.businessinsider.com/personal-finance/tradezero-review | https://www.businessinsider.com/personal-finance/tradezero-review |
Fagundes charged Adora Perez and Chelsea Becker with murder, claiming they caused their stillbirths.
Fagundes lost his seat as Kings County DA to challenger Sarah Hacker by at least 15% of the vote, ABC30 reported.
"Those two cases, they're a symptom of the disease," Hacker, the Hanford lawyer who beat Fagundes in the primary election, told The San Francisco Chronicle. "And the disease that has infected our criminal justice system here in Kings County is preferential treatment."
"The loss of a pregnancy at any stage is a physically and emotionally traumatic experience that should not be exacerbated by the threat of being charged with murder," Bonta said in the statement. "The charges against Ms. Becker and Ms. Perez were not consistent with the law, and this misuse of section 187 should not be repeated. With reproductive rights under attack in this country, it is important that we make it clear: Here in California, we do not criminalize the loss of a pregnancy."
More: Abortion Abortion Ban Stillbirth Miscarriage
Chelsea Becker
Adora Perez | 2022-06-11T03:55:19Z | www.businessinsider.com | California DA Who Prosecuted Women After Stillbirths Ousted in Primary | https://www.businessinsider.com/california-da-who-prosecuted-women-after-stillbirths-ousted-in-primary-2022-6 | https://www.businessinsider.com/california-da-who-prosecuted-women-after-stillbirths-ousted-in-primary-2022-6 |
Popeyes in Chelmsford, east of London, opens on Saturday.
US fast food chain Popeyes opens its first full UK outlet in Chelmsford this weekend.
Its UK boss, Tom Crowley, says it plans to open hundreds of UK sites in the coming years.
The next places to get a Popeyes in Britain include Romford and Ealing in London, and Reading.
US fast food chain Popeyes is opening its first full outlet in the UK this weekend in Chelmsford, east of London.
The chain, one of the main players in the US fried chicken sandwich wars two years ago, plans to expand rapidly in Britain, adding to its 3,500 stores around the world.
Founded in New Orleans 50 years ago, Popeyes is famous for its 12-hour marinated fried chicken. Fans queued for hours late last year when it opened a counter in Westfield's shopping mall in Stratford, east London, MyLondon reported.
The CEO of Popeyes UK, Tom Crowley, says the fried chicken market remains underdeveloped in the UK despite the plethora of chicken shops.
The Spicy Chicken Sandwich Deluxe is one of Popeyes' core menu items.
Backed by its owner Restaurant Brands International, which also controls Burger King and Tim Hortons in the UK, Crowley told Insider that Popeyes was the "right brand at the right time."
The Stratford outlet quickly became the chain's most profitable financially globally, signalling strong demand for its products from British consumers.
Popeyes will soon open another eight restaurants in the UK. They will be in Romford, east London; Ealing Broadway in the capital's west; the Metrocentre mall in Gateshead; and Nottingham, Oxford, Cambridge, Brighton, and Reading.
Crowley said finding the right locations was important, adding: "We're ambitious. We can see the opportunity, but we do take it one restaurant at a time."
The chain offers table service at its restaurants.
Crowley said Popeyes regards drive-through outlets as a huge opportunity in the UK market.
Drive-throughs are a crucial part of its business in the US and they will be central to its British expansion along with delivery services, he said. The company aims to have 350 UK restaurants by 2031.
Despite soaring inflation, Crowley said Popeyes aimed to keep prices in check by cutting overheads and not reducing quality.
Each restaurant will continue to make every menu item, such as its signature "shatter crunch" chicken breading and fresh pickles.
"We're particularly good at being creative and nimble to find a way. We've got through the pandemic. Now, we'll get through this," Crowley told Insider.
More: Fast Food Popeyes Popeyes chicken sandwich Retail
Fast Food Industry
Chicken Sandwich Wars | 2022-06-11T08:29:57Z | www.businessinsider.com | Popeyes Opens Its First Restaurant in Britain This Weekend | https://www.businessinsider.com/popeyes-to-open-eight-more-locations-after-launching-this-weekend-2022-6 | https://www.businessinsider.com/popeyes-to-open-eight-more-locations-after-launching-this-weekend-2022-6 |
Ken Shinoda, a DoubleLine portfolio manager
Ken Shinoda
Fixed income manager Ken Shinoda got his start in investing during the 2000s housing bubble.
Now he works at the $122 billion bond shop founded by "the bond king" Jeffrey Gundlach.
He explains why home sellers are going to cut prices and why it won't trigger a market collapse.
Investing in bonds can often seem dull in comparison to its more glamorous counterpart, equities.
"I joke that sometimes I wish I was an equities investor because it seems like a much more hopeful place to be," said Ken Shinoda, a portfolio manager at DoubleLine. "You can always make a case to buy equities all the time, depending on how you spin it. But in the fixed income world, it's all about protecting the downside."
An understanding of debt market dynamics, whether its corporate or mortgages, can also help unlock answers to some of investors' most pressing questions about the economy and the investing landscape.
As a real estate debt investor, Shinoda has always had his "fingers on the pulse of the housing market" having started his career in the early 2000s, during the housing bubble, to joining the legendary $122 billion bond fund DoubleLine from inception.
"My training grounds really were the global financial crisis," Shinoda said. He now runs DoubleLine's mortgage opportunities private funds and co-manages the total return portfolio among others.
This role places him in a prime position to examine one of the hottest questions on real estate investors and homeowners minds: Is the housing price bubble about to burst?
Home prices are going to start to slow
The US housing market is experiencing a boom in demand that easily rivals the early 2000s. The average home price is up 15% year-over-year, with more than 58% homes selling above list price in April, according to data from RedFin.
The era of easy monetary policy, combined with the changing working and living dynamics enabled by the pandemic, created a sellers' market in the US.
Now, with interest rates on the rise and the 30-year fixed mortgage rate above 5%, it's making housing affordability difficult. The National Association of Realtors monthly affordability index is at its lowest level in years.
"Buyers see that properties are not moving as quickly, so they take a step back expecting prices to go lower," Shinoda said. "Sellers are going to have to start cutting prices."
Already one in five sellers have had to drop their offering price, according to recent data from RedFin.
But this isn't too concerning to Shinoda, because these price drops are coming off the peak of a major rally. This is just a normalization caused by higher rates, he said.
It doesn't mean a nationwide collapse
"I just don't see the setup for some big nationwide decline," Shinoda said.
Housing supply and demand have played a huge role in the recent price surge and that dynamic hasn't changed.
Several years ago, Shinoda would tell investors that the reason they should be exposed to mortgage credit is because of the all-time-lows in inventory. Now those inventory levels are even worse.
The number of homes available for sale are down 8% year-over-year, according to RedFin.
"I think some pockets are definitely going to weaken but on a nationwide basis, especially in the major metros," Shinoda said. "I think there's a lack of supply that is extremely supportive of home valuations."
Even during the financial crisis, price declines were regional. Nationwide the price decline was around 35%, but a city like Dallas was only down 12%, whereas Miami was down 70%, Shinoda said.
"Some places may even pull back by 10% in home prices," Shinoda said. "I mean, if you're up 40%, 50% over the last 18 months, if you go down 5% to 10%, it's not the end of the world unless you've just bought at the top."
Demand also remains strong with millennials just hitting peak home-buying age. "The millennials are the second-largest generation since the baby boomers," Shinoda said.
Another key difference between now and the 2000s housing bubble is the "supportive" rental picture.
In the 2000s, supply was incredibly high, so rents were cheap. Now that housing supply is so low, rents are just as high, if not higher, than monthly mortgage payments, he explained.
So, where to invest?
Taking into consideration this outlook, many of DoubeLine's portfolios are weighted heavily to residential non-government guaranteed mortgages.
Some pockets of commercial real estate are also "pretty safe", such as the industrial market.
"There's obviously a lot of demand for industrial multi-family because of everything we talked about lack of building, you can increase rents on an annual basis because inflation is going up," Shinoda said.
One of the best opportunities, however, is agency mortgages. They are the cheapest they've looked in 10 years since the Federal Reserve is no longer buying mortgage securities.
"You're seeing spreads that are, again, the widest that we've seen in 10 years," Shinoda said. "They're in some instances, close to the same spreads you can get in corporate bonds without any credit risk.
So if you are of the opinion that we are going into a recession as an investor you want to own something that's had some yield advantage relative to treasuries but also it's very defensive. The agency MBS market can provide you that today."
Shinoda is telling clients who have been underweight this type of mortgage to "take another hard look at it."
Real Estate Investing Recommendations
DoubleLine Capital
DoubleLine Funds
mortgage backed security
housing crash
Real Estate Crash | 2022-06-11T08:30:03Z | www.businessinsider.com | Real Estate Investing: Home Sellers Have to Cut Prices, Shinoda Says | https://www.businessinsider.com/real-estate-investing-housing-bubble-home-prices-doubleline-ken-shinoda-2022-6 | https://www.businessinsider.com/real-estate-investing-housing-bubble-home-prices-doubleline-ken-shinoda-2022-6 |
BlackRock bond chief Rick Rieder says he doesn't trust the rally in stocks — or predictions that the Fed is about to pause on rate hikes. Here's how he's trading an increasing complex market in his $2.6 trillion portfolio.
Rick Rieder is BlackRock's chief investment officer for bonds.
BlackRock fixed income chief Rick Rieder says investors shouldn't expect a "pause" in rate hikes.
He told Insider what he's buying in fixed income and why he doesn't trust the rally in stocks.
Rieder says the Fed will struggle to stop inflation, as Friday's elevated reading confirmed.
Stocks have started to bounce back from their April and May swoon as investors come to believe that the Fed will soon push pause on its plan to raise interest rates.
But BlackRock bond chief Rick Rieder told Insider that investors are getting ahead of themselves, and it's setting up even more turbulence for markets.
"Energy and food prices could still go higher from here. So I don't think there's enough data to suggest the Fed's going to pause," he said Wednesday. "The Fed's number one objective is to fight inflation, and what we've learned the last couple of months is inflation is stickier, high, and driven by food and energy, which are very hard for the Fed to bring down."
That was confirmed Friday after the Bureau of Labor Statistics said inflation hit a 41-year high in May. Prices were up 8.6% compared to a year ago. Bullish investors had hoped inflation was coming down from its peak in March, but Friday's report suggests that's not the case.
In turn, that means the Fed isn't likely to take a break from raising rates as investors had hoped — and it also indicates the economy could slow down further as rates go up. If the Fed does continue raising rates as expected, everyone will be watching the economy closely to see how much higher rates affect growth. The consequences for markets are huge.
"Uncertainty is as acute as I've seen it in a very long time," he said. "The Fed almost never tightens policy when growth is slowing, that's a very uncertain, unpredictable, volatile, illiquid, time for markets."
Rieder is responsible for $2.6 trillion in fixed income assets for BlackRock, and manages several of its mutual funds. His Total Return Fund just won a Lipper Award for the best core fund of the last 10 years. Many of his funds hold both bonds and stocks, and Rieder noted that while stocks suffer there may be opportunities in the bond market.
"I think there is better value in fixed income today than there is in the equity market, including places like munis, including quality assets in the front end of the yield curve. Things like investment grade credit, some securitized market munis. And I'd rather take risk there than take a lot of equity risk," he said.
Rieder also says he's holding a lot of cash in his portfolios compared to years past, but he's gradually buying some B-rated high yield bonds as well and allowing his interest rate exposure to rise.
"If you can garner 8% yields in high-yield today without going that far down credit quality, that's a more attractive asset class" than stocks, he said.
Rieder also said it's getting much more expensive for companies to finance their businesses or buy back stock, which diminishes both their upside and their appeal. It's a dramatic shift after years of cheap borrowing. He says that relative to corporate debt, stocks are as expensive as they've been in 15 years.
"Equities are mediocre at best," he said. "One of two things has to happen. Either rates and credit have to stabilize or equities have to cheapen up. And my sense is both will happen."
As jobs growth slows, he says, the Fed is going to have to choose between fighting that "sticky" inflation and causing a recession — possibly a severe one. He thinks the central bank will accept a higher level of inflation before it causes an economic crash.
"The amount of demand that the Fed would have to take off to reduce the prices of food or oil or shelter is not worth being too aggressive," he said. "You'd have to lose 2 to 4 million jobs. And when you have supply-driven inflation, the pain from losing that many jobs, particularly when the burden for people is higher food and energy costs, to cut that many jobs, in my mind doesn't doesn't make any sense."
More: Investing Stock Market stock market 2022
high yield investing | 2022-06-11T10:01:31Z | www.businessinsider.com | Stock Market Warning & Fixed Income Strategy: Rick Rieder, BlackRock | https://www.businessinsider.com/stock-market-investing-inflation-fixed-income-strategy-rick-rieder-blackrock-2022-6 | https://www.businessinsider.com/stock-market-investing-inflation-fixed-income-strategy-rick-rieder-blackrock-2022-6 |
Lewd ancient graffiti depicting a carved phallus suggests a 1,700 year-old Roman feud
Ancient graffiti depicting a penis and a crude Latin insult was found at Hadrian's Wall.
The Vindolanda Trust
Carved graffiti depicting a penis and a crude insult has been discovered near Hadrian's Wall.
The graffiti suggests a personal feud between two Romans over 1,700 years ago.
Along with the phallic symbol, a Latin insult calling someone a "shitter" was found carved into stone.
An ancient piece of graffiti depicting a penis has been discovered near Hadrian's Wall, northern England, suggesting a personal feud between two Romans.
The phallic carving, which dates back more than 1,700 years, was found in stone along with a crude insult in Latin that experts say roughly translates to "Secundinus, the shitter."
Dr Andrew Birley, the director of excavations and CEO of the Vindolanda Trust said that the inscription "raised our eyebrows."
"Its author clearly had a big problem with Secundinus and was confident enough to announce their thoughts publicly on a stone. I have no doubt that Secundinus would have been less than amused to see this when he was wandering around the site over 1,700 years ago," Birley said in a statement.
The stone, measuring 15 inches wide by 5 inches tall, was discovered by Dylan Herbert, a retired biochemist from South Wales who was volunteering on the excavations.
Dylan Herbert found the graffiti while volunteering on the excavations.
"It looked from the back like all the others, a very ordinary stone, but when I turned it over, I was startled to see some clear letters," Herbert said.
Although the Roman phallus was often seen as a good luck charm or symbol of fertility, experts said that in this case, the author had subverted it as a personal insult.
Along with the phallic image, the stone featured the words "Secvndinvs Cacor." Specialists in Roman epigraphy said the phrase was a mangled version of "Secundinus cacator," which translates to "Secundinus, the shitter."
Researchers said each letter had been "carefully carved," demonstrating the "depth of feeling held" by the author towards Secundinus.
The phallic carving is the 13th to be found at the Vindolanda site over years of extensive excavations.
More: Roman Graffiti UK Weekend News UK | 2022-06-11T11:28:10Z | www.businessinsider.com | England: Lewd Graffiti of a Carved Penis Suggests Ancient Roman Feud | https://www.businessinsider.com/ancient-graffiti-penis-phallus-feud-roman-2022-6 | https://www.businessinsider.com/ancient-graffiti-penis-phallus-feud-roman-2022-6 |
A typical real-estate cycle occurs in four phases: expansion, hyper supply, recession and recovery. This is the pattern that gave rise to the housing bubble of the mid-aughts, a time when a combination of cheap debt, predatory mortgage lending, and complex financial engineering led to a foreclosure crisis as well as a credit crisis among investors — and by 2008, a global recession.
In 2022, housing volatility isn't attributed to lax lending standards but instead an imbalance of housing inventory and demand that has driven affordability to new lows.
More: Millenial Home Prices Housing Market Homebuyers | 2022-06-11T11:28:40Z | www.businessinsider.com | Housing Crisis Means Home Prices Won't Come Down. Sorry, Millennials. | https://www.businessinsider.com/home-prices-wont-come-down-millennials-cant-afford-homeownership-2022-6 | https://www.businessinsider.com/home-prices-wont-come-down-millennials-cant-afford-homeownership-2022-6 |
Buy these 5 funds to cushion the blow of 40-year-high inflation and how the Fed's response upsets markets, says a macro strategist who explains why CPI may remain hot
As inflation continues to rise, investors still have limited safe havens.
Darren415/Getty Images
Darius Dale says inflation could remain high because of core services prices.
He estimates the Fed has a six-to-nine-month window of tightening before the economy breaks.
He recommends investors get liquid by holding cash and invest in assets that are uncorrelated.
May's Consumer Price Index (CPI), the measure of the average change in the prices of consumer goods and services, rose by 8.6% from a year earlier on Friday, the highest in 40 years. It clearly showed that the cost of living essentials such as food, rent, and gas are still on their way up.
Darius Dale, an advisor who specializes in macro risk management, says the real question about inflation should be around core inflation.
Right now, a decline in the CPI would mainly be driven by the decline in core goods inflation, which strips out volatile food and energy costs, he noted. This is to be expected. During lockdowns, stimulus spending flooded into products. But as people start getting back to pre-COVID routines, they're pivoting to spending on services. This change could keep inflation from declining, he added.
"Will we see enough of a continued disinflation in goods prices to keep this core CPI going lower in the rate-of-change terms, or will the continued acceleration in services prices, particularly core services prices, namely shelter prices, owners-equivalent rent, et cetera? Will that sort of wrestle the baton and start to really take over, driving the bus with respect to inflation," Dale said. "If it does, we're going to start to see inflation misbehave in the summer months."
One thing he knows about market dynamics is that change is the only constant. Market cycles, narratives, and policy reactions to different dynamics change. For Dale, what's important is that investors understand the variables that impact change so that they can make decisions in various environments. In 2021, he founded 42 Macro, a subscription-based research provider for market trends that helps investors navigate the macro environment.
It's still too early to determine how much economic growth is likely to slow down, he said. Right now, markets are still digesting the significant reduction in liquidity that was provided by the Federal Reserve and other central banks around the world.
As for how many more interest rate hikes the Fed has in store, that's a moot point, says Dale. The market is already pricing in a terminal Fed funds rate of around 3.5%. The real question should be, how much time do they have to do it?
For Dale, the answer depends on how quickly an economic growth slowdown materializes and begins to weigh on consumer prices and financial markets. He estimates the Fed has a six-to-nine-month window to continue tightening before things really start to break in the economy and financial markets.
Get liquid, get uncorrelated
If inflation isn't tamed, then the Fed will likely continue pulling more liquidity out of the market as it shrinks the size of its balance sheet and raises interest rates. This is an environment where your overall exposure to financial markets needs to be lower, he said.
In this type of environment, there's no real safe haven in financial markets. He said that this environment has been proven to be very negative even for bonds. In fact, he added that 2022 is the worst year in recorded history for the bond market in price terms.
The number one takeaway is you need more cash in your portfolio at times like this, he said. You may take a slight hit due to inflation, but it's a lot less than losing 20% in the bond market or 30% in the stock market, he pointed out.
Crypto investors may have assumed they had their bases covered by buying up different types of tokens with various utilities. But as the Fed reduces liquidity in the market, these tokens will plunge.
"This is the kind of environment where you need to understand the risk you're taking in your portfolio," Dale said. "You can consider yourself diversified by having 10, 20 different exposures, but if they're all highly correlated and they're all reliant upon the same series of catalysts to help you make money on those exposures, then you're not actually diversified."
When growth is slowing and liquidity is being drained, investors dump high-risk assets. If you have exposure to various types of cryptos and then you're long on US tech stocks such as Meta, Apple, and Nvidia, at first glance, these asset classes have very different fundamentals. Yet, these are all risk-on assets that will see the steepest plunges as investors sell, Dale said.
There are relative pockets of safety that may continue to go down in price but they're likely to decline by a substantially lower degree than riskier parts of the market, he added.
For example, the Invesco S&P 500 Low Volatility ETF (SPLV) is less sensitive to changes in the economic and liquidity environment than the Invesco S&P 500® High Beta ETF (SPHB), which has the highest sensitivity to market movements.
If you're the type of investor who has traditionally ridden high in tech types such as the Nasdaq, Invesco QQQ Trust Series 1 (QQQ), or the Technology Select Sector SPDR Fund (XLK), consider rotating some of that into energy, utilities, or healthcare.
A few good pivots would be the Energy Select Sector SPDR Fund (XLE), Utilities Select Sector SPDR Fund (XLU), Consumer Staples Select Sector SPDR Fund (XLP), and Health Care Select Sector SPDR Fund (XLV), Dale said.
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risk-on assets | 2022-06-11T11:28:52Z | www.businessinsider.com | Inflation at 40-Year High Will Stay Hot. Buy These 5 ETFs: Strategist | https://www.businessinsider.com/inflation-cpi-investing-etfs-buy-fed-tightening-rate-hikes-2022-6 | https://www.businessinsider.com/inflation-cpi-investing-etfs-buy-fed-tightening-rate-hikes-2022-6 |
History says to prepare for a 'fast and furious' market rally, according to the top US equity strategist at RBC Capital Markets — and 4 types of stocks will benefit most, including an overlooked group that's the cheapest it's been since the tech bubble
Stocks might catch investors off guard and rally, according to RBC Capital Markets.
Stocks may be bottoming out if a recession doesn't come, said Lori Calvasina of RBC Capital Markets.
Prepare for slower growth — but not a downturn — as consumer spending falls and inflation rises.
Here are four ways to bet on a stock market rally, including one group that's shockingly cheap.
Bulls have been on the retreat in the first half of 2022 as stocks struggle to shake off concerns about slowing economic growth, stubbornly high inflation, and tightening financial conditions.
Market strategists like Lori Calvasina, the head of US equity strategy at RBC Capital Markets, have had to rethink their S&P 500 price targets this year, as the widely watched index has fallen nearly 20% to 3,900 year-to-date.
After trimming her year-end S&P 500 price objective from 5,050 in December to 4,860 in April and then again to 4,700 on June 6 as market conditions continued to shift, Calvasina is confident that this third target will be the charm — and that the worst of the stock market selloff is over.
"We don't think the rest of the year is going to be easy, but we do think if we can avoid recession , we've probably put in the lows," Calvasina said in a recent interview with Insider.
There's no guarantee that the US can avoid an economic downturn, Calvasina said, but she thinks there's about a 60% chance that there's no recession. Calvasina said she's bracing for "materially slower growth" anyway, especially as companies start to resort to layoffs and hiring freezes.
The good news is that Calvasina believes that many of the issues the economy faces are already priced into stocks. That pessimism may soon be a contrarian buy signal.
"Sentiment does look pretty washed out," Calvasina said. "And after you hit that wash-out level on sentiment, you do tend to see pretty fast and furious rebounds in the market."
Although predicting where stocks are heading next is an inexact science, it's also far more than guesswork. Calvasina said that she based her S&P 500 price target on 11 different models that each use information like economic growth, investor sentiment, and stock valuations to generate a fair value estimate for the index. Those models imply that the S&P 500 has 10% to 25% upside from where it stands today.
Interestingly, stocks have typically risen 4% to 6% in the year prior to a weaker-growth environment, Calvasina said, though she added that selloffs of 14% to 20% during growth downturns have also materialized. But the strategy head also said that US stocks tended to return to their pre-crisis peaks in four or five months and rise 25% within seven months of bottoming.
If history repeats itself, then the S&P 500 may be nearing its low now after falling 18% since late December, and should theoretically return to its late 2021 peak by the middle of October or November. And a 25% increase for the 500-component index would bring it to 4,875 by the middle of next January.
4 ways to make a contrarian bet on a market rally
Though there are several reasons to be cautious about stocks, including the Consumer Price Index (CPI) accelerating to a 41-year high of 8.6% in May, Calvasina is betting that there's plenty of pessimism already priced in. That's why, in her view, it's time for investors to unload defensive stocks in sectors like consumer staples that are getting pricey on a valuation basis.
Four types of stocks should benefit as the economy continues to grow, albeit at a slower pace, Calvasina said: growth stocks, especially those in the technology sector, as well as more economically sensitive financials and small caps.
Growth stocks have largely fallen out of favor in 2022 as interest rates rise, but are worth considering because they tend to outperform when economic growth slows, Calvasina said.
"You typically see this fierce outperformance of value that happens heading into the first rate hike," Calvasina said. "Normally, we do see growth leadership take back over, and we think that's because usually when the Fed lifts off, it cools the economy."
The decline in growth stocks this year has made them more attractive on a relative growth basis, Calvasina said, adding that the trend is especially true for tech stocks.
"If you look at the tech part of the market, the valuation froth is out," Calvasina said. "If you look at the most popular hedge fund stocks, you're back to 2017, 2018-type P/E multiples and relative performance trends. So not a 'hold-your-nose-and-buy' situation at all."
Though value-oriented stocks may be losing their valuation advantage over their growth peers, Calvasina said that she's optimistic about beaten-down financials. No group of stocks was as hyped by Wall Street coming into 2022 as financials were, but the sector has been a bitter disappointment as the economy has slowed. Calvasina said the concerns are overblown.
