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Mark Zuckerberg says Facebook will 'steadily reduce' the number of employees over the next year
Facebook appears set to cut employees from its workforce. Teams "will shrink," Mark Zuckerberg said.
He added on an earnings call that he expects the company to "get more done with fewer resources."
The company could reduce headcount this year by as much as 10%, Insider reported earlier this week.
Mark Zuckerberg plans to reduce the number of his employees over the next year, saying he expects Facebook to do "get more done" with less going forward.
Facebook will "steadily reduce headcount growth over the next year," and "many teams" already in place at the company "will shrink so we can shift energy to other areas inside the company," Zuckerberg said on Wednesday during Facebook's second quarter earnings call. The company, which changed its corporate name to Meta Platforms, reported its first ever revenue decline of 1% compared to the same time last year.
Insider this week reported that significant cuts to headcount are in the works at the company, with a reduction of as much as 10% of overall headcount possible this year. Zuckerberg said while the company went on a hiring spree earlier this year, he expects overall headcount to "decline over time."
"This is a period that demands more intensity and I expect us to get more done with fewer resources," Zuckerberg said. "I think we'll come through this period as a stronger and more disciplined company."
Shares of Facebook fell only 2.7% in after hours trading. Next quarter could see another round of revenue decline, with Facebook expecting flat growth on the high end of the guidance offered in its quarterly report.
Facebook has been attempting to dial back spending and has drastically slowed hiring after about two years of hyper growth during the pandemic.
Facebook has dealt with various roadblocks lately. It is seeing waning use of its core Facebook app while facing massive competition with the growth of TikTok. On top of that, it's rebuilding its ad infrastructure in the wake of Apple allowing its users to opt-out of online tracking.
As of this week, it's looking at a lawsuit from the Federal Trade Commission over acquiring Within. The acquisition is part of Meta's plan to build the "metaverse," an immersive digital world Zuckerberg sees as the future of the internet and his company. But its a long way off from making money. The segment just lost another $2.8 billion, and Zuckerberg has said repeatedly the metaverse likely won't make money until the end of the decade, at the earliest.
Still, the company has hopes for Reels, a product that competes with TikTok. Facebook COO Sheryl Sandberg, who will step down from the company, said of Reels in her last earnings call: "We see significant potential for growth in the future."
"Meta has shown time and time again we're a company of incredible resilience," Sandberg added.
Are you a Facebook employee or do you have insight to share? Contact Kali Hays at khays@insider.com, on secure messaging app Signal at 949-280-0267, or through Twitter DM at @hayskali. Reach out using a non-work device.
NOW WATCH: Early Facebook investor said his first awkward meeting with Mark Zuckerberg was 'unlike any I've ever been in'
More: Facebook facebook earnings Meta Mark Zuckerberg
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2022-07-27T22:54:39Z
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www.businessinsider.com
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Mark Zuckerberg Says Facebook Reduce Headcount, Shrink Teams This Year
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https://www.businessinsider.com/facebook-layoffs-job-cuts-meta-mark-zuckerberg-2022-7
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https://www.businessinsider.com/facebook-layoffs-job-cuts-meta-mark-zuckerberg-2022-7
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Tim Cook has been taking shots at Mark Zuckerberg for years. It's working.
Meta's Mark Zuckerberg, left, and Tim Cook of Apple.
MANDEL NGAN/AFP via Getty Images;Xinhua/Liu Jie via Getty Images;Insider
Meta said Apple's recent privacy update is continuing to cause "headwinds" for its ad business.
Some Meta insiders feel Apple deliberately targeted Facebook with the update.
Apple's own profitable ad business is growing at a clip — and experts think it could further tighten the privacy screws.
Apple CEO Tim Cook only rarely publicly refers to Facebook or Meta by name — but it's never hard to tell when he's taking a thinly veiled swipe at his Silicon Valley counterpart Mark Zuckerberg.
"The truth is, we could make a ton of money if we monetized our customer — if our customer was our product. We've elected not to do that," he said in an interview with MSNBC in 2018.
Asked how he would have dealt with Facebook's Cambridge Analytica data-leak scandal differently: "I wouldn't be in this situation."
Same subject; different interview: "I think that this certain situation is so dire and has become so large that probably some well-crafted regulation is necessary."
In a way, Apple took regulation into its own hands.
Apple's App Tracking Transparency update last year — which forced developers to ask users for permission before tracking them — sent shockwaves throughout the entire mobile ad ecosystem.
Most users opted out from tracking, making it harder for advertisers to precisely target and measure the effectiveness of their ads.
Meta on Wednesday reported its first year-on-year decline in quarterly revenue. While executives on its earnings call largely focused the blame for that on macroeconomic changes, Meta CFO Dave Wehner also referred to "Apple iOS challenges."
Meta, whose explosive revenue growth over the past few years had been intrinsically tied to its data-driven ad business, has been hit harder than most. By one external estimate ATT will wipe $12.8 billion from Meta's annual revenue this year.
Some Meta insiders don't think that's a coincidence.
"The feeling inside Facebook — and that I have heard from others in the industry — is that Apple very much targeted Facebook with these changes," said a former senior Meta exec. "Initially it started as the 'privacy'-type PR moment, but then they saw that it really caught on with consumers: Easy win to build their brand and hamper Facebook's growth."
As Meta's ad business falters, Apple's ad unit is taking off, albeit from a much smaller base. Omdia Principal Analyst Matthew Bailey estimates Apple's search ads business grew 238% to $3.7 billion between 2020 and 2021. Bank of America Global Research Analyst Wamsi Mohan forecast this month that Apple's ad business could bring in $20 billion in ad revenue by 2026 from an estimated $5.3 billion this year if it extended serving ads within its App Store to its full suite of products and services.
"It's absolutely a rocket ship — I think they are thrilled," said a former Apple employee who still speaks with people who work on its ads team. "The profit margins are completely off the earth."
Spokespeople for Apple and Meta didn't have a comment for this story.
Meta is racing to build new ads infrastructure — but it's a work in progress
The idea for ATT was drawn up at the very top levels of Apple's leadership team beginning around 2019, according to The Information. The intention was to figure out a technological solution to clamp down on companies egregiously using Apple's Identifier for Advertisers to sell the profiles of unwitting users to data brokers, according to the report.
Inside Meta, there had been informal discussions in the years preceding Apple's ATT announcement that the data signals it relied on for its ad business had an uncertain future. However, said a separate former Meta staffer, there had been inertia to invest heavily in solutions to mitigate the impact of potential restrictions because platforms like Apple hadn't yet provided roadmaps for when any changes would occur.
"You're not going to divert a huge swath of your expensive engineering resource to develop a parallel, alternative solution — and it would, by definition, be inferior to the existing system," said the ex-Meta source. "What if Apple or Google didn't enact any changes? You'd be left with a mothballed alternative that was quickly becoming obsolete."
An app displaying the App Tracking Transparency prompt.
When Apple dropped the ATT bomb at its Worldwide Developers Conference in June 2020, Meta assured investors and advertisers that it had the situation in control.
Meta CFO Dave Wehner said on a company earnings call that the impact to its own business would be "manageable" and that it was building targeting and measurement products to help advertisers work through the changes. In an interview that month, Zuckerberg said "I think it's possible that we may even be in a stronger position" after Apple rolled out the update.
Meta execs began a crusade that it said was on behalf of small businesses – including running ads in several national newspapers declaring: "We're standing up to Apple for small businesses everywhere."
"I don't think this moment is really about privacy," Steve Satterfield, Facebook director of privacy and public policy told Insider in a December 2020 interview. Satterfield said the prompts asking users for permission encouraged them to opt out, "which is going to push people and businesses toward business models that help Apple's bottom line, which are business models that rely on subscriptions and in-app payments."
Cook has batted away suggestions Apple targeted Meta
Cook, the he Apple CEO, said in an interview with The New York Times last year that he is "not focused on Facebook" and that its privacy changes were "not aimed at a company, it's aimed at a principle." At the time of the "standing up to Apple" campaign, he tweeted that Meta could continue tracking users just as before, so long as iOS users gave their permission. (As of May this year, just 25% of all app users were opting into tracking, according to mobile analytics firm Flurry.)
—Tim Cook (@tim_cook) December 17, 2020
Behind the scenes, Meta has been racing to build new advertising infrastructure and it has warned advertisers that disruption was to be expected as it embarked on a multiyear effort to retool its ad software with more privacy in mind. But some ad buyers have said the Facebook ads platform has been buggy and unpredictable in recent months.
By February 2022, Meta said Apple's new policy would cost it $10 billion in lost ad revenue.
To be sure, Meta isn't the only company challenged by Apple's privacy changes. Snap and Google's YouTube both cited ATT as a "headwind" in their most recent-quarterly earnings. Competition in the ad market has never been fiercer, with new entrants like TikTok, retail media, and streaming-TV platforms all vying for marketers' budgets. And like its rivals, Meta is currently weathering a volatile macroeconomic environment and supply chain shortages that are causing some advertisers to pause their spending. Plus, even companies like Google are facing tough comparatives with last year's pandemic highs.
Experts say Apple could cause Meta more ad-related pain
Some advertising industry insiders and observers believe Apple could inflict more pain still on Meta's ad business by tightening the iOS privacy controls even further and by investing more in building its own privacy focused advertising business beyond search ads.
"We see Apple's deliberate and unfolding policies around mobile ad tech setting it up to take over the role of mobile SSP and ad network, much like Google's AdMob," analysts at Arete Research wrote in a June note, referring to supply-side-platform ad technology that connects publishers with advertisers.
A search tab ad in Apple's App Store for MTV Play.
Insider Screenshot
As understanding of the real, or perceived, impact of Apple's privacy change becomes clearer, ATT could draw regulatory scrutiny. Antitrust watchdogs in Germany and Poland are already looking into whether Apple is "self-preferencing," by applying less restrictive tracking rules to its own apps and ad services. France's competition authority last year decided not to apply "interim measures" to delay the rollout, having not found the feature itself to be anticompetitive, but said it would continue to investigate.
In an apparent attempt to get ahead of competition concerns, Apple recently funded and published a whitepaper by Columbia Business School Professor Kinshuk Jerath, which called "speculative" the claim that billions of advertising dollars moved from companies like Meta to Apple as a result of ATT. The paper also concluded that Apple's nascent search ads business would have grown anyway last year due to its launch in China and the growth in spending from finance and sports betting app developers.
Internally, there are signs that the advertising unit is growing in importance. Insider reported in May that Todd Teresi, a longtime vice president in Apple's advertising division, was quietly promoted at the beginning of the year and now reports directly into Eddy Cue, senior vice president of its $76 billion services business.
Meanwhile, the company formerly known as Facebook is reorienting its business around the metaverse concept — another area where Zuckerberg deems Apple a competitor, The Verge reported. It's updating the design of its main apps to resemble TikTok's scrolling video feed. At the same time, its executives have warned staffers the company plans to significantly heighten performance expectations and "transition out" anyone who falls short. Meta employees fear job cuts and analysts are cooling on the stock.
"I think this whole thing was completely driven by this competitive motivation to hurt Facebook. That was the singular, primary motivation," said Eric Seufert, a mobile ad consultant and founder of the MobDevMemo blog.
"Apple needs to control how users access content on their phones in order to retain the premium they charge for the hardware," Seufert continued. "If Apple can't exert power over developers through App Store rules, because all content is streamed outside of the App Store and there's no actual downloaded app that is distributed through the App Store, then the hardware can become commodity."
More: Facebook Apple Meta
AppTrackingTransparency
Eddy Cue
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2022-07-27T22:54:57Z
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www.businessinsider.com
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How Apple's ATT Privacy Update Derailed Facebook
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https://www.businessinsider.com/how-apple-att-privacy-plan-derailed-facebook-2022-7
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https://www.businessinsider.com/how-apple-att-privacy-plan-derailed-facebook-2022-7
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Pros and cons of Citi
Pros and cons of Bank of America
Pros and cons of Chase
Which bank is the most trustworthy?
Citi vs. Bank of America vs. Chase: Which bank is the best?
National banks have large branch and ATM networks.
Citibank; Chase; Bank of America; Savanna Durr/Insider
The bottom line: Citi offers more ways to waive monthly service fees on its standard checking account than Chase or Bank of America. It also has CDs with higher interest rates than most brick-and-mortar banks.
For savings accounts, it could be a toss-up between Citi and Bank of America — Citi® Accelerate Savings earns a higher interest rate than its competitors but the Bank of America Advantage Savings Account makes it easier to waive monthly service fees.
You might like Chase or Bank of America if you are interested in a cash welcome bonus, because both banks make it relatively easy to qualify.
Choosing the right financial institution depends on your priorities. You'll likely prefer national banks to local banks if you want an institution with more locations or a greater variety of bank products.
We've compared three notable financial institutions — Citi, Bank of America, and Chase — to see which of these national banks might be suitable for you. We're also comparing financial institutions in trustworthiness so you can see if it plays a factor in your selection.
Citi vs. Bank of America vs. Chase
High interest rate on Citi Accelerate Savings
Savings APY Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.
0.05% to 1.40% APY (depends on location)
Easy to waive monthly service fees on Bank of America Advantage Savings
$200 checking account bonus on Chase Total Checking
On Citibank's website
On Bank of America's website
On Chase's website
Around 690 branches and access to 72,000 fee-free ATMs
Solid interest rate on select CD terms
Different types of CDs (no-penalty and Step Up CDs)
Bank accounts are grouped into packages, so you'll open both a savings and checking account
Doesn't offer a money market account
Monthly service fees if you don't qualify to waive them
Citi Accelerate Savings isn't available in CA, CT, IL, MD, NV, NJ, NY, VA, DC, some parts of FL, or Puerto Rico
F rating from the Better Business Bureau due to government action taken against the business and high volume of customer complaints
Around 4,200 branches and access to 16,000 ATMs
AmeriDeals feature helps you earn cash back on purchases
$100 checking account bonus that's relatively easy to qualify for
Low interest rates on savings accounts
Monthly services fees on savings and checking accounts
Bank account history includes settlements involving racial discrimination and unauthorized bank creation
Low interest rates on savings account
Monthly service fees on savings and checking accounts
A- rating from the Better Business Bureau due to government action taken against the business
Bank account history includes settlements involving wrongful trading and gender discrimination
Citi vs. Bank of America vs. Chase checking account comparisons
We've compared three basic checking accounts offered by each bank. You may not need to pay monthly service fees on these accounts if you qualify to waive them.
Citi Access Account Bank of America Advantage Plus Checking Account Chase Total Checking®
Minimum opening deposit
$0 $100 $0
$10 or $0 $12 or $0 $12 or $0
Must do one of the following each month:
Receive a direct deposit of any amount
Make one bill payment
Have an average monthly balance of at least $1,500 in all Citi accounts and investment accounts
Receive $250 or more in direct deposits
Have a minimum balance of $1,500 daily
Enroll in the Preferred Rewards Program
Maintain an average daily balance of $5,000 or more in all Chase bank and investment accounts
None $100 $200
Learn more Learn more Learn more
The Citi Access Account will probably be your go-to option if your goal is to avoid paying monthly service fees on a checking account. Citi's requirements for waiving monthly service fees are a bit more lenient than Bank of America or Chase.
For example, you'll be able to waive the account's monthly service fee if you receive a direct deposit of any amount. The Citi Access Account is also the only one of the three checking accounts that lets you waive the monthly service fee by making a monthly bill payment.
You might still consider the Bank of America Advantage Plus Checking Account or Chase Total Checking® if you'd like to earn a cash bonus. Citi offers a cash bonus, but you'll need to select the Citi Priority package and deposit at least $10,000.
Chase will likely have the easiest cash bonus to qualify for. All you need to do is use a coupon code when you open Chase Total Checking® and set up direct deposit in the first 90 days.
Bank of America has a cash bonus if you open the Bank of America Advantage Plus Checking Account. To receive the bonus, you must have $1,000 or more in qualifying direct deposits during the first 90 days of opening an account.
Winner: Citi
The Citi Access Account wins over Chase Total Checking® or the Bank of America Advantage Plus Checking Account because its requirements for waiving monthly service fees are a bit easier to fulfill. However, you may still want to consider opening a checking account at Chase or Bank of America if you're looking for a cash bonus that's easier to earn.
Citi Access Account
Relatively easy to waive monthly service fee
No paper checks
$2.50 fee for using out-of-network ATMs
BBB gives Citi an F in trustworthiness
The most basic Citi checking account
Access to 690 branches in the US and 1,800 locations overseas
Waive the $10 monthly service fee by making one direct deposit per month, OR making one bill payment per month, OR maintaining an average monthly balance of $1,500 in linked accounts
Citi vs. Bank of America vs. Chase savings account comparisons
See how Citi, Bank of America, and Chase savings accounts compare.
Citi® Accelerate Savings Bank of America Advantage Savings Account Chase Savings℠
1.40% APY 0.01% to 0.04% APY 0.01% APY effective as of 07/27/2022. Interest rates are variable and subject to change
$4.50 or $0
$8 or $0 $5 or $0
Have an average monthly balance of $500 or more (for Elevate, Basic, or Access account packages)
Have an average monthly balance of $50,000 or more across all your Citi accounts (for the Citi Priority account package)
Have an average monthly balance of $10,000 or more across all your Citi accounts (for the Citi Account package)
Automatically waived if you have a Citigold account
There's no monthly service fee for the first 6 months
After that, you must do one of the following:
Have a minimum daily balance of $500
Link to a Bank of America Advantage Relationship Banking Account
Enroll in the Bank of America Preferred Rewards program
Be under the age of 18
Be under the age of 25 and a student
Have an automatic transfer of $25 or more from Chase Checking
Link Chase College Checking℠
Link to qualifying Chase checking account
Not available in CA, CT, IL, MD, NV, NJ, NY, VA, certain parts of FL, certain parts of Puerto Rico, or Washington, DC
Package system can be confusing
Bank of America makes it the easiest to waive monthly service fees on a savings account. The 0.01% to 0.04% APY automatically waives the monthly service fee during the first 6 months of opening your account. After the first 6 months, you'll also be able to waive the monthly service fee if you meet specific age requirements or enroll in the Bank of America Preferred Rewards program.
If you're searching for a competitive interest rate on a savings account, Citi® Accelerate Savings offers the highest interest rate out of the three accounts.
However, Citi® Accelerate Savings is an online high-yield savings account that's only available in 42 states. You won't be eligible for the account if you live in a state with brick-and-mortar locations. Also, bear in mind Citi groups its savings accounts and checking accounts into packages, which can be overwhelming if you'd like to only open a savings account.
Chase might be worth considering if you don't meet the requirements to waive the monthly service fee at either of the other two banks — you can waive the Chase Savings℠ monthly service fee if you keep a minimum of $300 in your account.
Winner: Bank of America and Citi
Bank of America and Citi tie in this category because their savings accounts stand out for different reasons. Citi® Accelerate Savings could be a solid option for earning a competitive interest rate. However, if you want to waive monthly service fees, the Bank of America Advantage Savings Account offers the most lenient requirements out of all three banks.
Citi® Accelerate Savings
High APY (minimum $1 balance to earn)
You may pay a monthly fee, depending on a variety of factors
Other fees depend on which checking account you link to your savings account
Not available in certain states
Monthly fee depends on whether you link to a Citi checking account, and which checking account you choose
You may qualify to have the monthly fee waived, depending on which checking/savings package you have
Compounding interest to maximize your savings
Not available in CA, CT, IL, MD, NV, NJ, NY, VA, DC, certain parts of FL, and Puerto Rico
Bank of America Advantage Savings Account
New accounts have monthly fee waived for the first 6 months
Multiple ways to waive monthly fee after the first 6 months
No excess withdrawal fee if your balance is at least $20,000, or if you're a Preferred Rewards customer
Compounds interest monthly, not daily
$10 excess withdrawal fee
Access to over 4,200 branches and 16,000 ATMs
Earn slightly higher rates by becoming a Preferred Rewards customer and qualifying for the Gold, Platinum, or Platinum Honors tier
Earn cash back when you make a debit card or credit card purchase through the BankAmeriDeals® program; Cardholders will automatically be enrolled in the program when setting up online banking and a list of eligible offers and deals will be available through online banking
Waive $8 monthly service fee by maintaining $500 balance, OR linking to your Bank of America Advantage Relationship Banking® account, OR by becoming a Preferred Rewards customer
Waive monthly fee if you're a student under age 24
Interest compounded monthly and paid monthly
Citibank vs. Bank of America vs. Chase CD comparisons
Citi Fixed Rate Certificates of Deposit Bank of America Standard Term Certificate of Deposit Chase Certificate of Deposit (CD)
1 month to 5 years 28 days to 10 years 1 month to 10 years
$500 to $2,500 $1,000 $1,000
0.05% to 2.35% APY 0.03% APY 0.02% to 0.05% APY
Early withdrawal penalties
90 to 180 days interest 7 to 365 days interest 90 to 365 days interest
Types of CDs Standard CDs, Step Up CDs, and No Penalty CDs Standards CDs Standard CDs
Citi Fixed Rate Certificates of Deposit may be notable if you're looking for a competitive CD rate. Select Citi CD terms — a 6-month CD, 9-month CD, 1-year CD, and 18-month CD — are paying higher interest rates than most CDs at national brick-and-mortar banks.
Citi is also the only bank out of three to offer special types of CDs. You can get a step-up CD, which increases its rate after a set date. You also have the option of a no-penalty CD, which won't charge you a fee if you withdraw money before the end of your term.
Bank of America or Chase CDs might be worthwhile if you live in a state where Citi CDs require a high minimum opening deposit. If you live in Maryland, Virginia, Florida, or Washington, DC, you'll need at least $2,500 to open a Citi CD. Chase and Bank of America CDs have the same minimum opening deposit regardless of where you live.
When it comes to CDs, Citi Fixed Rate Certificates of Deposit are the most appealing of the three banks. Select CD terms pay a competitive interest rate, and the minimum opening deposit is only $500 in most states. Meanwhile, Wells Fargo doesn't have a lot of CD terms, and Chase pays low interest rates on CDs.
Citi Fixed Rate Certificates of Deposit
Range of CD terms
Relatively low early withdrawal penalties
Rates vary depending on term
$500 to $2,500 opening deposit, depending on your state of residence
Must visit a branch to deposit more than $10,000
Early withdrawal penalties ranging from 90 to 180 days interest
Earn 1.10% APY on a 6-month CD or 9-month; Earn 2% APY on an 1-year CD; Earn 2.35% APY on an 18-month CD
Earn 0.05% APY on other CD terms between 3 months and 10 months; Earn 0.10% APY on other CD terms between 13 months and 15 months; Earn 1.01% APY on other CD terms between 2 years and 5 years
$500 opening deposit in most US states; $1,000 in California and Nevada; $2,500 in Maryland, Virginia, Florida, and DC
The Better Business Bureau rates businesses according to how they respond to customer issues.
The BBB gave Bank of America an A+ rating, Chase a A- rating, and Citi an F rating. Chase and Citi's ratings are due to government action taken against the banks.
A good BBB rating doesn't necessarily guarantee you'll have a smooth relationship with a business. Talk to current customers or read online customer reviews to see if one of these banks might be right for you.
All three banks have also been involved in public scandals over the last few years.
Here are cases Bank of America has recently been involved in:
In 2020, the Department of Justice said Bank of America broke the law by denying home loans to adults with disabilities based on their disability. Bank of America paid around $300,000 in the settlement to people who were denied loans, and the bank was required to implement a new non-discriminatory policy.
In 2019, the US Department of Labor's Office of Federal Contract Compliance Program said Bank of America discriminated against women, Black, and Hispanic applications in the hiring process. The bank had to pay $4.2 million in back wages in the settlement.
Chase has been involved in the following cases:
In 2020, JP Morgan Chase & Co. paid the Department of Justice $920 million in a settlement that said the bank was involved in wrongful trading.
In 2020, the US Department of Labor said JP Morgan Chase & Co. broke the law by underpaying women. The bank was required to pay $800,000 in back wages in the settlement and provide a total of $9 million for compensation adjustments over the next five years.
Citi has been in the following public scandals:
In 2019, Citi accidentally sent $900 million to customers.
In 2020, the bank was required to pay $400 million in a settlement with the Comptroller of the Currency. The OCC stated the bank had inefficient banking practices.
All three banks have been involved in public controversies. You might prefer a mission-driven bank if you'd like to bank with a financial institution that hasn't been involved in recent settlements.
Which is the best, Citi, Bank of America, or Chase?
The best bank for you may depend on which types of bank accounts you want and if you meet the requirements to waive monthly service fees at a particular bank.
Citi makes it the easiest to waive monthly services fees on checking accounts. It's also the strongest option if you'd like to open a CD.
Bank of America offers the most ways to waive monthly service fees on savings accounts. Lastly, Chase will likely be the ideal choice for earning a cash bonus for a bank account.
Which bank of the three, Citi, Bank of America, or Chase, is the safest?
All three banks are FDIC insured. When a financial institution is federally insured, money deposited into a bank account will be secure even if the financial institution shuts down.
If a bank shuts down your money won't be lost. It will be transferred to another bank with FDIC insurance, or you'll receive a check. Up to $250,000 is secure in individual bank accounts, and $250,000 is protected per owner in joint bank accounts.
Chase Total Checking: $3.00 for inquiries, transfers and withdrawals while using a non Chase ATM in the US, Puerto Rico and US Virgin Islands. Fees from the ATM owner/network still apply. $5 per withdrawal and $3.00 for any transfers or inquiries at ATMs outside the U.S., Puerto Rico and the U.S. Virgin Islands. Fees from the ATM owner/network still apply.
PERSONAL FINANCE The best national banks of 2022
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More: Citibank Citibank Access Account Citi Accelerate Savings Citi CD
Bank of America Advantage Plus
Bank of America CD
chase total checking
Chase Savings
Chase CD
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2022-07-27T22:55:03Z
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www.businessinsider.com
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Citi Vs. Bank of America Vs. Chase: Which Bank Is the Best?
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https://www.businessinsider.com/personal-finance/citibank-vs-bank-of-america-vs-chase-comparison-review
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https://www.businessinsider.com/personal-finance/citibank-vs-bank-of-america-vs-chase-comparison-review
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Taiyler Simone Mitchell and Joseph Zeballos-Roig
On Wednesday, Sen. Joe Manchin reached a deal with Senate Majority Leader Chuck Schumer.