"Financials has just a deeper valuation case," Calvasina said. "I think it was really punished on recession fears earlier in the year. And as those fade and people get more comfortable with the idea of slowing growth, I think they should do better."
Calvasina continued: "Our banks analyst thinks that if we get a couple 50 basis point hikes from the Fed and then they start to slow down to 25 or even take a pause, he describes that as 'nirvana' for the banks."
Finally, economically sensitive small caps are historically cheap, in Calvasina's view, and should mount a rebound if the team at RBC Capital Markets is correct that a recession isn't imminent.
"If you look at relative valuations, small is the cheapest we've seen versus large since the tech bubble," Calvasina said. "If you look at absolute valuations on the Russell 2000, you've got a clear-cut valuation case. The P/E multiple in the Russell 2000 is below pandemic lows — not necessarily right at the low end of its historical range, but really deeply in attractive territory, much more so than what we see in the big-cap space."
Investors can consider adding exposure to Calvasina's favorite groups of stocks through the following exchange-traded funds (ETFs) that Insider selected: the Vanguard Growth ETF (VUG), the Technology Select Sector SPDR Fund (XLK), the Vanguard Financials ETF (VFH), and the iShares Core S&P Small-Cap ETF (IJR).
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financials sector outlook | 2022-06-11T11:29:28Z | www.businessinsider.com | 4 Ways to Bet on a 'Fast and Furious' Stock Rally: RBC Capital Markets | https://www.businessinsider.com/stock-market-rally-recession-risk-economy-tech-bubble-cheap-valuations-2022-6 | https://www.businessinsider.com/stock-market-rally-recession-risk-economy-tech-bubble-cheap-valuations-2022-6 |
I visited Sam's Club to test out the scan-and-go feature that lets customers avoid checkout lines.
It was convenient and easy to use, and saved significant time checking out.
I wish Costco had a similar feature, and I'm tempted to become a Sam's Club member.
I'm a Costco member, but I recently visited Sam's Club for the first time to see how the two warehouse stores compare.
Though I had a good experience at Sam's Club, it still seemed to fall behind Costco in my experience.
Then, I heard from dozens of readers about their favorite Sam's Club feature that makes it stand out above Costco: scan-and-go.
To use it, I had to download the Sam's Club app, where I logged in with my new membership.
It's easy to find as one of the main tabs at the bottom of the app.
Sam's Club/Mary Meisenzahl/Insider
It works exactly as the name implies, according to the brief instructions in the app that advised me to "scan items as you add them to your cart."
The instructions seemed pretty hard to mess up, so I drove back to Sam's Club to try it out.
The feature only works when you're inside or near one of the store locations.
When you open the app inside Sam's Club, you can see receipts from past orders and select the scan-and-go feature.
You can also pull up your Sam's Club card within the app in case you need to scan it for anything, like at checkout.
I decided my first purchase had to be this mesh turtle pool float that caught my eye in a display near the entrance.
It felt basically like using self checkout, with the only difference being that the scanner was on my phone instead of attached to a kiosk.
It was actually much easier than typical self checkout, because my phone immediately recognized the barcode.
The turtle toy was immediately viewable in the app as part of my cart, where I had the option to remove it or scan more items.
I grabbed a few other items I needed, still using the app.
I tried different types of items, from sunscreen to salad to a block of parmesan cheese, and it was all equally easy to scan.
As I was shopping, I saw there were savings on certain items only available through scan-and-go.
Sure enough, the promised discount was reflected on the app.
I ended up saving $4 total on two different items, which felt like a nice bonus for using the feature.
When I was ready to pay, I just hit the button on the bottom of the page to checkout.
As soon as the transaction went through, the app gave me a QR code receipt that a Sam's worker scanned as I left the store to make sure I'd paid for my purchases.
It felt very weird and unnatural to just walk past the registers with my cart.
Sam's Club even says scan-and-go can be used to purchase alcohol, and the worker at the door will check your ID, though I didn't get to test this.
Avoiding the lines at checkout was definitely the most appealing part of using scan and go.
Costco always has long lines, but they're typically much worse on the weekends, which is when it's most convenient for me to go.
If Costco added this feature, I could easily save 15 minutes of waiting from each trip, on average.
For now I'm still a Costco member, because the closest Sam's Club is about an hour drive away.
If that wasn't the case, I think scan-and-go could convince me to become a Sam's Club shopper instead.
Sam's Club membership card.
Zhang Peng/LightRocket via Getty Images
More: Features Business Visual Features Costco Sam's Club
Grocery delivery apps | 2022-06-11T13:00:01Z | www.businessinsider.com | Sam's Club Scan-and-Go Delivers Convenient Checkout: Review, Photos | https://www.businessinsider.com/sams-club-scan-and-go-delivers-convenient-checkout-review-photos-2022-6 | https://www.businessinsider.com/sams-club-scan-and-go-delivers-convenient-checkout-review-photos-2022-6 |
Then-Pennsylvania Republican Senate Candidate Dave McCormick speaks during a rally at Bloomsburg Area High School in Bloomsburg, Pa., on May 16, 2022.
Pennsylvania Republicans want David McCormick to launch a 2024 Senate run, per Politico.
Last week, McCormick conceded to Dr. Oz amid the then-ongoing recount of the May GOP Senate primary.
He has not confirmed a 2024 campaign, but will soon travel across Pa. to meet with GOP leaders.
Last week, David McCormick conceded the Pennsylvania Republican primary for US Senate to Dr. Mehmet Oz in a hotly-contested race that became a proxy on the enduring power of former President Donald Trump in one of the nation's premier swing states.
McCormick — a Pennsylvania native and former hedge fund chief executive who moved back to the state from Connecticut to launch his Senate bid — impressed many GOP officials early-on with his business experience and alignment with conservative policies championed by party voters.
Now, many of those same Republicans are already asking McCormick to pursue a second Senate bid in 2024 against three-term Democratic Sen. Bob Casey Jr., the scion of a former conservative Democratic governor, according to Politico.
Despite McCormick coming up short in the May primary to Oz — the cardiothoracic surgeon and former talk show host — the initial vote tally was close enough that a recount was triggered by Pennsylvania law, as the margin of victory fell below 0.5 percent.
After the recount, Oz was deemed the official winner with 419,999 votes, while McCormick earned 419,048 votes — a difference of only 951 votes. Oz will now face Pennsylvania Lieutenant Governor John Fetterman, the Democratic Senate nominee.
But McCormick's supporters are already eyeing what will likely be another high-octane race in a year that could potentially feature a proxy rematch between President Joe Biden and Trump.
And McCormick himself is exploring the possibility of a 2024 Senate run, per Politico.
Casey has been a fixture in Pennsylvania politics for decades — serving as both the state's auditor and treasurer before defeating Republican Sen. Rick Santorum in a 2006 landslide — and has won all of his Senate races by comfortable margins.
Most recently, Casey was re-elected to a third term in 2018, beating then-Rep. Lou Barletta by 13 percentage points.
However, according to Politico, some Republicans feel that Casey — who has long enjoyed a reputation as a political moderate — has veered more to the left in recent years. They also sense that Biden's middling poll numbers will hurt the Democratic brand in the state.
And many Republicans feel that McCormick — a West Point graduate who served in the Gulf War — can appeal to a wide range of voters, from conservative-leaning blue-collar residents in western Pennsylvania to independents in suburban communities outside Philadelphia.
While Trump threw his support behind Oz in the primary and blasted McCormick as a "liberal Wall Street Republican" who didn't represent the Make America Great Again movement, GOP primary voters nearly selected him as their nominee anyway.
Rob Gleason, a former chairman of the Pennsylvania Republican Party, told Politico he would support McCormick jumping into the 2024 race.
"I would absolutely encourage Dave to run," he told the publication, noting that "he's got 100 percent name ID" and is "going to have the finances" to help run another campaign.
Gleason added: "He would clear the field. There'd be no primary."
Former associate White House counsel Jim Schultz, who served under Trump and was also McCormick's campaign chairman, told Politico that the 2022 campaign was "just the beginning" for the former executive.
"Dave is immensely popular and will be a force in GOP politics for years to come," he said. "For now, I know he is focused on bringing the party together to beat Fetterman in November."
McCormick will soon travel across the state to meet with Republican leaders, according to Politico.
In another move that keeps a future campaign in play, McCormick and his wife are looking to stay in Pennsylvania after years of living in Connecticut, per the report.
However, Casey spokesperson Natalie Adams in a statement to Politico dismissed the GOP speculation.
"Senator Casey is focused on improving the lives of Pennsylvanians and helping Democrats up and down the ballot win in 2022," she said. "While Republicans wring their hands about an election 2.5 years away, Senator Casey is going to keep building on his long record of delivering for Pennsylvania's working families in Washington."
More: david mccormick Dr. Oz Donald Trump Republican Party | 2022-06-11T16:06:21Z | www.businessinsider.com | Pa. GOP Want McCormick to Run Against Bob Casey in 2024: Report | https://www.businessinsider.com/mccormick-oz-casey-pennsylvania-republicans-2024-senate-campaign-2022-6 | https://www.businessinsider.com/mccormick-oz-casey-pennsylvania-republicans-2024-senate-campaign-2022-6 |
Neighbours wait for humanitarian aid in Bakhmut city in the Donetsk Oblast, Ukraine on June 10, 2022.
Diego Herrera Carcedo/Anadolu Agency via Getty Images
Russia may be using missiles that cause mass casualties in Ukraine, British officials said.
Russia is gaining ground in the eastern Donbas region.
UK officials say Russia is using these missiles because they are running short of modern ones.
Russia has most likely been launching heavy 1960s-era anti-ship missiles into Ukraine, which could cause mass casualties, Ukrainian and British officials have warned.
The UK Defense Ministry said the 5.5 ton Kh-22 missile was designed to destroy aircraft carriers using a nuclear warhead. The agency warned that using the missile in ground attacks "can cause severe collateral damage and casualties," because it's inaccurate. However, the agency did not specify where these missiles are being used.
The ministry added that it thinks Russia is relying on these missiles because it's running short of more precise modern missiles.
The development comes as Russian forces take over more land in the eastern Donbas region. CNN reported that Russia now controls most of Severodonetsk, in the Donbas region. Ukrainian and Russian troops are still engaged in heavy street fighting,
Russia has recently been seeing success in the eastern region of Ukraine. Russian forces invaded Ukraine in February but were met with fierce pushback. The current advancement is a reversal from the start of the war, but experts previously told Insider's Bill Bostock that the success is most likely due to Russia placing a large number of forces in a small area.
The advantage was temporary, experts had said. Since the start of the war, Ukraine has relied on financial support and military supplies from western countries. Officials are now asking foreign leaders for long-range rocket systems to counter Russia's attacks from a distance. | 2022-06-11T16:06:33Z | www.businessinsider.com | Russia Launching 1960s Era Anti-Ship Missiles Into Ukraine | https://www.businessinsider.com/russia-launching-1960s-era-anti-ship-missiles-into-ukraine-2022-6 | https://www.businessinsider.com/russia-launching-1960s-era-anti-ship-missiles-into-ukraine-2022-6 |
Seth Green was planning to use Bored Ape #8398 in a new TV series.
Seth Green has paid 165 Ether ($260,000) for the return of a Bored Ape NFT stolen last month.
The actor told BuzzFeed News that the ape "is home," with records showing the purchase.
The NFT, "Bored Ape NFT #8398," is set to feature in Green's new show called "White Horse Tavern."
Actor Seth Green has been reunited with a stolen Bored Ape Ethereum NFT, according to BuzzFeed News, and appears to have paid $260,000 for the privilege.
The star of animated shows including "Family Guy" and "Robot Chicken" lost four Bored Ape NFTs worth more than $300,000 in a phishing attack three weeks ago carried out by "Mr Cheese."
The theft included Bored Ape NFT #8398, which reportedly cost Green $200,000 and was meant to feature in a new TV series called "White Horse Tavern."
The theft of the NFT left Green in a legal gray area where it was unclear if he would still own licensing rights for the character.
The copyright to Bored Ape NFT Yacht Club collection, which set off a frenzied buying craze among celebrities in January, is owned by its creators Yuba Labs.
While buyers of the NFTs have rights to license and distribute them, the agreement did not extend to stolen NFTs.
Green was confident he still maintained the rights to distribute the ape as it was stolen, he said.
Nevertheless, transaction data show that Green paid 165 Ether worth about $260,000 to have the NFT returned.
He told BuzzFeed News in a Twitter Space for his NFT company PizzaBot on Thursday that the ape "is home."
Following the phishing attack, "Mr Cheese," who was also identified by BuzzFeed to be using the pseudonym "DarkWing84," initially told the news site he had purchased the NFT in good faith and had no intention of returning it, but that he was happy to speak with Green directly.
In a tweet, Green indicated he would take his adversary to court over the accused theft.
Green is far from the only person on the wrong end of a crypto phishing attack. A study by the Federal Trade Commission found that crypto scams had conned thousands of people out of $1 billion since the start of last year.
Earlier this week, $360,000 worth of Bored Ape NFTs were stolen from Yuba Labs in the third attack on the account since April.
A representative for Green didn't immediately respond to Insider's request for comment.
More: Weekend BI UK Seth Green NFT bored ape yacht club | 2022-06-11T16:06:37Z | www.businessinsider.com | Seth Green Pays $260,000 Ransom for Stolen Bored Ape NFT: Report | https://www.businessinsider.com/seth-green-pays-260000-return-stolen-bored-ape-ethereum-nft-2022-6 | https://www.businessinsider.com/seth-green-pays-260000-return-stolen-bored-ape-ethereum-nft-2022-6 |
Maurice Murray says ice cream vans used to visit streets three times a day but have cut that back to one - or none at all.
Maurice Murray
Ice cream van owners warn of "bleak" future amid soaring fuel prices that may force them to close.
Inflation means ice cream is becoming a luxury item for some rather than an affordable treat.
Operators are concerned for their future with the cost of filling up a van nearing $2,500 a month.
Their jingles have triggered squeals of delight from children for generations, but soaring gas prices are making the ice cream van an endangered species.
Operators across Britain warn that the ever-rising cost of filling their fuel tanks is having "drastic effects", with the future for the industry looking bleak.
Rising fuel costs mean it is more expensive to operate ice cream machines in vans, as well as drive them around.
Operators typically work as many hours as possible in the summer months to maximize profits and make up for the winter period when demand for ice cream is lower.
However, the high cost of fuel means many could disappear from British streets this winter.
Maurice Murray, chairman of trade body the Ice Cream Mobilisers and Associated Trades Alliance, says: "We're going to see vans parking up early in September when summer holidays end, which has never happened before."
The Lancashire-based ice cream van operator says the cost of fuel is already taking its toll on his colleagues from Scotland to Devon.
Murray says ice cream used to be an affordable treat but is increasingly becoming a luxury because higher operating costs have forced prices to rise, hitting demand.
He fears some operators may decide to park their vans permanently. "We will all feel that at the end of the summer season ice cream van owners will realize they don't have enough money to get them through the winter.
"For younger people in the industry they will have big mortgages and families to look after and the future looks very bleak for them," Murray adds.
The average price of a litre of unleaded in the UK is now about £1.84, or $2.26 – equivalent to more than $10 a gallon, or double the average price in the US.
At that level many operators think it is not worth the risk in cloudy weather because the takings may not make the trip viable.
Paul Field, the owner of Maurice's ice cream in Reading, west of London, says: "Expensive fuel costs are crippling my business. I run a fleet of eight vans. When I first started 40 years ago it was £10 to fill the tank up. It's now £125."
Ice cream van operators Nino's from Rhos-on-Sea in Wales have also suffered a huge increase in costs for their two vans.
"It's now costing just under £2,000 a month in fuel. That's before we take into consideration the cost of our stock and the electricity we use every evening to charge our fridge and freezers," one of the owners said.
Nino's has been a family business since 1938 and must now consider which routes to take before starting out the day to see if it is worth the cost.
"The mobile industry is constantly becoming challenging with the likes of supermarket offers on multipack lollies [pre-packaged ice creams] that we the small businesses simply can not compete with."
More: Retail Fuel Inflation Ice cream | 2022-06-12T10:28:05Z | www.businessinsider.com | Soaring Gas Prices Trigger Meltdown for Ice Cream Van Operators | https://www.businessinsider.com/ice-cream-vans-warn-bleak-future-amid-soaring-fuel-costs-2022-6 | https://www.businessinsider.com/ice-cream-vans-warn-bleak-future-amid-soaring-fuel-costs-2022-6 |
Investors should buy these 23 underpriced and high-returning stocks to outperform a market rocked by high inflation and continued volatility, Evercore says
Stocks fell at the end of this week as investors worried about higher and longer lasting inflation.
Julian Emanuel of Evercore doesn't expect a recession, but he does expect more volatility.
He says these 23 stocks should perform well because of their sensible prices and high yields.
Stocks skidded at the end of last week as investors braced themselves for the latest report on inflation — and when it was released, it only confirmed some of their worst fears.
The Bureau of Labor Statistics announced on Friday that inflation hit a 41-year high in May as prices rose 8.6%. Investors had hoped that after a four-decade high inflation reading in March followed by a small decline in April the increases in prices were starting to decelerate. If inflation slowed, they thought, the Federal Reserve might take a break from raising interest rates and the economy might perform better.
But inflation isn't hitting the brakes yet, which means the rate increases will last at least a bit longer and the economy is likely to slow further.
The losses wiped out the modest rally that stocks had enjoyed over the last few weeks, and once again left the benchmark S&P 500 index on the precipice of an official bear market , 20% below its highest close this January.
But Julian Emanuel, who leads Evercore's equity, derivatives and quantitative strategy team and its portfolio strategy team, says that rally was "part of a non- Recession Bear Market bottoming process." In other words, while the rally may be over for now, he believes that stocks will recover before too long.
He adds that the turmoil of the last few months is part of an ongoing "high volatility cycle" that will last for six years or so. With volatility elevated, and monetary conditions getting tighter, Emanuel says investors need to be prepared to buy stocks that look weak, sell those that are rising, hold onto cash, and use options strategies to protect themselves.
In a recent note to clients, he says that overall stock market valuations are going to fall, and value stocks, which are cheaper based on metrics like price to earnings ratios, should outperform.
"After 15 years of underperformance, we forecast that rising rates, elevated inflation and continued growth in 2022 would result in the transition to Value stock leadership from Growth. This trend change we expect to be measured in quarters or years," he said.
The following is a group of 23 stocks that Emanuel expects to outperform as the year goes on because they're trading at lower-than-usual valuations while delivering solid returns to investors in the form of dividend yields. He says those yields and their solid free cash flows should reduce their volatility, and recommends "patient buying" of these stocks.
The stocks are ranked from highest to lowest based on their estimated price to earnings ratios for 2022, as stocks with lower P/E ratios are considered less expensive. The free cash flow and dividend yield figures below are both for the last 12 months.
Shareholder return: 17.1%
Free cash flow yield: 7.4%
Estimated 2022 P/E ratio: 33.3
Source: Evercore
Shareholder return: 9.7%
Liberty Media
Free cash flow yield: 37.3%
Estimated 2022 P/E ratio: 9.6
Shareholder return: 2.30%
Julian Emanuel | 2022-06-12T10:28:11Z | www.businessinsider.com | 23 Stock Picks to Buy: Investing Strategy for Inflation and Volatility | https://www.businessinsider.com/investing-inflation-recession-stock-picks-to-buy-strategy-volatility-evercore-2022-6 | https://www.businessinsider.com/investing-inflation-recession-stock-picks-to-buy-strategy-volatility-evercore-2022-6 |
Today's mortgage and refinance rates: June 12, 2022 | High rates are cooling housing demand
After several weeks of holding steady, mortgage rates spiked at the end of last week.
Rates are significantly higher today than they were a year ago. Combined with high home prices, many buyers are struggling with affordability, and some have been priced out of the market entirely. This has begun to have a cooling effect on the housing market, with the number of new mortgage applications dropping rapidly. | 2022-06-12T10:28:17Z | www.businessinsider.com | Today's Mortgage, Refinance Rates: June 12, 2022 | High Rates Are Cooling Housing Demand | https://www.businessinsider.com/personal-finance/best-mortgage-refinance-rates-today-sunday-june-12-2022-6 | https://www.businessinsider.com/personal-finance/best-mortgage-refinance-rates-today-sunday-june-12-2022-6 |
Donald Trump (left) and a phone displaying his social media app, Truth Social.
Brandon Bell/Getty Images/Christoph Dernbach/picture alliance via Getty Images
Several Truth Social users claimed they were banned after posting about the Jan. 6 committee hearings.
Users took to Twitter to complain about being suspended or experiencing technical difficulties with the site.
The apparent banning of users contradicts the site's central promise to be a "free speech platform."
Users of former President Donald Trump's Truth Social claimed they had been banned from the social media platform after posting about the January 6 committee hearings.
Travis Allen, a political commentator on social media and self-described information security analyst, claimed on Friday that he had been permanently suspended for talking about the hearings.
"So much for "free speech." This is censorship!" Allen tweeted.
—Travis Allen (@TravisAllen02) June 10, 2022
Another Twitter user, Jack Cocchiarella, claimed he had been banned after posting about the hearings.
—Jack Cocchiarella (@JDCocchiarella) June 10, 2022
Several others claimed to have been censored or suspended by the platform recently, one over a video of Ivanka Trump and another stating that Joe Biden won the 2020 election.
Insider could not independently verify the claims. Insider reached out to Trump Media & Technology Group, which owns and runs Truth Social, but did not receive an immediate response.
The apparent banning of users, which was first reported by Variety, contradicts the site's central promise to be a free speech platform.
Since its launch, Truth Social has already gained a reputation for censoring content and banning users for various reasons.
The site's terms of service state: "We reserve the right to, in our sole discretion and without notice or liability, deny access to and use of the service (including blocking certain IP addresses) to any person for any reason or for no reason."
It also requires users who sign up to agree to not "disparage, tarnish, or otherwise harm, in our opinion, us and/or the Site."
Social media platforms can moderate content as they see fit under US law, which Trump controversially attempted to challenge while in office.
Trump announced his plans to launch Truth Social last year after being permanently banned from Twitter and suspended from Facebook for two years following the January 6 Capitol insurrection.
From the start, the platform was plagued with technical issues, including network outages and glitches that prevented people from creating accounts.
Many users reported similar outages on Truth Social on Friday, with many posting screenshots on Twitter of a "network failed" message when trying to use the site.
The former president took to the platform on Thursday and Friday to respond to the January 6 committee hearing, including rebuking Ivanka Trump's statement that she "accepted" there was no fraud in the 2020 election.
More: TRUTH Social January 6 commitee hearings UK Weekend News UK | 2022-06-12T10:28:45Z | www.businessinsider.com | Truth Social Users Claim They Were Banned for Jan. 6 Hearings Posts | https://www.businessinsider.com/truth-social-users-banned-jan-6-hearings-2022-6 | https://www.businessinsider.com/truth-social-users-banned-jan-6-hearings-2022-6 |
Elizabeth Holmes' ex-boyfriend Sunny Balwani 'is no Johnny Depp', says an expert on juror behavior
Former Theranos CEO Elizabeth Holmes and former Theranos COO Ramesh "Sunny" Balwani.
Yichuan Cao/Justin Sullivan/Getty Images
Sunny Balwani's trial on fraud charges linked to Theranos is continuing after a break.
Jill Huntley Taylor, a juror expert, said Balwani comes off as less likeable than Holmes to jurors.
Balwani faces abuse allegations, but Taylor said he would be wrong to use Johnny Depp's strategy.
As the trial of former Theranos COO Ramesh "Sunny" Balwani continues in San Jose, California, experts say he faces a more difficult courtroom battle than his former colleague and lover Elizabeth Holmes.
Balwani is being tried on two charges of conspiracy to commit wire fraud and nine charges of wire fraud linked to both investors and clients in the failed blood testing startup.
Holmes, who founded Theranos, has tried to have her fraud convictions overturned, citing a lack of evidence.
Jill Huntley Taylor, CEO of Taylor Trial Consulting, which consults legal teams on juries, told Insider that both the evidence and the way Balwani is perceived would affect his chances of being acquitted.
Holmes was 'a true believer'
While Holmes was found guilty on four counts of fraud-related charges and faces up to 20 years in prison, Taylor said a less charismatic figure might have faced a harsher outcome.
She was regarded by some as a "master manipulator" adept at convincing investors to back her vision.
Wall Street Journal reporter John Carreyou, who initially broke the story about Theranos testing, said of Holmes: "She had an ability to make people suspend disbelief. She has this reality distortion field."
These traits, Taylor said, worked in Holmes' favor on the stand, but they are not characteristics of Balwani.
"People don't love Elizabeth Holmes, but I think what she had going for her was that she pitched herself as a true believer in the company," Taylor said. "She was the voice and the face of Theranos."
The difference in their cases, according to Taylor, is that Balwani is less likable. His lack of charisma compounds the problems such as the mountain of evidence that Holmes had to contend with, she argues.
Balwani reportedly struggled to grasp theories like Holmes, Carreyou wrote in Bad Blood, his book about the downfall of Theranos.
He once mistakenly referred to an "end effector" – the claws at the end of a robotic arm – as an "endofactor," prompting a team at Theranos to use it on a slideshow as a prank.
Taylor said: "He has a lot of problems that she didn't have. He kind of fits the part from a juror's standpoint. He's got the power, the authority, he's got the personal traits that make the allegations more credible from a perceptual standpoint for the jury."
'Sunny Balwani is not Johnny Depp'
Holmes and Balwani were in a 12-year relationship during their time at Theranos. It was during this period that Holmes alleged Balwani was abusive towards her.
The actor Johnny Depp successfully sued Amber Heard for defamation in a contentious US case that followed a UK hearing in which he was found to have defamed Heard, Depp's ex-wife.
Some worry the Depp/Heard cases will discourage women from speaking out about abuse, and may encourage others accused of abuse to bring forward similar defamation cases.
And while a juror on the Holmes trial said the allegations of abuse seemed like a sympathy ploy, Taylor said any attempt by Bulwani and his team to present a similar defense would fail.
"Sunny Balwani is not Johnny Depp. He doesn't have the halo that Johnny Depp has, or the fan base," Taylor said. "He does not present as that type of person, so I don't know that the jurors will have any sympathy towards him. And I think they would actually be more inclined to believe Holmes' allegations."
Balwani's legal team of Orrick, Herrington & Sutcliffe declined to comment for this article.
More: Weekend BI UK Elizabeth Holmes Sunny Balwani Theranos | 2022-06-12T10:28:51Z | www.businessinsider.com | Uphill Court Battle Ahead for Elizabeth Holmes' Ex-Lover Sunny Balwani | https://www.businessinsider.com/uphill-court-battle-ahead-elizabeth-holmes-ex-lover-sunny-balwani-2022-6 | https://www.businessinsider.com/uphill-court-battle-ahead-elizabeth-holmes-ex-lover-sunny-balwani-2022-6 |
Breeze Airways launched the first of 18 transcontinental routes in May using its swanky new Airbus A220 jet.
The plane features both economy and first class, which is rare for low-cost carriers.
Insider flew with CEO David Neeleman from Richmond to San Francisco to check out its premium cabin.
Breeze Airways is one of the US' newest airlines, having launched its first-ever flight on May 27, 2021.
Breeze CEO David Neeleman with an Embraer jet during the inaugural flight in May 2021.
I flew on JetBlue founder's David Neeleman's new airline and saw how it's nothing like his old one — but it isn't supposed to be
The carrier was founded by airline mogul David Neeleman, who also founded JetBlue Airways, Brazil-based Azul, Canadian low-cost carrier WestJet, and Morris, which merged with Southwest Airlines.
David Neeleman cutting the cake at the ribbon cutting ceremony in San Francisco after the flight from Richmond.
Breeze started service with Embraer 190 and 195 aircraft, flying between medium-sized markets that did not have nonstop service, like Charleston to Hartford, Connecticut.
The inaugural flight of David Neeleman's Breeze Airways.
The airline's slogan is "we can get you there twice as fast for half the price," according to Neeleman.
Since its inaugural flight, the budget airline has been growing its business with new routes, bases, and aircraft. In February, Breeze added Hartford as a base, which joined Norfolk, New Orleans, Tampa, and Charleston.
Breeze counter in Hartford on its first day of operations.
Startup airline Breeze just announced a new East Coast base, setting the stage for a battle with New Haven-based rival upstart Avelo
In May, the carrier started flying its newest aircraft type: the Airbus A220.
Breeze Airways' first Airbus A220-300.
Breeze Airways and Airbus
The first-ever A220 flight flew from Tampa to Richmond, Virginia, on May 25, marking the official debut of the new plane. The aircraft flew the company's maiden transcontinental flight from Richmond to San Francisco later the same day.
Breeze Airways' inaugural A220 taking off from Richmond.
The flight is one of 18 transcontinental routes Breeze will operate this summer using the new jet. Each A220 will have a first class cabin, while its Embraer planes will only have economy.
Inside Breeze's Embraer aircraft that flew the inaugural in May 2021.
Breeze just launched its first-ever Airbus A220 aircraft that will take passengers coast-to-coast this summer on 17 transcontinental routes — see the full list
Currently, the carrier has 80 A220s on order with an option for 40 more. One jet per month will be delivered over the next six years, meaning Breeze will have 13 A220s in its fleet by the end of 2022.
Breeze Airways A220-300 aircraft.
Breeze Airways/Business Wire
"The A220-300 is a game-changer for us as we can now serve guests coast-to-coast!" Neeleman said. "The A220 offers travelers the widest cabin, highest ceiling, largest windows, and biggest overhead stowage in this class, while still managing to burn 25% less fuel, with half the noise footprint of past generations.”
Breeze Airways A220 at the gate in Richmond.
Insider flew with Neeleman, Airbus' VP of marketing Americans, Matthew Saks, and other members of the Breeze team from Richmond to San Francisco in first class on Wednesday. Here's what it was like.
My journey started at Richmond International Airport at 7:30 a.m., which was about an hour before my 8:35 a.m. departure.
The check-in area for Breeze was located at the far end of the departures level. Here, passengers can check their luggage and get their boarding pass.
However, there were no kiosks, which was disappointing. So, for travelers without checked bags, like myself, I found it easier to check in on the mobile app and head straight to security.
I cleared the checkpoint in about five minutes and walked a short distance to gate A5 which Breeze uses. Here, there was Breeze branding and a bag size checker for carry-on luggage.
Carry on bags must not exceed 22x14x9 inches.
The gate area was small, but there was enough room for the up to 137 passengers that can fit on the A220.
Breeze's A220s come in two configurations — the initial version with 126 seats and the future aircraft that will have 137 seats. The difference between the two is the number of first class and extra-legroom seats.
My flight to San Francisco was on the initial configuration. Walking on, I immediately noticed the elegant flooring design at the entrance and the jet even had that new plane smell.
I enjoyed the pretty flooring at the entrance when boarding.
On the long flight, I flew in first class, which was one of the nicest domestic premium seats I've ever flown in. It was amenity-heavy and felt more modern than competitor products.
It actually reminded me of United's Polaris Premium seats that are on its Boeing 787 and 777 aircraft.
Each lounger has 39 inches of pitch and 20.5 inches of width, which was more than enough space since I'm only 5'3" and on the smaller side.
Larger travelers and passengers soaring above six feet should have no issue in the giant seat.
In addition to being spacious, the first class seat did not skimp on comfort. Specifically, there was a leg rest and deep recline...
…and an adjustable headrest. The wings folded in for support and the headrest could be slid up for taller passengers.
Other amenities include power plugs and USB ports...
…a coat hook…
…a storage compartment…
…large seatback pockets easily big enough to hold my laptop…
…and two small shelves shared between the seats.
Each seat also features a large tray table that opens from the armrest in between the two loungers. Travelers can work or use the phone stand to stream media.
Unfortunately, there was no WiFi on the flight. However, Neeleman said the feature would be available in September, though the price is still undecided.
When settling into my seat, I noticed the aisle loungers have a metal piece that splits the under-seat space in half. I couldn't fit my backpack in the space, so travelers in those seats will need to stow larger personal items in the overhead.
We pushed back from the gate about 10 minutes late, but we were able to make up time in the air to get to San Francisco on schedule. On the taxi out, we got a water salute from the airport, which was a unique experience.
Shortly after takeoff, the flight attendants started the inflight service.
Breeze has several snacks and drinks available for purchase, like Pringles, M&Ms, coffee, tea, soda, water, and alcohol.
According to Breeze, the drinks and snacks are complimentary for travelers who purchase a Nicest or Nicer fare.
The Nice fare must pay for drinks and snacks, though water is free.
For my flight, I opted for a vodka cranberry drink...
...and fudge brownie M&Ms. The Kind bar was also complimentary, and first class passengers get one free alcoholic beverage on each flight. Travelers can buy additional alcohol.
I was disappointed in the food options for such a long flight. The ride from Richmond leaves at 8:35 a.m. and flies straight through lunchtime, meaning I was snacking until I was able to get a larger meal at the San Francisco airport.
However, Neeleman told Insider that larger meals were planned for the future. I hope the carrier adds options like sandwiches or salads.
After the inflight service, I worked on my laptop. The leg rest and large armrests made for a perfect working environment, despite the lack of WiFi.
When taking a break from work, I was able to prop my phone on the seatback and stream a TV show. My phone screen is small, so I'll be sure to bring my iPad on my next flight.
The perfect weather over the Rocky Mountains also provided great views from above.
I was also able to sleep after a few hours of working, and the headrest, recline, and leg rest made for a comfortable nap. For someone who rarely sleeps on planes — even when flying in premium cabins — I was surprised how well I slept.
Halfway through the journey, I made my way to one of the three bathrooms onboard Breeze's A220. I used one in the back of the plane, which was pretty small.
However, there was just enough room to move around and it also had a baby-changing table.
After 5.5 hours of flying, we landed in San Francisco around 11:30 a.m. local time.
Overall, the flight was enjoyable and comfortable. It was my first-ever flight on an A220 and I loved the modern feel of the aircraft. The first class seats were plush and the engines were quiet compared to other narrowbody jets.
After the experience, Breeze's A220 has become one of my new favorite planes to fly on, especially since its first class product was well-thought-out with the customer in mind.
However, one concern is the lack of inflight entertainment. There were no seatback TVs or streaming available, though Neeleman said the plan is to add streaming to personal devices in the future.
Delta Air Lines seatback screen on its A220.
The company already has its inflight entertainment portal, called BreezeOnboard, installed on its Embraer fleet. This is similar to mainline carriers like American Airlines.
More: Features Business Visual Features Reviews Breeze | 2022-06-12T11:59:39Z | www.businessinsider.com | Flying on Breeze's Swanky New A220 Aircraft; First Class Review | https://www.businessinsider.com/flying-on-breezes-swanky-new-a220-aircraft-first-class-review-2022-6 | https://www.businessinsider.com/flying-on-breezes-swanky-new-a220-aircraft-first-class-review-2022-6 |
How Gen Z is winning the Great Resignation, from pay increases to better work-life balance
Around 25% of Gen Zers have changed jobs over the past six months — and the generation is landing a nearly 30% pay increase when they do, based on annual pay growth data from May 2021 through April 2022.
Petko Ninov/Getty Images
Americans are still leaving their jobs, with 4.4 million people quitting in April alone.
Gen Zers have benefited the most in the Great Resignation, per LinkedIn and Bank of America data.
They are also seeing higher pay increases than older job changers, Bank of America data shows.
Gen Zers are winning the Great Resignation.
They're the generation more likely to switch jobs and are landing the biggest pay increases when they do, according to a report from the Bank of America Institute and data from LinkedIn provided to Insider.
And even more young professionals are thinking about handing in their resignation letters in the next two years, based on a global survey from Deloitte — although the share who said this is down from last year's result, signaling that the Great Resignation could be slowing a bit after a year of record-high quits.
But for now, Gen Z is taking advantage of the labor shortage and their flexible position in life to find the right job for the right money.
Gen Zers who are changing jobs are taking home more pay
Recent data from LinkedIn, where Gen Z is defined as ages 20 to 24, shared with Insider shows Gen Z job transitions in April 2022 were 29.5% higher than a year earlier. That's roughly 20 percentage points higher than the 9.6% increase millennials saw, according to the LinkedIn data. Gen X job transitions were 8% higher in April 2022 than in April 2021.
Bank of America internal data shows a similar story, where roughly a quarter of Gen Z, those up to age 25, have job-hopped over the past six months, the highest share among generations during this period.
Karin Kimbrough, the chief economist at LinkedIn, said in a statement that "it's normal for career starters to be in an experimental phase where they're still figuring out what they want out of a job, and aren't always ready and willing to settle."
Jason Dorsey, who researches Gen Z, told Yahoo Finance that "it's really a perfect time for them to make that jump." For one, he said the generation "have the least responsibility in terms of family, child, houses, cars, and so forth."
The Bank of America Institute report found that "the average pay rise associated with job moves," based on annual pay data from May 2021 to April 2022, is around 17.6%.
"In other words, and perhaps unsurprisingly, it has paid off to move jobs," the report said.
For Gen Zers, this pay increase is 29.7%, the highest percentage among generations, according to Bank of America data.
But it's not just young workers switching jobs who are seeing more money in their bank accounts. Internal data of annual pay growth from May 2021 to April 2022 shows that, in general, Gen Zers are seeing higher pay bumps compared to other generations.
David Tinsley, the director of the Bank of America Institute, told Insider that Gen Zers' level of education could be related to higher pay.
"Some of the Gen Z rise will simply reflect that people in this group are embarking on their career journeys from education, which inevitably involves significant pay changes," the Bank of America Institute report said.
Millennials are also seeing pay growth above the average of 9.2%. Tinsley said millennials may have in-demand skills that companies want, and it could also be because of "the big rotation away from goods spending into services spending." He said that service industries like travel, entertainment, and leisure tend to hire younger workers.
Young professionals are thinking critically about whether a job actually fits what they want
Regardless of changing jobs, Gen Z are thinking about the jobs out there, the benefits they offer, and the duties they entail.
"The notion that they are just 'flighty' is a mischaracterization — from what we hear from Gen Z members on LinkedIn, they are thoughtfully evaluating the pros and cons of each opportunity and are willing to leave for a company that better aligns with their values and invests more in skills development and career growth," Kimbrough said. "In this tight labor market we're in, the bargaining power is still tilted in favor of the worker, and Gen Z is well aware of that."
According to a global Deloitte Gen Z and millennial survey, 37% of Gen Z and 36% of millennials said "they have rejected a job and/or assignment based on their personal ethics." They also won't stick around if they have to head back to office desks. A global survey from ADP Research Institute found that Gen Z is more likely to think about a new job if their company requires them to come back to the office full time.
"This group is certainly job-hopping at an even higher rate than we might expect, and when we survey LinkedIn members, Gen Z stands out as the group most likely to walk away from a job if it doesn't offer certain benefits like a flexible work policy," Kimbrough told Insider.
Deloitte and the Network of Executive Women noted in a recent report that employers are going to need a "different mindset" for hiring and retaining Gen Zers.
"Employers will need to understand the behaviors and tendencies of a generation that expects much more personalization in how they want to be treated by their employer and is seeking more than just filling cookie-cutter roles," the authors wrote.
Regardless of age, the labor market is hot for job seekers
Tinsley said that despite some signs of cooling, "the labor market for most generations, but particularly the younger age groups, have been white-hot."
Businesses have been increasing pay and offering other benefits to find and retain workers. According to the Bank of America Institute report, the pay increases may not last, though, and that job changes "may now have peaked."
Daniel Zhao, a senior economist at Glassdoor, previously told Insider the labor market situation looks "healthy" for people looking for jobs. But he warned that this isn't permanent.
"This is still a labor market that leans towards workers," Zhao previously said. "There's no guarantee that that will last forever, but generally speaking, what I tell job seekers is that this is a good time to look for a new job and try to lock in those gains while the labor market is still strong."
Are you a Gen Zer who has quit or is thinking about quitting your job? Contact this reporter at mhoff@insider.com.
More: gen z Employment Gen Z workers Generations | 2022-06-12T11:59:44Z | www.businessinsider.com | How Gen Z Is Winning the Great Resignation and Changing the Job Market | https://www.businessinsider.com/gen-z-winning-great-resignation-changing-job-market-2022-6 | https://www.businessinsider.com/gen-z-winning-great-resignation-changing-job-market-2022-6 |
College students.
Biden implemented a waiver for the Public Service Loan Forgiveness program.
It will bring borrowers closer to relief, and is currently set to expire on October 31, 2022.
If you're a public servant, here's what you need to do to access that waiver.
Public servants like teachers, firefighters, military, and nonprofit workers with student debt have just under five months to make use of a waiver that could bring them closer to loan forgiveness.
In October, President Joe Biden's Education Department announced a series of reforms to the Public Service Loan Forgiveness (PSLF) program, which forgives student debt for public servants after ten years of qualifying payments.
Included in those reforms is a limited-time waiver through October 31, 2022, that allows borrowers to count payments from any federal-loan programs or repayment plans toward loan forgiveness through PSLF, including programs and plans that were not previously eligible.
Per the department, that waiver alone is intended to bring 550,000 borrowers closer to student-loan forgiveness automatically. Other changes to PSLF included making it easier for service members to get credit toward the program, review all previously denied PSLF applications to identify and address errors, and improve outreach to those who might be eligible for the program.
"The system has not delivered on that promise to date, but that is about to change for many borrowers who have served their communities and their country," Education Secretary Miguel Cardona said in a statement at the time.
But according to a recent analysis from advocacy group Student Borrower Protection Center, while 9 million public servants are eligible for student-loan forgiveness, only 2% of them have actually gotten their debt wiped out — and fewer than 15% of the 9 million borrowers have filed paperwork to track their PSLF progress.
If you're a public servant with student debt, here's what you need to do to make use of the waiver that expires in 5 months:
First confirm that you qualify for PSLF by ensuring you are employed at a US federal, state, local, or tribal government or nonprofit and you are working full-time.
Submit this form on or before October 31 to have prior ineligible payments, like those made under the Federal Family Education Loan (FFEL) program, count toward loan forgiveness if you currently have a federal direct loan.
If your loans are not direct loans (for example, you may have student loans under a number of different loan companies), you need to consolidate them into a federal direct loan. Once you do so, you may submit the PSLF form.
Once you submit the paperwork, the Education Department should notify you of the relief you are eligible to receive. As Insider previously reported, though, married couples who are public servants that combined their loans into spousal joint consolidation loans are currently not eligible for PSLF because law prohibits them from separating their loans into a direct federal loan.
The Education Department did not immediately respond to Insider's request for comment regarding a further extension of the PSLF waiver. | 2022-06-12T12:00:03Z | www.businessinsider.com | Here's How Public Servants Can Get Closer to Student-Loan Forgiveness | https://www.businessinsider.com/how-do-i-qualify-for-public-service-loan-forgiveness-waiver-2022-6 | https://www.businessinsider.com/how-do-i-qualify-for-public-service-loan-forgiveness-waiver-2022-6 |
The Lightyear 0.
Netherlands-based electric-vehicle startup Lightyear revealed its first model: the Lightyear 0.
The car can travel 43 miles per day using energy from built-in solar panels, Lightyear says.
Lightyear will make 946 Lightyear 0 cars, and each will cost roughly $263,000.
After six years of development, Netherlands-based electric-vehicle startup Lightyear unveiled its first production-ready car on Thursday: the Lightyear 0.
What makes Lightyear different from other EV startups? The Lightyear 0 boasts five square meters of solar panels on its roof and hood.
Lightyear says in optimal conditions those solar panels can generate enough energy for the car to drive 43 miles each day.
That's on top of the Lightyear's claimed range of 388 miles. If true, that figure would nearly match Tesla's longest-range Model S sedan.
Someone with a short daily commute of 22 miles could drive for up to seven months without plugging in their car, depending on where they live, Lightyear claims.
There's a reason solar-powered cars don't exist yet. They're tough to engineer, and it's simpler in some ways to install solar panels at home and charge a vehicle using the electricity they generate.
Built for efficiency above all else, the Lightyear 0 is no speed demon. It produces around 170 horsepower, has a top speed of 100 mph, and hits 62 mph in 10 seconds.
Slipping through the air with minimal drag is crucial for efficiency. To that end, Lightyear says its vehicle is "the most aerodynamic family car to date."
The Lightyear 0's interior is sleek, minimal, and futuristic.
It makes generous use of sustainable materials like vegan leather, recycled plastic bottles, and palm wood trim.
The Lightyear 0 has a 10.1-inch touchscreen and few physical buttons.
Lightyear plans a limited production run of 946 cars. Each will cost 250,000 euros, or roughly $263,000. The company plans to follow up with a more affordable, mass-market car by 2025.
Starting a car company is incredibly challenging, as evidenced by the vast number of startups that have failed and the many making a go of it today.
But Lightyear claims its vehicles will hit streets soon. Lightyear says production will start this year through a contracted manufacturer, and the first cars will be delivered as early as November. | 2022-06-12T13:30:52Z | www.businessinsider.com | Startup Debuts $263,000 Lightyear 0 Solar-Powered Electric Car: Photos | https://www.businessinsider.com/lightyear-electric-car-ev-solar-powered-range-photos-2022-6 | https://www.businessinsider.com/lightyear-electric-car-ev-solar-powered-range-photos-2022-6 |
I stayed in an Airstream trailer hotel room at Autocamp's newest Joshua Tree location.
It's only been open for a few months but the luxury campground — Autocamp's fifth — is already seeing strong bookings.
I understand why: The comfortable trailers, modern amenities, and convenient location make the price worth it.
I love a good camping trip, but I'll never pass up on the opportunity to "glamp" — a portmanteau of "glamour" and "camping."
Luckily for me, in early May, I spent a night doing just that at luxury campground chain Autocamp's latest Joshua Tree location.
It was my second time staying at an Autocamp site, the first being a late-summer trip to the brand's popular Yosemite outpost in 2021.
My fun and relaxing glamping experience at Autocamp Yosemite left me with exceedingly high expectations for the new Joshua Tree location, which opened in January.
Despite my high hopes, Autocamp Joshua Tree, the brand's fifth opening, didn't disappoint.
Before I moved from California to New York, I frequented Joshua Tree National Park for quick day visits and "traditional" camping trips.
I've always been a camping enthusiast.
But after spending the night in an air-conditioned Airstream hotel room about 10 minutes from the park, I definitely see the appeal of "glamping" in Joshua Tree, which is notorious for scorching hot summers and below-freezing winters.
I'm used to dust and sweat-filled camping excursions in the desert.
But this time, I didn't have any of these problems.
The luxury campground may have been a short drive from the park, but it still felt more like a fun destination than a place for a quick nighttime pit stop.
Autocamp Joshua Tree had plenty of amenities to make the desert campsite feel like a luxury retreat.
And sleeping on a plush mattress inside of an Airstream trailer-turned-hotel room was definitely more comfortable than sleeping on the ground.
Don't get me wrong, I still love camping with a sleeping bag and tent.
But with the desert's aggressive weather, staying in a temperature-stable room that still provides a bit of the camping experience is definitely a good alternative.
Autocamp's locations have classic glamping accommodations like small cabins and spacious tents in lieu of traditional hotel rooms or conventional camping sites.
But the company's own name best describes its most popular accommodations: Airstream trailers that have been converted into plush hotel rooms.
Instead of refurbishing old "silver bullet" trailers, the brand worked with its investor Airstream to create and manufacture a model for the glamping company, Taylor Davis, Autocamp's vice president of brand marketing, told Insider.
And because Autocamp's trailers were designed to be stationary, the hotel rooms on wheels have heavier and more luxurious accessories like a larger water heater and a tiled shower.
It's amenities like these that make the little trailer feel more like a comfortable and high-end extended-stay hotel.
These modern hotel rooms on wheels probably look nothing like your grandparents' Airstream.
Instead, my room was contemporary, clean, and spacious.
Inside, there was a bathroom with a spacious shower and uniform Ursa Major products …
… a joint living room and kitchen with plenty of storage …
… and a window-lined bedroom with a TV and comfortable queen bed.
The trailer also came with plenty of kitchen tools to help prepare a meal, including knives, a refrigerator, cutting boards, and a cast-iron skillet.
But besides the microwave, there are no cooking appliances.
Instead of an indoor stovetop or oven, every Airstream has a designated outdoor fire pit and shaded dining area.
To make dinner, I purchased firewood from the property's small market, prepared the mise en place inside the trailer, and cooked my meal outside on the cast-iron skillet over the fire.
My lettuce wraps weren't gourmet. But having plenty of kitchen utensils and a refrigerator meant I could make a meal that was still more upscale than the overcooked spaghetti and burgers I typically whip up when I go camping.
Having amenities like a modern bathroom and large bed presented with a contemporary and clean design made the Airstream trailer feel more luxurious than any hotel I've been in.
And my bedroom views of the desert definitely beat looking out a hotel room window just to see other buildings.
My only complaint was the lackluster water pressure, but that was to be expected.
Despite this minor gripe, my trailer felt like my own private desert sanctuary.
And the rest of the property's amenities were shared, creating opportunities to socialize with other travelers.
According to Davis, this opportunity to mingle is what sets Autocamp apart from other glamping sites.
"A lot of the other glamping products, especially those that have Airstreams, are more about seclusion," Davis said. "We really emphasize community at our locations. We're trying to help people connect with each other."
To do this, the property has programs throughout the day, a mid-century modern Clubhouse with communal seating …
… a large outdoor fire pit, and plenty of outdoor lounges.
The Clubhouse is also home to the check-in desk and a small market for visitors to stock up on ingredients, microwaveable dinners, snacks, and Autocamp merch.