They said the deal should help ease inflation and fight climate change.
It breaks a stalemate on President Joe Biden's agenda that lasted for nearly a year.
Sen. Joe Manchin reached a deal with Senate Majority Lead Chuck Schumer on The Inflation Reduction Act of 2022.
A summary of the deal says it "will make a historic down payment" to help the economy and fight climate change. Full text of the bill was dropped on Wednesday night.
Manchin, a West Virginia Democrat, helped thwart President Joe Biden's efforts to establish an expansive Build Back Better plan aimed at climate, economic, and health care progress. The deal that Manchin and Schumer struck is a skinnier version of Biden's original plan.
"For too long, the reconciliation debate in Washington has been defined by how it can help advance Democrats' political agenda called Build Back Better. Build Back Better is dead, and instead, we have the opportunity to make our country stronger by bringing Americans together," the West Virginia Democrat said in a statement.
Senior Democrats intend to pay for a deal through a 15% corporate minimum tax, IRS tax enforcement, and closing a loophole that benefits wealthy investors.
"I will do everything I can to usher in a new era of compromise and commonsense that will make America more energy secure, financially sound, and a more united country for this generation and the next," he added.
The new deal goes against Manchin's previous comments suggesting he would not support spending on climate change.
It will allocate $369 billion to energy security and climate change working to lower carbon emissions by 40% by the year 2030. The bill also aims to establish decreased energy costs and cleaner energy production.
Affordable Care Act Extension
An estimated $64 billion will be focused on the extension of the Affordable Care Act, also known as Obamacare, for an additional three years.
The renewal is meant to bring down the costs of insurance premiums for millions of Americans who purchase coverage in either state or marketplace exchanges. Democrats are racing to prevent the program from expiring at the end of the year since voters would receive notices of their spiking premiums only weeks before the November midterms.
Prescription drug reform
The deal also allows Medicare to negotiate the price of some prescription drugs, a top Democratic goal. It caps out-of-pocket costs for seniors at $2,000 annually.
However, it omits another major priority for Democrats: Capping the cost of insulin to $35 per month. That forms part of a bill by Democratic Sen. Jeanne Shaheen of New Hampshire and GOP Sen. Susan Collins of Maine.
The full 725-page draft bill
A draft of the bill's text was released on Wednesday night.
More: Joe Manchin Congress Joe Biden Build Back Better
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2022-07-28T01:57:20Z
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Full Text of Inflation Reduction Act, Manchin-Schumer Deal for Biden Agenda
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https://www.businessinsider.com/read-heres-whats-in-the-manchin-deal-for-bidens-agenda-2022-7
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https://www.businessinsider.com/read-heres-whats-in-the-manchin-deal-for-bidens-agenda-2022-7
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Azmi Haroun and Kelsey Vlamis
Senate Democrats struck a $700 billion deal for an economic and climate package.
Joe Manchin announced that he and Chuck Schumer had agreed on terms after months of negotiations.
The negotiations were so secret that even Schumer's deputy was surprised by the news.
Details around the economic deal agreed upon by Senate Democrats were kept under such a tight seal that even high-level Democrats involved at different points of the negotiations were anxious to find out details of the agreement.
On Wednesday, Sen. Joe Manchin announced that he and Senate Majority Leader Chuck Schumer had reached a deal on The Inflation Reduction Act of 2022, a funding package that could dole out $700 billion to climate, tax, and health care improvements.
Some in the Senate close to the negotiators were shocked that a deal was struck during an arduous, at times seemingly deadened negotiation process with a mostly immovable Manchin.
Senate Minority Whip Dick Durbin, who is Schumer's deputy, told Punchbowl News that the deal was "news to me."
"I'm anxious to know the details," Durbin said.
The deal was struck after Manchin indicated earlier this month he would not support new climate spending or tax hikes, all but tanking the Democrats' plans. But Manchin and Schumer quietly continued talks, finally striking an agreement on Wednesday, according to Politico.
Even Manchin said he was unsure before Wednesday if the bill would ultimately pan out.
"I didn't know if it could come to fruition. I really didn't know, OK, so why talk about something, again, build people's hopes up? I got the ire of everybody," Manchin said on why the talks were kept quiet, according to Politico.
The West Virginia Democrat said that with him and Schumer negotiating behind the scenes, there was "no pressure."
"The easiest thing for me to do is walk away and do nothing ... just stay away," Manchin said, according to the outlet. "That was not the case, because it was not the right thing."
More: Joe Manchin Chuck Schumer
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2022-07-28T02:36:28Z
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Dem Talks With Manchin Were so Secretive Schumer's No. 2 Didn't Know
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https://www.businessinsider.com/dem-talks-manchin-were-secretive-schumers-no-2-didnt-know-2022-7
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https://www.businessinsider.com/dem-talks-manchin-were-secretive-schumers-no-2-didnt-know-2022-7
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Condense wants to help stars stream themselves in 3D into games like Roblox and Fornite. We got an exclusive look at the 16-slide deck it used to raise $4.5 million.
Condense founder Nick Fellingham.
Condense Reality
Condense, a self-described metaverse startup, has raised $4.5 million for a streaming studio.
The startup wants to help creators and artists beam into games such as Fortnite and Roblox.
The aim is to replace clunky avatar concerts and events with real, live 3D video footage.
A startup building technology to help artists and celebrities beam 3D video footage of themselves into virtual environments like Roblox or Fortnite has raised $4.5 million from investors as it launches its first streaming studio.
Condense, founded in Bristol, UK in 2019, wants to create the infrastructure needed to bring the immersiveness of real-world live events to the metaverse by capturing and streaming live 3D video from the real world and beaming it into games. The company is positioning itself as part of the broader "metaverse" trend — the idea that the next iteration of the internet will be a persistent virtual world.
Condense uses a mix of cameras and software to capture an artist or celebrity and render them in 3D for in-game concerts or events.
In-game concerts and events have grown in popularity in recent years as platforms such as Roblox have put digital versions of artists such as Ariana Grande and Travis Scott in front of their audiences. Condense's sell is that these concerts have involved artists performing as avatars and in pre-recorded performances, rather than a 3D live stream.
The startup raised the funds in a round led by investors including LocalGlove, 7percent Ventures and Deeptech Labs, with additional backing from a number of angel investors including Monzo cofounder Tom Blomfield.
According to Ziv Reichert, partner at LocalGlobe, Condense's technology offers a key means of connecting artists, sports stars and creatives to platforms like Roblox, Rec Room and Fortnite where "hundreds of millions of people are hanging out."
"Player demand for live entertainment inside these virtual worlds has never been greater", he said. "Condense has built the infrastructure to connect the two – now music artists, sports stars and creatives can perform and play live in the metaverse."
As part of the funding, the startup launched its first studio for streaming live events having struck a partnership with Watershed, an arts and cinema venue in Bristol.
Nick Fellingham, CEO and cofounder of Condense, said the studio would "bring together the energy of live events with the massive scale of the metaverse", as its technology hopes to take out the "technical complexity of streaming live into the metaverse."
Condense is helping artists live stream to the metaverse
More: Features Metaverse Roblox
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2022-07-28T07:58:35Z
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www.businessinsider.com
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Pitch Deck: Condense Raises $4.5 Million for Metaverse Streaming
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https://www.businessinsider.com/condense-raises-4-5-million-to-support-metaverse-concerts-2022-7
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https://www.businessinsider.com/condense-raises-4-5-million-to-support-metaverse-concerts-2022-7
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This drug development platform raised $5 million in a round backed by Microsoft's VC arm. Check out the 15-slide pitch deck iLoF used to raise the funds.
iLof founders: Mehak Mumtaz, Paula Sampaio, and Luis Valente.
Oxford and Porto-based drug discovery platform startup iLoF has raised $5 million in seed funding.
The startup uses AI to collect human genome data to better predict which medical treatments will be effective.
Check out the 15-slide deck iLoF used to raise the funds.
Drug development startup iLoF has raised $5 million in a seed funding round backed by early-stage investor Faber and Microsoft's venture arm M12.
The Oxford and Porto-based startup aims to match patients to medication that's best suited for them based on their genetic profiles. The company also enables biotech and pharma companies to research this biological data, which to date has been expensive and hard to access, to conduct more effective clinical trials.
Its AI-backed platform collects mass information on patients' biological profiles from electronic health records and blood drives. This information is run through its machine learning platform to help curate better medication according to the patient's gene profile, as clinical trials rarely find a one-size-fits-all treatment.
"There's a lot of information on patients' biological profiles that's not being used in clinical trials, because it's expensive and invasive," said cofounder Luis Valente.
iLoF's platform creates digital twins of these biological profiles so that companies can easily scale their analysis of this data, at a subsidized cost, without having to constantly test on patients.
A key problem that many startups fail to consider is the "heterogeneity of patients when designing medication," according to Valente. "People are different, and heterogeneity needs to be taken into account."
ILof ensures it covers a diverse base of patients by collecting mass data to refine its differentiation models, in a bid to also "create more precise and inexpensive models compared to other startups."
Given the sensitivity of the genomics data that iLoF handles, data privacy is a concern for the startup. All the biological data collected is fully anonymized so it cannot be traced back to any individuals, and it's stored on clinical-grade cloud systems, it said.
Currently, the startup stores over 1,000 biological profiles and also works with a range of corporations to help them accelerate their personalized drug discovery process. With this information, iLoF's partner clients can also source better patients for clinical trials and set new targets for drug discovery.
The startup makes its money by partnering with corporations to pilot these drug discovery programmes, and also provides a service subscription model with access to its genomics data. During the COVID-19 pandemic, it also worked with St John's Hospital and the Faculty of Medicine in Porto, using its technology to screen which COVID-19 patients would be more likely to enter the ICU — allowing the hospital to manage its resources more efficiently.
The pandemic also spotlighted drug discovery as a lucrative sector, according to Valente, enabling iLoF to work with major corporate partners such as Microsoft.
It secured $4.1 million in equity investment, led by Lisbon-based early-stage firm Faber, which has invested in healthcare startups SWORD Health and Luminate Medical, with Microsoft's venture fund M12 and EU-based Lunar Ventures participating, among others. The European Regional Development Fund (ERDF) also provided the startup with a $900,000 grant, bringing the total seed round to $5 million.
With the fresh funds, the startup will focus on expanding its team and collecting more diverse datasets as it transitions from becoming "a next-generation bioinformatics platform to a breakthrough disease screening one," according to cofounder and COO Mehak Mumtaz.
More: Features Drug Discovery Healthtech
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2022-07-28T07:58:41Z
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ILoF: Drug Development Platform Raises $5 Million in Fresh Funds
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https://www.businessinsider.com/ilof-drug-development-platform-raises-5-million-in-fresh-funds-2022-7
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https://www.businessinsider.com/ilof-drug-development-platform-raises-5-million-in-fresh-funds-2022-7
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Mariah Tauger/Los Angeles Times via Getty Images
A Michigan restaurant closed early because tourists were "rude" and "arrogant," its manager said.
"Due to the mistreatment of our servers, our kitchen is closed," she wrote on a sign.
Service and hospitality workers have had to deal with more rude customers since the pandemic started.
A restaurant in Michigan closed early during a festival because tourists were rude to staff, its manager said, reflecting the rising number of rude customers during the pandemic era.
Charlevoix, a town around 250 miles north of Detroit, has hosted a Venetian festival for almost 100 years with music, sport, and a parade. But when tourists descended on the town on the weekend, the tourists – known by the locals as "fudgies" – were "arrogant" and "cocky," Larah Moore, the general manager of East Park Tavern, said in a Facebook post.
After speaking with her staff, Moore shut the restaurant an hour earlier than usual on Saturday, Today reported.
"Due to the mistreatment of our servers, our kitchen is closed," she wrote on a sign she stuck on the host's desk.
Service and hospitality workers across the country have had to deal with growing numbers of rude customers since the pandemic started, with clashes over COVID-19 policies like masks and social distancing, slower service amid the labor shortage, and rising prices due to inflation.
The problem at East Park Tavern seems to have been caused by rude, impatient, and rowdy customers, but in some other cases, customers have been violent to workers.
"I'm so incredibly disappointed and embarrassed by the fudgies we have this year," Moore wrote. "My staff took a BEATING all week. Last night was our last straw. Too many rude comments. Too many arrogant individuals acting like they can throw money at us to get their way. Too many cocky jerks."
Today reported that close to 100,000 people travel to Charlevoix each year during the eight-day festival. Moore told the outlet that many of her staff had been working 11-hour shifts that week, where they were "being beaten down every day by the amount of people that were coming in, plus just the disrespect people were giving to them."
She told Today that one of the restaurant's servers ended up in the emergency room on Saturday night after her insulin pump fell off while she was working because it was so hot, while another "was breaking down" crying.
"No one gets to treat my staff like trash," Moore said in the Facebook post. "We are not here to be abused. We will not tolerate that anymore."
NOW WATCH: How restaurants are making 800,000 meals for frontline workers
More: Michigan Retail restaurant Customers
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2022-07-28T09:34:01Z
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Michigan Restaurant Shut Early Because 'Cocky' Tourists Rude to Staff
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https://www.businessinsider.com/michigan-restaurant-shut-early-rude-tourists-staff-charlevoix-venetian-festival-2022-7
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https://www.businessinsider.com/michigan-restaurant-shut-early-rude-tourists-staff-charlevoix-venetian-festival-2022-7
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Founder Finances: Etsy seller shares the $3,700 monthly budget preparing her business for its busiest quarter
Nicole Lewis, founder of Art 2 the Extreme
Anna Powell Denton / Etsy
In this story, the founder of a seasonal Etsy shop shares her $3,700 a month budget.
She says spending in June and July to prepare for her Q4 surge is vital to her business.
Nicole Lewis was an elementary-school art teacher on the hunt for new supplies, like fun-shaped crayons, when she realized the lack of variety in the marketplace.
That inspired her to create her own original crayons and start selling them on Etsy in 2007. Her business, Art 2 the Extreme, quickly turned from hobby to side-hustle to full-time career over the past 15 years. Today, the business sells customizable and personalized crayons on the platform.
Last year, Lewis booked more than $200,000 in revenue, documents Insider verified show. She accrued more than half of her revenue during the fourth quarter, making Art 2 the Extreme a seasonal business.
"Many of these costs during the slower months add up and keep summer profits down," she said in an email. Lewis added that her priority remains investing in the holiday-season exposure and growth year-round.
She shared her June budget and advice on how to allocate spending for a seasonal company.
Hire for tasks that take away too much time or energy
Lewis spent $370 on independent contractors in June. She hires these workers to complete tasks — like peeling crayons and bagging the products — that she feels take too much time away from her other responsibilities as a solopreneur, such as marketing.
Lewis hires contracted employees to complete tasks when she can
If a founder feels overwhelmed by their to-do list, Lewis suggests considering what they can outsource by asking themselves questions like, "What's sucking up your time?" and, "What aspects of the business do you not like doing?"
"It's hard to give up that control," she added.
Lewis also hires photographers and videographers to help with photoshoots and other marketing tasks. Annually, Lewis spends about $2,000 on photography and videography.
Hiring out the tasks she either can't do or doesn't want to do helps Lewis streamline her own priorities and focus on what she's good at in the business.
Prepare for supply-chain issues ahead of time
Art 2 the Extreme customized crayons.
Qiana K Photography
While Lewis is about to enter some of her slower months for business, she spent $210 on packaging in June.
"You need to put a budget aside to order your supplies ahead of time," she said of product materials, packaging, or other necessary items. Especially with persisting supply-chain issues, "boxes might not be in stock in the winter, you need to be ordering it in bulk now."
Occasionally, Lewis will spend up to $5,000 on an order of boxes, even if she doesn't have the disposable income at the time, because she knows it will benefit her in the long run.
"If I can't find those boxes come September, October, or November, that's going to pose a huge problem and disrupt my entire season," she said. "Even if I have to charge it now and just pay it off later, you have to plan ahead."
Build relationships to achieve low marketing spend
A post shared by Art 2 The Extreme®️- Nicole (@art2theextreme)
Etsy required Lewis to spend $634 on marketing — which goes to services like its gift guides, newsletters, and other pushes — in June. Aside from Etsy marketing, Lewis aims to create other strategic partnerships to keep her costs down.
For example, Lewis begins sending winter-holiday pitches to magazines in June. In the past, People.com, Us Weekly, Southern Living, Midwest Living, and Buzzfeed, among other publications, have featured Art 2 the Extreme. She said that third-party marketing has been life-changing for her business because it expands her audience beyond Etsy shoppers.
This year, Lewis has already locked down two major magazine-gift-guide promotions because she started pitching so far in advance, she said. Additionally, Lewis collaborates with social-media influencers by gifting them items they'll then post about.
"My strength is collaborations with other brands, makers, and businesses," she said. What's more, when pitching a marketing concept or custom design, she considers how she can help the other person and how the collaboration can move the needle for both of them.
More: Founder Finances finanical
seasonal businesses
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2022-07-28T11:05:39Z
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How to Budget for Supply-Chain Issues in Your Business
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https://www.businessinsider.com/esty-sellers-how-to-budget-for-supply-chain-issues-2022-7
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https://www.businessinsider.com/esty-sellers-how-to-budget-for-supply-chain-issues-2022-7
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75 basis points.
That's the whole intro.
Phil Rosen here. After yesterday's Fed hike, I'm breaking down why markets may be able to withstand what happens next.
The Federal Reserve, led by Jerome Powell, raised interest rates earlier this month.
1. The Federal Reserve announced a 75-basis-point interest rate hike. It mirrored the previous hike, matched the consensus expectation, and added to concerns that the Fed may put the US economy into a recession.
But even amid the Fed's aggressive tightening and the weak economic data of late, the worst of the volatility and risk in the stock market has come and gone, according to JPMorgan's Marko Kolanovic.
In a Wednesday note before the Fed's latest increase, he explained markets are proving to be less sensitive to mounting recession concerns and have already priced in a downturn.
Plus, recent revisions to earnings show the market is reflecting much of the cyclical weakness, he added.
And earnings reports from Alphabet and Microsoft fit into JPMorgan's thesis. Shares of the tech giants rose after each showed resilience and strong guidance for the upcoming fiscal year.
"This will be bullish guidance heard around the world and on the Street as the market digests this positive commentary in a darkening macro," Wedbush's Dan Ives said, in reference to Microsoft's results.
Photo by ANGELOS TZORTZINIS/AFP via Getty Images
2. US stock futures fall early Thursday, as investors brace for the first reading on US second-quarter GDP, which is due later today. Meanwhile, bitcoin traded above the $23,000 level. Here are the latest market moves.
3. On the docket: Apple Inc., Amazon, and Pfizer Inc., all reporting. Plus, look out for the unemployment insurance weekly claims report, expected from the US Department of Labor this morning.
4. Home prices may be sliding, but these two experts with 35 years of collective experience explain why it's a great time to get into the market. Not only does the current landscape present an opportunity to buy a property, but it can even allow investors to negotiate on their own terms.
5. The surge in the dollar is slowing global trade and worsening debt crises around the world, the IMF said in a new report. A strengthening greenback means other countries' dollar-denominated debts are more expensive to service while trade that's priced in the US currency becomes costlier.
6. Cathie Wood's funds shed Coinbase shares for the first time in 2022. She sold just over 1.41 million shares of the crypto company, worth about $75 million. Her move comes as the SEC launches a probe into the crypto platform's business activities.
7. US crude-oil exports hit a record high last week, totaling 4.55 million barrels a day, according to the EIA. The 21% surge comes as the West is scrambling to fill the hole of Russian supply on the global market.
8. A portfolio manager who's crushing the S&P 500 broke down why renewable energy stocks are poised to defy the bear market. Low costs, strong pricing power, resilient demand, and a structural shift toward clean energy all give the sector promising momentum, the Ecofin manager said. These are his eight top stock picks.
9. Even with the softening housing market, international investors continue to scoop up pricey homes in Florida, California, and Texas. A 2008-style housing crash is unlikely, according to a top analyst at the National Association of Realtors — here are four reasons why.
Meta stock price on July 28
10. Meta reported its first year-on-year revenue decline. Revenue in the second quarter fell almost 1% from a year earlier. Meta also issued a dissapointing third-quarter forecast, citing a "weak advertising demand environment." Shares in the company dropped more than 4% after hours. It comes as the FTC sued Meta to block it from acquiring virtual-reality company Within Unlimited.
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2022-07-28T11:05:45Z
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www.businessinsider.com
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Top Quant Says Markets Priced in a Recession Already. Here's What to Know.
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https://www.businessinsider.com/fed-reserve-markets-stocks-recession-inflation-rate-hike-powell-jpmorgan-2022-7
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https://www.businessinsider.com/fed-reserve-markets-stocks-recession-inflation-rate-hike-powell-jpmorgan-2022-7
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Alexandra Ma
House Democrats plan to unveil a ban on stock trading soon, Punchbowl News reported.
The outlet said that a plan could come in August with votes in Congress in September.
It comes after Insider found widespread violations of a law designed to prevent insider trading.
House Democrats are close to introducing a ban on stock trading for members of Congress, their spouses, and senior staff members, Punchbowl News reported, citing multiple unnamed sources.
The ban would make these lawmakers, spouses, and staffers choose between putting their assets in a blind trust — giving up control to an independent third party — or selling them altogether, Punchbowl reported.
The move came in the wake of Insider's "Conflicted Congress" project, which showed widespread violation of the Stop Trading on Congressional Knowledge (STOCK) Act.
The 2012 law was designed to combat insider trading by requiring timely disclosure of stock transactions, but is widely flouted.
Democrats plan to unveil their plan in early August, Punchbowl reported, with the potential for votes in Congress in September.
The plan would still let lawmakers hold mutual funds, per Punchbowl.
"We're almost ready to move forward on this," Rep. Zoe Lofgren, the chair of the House Administration Committee, told Punchbowl on Wednesday.
House Speaker Nancy Pelosi has been under pressure to introduce the ban. She initially said she opposed such a ban, but reversed her position earlier this year.
Some Republicans have shown support for curbing lawmakers' stock trades, with House Minority Leader Kevin McCarthy saying he would consider introducing a ban if the GOP wins control of the House in the 2022 midterms. However, Republican lawmakers appear to be split over the issue.
Pelosi's husband, the venture capitalist Paul Pelosi, has also been under the spotlight recently. Insider found that since 2021 he had made tens of millions of dollars in stock and stock option trades involving 19 companies.
Pelosi says her husband has never made stock trades based on any information she's given him.
More: Speed desk Stock Trading Conflicted Congress News UK
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2022-07-28T12:32:17Z
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Dems Plan Congress Stock-Trading Ban in Wake of Insider Probe: Report
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https://www.businessinsider.com/congress-stock-trading-house-dems-close-proposing-ban-report-2022-7
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https://www.businessinsider.com/congress-stock-trading-house-dems-close-proposing-ban-report-2022-7
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Hi. I'm Aaron Weinman. Credit Suisse wants to reduce costs at its investment bank. Competing investment bankers smell blood in the water as they circle their Swiss peer's business.
Before we dig into that, the Federal Reserve raised its benchmark interest rate by three-quarters of a percentage point. I stopped by CBS to talk about how that impacts your wallet.
Now, back to Credit Suisse.
Law firm sued Credit Suisse over claims it misled investors on business dealings related to Russian oligarchs.
1. Credit Suisse's lackluster investment-banking numbers, and decision to slash costs within the division, has rivals "dancing on their grave." This is how one capital-markets banker described the mood among his colleagues, who were buoyed by the idea of nabbing business from the beleaguered Swiss bank.
It's a common playbook in the investment-banking world. Rivals — all clamoring for pitch meetings with corporate America — are quick to point out competitors' flaws. In Credit Suisse's case, they'll also remind companies of the bank's exposure to risk-management scandals involving Archegos Capital Management and the bankrupt supply-chain financier Greensill Capital.
"A great wealth-management business with investment banking as a hobby on the side. That's great for us. I think we'll take share from them," the capital-markets banker said.
And that share is significant. Credit Suisse finished in the top seven of investment banks across the US bond and loan markets over the last three years, while it made the top 10 in US equity capital markets, thanks to a strong SPAC business in recent years, according to Dealogic data.
The investment bank, however, recorded a loss of about $1.2 billion for the quarter, down 43% on the same period last year.
Like UBS, Credit Suisse has focused on growing its wealth and asset-management businesses. The bank also announced that outgoing Chief Executive Thomas Gottstein will be replaced by Ulrich Körner, who currently leads its asset-management arm.
Körner — dubbed "Uli the Knife" in this article by the Financial Times — helped reshape UBS after the 2008 financial crisis. Now, he will look to reshape a brand in need of a makeover and a business plagued by weaker numbers.
"The bank needs a seismic wake-up call," said one Credit Suisse banker, who, when asked how he felt about Wednesday's results, just texted me back with crying emojis.
2. Tom Lauria, the "bulldog lawyer," sees a "mind blowing" wave of bankruptcies coming. The White & Case lawyer who has repped Hertz and Johnson & Johnson, spoke to Insider about what might happen when the next wave of corporate loans come due.
3. Banks are leaving women behind. And it's costing them $700 billion a year in the additional revenue they could generate if they provided financial services to women at the same rate they do men.
4. Short seller Carson Block scored $14 million from the US Securities and Exchange Commission. Here's how it happened — and why another short seller now claims he deserves a cut.
5. Talos bet its future on becoming the crypto toolkit for traditional Wall Street. That's helped it reach record growth while the digital-asset space has melted down.
6. Digital advertising company Tremor just acquired adtech firm Amobee for $239 million. Here's six other adtech deals that could happen as stocks dip.
7. The Walton family's net worth fell by about $11.4 billion after Walmart cut its outlook. Five members of the Walton family own just under half of the retail giant.
8. These valuation metrics helped predict the $10 billion Zendesk buyout. Using that same data, here are the next top tech targets for cashed-up private-equity firms.
9. Air-taxi startup Volocopter just raised $170 million in Series E funding. The company wants to use the funds to enter international markets. Here's the pitch deck.
10. Employees are defying orders to return to their offices. And they're getting away with it.
First Eagle Alternative Credit closed its fifth direct-lending fund with more than $1 billion in available capital. The fund provides loans to private equity-owned companies with earnings before interest, taxes, depreciation, and amortization between $5 million and $50 million.
Carlyle's global credit platform has arranged and led a financing for Spotless Brands, the car wash operator owned by private-investment firm Access Holdings. The amount or the terms of the financing were not disclosed.
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2022-07-28T12:32:24Z
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www.businessinsider.com
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Credit Suisse's Poor Investment-Banking Numbers Opens Door for Competitors
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https://www.businessinsider.com/credit-suisse-investment-banking-earnings-ulrich-korner-wealth-2022-7
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https://www.businessinsider.com/credit-suisse-investment-banking-earnings-ulrich-korner-wealth-2022-7
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Stephen Jones and Nora Naughton
Jim Farley poses next to the newly unveiled electric F-150 Lightning, May 2021.
JEFF KOWALSKY / Contributor / Getty
Ford CEO's hinted that the auto-giant could cut jobs in order ramp up EV production, per Bloomberg.
"We absolutely have too many people in some places," Jim Farley said in an earnings call.
Farley aims to save $3 billion as part of a transformation aimed at making to 2 million EVs by 2026.
Ford CEO Jim Farley hinted the car maker plans to go ahead with reported job cuts as it seeks to ramp up electric vehicle production.
"We absolutely have too many people in some places, no doubt about it," Farley told reporters in an earnings call on Wednesday, reported Bloomberg. "We have skills that don't work any more, and we have jobs that need to change," Farley said, responding to a question posed by a Morgan Stanley analyst, per Bloomberg.
The comments double down on a similar concession Farley made at a Wolfe Research auto conference in February previously reported by Insider. His words come amid reports that the automaker could cut as many as 8,000 jobs in order to help transition the firm away from fossil-fuels towards electric cars.
Bloomberg reported on July 20, citing unnamed sources with knowledge of the matter, that the 8,000 roles could come from salaried positions throughout the firm, but primarily from its newly minted Blue unit, responsible for internal combustion engine vehicles.
Details of plans had not been finalized at the time, Bloomberg reported.
The 118-year old car-giant is in a race, along with other legacy automakers like GM, to match Tesla in the battle to dominate the still nascent, but growing market for EVs.
Farley plans to save as much as $3 billion as part of a sweeping transformation, aimed at boosting Ford's EV production to two million vehicles by 2026, per Bloomberg.
In March, the company siloed its EV division, named Model E, from its internal combustion division, renamed Ford Blue, and has pledged to invest up to $50 billion to electrify its fleet.
"Ford is way too complex," Farley said on the call, per Bloomberg.
"We are planning much less complexity in our Blue business and that is a theme that will run through Blue for years to come."
Farley declined to specify how many roles could be made redundant when asked during the earnings call. Ford employs 88,000 people in the US, including 57,000 hourly workers, according to its corporate website.
A spokesperson for Ford said the company does not comment on speculation when contacted by Insider.
"To deliver our Ford+ transformation and lead this exciting and disruptive new era of electric and connected vehicles, we are focused on reshaping our work and modernizing our organization across all automotive business units and across the company," the company said.
Ford's half-year earnings more than tripled compared to the same period last year, rising to $3.7 billion before adjustments for tax and interest.
The increase has been fueled in part by high demand for its Mustang Mach-E, F-150 Lightning and E-Transit EVs, the company said in the earnings report.
More: Ford EV Transportation Jobs
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2022-07-28T12:32:30Z
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www.businessinsider.com
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Ford CEO Hints at Job Cuts Amid Push to Expand EV Production
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https://www.businessinsider.com/ford-ceo-hints-job-cuts-push-to-expand-ev-production-2022-7
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https://www.businessinsider.com/ford-ceo-hints-job-cuts-push-to-expand-ev-production-2022-7
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Lost luggage has been put in the trash at an Irish airport, UTV reported.
Some of the suitcases have been opened, photos shared with UTV appear to show.
A baggage handler said some bags were removed as they contained perishable items, attracting vermin.
Missing luggage belonging to air passengers has ended up in the dump at an Irish airport, UTV first reported.
A whistleblower, who requested to remain anonymous, shared photos with UTV, which showed a handful of suitcases placed in and around a large trash can for disposal outside a warehouse full of lost bags at Dublin Airport in Ireland.
The photos were taken a few days ago in an area used by baggage handling company Sky Handling, UTV reported.
It appears that some of the luggage has been opened, according to UTV.
UTV reported that it showed the photos to Sky Handling, which said the baggage was thrown away for health and safety reasons.
"There have been a handful of cases where bags which have not been recovered and which contain perishable items which are attracting vermin, whereby the bags have had to be removed to be destroyed for health and safety reasons," Sky Handling said in a statement to UTV.
The company has allowed passengers to come to the warehouse at Dublin Airport to see if their luggage is there, per UTV.
Sky Handling didn't immediately respond to Insider's request for comment. Dublin Airport told Insider it has no role in baggage handling and advised us to contact the ground handlers.
There are 4,200 lost bags owned by air passengers at Dublin Airport, according to UTV. Sky Handling was dealing with more than 2,800 pieces of luggage at the airport, per UTV.
The incident comes at a time when many passengers have reported losing their luggage after traveling via plane. One traveler told Insider he spent nearly $1,600 on replacement clothes and items after his suitcase went missing after an Air Canada flight from San Diego to Rome. Passengers have also said they've lost wedding dresses and their parents' ashes.
More: Airport plane Airplanes lost luggage
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2022-07-28T12:32:48Z
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Passengers' Lost Luggage Found Dumped in Trash at Airport: Report
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https://www.businessinsider.com/passengers-lost-luggage-found-dumped-trash-dublin-airport-report-2022-7
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https://www.businessinsider.com/passengers-lost-luggage-found-dumped-trash-dublin-airport-report-2022-7
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'What if inflation hasn't peaked?' Barclays' head of US equity strategy lays out how much further the market could fall even in a shallow recession - and reveals the stocks investors should buy to counter the risk of stagflation
Karin Wasteson
Worries about the economy are growing on Wall Street.
The risk of a 70s-like stagflation scenario is real, according to Barclays' top equities strategist.
He believes that growth will slow but it doesn't have to end up in a deep recession.
The strategist lays out the parts of the market investors should target in this difficult environment.
With inflation still running way too hot and the Federal Reserve hiking by 75 points again yesterday, the picture remains very complex for investors.
In an interview with Insider, Barclays' head of US equity strategy Maneesh Deshpande said he expects the Fed will hike to around 3.25-3.5%, potentially by the end of 2022 - and that inflation will come down to 2-3% by the end of next year.
The strategist believes that growth will no doubt slow down, but it doesn't have to end up in a full-blown recession.
"Our baseline scenario is that growth will slow, but we can escape an outright recession, at least in the US," he said. "Our European colleagues think that we could enter into a technical recession for Europe. But for the US it's more of a slow down; a soft landing sort of scenario. Yes, things are bad, but we can avoid a recession at this stage", Deshpande added.
With regards to whether investors should wait with cash until markets bottom out, Barclays still sees some more downside, at least in the short term.
"So it's worth doing some hedging or still keeping some cash to get a better opportunity. Even if we do get a soft landing there is concern we could see a 5-10% downside from here."
There are three main reasons for this short term cautious stance: margins, the shift from goods to services, and valuations, according to Barclays' US strategist.
The first is valuations. "Even if we do get a soft landing, there are concerns that valuations have come down quite significantly. The main driver of valuations historically have been the level of inflation. We still see some downside in valuations," explained Deshpande.
The second reason is earnings. "If we get into a recession, earnings will drop. Earnings are nominal, so they will be helped by inflation broadly speaking, that's the positive side. Here, there are two main reasons why we are cautious. Number one is margins. Margins have been really strong despite the supply chain problems. But going forward we'll see a decline in margins."
In general, corporate profits and growth are highly correlated. Most of US GDP is dominated by services consumption, he noted.
"There's also a rotation from goods to services happening. Whether we enter into a recession or not, that rotation will continue. And that's going to have important ramifications, because corporate profits are much more driven by goods consumption than services consumption. This rotation - from goods to services- is going to be bad for profits."
On a sector-level, Barclays is overweight financials. "This is because as long as rates keep going up, it's beneficial for banks," Deshpande said.
"Declines in growth stocks have been particularly brutal," he continued. "Among growth stocks though, there are pockets which we like - particularly large cap tech stocks, like e-commerce. The FAANGs and so forth. They are more stable companies so we continue liking them."
Deshpande explained that there are various secular trends happening right now that investors should tap into. One such trend is the cloud transition. "We like cloud-infrastructure related stocks," he said.
In terms of geography and from a tail risk perspective, he believes there is more risk in Europe than the US, and opportunity in parts of Asia. "We do like Chinese equities, but only buy using call options."
Key ongoing market risks include the war in Ukraine, and its subsequent gas supply issue, noted Deshpande. "Come winter, you could potentially start seeing some significant impact on Europe."
"Another risk is China's zero Covid policy. They are also attempting to control the housing market and house builders. That looks like it's contained right now, but there's a possibility there could be some systemic implications of that."
But the big elephant in the room, said Deshpande, is inflation. "People thought [the rate of inflation] was down to supply chain issues, and that it would eventually come down on its own," he said.
"That story has changed over the past year. Now, clearly the narrative is that we might have to go hard, even to the point of causing a recession. There is a lot of faith that [inflation rates will eventually come down]. But from a risk perspective; what if we don't see peak inflation?"
"The market is pricing in recession, but not the risk of stagflation. What if growth does slow down, but inflation still doesn't come down? That's a real risk. It applies more to Europe, but also to the US."
More: Stocks to Buy which stocks should I buy? Stock Market Crash stock tips 2022
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2022-07-28T12:36:54Z
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Stocks to Buy: Barclays' Equities Chief on Recession and Stagflation
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https://www.businessinsider.com/stocks-to-buy-barclays-equities-chief-on-recession-and-stagflation-2022-7
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https://www.businessinsider.com/stocks-to-buy-barclays-equities-chief-on-recession-and-stagflation-2022-7
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Forget about 'the flippening': A blockchain CEO says bitcoin will never lose crypto's market cap top spot to ethereum despite the imminent 'merge'. He explains why and lays out what's next for the price.
The crypto market is finding its feet after the market crash across May and June.
Ethereum proponents hope the upcoming "merge" will lead to it becoming the biggest cryptocurrency.
The CEO of a blockchain firm told Insider why he believes bitcoin cannot be caught by rivals.
The crypto market is finding its feet after a severe crash spanning May and early June.
It remains unclear whether a sustained recovery will be seen from here, or just a pause before a further dip, but each week that goes by without further panic selling increases confidence that the worst may have passed.
That being so, attention will gradually turn to the future shape of the market and one of the key questions is whether ethereum will become the number one crypto, or if bitcoin's position as the largest digital coin is unassailable.
Bitcoin has a market value of around $440 billion and accounts for roughly 42% of the total market. Ether, meanwhile, has a market size that is less than half of that right now, according to CoinMarketCap.
But ethereum proponents have a strong case. The blockchain is still dominant in terms of Web3 activity, with defi (decentralized finance) and NFT markets gaining widespread adoption, although there has been a drop-off during the recent downturn.
The other big reason for optimism over ethereum's prospects is the long awaited "merge" that is expected to go through in September.
This will merge the proof of work network with the new proof of stake version. This does away with mining in favour of staking, and is expected to push the price up because the large numbers of tokens paid to miners will no longer be sold on a daily basis. It is also expected to pave the way for big increases in performance and scalability in the future.
Bitcoin advocates are unconvinced by the merge, and ethereum's claim to be the number one crypto sometime soon.
Among them is Alex Miller, CEO of blockchain firm Hiro. He argues bitcoin can maintain its lead because the key applications that run on ethereum can also be run on bitcoin using the Stacks protocol, and other similar tech.
Miller expects adoption of Web3 protocols such as defi lending platforms, decentralized exchanges (DEXs) and NFT marketplaces on Stacks, and by extension bitcoin, to accelerate. This will feed through into the price of the coin over time, helping to preserve its market cap lead.
"As blockchains like Stacks become more prominent, they create a stronger ecosystem around bitcoin, which only adds innovation and more opportunities for developers and users," he said.
"There's a bunch of that happening on bitcoin via Stacks already. I think the merge doesn't do a lot for actually improving the developer experience. It's not going to revolutionize what you can build on top of it."
"It'll be moderately good for ethereum's price, but honestly I think that's less about the technology behind it and more just about increased certainty. This is been going on for five or six years now, so the future potential I think is largely priced in."
Miller also pointed to the "Bitcoin Odyssey" project as a reason to be optimistic on bitcoin becoming a Web3 platform rather than just a coin.
Investors including the people behind Stacks and crypto exchange OKCoin have put together $165 million of funding targeted at making bitcoin competitive as a platform for defi and other app development.
Turning to the state of the crypto market and the bitcoin price, Miller struck a relaxed tone and unsurprisingly for somebody heavily involved in crypto, is comfortable with the recent volatility.
"What happened to the market was similar to what you saw in 1999 to 2001 where you had the bottom kind of fall out and massive corrections in the general tech market. It was just a matter of time, right. There was a lot of weird stuff that was going on," Miller said.
"The crash clears out the stuff where there's funny games being played, but there is still a fundamental value to these things. It could drop more, but it has still dropped less than in previous crypto winters and downturns, right?"
Bitcoin has fallen around 75% from peak to trough this time around, while ethereum dropped around 80%. These figures, while dramatic, are much less than the 95% drops seen in earlier cycles. Miller said this is indicative of a maturing asset class.
While noting that nobody can say with any certainty what the price will do next, Miller added he sees a consolidation period over the next few months as likely, with price ranging between $15,000 and $30,000 for some time before moving on to new highs.
More: bitcoin price prediction bitcoin price crypto crypto investing
which crypto should I buy?
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2022-07-28T14:08:15Z
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Bitcoin Price: BTC Won't Lose Top Spot Despite 'Merge': Hiro
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https://www.businessinsider.com/bitcoin-price-btc-eth-merge-lose-top-spot-blockchain-2022-7
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https://www.businessinsider.com/bitcoin-price-btc-eth-merge-lose-top-spot-blockchain-2022-7
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Sweat Economy developed a 'move-to-earn' game where players can earn crypto called 'SWEAT' for doing daily exercises in real life. See the 33-slide pitch deck they used to raise $13 million, backed by Jump Crypto and GSR.
Sweat Economy raised $13 million in a private token sale.
Sweat Economy
On Thursday, Sweat Economy announced a $13 million private token sale.
Participants in the raise include GSR Ventures, Jump Crypto, Electric Capital, and Spartan Capital.
Sweat Economy announced that players can trade its token, SWEAT, on exchanges in mid-September.
Sweat Economy, billed as "the ecosystem that rewards people for movement," announced a $13 million private token sale on Thursday. The funds will go towards developing and expanding the project's Web3 network.
In the group's "move-to-earn" game, players can download a mobile app, walk or exercise, and then get rewarded with tokens called "SWEAT." SWEAT – a cryptocurrency which will be launched on the NEAR protocol – is slated to begin listing on crypto exchanges beginning in mid-September. SWEAT can also be staked to earn passive income, and used as a governance token for a DAO, or decentralized autonomous organization.
The capital will go towards turning Sweat Economy into a "Web3 on-ramp for health and fitness enthusiasts," the project said in a statement. "Sweat Economy wants to onboard the next billion users to crypto through rewarding their daily physical activity."
The announcement comes at a pivotal moment for crypto markets, as the industry tries to recover from the Federal Reserve's hawkish monetary policies to combat inflation, and amid contagion concerns following the downfall of the space's largest players like centralized lender Celsius and hedge fund Three Arrows Capital. The industry's total market cap is down almost two-thirds since its all-time high last year, according to Messari. Bitcoin and ethereum, however, are up 14.25% and 44.09% in the past month, respectively.
The team behind Sweat Economy was also behind fintech startup Sweatcoin. Established in 2015, Sweatcoin created a fitness app that allows users to track their steps on a daily basis and rewards them with an in-game digital currency. They can use the tokens to buy branded products, donate to charities, and request digital services from companies Sweatcoin partners with. Per Sweatcoin, more than 100 million participants use the app, with users exchanging over $70 million worth of value for their Sweatcoins in Q1 of 2022.
Backers in the private token sale include Blockdream Ventures, GSR Ventures, Jump Crypto, Electric Capital, Spartan Capital, and the NEAR Foundation, along with Polygon co-founder Sandeep Nailwal, Polkadot co-founder Bjorn Wagner, and entrepreneur Vinny Lingham.
"The next billion users will come into crypto through earn, play, and pay," Melody He, a partner and co-founder of Spartan, said in a note to Insider. "We are very excited to invest and support the Sweatcoin team who have experience building the easiest and fairest reward program for hundreds of millions of users in 150 countries to bring the best crypto reward app to market."
Check out the 33-slide pitch deck, which has been edited for length, that helped Sweat Economy raise its funding.
Sweat Economy raised $13 million in a private token sale to jump into Web3.
More: Investing crypto Blockchain
move-to-earn
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2022-07-28T14:08:21Z
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PITCH DECK: Web3 Project Raises $13M to Develop Move-to-Earn Game
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https://www.businessinsider.com/crypto-pitch-deck-web3-raise-move-to-earn-game-2022-7
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https://www.businessinsider.com/crypto-pitch-deck-web3-raise-move-to-earn-game-2022-7
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The Thursday release is among the most highly anticipated economic reports of 2022. The recovery from the coronavirus recession has been significantly slower this year, impeded by supply-chain tangles, weaker spending, and the fastest inflation in 41 years. Trade deficits and slower inventory growth powered an unexpected contraction in the first quarter, marking the first decline since the pandemic crash. The second-quarter reading sparks concerns of a technical recession, which is loosely defined as consecutive quarters of negative GDP growth.
While the report paints a bleak picture of the economy's performance, other data suggests the recovery was still intact through the end of June. Job creation remains extraordinarily strong, with the country adding 372,000 nonfarm payrolls last month. The unemployment rate, meanwhile, stayed at a historically low 3.6%. Should hiring trends hold steady, the US is on track to return to pre-pandemic employment figures by the end of the summer.
More: Economy GDP gross domestic product Recessions
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2022-07-28T14:08:27Z
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US GDP Shrinks 0.9% in Q2, Intensifying Recession Fears
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https://www.businessinsider.com/gdp-q2-economic-growth-recession-inflation-hiring-us-recovery-progress-2022-7
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https://www.businessinsider.com/gdp-q2-economic-growth-recession-inflation-hiring-us-recovery-progress-2022-7
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Trump and Pence are facing off in another proxy fight in a competitive governor's race.
The former president and VP are backing rival candidates in the Wisconsin GOP governor primary.
Pence has endorsed former Lt. Gov. Rebecca Kleefisch while Trump is backing Tim Michels.
Former VP Mike Pence is again breaking with former President Donald Trump in the Wisconsin governor's race, endorsing former Lt. Gov. Rebecca Kleefisch over Trump's pick in the primary.
Pence announced his support for Kleefisch, who served as lieutenant governor under Gov. Scott Walker, on Wednesday. Trump is backing businessman and construction executive Tim Michels for the GOP nomination to challenge Democratic Gov. Tony Evers.
—Rebecca Kleefisch (@RebeccaforReal) July 27, 2022
"Rebecca Kleefisch is the only candidate that will deliver a stronger and more prosperous Wisconsin, and I am proud to support her," Pence said in his endorsement. "Rebecca has a proven conservative track record and will draw on her experience to give parents more control of their children's education, grow the economy and get Wisconsin back to work, fight for traditional conservative values, and make Wisconsin streets safer."
Kleefisch has also been endorsed by other potential 2024 GOP presidential hopefuls including Sen. Ted Cruz, former UN Ambassador Nikki Haley, and Gov. Kim Reynolds of Iowa.
The Wisconsin GOP gubernatorial primary on August 9 will be the third instance in the 2022 primaries where Trump and Pence have found themselves in a proxy fight over a swing state governor's race. In all three cases, Trump's lies that the 2020 election was stolen from him loomed large and heavily shaped the race.
Pence and Trump found themselves on the opposite sides of the Georgia governor's race in May, where Trump-backed primary challenger David Perdue, largely running on Trump's election grievances, lost handily to incumbent GOP Gov. Brian Kemp, who Pence endorsed and stumped for in the final days of the race.
Trump and Pence are also facing off in a proxy war in Arizona's GOP gubernatorial primary on August 2.
Pence and Trump gave dueling speeches on Tuesday outlining their respective visions for the GOP as both prepare for likely 2024 presidential campaigns. Trump's nearly hour-and-a-half-long speech began with a grisly recounting of crime before veering into mockery of transgender people and his usual grievances about the 2020 election and his political enemies.
Pence, speaking at the Young Americans for Freedom conference in Tampa, gave his classic stump speech and touted the accomplishments of the Trump-Pence administration.
"I couldn't be more proud of the record of the Trump-Pence administration," Pence said in response to a question from a college student. "I don't know that our movement is that divided. I don't know that the president and I differ on issues, but we may differ in focus"
More: Wisconsin President Donald Trump Rebecca Kleefisch Tim Michels
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2022-07-28T14:08:39Z
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Mike Pence Breaks With Trump in Wisconsin Governor's Race
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https://www.businessinsider.com/mike-pence-breaks-with-trump-in-wisconsin-governors-race-2022-7
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https://www.businessinsider.com/mike-pence-breaks-with-trump-in-wisconsin-governors-race-2022-7
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To survive inflation, think about it like the weather
Here's what: Inflation has a psychological toll
If you've been in your head a lot recently, worrying or ruminating or planning or calculating, you may be experiencing the psychological toll of inflation.
Surveys have found that when consumer prices tick up, so too does anxiety, and it can lead to impulsive behaviors that hurt you in the long run — like selling out of all your stocks because the market has dropped dramatically and you're terrified of losing more money.
"In therapy-speak we call it 'anticipatory anxiety,' where somebody has anxiety about things that they are anticipating," says Lindsay Bryan-Podvin, a social worker and financial therapist. "It can take up a lot of energy. We see a lot more exhaustion, and tiredness, and burnout, because the thoughts in their head are quite a bit busier."
With a lot of issues around money, like ups and downs in the stock market, we may realize they're happening in the background but they don't affect us on a day-to-day basis. But with inflation, Bryan-Podvin explains, the impact is obvious.
"With gas prices, it's a price they see daily or every other day. So when that number goes up or goes down, it's something we can really see," she says.
Another place where inflation is obvious is at the grocery store. There, anticipatory anxiety shows up in many ways, including suddenly having to worry about your grocery spending more than you ever did before.
"For a lot of my clients, they might have been the types of folks who'd just run in and out of the grocery store without thinking twice about it; now they're being a bit more thoughtful about their menus," says Bryan-Podvin.
While some old-school financial gurus might say, "That's good! You should have been meal-planning to begin with," Bryan-Podvin points out that that's not exactly helpful.
"If it wasn't very stressful for them and it wasn't harming them to run in and grab a few items, then it's not that big of a deal," she says. Now, though, having to think a lot about each purchase can lead to more stress.
How to 'dress for the weather' to deal with the toll
Think about inflation like inclement weather, Bryan-Podvin advises. "We can't change the weather, but we can dress for it," she says. "When it comes to dealing with things like a potential recession, inflation, stock prices falling — we have zero control over that. But we can financially dress for the weather."
Start by protecting yourself with an emergency fund: Even if you haven't saved a dime for emergency expenses up to this point, it's never too late to start. Don't beat yourself up — just start tucking away spare cash now that you can rely on if lean times continue.
"That provides psychological safety and literal financial safety," says Bryan-Podvin. "Even $20 a week is better than $0 a week. We want to build it up over time."
Take a look at your spending: You don't have control over inflation, but you do have control over your own output to a certain extent.
Bryan-Podvin recommends calling or chatting with your cell phone provider and internet provider; you may be able to downgrade your service or ask for a better deal as a loyal customer. And while you can't necessarily change how much you spend on utilities, your gas, electric, and other providers may be willing to charge a balanced rate every month so you have a more predictable bill.
"It can be helpful to look for duplicate subscriptions," adds Bryan-Podvin. At one point she and her husband were both paying for Netflix, for example. "Even financial therapists struggle with this."
See if there's a way to increase your income: Put simply, think about asking for a raise or doing some side work to temporarily bring in more money if you need to cover your expenses.
Don't look at your retirement accounts: If you have years before retirement, it's not worth the stress to look at your accounts now — the market will rise and fall many times before you're ready to leave work. Over the long term, it always goes up. And remember: You only lose money if you sell during a dip.
Unless you can find a loophole that allows you to get a good sense of a home's condition without paying for your own inspection, don't waive it, says writer and homeowner Olivia Christensen.
Early retirees Kiersten and Julien Saunders fired their financial advisor and decided to manage their investments independently after joining the FIRE movement.
The Amex Platinum Concierge helped writer Rachel Dube secure tickets to Wimbledon and an Adele concert, along with booking her hotel (with elite-like perks) and business class flights.
Millionaire Kendra Y. Hill says giving herself a generous $30,000 monthly discretionary spending budget keeps her from feeling restricted.
More: Newsletter PFI Newsletter PFI Storytelling Inflation
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2022-07-28T14:08:51Z
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PFI Newsletter: Inflation Is Taking a Psychological Toll
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https://www.businessinsider.com/pfi-newsletter-inflation-psychological-toll-2022-7
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https://www.businessinsider.com/pfi-newsletter-inflation-psychological-toll-2022-7
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Apple TV+ series 'Platonic' shut down production for 2 days after logging 24 COVID cases, as the summer surge continues to roil
Apple TV+ series "Platonic" was forced to pause production for two days due to the spread of COVID.
Rose Byrne and Seth Rogen series "Platonic" paused production for two days due to the spread of COVID.
The LA Dept. of Public Health has logged 24 positive cases related to the production, which has since resumed.
The wave of cases comes as a summer surge continues to hit Los Angeles and other areas.