After a refreshing sleep, I spent part of my early morning at the outdoor lounge chugging coffee and enjoying the sun.
Shortly after, I migrated a few feet over to the pool, which had plenty of shaded lounge chairs.
I spent most of my morning working by the pool.
But when it inevitably became too hot to sit outside, I decided to head back to my Airstream trailer to use the couch and side table as my makeshift desk.
Besides all the on-site amenities, one of the biggest perks of staying at Autocamp is its proximity to the national park.
Unlike the Yosemite location, which is about a 40-minute drive from the park entrance, Autocamp Joshua Tree was a breezy 10-minute drive from the park.
It's also a little over an hour away from Empire Polo Club, the home of world famous festivals like Coachella and Stagecoach.
These festival weekends are when Autocamp Joshua Tree sees full occupancy, Davis told Insider.
But besides festival weekends, the Airstream glamping ground has already seen "really high occupancy on weekends and really great occupancy on weekdays" despite its recent opening, Davis said.
And Joshua Tree isn't Autocamp's only success story.
The brand has seen "substantial bookings" especially in its Yosemite and Russian River locations.
Autocamp already operates five locations across the US, but its strong performance is pushing the company to open in more markets …
… including an upcoming location in the Catskills in New York.
New York's Catskills were a summertime destination for Jews, some of whom stayed at a dedicated vegetarian hotel.
Daniel Garland/EyeEm/Getty Images
As a now-avid fan of Autocamp, I'm personally excited to see any new locations.
The Autocamp concept is undeniably more fun than a traditional hotel ...
... and taps into my fond childhood memories of camping while catering to my adult need for comfort.
My plush, modern, amenity-filled trailer looked nothing like the stereotypical stuffy old RV.
And opening the door of my trailer to views of the desert and blue skies was definitely more refreshing than opening a door to the sight of a drab hotel hallway.
The on-site amenities kept me on the property longer than I would've lingered around a traditional hotel.
But this extra time at Autocamp didn't feel like a risk to my schedule given its proximity to the main attraction, Joshua Tree National Park.
At an average of $249 per night, Autocamp Joshua Tree is definitely more expensive than traditional camping in the national park.
But if you can afford the stay, crave the camping experience, and hate both dust and extreme temperatures …
… this avid camper believes Autocamp Joshua Tree is definitely the way to go.
More: AutoCamp Airstream Camping Glamping | 2022-06-12T13:31:05Z | www.businessinsider.com | Photos: I Stayed at Autocamp's Luxury Airstream Campground in Joshua Tree | https://www.businessinsider.com/photos-autocamp-airstream-luxury-campground-joshua-tree-glamping-2022-6 | https://www.businessinsider.com/photos-autocamp-airstream-luxury-campground-joshua-tree-glamping-2022-6 |
The 2022 Porsche Taycan Turbo S Cross Turismo.
The Taycan Turbo S Cross Turismo is Porsche's tremendous electric station wagon.
It's stunning, impossibly fast, charges quickly, and offers some practicality.
The 2022 Taycan Cross Turismo starts at $98,000. The 2021 model I drove came out to $208,650.
The Porsche Taycan Turbo S Cross Turismo is an odd mix of things. It's a practical station wagon, a mind-bendingly quick sports car, an outrageously expensive luxury vehicle, and a zero-emission electric car all in one.
This may sound like too much — and honestly, it is. By the usual measures of price, power, and speed, the Taycan Turbo S Cross Turismo is completely over the top. But wrap all these things together and you're left with something stupendous.
The top-of-the-line, $209,000 model Porsche lent me for a weekend last month was terrific. It's also totally unattainable, adding to its allure.
What is the Taycan Turbo S Cross Turismo?
Porsche launched the Taycan sedan in 2019 as its first electric car, and it's since introduced a handful of additional trim levels and variations. The Cross Turismo, a $98,000, all-wheel-drive wagon meant to provide a bit more interior space and everyday usability, went on sale for the 2021 model year.
There are four Cross Turismo trims to choose from: the base model, the more powerful 4S, the even quicker Turbo, and then, at the very top of the lineup, the $190,000 Turbo S. In terms of performance and utility, the Turbo S is the pinnacle of what the Taycan has to offer.
It's the kind of car that forces you to ask hard questions about your life and where it's headed: Should I become an investment banker? Do I really need to own a home? Who needs a retirement fund anyway?
What stands out: Outrageously cool, impossibly fast
For decades, Porsche's sports cars have set the standard for handling precision and driving enjoyment. Now that I've driven one, I understand why.
The Taycan handled wonderfully on New York's highways and back roads, staying perfectly flat and composed through bends like no other car I've experienced. And there's zero play in the steering; point the wagon an inch to the left or right, and it'll oblige without hesitation. The Taycan's agility makes it feel more like a go-kart than a 2.5-ton electric vehicle.
Then there's the absurd, ungodly amounts of power: 616 horsepower normally and up to 750 in short bursts, according to Porsche. Since the Taycan is electric, it can deliver every bit of its grunt at a moment's notice. It's an absolute thrill to drive.
Find a safe spot to stomp the wagon's accelerator, and it instantly barrels into the distance with an urgency that's hard to imagine if you haven't experienced it before. Porsche says 60 mph arrives in just 2.7 seconds. All I know is that your surroundings start whipping by faster than your brain can process.
The Taycan's cabin is luxurious, and everything feels high quality to the touch. From the outside, the Cross Turismo is a stunner. It's strikingly low and wide, with dramatic curves and large, 21-inch wheels. I could go on, but come on, just look at it.
After a day of draining the Taycan's battery, you can fill it back up remarkably quickly. The wagon and its sedan sibling can charge at a rate of 270 kilowatts — faster than most other models — meaning 5% to 80% happens in just 22.5 minutes, Porsche says. In many lesser EVs, it would take more than twice as long.
And although the Turbo S's range looks mediocre on paper (202 miles according to the Environmental Protection Agency, compared to 396 for a comparable Tesla Model S), it performs much better in the real world. I observed a more competitive 250 miles of range, and Edmunds clocked a 2020 Taycan for an even healthier 323.
What falls short: Practicality, in some ways
The Cross Turismo is decently practical compared to the Taycan sedan thanks to its bigger cargo area and standard glass roof, which expands headroom. The back seat isn't palatial, but it's roomier than you might expect, since Porsche built clever indents into the Taycan's battery pack to provide more legroom. A front trunk provides supplemental storage space.
But the Cross Turismo doesn't feel quite as capable as Porsche claims it is.
Porsche says the Cross Turismo is better suited for unpaved roads and potholed streets than the regular Taycan due to its increased ground clearance, among other things. But the wagon only rides a few centimeters higher than the sedan. I was abundantly aware of how close the Cross Turismo is to the ground whenever I encountered a steep driveway or speed bump.
Does this take much away from the Cross Turismo's greatness? Nope.
An electric dream car
The Taycan is a hit, outselling Porsche's legendary 911 sports car last year. But the Cross Turismo only makes up 5% of the model's sales, and I can't fathom why given what it brings to the table.
It drives exceptionally, oozes swagger, doesn't use fossil fuels, and has room for the kids, making it a fabulous daily driver if money is no object.
Would I upend my life just to afford a Turbo S Cross Turismo? Not a chance. But if I ever hit it big on Dogecoin or marry into royalty, it's at the top of my list.
More: Transportation car reviews Porsche Electric Cars | 2022-06-12T13:31:23Z | www.businessinsider.com | Porsche Taycan Cross Turismo Review: My Electric Dream Car | https://www.businessinsider.com/porsche-taycan-turbo-s-cross-turismo-electric-car-review-2022-6 | https://www.businessinsider.com/porsche-taycan-turbo-s-cross-turismo-electric-car-review-2022-6 |
Judge dismisses complaint from Home Depot employees who alleged the company violated workers' rights by prohibiting them from wearing Black Lives Matter imagery
A judge on Friday ruled to dismiss a complaint that Home Depot violated workers' rights.
Staffers alleged the company threatened and retaliated against them for wearing Black Lives Matter imagery.
The employees added BLM logos to aprons that are part of their uniforms, according to the complaint.
A judge on Friday ruled to dismiss a complaint from Home Depot employees who claimed the company violated workers' rights by prohibiting them from wearing Black Lives Matter imagery on the job.
In the complaint, the National Labor Relations Board (NLRB) claimed Home Depot violated federal labor law by barring employees from placing BLM logos on their aprons. The company gave staffers an ultimatum to either remove the messaging or quit.
The NLRB complaint further alleged that the retailer threatened and retaliated against employees for participating in the collective action, including a Minneapolis staffer who said he was suspended after wearing the logo on his apron and encouraging colleagues to join him.
"Issues of racial harassment directly impact the working conditions of employees," Jennifer Hadsall, NLRB's regional director in Minneapolis, said in a statement in August 2021. "The NLRA protects employees' rights to raise these issues with the goal of improving their working conditions."
Administrative law judge Paul Bogas wrote in his ruling on Friday that BLM messaging did not have "an objective, and sufficiently direct, relationship to terms and conditions of employment," as first reported by Bloomberg.
He continued: "[The messaging] originated, and is primarily used, to address the unjustified killings of Black individuals by law enforcement and vigilantes. To the extent the message is being used for reasons beyond that, it operates as a political umbrella for societal concerns and relates to the workplace only in the sense that workplaces are part of society."
Representatives for Home Depot and the NLRB did not immediately respond to Business Insider's request to comment on the ruling.
A spokeswoman for Home Depot previously told Insider in August 2021 that the allegation "misrepresents the relevant facts."
"The Home Depot does not tolerate workplace harassment of any kind and takes all reports of discrimination or harassment seriously, as we did in this case," the spokeswoman said. "We disagree with the characterization of this situation and look forward to sharing the facts during the NLRB's process."
More: Big Box Home Depot Retail weekend BI US | 2022-06-12T16:34:44Z | www.businessinsider.com | Judge Rules in Favor of Home Depot in BLM Workers' Rights Complaint | https://www.businessinsider.com/judge-dismisses-home-depot-workers-rights-complaint-black-lives-matter-2022-6 | https://www.businessinsider.com/judge-dismisses-home-depot-workers-rights-complaint-black-lives-matter-2022-6 |
President Joe Biden on Friday indirectly called out Sens. Sinema and Manchin at a California fundraiser.
"We need two more senators," he said in referencing the pair, who have stymied some of his big legislative items.
Biden didn't say their names but noted the difficulty of governing with such a closely-divided Congress.
President Joe Biden on Friday reportedly told Democratic donors at two California fundraisers that he needed some legislative firepower to help him get his priorities passed on Capitol Hill — a nod to the wafer-thin margins Democrats hold in Congress.
At the second fundraiser in Los Angeles, Biden remarked on the evenly-divided Senate, where he has had to rely on Vice President Kamala Harris' tiebreaking votes and unanimous Democratic unity to get his biggest priorities over the finish line, according to The Associated Press.
"We need two more senators," the president said, referencing Sens. Kyrsten Sinema of Arizona and Joe Manchin of West Virginia — the two moderate lawmakers who have upended some of his biggest domestic policy items since the beginning of his term.
While Biden has been able to rely on Sinema and Manchin in their overwhelming support for his judicial nominees, he stumbled with them on negotiations regarding the Build Back Better Act, the multitrillion social-spending package that was being negotiated for months only to collapse at the end of 2021.
The president did not call out the lawmakers by name, but said that they're "slowing up what we're able to do."
Democrats are facing a difficult electoral roadmap this year, as they are defending narrow majorities in both houses of Congress, while also contending with Biden's middling approval ratings.
However, Biden said he was hopeful that the party could perform well and asked donors to help him achieve his legislative goals.
An official with Democratic National Committee told The Associated Press that each fundraiser raked in roughly $2.5 million apiece.
If Democrats could pick up two Senate seats without losing any of their current members, they would have a 52-seat majority, enough to potentially weaken the filibuster and pass bills without requiring support from either Manchin or Sinema.
More: Joe Biden Kyrsten Sinema Joe Manchin Senate | 2022-06-12T21:10:58Z | www.businessinsider.com | Biden Tells Dem Donors 'We Need Two More Senators' to Break Gridlock | https://www.businessinsider.com/biden-democratic-senators-legislative-gridlock-donors-fundraisers-2022-6 | https://www.businessinsider.com/biden-democratic-senators-legislative-gridlock-donors-fundraisers-2022-6 |
BlackRock expands large investors' voting power as it faces criticism over its enormous influence as a shareholder
"More of our clients are interested in voting on their index holdings," BlackRock CEO Larry Fink, pictured here in March, told analysts last fall.
BlackRock is extending voting power to some big investors in some countries outside the US.
The world's largest asset manager faces scrutiny over its sweeping influence as a shareholder.
BlackRock's global ETF head said he expects more investors to vote their own shares over time.
BlackRock is handing more large investors like insurance companies and pension funds invested in its products a bigger megaphone in corporate boardrooms.
The New York-based firm's move, which was announced on Monday, is another step the world's largest asset manager is taking while it faces criticism from some lawmakers over its influence as an institutional shareholder. Typically asset managers like BlackRock vote on shareholders' proposals on the behalf of investors who have bought their funds.
Last fall BlackRock said that it would give certain institutional clients the option to vote on shareholder proposals themselves starting this January.
It means more big firms — themselves representing millions of end investors — have the option to vote the way they would like at companies in which they are invested, rather than leaving it to BlackRock to vote on their behalf.
BlackRock says it is now expanding this option to some big investors in Canada and Ireland for the first time, as well as more in the UK. Overall, clients representing 47% of BlackRock's $4.9 trillion in index equity assets around the world are now eligible to vote their own shares. That is up from 40% when BlackRock launched the program, called BlackRock Voting Choice.
And BlackRock says investors have so far taken the $9.6 trillion asset manager up on its offer. Clients representing a quarter of eligible assets now say they are choosing to vote their own shares, according to BlackRock.
The sweeping effort is overseen by executives including Chief Client Officer Mark McCombe, Sandy Boss, the global head of investment stewardship, and Salim Ramji, who runs exchange-traded funds and index investments globally.
Clients might have their own in-house expertise as they consider how to use their votes, or have a point of view on certain issues they want to express, Ramji told Insider. "It's their money. They own the assets. If we can make it easier for them to do, they'll do it," he said.
"You might have clients that appreciate that we're taking a long-term view on economic returns, but may just have a different kind of investment philosophy," he said, adding that he anticipates more clients will choose to vote their own way over time.
Proxy power
These moves to open up the ability for investors to cast their own votes at shareholder meetings reflects the intense scrutiny on the asset management behemoth and its competitors, notably Vanguard, and State Street, over their vast array of funds that own significant chucks of companies on behalf of investors.
"By letting more clients vote their own proxies, BlackRock is preempting any regulatory action that would come sooner or later," Hortense Bioy, the global director of sustainability research at Morningstar, said in a report last October. "There is only so much power concentration that policymakers can tolerate."
BlackRock's stewardship team, among the largest on Wall Street, still claims much power in the say it has in the proxy voting universe.
Last year BlackRock's investment stewardship team, run by Boss, a former longtime partner at consulting firm McKinsey, interacted with thousands of public companies in which it invests on behalf of investors.
BlackRock voted on some 164,000 proposals at about 13,600 companies in 2021, voting on matters like executive pay, climate-related disclosures, and who sits on corporate boards. BlackRock noted in a stewardship report that it is largely supportive of management teams. It voted for the election of 90% of board directors globally last year.
Other companies have taken steps to expand investors' voting power as a growing number of retail investors have flocked to the market during the pandemic. Last year popular brokerage app Robinhood acquired Say Technologies, a startup that aimed to connect investors with the companies they invest in to vote their shares and voice what they have to say about their investments.
More: Finance BlackRock Asset Management | 2022-06-13T04:52:55Z | www.businessinsider.com | BlackRock Expands Investors' Shareholder Voting Abilities Outside US | https://www.businessinsider.com/blackrock-investor-shareholder-proposal-voting-2022-6 | https://www.businessinsider.com/blackrock-investor-shareholder-proposal-voting-2022-6 |
On Saturday, the US Defense Secretary accused China of "provocative" military activity near Taiwan.
China will "fight to the very end" to stop Taiwanese independence, the country's defense minister said on Sunday in a combative speech in which he also referred to the US as a "bully."
More: China Taiwan Politics | 2022-06-13T04:53:01Z | www.businessinsider.com | China Says It Will 'Fight to the Very End' to Stop Taiwan Independence | https://www.businessinsider.com/china-taiwan-fight-to-the-end-stop-independence-politics-defense-2022-6 | https://www.businessinsider.com/china-taiwan-fight-to-the-end-stop-independence-politics-defense-2022-6 |
See the 14-slide pitch deck a French biotech just used to raise $86 million to pursue a twist on one of the hottest ideas in cancer research
ImCheck Therapeutics CEO Pierre d'Epenoux.
ImCheck Therapeutics
ImCheck Therapeutics just raised $103 million to treat multiple forms of cancer.
The company is working on one of the fastest-growing ideas in cancer research: gamma-delta T cells.
The company's lead drug is an antibody targeting a unique receptor on the cells.
The French biotech ImCheck Therapeutics just raised a $86 million Series C funding round to support a unique take on one of cancer research's most exciting ideas.
The company also received $17 million more from the final tranche of its Series B. The European life-sciences investors Earlybird and Andera Partners co-led the fundraise.
Most of the cash will support research of its lead cancer-drug candidate, ICT01. The therapy targets a powerful type of immune cell — the gamma-delta T cell — that has become a growing fascination in the drug industry. ImCheck hopes to activate these immune cells, causing them to hunt down and kill cancerous cells in the body.
Brad Loncar, a biotech investor, predicted in December that 2022 would be a breakout year for gamma-delta T cells. Early clinical results from Boston's Adicet Bio have brought more excitement to the idea this year, and Big Pharma has taken notice. The Japanese drugmaker Takeda has bought two gamma-delta-cell-therapy companies. Johnson & Johnson, Bristol Myers Squibb, and Regeneron have research or licensing deals on gamma-delta therapies with Lava Therapeutics, Century Therapeutics, and Adicet, respectively.
The gamma-delta idea hopes to extend the benefits of CAR T-cell therapy, which has shown remarkable results in some types of blood cancers but is hard to manufacture, expensive, and not particularly effective at treating solid tumors.
While there are several biotechs pursuing cell-therapy programs using this special type of immune cell, ImCheck is targeting these cells with an antibody drug that's cheaper and simpler to produce than cell therapies. It works by activating T cells already in the body. Making its approach even more unique, the biotech is activating these T cells through a special receptor called butyrophilins.
ImCheck plans to complete a midstage clinical trial with its latest funding, CEO Pierre d'Epenoux said, as well as continue to grow the 42-employee startup. ImCheck will also try to reel in a Big Pharma collaborator that can help accelerate research and provide financing.
"Pharma is clearly looking at us," d'Epenoux told Insider. "We just need to continue to generate great data."
Here's the 14-slide pitch deck ImCheck used to raise its $86 million Series C round.
The Marseille-based ImCheck Therapeutics wants to treat cancer using gamma-delta T cells.
ImCheck already has its lead drug candidate, ICT01, in human testing. The company plans to test the antibody therapy against a variety of cancer types.
Cancer research has become incredibly competitive and crowded, but ImCheck CEO Pierre d'Epenoux said the company had advantages by using an antibody drug to activate T cells, rather than editing T cells directly.
"Our approach is universal in the fact it can address solid, as well as liquid, tumors," d'Epenoux told Insider. "And you're doing that in a much more elegant fashion, eliminating all the complexities that you have with CARs."
Lab research suggests gamma-delta T cells are active against most types of cancer. Traditional CAR-T programs use alpha-beta T cells, which aren't as active against solid tumors.
D'Epenoux was previously a vice president at the French pharma giant Sanofi and has been working in the drug industry since the 1990s.
ImCheck has drawn a mix of US and European investors. Its board includes Michael Baran, a Pfizer Ventures partner, and Thibaut Roulon, a senior investment director at Bpifrance.
ImCheck's pipeline is advancing into midstage trials. The company expects more human data for ICT01 in the third quarter of 2022.
Two clinical trials are underway to test ICT01: Eviction is testing the drug alone and in combination with Merck's Keytruda. Eviction-2 is testing the drug with an IL-2 inhibitor.
ImCheck's clinical advisory board features cancer researchers from Duke University, New York University, and the Institute of Cancer Research. Daniel Olive, an immunologist, is ImCheck's scientific founder.
The upcoming expansion of the Eviction study will give early efficacy results. The study is enrolling patients with a wide variety of cancer types, including lung cancer, ovarian cancer, and melanoma.
Early results in humans showed ICT01 infiltrated tumors at a range of doses, including 700 micrograms, 7 milligrams, and 75 mg.
A 59-year-old woman saw a brain tumor disappear 27 weeks after treatment with ICT01. While the result is "spectacular," d'Epenoux said, pharma companies want to see that result replicated in more patients before committing to a deal.
ImCheck's long-term vision includes partnerships with other drug companies that can deepen its research pipeline. The startup also plans to expand beyond cancer to treating autoimmune diseases and infectious diseases.
More: Features Dispensed pitchdeck | 2022-06-13T06:20:55Z | www.businessinsider.com | ImCheck Therapeutics Pitch Deck Used to Raise Series C | https://www.businessinsider.com/imcheck-therapeutics-pitch-deck-to-raise-series-c-2022-6 | https://www.businessinsider.com/imcheck-therapeutics-pitch-deck-to-raise-series-c-2022-6 |
How chess helped launch the varied career of Point72 quant exec and flying-car entrepreneur Denis Dancanet
Point72's Denis Dancanet, president of cubist systematic strategies, grew up in communist Romania expecting to go into academia.
Point72 quant exec Denis Dancanet grew up in communist Romania expecting to be a professor.
A chess tournament helped him defect to the US, where he ditched academia for Wall Street trading.
Dancanet has also spent time building two startups, including Jetoptera, which is building flying cars.
But Dancanet has also played a key role in the launch of not one but two startups: Theorem, which applies data science to underwriting and investing in consumer loans, and Jetoptera, which is essentially trying to build flying cars. Dancanet, a latecomer to entrepreneurship, is partial to viewing the world like a chess board — a seemingly small move in one corner can reverberate far and wide.
Dancanet didn't return after the competition, instead defecting to the US, where he applied for asylum and began pursuing a career as a computer-science professor.
Two things helped reorient his mind toward entrepreneurship and Wall Street: He started reading Forbes magazine, which routinely profiled problem-solving business leaders, and the book "Market Wizards" by Jack Schwager, which included a chapter on Bruce Kovner, the billionaire founder of the macro hedge fund, Caxton Associates.
Kovner's description of the world as a chessboard, where a minor decision on interest rates in a small country can affect markets across the world, resonated with Dancanet.
After completing his degree in 1997, he ditched academia and jumped to Wall Street and Morgan Stanley, starting out building computer applications for bond traders before transitioning to the firm's Process Driven Trading group, the progenitor to the systematic hedge-fund, PDT, that the bank spun out in 2012.
While at PDT, Dancanet made an angel investment in Theorem. He wasn't previously familiar with the marketplace-lending arena. But for a statistical-arbitrage expert accustomed to making thousands of small bets on stocks at once, the business model was catnip — it applied a similar approach to credit, an asset class traditionally constrained from wagering in such high volumes.
Simultaneously, Dancanet cofounded a company of his own with an old high-school pal named Andrei Evulet, who worked as a research scientist at GE and spent a couple decades in R&D working on jet engines and propulsion systems.
Jetoptera, Greek for "jet wings," aimed to build jet-propulsion-powered flying vehicles capable of vertical liftoff, hovering, and landing. By then drones had graduated from curiosity to the mainstream, especially with Jeff Bezos' contemplating them as a means to deliver Amazon Prime packages.
But drones, powered by electric batteries, are severely constricted by battery-energy density — the auto industry has cracked the code for ground transport, but air flight is an entirely different matter.
A design drawing of Jetoptera's aircraft, which is powered by fluidic propulsion.
It's still relatively early days, but the lighter, sleeker solution Jetoptera is building "looks like a Dyson fan on steroids," he said, and its fluidic propulsion system uses compressed air to power thrusters.
If the company succeeds, packages air-dropped via drone will feel quaint compared with the possibility of flying cars, where applications extend beyond logistics and delivery to military uses, humanitarian relief, agriculture, ride-sharing, or just recreation.
More: Jetoptera Flying Cars Point72
PDT Partners
Quantrepreneurs | 2022-06-13T09:23:06Z | www.businessinsider.com | How Chess Helped Point72 Quant Dancanet in Wall Street, Tech Startups | https://www.businessinsider.com/point72-quant-denis-dancanet-chess-helped-career-wall-street-tech-2022-6 | https://www.businessinsider.com/point72-quant-denis-dancanet-chess-helped-career-wall-street-tech-2022-6 |
13 top venture capitalists to know who specialize in education-technology investing
From left: Ian Chiu, Owl Ventures; Masha Khusid, Drive Capital; Mercedes Bent, Lightspeed Venture Partners.