The upcoming Seth Rogen and Rose Byrne comedy series "Platonic" was forced to pause production for two days last week after logging a series of positive COVID-19 cases on set over the course of a few weeks, a source familiar with the matter told Insider. The Los Angeles County Department of Public Health has reported 24 positive cases related to the production so far.
The brief shutdown is said to have minimally impacted production of the Apple TV+ series, which is produced by Sony Pictures Television, and filming resumed on Friday, according to the source.
The series of cases on "Platonic" comes as a summer surge continues to hit Los Angeles and other areas, amid the ongoing spread of the highly transmissible BA.5 variant, which according to the Centers for Disease Control now accounts for nearly 82% of all cases. At the Los Angeles International Airport, for instance, a COVID outbreak of over 400 cases has spread among TSA staff, the Los Angeles Times reported this week.
Elsewhere in the entertainment industry, the number of positive COVID cases at Warner Bros. Studios' Burbank lot has now risen to 58 positive cases, according to the LADPH. Deadline had first reported that outbreak, which by mid-July had reached 43 cases and by the trade publication's count was the largest reported COVID cluster at any studio or network. Lionsgate had reportedly clocked 21 cases in May, which according to Deadline resulted from staffers who had attended CinemaCon in Las Vegas.
Hollywood's unions — SAG-AFTRA, the Directors' Guild, IATSE , Teamsters, and Basic Crafts — recently extended their on-set COVID protocol agreement to September.
In LA, the seven-day daily testing positivity rate has surpassed 15%, according to the LADPH, with 7,316 new cases and 20 deaths reported on Wednesday. The LA Times reported that California's current spike of COVID cases could exceed last winter's outbreak. But the current official figures are likely an undercount given the rise in at-home rapid testing and the halt of federal funding to test those without insurance. The number of reported tests has fallen to about 46,000 in late July from about 150,000 in early June alone.
More: Hollywood Entertainment COVID
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2022-07-28T15:35:29Z
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Apple TV+ Show 'Platonic' Logs 24 COVID Cases, Pauses Production
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https://www.businessinsider.com/apple-tv-show-platonic-24-covid-cases-shuts-down-production-2022-7
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https://www.businessinsider.com/apple-tv-show-platonic-24-covid-cases-shuts-down-production-2022-7
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FedEx just warned contractors any attempt to negotiate collectively would be a breach of contract. Read the full letter here.
FedEx workers stand around near a FedEx Ground truck in New York City on March 16, 2021 in New York City.
Last week, FedEx's largest contractor said he will form a committee to negotiate with the company.
Efforts to negotiate collectively represent a breach of contract, FedEx Ground CEO John Smith said.
FedEx won't "discuss, negotiate, or renegotiate" agreements with a committee, Smith said.
Last week the tension between FedEx Ground and its 6,000 delivery contractors increased when the largest of those contractors sent a request to the company that came with a warning.
Route Consultant CEO Spencer Patton published a letter and a video imploring FedEx Ground to raise rates for contractors to keep them from going bankrupt and jeopardizing the function of the delivery network.
"If Wall Street analysts, if FedEx corporate, and FedEx Ground understood the degree to which the network is in danger, there would be widespread panic," Patton said in the video.
Next week, when Patton's company puts on its annual conference in Las Vegas, it will invite all its fellow contractors to vote to select a 10-member committee to represent them in negotiations with the company.
FedEx's 6,000 delivery contractors are independent contractors and have never made such a clear attempt to act as a group. Patton told Insider the committee will not be a union, and that the group will decide what to do if FedEx does not grant the per-stop pay raise Patton requested by November 25.
Last week, a FedEx spokesperson told Insider it has found negotiations with individual contracted businesses to be "most effective." In an email response sent to contractors Wednesday and obtained by Insider, FedEx Ground CEO John Smith delivered a stronger message.
"FedEx Ground will not discuss, negotiate, or renegotiate service provider agreements or financial terms with a committee or any individual purporting to represent a collective body of service provider businesses," he wrote. "Any effort by service providers to negotiate financial terms as a group is a breach of the contract with FedEx Ground."
Patton told Insider he will respond to Smith's message within a week.
Here's the full memo FedEx Ground CEO John Smith sent to contractors (referred to as contracted service providers or CSPs):
Last week FedEx Ground received a letter which was accompanied by a publicly released video and was followed very closely with related media stories. The letter and the video make several claims about FedEx Ground and your individual businesses and reference the formation of a third party that would "speak on behalf of thousands of CSPs across the United States." In the letter and video, certain "across the board" financial demands were made of FedEx Ground along with a deadline for the company to agree.
Since these communications were released in a very public and coordinated manner, FedEx Ground wants to make clear to every service provider our initial thoughts concerning this effort.
FedEx Ground recognizes the challenges of current market conditions and cost pressures. We remain committed to engaging in a productive dialog with service provider businesses to understand and address these issues.
FedEx Ground will not discuss, negotiate, or renegotiate service provider agreements or financial terms with a committee or any individual purporting to represent a collective body of service provider businesses. The service provider model was built around the recognition that each business has unique and distinct characteristics and entrepreneurial goals, and therefore each agreement is – and will, without exception, continue to be – negotiated individually. Moreover, any effort by service providers to negotiate financial terms as a group is a breach of the contract with FedEx Ground.
FedEx Ground expects every business under contract to honor its obligation to provide service.
The communications published contain several inaccuracies. For example:
Service levels are not declining and have instead improved significantly since January, including a steady climb in the past three months.
The communications inaccurately speculate about the impact of Sunday operations on FedEx Ground's financial results. We have been evaluating the efficiency and market demand for these operations for several months, and it is after this thorough analysis that FedEx Ground announced the suspension of Sunday delivery operations in certain markets.
Lastly, the communications mischaracterize as a "fine" the Liability Coverage Contribution and Safe Operating Incentive that is based on each service provider's accident frequency. The vast majority of service provider businesses will not, in fact, be affected by this program in October as claimed, but rather several months later. In addition, based on current safety results, more service provider businesses than not will experience no financial impact – or will receive an additional financial payment from FedEx Ground for excellent safety results.
We recognize that the shifting market dynamics and current economic conditions may pose new challenges for your business. Whether your company operates under the ISP or TSP agreement, or both, let me assure you that all of us at FedEx Ground are committed to working directly with your company to understand the market in which it operates. We continue to encourage authorized officers of service providers to pursue the opportunity to renegotiate your business' agreement as you see fit.
We are committed to listening, reviewing the relevant data about your business, and engaging in a productive business-to-business dialog. We believe this is the most effective path for creating continued opportunities for success and respecting the fact that each of you own and lead your own businesses.
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2022-07-28T15:35:47Z
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www.businessinsider.com
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FedEx Warns Contractors Collective Negotiating Is Breach of Contract
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https://www.businessinsider.com/fedex-organizing-efforts-contractors-breach-of-contract-2022-7
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https://www.businessinsider.com/fedex-organizing-efforts-contractors-breach-of-contract-2022-7
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Over the last year, millions of Americans have joined the Great Resignation and left their jobs because of how much they were making among other reasons. A new report shows that job switching has payed off for many of them, even after accounting for inflation.
The chart below of Pew's analysis of 12-month moving median year-over-year real wage growth based on Current Population Survey data shows the typical worker who has switched employers has tended to see an increase in real wages, and real wage growth has especially soared in recent months. This hasn't been the case for the median worker who hasn't gone on to a new employer; they have seen losses in real wages every month since October 2021.
Additionally, more recent 12-month moving average data from the Atlanta Fed's Wage Growth Tracker show that those who have switched jobs are seeing higher wage growth than those who haven't left their job. A "job switcher" here is defined as someone who is "in a different occupation or industry than a year ago" or "has changed employers or job duties in the past three months."
The new report from Pew Research Center also highlights those who have left the labor force completely after saying goodbye to a job. Kochhar said "people are not necessarily leaving for greener pastures."
"Many people who leave employment one month are either unemployed the next month or they have left the labor force, even if just temporarily," Kochhar said, adding that this could because of a few different reasons like to leave the labor force to attend school.
Did you switch your job during the pandemic? Did you leave your job because you wanted higher pay? Contact this reporter at mhoff@insider.com.
More: Economy Pew Research Center Real Wages Wage Growth
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2022-07-28T15:36:35Z
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People Who Are Switching Employers Are Way More Likely to See Raises
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https://www.businessinsider.com/switching-jobs-real-wage-changes-inflation-pew-research-center-2022-7
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https://www.businessinsider.com/switching-jobs-real-wage-changes-inflation-pew-research-center-2022-7
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The student-loan industry has disproportionately targeted borrowers of color.
A new report, supported by Elizabeth Warren, aims to crack down on schools violating civil rights.
It suggests a collaboration with Federal Student Aid and the Office of Civil Rights to monitor institutions.
The student-loan industry has disproportionately burdened borrowers of color — but agencies in President Joe Biden's administration might be able to change that.
On Thursday, Student Defense — an organization that advocates for borrowers' rights — released a report highlighting the "woefully inadequate" response the Education Department has had toward the student-loan industry targeting minority borrowers and women. Specifically, the report highlighted how student-loan abuses have violated the civil rights of borrowers of color and emphasized the way in which a collaboration with the Federal Student Aid office and the Education Department's Office of Civil Rights (OCR) could work together to change that.
"For too long, Black and Brown borrowers have been disproportionately impacted by our broken student loan system," Massachusetts Sen. Elizabeth Warren told Student Defense. "The Department of Education and the Office for Civil Rights and Federal Student Aid should enhance their collaboration to help tackle racial disparities in our higher education system and to protect the civil rights of Black and Brown students."
As Insider previously reported, the student debt burden can follow Black borrowers long after they graduate — while the median white borrower will owe just 6% of their student debt 20 years after entering college, the median Black borrowers will still owe 95% of their debt over the same time period, according to an NAACP brief.
In 2020, Warren, along with New Jersey Sen. Cory Booker and then-Sen. Kamala Harris, wrote a letter to OCR to request information on how the office planned to address the "alarming racial disparities in our federal student loan system through vigorous enforcement of the nation's civil rights laws." They wrote that the department "has at its fingertips evidence of massive racial disparities in the federal student loan system," like targeted of minority communities by for-profit schools, and they wanted an investigation into those practices.
However, there has not been significant progress toward tackling those disparities, which is why the Student Defense reported suggested OCR and Federal Student Aid work together to bring enforcement actions against institutions that are violating borrowers' civil rights. Specifically, the report suggests the two offices can coordinate by:
Officially establishing a partnership between the two offices to better monitor any practices that may be violating civil rights laws
Bringing joint enforcement actions to stop federal aid from going to schools that violate civil rights laws
And focusing oversight on discriminatory practices the Education Department has yet to investigate, like "reverse redlining," which is when a predatory institution would compel borrowers of color to take significant amounts of federal aid for an education with little value.
"There is a real opportunity for the Department of Education to protect thousands of Black and Brown who have been targeted by predatory companies through practices such as reverse redlining," Student Defense President Aaron Ament said in a statement.
Early this year, Student Defense brought a lawsuit against Walden University, alleging that the school lured Black students and women into a business degree with false program requirements, costing them over $28 million in overpaid tuition. The plaintiffs are seeking a judgment that the university violated their civil rights. In this case, as the report noted, should Federal Student Aid and OCR work together to investigate Walden, the two offices could require the school to provide disclosures of cost and completion time to students when enrolling in a program.
This collaboration would build on actions Biden's Education Department has already taken to increase scrutiny over predatory schools. Insider reported last year that the department revived an enforcement office that would strengthen oversight of and enforcement actions against schools that participate in the federal-student loan program or distribute any federal grants.
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2022-07-28T17:07:01Z
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www.businessinsider.com
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'Broken Student Loan System' Violates Black Borrowers' Civil Rights: Warren
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https://www.businessinsider.com/broken-student-loan-system-civil-rights-violations-elizabeth-warren-2022-7
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https://www.businessinsider.com/broken-student-loan-system-civil-rights-violations-elizabeth-warren-2022-7
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People on Twitter are upset with Kinzinger for joining conservatives in mocking Kamala Harris.
They're saying he shouldn't have seized on a video of the VP describing herself to viewers at an ADA event.
"Blind and low vision people might want to watch this," one disability rights advocate tweeted.
Rep. Adam Kinzinger, who has been praised for his role on the January 6 committee, is disappointing some people on Twitter for joining conservatives in mocking Vice President Kamala Harris.
They're saying the Illinois Republican shouldn't have seized on a video clip that went viral among conservatives of Harris, introducing herself with her pronouns and describing herself as "a woman sitting at the table wearing a blue suit." The video he retweeted doesn't mention that she was speaking to disability advocates at an event marking the 33rd anniversary of the 1990 Americans with Disabilities Act.
"If you ever wonder why the left still can't win elections despite the insanity of Trumpism, save stuff like this for reference later 👇👇👇. You can get mad at me, but I'm not wrong," Kinzinger tweeted on Wednesday.
People did, in fact, get mad at Kinzinger engaging in Republican culture wars. They let him know they didn't expect this from him after his role holding his own party accountable as a member of the House January 6 committee.
Here's one response from Steve Silberman, author of NeuroTribes: The Legacy of Autism and the Future of Neurodiversity: "In which @AdamKinzinger, an allegedly "good" Republican sitting on the 1/6 Committee, proudly pisses all over the legacy of Sen. Bob Dole, who championed the Americans with Disabilities Act, to take a cheap shot."
Kinzinger fired back at Silberman, saying he needs to read his tweet.
"I was making a point that these things aren't popular. But if you think the middle loves it then by all means keep it up," Kinzinger tweeted. "We'll see who was right after the election. If you are I'll happily admit it, I'm not too proud."
He later added, "Also if you can find where Bob Dole have his pronouns with being a man at a table please do. That could sway me."
Sam Crane, a disability rights advocate, tweeted that she attended the event and that Harris was describing herself because "Blind and low vision people might want to watch this." And then she tangled with Kinzinger after he retweeted a Democratic consultant who questioned whether Blind Americans aren't familiar with who the sitting vice president is. Kinzinger responded that was his point.
"People can say I'm being insensitive, but, I'm not," Kinzinger tweeted. "I know what this is. I made the point that this kind of stuff does NOT sit well with the middle. Yet the anger is focused on those of us telling the facts."
Crane responded: "Do you truly believe every Blind person is a radical leftist, or are you just hoping to ensure that they all are by the time you're done with this schtick?"
—Sam Crane, turbo-boosted (@Samanticka) July 28, 2022
"Thoughtful people" explained why Harris did this, Connie Schultz, a writer who is married to Democratic Sen. Sherrod Brown, responded to Kinzinger.
"For a while there, you became a hero to many Americans who are scared for our democracy," she wrote. "How sad that you choose to squander that good will."
The American Association of People with Disabilities, after hearing questions about visual descriptions, tweeted that they are an accessibility practice for "blind and low-vision people" to ensure everyone context that sighed people may take in.
"A good example of a visual self-description is: "I am a woman sitting at a table wearing a blue suit," they tweeted. "We are glad to see this accessibility practice expanded in government, and hope to see more government leaders give visual self-descriptions in the future!"
—AAPD (@AAPD) July 27, 2022
Kinzinger, 44, is retiring after this Congress rather than run for reelection for a seventh term. He currently represents a northern Illinois district and was among the 10 House Republicans who voted to impeach Trump in the immediate aftermath of the January 6 insurrection at the Capitol. Kinzinger has since spoken openly about the possibility of challenging Trump in the 2024 GOP presidential primaries.
More: Adam Kinzinger Americans with Disabilities Act Kamala Harris Twitter
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2022-07-28T17:10:52Z
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www.businessinsider.com
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Kinzinger Riles Twitter by Mocking Vice President Kamala Harris
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https://www.businessinsider.com/adam-kinzinger-riles-twitter-by-mocking-vice-president-kamala-harris-2022-7
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https://www.businessinsider.com/adam-kinzinger-riles-twitter-by-mocking-vice-president-kamala-harris-2022-7
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WASHINGTON, DC - JUNE 22: U.S. Senate Majority Leader Sen. Chuck Schumer (D-NY) speaks on student debt at the AFL-CIO on June 22, 2022 in Washington, DC. The AFL-CIO held an event to discuss “the importance of student debt cancellation for American workers.”
Over 100 Democrats signed a letter to Biden urging him to extend the student-loan payment pause.
They referenced the ongoing pandemic and inflation as reasons for continued relief.
The payment pause is currently set to expire on August 31, just over a month away.
Over 100 Democratic lawmakers have a message for President Joe Biden: extend the student-loan payment pause.
On Thursday, Sens. Chuck Schumer, Bob Menendez, Cory Booker, and Elizabeth Warren, along with Reps. Ayanna Pressley, Lauren Underwood, and Tony Cárdenas, led 100 of their Democratic colleagues in sending a letter to Biden and Education Secretary Miguel Cardona pushing for an extension of the federal pause on student-loan payments. The pause, currently set to expire after August 31, is just over a month away, and millions of borrowers are still waiting for news on whether it might be extended again, along with Biden's decision on broad student-loan forgiveness.
"Resuming student loan payments would force millions of borrowers to choose between paying their federal student loans or putting a roof over their heads, food on the table, or paying for childcare and health care—while costs continue to rise and while yet another COVID-19 variant increases hospitalizations nationwide," the lawmakers, including Rep. Alexandria Ocasio-Cortez and Rep. Ilhan Omar, wrote. "Despite significant decreases over the last month, gas prices are still high, and many borrowers still have to pay exorbitant amounts each week in order to commute to their jobs."
Inflation levels in the US right now are at a 41-year high, and it has some members of Biden's administration worried that canceling student debt could exacerbate the high prices. Jared Bernstein, a member of the White House Council of Economic Advisers, previously told The New York Times that restarting payments at the same time as canceling student debt could balance out any inflationary impact.
But yet, speculations of another possible extension are circulating. The Education Department in recent weeks has instructed student-loan companies to halt outreach to borrowers regarding the upcoming student-loan resumption, which is the same action the department took in March before extending the pause. But while Education Secretary Miguel Cardona said borrowers will receive "ample notice" on any changes to the timeline, August 31 is quickly approaching and uncertainty levels are high.
Biden is also in the process of making a decision on broad student-loan forgiveness, reportedly considering $10,000 in relief for borrowers making under $150,000 a year. But given the possibility of targeted relief, lawmakers and advocates say an extension of the pause is further warranted to ensure any relief can be fully implemented before borrowers are hit with another monthly bill.
The lawmakers referenced how resuming payments would "further complicate administrative actions already underway or contemplated by the Department" like forgiveness, along with temporary waivers for targeted loan forgiveness programs for public servants and low-income borrowers.
While the White House has not yet commented on another possible extension, Republican lawmakers have consistently criticized the possibility. GOP Rep. Virginia Foxx recently said Biden has "wildly overstepped" his authority by extending the payment pause four times, chalking them up to a "stimulus payment" because they have left money in borrowers' pockets during the pandemic.
When it comes to broad relief, Press Secretary Karine Jean-Pierre said during a press briefing this week that Biden "understands what this means for families, how burdensome this can be. I just don't have anything more to share. And he said himself, by the end of August, so that's right around the corner... He'll make a decision."
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2022-07-28T17:11:04Z
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www.businessinsider.com
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107 Dem Lawmakers to Biden: Extend Student-Loan Payment Pause Again
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https://www.businessinsider.com/extend-student-loan-debt-payment-pause-biden-cardona-schumer-aoc-2022-7
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https://www.businessinsider.com/extend-student-loan-debt-payment-pause-biden-cardona-schumer-aoc-2022-7
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Gas prices are still tanking — and are on track to fall below $4 per gallon by mid-August
Consumers fill up at a Shell gas station July 13, 2022, in Miami Beach, Fla.
The average US gas price is on track to dip below $4 in August, according to GasBuddy.
More than 55,000 stations across 17 states are already selling gas below that level.
Rebounding demand, falling supply, and rising crude prices could derail the downtrend.
As the gas-price recovery pushes into its second month, Americans could soon be paying prices that were commonplace just 10 years ago.
The average price for a gallon of gas in the US hit $4.28 on Thursday, according to AAA data. That's down from the mid-June peak of $5.016. Even more encouragingly, Thursday marks the 43rd consecutive day that gas prices have fallen. That's in sharp contrast to the several-month rally that kicked off in November 2020.
The steady downtrend could pass a promising level in just a few weeks. The national average gas price is on track to hit $3.99 in early August, Patrick De Haan, head of petroleum analysis at GasBuddy, said in a Thursday tweet. The Wednesday drop of 4.5 cents was the largest on record, he added. That helped pull forward the $3.99 forecast by about one week.
More than 55,000 stations across 17 states already boast sub-$4 prices, according to GasBuddy. The most popular price in the US is now $3.99 per gallon, with $3.89 and $3.79 following close behind.
Averages in Texas and South Carolina have already fallen below the $3.80 level, according to AAA. Mississippi, Tennessee, and Georgia are likely to join that cohort in the coming weeks.
The weeks-long decline signals the next inflation report could show some cooling. Gas prices count for much of the price growth Americans experienced over the past year. Energy prices are broadly up 42% in the year through June, and gas costs are roughly 60% higher than they were in June 2021. Rising food, car, and transportation prices have also played major roles in lifting inflation to four-decade highs, but plunging gas prices could be the first component to pull year-over-year price growth from its peak.
A few factors threaten the downtrend. Gas demand rebounded to 9.25 million barrels per day from 8.52 million last week, according to the Energy Information Administration, suggesting lower prices could be drawing more drivers onto roads. If demand continues to rise, price declines could slow or even reverse course entirely.
Supply has fallen under pressure as well. Total domestic gasoline stocks fell to 225.1 million barrels from 228.4 million last week. Though the drop is fairly small, a persistent decline for domestic stocks could worsen the supply-demand imbalance that drove gas prices higher in the first place.
The months-long slump in crude prices is also showing signs of slowing. West Texas Intermediate crude oil traded slightly higher to $97.49 per barrel in the Thursday session. That's up from the low of about $95 seen earlier in July, and recent sessions saw crude futures trade sideways. If oil futures swing higher, that will put more upward pressure on pump prices.
Gas prices are set to extend their decline through the end of the month, but as demand edges higher and travel season continues, the path to $4 gas will likely be a bumpy one.
More: Economy Gas Prices oil gas prices Inflation
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2022-07-28T17:11:16Z
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www.businessinsider.com
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Gas Prices Falling Still, on Track to Hit $4 Average by Mid-August
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https://www.businessinsider.com/gas-prices-falling-inflation-outlook-energy-crude-oil-gasoline-costs-2022-7
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https://www.businessinsider.com/gas-prices-falling-inflation-outlook-energy-crude-oil-gasoline-costs-2022-7
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Hospital closures are symptomatic of broken healthcare infrastructure in rural America.
Homeward, a healthcare startup, is using a hybrid model to pioneer a new way of patient care.
This article is part of the "Innovation at Work" series exploring the trends and the barriers to workplace transformation.
Rural America is home to 46 million people, yet since 2010, the region has witnessed 140 hospitals close.
Of the remaining hospitals, over 30% of them risk similar outcomes due to inflation and workforce shortages. Though more patients have turned to telehealth in recent years, startups looking to remodel rural healthcare want to tackle another piece of the puzzle — the area's shrinking healthcare infrastructure.
"Rural America is in the midst of a hospital-closure crisis," Dr. Rishi Wadhera, the head of Health Policy and Equity at the Smith Center for Outcomes Research at Beth Israel Deaconess Medical Center and an assistant professor of medicine at Harvard, told Insider.
He said these closures make the situation more difficult for rural doctors, whose patients "tend to be older and have more chronic conditions."
"While the growth in telemedicine will help address gaps in care for rural patients, we need to invest more in the healthcare infrastructure of rural areas, to ensure rural physicians have the resources and services they need," he said.
A hybrid healthcare model for rural communities
Telemedicine's rise in virtual-medical appointments not only enables physicians and patients to meet without risking COVID-19 exposure, but also increases access for patients who live far from hospitals.
Startups like Homeward Health are leveraging both in-person and telehealth models to support rural communities and their access to healthcare.
The company, which former Livongo executives founded this year, plans to use a mix of mobile clinics and virtual patient monitoring to simplify the healthcare experience.
Amar Kendale, Homeward's cofounder and president, said he knew the company needed a multifaceted approach to serve rural America. "Technology helps with one piece of the puzzle, but given there are fewer and fewer hospitals and clinics, we also needed to address the infrastructure piece," he said.
To support the area's healthcare infrastructure, Homeward partnered with the retail-pharmacy company Rite Aid to provide mobile, on-site primary-care services at 700 Rite Aid locations across rural America.
Homeward plans to open its first mobile clinics in rural Michigan later this year.
Photo courtesy of Homeward
Kendale said Homeward's network of mobile clinics can make healthcare more convenient for rural communities. "Now instead of driving 90 minutes to a hospital or clinic, which they don't do until they are in a medical emergency, residents can get their medical check-up and testing in the community," he said. "We can become part of their routine so that when patients pick up their prescriptions, medical practitioners can also give them in-person care."
While Homeward supports virtual follow-up care and ongoing telehealth check-ins, the company also wants to prioritize specialty care and early crisis prevention.
Heart-disease care is one focus for Homeward because of the disparity in treatment between rural and urban patients. Studies have found that when presented with similar symptoms at a hospital, rural patients are less likely than their urban counterparts to receive cardiovascular care.
Kendale said Homeward plans to include heart disease as part of its comprehensive-care model when they open their first mobile clinics in rural Michigan later this year.
Technology ushers in an old-school approach
Under the Homeward model, a patient suffering from heart failure would have already been diagnosed in a mobile clinic instead of the emergency room, when it could be too late. Through Homeward, the system would virtually monitor the patient's vitals, with the technology flagging the need for an in-home visit.
Amar Kendale, Homeward's cofounder and president
Kendale said new technology is bringing back medical practices from more than 50 years ago. "It is reminiscent of the traveling doctor who would make house calls," he added.
In transforming the rural-healthcare model, Kendale hopes it will also change the roles of nurses, doctors, and other rural health practitioners. Studies have shown they worry about the quality of care they are able to deliver to their patients.
"Rural healthcare workers have seen their resources shrink, and so the burden has been falling on them," Kendale said. "They have not had a lot of support. We hope this alleviates some of the workload and some of the burnout."
More: Innovation at Work Healthcare Telehealth Technology
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2022-07-28T17:11:22Z
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www.businessinsider.com
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How One Healthcare Startup Is Remodeling Patient Care in Rural America
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https://www.businessinsider.com/healthcare-startup-is-remodeling-patient-care-in-rural-america-2022-7
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https://www.businessinsider.com/healthcare-startup-is-remodeling-patient-care-in-rural-america-2022-7
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The housing market could be in a recession, even if the rest of the economy isn't
Rising inflation and interest rates are discouraging buyer demand.
Chris Low, the chief economist at FHN Financial, says the housing market may already be in a recession.
Experts have told Insider the real estate market is bracing for a "soft landing."
The US economy on the whole may not be in a recession yet, but it's possible the housing market is.
Red-hot demand for homes has cooled as rising inflation and interest rates weigh on wallets. It's caused bidding wars to decline, home price growth to slow, and builder confidence to sink.
Chris Low, the chief economist at FHN Financial, says these signs may indicate the housing market is in a recession.
"Housing is a leading indicator of the broad economy," MarketWatch first reported Low saying. "I would say housing is in a recession, and that likely means the rest of the economy will be in a recession soon."
Indeed, the housing market is going through a dynamic shift. Buyers are backing out of more deals and home builders' production volumes are declining. According to survey results from John Burns Real Estate Consulting, the national cancellation rate among homebuilders reached 14.5% this June – the highest rate since April 2020. As the real estate market cools off, it could lead to either one of two things: a correction or a crash.
The former would entail a gradual decline in prices to more sustainable levels, while the latter would result from a rapid decline in prices triggered by widespread panic from homeowners and investors.
However, with more than $9.9 trillion in homeowner equity and strict lending standards, a real estate crash is unlikely to happen — especially the likes of 2008.
As the housing downturn progresses, Doug Duncan, the chief economist of Fannie Mae, believes a "soft landing" is on the horizon.
Home sales and mortgage demand is already cooling. According to the US. Census Bureau, home sales slowed through June to an annual pace of 590,000 units – the lowest rate since April 2020. Data from the Mortgage Bankers Association also shows that mortgage applications have decreased every week in July.
"Increased economic uncertainty and prevalent affordability challenges are dissuading households from entering the market, leading to declining purchase activity that is close to lows last seen at the onset of the pandemic," Joel Kan, the Associate Vice President of Economic and Industry Forecasting at MBA, said in a statement.
Whether or not a possible recession will lead to a correction or a crash is yet to be seen, but with relatively healthy market fundamentals — US homebuyers can take comfort in knowing it won't be as bad as the mid-2000s.
More: RBC Capital Markets Tom Porcelli Recession Fannie Mae
Mortgage Lenders
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2022-07-28T17:11:28Z
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www.businessinsider.com
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Housing Market Could Be in Recession, Even If Economy Isn't
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https://www.businessinsider.com/housing-market-recession-rising-mortgage-rates-2022-7
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https://www.businessinsider.com/housing-market-recession-rising-mortgage-rates-2022-7
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The inside story of how 29-year-old Poparazzi cofounder Alex Ma failed his way to creating the anti-Instagram app now valued at over $100 million
Alex and Austen Ma, Poparazzi's cofounders.
Photo-sharing app Poparazzi has gained 5 million users since its launch in May 2021, it says.
The company's Series A, led by Benchmark, gave it an over $100 million valuation days after launch.
Its cofounder candidly shares the backstory of how he and his brother struggled their way to success.
When Poparazzi launched in May 2021, the photo-sharing app seemed like an overnight success. Within 24 hours, the app soared to the top of Apple's App Store.
Its cofounders, Alex and Austen Ma, had run a prelaunch campaign on TikTok to drum up buzz, and it worked. Almost 500,000 people preordered the app, the majority of them Gen Z users looking for a social-media platform that was less performative than Instagram, Alex Ma told Insider.
Despite their marketing, the Ma brothers and their team were not prepared for such a fast response and found themselves working long hours to resolve a host of technical issues during the launch. For every 100 people who downloaded the app, the team was able to authenticate the identity of only one. Alex Ma said authenticating identities was a priority because his team wanted users to feel like they were still in control of the platform, even though it didn't allow them to post their own pictures.
Then came the controversy: Within weeks, users began complaining that they were seeing their exes, former managers, and people they had never wanted to see again slinking through their feeds. Poparazzi was automatically following everyone in a users' contact list who was also on the app. That feature was disabled after the complaints.
"When you build something that goes viral, there are just so many things that can go wrong," Ma, 29, said. "The hard thing is understanding that you're human and you make mistakes and, at the same time, prioritizing those things and getting them fixed."
In June, after hitting more than 5 million users in its first year, Ma said, Poparazzi confirmed it landed a $15 million Series A funding round led by Sarah Tavel at Benchmark. News of that deal, which valued the company at an estimated $120 million, according to PitchBook, was reported in 2021, days after its launch. Ma declined to confirm the reported valuation.
With millions of users, Poparazzi has joined the wave of social-media apps that have taken off in the past year, like BeReal, HalloApp, and Locket, marketing themselves on authenticity.
Such apps are built around reinforcing users' most intimate relationships and position themselves as opposing the manufactured self-presentation that's become the hallmark of other visual social-media platforms, like Instagram and TikTok.
Poparazzi doesn't allow retakes, filters, or selfies. Instead, it asks users to post pictures of their friends, not of themselves. According to the company, over 90% of its users are between the ages of 14 and 21, which means Poparazzi's engagement is almost exclusively driven by Gen Z.
"When you look at how millennials use the internet, they post perfect, aesthetically pleasing profiles," Ma said. "For Gen Z, that's pretty cringe. There is a higher social credibility and subtle 'flex' when someone else is posting a photo of you."
Poparazzi's fast growth might suggest the Ma brothers experienced instant success. But they toiled for three years and developed about 10 apps before they launched Poparazzi, Alex Ma said. They knew they wanted to build a new kind of social app, but when it came to putting that into practice, they "had no idea what they were doing," he added.
The many iterations of Poparazzi
In summer 2018, the Ma brothers secured $2 million in seed funding from Floodgate's Ann Miura-Ko to launch an audio social network called TTYL. Alex Ma describes it as a "Clubhouse for friends" that would connect users through voice. The brothers built three or four versions of TTYL before launching the app, but it garnered only a few hundred thousand downloads. So nine months in, they went back to the drawing board.
At first, they considered returning the venture capital, but eventually, they decided to turn their company, also named TTYL, into what Alex Ma calls "an app shop." For the next two years, they churned out a new social-media app every 90 days, trying for a hit.
The idea for Poparazzi came in mid-2020, with the pandemic still raging. The team built the app in less than three weeks, but they decided not to launch immediately, as they had done with the others, realizing that an app built around taking pictures of friends would likely flop while people were socially distancing.
By the end of 2020, though, TTYL was running out of funding and they had to decide if they were going to shut down, Ma said. They opted to launch Poparazzi in a final attempt to save the business.
The team staged a trial run in February 2021 at a small high school in Tennessee. So many people flocked to the app that Apple's beta-testing program, TestFlight, couldn't accommodate all the downloads, Ma said. That's when the team realized they had struck a chord with Gen Z users.
Over the next two months, they ran a prelaunch campaign on TikTok directed at Gen Z. They reposted viral videos from users anticipating the launch of Poparazzi with a link to the app's preorder page on the App Store. In one video — set to the tune of "Hiiipower" by Kendrick Lamar — a girl posed in various angles for the camera as the three reasons she thought Poparazzi was poised to be "the next big social media app" flashed across the screen.
The campaign generated so much hype that by the time they debuted Poparazzi, there were hundreds of thousands of users on the wait list.
Alex Ma's tips for aspiring founders
As he looks back on the past few years, Ma has two tips he'd give to aspiring founders.
Focus on a small scale.
"You want to build something that 100 people love first before thinking about a million," Ma said.
Solve a problem that a large number of people have.
"Don't get too married to the idea. Get married to the problem," Ma said. "We were always married to this idea of connecting people authentically."
Ma also gave Insider an exclusive look at four of the failed apps he built before launching Poparazzi, none of which are still available.
TTYL: An audio social network built on AirPods
An audio social network built on AirPods.
CampusFM: An app that creates audio rooms in university campuses across the country
Yearbook: Digital yearbooks for classmates to sign each other's virtually
Digital yearbooks for classmates to sign each other's yearbooks virtually.
Typo: A live-texting platform that functions like a crossover between FaceTime and texting
More: Features Gen Z spending gen z
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2022-07-28T17:11:32Z
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How 29-Year-Old Poparazzi Founder Alex Ma Failed His Way to Success
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https://www.businessinsider.com/how-poparazzi-founder-alex-ma-failed-his-way-to-success-2022-7
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https://www.businessinsider.com/how-poparazzi-founder-alex-ma-failed-his-way-to-success-2022-7
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The CEO of one of the biggest apartment landlords says he doesn't know how high rents will climb — but is betting they'll outrun inflation
Kelsey Neubauer and Alex Nicoll
New apartments in downtown Phoenix.
Equity Residential CEO Mark Parrell on Wednesday said he's not sure just how high rents would get.
But he said he expected that whatever inflation was — they'd increase by more than that.
Parrell also said typical residents of Equity Residential's luxury units could afford increases.
As American renters continue to reel from rising housing costs, Wall Street investors are betting that housing will get even pricier relative to the costs of other goods and services.
While Equity Residential CEO Mark Parrell says he doesn't know how high rents will be in the long term, he adds that they are likely to outpace inflation.
One of the largest owners of rental housing in the US, Equity Residential operates more than 80,000 luxury units across 210 buildings in places from longtime hubs like New York City to pandemic hot spots like Austin, Texas.
"I think you should expect that apartments, especially in our portfolio, are optimized in a way with our pricing engine that we can continue to have a real return that exceeds the rate of inflation," Parrell told analysts Wednesday on the company's second-quarter earnings call.
The consumer price index — which is used to measure the rate of inflation — rose by 9.1% from June 2021 to June of this year. Economists predict it will probably level out at about 8.6% by the end of the year.
If Parrell's business calculus is right, then, rents would go up by more than 8.6% in 2021. In the average year, he added, rent grows by about 3.5%.
Clearly, a big difference. And some might ask how rents could keep growing after a record-shattering year in 2021, when rents across the US rose by 10.1%.
Parrell cites the simple economics of supply and demand, arguing that there are still many more people who need housing than there is housing available.
"With inflation the way it is, the numbers are likely to be a fair bit higher because supply and demand are still also good," Parrell said.
Buoyed by increasing rents, Equity Residential reported a net income of $223.3 million with a 14.6% increase in funds from operation per share, an alternative to earnings per share used by real-estate firms.
And according to him, people are willing — and able — to pay higher rents.
He said in the earnings release that his firm viewed its "affluent resident base as more resilient to rising inflation due to higher levels of disposable income and lower relative rent-to-income ratios."
For instance, he said, renters of Equity Residential's units in New York City put about 18% of their income toward rent, so renters can handle increases. A personal-finance rule of thumb is that people should spend 30% or less on rents.
Population-level research, however, shows that not everyone can absorb higher housing costs so easily. According to US Census Bureau data from 2020, 46% of those polled said they spent more than 30% of their income on rent. People putting over that much of their income towards housing expensive are known as "house poor," according to Bankrate, and they may be forced to skimp on other necessities to afford a roof over their heads.
More: Real Estate Rent Housing Affordability Equity Residential
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2022-07-28T17:11:38Z
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Equity Residential CEO Says Rents Will Keep Climbing, Outrun Inflation
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https://www.businessinsider.com/multifamily-apartment-building-rents-will-get-higher-inflation-equity-residential-2022-7
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https://www.businessinsider.com/multifamily-apartment-building-rents-will-get-higher-inflation-equity-residential-2022-7
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Nike's most popular shoes like Jordans, Air Force 1s, and Dunks are jeopardizing its ambitious environmental goals
Matthew Kish and Catherine Boudreau
Leather sneakers are the most popular with shoppers at trendsetting places such as Flight Club in Los Angeles.
Wesley Lapointe/Los Angeles Times via Getty Images
Leather has one of the highest carbon and waste footprints of any sneaker material.
Nike's leather usage increased 35% last year because of the demand for iconic shoes such as Dunks.
Despite 10% reduction goal, Nike's average product carbon footprint didn't change from 2015 to 2020.
The biggest threat to Nike's ambitious environmental goals may be its most enthusiastic customers.
The retro kicks that sneakerheads can't get enough of, including Jordans, Dunks, Blazers, and Air Force 1s, use significant amounts of leather, which has some of the highest carbon and waste footprints.
The popularity of the shoes pushed up Nike's leather use by 35% last year and put the company behind a goal to use more sustainable materials.
"Due to the consumer preference for classic Nike leather icons in fiscal year 2021, leather models are outpacing the growth of the rest of Nike footwear, putting us behind our plan to achieve our 2025 goal," Nike wrote in its latest corporate responsibility report.
Nike is considered a sustainability leader in the global fashion and sportswear industry, with some of the most aggressive targets to shrink its carbon footprint, but the demand for its iconic leather shoes highlights the ongoing tension between corporate climate goals, consumer demand, and Wall Street expectations.
"What's more important, financial goals or carbon footprint goals? At the end of the day, Nike wants to sell more Jordans because there is demand, and companies are always looking to grow revenue," said Ken Pucker, a senior lecturer at Tufts University and former executive at Timberland. "That comes ahead of delivering on an emissions target."
Nike did not respond to Insider's questions for this story.
The Nike Mercurial Vapor Next Nature is made with 50% recycled content by weight.
'These are systemic issues'
As part of a new commitment to industry-standard, science-based targets, Nike wants to slash its greenhouse-gas emissions by 90% by 2025. But the trend is moving in the opposite direction.
The company's total emissions jumped more than 15% since a 2015 baseline, partly driven by the "increasing emissions intensity" of Vietnam's coal-powered electrical grid and the increased use of leather, Nike said in the report.
Vietnam accounted for 30% of Nike's footwear manufacturing in 2021, more than any other country. That figure has since increased to 44%, said an annual report filed last week with the Securities and Exchange Commission.
In the report, Nike said its new science-based goals were "much bigger" than any of the company's previous ambitions and required pushing beyond "incremental reductions" and unlocking systemic change — which wouldn't be felt until the coming years.
In 2019, Nike announced its Move to Zero effort, prominently branded on some shoeboxes, which aims for a zero carbon and zero waste future in order to "help protect the future of sport."
But an Insider review of two decades of reportsfound that Nike had a mixed record when it came to hitting past corporate-responsibility and environmental goals.
The company typically sets five-year targets every fifth year for its factories, workforce, and environmental efforts. In fiscal year 2020, the company said it hit seven of 19 goals, made progress toward six, and came up short on six.
A success: The percentage of renewable energy at Nike-owned or -operated facilities increased 34 percentage points to 48%.
A miss: Nike's average product carbon footprint remained unchanged between 2015 and 2020, despite a 10% reduction goal.
Still, Nike is regularly lauded for its environmental efforts. Sustainability experts cautioned against criticizing the company too heavily, given the complexity of global supply chains.
"These are systemic issues," said the Carbon Trust's Pauline Op de Beeck, who works with fashion, retail, and manufacturers to become more environmentally sustainable. "These things can't just change overnight. They require collaboration and long-term strategic planning."
Nike's Dunk in black and white is often described as the "Panda."
'Traditional leather waste is negating the gain we've made elsewhere'
One of the most popular Nike sneakers right now is the Dunk, a shoe that debuted in 1985 as a basketball sneaker, but which has "trickled down from sneaker lovers to the general masses," HighSnobiety said. One of the most popular colors is a black-and-white model, often called the "Panda," which the publication described as the "uniform for plenty of Gen Z and millennials."
More than 2,000 pairs of Pandas sold on the online secondary market StockX in a recent three-day period, most for about $200, almost double the $110 retail price.
The Panda is made with leather.
"Leather is one of the most inefficient materials in a footwear production environment," Nike said in the report. "To date, traditional leather waste is negating the gain we've made elsewhere and is contributing the vast majority of our incremental waste."
Materials account for about 70% of Nike's product carbon footprint.
And while Nike has developed next-generation materials such as FlyKnit and the environmentally friendlier Flyleather, classic leather models remain most popular with sneaker collectors who dictate consumer trends.
Nike describes Flyleather as more durable, lighter weight, and easier on the environment than traditional leather. But last year, it accounted for 0.1% of Nike's leather usage. Synthetic leather decreased 10 percentage points to 26%.
While Nike's more sustainable products, including the Space Hippie, which is made with factory scraps, seem to be gaining in popularity, they don't immediately sell out, and they fetch below retail on the secondary market. Nike's also introducing new sustainable silhouettes, including a sneaker that can be easily taken apart for ease of recycling.
CEO John Donahoe mentioned the introduction of more sustainable versions of the Nike Pegasus Turbo and Mercurial Vapor, two popular footwear models, during the company's most recent quarterly call with analysts. He also teased a new sustainable material that could "change the apparel industry."
Nike's corporate headquarters features numerous sustainable building practices, including extensive solar panels.
Jeremy Bittermann/Nike
'They could put a shoe on the moon'
Nike's sweeping environmental efforts date back to the sweatshop criticisms that roiled the company in the 1990s. In 1998, Phil Knight, the founder and then CEO, acknowledged the criticisms in a headline-grabbing speech at the National Press Club and committed the company to a string of reforms, including setting more environmental targets.
Since 2001, Nike has regularly released corporate responsibility reports that give detailed information about its factories, workforce, and sustainability efforts.
Among the biggest materials accomplishments has been getting the greenhouse gases out of Nike's popular Air technology, the cushioning system that it uses in many of its shoes.
It took 60 experts working for 50 different organizations, and tens of millions of dollars in investments, to get the greenhouse gases out of Air bags, Nike said in reports covering fiscal years 2004 and 2006.
Nike has also stacked solar panels on corporate buildings, put wind turbines on distribution centers, shrank shoeboxes, and printed receipts on biodegradable paper.
Those actions have paid off, but nowhere near enough to offset emissions from Nike's sprawling network of contract factories that make the company's products.
Nike estimated that almost 99% of its emissions came from factories it didn't own, also known as Scope 3 emissions, a common problem for multinationals trying to reduce carbon footprints.
Nike acknowledged the need to dive deeper into its supply chain than ever before in its most recent corporate responsibility report. The company says it plans to help convert more contract factories to renewable energy.
Nike's also striving for absolute emissions reductions, rather than reducing the amount of carbon per product.
"These factors create a set of carbon targets that become more difficult to achieve as our business grows," the company said in the report.
Smaller, niche sneaker brands see an opportunity where Nike has struggled.
Rommel Vega designed sneakers for sustainably minded brands such as Columbia, Keen, and Merrell before starting Holo, his own line of sustainable outdoor shoes. He believes the footwear industry is at the point where the automotive industry was a few years ago.
After Tesla roared onto the scene, industry giants raced to prioritize more sustainable electric vehicles, including Ford, which now makes an electric F-150.
Of course, Nike has an advantage.
"It takes money," he said. "They have all the resources in the world. They could put a shoe on the moon if they wanted to."
Do you work at Nike or have insight to share? Contact the reporter Matthew Kish via the encrypted messaging app Signal (971-319-3830) or email (mkish@insider.com). Contact the sustainability reporter Catherine Boudreau via Signal (802-782-9286) or email (cboudreau@insider.com). Check out Insider's source guide for other tips on sharing information securely.
More: Retail Sustainablity Sportswear
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2022-07-28T17:11:50Z
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Nike Is Behind on Environmental Goals Due to Popularity of Jordans, Dunks
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https://www.businessinsider.com/nike-behind-on-environmental-goals-popularity-leather-jordans-dunks-airforce-2022-7
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https://www.businessinsider.com/nike-behind-on-environmental-goals-popularity-leather-jordans-dunks-airforce-2022-7
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Physical gold basics
How to buy physical gold
Downsides of physical gold
Other ways to own gold
How to buy gold to diversify your portfolio and help shield against market downturns
Bullion coins and bars are the "purest" way to invest in gold, but can be costly to own and slow to sell.
lionvision/Getty Images
Physical gold can be bought for investment in two basic ways: bullion bars or coins.
Buying physical gold involves researching reputable dealers, understanding pricing, and shouldering storage costs.
Alternatives to physical gold include gold stocks and funds — less "pure," but more liquid, investments.
Investing in gold can be a smart way to diversify a portfolio — especially one that includes stocks, bonds, and mutual funds.
Not only is gold largely immune to inflation, instead hewing closely to the cost of living, but gold also serves as a hedge against economic disaster. When the rest of the stock market falls, gold often goes the other way, appreciating in value and protecting the canny investor against major losses in other financial assets.
For those reasons, many finance experts suggest investing 5% to 10% of your portfolio in gold, potentially going as high as 15% in times of political or economic crisis.
There's the option of investing in gold securities, but purchasing physical gold is appealing for many investors because it represents the "purest" way to invest. You own the actual, yellow metal — a commodity that can't be erased or hacked, and survives catastrophic events that destroy paper currency and/or digitized financial accounts.
For investment purposes, physical gold can be bought in two basic forms: coins or bullion.
Coins (sometimes called bullion or mint coins) are created and issued by the governments of different countries, specifically for the purpose of investment. That makes these coins different from collectible, numismatic ones — those in your uncle's antique coin collection.
While several nations mint them, not all gold coins are created equal as reliable investments. The most common and universally recognized ones currently in circulation are:
the American Gold Eagle
the Australian Gold Nugget
the Canadian Maple Leaf
the South African Krugerrand
Bullion is gold in its bulk form. It comes in either ingots, which are pressed, or bars, which are poured, and is stamped with relevant details like purity, origin, and weight. To be traded on the market, investment gold must have a purity of 99.5%, and bullion can range in weight from quarter-ounce wafers to 430-ounce bricks.
For the novice gold investor, coins tend to be more appealing for their liquidity and ease of storage. But if you're buying in larger quantities, bullion has the advantage of lower premiums because it requires less processing than coins.
To keep gold holdings as liquid as possible, it's generally wise to purchase in smaller quantities — 10 one-ounce bars instead of one 10-ounce bar, for example — to improve your odds of finding a buyer if need be.
Gold is priced by the troy ounce, a special unit 2.75 grams higher than a traditional ounce. The amount it's fetching on the open market is known as the "spot price."
But equipping yourself to purchase gold means knowing more than just the price. Here are some tips:
1. Know when to buy: Since the price of gold moves in opposition to the stock market, the best time to buy gold is when a recession or financial crisis is looming. That advice is so popular, however, that demand tends to shoot up in such moments, depleting gold reserves faster than they can be refilled.
So another good rule of thumb is to buy gold when things have calmed, at least temporarily — the eye of the storm, so to speak. But many think the long-term outlook for gold remains good, so now might be the time to jump in.
2. Understand how gold prices are determined: The price of gold is determined by the cycle of supply and demand, so if you're buying at a busy time, all that competition drives up the price. Also note that when you purchase gold, you'll be paying for the asset itself, plus a premium of 1% to 5%, so make sure you budget for the full amount.
3. Find the right dealer: Your regular brokerage or financial services firm probably doesn't deal in gold. Bullion is typically only sold at banks and gold dealers, while minted coins can be purchased at coin dealers, brokerage firms, and precious metal dealers as well. Wherever possible, try to purchase from a bank first, as they often offer lower markups than dealers.
Banks won't always have the exact coins or size bars you're looking for, however, so if you do turn to a dealer, do your research to find someone reputable. That means looking closely at online ratings in trade journals and sites and checking the dealer for complaints.
4. Have a storage plan: Stashing large amounts of gold in your home leaves you vulnerable to theft, so insure it, and locate an off-site storage location where you can rest assured it's protected. In fact, if you want to hold gold in an IRA account, the IRS mandates that it be stored with a metals-specialist custodian.
Whether bullion or coins, gold is valued for its permanency and physicality. But those aspects can be a double-edged sword. Because gold in your possession isn't invested, it can't return any dividends or interest. In fact, you will likely lose some money on it, as gold is costly to store; most commercial storage facilities will charge you between 0.5% to 2% of the value of your holdings, which can really eat away at your bottom line.
And while it'll retain its value, it won't appreciate either — unless you're lucky enough and fast enough to sell when the spot prices start to soar.
Even if you do see a spike in the price of gold that you'd like to take advantage of, your physical gold holdings are surprisingly illiquid. Selling transactions and arrangements can drag on for days or weeks. Before initiating a sale, make sure you're in agreement about who will pay for shipping and insurance costs, and ask about any potential hidden fees.
There are other ways to scratch your gold itch, however — a plethora of financial assets that are not only easier to buy and hold, but can also appreciate in value.
First up: gold stocks, shares in companies involved in mining, refining, and other aspects of gold production. These stocks respond to movements of the price of gold. But they trade on public exchanges like other equities, with all the advantages of liquid sales and transparent prices. And of course, you can buy them through regular brokerages and trading platforms.
Then there are gold-oriented ETFs and mutual funds. These give investors a slice of a wide swath of the gold market either through investing in the precious metal itself or through shares in companies involved in gold production.
They're lower-cost, more diversified, and more liquid than individual stocks, making these funds a popular choice for the more conservative investor.
More sophisticated investors might consider purchasing an option on a gold futures contract. An option gives its owner a window in which to buy or sell a particular asset at a particular price (it's an opportunity but not an obligation). Buying an option is basically a bet at which way an asset — in this case, the price of gold — will move. Correct guesses trigger a payout. And if you guess wrong, the option just expires worthless and all you're out is the option cost.
Purchasing gold can be a great investment for those who want to hedge against an economic or socio-political collapse or a financial crisis. If you're truly worried about the apocalypse and want the purest play, you'll want to get physical with bullion or coins.
But if your goal is simply to diversify your portfolio, and perhaps gain some appreciation, gold-backed securities (stocks, funds) are likely a better option. It can be reassuring to hold a physical asset instead of an intangible share, but make sure you're getting what you want out of the investment.
Either way, the goal is to make gold work for you, not the other way around.