Owl Ventures; Drive Capital; Lightspeed Venture Partners; Savanna Durr/Insider
Venture-capital funding for edtech startups tripled from 2019 to reach $16.8 billion in 2021.
Funding increased during the pandemic as institutions transitioned to remote learning.
Insider compiled a list of VCs that have done deals with the hottest edtech startups.
Funding for education-tech startups boomed during the pandemic as schools and universities raced to adopt remote learning and tools to help them adjust to the new normal.
Venture-capital funding to edtech startups has more than tripled since 2019 and saw a marked jump during the pandemic. In 2019, total funding in the space was $5.4 billion. That increased nearly threefold in 2020 to $14.1 billion, and then reached a record total in 2021 with $16.8 billion, according to PitchBook data.
But signs of that investing enthusiasm appear to be slowing down, as PitchBook estimates total edtech funding stands at $5.4 billion as of June 9.
Behind the companies that are changing the way students learn are the savvy venture capitalists that fund these startups and help them scale to new heights.
Many VCs that focus on edtech were once teachers themselves, and they all expressed a passion for helping teachers and students.
"I had a math teacher as a mom and dropped out of Wharton to start an edtech company, so the space is close to my heart," said Vinny Pujji, an investor with Left Lane Capital.
Insider compiled a list of 13 venture capitalists that specialize in investing in edtech startups based on recommendations from other venture capitalists, and a review of investments in the sector.
Here are the top edtech investors to put on your radar:
Jenny Lee, GGV Capital
Jenny Lee is a partner at GGV Capital.
Notable investments: Labster, Huohua Siwei, Koala Reading (acquired by 51talk)
Jenny Lee is one edtech investor with an extremely impressive résumé: She became the first woman to break the top 10 of the Forbes Midas List in 2015.
A Singapore native, Lee moved to the US for college in 1991, where she attended Cornell University. She later moved back to Asia in 2001 and worked at Morgan Stanley before branching off into venture capital.
Lee has been at GGV Capital since 2005, where she grew the firm's presence in China and helped build its Shanghai investing team. She has led the firm's edtech investments in the virtual-lab-software startup Labster and the Chinese English-language lesson-plan startup company Koala Reading — which 51talk, a Chinese edtech giant that went public in 2016, acquired in 2015.
Ian Chiu, Owl Ventures
Ian Chiu is the managing director of Owl Ventures.
Ian Chiu
Notable investments: Class, Degreed, Interplay Learning, LingoAce, MasterClass, Thrive Global, Workera
Ian Chiu has understood the role education plays in social mobility since he was young. He is a child of immigrants, and his father came to the US to pursue a graduate degree. Chiu even wrote a book on financial aid and scholarships with his brothers.
Now as a managing director at the edtech-focused VC fund Owl Ventures, Chiu has made deals in consumer-education startups like MasterClass and the virtual-classroom company Class.
Chiu told Insider that he looks to invest in startups that use technology to "deliver improved access and outcomes in a demonstrable way to learners and institutions."
Jennifer Carolan, Reach Capital
Jennifer Carolan is the cofounder and general partner of Reach Capital.
Reach Capital
Notable investments: ClassDojo, Derivita, Desmos, Handshake, Lovevery, Outschool, Nearpod, Replit, Stellic, TeachFX
Jennifer Carolan cofounded the edtech fund Reach Capital in 2015 with Shauntel Garvey to invest exclusively in education startups. Before that, she was a public-school teacher for nearly seven years before she became a venture capitalist.
Over the course of her career, Carolan has invested in several education startups that help teachers connect with parents, like the online-class-feedback platforms ClassDojo and Nearpod.
When asked for her best advice for investors looking to break into edtech, Carolan shared three key points: "Listen to teachers. Read the research. Learn from history."
Vinny Pujji, Left Lane Capital
Vinny Pujji is a managing partner at Left Lane Capital.
Vinny Pujji
Notable investments: GoStudent, StudySmarter, Mentorshow
As the managing partner of Left Lane Capital, a fund that spun out of Insight Partners, Vinny Pujji has grown the fund's investments in the edtech space, backing the European tutoring unicorn GoStudent, which just raised $430 million to expand into the US. His investment prowess even earned him a spot on the Forbes 30 under 30 list for venture capital in 2022.
His passion for education startups makes sense given his background; his mother is a math teacher, and Pujji dropped out of Wharton to build his own tutoring company.
"Edtech founders that we back are uniquely mission driven," Pujji told Insider. "Education has touched and improved their lives and they want to improve access, engagement and results for future generations."
"It's what makes our work in the space so fulfilling and why I was once a founder in the space," he said.
Tory Patterson, Owl Ventures
Tory Patterson is one of the founding partners and managing director of Owl Ventures.
Tory Patterson
Notable investments: Accelerate Learning (acquired by The Carlyle Group), Degreed, DreamBox (acquired by Evergreen), Hazel Health, Kiddom, Labster, Newsela, Noodle, Quizlet
Tory Patterson — one of Owl Ventures' founding partners — helped grow the firm into the largest edtech-VC fund in the nation. The firm announced a new $1 billion Fund V in January.
Before working at Owl Ventures, Patterson was a partner at Catamount Ventures where he founded and ran one of the venture industry's first edtech-investment initiatives.
Patterson emphasized that Owl Ventures was actively looking for new edtech companies to invest in and advise, and that he is "hyper-focused" on startups tackling "the greatest challenges facing the ecosystem including student engagement, student mental health, content accessibility and the global teacher-staffing challenges."
Deborah Quazzo, GSV Ventures
Deborah Quazzo is a managing partner of GSV Ventures.
Deborah Quazzo
Notable investments: Class Technologies, Coursera, Guild Education, MasterClass, Pluralsight
Deborah Quazzo specializes in edtech and seed investments for GSV Ventures, and she's certainly excelled. She was featured on Insider's Seed 25, a list of the top female seed investors according to data from Tribe Capital.
Quazzo has a keen eye for seed-edtech investments, including Class Technologies, which raised over $160 million through its Series B, and the edtech unicorn Guild Education, which is now valued at nearly $4 billion.
In May, she told Insider that she looks for startups that provide "return on education," which means they lower costs, increase access, and improve learning outcomes.
Shauntel Garvey, Reach Capital
Shauntel Garvey is the cofounder and general partner of Reach Capital.
Shauntel Garvey
Location: Washington, DC
Notable investments: Ellevation, FourthRev, Frank, Holberton, Newsela
Shauntel Garvey says that she learned about the importance of a good education at a very young age from her mother, who was a professor.
Garvey cofounded Reach Capital along with Jennifer Carolan as a dedicated fund focused on education-technology companies. Before that, she was at the NewSchools Venture Fund for nearly three years, investing in edtech companies.
Garvey told Insider that when it comes to deciding on whether to invest in an edtech startup, she looks for "mission-driven founders that have a maniacal focus on designing solutions that educate, empower, and delight their users."
Masha Khusid, Drive Capital
Mashua Khusid is a partner at Drive Capital.
Drive Capital
Notable investments: ApplyBoard, Duolingo, SoloLearn, Udacity
As a partner at Drive Capital, Masha Khusid leads investments in edtech startups that fit into Drive Capital's investing thesis — they must be based outside of Silicon Valley.
Khusid has backed consumer-edtech startups like SoloLearn, a free coding-lesson platform, and the gamified language-learning app Duolingo, which went public in July 2021.
"Delivering real learning is still the most compelling and the hardest part of edtech," Khusid said. "We look for founders who are using technology to build sustainable efficacy moats in their business."
Rob Hutter, Learn Capital
Rob Hutter is the managing partner of Learn Capital.
Rob Hutter
Notable investments: Brainly, Coursera, Udemy
Rob Hutter is a veteran edtech entrepreneur. In 1989, he cofounded Edusoft, a K-12-assessment platform that Houghton-Mifflin acquired in 2003.
Nowadays, Hutter is the founder and managing partner of Learn Capital, which he started with fellow managing partner Greg Mauro in 2010 to invest in education startups. Before Learn Capital, he was a partner at Revolution Ventures, an early-stage venture-investment firm and affiliate of Founders Fund. Hutter has led the firm's investments in startups like Coursera, a massive-open-online-course platform (or MOOC) that went public in March 2021.
"The edtech revolution has barely even begun," Hutter said. "Success will be achieved when we're no longer calling for one."
Amit Patel, Owl Ventures
Amit Patel is the managing director of Owl Ventures.
Amit Patel
Notable investments: Amira Learning, BYJU'S, Codecademy (acquired by Skillsoft), Leap, Panorama Education, Thinkful (acquired by Chegg)
Before breaking into venture capital, Amit Patel was an edtech founder himself. He started Personal Academic Trainers, an after-school tutoring company. He also served as the director of technology for New York City's Success Academy, one of the largest charter-school groups in the city.
At Owl Ventures, Patel has led the fund's investments in the Indian edtech unicorn BYJU'S, which is valued at $22 billion as of March, according to TechCrunch. He also backed the consumer coding-class edtech Codeacademy, which sold to Skillsoft last December for $525 million.
Mercedes Bent, Lightspeed Venture Partners
Mercedes Bent is a partner at Lightspeed Venture Partners.
Mercedes Bent
Notable investments: Forage, Handshake, Multiverse, Outschool
Mercedes Bent came to venture capital after working as an operator in the startup ecosystem for years, because she wanted to lift up and support underrepresented founders. At Lightspeed, Bent leads the firm's scout program and has spearheaded efforts to invest in companies based in Latin America.
While she invests in several other areas besides edtech — like crypto and fintech — Bent has backed notable edtech standouts, including the after-school class platform Outschool that's now valued at over $3 billion.
Bent says that she looks for edtech founders who understand the challenges of building a startup in an industry that can be reluctant to change.
"It's incredibly hard and difficult to create behavior change, and founders that understand and empathize with habit formation are more likely to win," she said.
Katelyn Donnelly, Avalanche VC
Katelyn Donnelly is the founding partner of Avalanche VC.
Katelyn Donnelly
Location: New York City and Seattle
Notable investments: Agora, Boundless Life, Continuum, Pencil, Prisms of Reality, Sparkwise
Katelyn Donnelly has backed some of the more innovative edtech companies during her time as the managing director of Avalanche VC, including Prisms, a startup that teaches K-12 students math through virtual reality.
But before she was backing early-stage edtech companies, she was leading venture-capital investments at education giant Pearson, where she deployed $65 million to invest in private schools and education-technology companies in emerging markets.
"We're not interested in platitudes and in the opinions of the crowd," Donnelly told Insider about her approach to investing at Avalanche VC. "We seek out system rebels who seek to reimagine how learning and earning works."
Michael Staton, Learn Capital
Michael Staton is a partner at Learn Capital.
Michael Staton
Notable investments: Andela, Brilliant, Clever, Coursera, Minerva, Nearpod, Outschool, Podium Education
Michael Staton is another edtech venture capitalist that's also an edtech founder. Before becoming a VC, he started Uversity, a social enrollment-management platform for higher education. He was also a high-school teacher for over four years in the Houston Independent School district.
When he's not investing in edtech companies, Staton is the CEO and founder of CoLearn, a company that helps parents looking to homeschool their children build and manage a curriculum.
As a partner at Learn Capital, Staton has backed the firm's investments in success stories like the free online-course platforms Coursera and Brilliant, which help students work through STEM coursework.
The two traits Staton looks for in an edtech founder are "empathy and integrity. Then, the ability to design product market fit and the ability to architect a growth engine. In that order."
More: Features Venture Capital Education | 2022-06-13T09:23:12Z | www.businessinsider.com | 13 Top VCs to Know Who Specialize in Edtech Investing | https://www.businessinsider.com/top-education-technology-edtech-venture-capitalists-to-know-2022-5 | https://www.businessinsider.com/top-education-technology-edtech-venture-capitalists-to-know-2022-5 |
Amazon hosted more than a dozen influencers at a luxury hotel in Mexico last month.
It rebranded the hotel the "Amazon Resort" and provided cocktails, free products, and surf lessons.
Reports suggest Amazon has been struggling to win over influencers for its shopping livestream service.
Amazon is trying to up its game with influencers.
The tech giant invited more than a dozen influencers popular on Instagram, YouTube, and TikTok to a resort in Mexico in May, CNBC first reported.
Amazon rebranded a luxury hotel called Paradero Todos Santos as the "Amazon Resort." Paradero Todos Santos' website shows a one-night stay can cost between $400 and $900.
CNBC reports the resort trip lasted three days, and Amazon laid on a lavish spread for the attendees.
A YouTube video posted by influencer Kirsten Titus, who has 679,000 Instagram followers and over 250,000 YouTube subscribers, shows Amazon provided attendees with personalized towels, cocktails, free "internet famous" products, and surf lessons.
An Instagram video posted by beauty influencer Raye Boyce, who has over 3.5 million combined followers on Instagram and YouTube, showed attendees received spa treatments.
The company also held workshops for influencers on how to set up their own Amazon storefronts — pages on Amazon's website where they can sell products.
Meredith Silver, Amazon's director of creative growth, told CNBC the purpose of the event was to "facilitate a sense of community among our creators, to educate and inspire them, and thank them for being part of our program."
Amazon first launched its influencer program in 2017, and in 2020 it began actively recruiting influencers to sell products on its livestream platform Amazon Live.
Influencers are able to earn commission on products they sell on Amazon Live streams. Company emails obtained by Insider showed the company offered influencers bonuses of up to $9,000 per month on top of their regular commissions in an attempt to court them.
Last month's Amazon Resort could be a sign the company is having to up the ante to convince influencers that streaming on Amazon is worth their while.
Insider's Amanda Perelli reported Thursday that Amazon has been struggling to win influencers over to Amazon Live.
Amazon did not immediately respond when contacted by Insider for comment on its influencer resort.
More: Amazon Influencers Mexico Amazon Live | 2022-06-13T10:58:16Z | www.businessinsider.com | Amazon Courts Influencers With Trip to 'Amazon Resort' in Mexico | https://www.businessinsider.com/amazon-courts-influencers-with-trip-to-amazon-resort-in-mexico-2022-6 | https://www.businessinsider.com/amazon-courts-influencers-with-trip-to-amazon-resort-in-mexico-2022-6 |
Crypto VCs say the frenzy to invest in Web3 startups at any cost is cooling off. Here's where they now see opportunity.
Mike Novogratz, the CEO of Galaxy Digital, said at the Consensus conference that he believes bitcoin has further to fall. The crypto crash is pushing down valuations for Web3 startups, VCs say.
Getty Images/Getty Images for Friends of Hudson River Park
Web3 startup funding is finally getting less frenzied, VCs told Insider at the Consensus conference.
In the past few weeks, one crypto investor said he's focused more on tokens than startups.
But overall, investors are optimistic, saying 2018's "crypto winter" has prepared today's founders.
Investors who were all in on Web3 startups during the crypto market's peak are now beginning to sing a different tune in the wake of its drastic downturn.
At the Consensus conference in Austin, Texas, investors overwhelmingly struck an upbeat note on the long-term future of Web3 — the term encompassing crypto-enabled startups and applications such as non-fungible tokens and the metaverse.
But the steep drop in cryptocurrencies — over the past six months, bitcoin has fallen more than 40%, while ether has plunged more than 60% — has tempered the immediate outlook for some.
For instance, Joey Krug, the co-chief investment officer of Pantera Capital, whose portfolio includes Coinbase, FTX, and Alchemy, told Insider that he has focused most of his attention on public investments and individual crypto tokens rather than equity investments in Web3 startups in the past few weeks.
While competition for Web3 deals has increased as more venture firms throw their hat in the ring, relatively few firms have moved to invest in tokens, he said. Krug said he evaluates token investments similarly to deals in startups: based upon the strength of the team and the market opportunity.
More broadly, though, cryptocurrency prices likely need to fall further to provide clarity to investors, Krug said.
"It's hard to know what to price things right now," he said.
Mike Novogratz, the CEO of the investment firm Galaxy Digital, lent support to that view during a panel at the conference. He said that he believed bitcoin would continue to tumble as the Federal Reserve raises rates and tightens its monetary policy in response to rising inflation.
Jocelyn Cheng, the CEO of Luno Expeditions, the early-stage venture arm of the crypto-investment company Luno, said that deals are happening at a slower pace and valuations are falling. Startup valuations had been bid up earlier this year even in emerging markets, where Luno does much of its investing, she said.
But even with the market slowdown, the pipeline of potential deals hasn't narrowed, Cheng said. In regions such as Africa and Southeast Asia, for instance, she is particularly interested in decentralized finance, or DeFi — services that use crypto to allow customers access to financial services — for applications such as remittances.
"We see more real-life use cases there," she said.
Cheng is also looking to invest in Web3 startups that address security in DeFi. High-profile breaches, such as the hack in April that stole more than $600 million in tokens from the blockchain linked to the popular game Axie Infinity, have put crypto developers and startup founders on high alert, she said.
Despite the gloomy market backdrop, several attendees at the Consensus conference offered many doses of glowing optimism. Novogratz said he thought that bitcoin would reach its eventual bottom and begin to rebound before equities. Amy Wu, the head of FTX Ventures, even questioned whether crypto was actually in a bear market .
Several investors, such as Rumi Morales, the head of venture and growth investing at Digital Currency Group, said that the community of Web3 developers and founders has proven it can withstand downturns such as 2018's "crypto winter."
Krug seconded that view. He told Insider that many of the founders Pantera has backed had already begun to take measures to cut costs without prompting from investors. As a result, he said, he sees the current generation of Web3 startups being much more prudent with their capital even after last year's record sums of funding.
"People now remember how bad 2018 was," he said.
More: Startups Venture Capital Web3 | 2022-06-13T10:58:28Z | www.businessinsider.com | Where Crypto-Focused VCs See Opportunity Now in Web3 | https://www.businessinsider.com/crypto-vc-web3-investing-opportunity-startups-tokens-2022-6 | https://www.businessinsider.com/crypto-vc-web3-investing-opportunity-startups-tokens-2022-6 |
Crypto.com CEO Kris Marszalek
Crypto.com's CEO said the exchange will lay off 260 workers, or 5% of its workforce.
Other exchanges, including Gemini and Coinbase, have announced layoffs or plans to freeze hiring.
A market slump has eaten into the trading fees that are an important source of revenue.
Another cryptocurrency exchange has announced that it will be laying off workers.
Crypto.com CEO Kris Marszalek said in a Saturday tweet that the Singapore-based exchange will be lay off 260 workers, or 5% of its workforce.
"Our approach is to stay focused on executing against our roadmap and optimizing for profitability as we do so," Marszalek wrote in the tweet.
"That means making difficult and necessary decisions to ensure continued and sustainable growth for the long term by making targeted reductions of approximately 260 or 5% of our corporate workforce," he added. The CEO did not specify when the layoffs would be happening.
—Kris | Crypto.com (@kris) June 11, 2022
Marszalek's announcement makes Crypto.com the latest crypto exchange to cut jobs or withdraw job offers amid a slump in the cryptocurrency market.
On June 2, Coinbase said it will freeze hiring and withdraw some job offers. On the same day, Gemini said it was going to cut about 10% of its workforce.
The cryptocurrency market had a stratospheric year in 2021 as investors poured money into the tokens. In November, the value of the crypto market hit a historic $3 trillion, Fortune reported last year.
During this time, Crypto.com pushed hard to make its presence felt. Last year, it spent more than $100 million on an advertising campaign that featured Matt Damon as its spokesperson, and paid a reported $700 million to have Staples Center in Los Angeles renamed Crypto.com Arena for the next 20 years.
But this year, with central banks keen to temper inflation by increasing interest rates, investors are diverting their investments away from cryptocurrencies. Bitcoin, the largest crypto-token in circulation, is at its lowest in 18 months, Bloomberg reported on Monday.
Crypto exchanges were particularly hit hard amid the slump, as nonprofessional, or retail, traders held back on trading on their platforms, CoinDesk reported on June 4. Trading fees are a major source of revenue for exchanges.
Crypto.com did not immediately respond to Insider's request for comments.
More: Crypto.com Coinbase Gemini Cryptocurrencies | 2022-06-13T10:58:34Z | www.businessinsider.com | Crypto.com Says It Will Lay Off 260 Workers, or 5% of Workforce | https://www.businessinsider.com/cryptocom-layoffs-260-workers-5-percent-employees-announcement-2022-6 | https://www.businessinsider.com/cryptocom-layoffs-260-workers-5-percent-employees-announcement-2022-6 |
Rep. Jamie Raskin on CNN on Sunday night.
YouTube/CNN
Liz Cheney told the Jan. 6 hearing that multiple GOP lawmakers asked for Trump pardons after the Capitol riot.
Raskin, another Jan. 6 committee member, dodged questions for evidence for the claim on Sunday.
He said the panel has evidence for all its claims and that details will emerge "in due course."
Rep. Jamie Raskin dodged a question for evidence that Republican lawmakers asked then-President Donald Trump for pardons after the January 6, 2021, Capitol riot, saying the details would emerge later.
CNN anchor Dana Bash asked Raskin on Sunday about Rep. Liz Cheney's remark last Thursday that multiple GOP members of Congress, including Rep. Scott Perry, sought pardons from Trump after the insurrection "for their roles in attempting to overturn the 2020 election." Raskin, a Democrat, and Cheney, a Republican, are both part of the House committee investigating the riot.
"How many of your colleagues in Congress did that, and what evidence do you have? Because you know Congressman Scott Perry is denying it," Bash asked Sunday.
Raskin replied: "Yeah, well, the seeking of pardons is a powerful demonstration of the consciousness of guilt, or at least the consciousness that you may be in trouble, and that's what's so shocking about this. It's not just one."
Bash then interjected, asking: "You have evidence that this happened?"
"It is multiple members of Congress, as the vice-chair said at our opening hearing, and all in due course the details will surface," Raskin said, referring to Cheney.
Bash followed up, "So yes, there's evidence?"
Raskin replied: "Everything we're doing is documented by evidence ... Everything that we are doing is based on facts and this is a bipartisan investigation which is determined to ferret out all of the facts of what happened."
Cheney did not name lawmakers other than Perry in her allegation last Thursday, during the January 6 committee's first public hearing. Perry said in response: "The notion that I ever sought a Presidential pardon for myself or other Members of Congress is an absolute, shameless, and soulless lie."
The committee's second public hearing is set to start at 10 a.m. Monday.
More: News UK Speed desk Capitol Siege January 6 committee | 2022-06-13T10:58:40Z | www.businessinsider.com | Raskin Declines to Share Evidence GOPers Asked for Pardons After Jan 6 | https://www.businessinsider.com/jamie-raskin-declines-share-evidence-republicans-ask-trump-pardon-2022-6 | https://www.businessinsider.com/jamie-raskin-declines-share-evidence-republicans-ask-trump-pardon-2022-6 |
BANK OF AMERICA: Markets are highly volatile - so invest in these 23 stocks primed to deliver long-term returns
Ongoing stock market volatility has created an opportunity for investors to scoop up stocks with potential for long-term growth, according to Bank of America.
Markets are experiencing turbulence with interest rate and inflation uncertainty driving up volatility.
Investors should focus on stocks with potential for long-term growth, according to Bank of America.
The bank listed 23 stocks to add to your portfolio if you're looking for long-term returns.
It's been a wild year for stocks.
High inflation and uncertainty over the Federal Reserve's hiking schedule have injected a significant amount of volatility into markets.
The VIX, an index which measures the volatility level of the S&P 500, has surged and is up 72.4% year-to-date. Meanwhile, investors have rotated away from riskier assets like tech stocks and bitcoin, pivoting to safe havens like gold and 10-year Treasury notes.
But that shouldn't discourage retail investors from adding stocks that are well-positioned for the long-term to their portfolios, according to Bank of America. The bank's thematic investing department recently published a list of equities with exposure to demographic-based, long-term trends.
Thematic investors focus on trends that drive growth, rather than specific companies or sectors. Several analysts have argued that growth stocks are now available at a significant discount.
"According to our valuations, the growth category is now the most undervalued," Morningstar's Dave Sekera said earlier this month. "Now is not the time to be reducing exposures but to be adding judiciously—especially in high-quality companies."
Here are the 23 US-listed stocks that Bank of America says will benefit from long-term trends:
1. Progyny
Ticker: PGNY
Analysis: "Progyny is a provider of fertility benefits to large, self-insured employers," research analyst Michael Cherny said. "Progyny helps patients navigate a complex and stressful division of women's health and has demonstrated superior outcomes to other models."
Industry: financial
Analysis: "The bank is very well positioned to benefit from changing demographics, be it catering to changing customer preferences as they increasingly consume banking services digitally, to benefitting from the generational transfer in wealth over the coming years," analyst Ebrahim Poonawala said.
Ticker: UBS
Analysis: "UBS is the largest international wealth manager," analyst Alastair Ryan said."The group is also a major asset manager, the largest Swiss retail and commercial bank and has rebuilt its investment bank to steady profitability."
"Management has laid out an ambition to align its investment banking activities with wealth, evidence of which we believe would be welcomed by investors," Ryan added.
4. AMN Healthcare
Ticker: AMN
Analysis: "AMN is the largest provider of healthcare staffing services in the country, supplying hospitals and other health care providers with the professionals they need to care for patients-on both a LT and contingent basis," Bank of America's Kevin Fischbeck said. "In addition to the core recruiting and staffing business, AMN offers scheduling, consulting, and other workforce management and tech services."
5. Welltower
Ticker: WELL
Industry: healthcare, real estate
Analysis: "Welltower is a fully integrated and self-administered REIT invested across the full spectrum of health care real estate," Joshua Shanker and Jeffrey Spector said. "Welltower has ownership interests in nearly 1,400 facilities in high-growth markets in the US, the UK, and Canada."
6. Grab Holdings
Ticker: GRAB
Analysis: "Grab is Southeast Asia's leading superapp operating primarily across the deliveries, mobility, and digital financial services sectors across eight countries in the region," Sachin Salgaonkar said. "In its core categories of mobility & delivery, Grab is the market leader in the region with 71% market share in mobility and a 50% market share in delivery."
7. Sea
Ticker: SE
Industry: gaming, e-commerce
Analysis: "Sea recently expanded its e-commerce business into Brazil and Mexico, while its first self-developed game 'Free Fire' has a global user base," Salgaonkar said. "Sea also runs a digital payments platform supporting the two businesses."
8. Bank of Montreal
Ticker: BMO
Analysis: "As the bank most levered to commercial lending in Canada, we view BMO as well positioned to benefit from strong economic activity and increased demand driven by immigration," Poonawala said.
9. UDR
Ticker: UDR
Analysis: "UDR is a strong operator with diverse exposure to urban and suburban," three analysts said. "[It also] offers a strong affordability appeal."
10. The Home Depot
Analysis: "Superior strategy and execution have underpinned Home Depot's market share gains over the last decade, and we believe Home Depot will continue to outperform the overall renovation category, which has favorable tailwinds for the near and long term," Bank of America's Elizabeth L Suzuki said.
11. D.R. Horton
Ticker: DHI
Analysis: "Approximately 75% of revenue is derived from the Southeast, South Central and West regions," Rafe Jadrosich said. "The company also provides mortgage financing and title agency services to homebuyers."
12. ASGN Incorporated
Ticker: ASGN
Industry: IT
Analysis: "The current nature of the IT labor market benefits ASGN's business model," Bank of America's Heather Balsky said. "There's a large contingent workforce because tech workers favor moving between interesting assignments, while employers prefer to hire shorter-term specialized workers for specific projects."
Ticker: FVRR
Analysis: "Fiverr has a unique marketplace for business services and we believe the change towards permanent remote work and the Great Resignation will likely increase the long term demand for supply of freelancers," the bank said.
14. Upwork
Ticker: UPWK
Analysis: "Upwork is still in the early innings of their expansion opportunity and is well positioned to benefit from an increasing worker demand for a flexible/remote working model post-pandemic," a team of Bank of America analysts said.
Ticker: HOLX
Analysis: "Hologic is a global provider of medical imaging, surgical, and diagnostic products that focus on women's health issues," analyst Derik de Bruin said. "The lion's share of Hologic's sales can be attributed to improving women's health in some fashion."
16. Organon
Ticker: OGN
Analysis: "Women's health is a core component of Organon's mission statement," Bank of America said. "This commitment to centering the company's mission on women's health applies not only to its product portfolio but also its corporate governance."
17. Victoria's Secret
Analysis: "We think the brand turnaround is working and that new bra and product launches will build sales volume through 2022," Lorraine Hutchinson and Alice Xiao said. "The stock is an attractive opportunity given its myriad growth drivers and its many initiatives to maximize relevancy for the next generation of consumers."
18. Torrid
Ticker: CURV
Analysis: "We view Torrid as an industry disruptor in the plus-size apparel space with a niche on fit and a steady growth trajectory," Hutchinson and Xiao said.
Ticker: RBLX
Industry: gaming
Analysis: "As 'Gen C' grows into its teenage years, we think they could view Roblox as a multi-purpose platform, similar to how social networks were viewed before they grew beyond their core university student demographic," Bank of America's Omar Dessouky said.
20. Coinbase
Ticker: COIN
Industry: crypto
Analysis: "Buyers and sellers of crypto and other digital assets tend to skew towards a younger generation, who is typically more tech-savvy and more willing to try new technologies than older cohorts," Jason Kupferberg said. "The next generation will have an expectation for a digital lifestyle, including as it relates to their money and investments."
21. Block
Ticker: SQ
Industry: payments
Analysis: "Gen C will have an expectation for a digital lifestyle, including as it relates to their money and investments," Kupferberg said. "Among its various financial service offerings, Cash App users can buy and sell bitcoin through the platform."
22. Trupanion
Ticker: TRUP
Analysis: "Trupanion is a premier pet insurance provider offering health insurance for cats and dogs," the bank said. "Trupanion is the industry leader within North America, representing a market share of around 18%."
Ticker: DIS
Analysis: "Disney retains best-in-class assets, a strong global brand and should continue to see an earnings recovery driven by pent-up demand in theme parks," research analysts Jessica Reif Ehrlich and Brent Navon said. | 2022-06-13T10:59:10Z | www.businessinsider.com | Stock Picks to Buy: 23 Long-Term Investments From Bank of America | https://www.businessinsider.com/stock-picks-to-buy-long-term-strategy-analysis-investments-bofa-2022-6 | https://www.businessinsider.com/stock-picks-to-buy-long-term-strategy-analysis-investments-bofa-2022-6 |
Before we get into BofA's occupancy levels, however, I have an announcement. Reed Alexander, Insider's resident Wall Street newshound, will interview Bruce Larson, the chief human resources officer at private-equity firm Carlyle. Tune in via @BusinessInsider's official Instagram page at 2pm Eastern today to discuss Wall Street culture, and workplace health and wellness.
The US bank wants its suits back in the office at least four days a week. The big wigs in M&A, meanwhile, want to see their staffers back five days a week, according to this exclusive story from Insider's Alex Morrell and Samantha Stokes.
Top brass at most Wall Street banks are yearning for some semblance of pre-pandemic office culture. Those in favor of more bums on seats reckon summer interns and junior bankers are best-placed to benefit, as it exposes them to company culture and senior dealmakers.
Before diving into the rest of the news, in last Friday's edition, we noted that a former analyst at Citadel was sentenced to prison for scamming Covid relief loans, according to Bloomberg. To be clear, this individual left Citadel in 2018, while the prison sentence relates to actions committed in 2020.
2. BlackRock is expanding investors' voting power. The world's largest money manager, which has been scrutinized for its heavy influence as a shareholder, is extending voting power to investors in Canada and Ireland.
4. Executives from Goldman Sachs to Bridgewater imagined the markets in 2052. Here's what folks including Nasdaq's Adena Friedman and Macquarie's Shemara Wikramanayake told Bloomberg.
5. Another SoftBank-backed company just sacked a bunch of employees. OneTrust, a privacy-management startup, laid off 25% of staff one month after predicting a record quarter.
6. Klarna's CEO has come to the defense of BNPL. Sebastian Siemiatkowski told CNBC that Klarna's business model is " recession proof," despite laying off about 10% of its people last month, and posting a $748 million loss last year.
7. Bolt encouraged its staff to take out loans against their stock options. A former engineer at the fintech startup took out $100,000, then got canned, and now he's got 90 days to pay back much of it.
8. Brainlabs just appointed Canadian financial advisor Cannacord Genuity. The mandate comes as the digital ad firm looks for private-equity money to expand its global footprint, Insider has learned.
9. Fernando Fanton has joined Monzo as its chief product officer. The former Rappi and JustEat exec joins shortly after the UK fintech hit a $4.5 billion valuation.
10. Proper Finance just nabbed $4.3 million in seed funding. The fintech helps its peers manage their own data, which can be a cumbersome process. Here's the pitch deck that Proper used to secure commitments from Redpoint Ventures and Y-Combinator.
New Terminal One's $9.5 billion project to build and operate a revamped international terminal at JFK International Airport has reached financial close. MUFG, HSBC, ING, Intesa Sanpaolo, Scotiabank, Société Generale, and SMBC led $6.63 billion in loans to support the deal.
Trilon Group — an infrastructure company backed by Alpine Investors — has acquired CPH, an architecture and engineering firm.
Event invite: The fourth installment in Insider's "Financing a Sustainable Future" series is tomorrow, June 14 at noon Eastern. This event, in partnership with Bank of America, focuses on corporate governance, perhaps the most difficult measure of ESG reporting. Check out the previous three events and register for next week here. | 2022-06-13T12:25:32Z | www.businessinsider.com | Wall Street: BofA's Audio Leak | https://www.businessinsider.com/10-things-wall-street-bofa-investment-banking-2022-6 | https://www.businessinsider.com/10-things-wall-street-bofa-investment-banking-2022-6 |
The ad industry is bracing itself for 'rough waters ahead' amid an impending spending downturn. Here are all the ways it could play out.
Ryan Joe, Lara O'Reilly, and Lucia Moses
Fraser Hall/Getty Images
The economic downturn is about to hit the ad industry, with global ad spend expected to decline.
But consumers are still buying, and ad spend might just shift to different areas.
Digital platforms and streaming TV are bright spots, while traditional TV's growth is expected to flatten.
Digital ad sellers — from tech giants to media companies and the agencies and vendors who serve them — are bracing themselves for an impending advertising downturn.
Yet while some companies are signaling a gloomy outlook, most players in the space still have little visibility about where the cuts will come from, how deep they will be, and how long they will last. And some experts question whether there will even be an advertising slowdown at all.
WPP's GroupM, Morgan Stanley, and Publicis Groupe's Zenith have all revised down their global ad spending forecasts for 2022 in recent weeks.
The uncertainty in the ad market is compounded by a confluence of macroeconomic factors. High interest rates and inflation, concentrated in essential areas like gas and food, are forcing customers to reprioritize their spending. Retailers like Target and Walmart have been walloped by a combination of higher fuel costs and an abundance of products consumers aren't buying. Elsewhere, Russia's invasion of Ukraine and COVID-related shutdowns in China are putting strains on the global supply chain.
"The macroeconomic issues we're dealing with can't be overstated," said Michael Kassan, CEO of the consultancy MediaLink. "I think we'll start to see contraction in a few places in Q3. There are some rough waters ahead."
At the same time, many consumers are still spending on the travel and entertainment experiences that were denied to them over the pandemic — and advertisers in those sectors are responding accordingly. Expedia CEO Peter Maxwell Kern said on the booking site's May earnings call that it was "spending into that recovery" to attract vacation-starved consumers its way.
"Clearly the sentiment is negative around inflation, but just because we don't like what we're seeing doesn't mean we're not still buying," said Brian Wieser, global president of business intelligence at GroupM, which trimmed its global ad growth forecast June 13 to 8.4% from its 9.7% forecast in December, citing slowing growth in China.
GroupM predicts the US, which represents 39% of the global ad market, will grow 10% this year, excluding political ads.
Forecaster New global ad growth estimate Previous estimate
GroupM 8.4% 9.7%
Zenith 8% 9.1%
Some industry experts hold the view that some slowdowns in ad spending could just mark a return to normal after an unusual couple of years. GroupM, for example, expects the ad growth of pure-play digital platforms to slow to 12% in 2022 from 2021's 32% growth rate, when consumers spent more time online and e-commerce exploded.
Snap gave the digital ad market early jitters in May when its chief executive Evan Spiegel warned that macro conditions had deteriorated "further and faster" than the company had expected. Earlier that month, BuzzFeed's CFO Felicia DellaFortune said the digital publisher expected its ad revenue growth "to soften somewhat" amid pullbacks in programmatic ad spending and supply chain disruptions. Car companies slashed spending 27% in March due to the supply chain squeeze.
Just this month, Jellysmack, a startup that identifies creator content that can be distributed on social media to make ad revenue, just laid off 8% of staff in anticipation of a decline in ad spending.
Where ad dollars could go
One industry view is that ad dollars won't evaporate but will instead shift into different areas.
L'Oréal, for instance, is adjusting to inflation by optimizing promotions and tweaking which marketing formats to use, while passing cost increases to consumers. Microsoft just hit the brakes on its TV advertising, putting a potential $300 million in annual outlay in jeopardy, though it still plans to continue spending on performance marketing.
Other brands, like McDonald's, anticipate ad spend adjustments around specific products. CFO Kevin Ozan said during the company's March earnings call that if consumers start worrying about inflation, it'll increase demand for breakfast, which McDonald's markets on a local basis because tastes vary by region.
"I don't think the real cutting has begun and the cutting will be sporadic when it occurs," Bernard Urban, CEO at Silverblade Partners, a finance company that works with advertising agencies and media companies.
Advertising is still due to grow, even if less than previously expected. GroupM expects the digital platforms will still have a robust year, driven by the boom in e-commerce advertising. TV spending is set to grow 4%, helped by the critical role it plays for big brands and the buoying effect of streaming video, which Zenith expects to overtake social media over the next three years. Outdoor advertising is also poised to jump 14.3%, excluding China, as people return to pre-pandemic activities.
Harder hit will be audio, whose local-advertiser base is eroding; and print, which has long been in a steady decline.
Still, periods of uncertainty can work to the favor of ad agencies, who can offer themselves as guides to help clients navigate their way through.
"Having lived through the early 2000s recession in a senior role at a global agency, we saw spend shift more so than cut," Urban said. "Don't get me wrong, there were many cuts and some downsizing, but a lot of spend shifted around and we were busy accommodating these shifts."
More: Economic Downturn Ad Spending GroupM | 2022-06-13T12:25:38Z | www.businessinsider.com | Advertising Cuts Are Coming As China, Ukraine, Drag Down Growth | https://www.businessinsider.com/advertising-cuts-are-coming-winners-losers-2022-6 | https://www.businessinsider.com/advertising-cuts-are-coming-winners-losers-2022-6 |
EasyJet is slashing its June flight schedule, cutting 40 flights per day, The Guardian reported.
The airline is trying to cut back on the mayhem at airports caused by last minute cancellations.
Several airlines have been forced to cut schedules, citing staff shortages and demand for travel.
EasyJet has pre-emptively slashed the number of flights it is operating in June to reduce the mayhem airports have witnessed in recent weeks caused by last minute flight cancellations.
The Guardian reported the news, citing an internal message sent by the airline's chief operating officer, Peter Bellew, to staff on Friday.
40 flights per day in and out of the UK would be affected by the cancellations, The Guardian reported, citing a spokesperson for the airline. If 40 flights are cut for the rest of June, roughly 680 flights in total will be cancelled.
EasyJet operates around 1,700 per day in and out of the UK.
The budget airline has been forced to cancel a swathe of flights in recent weeks thanks to a combination of staff shortages and increased demand for travel as COVID restrictions ease.
In some cases, customers have been notified just hours before travel of flight cancellations. The cancellations have left people stranded abroad, or at airports in the UK looking for alternative flights.
Bellew said the airline wanted to "increase resilience across the network," per The Guardian.
"Making these cancellations is not something we take lightly but what's worse is to cancel our customers' plans on the day that they are ready to fly," Bellew said in the email seen by the outlet, adding: "We're all aware of the impact the current situation is having on our customers, our people and our reputation."
EasyJet did not immediately respond to Insider's request for comment on the cancellations.
The waves of cancellations comes amid ongoing staff shortages and pent up demand for travel. After cutting back on staff levels when travel plummeted in 2020, airlines have struggled to recruit the workers needed to accommodate the rebound in demand.
Around 10,000 passengers were affected by cancellations on Monday morning as EasyJet scrapped a number of flights to and from the airline's major UK hubs, including London Gatwick airport, The Independent reported.
Easyjet is joining other carriers in slashing its flight schedule to cope with demand.
Germany's flagship air carrier, Lufthansa, is cancelling 900 European flights in July, citing "bottlenecks and staff shortages," affecting both airports and airlines.
Airlines including Delta, JetBlue, Alaska, and British Airways have also pre-emptively trimmed their summer schedules due to problems recruiting enough staff to fulfil demand.
EasyJet previously announced that it would remove a row of seats from some of its planes so they could fly with fewer crew members.
More: Planes Airlines Flights Flight Cancellations | 2022-06-13T12:26:02Z | www.businessinsider.com | EasyJet Will Cut 40 Flights Per Day in June to Avoid Airport Mayhem | https://www.businessinsider.com/easyjet-airline-flight-cancellations-travel-demand-staff-shortage-2022-6 | https://www.businessinsider.com/easyjet-airline-flight-cancellations-travel-demand-staff-shortage-2022-6 |
6 health-tech VCs share what they are looking for in startups and how founders can overcome common mistakes
Prateesh Maheshwari of Maverick Ventures, Parul Singh of Initialized Capital, and Lainy Painter of Craft Ventures.
Maverick Ventures, Initialized Capital, Craft Ventures
Startups are facing a tough fundraising landscape as VC cash dries up.
But there are still opportunities for health-tech companies to secure funding, investors say.
Six health tech VCs share their biggest advice for founders and how they can nail their pitches.
It's a tough time to be a founder.
Across the industry, tech companies are facing trouble in the public markets amid fears of a recession . Startups, meanwhile, are facing lower valuations, cost cutting, and a dry spell in venture funding, with many investors advising their portfolio companies to extend their runways and save cash.
For health-tech startups, many industry watchers are expecting a "dramatic" drop-off in funding this year — a sharp reversal from the past three years, when private funding for health-tech startups tripled since 2019 to reach $29.1 billion in 2021, Insider previously reported.
In short, it's a far cry from the funding bonanza healthcare startups enjoyed over the past few years.
But there are still opportunities for health-tech startups to raise capital in this environment, investors say, especially when they stay mindful of their competition, become experts in their market, and fine-tune their sales pitch.
"There's a new wave of entrepreneurs moving to maintain this rate of digital acceleration," Lucy Deland, a partner at Inspired Capital, told Insider. "Despite the shifting venture landscape, there are still tailwinds behind health-tech founders looking to raise."
Insider asked six prominent health-tech venture capitalists for the best advice they had for founders. They shared tips for landing the pitch and how startups could overcome common missteps during the process.
These responses have been lightly edited for brevity and clarity.
Lainy Painter, Craft Ventures
Lainy Painter.
On steering into the competition:
"One of the biggest mistakes founders make while pitching is dismissing the competition. Acknowledging other companies that are serving the space gives a founder the chance to demonstrate their depth of knowledge and overall unique insights of the market. It's easier to explain why another company is adjacent or could be competitive over time than to dismiss any potential competition offhand."
On knowing your market:
"Additionally, founders need to showcase their path to break into a large market. While it's effective for founders to start their company with a sharp wedge into a smaller market — like travel nursing or gender-affirming hormone treatment for the trans community — the important piece is illustrating to VCs how coverage could expand sequentially over time and unlock a larger market."
On solving the most demanding problems:
"There are countless competing priorities for healthcare systems and payers, and even top priorities can take years to be addressed. In both good and bad markets, focusing on the most 'hair on fire' issues will speed up sales cycles. For example, hospital systems are facing a severe shortage of clinicians due to burnout and retirement, creating a critical demand for affordable solutions to staffing in today's healthcare landscape."
Lucy Deland, Inspired Capital
Lucy Deland.
Inspired Capital
On showcasing your healthcare expertise:
"It's no surprise that the pandemic was a major accelerant for health-tech investments overall. We saw an entire industry digitize overnight, and there's a new wave of entrepreneurs moving to maintain this rate of digital acceleration. Despite the shifting venture landscape, there are still tailwinds behind health-tech founders looking to raise.
"First and foremost, my advice is to clearly demonstrate your expertise and unique insight. Healthcare delivery, and all of the technology that surrounds it, is incredibly high stakes — this isn't a place to 'move fast and break things.' Are you familiar with the medical research, clinical practices, and payer strategy that your company will need to thrive?"
On owning your narrative:
"Second, make sure you're building a narrative that articulates your company's momentum. Consider what metrics you can share that best demonstrate market pull, be it growing revenue, contracts with payers, or patient adoption, to name a few.
"The way you approach a fundraising pitch is a reflection of how you'll run your business, so I always pay careful attention to how the founder shows up. Is the narrative clear and thoughtful? Are you high energy and fast-paced? Do you have operational expertise you're leaning on? As a former founder myself, I believe you can't practice too many times. You want to practice so much that it feels like second nature in an investor meeting."
Parul Singh, Initialized Capital
Parul Singh.
Initialized Capital
On being able to multitask:
"This month has been tough for the whole industry, healthcare companies included. However, we're working with our companies to find creative ways to cut costs, extend their runway, and remind them that downturns can also be big opportunities for founders who can move quickly, change their mindset, and make sure their company survives. In a nutshell: Stay alive, don't get bogged down by negative news, and focus on building what your customers want — better healthcare options and experiences for patients with software.
"It's essential for healthcare founders to be able to manage many different kinds of moving parts at the same time, for example, product and service design, the regulatory environment, and proving efficacy. Scientific and technical founders often excel at this complexity."
On being well rounded:
"I also want to see founders with deep comfort and understanding of their market. If they are selling to consumers, are they building something people want, and can they speak to customer pain points clearly and concisely? If they are selling to enterprises, do they understand the elements of a sales cycle? And, if the founders don't have this experience themselves, have they added a deep expert to their team? Well-rounded teams are necessary for survival in this sector."
Prateesh Maheshwari, Maverick Ventures
Prateesh Maheshwari.
Maverick Ventures
On how to sell yourself:
"One of the biggest mistakes founders make is not spending enough time talking about themselves and the team. So much of early-stage investing comes down to the founder's 'unfair advantage' in a given market and their ability to recruit a team. However, founders often focus too much on the problem and solution and leave the team towards the end of the presentation. Luckily, it's also one of the easiest problems to fix – walk through who you and your team are before diving into anything else, and keep reminding of the team's unfair advantage."
On building an impressive team:
"The No. 1 characteristic I look for is founder-market fit. How well suited is a founder to tackle a given problem? Have they lived the pain point before? Do they have a unique insight or angle into the market? The other leading indicator I often look at is unnatural hiring. If the founder has been able to persuade impressive talent into the organization, it's an early sign of being able to convince customers, partners, and future employees to buy into the vision."
Joanne Lin, Newark Ventures
Joanne Lin.
Newark Ventures
On selling your stock:
"For starters, it is important to note that Newark Venture Partners is a seed-stage fund. I caveat this because the earlier the investment, the more first-time founders are pitching. The most common 'mistake' that these founders make is that they don't approach investment pitches as a type of sales meeting — when in reality, you are selling your stock."
On cutting to the chase:
"In an initial sales call, the most important priority is to do customer discovery. If you are talking to a healthcare fund or the healthcare lead of a generalist fund, take five minutes up front to ask them what their thesis is, if any, about your space, gauge their baseline knowledge, and tweak your pitch from there to make the most of everyone's time.
"Founders often join the first investor call with a deck that they have poured countless hours into and spend 25 of the 30 minutes walking through information that, in many cases, is redundant for the investor, like high-level problem sets, market dynamics, or regulatory overviews.
"I usually try to preempt this, and before we even go through the first slide, I share what we know and what we like about the subsector. This usually resets the conversation, and we have a much more fulsome discussion."
Jessica Owens, Initiate Studios
Jessica Owens.
Initiate Studios
On surviving a turbulent market:
"As an early-stage investor, I'm most interested in understanding four things: When your company is successful, how is the world better? Why are you going to win? How does the money you will raise this round advance your progress toward that goal? Can you and I work together effectively to get there?
"I'm personally excited about the convergence of biology and technology, which continues to unlock discovery at an extraordinary pace. But we can't ignore that the public markets are under pressure and capital is flowing less freely than it was nine months ago. Leaders can use the current environment to sharpen their pencils, focus their strategy, and ask the hard questions about what is mission-critical versus nice to have. It's also a time to double down on people, build a strong culture, and cultivate inclusive leadership. If employees are engaged, focused, and motivated, you can create an edge over your competitors simply because the best people want to work for you."
On understanding your customers:
"I gravitate toward founders who deeply understand their customers because they have walked in their shoes. They are often solving problems that they understand because they have lived through those problems firsthand. I also appreciate it when people tell me what has worked and what hasn't worked and are transparent about risk. Every venture has risk. As investors, we categorize it, quantify it, and get comfortable with the types and magnitude of risks. I appreciate it when people level with me about what keeps them up at night."
More: Features Startups Tech | 2022-06-13T12:26:32Z | www.businessinsider.com | Here Are the Best Ways to Pitch These 6 Healthcare VCs | https://www.businessinsider.com/the-best-ways-to-pitch-healthcare-vcs-startups-founders-2022-6 | https://www.businessinsider.com/the-best-ways-to-pitch-healthcare-vcs-startups-founders-2022-6 |
Feel lonely and isolated working from home? The solution is right around the corner.