PERSONAL FINANCE How to invest in silver, a precious metal that diversifies your portfolio and rises with new tech industries
More: Freelance Gold bullion american eagle
Krugerrand
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2022-07-28T17:11:57Z
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How to Buy Gold: Types of Investments & Tips for Owning
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https://www.businessinsider.com/personal-finance/how-to-buy-gold
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https://www.businessinsider.com/personal-finance/how-to-buy-gold
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Southwest is hiring for thousands of roles, including its first-ever remote positions. Here's how the airline updated its hiring process to keep up with demand.
Southwest has hired 10,000 new employees in 2022 and plans to bring on between 3,000 and 5,000 more.
The airline created a more efficient hiring system to keep up with the competitive labor market.
Southwest also announced its first-ever remote roles and has seen strong demand for the positions.
Last summer, Southwest was falling behind its competitors, struggling with flight disruptions because of understaffing and technology malfunctions. But this year, the company has turned things around and has one of the lowest rates of cancellations among US airlines, when domestic travel is in the midst of a chaotic season.
That's partly thanks to the airline's rigorous hiring efforts, said Greg Muccio, the senior director of talent acquisition at Southwest. Muccio said Southwest has hired 10,000 new employees so far this year, returning to pre-pandemic staffing levels. Additionally, the company is still aiming to onboard between 3,000 and 5,000 new employees by the end of 2022.
To attract more talent around the country, Southwest also offered remote jobs for the first time. In September, the airline plans to close its in-person reservation centers across the country and allow all customer-service agents to work from home. When the recruiting team announced remote roles, they received 27,000 applications in 90 minutes and had to close the post, Muccio said.
Given the highly competitive labor market, Southwest focused on creating more efficient hiring practices to prepare for summer travel: Muccio's team started having career days at different airports, giving candidates job offers on the spot. Southwest also dropped the GED requirement for some airport roles.
"We're not lowering the bar," Muccio told Insider in a previous interview. "We're very fanatical about making sure that we hire to our values."
This comes as other industries, such as tech and finance, face layoffs and hiring freezes. With concerns about an economic downturn, now may be the time to get in the door at the popular airline.
In addition to Southwest's open positions, candidates may be enticed to apply by the fact that Southwest avoided furloughs, layoffs, and pay cuts throughout the pandemic — this was not the case at other airlines, such as United and American, which furloughed 32,000 employees combined in October 2020.
Muccio spoke with Insider about what the new Southwest hiring process looks like and how to stand out.
Hiring for remote roles
Of the candidates that interview at Southwest, Muccio said about 55% receive a job offer. For the remote call-center roles, they invited about 2,000 candidates to interview and expect to hire 500 by November.
First, candidates answer basic screening questions via online platforms about logistics, such as access to the internet and location. Then, there's a panel interview, either virtual or in person, depending on the candidate's location. If the interview goes well, the team starts to extend offers and go through background checks.
Muccio said the main qualification he looks for in remote roles is customer-service experience. He also emphasized that candidates should be comfortable with technology and digital tools to help customers reschedule flights, receive refunds, or get travel information.
"You want to come across as someone who's helpful, knowledgeable, and empathetic," Muccio said. "This is who gets called when flights get canceled or there's weather, so you've got to be a really good listener."
More: Southwest Airlines Airports Job Openings
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2022-07-28T17:12:21Z
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Southwest's 2022 Hiring Process and How to Get Hired
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https://www.businessinsider.com/southwest-hiring-process-2022-how-to-get-hired-2022-7
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https://www.businessinsider.com/southwest-hiring-process-2022-how-to-get-hired-2022-7
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JetBlue Airways and Spirit Airlines are set to merge in a groundbreaking $3.8 billion deal.
Analysts say the merger could be good for consumers in terms of product but low fares aren't a sure thing.
Third Bridge analyst Christopher Raite says the "JetBlue effect" will impact legacy airline ticket prices.
Spirit Airlines and JetBlue Airways have agreed to merge and create the fifth largest airline in the US, signaling the end of one of the most infamous brands in the sky, an accellerated expansion of the "JetBlue effect," and the beginning of an era of uncertainty for customers of both airlines.
While Spirit's hundreds of planes and the pilots that fly them will suddenly be available to JetBlue once the deal closes, amounting to a shot in the arm for the growing New York-based carrier, one thing is still up in the air: fares. JetBlue CEO Robin Hayes insists the merger will enable JetBlue to "grow faster."
Henry Harteveldt, travel analyst and president of Atmosphere Research Group, told Insider that the large presence of Frontier — the only large ultra-low-cost carrier on the map after Spirit merges — could put pressure on JetBlue to keep fares low.
Here's what customers can expect if the deal goes through.
Spirit planes will become JetBlue planes
According to JetBlue, the move to acquire Spirit will offer customers more choice because of the duo's "complementary networks and fleets."
Both carriers operate Airbus A320 family aircraft. If merged, JetBlue will have a total of 438 aircraft with 300 more on order. Moreover, the combined networks will expand the New York-based carrier's route map to 125 destinations in 30 countries, resulting in over 1,700 daily flights, JetBlue said.
While JetBlue and Spirit are both low-cost carriers, they operate differently. Spirit has maintained a bare-bones, a la carte business model that requires customers to pay for extras, like luggage and food. Meanwhile, JetBlue offered a more full-service model with business class in some planes, seatback screens, free WiFi, and free drinks and snacks.
According to the carrier, all of Spirit's planes will be retrofitted with JetBlue's cabin, meaning no more traveling hours on slim, hard seats.
Flying JetBlue Airways from New York to London.
Harteveldt told Insider that JetBlue has proven that it can be "nimble when completing cabin upgrades," meaning the Spirit planes that need to be retrofitted will be done quickly. However, he emphasized that the transition will still take time.
Third Bridge senior analyst Christopher Raite told Insider that JetBlue's acquisition of more aircraft is good for the consumer because they get them sooner, which means more planes and pilots are available to run a reliable schedule.
JetBlue will dominate the East Coast, but more planes mean it can expand elsewhere
Currently, JetBlue and Spirit have a large presence on the East Coast. Spirit has a stronghold in places like Fort Lauderdale and Los Angeles, and JetBlue wants to capitalize on those key markets, as well as others, including Orlando and San Juan.
Moreover, the airline sees Spirit's strong presence in the Big Four airline hubs, including Las Vegas, Dallas, Houston, Chicago, Detroit, Miami, and Atlanta.
According to Harteveldt, once merged, the airlines will evaluate their routes and potentially consolidate flights, meaning fewer frequencies on certain routes depending on demand.
He explained the excess aircraft currently concentrated in the eastern US could then fly elsewhere over time, which is important to JetBlue becoming a stronger competitor in other markets, like Chicago O'Hare and Dallas/Fort Worth.
Moreover, the merger could help JetBlue operate more transcontinental flights, so its superior product, coupled with the coast-to-coast routes, could lure more business travelers, Harteveldt said.
Fares could go up, but Frontier could keep them at bay
Harteveldt told Insider that Frontier may put pressure on JetBlue to keep fares low.
"JetBlue could adapt certain pricing strategies that Spirit has been successful in using and apply those discount strategies to JetBlue flights, he told Insider. "So, it's possible JetBlue could become an even larger discount airline than it already is."
Harteveldt also said other low-cost carriers primarily operating on the East Coast, like newcomer Breeze Airways, could impact fares.
Raite echoed Harteveldt, saying the "JetBlue effect" has been proven to work, which will prompt legacy airlines like Delta and United to keep fares low to counter the strong low-cost competition.
"Spirit Airlines' ultra-low-cost model has been disruptive to competitors in their targeted markets," he said. "However, there is a significant cost difference between JetBlue and Spirit that will be further complicated by JetBlue's recent moves into first-class and international services."
Spirit's loyalty program will likely be scrapped
Spirit's "lackluster" loyalty program will be abandoned in the merger, with Spirit points being converted to TrueBlue points, which are worth more than Spirit's, John Taylor Gamer, CEO, and founder of credit card rewards app Card Curator, said.
He explained this will give Spirit points more value but said it's possible JetBlue will convert the points at a lower value due to Spirit's "lack of super loyal flyers."
Harteveldt said he will be watching JetBlue's handling of Spirit's $9 discount club, which the airline says is a very successful program.
"If the program works well for Spirit, then it may work well for JetBlue, and this is perhaps another way JetBlue could introduce more fare competition as it combines with Spirit," he said.
More: JetBlue Spirit Spirit Airlines jetblue spirit merger
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2022-07-28T17:12:33Z
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What the JetBlue and Spirit Merger Means for Customers
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https://www.businessinsider.com/what-the-jetblue-and-spirit-merger-means-for-customers-2022-7
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https://www.businessinsider.com/what-the-jetblue-and-spirit-merger-means-for-customers-2022-7
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How much a personal finance creator earns and spends in a month from brand deals, UGC, and affiliate marketing
Erin Confortini.
Erin Confortini started a personal finance TikTok account, @moneytomiles, in January 2022.
Since then, she's amassed almost 180,000 followers and developed three income streams.
Here's how much she earned and spent in the month of June.
Erin Confortini's aim was never to become a TikToker.
First, she considered starting a blog to share her experience with personal finance as a Gen Z-er.
"I purchased the domain name 'Money to Miles,'" Confortini told Insider. "But then I realized that it's really hard to scale a blog these days. No one really reads them unless the audience is funneling through social media."
In January 2022, she decided TikTok would be an easier way in to content creation, and she started her account, @moneytomiles, that features personal finance tips and advice for Gen Z.
Within two months, she was making four figures from brand partnerships.
For now, she has no intention of quitting her 9-5 job as an internal auditor, saying that her income streams as a creator are not reliable enough to justify leaving the security of a biweekly paycheck — and there's no guarantee they won't dry up completely.
"I don't think that I'm anywhere close to being able to quit my job," she said. "Even though in the last two months I did make more [from content creation] than my job, which is crazy."
But she eventually would like to stop working in corporate America, she said, and has been building her business — even launching her original blog — to make content creation a viable career option.
Here's a breakdown of her exact earnings and expenses for the month of June. Insider verified her earnings and expenses with documentation.
Type of income June amount
Brand deals $4,499
UGC $1,740
Affiliate commissions $1,548
Confortini tries to only create sponsored content for brands that fit her niche, like banking and investing apps or services. For example, she recently partnered with Viably, a financial management service for small businesses.
Like many other creators, she also earns money from UGC, or user-generated content. This kind of content is created by users for brands and then published on the brand's social-media accounts or as paid ads.
UGC has recently experienced a new boom, fueled by TikTok, and creators like Confortini are turning to it as a way to supplement their income without alienating their audiences with too many sponsored posts.
UGC generally pays less than brand deals — an average of $300 versus $1,500 per post, respectively, for Confortini — but she thinks it's worth it to maintain the trust of her audience.
She also earns commissions from affiliate marketing whenever a user buys a product or service she recommends through a personalized link.
Confortini created this UGC video for financial management app Viably, which the company reused as a Reel on their Instagram page.
Expenses: $453.36
Website designer $193.90
Avada website theme $65.72
Wifi $59.99
Elementor Pro website theme $49
eBook template $42.76
Stan.store subscription $29
Canva Pro subscription $12.99
The month of June was more expensive than most due to costs related to building a website.
Confortini said she spends an average of $400 every month, with expenses dependent on different needs that arise from her content creation business.
In June, she paid for a person to design her website and purchased two different website templates, one from Avada and one from Elementor Pro.
She also bought an eBook template that can be edited on graphic design platform Canva, which she plans to use to supplement her existing free eBook.
Her remaining expenses were for wifi, link-in-bio and storefront tool Stan.store, and Canva. These are recurring monthly expenses.
The investment in a website was an important step for Confortini's business. It will be a blog and an ecommerce store, where she will sell products like her eBook, one-on-one financial coaching, and, eventually, a course.
"I'm thinking long term," she said. "I don't want my audience to be concentrated on my TikTok account, because I don't know about the longevity of social media accounts, you know what I mean?"
More: Creator money Personal Finance TikTok
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2022-07-28T17:58:51Z
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How Much a Personal Finance TikTok Creator Earns and Spends in a Month
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https://www.businessinsider.com/how-much-personal-finance-tiktok-creator-earns-spends-a-month-2022-7
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https://www.businessinsider.com/how-much-personal-finance-tiktok-creator-earns-spends-a-month-2022-7
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How do margin calls work?
How to avoid margin calls
Understanding margin calls and 4 ways to avoid owing money to your brokerage firm
Margin requirements can differ depending on the type of asset you are trading. For example, futures and forex have different rules around margin trading than stocks.
A margin call occurs when the equity in your investing account drops to a certain level and you owe money to your brokerage firm.
Margin calls must be satisfied by depositing cash into the account, or by making up the difference you owe by selling off assets or depositing other assets into the account.
Using margin can increase the potential return but also magnify your losses.
A margin call occurs when the value of your brokerage account falls below a certain level. This level is known as the margin requirement and means that the investor is required to deposit more money into the account, sell off some of the investments, or add more marginable assets if reached.
"The best way to describe a margin call is that you owe your investment platform or brokerage money," says Robert Farrington, founder of The College Investor.
Within the context of investing, margin is the practice of taking a loan from the brokerage firm for the purpose of buying stocks and other assets. Margin can increase the buying power for an investor by allowing them to make larger investments and higher potential profits. "Margin is an incredible tool to provide investors with access to additional capital," says Dr. Hans Boateng, founder of The Investing Tutor. "It works wonders in an upward market. It becomes dangerous in a downward market if you don't have savings in the event of a margin call."
There are different types of margin calls and requirements based on what type of account you have and the type of asset that you may be trading. Regardless of the account type or what you may be investing in, once a margin call has occurred, you'll be required to bring the account back to the minimum through the methods mentioned previously. If the margin call is not met quickly enough (usually between 2 to 5 business days) then your brokerage may sell out of your positions, which could result in a taxable event.
Quick tip: A maintenance margin requirement is the total amount of capital that must remain in an investment account in order to hold an investment or trading position.
There are three main types of margin calls: maintenance margin calls, Regulation T calls, and minimum equity calls. Each of these margin calls can be triggered for different reasons. Here's a breakdown of each below.
Maintenance margin call: A maintenance margin call refers to the margin requirement to stay in a position. Once you have met the initial margin requirement of 50%, the Financial Industry Regulatory Authority (FINRA) requires that brokerages set a maintenance requirement of at least 25% for the remainder of the trade and allow brokerages to be even more restrictive. This is sometimes known as the "house requirement" and most brokerages set their maintenance requirements between 30 to 40%.
Let's use an example where you have $10,000 invested in company ABC: If your brokerage sets the maintenance margin requirement at 25%, it means that the equity in your account must not fall below $2,500.
Remember, a margin account will consist of the equity, which is the amount of cash you have plus the amount that was loaned to you. Therefore, the total account balance would have to be $7,500 to receive a margin call ($5,000 margin loan + $2,500 remaining equity) because the value of the loan has not changed.
Quick tip: Some brokerages may adjust their maintenance margin requirement based on market volatility and other factors.
Here are a few scenarios using a 25% maintenance margin requirement with $5,000 in equity and $5,000 in margin.
If account value drops 10% down to $9,000 = No maintenance margin call
Equity = $4,000
Margin balance = $5,000
If the account value drops 30% down to $7,000 = Maintenance margin call
You must now add at least $500 to the account
You must now add at least $1,500
Quick tip: Initial margin and minimum maintenance margin are different. The initial margin is the required amount to enter the trade, the maintenance margin as the title suggests is the ongoing amount needed to maintain the position.
Regulation T call: This type of call refers to the requirements needed to begin a margin trade and can occur when an investor makes a transaction in a margin account without meeting the initial 50% minimum equity requirement. This is sometimes referred to as a Fed Call.
Minimum equity call: This is the lowest amount needed to open and maintain a margin account. This call — sometimes known as an exchange call — occurs when the account balance falls below $2,000 in equity. If you're classified as a pattern day trader, this requirement is $25,000.
You're not required to have a margin account, and you could easily avoid margin calls by only trading with cash. "The best way to avoid a margin call is to simply not use all your margin limit," says Farrington. Margin is not needed to achieve solid, consistent returns over time, but for those that choose to use it, here are a few things you can do to avoid a margin call:
Keep cash on hand. One of the easiest ways to address a margin call is by adding cash to the account. However, if you do not keep enough cash on hand, this may be difficult.
Stop loss orders. Entering a stop loss order can help limit losses and, depending on the volatility that day, it could prevent the stock from falling far enough to trigger a margin call.
Stay informed. It is a best practice not to check on your investing account on a daily basis; however, this changes with a margin account due to the higher levels of risk. Investors may want to consider adding alerts should the price fall within a certain range.
Use your margin limits wisely. Just because you're given the ability to take out a large margin loan doesn't mean that you have to. If you're using margin, consider using less than the maximum amount — this would give you a larger share of equity and a bigger cushion to avoid a margin call.
Using margin in an investing account can help increase gains, but it can also magnify losses. It's important to make sure you're properly managing your risk. "There are really few reasons to use margin," adds Farrington. "It should only be used by experienced investors who have a specific plan and purpose for doing it. Maybe you're investing today while waiting for that ACH deposit next week. Or maybe you're executing a certain options strategy. But you need to have a specific plan."
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More: Investment Assets margin Margin Call Personal Finance Insider
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2022-07-28T17:59:03Z
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What Is a Margin Call? Definition, How to Avoid Them
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https://www.businessinsider.com/personal-finance/margin-call
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https://www.businessinsider.com/personal-finance/margin-call
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The author is not pictured.
I called a repairman when my washer broke, and he charged $100 just to come out.
To fix the problem, he estimated the cost at $250. But in the hour before he got to my house, I googled.
From a YouTube video, my wife and I were able to solve the problem and save cash.
My wife and I are fortunate to pay below market rate for our rental home in the up-and-coming neighborhood where we live in Seattle. Our landlord seems to prioritize having trustworthy tenants over getting top dollar, so rent increases have been infrequent and reasonable over the more than nine years since we moved in. Our relatively low monthly payments help keep our cost of living affordable in an otherwise pricey area, but there are some trade-offs.
In particular, we're mindful of how often we approach our landlord about issues regarding the property. If we were paying market rate, we'd have no qualms about raising any and all concerns that are the owner's responsibility. But since we appreciate our situation and want to both express our gratitude and stay on his good side, we try to keep small repairs or other problems off his plate.
That's why when our laundry machine broke down one evening in the middle of its cycle, we were inclined to take care of it ourselves rather than bring it to his attention.
We called a handyman to diagnose the problem
Neither of us is very handy, so we knew "taking care of it ourselves" likely meant hiring someone else to fix it, but we made some elementary attempts to get it running. We tried turning it off and back on again, unplugging the machine to reset the electronics, and checking the basin and piping for obstructions; nothing worked. At a loss for what else to do, we started looking for a repair company.
After making a few calls, we found a repairman who was available immediately. It was $100 to get the guy to our door, and based on our description of the problem (which he guessed was a clogged or burnt-out drain pump), he estimated the repair would cost another $250. That was below the threshold where we'd normally get our landlord involved, so we agreed and gave the repairman our address.
Once we got off the phone, I started searching online for information about washing machine repairs to confirm that the estimate we received was fair (which it was). Having settled that, I decided to look into what repairing or replacing a drain pump entailed.
I looked on the back of our washing machine for the model — a Fisher & Paykel GWL11 — and searched the web for repair instructions. I was surprised to find that what seemed like a narrow search yielded a lot of results, including videos, bulletin board discussions, links to replacement parts for sale and more. I dove in.
During the hour between when we called the repairman and when he arrived, I found one video in particular on YouTube that gave a step-by-step tutorial for how to unclog the drain pump on our machine. The symptoms described in the video matched how our unit was failing to cooperate. I was watching a second time through when the repair guy showed up, and beginning to wonder if calling him had been a hasty mistake.
I shared the tutorial with my wife as the repairman lugged his gear up to our laundry room to diagnose the problem. After about 10 minutes, he confirmed it was in fact a clogged drain pump, and that unclogging it would cost a flat $250 fee. He asked if we wanted him to proceed.
My wife and I looked at each other, uncertain. On one hand, the YouTube video gave us hope we could fix the pump ourselves. On the other hand, we had to admit the possibility we'd fail or even make things worse, in which case we'd need to pay another $100 to get the repairman back out to our house on top of the cost of the repair. We decided the risk was worth taking, so we thanked the repairman for coming by, paid him $100 for the visit only, and then got to work.
We felt confident we could fix it ourselves with the help of a YouTube video
We watched the video again and gathered the tools we needed for the job: our mini shop-vac to empty the washing machine's basin; a plastic tub and towels to catch any remaining water that flowed from the disconnected drain pump; a cinder block to prop up the machine so we could get under it; a flashlight; plastic bags; packing tape; and a multi-tool.
Reaching the drain pump in our cramped laundry space required some uncomfortable contortion, so we took turns with one of us pointing the flashlight, controlling the video on the laptop, and providing tools while the other did the dirty work.
It was awkward, it was messy, and I imagine folks who are well-versed in home repair would have gotten a chuckle out of watching us fumble through the process. But in the end, our washing machine was fully operational about 90 minutes after we sent the repairman away, and we were $250 better off. Feeling triumphant, our only regret was that we hadn't found the video sooner and taken a crack at fixing it ourselves from the start in order to save the $100 we paid for the repair visit.
The experience empowered us to do more DIY repairs — and also showed us our limitations
Our experience with the washing machine emboldened us to try our hands at DIY repairs more often, and it wasn't long before another opportunity arose when the heat stopped blowing in our car. Turning to the web once again, I found several automotive message board threads that led me to believe the problem was a dead blower motor resistor — an inexpensive and easily replaceable part.
This time, YouTube provided multiple tutorials (specific to our car make, model, and year) that guided me through what to buy at the local auto supply shop and how to install it. $11 and 30 minutes later, the heat was running smoothly.
Similarly, YouTube has helped us repair a faulty latch on our screen door, install a wall panel in our basement for sewer line access, and even reprogram our modem when a power outage restored the factory settings (rather than shell out $80 for a technician to do it). None of these repairs were expensive or overly complex, so despite lacking essential handyman skills and with little intuition for fixing things, we were able to get them done with proper guidance.
Our new willingness to attempt repairs has also helped us recognize our limitations. For example, when water started mysteriously dripping from a light fixture in our kitchen this spring, we knew right away it was a problem we weren't equipped to solve, and we notified our landlord instead.
If a repair still feels over our heads after reading discussions and watching tutorials, then we feel no compunction over enlisting professional help. But we only learned what we truly can't do by first learning what we can do, and both are empowering in their own ways.
DIY repair videos seem to have become a cottage industry on YouTube, and I'm grateful for the armada of knowledgeable vloggers sharing their skills and insights online. The next time something needs fixing at our house, I know the first place I'm looking for advice.
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More: pfi PFI-XAMP Media Alpha
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2022-07-28T18:42:25Z
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Watching DIY Home-Repair YouTube Videos Saves Me Hundreds
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https://www.businessinsider.com/diy-home-repair-youtube-videos-save-me-hundreds-2022-7
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https://www.businessinsider.com/diy-home-repair-youtube-videos-save-me-hundreds-2022-7
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The Game Stop frenzy put payment for order flow on the hot seat. Here's how FTX US and Public.com plan to make money without it.
Carter Johnson
Sam Bankman-Fried co-founded the crypto exchange FTX in 2019.
Stock brokerages FTX US and Public.com have eschewed payment for order flow.
The brokerages say it's better for customers and the sustainability of the market.
But that forgone revenue means they're looking for new ways to compete.
When FTX US unveiled plans this May for FTX Stocks, the crypto giant's new equity trading service that launched to the general public on Wednesday, the company made a point of affirming one principle in particular: it would not receive revenue in the form of payment for order flow.
Payment for order flow, or PFOF, is the practice of a brokerage selling client orders for a fee to market makers like Citadel Securities, Virtu, and Two Sigma. It's now common across the industry, at newcomers like Robinhood and established players like Charles Schwab. Brokerages have embraced the revenue stream because they claim it allows them to both offer the no-commission trading now expected by retail investors while still achieving best execution for customers.
But PFOF's reign has come under scrutiny amid the meme-stock-fueled trading activity of the last two years. Its detractors — increasingly, the Securities and Exchange Commission among them — claim that PFOF incentives more risky trading and inhibits competition. The SEC has floated a range of changes to the PFOF model, including an open auction process through which market makers and exchanges would compete for orders.
Those criticisms have been echoed by FTX US and Public.com, another online brokerage that announced it would no longer receive payments in exchange for client orders in February 2021.
But the revenues many brokerages now receive from market makers are significant. In 2021 alone, The Wall Street Journal reported citing Bloomberg Intelligence data, PFOF-related revenues at the nation's 12 largest brokerages topped $3.8 billion. Robinhood, as one example, earned more than $200 million in transaction-based revenues in the first quarter of this year.
To be sure, much of Robinhood's transaction revenue comes from customers trading options and crypto, not stocks — and retail trading volumes industry-wide have been buffeted amid this year's market downturn.
But the prevalence of PFOF among stock brokerages raises questions about how companies that have vowed to eschew the practice plan to make money — and whether they intend simply to shift the cost on to the consumer. In an effort to get the answers, Insider sat down with executives from both FTX US and Public.
Both said their firms are still working out the details, imagining new and time-tested ways of monetizing and diversifying their brokerage products. Whatever approach they land on could set the tone for how other discount brokerages might respond should US regulators take action or in some way restrict PFOF, a direct risk to the zero-commission model some depend on.
"I would challenge the premise that PFOF and charging for order execution, in one way or another, is required to run a successful investing platform," Public COO Stephen Sikes told Insider.
Why Public and FTX don't receive PFOF
According to Sikes, the problem with PFOF is primarily one of incentives. In his view, if revenue at retail brokerages is dependent upon the volumes of orders sent to market makers, then those brokerages are likely to encourage more trading and potentially riskier outcomes for customers.
But Public also claims that the pricing it receives on its orders routed directly to exchanges like Nasdaq and IEX (and, in some cases, to alternative trading venues) actually results in better results than those offered by market makers. Last December, Sikes detailed in a blog post the execution quality of Public's orders against peers like Robinhood. According to the findings, Public customers received better execution than those at competitors, even in the absence of PFOF.