Remote workers are missing office life, and local libraries are perfectly poised to offer a solution.
I am a work-from-home veteran. Over the past 12 years of using my house as my base of operations, there are a few things I've learned that are really helpful. Among the most important is a coffee shop I can walk to — sometimes you just need a snack and contact with human beings. These little out-of-home amenities are crucial to surviving as an out-of-office worker.
Lately though, I've noticed that my neighborhood is not set up to accommodate a massive increase in remote workers. For example, there is no smaller printing shop within walking distance — I have to make the three-mile trip to the print shop at a nearby Office Max.
This is just one example of a growing problem: As the epicenter of white-collar work shifts away from the downtown office, cities need to catch up to the new class of remote workers who are now camped out in suburban neighborhoods. And in my opinion, it's the prime opportunity to elevate the humble neighborhood branch library.
Libraries have long been a resource for job seekers, with computers and an internet connection patrons can use to dust off a résumé or take classes to earn a GED. When everyone went remote, libraries stepped in with drive-up internet access. Those services will remain important as workers increasingly decamp for better opportunities as part of the Great Resignation.
But given the scale of disruption in the American workplace, there's going to be more that libraries can do to replace what the office has always provided: watercooler conversations, a place to get out of the house, and access to business services like printing. If the downtown office is truly dead, libraries could meet these needs within their communities. Freelancers, a growing class of entrepreneurs, and remote workers are looking for a convenient place to get work done while staying in touch with their communities — and libraries are a perfect solution.
Libraries as social linchpins
In his book "Palaces for the People," sociologist Eric Klinenberg argues that libraries are key social infrastructure. They help nurture social capital and "buffer all kinds of personal problems including isolation and loneliness." But he also says that the "new upper class has abandoned the project" in favor of private spaces — favoring country clubs and WeWorks instead of public pools and neighborhood libraries. Klinenberg argues that the resulting decline in social interactions and connection is undermining Americans' well-being.
The trend toward working from home could further political and social problems that stem from disconnection. Happiness expert Arthur Brooks writes at The Atlantic that he expects the rise in remote work to lead to increased isolation, depression , and loneliness. That could be especially true for the rising share of the public who live alone. But for many workers, returning to the office just doesn't make sense for them — many have moved to more affordable cities far from their home offices. And surveys show that workers prefer the flexibility of remote work. So to combat the isolation and disconnected nature of remote work, workers need places to connect with other people.
Travis Howell, an assistant professor at UC Irvine's School of Business, has researched the appeal of coworking spaces. He says that for many workers and companies with dispersed workforces, the potential for networking and collaboration is a key selling point — as is meeting space.
Melanie Huggins, president of the Public Library Association, says it might be more difficult for smaller libraries in lower-income areas to serve business users. The biggest limitation is the demand on space, she said, and accommodating additional patrons may place additional burdens on staff.
A small neighborhood library may "only have three or four meeting rooms," she said. "The sweet spot is you have to figure out what works for everybody."
She said meeting rooms could be used for everything from client meetings to telehealth visits. Adding equipment like sewing machines might serve a small business or a Girl Scout troop.
"The key is to find those services that have multiple audiences," she said.
And for libraries to deliver on their mission as places for the community, catering to everyone in the community — whether it's a freelance writer, a mom looking to keep her kids busy, or a sewing club — is essential.
Let the people eat
More than a decade ago, my friends and I in Cleveland started an informal coworking group that would meet weekly at the downtown library branch. It worked out OK for us. Being out and about and around friends — especially at a place as beautiful as Cleveland's Main Library — made working a little more fun. It would have been easy for the library to accommodate more folks like us, too. A lot of times during the day, the mid-level floors were practically deserted.
But more flexibility about food and drink could help libraries attract and serve remote workers — working from a library desk is a lot more comfortable with a cup of coffee there.
A library in Denver, Colorado recently opened a cafe offering food and drinks.
Cyrus McCrimmon/The Denver Post/Getty Images
"While some libraries are more lenient than others," Troy Lambert wrote for Public Libraries Online, "many still have a no food and drink policy, one that makes sense in certain sections (like reference rooms or special collections), but not everywhere."
Offering coffee and snacks could be a way to help libraries compete with Starbucks for nomadic laptop jockeys and college students. Lambert said that colocation with coffee shops could better serve customers and boost libraries' bottom line — whether by renting space to a private coffee shop or by selling coffee and other products themselves.
In order for libraries to become true community hubs, they might need to rethink other policies as well. Maybe every area of the library doesn't need to be silent — certain sections could allow talking and phone conversations at a reasonable volume.
Libraries as hubs for a new workforce
As we emerge from the pandemic, many remote workers are eager to escape their home offices, pushing the demand for flexible office spaces higher. Already, many libraries are trying to cater to workers newly unchained from the downtown office.
Huggins told me that many libraries were watching business trends before the pandemic. According to Work From, a publication for remote workers, about a third of libraries were offering services for remote workers and entrepreneurs as early as 2017. In 2018, Book Riot called libraries the "original coworking spaces." Formal coworking or business-incubator spaces are hosted by library systems in places like Phoenix; Columbia, South Carolina; and Akron, Ohio.
Spokane, Washington's library coworking space provides community tables with outlets and USB ports and high-quality color printing. Akron calls its space TechZone@Main. It offers entrepreneurial users a "maker space," including recording studios, a laser engraver, a vinyl printer, and green-screen room. In Cleveland, the downtown library branch offers a maker space with similar services that may be useful to hobbyists or people who work in design-related fields.
Huggins says there's no formal data about how many libraries are offering these services, but she believes it's becoming increasingly common. Google partners with the American Library Association to support a program called Libraries Serving Business, which offered $2 million to support coworking spaces in an initial round of funding at 13 library systems last year. Huggins' system in Columbia, South Carolina, even offers an "entrepreneur in residence," with office hours to support those using the library as a startup. In exchange, the entrepreneur receives a small stipend and office space.
Even though many libraries are on top of catering to a remote workforce, these services have generally been confined to downtown branches. With workers now concentrated in their neighborhoods — it's the smaller branch libraries that could fill this gap in the community.
Services like printing at branch libraries remain unnecessarily burdensome in many places. While the downtown Cleveland library offers 3D printers, my branch library is strictly no-frills. Printing something in a special size and laminating it, for example, wouldn't be possible. Expanding these basic services and providing little things at branches closer to where people live would be a huge help for small business owners and remote workers.
Libraries for the future
Libraries have always served a critical social function. Now, there's an opportunity for them to fill the social and functional voids left by the retreat from the office. Imagine spending the day working from your local library: You settle at a desk next to your neighbor who's there working on their novel; some local college students are nearby studying together for an exam; you say hello to a woman you recognize from down the street who is picking out books for her kids. When it's time for your 10 a.m. meeting, you step into a room designated for phone calls so you don't disturb anyone. For your presentation next week, you print out agendas and bind them in the business center. At 11, you pop over to the café next door for a coffee refill and run into your friend who's there with her mother. You spend the whole day working remotely, but never feel disconnected.
This is exactly the role libraries could play in the remote-work world. A key obstacle for libraries to reach this full potential is public support and funding. But if these institutions catch on to their new community needs, the support will come — it would certainly boost community support from remote workers missing aspects of office life. To catch up to the new reality of work, we have to rethink what libraries are for and who they serve.
Angie Schmitt is a writer and urban planner based in Cleveland. She is the author of Right of Way: Race, Class and the Silent Epidemic of Pedestrian Deaths in America.
More: Library work from home Remote Work Coffee | 2022-06-13T12:26:56Z | www.businessinsider.com | Feel Lonely Working From Home? Libraries Can Replace Offices for Remote Workers | https://www.businessinsider.com/work-from-home-lonely-local-libraries-solution-coworking-great-resignation-2022-6 | https://www.businessinsider.com/work-from-home-lonely-local-libraries-solution-coworking-great-resignation-2022-6 |
Google lost the battle for machine learning to Meta, insiders say. Now it's betting the future of its own products on a new internal AI project.
Google CEO Sundar Pichai speaking during a Google event in California in 2016.
Google was a trailblazer in machine learning, releasing one of the first general-use frameworks.
TensorFlow has since lost the hearts and minds of developers to Meta's AI framework, PyTorch.
Google is now betting on a new AI project internally to replace TensorFlow called JAX.
Google, in 2015, essentially created the modern-day machine learning ecosystem when it open sourced a small research project from Google Brain in 2015 called TensorFlow. It quickly exploded in popularity and made the company the steward of mainstream AI products.
But the story is very different today, where Google has lost the hearts and minds of developers — to Meta.
Once an omnipresent machine learning tool, Google's TensorFlow has since fallen behind Meta's machine-learning tool PyTorch. First developed at Facebook and open sourced in beta form in 2017, PyTorch is increasingly coming to be seen as the leader.
The chorus is the same in interviews with developers, hardware experts, cloud providers, and people close to Google's machine learning efforts. TensorFlow has lost the war for the hearts and minds of developers. A few of those people even used the exact phrase unprompted: "PyTorch has eaten TensorFlow's lunch."
Through a series of tactical missteps, development decisions, and outmaneuvering in the open source community by Meta, experts say Google's chance to guide the future of machine learning on the Internet may be slipping away. PyTorch has since become the go-to machine learning development tool for casual developers and scientific researchers alike.
Now, under the shadow of PyTorch, Google has been quietly building out a machine learning framework, called JAX (at one point an acronym for "Just After eXecution," but officially no longer stands for anything), that many see as the successor to TensorFlow.
Google Brain and Google's DeepMind AI subsidiary have widely ditched TensorFlow in favor of JAX, paving the way for the rest of Google to follow suit, people close to the project told Insider. A Google representative confirmed to Insider that JAX now has almost universal adoption within Google Brain and DeepMind.
Initially, JAX faced substantial pushback from within, people close to Google's machine learning efforts said. Googlers were accustomed to using TensorFlow, these people said. As unwieldy as it was, it was an uncomfortable unifying factor among Googlers. JAX's approach was much simpler, but nonetheless changed how Google built software internally, they said.
The tool is now expected to become the underpinnings of all of Google's products that use machine learning in the coming years, much in the same way TensorFlow did in the late 2010s, people with knowledge of the project say.
And JAX appears to have broken out of the insular Google sphere: Salesforce told Insider it had adopted it in its research teams.
"JAX is a feat of engineering," said Viral Shah, creator of the Julia programming language that experts frequently compare to JAX. "I think of JAX as a separate programming language that happens to be instantiated through Python. If you stick to the rules that JAX wants you to, then it can do its magic, which is amazing in what it can do."
Google is now hoping to strike gold again while also learning from its mistakes made in its development of TensorFlow. But experts say that will be an enormous challenge as it now has to unseat an open source tool that has won the hearts and minds of developers.
Meta did not provide a comment at time of publication.
The twilight of TensorFlow and the rise of PyTorch
PyTorch's engagement on a must-read developer forum is quickly catching up to TensorFlow, according to data provided to Insider. Engagement data from Stack Overflow shows TensorFlow's popularity measured in its share of questions asked on the forum has stagnated in recent years, while PyTorch's engagement continues to rise.
TensorFlow started off strong, exploding in popularity following its launch. Companies like Uber and Airbnb and organizations like NASA quickly picked it up and began using it for some of their most complex projects that required training algorithms on massive data sets. It had been downloaded 160 million times by November 2020.
But Google's feature-creeping and constant updates increasingly made TensorFlow unwieldy and unfriendly to users, even those within Google, developers and people close to the project say. Google had to frequently update its framework with new tools as the machine learning field advanced at a blistering pace. And the project sprawled internally as more and more people were involved, leading to a lack of focus on the parts that originally made TensorFlow the go-to tool, people close to the project said.
This kind of frantic game of cat-and-mouse is a frequent problem for many companies that are first to market, experts told Insider. Google, for example, wasn't the first company to build a search engine; it was able to learn from the mistakes of predecessors like AltaVista or Yahoo.
PyTorch, meanwhile, launched its full production version in 2018 out of Facebook's artificial intelligence research lab. While both TensorFlow and PyTorch were built on top of Python, the preferred language of machine learning experts, Meta heavily invested in catering to the open source community. PyTorch, too, benefited from a level of focus on doing a small number of things well that the TensorFlow team had lost, people close to the TensorFlow project say.
"We mostly use PyTorch; it has the most community support," Patrick von Platen, a research engineer at machine learning startup Hugging Face, said. "We think PyTorch is probably doing the best job with open source. They make sure the questions are answered online. The examples all work. PyTorch always had a very open source first approach."
Some of the largest organizations—including those that relied on TensorFlow—spun up projects running on PyTorch. It wasn't long before companies like Tesla and Uber were running their most difficult machine learning research projects on PyTorch.
Each additional feature, at times to copy the elements that made PyTorch popular, made TensorFlow increasingly bloated for its original audience of researchers and users. One such example was the addition of "eager execution" in 2017, a native Python feature that makes it substantially easier for developers to analyze and debug their code.
Enter JAX, the future of machine learning at Google
Jeff Dean, senior VP of Google AI
As the battle between PyTorch and TensorFlow played out, a small research team inside Google worked on a new framework that would make it easier to access the custom-built chips — called tensor processing units, or TPUs — that underlie its approach to artificial intelligence and were accessible only through TensorFlow.
The team researchers included Roy Frostig, Matthew James Johnson, and Chris Leary. Frostig, James Johnson, and Leary released a paper in 2018 titled "Compiling machine learning programs via high-level tracing," describing what would eventually become JAX.
Adam Paszke, one of the original authors of PyTorch during a prior stint at Facebook, also began working with Johnson in 2019 as a student, and joined the JAX team full-time in early 2020.
The new project, JAX, offered a more straightforward design for handling one of the most complex problems in machine learning: spreading the work of a large problem across multiple chips. Rather than run individual pieces of code for distinct chips, JAX automatically distributes the work. The demand came from an impressive perk of working at Google: immediate access to as many TPUs as you need to do whatever you need.
It solved a fundamental problem Google's researchers faced when working on increasingly large problems and needing more and more computational power.
Catching the wind of JAX, developers and researchers inside Google began adopting the skunkworks project. It offered a way to skip much of the developer unfriendliness of TensorFlow and quickly spread complex technical problems across multiple TPUs, people familiar with the project said.
Google's largest challenge with JAX is pulling off Meta's strategy with PyTorch
At the same time, both PyTorch and TensorFlow started in the same way. They were first research projects, then curiosities, then the standard in machine learning research. Then researchers took them out of academia and into the rest of the world.
JAX, however, faces several challenges. Its first is that it still relies on other frameworks in many ways. JAX doesn't offer a way to load data and pre-process data easily, developers and experts say, requiring TensorFlow or PyTorch to handle much of the setup.
JAX's underlying framework, XLA, is also highly optimized for Google's TPUs. The framework also works with more traditional GPUs and CPUs, though people close to the project said the project still had a ways to go for GPU and CPU optimization to reach parity with TPUs.
A Google spokesperson said the emphasis on TPUs resulted from organizational and strategic confusion from 2018 to 2021 that led to underinvestment and suboptimal prioritization for GPU support, as well as a lack of collaboration with massive GPU provider Nvidia, both of which are rapidly improving. Google's own internal research was also largely focused on TPUs, leading to a lack of good feedback loops for GPU usage, the spokesperson said.
That improvement will be critical going forward as companies look to spread their work across many different kinds of machine learning-focused hardware, said Andrew Feldman, CEO of Cerebras Systems, a $4 billion startup building large machine learning-focused chips.
"Anything done to advantage one hardware over another will immediately be recognized as bad behavior, and it will be rejected in the open source community," he said. "No one wants to be locked into a single hardware vendor, that is why the machine learning frameworks emerged. Machine learning practitioners wanted to be sure that their models were portable, that they could take them to any hardware platform they chose and not be locked in to only one."
At the same time, PyTorch itself is now almost 6 years old — well past the age where TensorFlow first started showing signs of slowing down. It's not clear if Meta's project will meet a similar fate as its Google-backed predecessor, but it could mean that the time is right for something new to emerge. And several experts and people close to the project, pointed to Google's size, cautioning critics to never count out the search giant.
More: Google Alphabet TensorFlow Pytorch | 2022-06-13T14:00:49Z | www.businessinsider.com | How PyTorch Beat TensorFlow, Forcing Google to Bet on JAX | https://www.businessinsider.com/facebook-pytorch-beat-google-tensorflow-jax-meta-ai-2022-6 | https://www.businessinsider.com/facebook-pytorch-beat-google-tensorflow-jax-meta-ai-2022-6 |
Microsoft's Bing is building a retail marketplace to rival Google Shopping and aims to drive $25 million in sales by 2023
Bing is developing a retail marketplace for e-commerce sellers to compete against Google.
It's targeting $25 million in merchandise value by the next fiscal year.
Bing's marketplace is designed to be easy to use and inexpensive but lacks Google's size.
Microsoft's search engine Bing doesn't want to be left out of the surging e-commerce market.
In recent months, Bing has quietly launched a new retail marketplace and has signed up a couple hundred US-based online sellers to be part of it, according to two e-commerce advertising firms briefed on the offering.
One of these sources said Microsoft wants its retail marketplace to get $25 million in gross merchandising value in its 2023 financial year. Gross merchandising value is a key metric that shows the value of sales on an e-commerce platform. Bing's early expectations are relatively modest – eBay's GMV in 2021 was $87 billion and Amazon's GMV in 2021 was $600 billion.
While Bing already has a shopping section called Start Shopping where people can find products and click through to buy on a retailer's website, this new marketplace, called Buy Direct, lets people click on products and buy them within Bing's platform. Sellers can set up a storefront and Microsoft handles the payment, similar to Google Shopping. Like Google, Bing charges sellers to set up a storefront, though Insider was not able to determine how much Bing charges.
Microsoft acknowledged that Buy Direct is a new product for online merchants in the US.
Also like Google, Bing's marketplace lets sellers promote products through ads, via a program called Microsoft Advertising Shopping, said the second source.
This person said that Bing is trying to lure sellers by making it as easy as possible to set up a storefront. For example, Bing can automatically upload product catalogs and port over a seller's existing Google Shopping ads, so advertisers can start advertising on Bing (and at a lower cost than Google, which has far more advertisers and users.)
The source also said Bing is pitching two ad tools that Google does not have: Microsoft-owned LinkedIn's audience data and a tool to help advertisers manage ad prices.
"What they're trying to say is, 'This is inexpensive and easy, and we also have these LinkedIn audiences that can drive efficiency," said the source.
The first source said that Bing claims it is better than Google Shopping at helping people discover products they might be interested in, because Bing lets people set their shopping preferences to show relevant products. For example, someone can choose to see fitness products or electronics. Google Shopping ranks products with its algorithm that uses factors like what terms people search for and what they've looked at in the past.
Because Bing's marketplace reaches a different audience than people who use Google search, the second source recommended sellers have storefronts on both Google and Bing.
But Bing lacks the amount of shoppers that are on Google and social platforms like Instagram.
"It's a hammer without a nail," the first source said. "Creating a retail marketplace is hard because sellers are only going to come if there are shoppers there."
Microsoft's ad ambitions have grown recently as it looks to become a bigger player alongside Google, Facebook, and Amazon in areas like search, e-commerce, streaming TV, gaming, and business-to-business advertising. Microsoft recently closed its acquisition of Xandr and has hinted that it may be looking for other acquisitions.
More: E-commerce advertising Google Shopping Microsoft | 2022-06-13T14:01:01Z | www.businessinsider.com | Microsoft's Bing Is Competing With Google Shopping With a New Retail Marketplace | https://www.businessinsider.com/microsofts-bing-competing-google-shopping-new-retail-marketplace-2022-6 | https://www.businessinsider.com/microsofts-bing-competing-google-shopping-new-retail-marketplace-2022-6 |
Mastercard formed several partnerships to let users buy NFTs directly with their cards.
The payments network wants a slice of the NFT market that it says generated more than $25 billion in sales last year.
The news: Mastercard partnered with several nonfungible token (NFT) marketplaces and web3 specialists to make it easier for customers to buy NFTs, according to a press release.
Here's how it works: Public awareness of NFTs—which certify ownership of virtual assets and are stored on a blockchain—is growing, but purchasing them can be difficult.
Mastercard wants to simplify the user experience by letting consumers use their cards to buy the digital assets on marketplaces, bypassing the usual steps of having to use a cryptocurrency wallet and purchasing crypto first.
The payments giant partnered with gaming platform The Sandbox, NFT marketplace Mintable, and web3 infrastructure provider MoonPay, among others.
Growth market or just hype? Mastercard sees significant growth potential in NFTs: It wants a slice of a market that it says generated more than $25 billion in sales last year. And by Chainalysis' data, NFTs weren't far behind the conventional art market's size in 2021. The list of companies embracing or exploring NFTs already includes the likes of Big Tech firm Meta, investment bank Nomura, Nike, and rival Visa.
But much of the public remains skeptical: YouGov found 41% of US adults had never heard of NFTs, and just 3% of adults in Great Britain said they would feel more positively about a company if it started offering the digital tokens. And those who have gotten involved with NFTs may now have buyer's remorse: Prices have tanked alongside the rest of the crypto market, and total NFT sales are down 92% from their peak last year, according to the Wall Street Journal.
The big takeaway: Mastercard's recently filed metaverse trademarks, new partnerships, and earlier Coinbase tie-up will build its presence in the NFT market and the broader digital asset space while also giving a potential volume boost if customers swap crypto wallets for payment cards. The company thinks the demand is there: A recent survey from the firm found 45% of people had purchased an NFT or would consider doing so.
Mastercard can add more flexibility and familiarity to the process of buying NFTs, which could bring in new customers who don't trust crypto and are put off by blockchain tech's complexities. But it's not on a glide path to success: Many still consider the assets to be volatile in value, hard to understand, and largely unregulated. | 2022-06-13T15:32:12Z | www.businessinsider.com | Mastercard Partners With NFT Marketplaces and Web3 Specialists | https://www.businessinsider.com/mastercard-partners-with-nft-marketplaces-and-web3-specialists-2022-6 | https://www.businessinsider.com/mastercard-partners-with-nft-marketplaces-and-web3-specialists-2022-6 |
Trump campaign manager Bill Stepien stands alongside then-US President Donald Trump as he speaks with reporters aboard Air Force One as he flies from Manchester, New Hampshire to Joint Base Andrews in Maryland, August 28, 2020, following a campaign rally.
Stepien was former President Donald Trump's 2020 campaign manager.
Stepien's attorney said his wife went into labor Monday morning.
Stepien was expected to testify that he told Trump pushing election fraud wouldn't work.
One-time Trump campaign manager Bill Stepien pulled out of testifying before the January committee on Monday because his wife went into labor.
Stepien, who had been scheduled to appear at the House panel's second public hearing into the deadly siege at the US Capitol, withdrew from the appearance attorney Kevin Marino said after he was notified of the family emergency.
"Mr. Stepien was in town and preparing for his testimony here today in response to a subpoena when he got a call that his wife had gone into labor. He notified committee council and he immediately headed to hospital to be with her," Marino told C-Span.
The committee planned to proceed, per media reports, by showing clips of Stepien's videotaped deposition.
Stepien was Trump's 2020 campaign manager. He was expected to testify about former President Donald Trump's efforts to overturn the 2020 election results after losing to Joe Biden. The New York Times reports that during a meeting on November 7, 2021 where Trump was pushing his baseless claims of election fraud Stepien laid out the "exceedingly low odds of success with his challenges."
Stepien is currently serving as a campaign advisor to House hopeful Harriet Hageman, the Trump-endorsed candidate attempting to unseat January 6 select committee co-chair Liz Cheney this August in Wyoming's GOP primary.
More: Donald Trump Bill Stepien Liz Cheney Harriet Hageman | 2022-06-13T15:54:08Z | www.businessinsider.com | Trump's Former Campaign Manager Skips Testifying Due to Child's Birth | https://www.businessinsider.com/trump-campaign-manager-bill-stepien-skips-january-6-testimony-childbirth-2022-6 | https://www.businessinsider.com/trump-campaign-manager-bill-stepien-skips-january-6-testimony-childbirth-2022-6 |
Rep. Don Beyer is seen outside the Capitol before the last House votes of the week on Friday, December 6, 2019.
At least one House Democrat favors an aggressive tax on AR-15 style weapons to prevent mass shootings.
It's not the first time that Democrats eyed a tax as a method of curbing gun violence.
Others who favored such taxes in the past include Sen. Elizabeth Warren.
Rep. Donald Beyer of Virginia, a member of the tax-focused House Ways and Means Committee, has put forward a plan to levy a 1,000% excise tax on manufacturers, importers, and producers of AR-15 style weapons that's designed to pass Congress with only Democratic votes.
It's not the first time that type of plan has been proposed to reduce gun violence, though this one is meant to severely restrict access to semi-automatic weapons and prevent mass shootings. Other Democrats have previously pushed new gun taxes to reduce gun deaths overall.
In 2019 and 2020, two Democrats introduced similar measures to raise gun taxes, though not at the enormous scale Beyer wants.