At FTX US, meanwhile, the company's move to launch FTX Stocks without PFOF was predicated upon the idea that routing orders directly to marketplaces results in more transparent and more competitive stock trading, President Brett Harrison told Insider.
"I think it's clear that philosophically, there should be order by order competition. If more people are competing openly for the prices, there should be better prices," Harrison said.
A spokesperson for Robinhood declined to comment, citing the company's quiet period ahead of its quarterly earnings release.
Crypto and stocks at FTX US
A brokerage's decision to abandon PFOF revenue doesn't come without costs — or at least, lost revenue opportunities.
According to Harrison, right now FTX US isn't making or losing money on its new stock brokerage, apart from the upfront, fixed costs required to start the business. For now, the company is happy to view its equities businesses as a lead-in to potentially more lucrative crypto trading where the brokerage can make money on trades, he said.
FTX US is also considering ways to monetize the stock brokerage itself in the future, including by charging trading commissions or releasing a subscription product, Harrison said.
Harrison's bet is that in the future, brokerages will have to compete on more than just filling a stock order. "They're going to have to make it worthwhile for that user to actually pay them for this service as opposed to using some other service," he said.
Customers could be willing to pay to trade via FTX US because of its crypto strengths, Harrison said. The "convenience of not having to move your money between two different applications" — and the ability to manage crypto, stocks, crypto and non-crypto derivatives, and even savings products in one place— might entice users to pay a little more, he explained.
Complicating such a move is the fact that Robinhood has been steadily building its own crypto operations as it attempts the reverse of FTX US's strategy: transforming a stock brokerage into a crypto trading platform. The founder and CEO of FTX, Sam Bankman-Fried, now also notably owns roughly 8% of Robinhood.
Revenue diversification at Public
Public, meanwhile, launched a tipping feature users can opt to use when submitting orders. And in June, it announced a subscription service through which customers can access additional stock research and data for $10 a month. The service is complimentary for customers who have more than $20,000 in their accounts. Public, like Robinhood, has also expanded into crypto trading in a bid to lure one-stop-shop investors (Public's crypto partner, Apex Crypto, does mark up crypto trades).
Sikes said the brokerage is more-broadly focused on revenue diversification to blunt the impact of forgoing PFOF profits. It's a contrast, he said, from large brokerage competitors that have become overly-reliant on volatile trading volumes. Instead, Sikes views financial giants like Fidelity and Vanguard — which offer self-directed retail trading as well as a wide range of asset management products and do not receive PFOF revenue on stock trades —as models to emulate.
"The pairing of a brokerage business and asset management business make a ton of sense together," Sikes said. "These concepts have existed for decades. We're not breaking any new ground here at all, but we think about things through a very similar lens and with a full understanding of the history of our industry and the different ways to make money."
To get there, Public is focused on broadening the set of investable products available through its service. This March, for example, Public acquired Otis, a fintech through which customers can trade fractional shares of alternative assets.
To be sure, competing against asset management giants comes with its own set of challenges, according to one industry expert.
"If you want to try the Vanguard model, which is percentage of wealth under management, it's not easy if you're essentially engaged in retail brokerage," Joel Seligman, a professor at Washington University School of Law and president emeritus at the University of Rochester, told Insider.
In Seligman's view, the key determinant of whether the industry can successfully adopt PFOF-free business models will be whether the SEC intervenes to implement rules surrounding the practice — something that's not an immediate likelihood.
"The political realities that the SEC is facing at this point, particularly if there is a flip in one or both houses of Congress in November, are daunting," Seligman said.
More: ftx Public payment for order flow
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2022-07-28T18:42:31Z
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How FTX US and Public Plan to Make Money Without Payment for Order Flow
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https://www.businessinsider.com/how-ftx-us-and-public-plan-to-make-money-without-payment-for-order-flow-2022-7
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https://www.businessinsider.com/how-ftx-us-and-public-plan-to-make-money-without-payment-for-order-flow-2022-7
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Instagram and Facebook users should expect to see more content from users they don't follow by the end of 2023.
Meta held its second-quarter earnings call on Wednesday.
CEO Mark Zuckerberg told investors the amount of content from accounts users don't follow on Instagram and Facebook would more than double next year.
Meta is facing an ongoing backlash for changes to Instagram to compete with TikTok.
Meta CEO Mark Zuckerberg in a call with investors on Wednesday said that the content users see in their Instagram feeds from accounts they do not already follow will double by the end of next year.
"Social content from people you know is going to remain an important part of the experience and some of our most differentiated content, but increasingly we'll also be able to supplement that with other interesting content from across our networks," said Meta CEO Mark Zuckerberg in the second-quarter earnings call, according to a transcript of the meeting.
Zuckerberg said about 15% of content sent to Facebook feeds and "a little more than that" on Instagram feeds came from Meta's recommendation algorithm. By the end of next year, Zuckerberg said the company expected "these numbers to more than double."
A spokesperson for Meta did not immediately return Insider's request for comment Thursday.
Instagram is in the midst of an identity crisis as the platform works to keep up with other growing social-media platforms and apps, namely TikTok. The company in late 2020 launched "Reels," its short vertical video platform that directly mimics the TikTok experience.
As Instagram and Facebook shift to more AI-driven content, many expect they'll more closely resemble TikTok. That platform rose to prominence largely for its "For You Page" mechanism, which delivers users content from other accounts they aren't necessarily following and attempts to serve videos that the algorithm predicts they'll engage with and watch.
"Reels engagement is also growing quickly," Zuckerberg said Wednesday, according to the transcript. He stated that viewership of Reel videos accounts for 20% of the time people now spend on Instagram.
"This quarter we saw a more than 30% increase in the time that people spent engaging with Reels across Facebook and Instagram," Meta's CEO said, noting that much of this increase was attributable to advancements in its artificial intelligence recommendations.
The company's ongoing push to increase video content has angered some users, creators, and celebrities, as Insider previously reported. Creators who run meme accounts staged a small protest on Saturday, calling for Instagram to redesign its practices around moderation.
Celebrities like Kylie Jenner and Kim Kardashian have also publicized frustrations with Instagram, both posting a story on the platform that called on the company to "Make Instagram Instagram Again." The movement demanding that Instagram prioritize photos was started by the photographer Tati Bruening, who has over 321,000 followers on the platform. Bruening over the weekend started an online petition that has reached more than 220,000 signatures in less than a week.
It calls on Meta to scale back its attempts to replicate TikTok and asks Instagram to go back to its "roots" in photos sharing. Users have complained they aren't seeing content — namely photos — from their friends as Instagram beefs up its recommendation algorithm.
Instagram CEO Adam Mosseri in a video on Tuesday said the company would continue to make improvements to the algorithm, which can be paused entirely for up to a month in its current iteration. He said the company was committed to supporting photos, even as it pushes ahead on Reels and video products.
More: Meta Facebook Instagram Digital Culture
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2022-07-28T18:42:37Z
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Instagram Feed Content From Accounts Users Don't Follow to Double
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https://www.businessinsider.com/instagram-feed-content-accounts-dont-follow-to-double-2022-7
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https://www.businessinsider.com/instagram-feed-content-accounts-dont-follow-to-double-2022-7
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Jon Stewart ripped into Republicans for blocking the advancement of a veteran health care bill.
"Sadly, these are the people that fought and defended their right to this fuckery," Stewart said.
Stewart said the Republicans who blocked the bill were "cowards."
Jon Stewart, the former host of "The Daily Show," during a visit to Washington, DC, on Thursday excoriated Senate Republicans for blocking a bill that would expand health care access for veterans exposed to toxic burn pits and Agent Orange, among other contaminants, during their service.
"This is corruption at its finest. And sadly, these are the people that fought and defended their right to this fuckery," Stewart said in comments to reporters on Capitol Hill.
Stewart during a press conference with Democratic lawmakers like Sen. Kirsten Gillibrand of New York said Republicans "don't support the troops" but "support the war machine."
"They haven't met a veteran they won't screw over," Stewart, a longtime advocate for veterans, added.
A version of the bipartisan bill — the Honoring Our Promise to Address Comprehensive Toxics (PACT) Act — passed in the Senate in June (84-14). But revisions made to the bill in the House — where it passed by a 342-88 vote — saw the measure return to the Senate.
Despite passing with strong bipartisan support in the Senate last month, the bill on Wednesday failed to cross the 60-vote threshold necessary for it to advance. Twenty-five Republicans who previously supported the bill voted against it, per the Guardian.
Stewart in a tweet called those Republicans "stab vets in the back Senators."
GOP Sen. Pat Toomey of Pennsylvania, who was among the Republicans to stand in the way of the advancement of the legislation, said the measure was "a budget gimmick that's designed to allow hundreds of billions of dollars in additional unrelated spending, having nothing to do with veterans," per Roll Call.
During Thursday's press conference, Stewart called Toomey a "coward," saying the Pennsylvania Republican's opposition to the measure over the allocation of discretionary funds was "bullshit."
Toomey's office did not immediately respond to a request for comment from Insider.
Democratic Sen. Jon Tester of Montana, chairman of the Senate Veterans' Affairs Committee, in a statement on Wednesday slammed Republicans for stalling the bill.
"This eleventh-hour act of cowardice will actively harm this country's veterans and their families. Republicans chose today to rob generations of toxic-exposed veterans across this country of the health care and benefits they so desperately need — and make no mistake, more veterans will suffer and die as a result," Tester said.
More: Jon Stewart burn pits toxic exposure
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2022-07-28T18:42:43Z
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Jon Stewart Rips Into Republicans for Blocking Veteran Health Care
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https://www.businessinsider.com/jon-stewart-rips-into-republicans-for-blocking-veteran-health-care-2022-7
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https://www.businessinsider.com/jon-stewart-rips-into-republicans-for-blocking-veteran-health-care-2022-7
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Courtesy of Estancia La Jolla Hotel & Spa
Luxury hotels are betting big on the boom in "wellness tourism" trend that boomed during the pandemic.
Wealthy travelers are ditching the party scene for Reiki, beekeeping, and horse painting.
Check out these 7 hotels in the US with unique programs focused on mental and physical wellbeing.
1. Miraval Berkshires Resort & Spa: the mountain-side hotel was ranked as the best wellness retreat in Massachusetts last year with prices ranging from $650 to $1,650 a night.
Courtesy of Miraval Berkshires
The hotel's "Life in Balance" spa offers dozens of services beyond your typical facial, including Abhyanga massages, Reiki, and Thai breath and body therapy.
The indoor-outdoor pool at Miraval Berkshires Resort & Spa, a three-hour drive from Manhattan.
The spa has multiple relaxation rooms, including this "women's lounge" with a fireplace and mountain views.
The "Women's lounge" at Miraval Berkshires Resort & Spa.
There's also a wide array of wellness-focused outdoor activities, including equestrian painting sessions, beekeeping, and rope courses.
No wellness retreat would be complete without yoga. At Miraval Berkshires, guests can take a fitness class or meditation session complete with aerial silks.
2. San Diego Mission Bay Resort: the waterfront hotel's nightly rates range from $250 to $1,300 for the largest suite.
Courtesy of San Diego Mission Bay Resort |
The resort's Spa Brezza offers various meditations, Reiki, sound bowl meditation, and chakra balancing.
Courtesy of San Diego Mission Bay Resort
3. Kona Kai Resort & Spa: also located in San Diego, this resort has a private beach where guests can go paddle boarding. Rooms start around $150 a night.
Courtesy of Kona Kai Resort & Spa in San Diego
The resort takes dog-friendly to a whole new level. Through SpaTerre's "Noble Paws" program, your pup can receive a massage and stretching session from a certified therapist.
Courtesy of Kona Kai Resort & Spa
For human guests, the spa has a couple's suite with a soak tub for two and a couple's shower.
Intimate couple’s suite with a soak tub for two and a couple’s shower
4. L'Auberge Del Mar: the luxury resort located in Del Mar, California is home to a full-service spa "focused on the healing powers of the ocean."
Courtesy of L’Auberge Del Mar
The spa offers full-body exfoliations using marine salt crystals, red algae, a warm marine mud mask, and lemongrass scrubs. Prices range from $210 for a 50-minute treatment to $450 for two and a half hours.
Spa Patio at L’Auberge
Courtesy of L’Auberge
5. Estancia La Jolla Hotel & Spa: spend the night in La Jolla, California or take a weekend day trip for their spa's #SelfCareSundays series.
Outdoor relaxation area at Estancia La Jolla Hotel & Spa
The hotel's Spa Estancia features a full menu of "aromafusion journeys," body and skincare treatments, and a meditation garden.
6. Royal Palms Resort and Spa: this Hyatt resort in Scottsdale, Arizona was originally built as a private wellness retreat. Now, it's open to the public for a standard rate of $679 a night.
Courtesy of Royal Palms Resort and Spa
Inspired by the property's orange groves, the spa offers citrus-inspired treatments including the signature "Citrus Ritual."
Here, the treatment begins with a full body exfoliation with water "gently cascading" from the room's shower heads above.
Inside the spa at Royal Palms Resort and Spa
7. The Rittenhouse Spa & Club: for a luxury wellness retreat in the heart of Philadelphia, head to this spa located inside the iconic Rittenhouse Hotel.
Couple's massage room
Courtesy of The Rittenhouse Spa & Club
Spa services include Reiki, a traditional Japanese healing practice; Thai massage, combining elements of yoga and ayurveda; and a massage that uses warm bamboo sticks to work deep into the muscle tissue.
The relaxation room at The Rittenhouse Spa & Club,
Do you work at a luxury resort or wellness retreat? Contact this reporter from a non-work email address at htowey@insider.com
More: Features Business Visual Features Hotels Luxury resorts
wellness industry
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2022-07-28T18:42:49Z
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See Photos of 7 Luxury Hotels in the US With Unique Wellness Programs
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https://www.businessinsider.com/luxury-hotels-in-us-unique-wellness-options-retreats-spas-photos-2022-7
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https://www.businessinsider.com/luxury-hotels-in-us-unique-wellness-options-retreats-spas-photos-2022-7
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Despite a market downturn, Merck's finance chief says there's 'no significant shift' in biotech M&A expectations
Merck CFO Caroline Litchfield
Despite a downturn, biotechs have yet to reset M&A expectations, Merck's finance chief said.
The pharma giant "can do M&A of all sizes" with its balance sheet, CFO Caroline Litchfield said.
Merck is reportedly in talks to buy the biotech Seagen for about $40 billion.
Despite a prolonged downturn in the biotech market, Merck's finance chief told Insider there still hasn't been a major reset in seller expectations, where biotechs readjust what valuation may be acceptable for a buyout.
For months, industry analysts and investors have hoped to see Big Pharma go on an M&A shopping spree. Many large drugmakers have strong balance sheets, with one analyst projecting Big Pharma will have over $500 billion in cash by year's end to spend on deals.
Meanwhile, a leading biotech stock index that tracks the industry has fallen 29% in 2022 and is down 50% since peaking in February 2021 — resulting in companies becoming much cheaper to buy. But despite the downturn, 2022 has brought only a handful of big acquisitions, wth five M&A deals paying more than $1 billion and only one deal — Pfizer buying Biohaven Pharmaceutical —worth more than $10 billion, according to BioPharma Dive's acquisition tracker.
Merck Chief Financial Officer Caroline Litchfield told Insider she hasn't seen a dramatic change in the expectations of potential sellers. Companies are still hoping to be acquired for much more than they're currently worth given the market downturn.
"What we are watching for, especially in those smaller companies, is what the cash situation is for those companies and there we see that there is likely to be more incentive to look at selling and selling at a pricepoint that will be appropriate for both companies," Litchfield said to Insider.
Merck can 'do M&A of all sizes,' CFO says
Merck could eventually make a big splash in deal-making. Litchfield said the company's balance sheet, which includes $8.6 billion in cash and equivalents at the end of March, allows the New Jersey pharma to "do M&A of all sizes."
Earlier this month, the Wall Street Journal reported Merck is in "advanced talks" to buy the cancer biotech Seagen. The deal could be worth $40 billion or more, the Journal reported. Deal talks remain on track, adding in a July 15 report that the two sides may be waiting for upcoming study results and the outcome of litigation over royalties. Litchfield declined to comment on the report of the discussions.
If a deal is announced, the chances it ultimately passes through potential antitrust challenges is just over 50%, Lawrence Frankel, a former lawyer in the Justice Department's antitrust division, told Needham analyst Ami Fadia on July 27.
The Federal Trade Commission and Justice Department have ramped up their scrutiny of the drug industry, recently hosting a workshop on antitrust enforcement, for instance.
FTC approval would be "the biggest hurdle to getting a deal done," Fadia concluded in a July 27 research note. Today's regulatory environment make massive deals "unlikely but not impossible" to come together in the next six to 12 months, former Pfizer CFO Frank D'Amelio recently told Insider.
Litchfield said the FTC and regulatory environment hasn't changed Merck's deal-making strategy.
"We will continue to explore business development in this environment in the same way as we did in the environment last year, the year before, and the year before that," she said.
More: Healthcare Merck m&a
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2022-07-28T18:42:55Z
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Merck CFO: 'No Significant Shift' on Biotech M&a Valuations
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https://www.businessinsider.com/merck-cfo-no-significant-shift-on-biotech-ma-valuations-2022-7
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https://www.businessinsider.com/merck-cfo-no-significant-shift-on-biotech-ma-valuations-2022-7
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I got into Amazon as a software engineer by sheer luck and immediately knew my technical skills were lacking. Here's how I closed that gap and became a tech lead.
Curtis Einsmann
Curtis Einsmann was hired full-time at Amazon in 2015 after his an internship ended.
After his internship, Curtis Einsmann was offered a full-time role as a software development engineer 1 at Amazon.
He realized he was out of his league, but he was promoted to a senior level engineer two and a half years later.
Einsmann explains the strategies he used to level up, like volunteering to take on mundane tasks and prioritizing promotional work.
This month would've marked my 7th year at Amazon. I left last year. Looking back, I'm quite proud of my accomplishments.
I authored and shipped over 550 Pull Requests. I designed, developed and deployed large scale software systems used by thousands of customers. I taught hundreds as an internal course instructor. I was recognized as one of the key technical leaders of my team.
It wasn't always this way, though. In 2015, Amazon hired me as a Software Development Engineer 1 (SDE1). I shouldn't have been hired — I was an impostor.
Despite my technical limitations, I eventually earned a promotion to Software Development Engineer 2.
My journey from SDE1 to SDE2 is similar to many, but rarely told. It's one of my favorite stories from my early career. I share it to help other impostors achieve success, whether in big tech or elsewhere.
I sneaked into Amazon
I admire every software engineer who's passed an interview loop at Amazon. In a full-day, 5 different interviewers grill you on technical and behavioral questions. Passing requires several hundred hours of preparation.
You have to tenaciously study complex data structures and algorithms. You have to practice coding problems for months on end. It takes patience, determination and grit on par with an author trying to launch a book.
My path had no such difficulties.
Back in 2014, Amazon performed on-campus interviews for summer internships. I had classmates who interviewed before me. They told frightening stories of their difficult technical questions. Recursion, traversals, dynamic programming — yikes.
I had 4 exams that week. I was barely sleeping and only had a few hours to study for the Amazon interview.
Back then, intern candidates didn't go through full-day loops. There were only two interviews. My technical questions were unusually simple. One on bit manipulation, one utilizing a Linked List, and one asking to explain a HashMap.
That's it. I got lucky.
If they perform well, Amazon interns earn a full-time offer as an entry level SDE1 upon graduation. They don't have to re-interview.
I spent the internship in Seattle and worked hard, developing a greenfield Ruby on Rails website.
I ended up earning the offer — and started as an SDE1 in Virginia in 2015.
I started with a limited skillset
Amazon expects SDE1s to know advanced data structures like heaps, graphs and tries. They're also expected to understand the time and space complexities of sorting, searching, inserting and partitioning algorithms.
I didn't know any of this.
My educational background was in computer engineering, not computer science. The focus was the integration of software and hardware — not large-scale software development. The curriculum pushed me to solve challenging problems in ambiguous spaces. However, it didn't cover those topics of advanced data structures and algorithms in detail.
I knew I was ill-equipped. I had major "impostor syndrome" when I started.
My code reviews were a disaster
I'd submit a code review (a.k.a, Pull Request), and receive over 50 comments on it. I'd correct it, and post another revision, only to receive another 30 comments. Over, and over, and over again.
Sometimes my code was so bad, my peers couldn't explain it to me in a way that I could understand. They had to download my code and rewrite it.
While their actions were friendly and helpful, my face felt hot with shame and embarrassment. I was living in constant paranoia that somebody would figure out that I didn't belong. I thought I'd be fired on any given workday.
I improved, slowly. I was eventually hitting deadlines and consistently delivering to production. About 9 months in, my confidence grew.
I wanted to kick my "impostor syndrome" to the curb.
LeetCode is a platform with hundreds of coding questions, designed to help developers prepare for technical interviews. I logged in, wanting to prove to myself that I belonged. I remember thinking, "I'm a legitimate Amazon software engineer now. I have commits running in production. I can handle these simple problems."
I picked a problem that LeetCode marked as Easy. I couldn't solve it. I picked another one. I still couldn't solve it. Over, and over, and over again.
That's when I realized, there was no "syndrome" about it. I was an impostor.
Yet, two and a half years in, I earned an SDE2 promotion. An SDE2 is capable of independently developing and maintaining a large scale software system with little guidance.
At Amazon, there are no tricks. No gimmicks. No ways to game the system. "Fake it till you make it" is common, horrible advice. It doesn't work. The only way to get promoted to SDE2 is to be an SDE2.
The promotion process is strenuous. You have to sell yourself and your work to your manager and peers with over 20 pages of documentation. You have to persistently collect metrics and evidence. Promotions don't happen until you have a consistent track record of performing at the next level for six months to a year.
Here are the skills that helped me level up
First, I put my ego away. I recognized that my peers are intelligent individuals, with unique backgrounds and industry experiences.
I listened empathically with a radically open mind. A peer's feedback is either correct, debatable, or incorrect. When correct, I implemented the feedback without reservations. When debatable, I sought first to understand their viewpoint, then make mine understood.
Here's the kicker: I listened, even if the feedback was incorrect.
The thought process: "How do I know I'm right? What caused this person to say this? How can I clarify my work to prevent this feedback?"
Even when they're wrong, intelligent people say things for a reason. I sought to find that reason and use it as leverage to improve my own work.
1. I asked stupid questions
I didn't care if people judged me — I was an impostor, after all. Out of the thousands of tech terms out there, I knew I wasn't expected to know every one of them.
Examples of questions:
"I don't understand what those words mean. Can you explain them, or point me to a resource which does?"
"What search tool could I have utilized to independently figure out how to solve this problem?"
"I didn't understand what was being discussed in that meeting. Can I schedule a follow up meeting with you to get clarification?"
Pretty soon I could confidently fish for information, and participate in discussions.
2. I sought the relentless reviewer
Early on, it's important to get a variety of peers to review your code and designs. Every reviewer has their own preferences, nitpicks, and pet peeves. Even more important is to seek the relentless reviewer.
There's always that one reviewer on every team. Nobody's work is ever good enough. They nitpick every variable name, every log message, every API parameter chosen.
I made it a point to find that person, and get that person to review my work as much as possible. I knew that the more constructive feedback I received, the faster I'd learn.
3. I leveraged existing examples
Before starting a coding task, I searched for existing solutions using the internal tools. I read a few different examples and understood their code structure. Then, I'd look at my own team's code, and decide how to best introduce my changes.
I followed a similar process for design documents and post-mortem reports. Examples first, do second.
4. I focused on doing the right thing, with intent
For every 100 lines of code that I submitted for code review, there were 250 crappy lines I'd written and discarded. I made sure there was purpose, intent and clarity behind every one of those 100 lines.
Over time, I started shipping code reviews in one or two revisions.
5. I threw myself into the fire
You will never be "ready" to work on big features, execute production deployments, perform interviews, or go on call. The best way to be ready to do them is to do them.
As early as possible, I told my manager that I was ready. Even if I hadn't done the recommended shadows. I needed help at times, or needed my peers to reverse shadow me. But ultimately this expanded my comfort zone and accelerated my growth.
6. I took initiative on the mundane
I noticed opportunities to improve my team's operational excellence, processes, and developer experience. I repeatedly volunteered to take on mundane tasks. I automated manual procedures. I improved documentation in runbooks. I mentored interns. I improved my team's CI/CD pipeline. I refactored legacy code.
7. I became a coding professional
Coding is a form of logic-based creativity. Every task, every new feature was a blank canvas opportunity for me to demonstrate the mastery of my craft and produce art. The SDE2 is a software craftsperson — "a professional," from Steven Pressfield's War of Art. I focused on writing clean code and producing elegant, beautiful solutions.
8. I was transparent about my promotional desires
A FAANG company is not going to give you a promotion. You need to ask for it — repeatedly. If you don't, the promotion will delay for months on end.
In one-on-one meetings with my manager, I was transparent about my promotional desires. I asked for feedback to determine where the gaps in my skills were. I objectively reflected on my past performance and accepted criticism when it came my way. I brainstormed opportunities to improve my skills and cover gaps.
After demonstrating my skills, I made sure to get written feedback. You never know when a reorganization could result in a manager change.
9. I prioritized promotional work
I didn't want to get caught up in the day-to-day minutiae, where I'd end up forgetting to grow my career. Instead, I started each day with a high impact task that would inch me towards a promotion. Whether that's signing up to interview, performing code reviews, or adding to my brag document.
10. I persistently documented promotional evidence
It's critical to learn how to sell your work through quantitative and qualitative metrics. Before starting a task, I searched for metrics that would show the current state of the system. After working the task, I referred back to those metrics and performed a calculation to measure impact.
Then, I documented everything about the task in my promotion documents. I included a STAR write-up, quantitative metrics, and links to code reviews, graphs, or other work artifacts.
11. I understood what was under my control
I realized that sometimes, there are no big features to work on. Sometimes, projects get canceled. Reorganizations force manager changes. Sometimes, the team has a perfect CI/CD process, and there's just nothing to improve. I understood that if I focused on doing my best, professional work I would be prepared for opportunities when they came.
And when they came, I executed. Over, and over, and over again. I've since grown my career through Amazon, and as an independent freelancer. I've had some time to reflect over the years.