Both Rep. Hank Johnson of Georgia and Sen. Elizabeth Warren of Massachusetts put forward plans to triple the existing tax on handguns to 30% and nearly quintuple the current tax rate on shells and cartridges to 50%. It came on the heels of deadly mass shootings in El Paso, Texas, and Dayton, Ohio.
"Increasing taxes on gun manufacturers will reduce gun and ammunition sales and bring in new federal revenue that we can use for both gun violence prevention and enforcement of existing gun laws," Warren wrote on Twitter at the time. "Together, we can hold gun manufacturers accountable."
It reflected a strong desire within the party to address gun violence after earlier efforts to tackle it went nowhere in Congress. The measures failed to break the stalemate around gun violence with Republicans staunchly opposed to them. Warren has signaled interest in the Beyer plan.
There is one big difference between the Warren and Beyer plan. Warren's proposal was part of a multi-pronged effort to decrease overall shooting deaths by 80% and not curb mass shootings in particular. The Beyer measure is focused on specifically restricting access to AR-15-style weapons, the kind used by gunmen in a string of high-profile shootings in New York, Texas, and Oklahoma recently.
Other Democrats previously pushed hefty tax increases on guns and ammunition to make them unaffordable. Sen. Daniel Patrick Moynihan of New York said in 1993 that he wanted to tax handgun ammunition "out of existence" to curb crime, The New York Times reported.
He called for a 10,000% tax on ammunition, though he would have exempted bullets used for target shooting and hunting.
Congress may be on the verge of a breakthrough after many years of GOP resistance to tackling gun violence. A bipartisan group of senators announced a tentative deal on a slim package of gun safety measures on Sunday that would channel new federal money into mental health initiatives and strengthening school security. It includes ten Senate Republicans — the amount of support needed to cross the 60-vote filibuster threshold in the Senate.
It would also establish federal grants for states to implement so-called "red flag laws" allowing authorities to briefly seize weapons from individuals who are a threat to themselves or others under court orders. But it falls far short of what many Democrats wanted, like an outright ban on semi-automatic AR-15-style weapons.
More: Policy AR-15 tax Congress Republicans | 2022-06-13T16:59:28Z | www.businessinsider.com | Democrats Have Pitched Gun Taxes to Tackle Shootings in the Past | https://www.businessinsider.com/democrats-gun-taxes-tackle-shootings-in-the-past-2022-6 | https://www.businessinsider.com/democrats-gun-taxes-tackle-shootings-in-the-past-2022-6 |
I make 6 figures as a freelance consultant working less than 25 hours a week. Here's how I've maximized my productivity.
Brina Patel
Vip Sitaraman.
Vip Sitaraman
Vip Sitaraman started freelancing in college after his infographics blog rose in popularity.
By 20, he had graduated college, fundraised for his media startup, and pivoted back to freelancing.
Here are his tips for making six figures annually juggling 100 clients, as told to Brina Patel.
This as-told-to essay is based on a transcribed conversation with Vip Sitaraman, a 24-year-old consultant and entrepreneur. It has been edited for length and clarity. Insider has verified Sitaraman's revenue with documentation.
I've had over six years of freelancing experience, and during that time I've worked full-time jobs and launched startups. But I always come back to freelancing.
I was 16 years old and about to start a premed undergraduate program two years early when I launched Draw Science, an infographic-based science blog. This was the summer of 2014.
The blog became popular, and scientists started contacting me to design infographics for their articles. I wanted to make the blog an open-access science and engineering platform where the public could examine "fresh from the lab bench" results.
Through the blog, I collaborated on infographics with American Scientist, Wiley, and Elsevier, among other publications. That was my first exposure to freelancing.
Fast-forward to the middle of my freshman year, and entrepreneurs in the tech domain started reaching out asking me to consult on design and data presentation. I still work with several of them.
In the nascent days of my career, I didn't engage in much marketing — most of my work was and still is based on referrals.
During this time, my work pulled me into the startup sphere. After graduating college two years early, at 18, I raised $1.8 million in funds for Explica, a visual news-media startup I founded while studying.
It became a huge success, amassing over 10 million monthly readers in its prime.
I resumed freelance consulting when I left Explica in 2018 at age 20. Most of my work now covers creating and advising on pitch and investor decks and product and user-interface design for mobile apps and websites.
I tried full-time consulting for five months in 2020. I was a senior business designer at a New York firm, but sitting in an office and feigning productivity never felt right.
Having more than one creative outlet has had positive effects on my versatility and ingenuity. I've been freelancing now for over six years.
I value a flexible schedule that allows me to take breaks and work on other projects. My sister is a musician, so I enjoy collaborating with her. If I want to go for a run or spend time with my dog, I can do that.
I'm obsessive when it comes to tracking my productivity. I mainly use Toggl Track and a customer-management tool I created to keep tabs on my work pace and identify time sucks.
On weekdays, I log nine to 10 hours of work a day, with up to half of this time devoted to freelancing. The rest goes toward other projects and business ventures I'm juggling.
Here are my tips for staying productive.
Use 'scary hour' to prioritize work effectively
Creating a "scary hour" means setting aside an hour of your day when your energy and focus are at their highest to tackle your most daunting task.
Before I start work, I'll carve out an hour — roughly 9 to 10 a.m. — to home in on my top-priority task, which I choose the night before.
Client work can overwhelm you and keep you from tasks like updating sales pages and portfolios on your website that are integral to running a freelance business.
Setting aside an hour first thing to do things like update your website means these high-stakes, but seemingly less urgent, tasks don't build up as you get inundated with clients' requests.
Making sure you get these important administrative tasks done before clients' more urgent requests come in sets you up to stay productive and on top of your day-to-day business maintenance
Prevent over communication from clients
I work 100% remotely with about 100 clients annually from all over the world. I, therefore, need a highly efficient approach toward collaborating on projects and onboarding new clients.
I rely on asynchronous communication like message boards, using Loom for feedback, Airtable forms for onboarding, and Google Drive for comments. These tools eliminate the need for meetings, quick calls, or lengthy discussions.
I've tried adopting the email blocking that Tim Ferris mentions in "The 4-Hour Workweek," where I batch all of my email activities for two 30-minute or one-hour time slots throughout the day.
It's trickier to do as a freelancer since you want to respond promptly to clients, but I'm trying to cut down on emails.
Make a 'Don't Do' list and stick to it
A don't-do list, a concept I adapted from Katelyn Bourgoin, goes hand in hand with reducing communication overload.
I have a list of things I don't do: projects I don't take on or unacceptable red-flag behaviors from clients. I stopped offering specific deliverables like infographics, for instance, because they weren't profitable enough.
Working on projects with new clients slows me down because I don't know their workflow. I have a rule against simultaneously starting two projects with new clients.
My don't-do list is long, and I've continually added to it as I figure out what aligns with my goals. Doing so has doubled my hourly rate for consulting work because that hour is more productive and makes my days more enjoyable.
Some of the pleasure can get sucked out when you monetize your creative pursuits. The creative process is less organic when trying to optimize for time and hourly rates.
The don't-do list has helped me counter this. I spend more time on products and projects that I feel passionate about, leading to results I feel prouder of.
More: UK Freelance contributor 2022 BI-freelancer
entrepeneur | 2022-06-13T16:59:34Z | www.businessinsider.com | I'm a Freelance Consultant Who Makes 6 Figures Working 25 Hours a Week | https://www.businessinsider.com/freelance-consultant-six-figures-25-hour-work-week-productivity-tips-2022-6 | https://www.businessinsider.com/freelance-consultant-six-figures-25-hour-work-week-productivity-tips-2022-6 |
Trump rejected his campaign experts' advice on election night in 2020, Rep. Liz Cheney said.
Instead, he relied on his "apparently inebriated" personal lawyer Rudy Giuliani's counsel, she said.
Giuliani recommended that Trump "just claim he won and ... falsely claim everything was fraudulent," she said.
Former President Donald Trump rejected his campaign advisors' guidance on election night in 2020 and instead relied on counsel from his former personal attorney, "an apparently inebriated" Rudy Giuliani, Rep. Liz Cheney said.
Testimony will show that Trump followed Giuliani's recommendation "to just claim he won and insist that the vote counting stop, to falsely claim everything was fraudulent," Cheney said on Monday, during the second hearing by the House select committee investigating the January 6 attacks on the US Capitol.
The committee aims to present a seven-part plan by Trump to overturn the 2020 election. Monday's hearing is focused on Trump's efforts to convince Americans that the election was stolen by overwhelming voter fraud, despite evidence to the contrary.
"He falsely told the American people that the election was not legitimate," Cheney said. "In his words, quote, 'A major fraud.' Millions of Americans believed him."
Giuliani is among members of Trumpworld who met virtually with committee officials, according to exhibits during Monday's hearing.
Much has been written about Giuliani drinking allegations, which Giuliani told POLITICO in 2018 is "extremely insulting." He acknowledged being a social drinker but said he doesn't have alcohol early in the day.
"I'm not drinking for lunch," he told POLITICO then. "I may have a drink for dinner. I like to drink with cigars."
Trump's advisors, however, believed he was usually drunk and near senile, according to to "Landslide: The Final Days of the Trump Presidency" by Michael Wolff.
"Giuliani was, many around Trump believed, always buzzed if not, in the phrase Steve Bannon made famous in the Trump White House, hopelessly 'in the mumble tank,'" Wolff wrote in his book. "Many believed he had the beginnings of senility: focus issues, memory problems, simple logic failures. A vast disorganization of papers and files and tech malfunctions followed in his wake."
Last year, federal agents searched the home and office of Giuliani, who tried to dig up dirt from Ukrainian officials on the Biden family.
The former federal prosecutor, mayor of New York City and Republican presidential candidate now faces professional ethics charges by the District of Columbia Bar for allegations of promoting unsubstantiated voter fraud in Pennsylvania. His law license has been suspended in New York and the District of Columbia.
More: Rudy Giuliani Donald Trump January 6 commitee hearings capitol riot | 2022-06-13T16:59:46Z | www.businessinsider.com | Cheney: Giuliani 'Apparently Inebriated' While Advising Trump on Election Night | https://www.businessinsider.com/liz-cheney-rudy-giuliani-apparently-inebriated-advising-trump-election-night-2022-6 | https://www.businessinsider.com/liz-cheney-rudy-giuliani-apparently-inebriated-advising-trump-election-night-2022-6 |
US Attorney General Bill Barr is pictured on October 15, 2020.
Jeff Roberson/Pool/AFP via Getty Images
Former AG Bill Barr mocked and trashed the conclusions of film "2,000 Mules."
The film, made by Dinesh D'Souza and True The Vote, claims fraud took place at ballot drop boxes.
Barr called the film, which has also been panned by experts, as "unimpressive" and "indefensible."
Former Attorney General Bill Barr mocked the premise of "2000 Mules," a conspiratorial movie that purports to show massive fraud with ballot dropboxes in the 2020 election. The film has been widely panned by experts and fact-checkers.
The committee's hearing on Monday focused on the election lies President Donald Trump Trump and his allies spread to discredit the 2020 election results. The hearing featured extended clips from Barr's sworn deposition before the committee.
"The election was not stolen by fraud, and I haven't seen anything since the election that changes my mind on that, including the '2000 Mules' movie," Barr said in his deposition, laughing.
The film, made by conservative activist Dinesh D'Souza and conservative election-focused group True The Vote, uses surveillance footage, photographs, and geolocation data from cellphones in key swing states to argue that people -- the "mules" -- committed election fraud by essentially stuffing ballot dropboxes with fraudulent ballots.
But election experts say that the evidence presented by the filmmakers isn't enough to show widespread improper activity with dropboxes, much less a conspiracy to steal the election.
"The [Georgia Bureau of Investigation] was unimpressed with it. I was similarly unimpressed with it," Barr said.
"The cellphone data is singularly unimpressive," Barr added. "Basically, if you take 2 million cellphones and figure out where they are physically in a big city like Atlanta or wherever, by definition, you're going to find many hundreds of them that have passed by and spent time in the vicinity these boxes. And the premise that if you go buy five boxes or whatever it was, that that's a mule, is indefensible."
—Adam Klasfeld (@KlasfeldReports) June 13, 2022
The Associated Press' in-depth fact check of the movie described the film as "based on faulty assumptions, anonymous accounts and improper analysis of cellphone location data, which is not precise enough to confirm that somebody deposited a ballot into a drop box, according to experts."
One reason that cellphone data is an imperfect measure of how many ballots are dropped off at a dropbox is that many ballot dropboxes are located in high-trafficked, easily-accessible public spaces like libraries, town halls and other government buildings, and even grocery stores.
President Donald Trump's spokeswoman Liz Harrington also asserted that the cellphone data collected by the makers of "2,000 Mules" helped solve the murder of a young girl in Atlanta, a claim discredited by True the Vote themselves, who acknowledged to NPR they contacted law enforcement two months after arrests had already been made in the murder.
Barr described the photographic evidence in the film as "lacking" and noted that even if the filmmakers had shown that so-called ballot harvesting occured, it wouldn't be enough to prove that those votes were fraudulent or would have swung the result of the election.
"Courts are not gonna throw out votes and then figure out what votes are harvested and throw them out," Barr said in his deposition. "The burden is on the challenging party to show that illegal votes were cast, that the votes were the result of undue influence or bribes...absent that evidence, I didn't see courts throwing out votes anyway."
D'Souza slammed the committee and Barr in a number of tweets, calling Barr ignorant and "a fat guy."
"The debunkers have themselves been thoroughly debunked. And all of them are too cowardly to debate the issue with me. As is the January 6 Committee," D'Souza wrote in a subsequent tweet.
More: January 6 committee Bill Barr | 2022-06-13T18:32:38Z | www.businessinsider.com | Bill Barr Mocks '2000 Mules' Film in Jan. 6 Deposition | https://www.businessinsider.com/bill-barr-mocks-2000-mules-film-january-6-deposition-video-2022-6 | https://www.businessinsider.com/bill-barr-mocks-2000-mules-film-january-6-deposition-video-2022-6 |
15 great books by Black authors that don't center on trauma, from romance novels to thrillers
By Jatelia Lewis
From entertaining rom-coms to engrossing fantasy series, all of these books center on Black characters without focusing on trauma.
Black voices should always be supported and amplified year-round, but with Juneteenth approaching, now is an even better time to add books by Black authors that do not involve Black pain or trauma to your "to read" list.
Diving into a book to escape the world before you, only to be met with the suffering of Black characters happens more often than not. As a result, Black trauma in literature is a topic that also reigns heavy in the book community. While there are plenty of necessary books that depict systemic and historical racism (and the generational trauma that Black people experience as a result), there are other works written by Black authors that inspire, entertain and make us jump out of our seats, going beyond the narratives of Black pain.
It's imperative to branch out and seek books with Black characters whose only responsibilities are to be human — enjoying life, falling in and out of love, reuniting with friends, healing family bonds, landing dream careers, or even disposing of the bodies of their sister's dead boyfriends.
Here are 15 books by Black authors that aren't trauma-centered:
“It's Not All Downhill From Here” by Terry McMillan
Lortha Curry is someone whose life you would aspire to have. At 68, she has it all — a successful beauty supply business, a loving husband, and enough true friends to go around. Of course, a life like this comes with mishaps and jealousy, but that doesn't stop her. Even when she is faced with life's relentless problems, she's determined to show those around her that regardless of age, there's still so much that life has to offer.
"My Sister, the Serial Killer" by Oyinkan Braithwaite
Sisters Korede and Ayoola are inseparable. Ayoola is charming and attractive enough to have any guy she wants, and as the big sister, Korede will do whatever it takes to protect Ayoola — even if that means disposing of the bodies of Ayoola's victims who also happen to be her boyfriends. As if the fear of being caught isn't enough, Korede becomes conflicted once Ayoola begins to date a doctor from the hospital where Korede works — the same doctor who Korede has been secretly in love with.
"While We Were Dating" by Jasmine Guillory
Available at Amazon and Bookshop, from $9
In the sixth book of the "Wedding Date" series — a series of rom-coms that can be read as standalone stories — we are introduced to Ben Stephens, a flirty guy who works at an advertising agency, and Anna Gardiner, a strong-minded movie star who's eager to elevate her career. When Ben and Anna are set to work together for an ad campaign, harmless flirting is inevitable. Their connection is proven to be authentic when a family emergency strikes, but things become questionable and risky with the pressure to put on more for the cameras.
“Rosewater” by Tade Thompson
Rosewater is a town situated around the edge of an alien biodome. Rumors of the healing powers the dome possesses can't keep the town's residents away from it with their bubbling curiosities. Kaaro is a government agent and ex-criminal with psychic abilities who could care less about the dome after getting a glimpse of it. That soon changes when people like him are being mysteriously murdered and Kaaro knows he needs to search for answers — even if this means defying orders and uncovering his dark past.
"Rosewater" is the first book of "The Wormwood Trilogy."
"How Far You Have Come" by Morgan Harper Nichols
In this collection of poetry and essays, Morgan Harper Nichols pieces together the right words and eye-catching illustrations to remind readers to celebrate how far they've come in the midst of life's uncertainties.
"When You Were Everything" by Ashley Woodfolk
Cleo and Layla were once best friends, but nearly a month has passed since the two have fallen out. The drama begins to unfold when one is assigned to tutor the other in this uplifting story about friendship, loss, and love.
"Blacktop Wasteland" by S. A. Cosby
Former getaway driver, Beauregard "Bug" Montage, has built a life of being a grounded husband, father, and business owner. But his life soon comes crumbling down while being flooded with overdue bills, a decline in business, and disheartening family obstacles. When someone from his past contacts him about one final heist, he feels he has no choice but to take the driver's seat once again.
"Get A Life, Chloe Brown" by Talia Hibbert
The first book of "The Brown Sisters" series introduces readers to Chloe Brown, a computer geek with a chronic illness who also happens to come from a wealthy family. After nearly dying, she makes a list of goals to accomplish that support her entering the rebel era that she believes will help her get the most out of life. Who else better to help her out than Redford 'Red' Morgan, the artist she occasionally spies on with tattoos, a motorcycle, and incredible sex appeal. But on this journey, Chloe begins to learn more about Red and all his layers.
"Legendborn" by Tracy Deonn
Bree Matthews is 16-years-old and just lost her mother in an accident. Needing to escape, she attends an early college program where her world is flipped upside down. She witnesses a magical attack by a demon trying to feed off human energies. She learns of the secret society of Legendborn students that hunt these creatures. And if that isn't enough, a mage attempts to wipe her memory of the incident. As a result of his failed attempt, Bree has a vision of her mother's death and another mage is discovered to have been at the hospital when she died. Bree will do whatever to uncover the truth — even if that means becoming a Legendborn initiate.
"Legendborn" is the first book of "The Legendborn Cycle."
"sour souls" by Teni Adebayo
"sour souls" is a poetry collection that portrays the themes of healing, grace, love, and forgiveness. The writer is transparent about her experiences with anxiety, comparison, and loneliness, but sprinkles in reminders that there will always be hope.
"Miss Pearly's Girls" by ReShonda Tate Bilingsley
Four estranged sisters are brought together when their mother, Miss Pearly Bell, falls terminally ill in this family drama. The oldest sister, Maxine, has seriously devoted herself as the wife of a pastor. Stella has become a PR professional, but her relationship with her completely opposite twin, Star, is everything but stable. The youngest, Leslie, has taken up a new life and relationship. Miss Pearly desperately wants her daughters to heal their relationship with one another, but this would mean uncovering lies, betrayals, and secrets held by each daughter.
"I Know What You've Done" by Dorothy Koomson
In this spine-tingling thriller, Rae is left shaken when her neighbor, Priscilla, appears at her front door and hands her a diary full of their neighbors' darkest secrets just before collapsing. Thinking it'd be best to turn the book over to the police, Rae is hesitant to do so after seeing her husband's name written in it. Now, she must find out what everyone's secret is — including his.
"How to Fail Flirting" by Denise Williams
In this seriously hot and fun romance, Naya Turner is a typical overachiever and professor devoted to her career. But getting over a previous abusive relationship has put Naya on edge for a while. After being convinced to step out and get back into dating, she meets Jake at a bar. Mindless flirting leads to a full-blown romance. Little does Naya know that Jake holds a powerful position that could ultimately alter her entire career.
"Beasts of Prey" by Ayana Gray
In this young adult fantasy, Ekon and Koffi, two teenagers from opposite spectrums of the social order set in Lkossa, join forces to protect their city from a legendary monster, the Shetani. They must embark into the Greater Jungle where the Shetani kills anyone who enters. Their quest reveals a greater purpose as they encounter deadly creatures, a cursed woman, and secrets that must be unleashed.
"Beasts of Prey" is the first of a series.
“becoming.” by Renaada Williams
"becoming." is a collection of poetry consisting of six chapters and explores the themes of feminism, sexuality, race, and mental health. The writer guides us through personal and relatable lessons, like overcoming heartbreak and embracing self-love. The poems are meant to highlight that although life's experiences can be disheartening, we can still find beauty, joy, encouragement, and fulfillment. Likewise, even tough situations and cloudy feelings play an important role in the process of becoming.
Jatelia Lewis
Jatelia Lewis is a Story Production Fellow at Insider.
More: Insider Reviews 2022 Insider Picks Insider Picks Guides IP Roundup
Black authors | 2022-06-13T18:32:50Z | www.businessinsider.com | 15 Best Books by Black Authors That Focus on Black Joy for Juneteenth | https://www.businessinsider.com/guides/learning/books-by-black-authors-black-joy | https://www.businessinsider.com/guides/learning/books-by-black-authors-black-joy |
The highest savings account rates this week: More online banks like Quontic and Ally raise rates on accounts
1% APY
Ally High Yield Savings Account
If you'd like to open a high-yield savings account with $0 or are looking for an account with budgeting tools
Barclays Online Savings Account
If you'd like to open a high-yield savings account with $0
TAB Certificate of Deposit
More online banks are raising interest rates on savings accounts and CDs. For example, in the last week, Ally increased the rate of its Ally High Yield Savings Account to 0.90% APY, and Quontic Bank is now paying 1.26% to 2.86% APY on CDs.
Our best savings accounts guide and best CDs guide can be great starting points in your research. But if you prioritize finding the highest rates above all else, then this list is for you.
For CDs, the average interest rate may depend on the term you choose. The average interest rate for 1-month is 0.03% APY, and the average interest rate for a 60-month CD is 0.39% APY.
The most competitive high yield savings accounts pay around 1% APY right now, while CDs may offer up to 3% APY.
Keep in mind interest-bearing accounts may change. Savings accounts have a variable interest rate, which means that the rate may fluctuate at any time. CDs usually have a fixed interest rate. This means you'll usually be locking in a rate for a specific period of time.
High APY
Savings buckets help you save for different goals
Surprise savings transfers help you save extra money from your checking account
No physical branch locations
No way to deposit cash
Create separate savings buckets in a savings account
Link to your Ally checking account and enroll in surprise savings transfers to have extra money transferred to savings three times per week
High-yield savings accounts are great tools if you'd like to earn some interest on your savings. The Federal Reserve also has increased the federal funds rate twice so far since March, so savings interest rates are also expected to steadily increase throughout 2022.
Ally, Barclays, Citi, LendingClub, Salem 5 Direct, Bread Savings, and BrioDirect are offering some of the highest interest rates on savings accounts right now.
Ally is featured in many of our best savings account guides. It recently increased its savings rate 0.90% APY.
You might like to bank with Ally if you'd like to open a bank account with budgeting tools. The Ally High Yield Savings Account allows you to save for individual goals through savings buckets. You may label savings buckets as an "Emergency Fund," "Travel Fund," or enter your own goal.
Meanwhile, the Barclays Online Savings Account might be a good option if you'd like to open a high-yield savings account with $0. Bear in mind that you'll have limited access to your account, though. The only way to deposit or withdraw money is by using an external bank account.
Citi® Accelerate Savings might be worth exploring if you live in a state where the account is available. The account is not available in the following states: California, Connecticut, some parts of Florida, some parts of Illinois, Maryland, Nevada, New Jersey, New York, Virginia, or Washington, DC.
Live Oak has CD terms from 6 months to 5 years. It stands out for its competitive interest rates and low early withdrawal penalties, but you'll need at least $2,500 for an initial deposit. Most banks usually require a minimum of $1,000.
While the Popular Direct Certificate of Deposit didn't make it into any of our best-guides, it still could be great if you already intend to open a CD with more than $10,000. You'll want to pay attention to the CD early withdrawal penalties though because some terms have high penalties.
Salem Five Direct
Ally high-yield savings account
TAB Bank CD | 2022-06-13T18:33:02Z | www.businessinsider.com | The Highest Savings Account and CD Rates This Week: June 13, 2022 | https://www.businessinsider.com/personal-finance/best-savings-account-rates-this-week-june-13-2022-6 | https://www.businessinsider.com/personal-finance/best-savings-account-rates-this-week-june-13-2022-6 |
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