I felt like an impostor because of my inability to solve LeetCode-style coding questions. But I achieved success at Amazon, even though I couldn't do them.
The "LeetCode culture" style of interviewing is popular across the big tech industry. Its existence is a particularly nuanced topic of debate in recent years. Many people want to eradicate it, for reasons of gatekeeping, and incongruence to a developer's day-to-day. As of this writing, many companies have moved away from it. Others remain, Amazon included. (When I started interviewing candidates, I had to get good at LeetCode to properly assess them.)
But alas, this isn't a piece to debate interview processes. Rather, it's a piece to describe my feelings as an impostor, and how I overcame them. Many junior engineers in our industry experience similar feelings. For people like me, it's the LeetCode questions. For others, it's their inexperience with Git. Or a fear of speaking up in meetings. Or staring at a code review, not knowing what to look for, or how to comment.
Over time, the impostor feelings melted away
I stopped believing that Amazon hired me by mistake. Even thinking back to the internship itself — that's no walk in the park. You're treated like a full time SDE1. Every aspect of your work gets put under a microscope for evaluation. I know many engineers who have gone through the internship and failed to earn a full time offer.
And as a full-time employee, there's no doubt that I had a tangible impact at Amazon.
I contributed to AWS security, education, and sales software. I served both external and internal customers at a massive scale. I earned "Exceeds" ratings. I took the role of tech lead in several projects. And I've coached many engineers within the company to reach their SDE2 goals.
My leadership and soft skills have been refined over my lifetime. They translate well into Amazon's Leadership Principles.
Through my writing, I now hope to give back to the developer community at a larger scale. Because I know what it's like to be an impostor.
Disclaimer: I'm not representing Amazon in any way. Opinions written here are strictly my own.
Curtis Einsmann is a freelance software engineer, course creator and author.
More: Amazon Software engineer Imposter Syndrome Coding
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2022-07-28T20:13:51Z
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How I Became a Tech Lead at Amazon Despite Lacking Technical Skills
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https://www.businessinsider.com/amazon-tech-lead-despite-lacking-technical-skills-curtis-einsmann-2022-7
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https://www.businessinsider.com/amazon-tech-lead-despite-lacking-technical-skills-curtis-einsmann-2022-7
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How a documentary about a crypto gaming startup influenced the founder of Care.com to start a new venture: a Web3 learning platform called Proof of Learn
Sheila Marcelo, founder, Proof of Learn
Sheila Marcelo
After selling Care.com, Sheila Marcelo got curious about crypto.
She then started Proof of Learn, a company that teaches and credentials aspiring Web3 developers.
Marcelo said the shift from a caregiving marketplace to NFTs was natural because of her curiosity.
Some entrepreneurs succeed and step back from the limelight, but others continue learning and get excited about new technologies.
That's the case with Sheila Lirio Marcelo, who already saw success as the founder and CEO of Care.com, which became a leader in the caregiving marketplace and became a multimillion dollar company.
Now, Marcelo runs Proof of Learn, a company that credentials Web3 developers with an NFT certifying their expertise. Through a learn-to-earn model, Web3 developers can earn cryptocurrencies when they pass tests to validate their credentials.
Marcelo told Insider the shift from operating Care.com to being a Web3 startup founder isn't as wild as one might think.
"I'm just naturally curious. I'm a learner," she said.
Care.com, which went public in 2014, made Marcelo one of only 22 women to found companies that launched an IPO. In 2020, IAC bought Care.com for $500 million, giving Marcelo the opportunity to join venture capital firm New Enterprise Associates, which invested in Care.com, as a partner focusing on Southeast Asia.
Marcelo, and her husband Ron, also began investing in crypto around this time, influenced by her work at NEA. But it wasn't until Marcelo came across Yield Guild Games (YGG), a Philippines gaming company that uses the play-to-earn model to allow users to win rewards like crypto to use as in-game currency for games like Axie Infinity, that she saw the possibilities of starting her own Web3 company. Marcelo, who grew up in the Philippines, was immediately curious.
While doing due diligence on YGG, Marcelo came across a documentary about people in rural areas of the Philippines playing on the company's platform. In the documentary, Marcelo saw a grandmother using YGG and understood how to transact crypto better than Marcelo did.
The idea of a new technology like crypto changing the lives of people in the country she grew up in really resonated with Marcelo, who says her work revolves around advancing social impact for people. After that, she went about figuring out how to work within crypto and decided to leverage what she knew best: starting a company.
And so, the idea for Proof of Learn was born. Users can access modules to learn how to code on different protocols beginning with Solana and then other blockchains and Web3 programs. Once they pass the assessment, they can get an NFT that certifies their expertise in the field. The company released its NFT in late June and will first roll out in the Philippines and India.
Proof of Learn also launched Metacrafters, a project Marcelo said is a web developer curriculum baked into a multiplayer game. The company secured a $4.5 million grant from Solana, Flow, Avalanche, and Polygon Foundations. The grant will be used to fund cryptocurrency rewards for students. Students can earn the Proof of Learn NFT and a Treasure NFT which they can use in the game or sell in a marketplace.
Marcelo hopes this new foray into NFTs and crypto benefits people in other countries. With Proof of Learn, she said its curriculum can help engineers and web developers in emerging countries like the Philippines and India demand high wages for their specialized skill sets.
"I'm a proud Filipina, so I wanted to figure out how to help developers in developing countries, who are often paid at a fraction of what developers are paid [in the US] but are very talented," Marcelo said. "How do we train them up to be ready for the digital transformation that we're going into?"
More: Start-Up NFT Web3
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2022-07-28T20:14:09Z
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Care.com Founder Sheila Marcelo Pivots to NFTs for New Crypto Venture
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https://www.businessinsider.com/carecom-founder-sheila-marcelo-pivots-nfts-new-crypto-startup-2022-7
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https://www.businessinsider.com/carecom-founder-sheila-marcelo-pivots-nfts-new-crypto-startup-2022-7
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Travis Clark and Connor Perrett
Instagram will phase out its full-screen test in the coming weeks.
It has been focusing more on video in an apparent effort to compete with TikTok.
The changes were met with harsh criticism from many, including influencers and the Kardashians.
Amid growing criticism, Instagram said on Thursday that it was walking back some of its recently announced changes, including a full-screen version of the app.
"I'm glad we took a risk — if we're not failing every once in a while, we're not thinking big enough or bold enough," Instagram boss Adam Mosseri told Casey Newton's Platformer on Thursday. "But we definitely need to take a big step back and regroup. [When] we've learned a lot, then we come back with some sort of new idea or iteration. So we're going to work through that."
Instagram had been testing full-screen videos and photos, similar to competitor TikTok, which will soon be phased out, according to Platformer.
Instagram has been focusing more on video recently in an apparent effort to compete with TikTok, but it has resulted in growing criticism, including from influencer and model Kylie Jenner, who has over 300 million followers on Instagram.
She shared a petition on her story this week that called to "Make Instagram Instagram Again."
Some of the changes that have irked celebrities, influencers, and other Instagram users will eventually be implemented, however. Mosseri told Platformer that the company was temporarily scaling back the use of its recommendation algorithm, which places content in users' feeds from accounts they don't already follow.
"When you discover something in your feed that you didn't follow before, there should be a high bar — it should just be great," Mosseri told Platformer. "You should be delighted to see it. And I don't think that's happening enough right now. So I think we need to take a step back, in terms of the percentage of feed that are recommendations, get better at ranking and recommendations, and then — if and when we do — we can start to grow again."
But Meta CEO Mark Zuckerberg on Wednesday told investors in the company's second-quarter earnings call that the company planned to more than double the amount of recommended content in Facebook and Instagram feeds by the end of next year. Currently, a little more than 15% of content in Instagram users' feeds is recommended content, Zuckerberg said on the call.
The company is also poised to continue the expansion of Reels, its TikTok competitor introduced at the end of 2020. In the Wednesday earnings call, Zuckerberg said that viewing Reels accounted for about 20% of the time people spend on Instagram.
Mosseri in the interview published Thursday said that Reels were likely the future of Instagram's feed. He claimed that "personal sharing" of photos was happening more in stories and in direct messages than in the feed.
"Feed could be, and to some degree is, a place to discover things to talk about with your friends. With Reels, we're seeing this happen a lot," he said. "Reels are inspiring a lot of conversations — people just send funny videos to their friends that they've discovered in feed."
Read the full interview with Mosseri over at Platformer.
More: Instagram Meta Facebook Digital Culture
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2022-07-28T20:14:39Z
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Instagram Kills Full-Screen Feed After Kardashians Backlash
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https://www.businessinsider.com/instagram-walks-back-full-screen-feed-changes-kardashians-influencer-backlash-2022-7
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https://www.businessinsider.com/instagram-walks-back-full-screen-feed-changes-kardashians-influencer-backlash-2022-7
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Obama applauds Democrats' major victories on deals to ease inflation on everything from cars to healthcare
The plan has provisions for increased healthcare access, as well as climate and energy programs.
Former President Barack Obama offered a strong show of support for the deal on Twitter this week.
Former President Barack Obama gave a strong show of support for the direction Democrats are heading in this week.
"I'm grateful to President Biden and those in Congress – Democrat or Republican – who are working to deliver for the American people," he said on Twitter on Thursday. "Progress doesn't always happen all at once, but it does happen – and this is what it looks like."
Obama referenced two big developments: passage in the Senate of the bipartisan CHIPS bill intended to boost the US semiconductor industry, and the unexpected revival of Biden's Build Back Better agenda. The previous version of the latter was dead in the water earlier this year, as it was unable to get the threshold-clearing support of Democratic Senator Joe Manchin.
Manchin struck a surprise deal to advance a leaner version of Biden's economic agenda on Wednesday, an agreement that includes an extension of Obamacare subsidies, Medicare prescription drug negotiations, climate programs, and some tax reforms.
The compromise seemed to take other Democratic senators by surprise this week, but the reaction was positive — and the sentiment extended to the 44th president.
"This has been a big week for the Biden Administration and Democrats in Congress," Obama said. "First, Congress is on track to pass a bipartisan bill that will lower the cost of everything from cars to consumer goods, and make us less dependent on foreign semiconductors."
In a thread, he also threw his support behind Democrats' announcement this week of a plan to lower prescription drug costs amid high inflation.
Inflation seems to be on Democrats' minds as they unveil their agenda this week, and as they hurtle toward a daunting midterm season.
"Rather than risking more inflation with trillions in new spending, this bill will cut the inflation taxes Americans are paying, lower the cost of health insurance and prescription drugs, and ensure our country invests in the energy security and climate change solutions we need to remain a global superpower through innovation rather than elimination," Manchin said about the new Build Back Better.
Some critics such as Senator Bernie Sanders, however, noted that the Medicare prescription drug plan doesn't cover all drugs, and doesn't substantially take effect until 2026. The new Build Back Better also jettisoned many keystone parts of the more ambitious original plan: affordable childcare, universal pre-K, and the return of a monthly check program for parents.
But Manchin and Senate Majority Leader Chuck Schumer agreed to extend financial assistance for people to buy health insurance through the Affordable Care Act for three years, include $370 billion for climate and energy programs, and allocate $300 billion to reduce the federal deficit.
Senate Minority Leader Mitch McConnell criticized the deal on Twitter. He had previously threatened to stall the recently passed semiconductor legislation if a version of Build Back Better eventually went through.
More: Policy Biden Obama Build Back Better
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2022-07-28T20:14:51Z
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Obama Praises Democrats' Build Back Better Revival, Inflation Strategy
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https://www.businessinsider.com/obama-democrats-build-back-better-inflation-schumer-manchin-biden-mcconnell-2022-7
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https://www.businessinsider.com/obama-democrats-build-back-better-inflation-schumer-manchin-biden-mcconnell-2022-7
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Understanding how Treasury Bonds work
What are the different types of Treasury Bonds?
Pros and Cons of Treasury Bonds
Treasury bonds are securities that offer stability for your investment portfolio
Treasury bonds earn interest until maturity, providing steady income.
A Treasury bond is a type of debt security that's distributed and backed by the US government.
Investors can buy several types of Treasury securities depending on their investment horizon.
Some Treasuries earn interest incrementally while others pay out at maturity.
A Treasury bond is a government-backed debt security that's issued by the US Treasury. Several types of securities — including bills, notes, bonds, and more — fall into this category. Depending on the type of bond you buy, maturities range from four weeks to 30 years, and interest might be paid regularly or at maturity.
"Treasury bonds are all fairly secure, but they don't yield high results," says Jim Pendergast, senior vice president of altLINE, a division of The Southern Bank Co. "The key is to find a Treasury bond that keeps your money safe while simultaneously keeping you current with inflation."
Before buying a Treasury bond, it's important to understand the different types, how they work, and some of their pros and cons.
When you buy a Treasury security, you're essentially lending money to the government, which promises to repay you at a certain date.
The wide range of maturities available allows you to choose the type of security that aligns with your investing goals. Once you purchase a Treasury security, you'll need to hold it for at least 45 days but can redeem it anytime after that. Of course, investors receive the maximum return by waiting until the maturity date. Investors earn interest while they hold the security, either periodically (such as every six months) or upon redemption.
The interest you earn on Treasuries is subject to federal income taxes. Increases in principal value may be taxed, too. But you won't pay state or local income taxes.
Some investors stash their emergency funds in Treasury securities because they're safe and liquid. However, you may pay a penalty if you redeem before maturity. Plus, "you might get the same or a similar interest rate from a high-yield savings account that you can access at any time," says John Mendes, a CPWA with Rise Wealth Strategies. Therefore, a savings account might be the way to go if you prioritize liquidity without extra steps involved.
While you might hear the term Treasury bond applied to any government security, there are actually several types. The main differences are when the securities mature and how interest is paid.
"Many argue that keeping up with inflation is the best strategy when choosing your treasury bonds," Pendergast says. "However, occasionally your investment won't correctly reflect inflation. Inflation rates are based on the CPI's findings, which means that they measure averages."
Here are the different types of Treasury bonds:
Treasury bills mature within four, eight, 13, 26, or 52 weeks. They're sold at a discount, which means you can buy one for a price below its face value. But you receive the full face value (plus interest) at maturity. These are "notorious for having extremely low returns," says Pendergast.
Treasury notes mature within two to 10 years and pay interest every six months. They're sold at a discount, coupon, or premium, which means the price can be less than, equal to, or greater than the note's face value.
Treasury bonds are also sold at discount, coupon, or premium and mature in 20 years or 30 years. Bondholders receive interest every six months.
Treasury Inflation-Protected Securities (TIPS) mature within five, 10, or 30 years and pay interest every six months. TIPS can help protect your investment against inflation because the principal increases with inflation. (Though it also decreases with deflation.) At maturity, you receive either the adjusted principal or original principal, whichever is greater.
Floating-rate notes (FRNs) mature in two years and pay interest quarterly. The interest payments increase or decrease based on discount rates for 13-week Treasury bills. These are sold at discount, coupon, or premium. "Most FRNs come with the risk of falling," Pendergast says. "Sometimes interest rates plummet, making them an unstable choice for investment(s)."
Separate Trading of Registered Interest and Principal of Securities (STRIPS) are available only through private financial institutions.
Here's how STRIPS work:
The firm starts by taking an eligible Treasury note, bond, or TIPS, and separating the coupons (interest payments) from the principal.
It then sells the pieces to investors at steep discount prices.
Investors can then redeem the security for full face value at maturity.
Quick tip: TIPS and FRN interest rates are variable and can increase as interest rates rise. "If you think that rates will go up from where we are, these are two ways to protect your income stream against rising interest rates," Mendes says. "This is for someone who needs an income stream that has the potential to rise over the years."
Treasury type
Minimum denomination
Sold at
4, 8, 13, 26, and 52 weeks
Interest and principal paid at maturity
Discount, coupon, or premium
2, 3, 5, 7, and 10 years
20 and 30 years
Interest paid every six months, principal at 20 or 30 years
Treasury Inflation-Protected Securities (TIPS)
5, 10, and 30 years
Interest paid every six months, principal paid at maturity
Floating rate notes (FRNs)
Interest paid quarterly, principal at maturity
Separate Trading of Registered Interest and Principal of Securities (STRIPS)
Treasury bonds come with some benefits and drawbacks, so consider these points before investing:
Credit quality: Treasury securities are backed by the US government, so they're generally considered to be the highest credit quality.
Tax advantages: The interest you earn is subject to federal income taxes but not state or local income taxes. However, you may have to pay taxes on principal gains.
Liquidity: Investors can buy and sell Treasury securities both at regularly scheduled auctions and in the secondary market. The exact price depends on their coupon rate, compared with prevailing interest rates.
Choice: Depending on their needs, investors can buy Treasury securities in various structures with maturities that range from four weeks to 30 years.
Lower yield: You'll typically earn less interest on Treasuries compared with other, riskier securities.
Tax considerations: If you buy a bond at discount and either hold it until maturity or sell it at a profit, that principal gain will be subject to federal and state taxes.
Interest rate risks: As are all bonds, Treasury bonds are subject to price volatility as a result of changes in market interest rates.
Inflation risk: The interest earned on Treasury securities may not keep pace with inflation (with the exception of Treasury inflation-protected securities, or TIPS).
Credit or default risk: All bonds also have a risk of default, so Treasury holders should monitor their investments for signs of increasing default risk.
The major drawback to Treasury securities is their low yield.
"Interest rate risk is real," says Alexander Campbell, a registered investment adviser and accredited investment fiduciary with A.G. Campbell Advisory LLC. But it's wise to remember that "fixed income is an important asset class in managing our investment portfolios," Campbell says. "It is often the fixed-income component that keeps us able to invest our other monies for the long term in stocks."
Quick tip: Using a bond ladder could "provide slightly better yield than short rates and not take all the risk of being invested in long bonds," Campbell says.
Treasury securities are available either through the US Treasury or from a private financial-services firm.
Buy from the US Treasury
You can buy newly issued Treasury securities straight from the source at TreasuryDirect.gov. After setting up an account, you'll place a bid at one of the regularly held auctions. T-bill auctions are held weekly, T-note auctions are held monthly, and T-bond auctions are held four times a year (on the first Wednesday of February, May, August, and November). The minimum buy-in amount is $100 for each type of security.
Non-competitive bidding: When you make a bid, you agree to accept whatever interest rate is decided at the auction. In exchange, you're guaranteed to have your bid accepted and you'll be paid face value upon maturity.
Competitive bidding: You can also specify the interest rate you want to receive for the Treasury, but your bid will only be accepted if it is less than or equal to the rate set by the auction.
Buy through a bank or broker
You can also buy Treasury securities through a financial institution, such as a bank or brokerage. Each institution sets its own minimum buy-in, so you might need to invest more than you would at TreasuryDirect. You have two main options when purchasing a security through a private firm:
The firm buys on the government site. The financial institution will monitor the TreasuryDirect auctions and place a bid for you on a newly issued security. This process is simple, but you may pay a fee for the convenience.
The firm buys on the secondary market. The financial services company will purchase an existing Treasury security for you on the secondary market. You might also have the option of buying a Treasury bond mutual fund or exchange-traded fund (ETF) through the brokerage. But with all of these options, commission fees may apply.
Treasury securities are super-low-risk investments that come with varying maturity timelines and interest payments. They're also liquid because investors can sell them at any time for cash as long as the markets are open. But because these investments typically earn less compared to stocks and some other assets, investors should consider diversifying to limit risk and grow money at the same time.
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2022-07-28T20:15:11Z
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What Are Treasury Bonds? Definition, Types, How to Invest
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https://www.businessinsider.com/personal-finance/treasury-bonds
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Starbucks announced in July it is closing 16 stores across the US because a high rate of "challenging incidents" makes them unsafe.
Insider spoke to six workers at four of the closing stores to hear how safe workers really felt on the job.
Workers were divided, with some recounting difficult situations and others saying they weren't concerned for personal safety.
Starbucks announced in early July plans to permanently close 16 locations across Los Angeles, Seattle, Portland, Oregon, and other cities by the end of the month because of a "high volume of challenging incidents that make it unsafe to continue to operate."
Workers, however, seem to be split on whether safety was a huge concern at the stores. Insider spoke to six workers at four of the 16 closing stores about their experiences. While some said that they've witnessed overdoses and seen evidence of drug use in stores, others said the disturbances were never more serious than a stolen tip jar.
Workers describe 'trauma' on the job
A Philadelphia Starbucks employee described an unsafe and difficult workplace. The worker — who asked to remain anonymous due to not being authorized to speak publicly — has worked at multiple locations, including the store on 10th and Chestnut that is slated to close. He called that location "the worst one to work in," in the city.
He said he cleaned up needles and blood regularly, and at times the store had to assign one worker to act as a bouncer and ask disruptive patrons to leave over fears that fights could break out.
At the East Olive Starbucks in Seattle, a worker who asked to remain anonymous due to not being authorized to speak publicly and left the store about a year ago told Insider that he saw people overdose in the bathroom and be revived with Narcan. Though this only happened twice in his five-year tenure, both pre-pandemic, it was "traumatic," he said.
"While I was there we had no training in how to handle patrons, paying or otherwise, who were having any sort of mental health or drug crisis," putting workers in dangerous situations.
Starbucks has since said it will implement more training for workers, including conflict de-escalation and active shooter drills, Fortune reported.
Some workers say safety concerns are overblown
Other Starbucks workers acknowledged minor disturbances but said they didn't escalate to a reason to close stores.
"I'm not going to pretend we don't have safety incidents, we're in a pretty underprivileged neighborhood. That comes with problems," Cat Ureta, another worker at the closing East Olive Way Starbucks in Seattle, told Insider.
These problems almost never involve harm to customers or employees, Ureta said. The location was part of a pilot program employing a security guard, primarily because of people stealing from the tip jar, which led to escalation when the jar was switched to a different design that made it more difficult to steal from.
"No one ever got hurt. It was just a lot of noise and a lot of show," Ureta said.
Some contend that the conditions at the closing stores aren't notably worse than other stores that are permitted to stay open.
"We're not an outlier, especially in a big city," Union Station Seattle worker Lily Harvey told Insider, based on her visits to other locations and conversations with employees at other stores.
When incidents do occur, Harvey said that there is security in the building and transit security outside that she can call.
The Union Station store doesn't have public bathrooms, which are the site of many complaints about safety and hygiene at other locations. Starbucks workers in Seattle have previously told Insider in 2018 that they had to dispose of hypodermic needles from restrooms nearly every day, and at least two were stuck with needles.
Mari Cosgrove, another worker at the Union Station location, says she's been shouted at, but never felt unsafe.
"Corporate conflates discomfort with being unsafe," she told Insider. "I can't remember the last time I filled out an incident report."
The height of incidents occurred earlier in the pandemic, Cosgrove told Insider, when masking was contentious and customers would sometimes become angry about the policy. At that point, she says she filled up to one incident report a day.
A barista at the 4th and Morrison location in Portland, which is also closing, told Insider he hasn't "had a customer or other interaction that made me feel unsafe," since he was hired, Though not privy to the decision making, he suspects it was chosen to close in part because it had consistent property damage.
"We get a window smashed probably once every six months," he said and noted that both bathroom mirrors have been broken in the past.
Coming soon: more closures
When approached for comment on its employees' statements, Starbucks directed Insider to a letter from VPs Debbie Stroud and Denise Nelsen on safety published on the company's website on July 11, which states: "We want you to know that creating a safe, welcoming, and kind third place is our top priority."
Starbucks union organizers say the closures are an excuse to shut down recently unionized stores. Two of the 16 closing stores had voted to unionize at the time the closures were announced while the one in Portland had a petition to unionize.
"Every decision Starbucks makes must be viewed through the lens of the company's unprecedented and virulent union-busting campaign," Starbucks Workers United, which represents Starbucks workers who have voted to unionize, previously told Insider in a statement.
Starbucks denies the union's accusations and insists it is focusing on safety.
"Claims of union busting are false. We regularly open and close stores as a standard part of our business operations," a spokesperson told Insider. "We apply the same focus on safety at unionized and non-union stores and are closing non-union stores where we are similarly challenged in providing a safe environment for our customer and partner experience."
More stores will close in the future, CEO Howard Schultz said in leaked footage Starbucks confirmed as authentic.
"This is just the beginning. There are going to be many more," he said.
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2022-07-28T20:15:19Z
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Starbucks Closing Stores for Safety:worker Perspectives
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https://www.businessinsider.com/starbucks-closing-stores-for-safety-worker-perspectives-2022-7
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https://www.businessinsider.com/starbucks-closing-stores-for-safety-worker-perspectives-2022-7
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5 innovative studios making Snapchat augmented reality lenses, racking up millions of views for big brands like Disney, Nike, and Sony Pictures
Fishermen Labs' Nike x LeBron James AR lens for Snapchat
Snap launched Lens Studio in 2017, enabling Snapchat creators to make AR lenses for the app.
Since Lens Studio launched, many studios have focused their businesses on developing AR lenses.
These AR studios have created Snapchat lenses for brands including Coca-Cola, Disney, and Sephora.
While Snap reported disappointing second-quarter results this month, primarily because of lagging ad revenue, the ephemeral messaging platform has been a leader when it comes to augmented reality creators.
Since launching Lens Studio at the end of 2017, which enables Snapchat creators to make AR lenses for the app, a slew of studios have focused their businesses on developing Snapchat AR lenses for an array of brands, including Coca-Cola, Disney, Levi's, Sephora, and Walmart. Lenses, too, offer a wide range of experiences, from giving the ability for users to virtually try on makeup and clothes to monitoring pregnancies.
"We're just scratching the surface of all the things that augmented reality can do," Snap head of AR platform partnerships, Sophia Dominguez, told Insider. "With Lens Studio, creators and developers can leverage this tool to bring whatever it is that they want to see come to life or solve whatever problem that they want."
For a subset of independent creators, developing AR lenses for Snapchat has become a full-time job. Cyrene Quiamco, for instance, who quit her job with Verizon in 2015 to focus on making Snapchat content, earned nearly $750,000 in 2021 from her work on AR lenses for brands including Hulu, Marriott, and Ulta.
Some studios, as their work has progressed, have developed niches. 2020CV, which has developed Snapchat AR lenses for Disney, Comic-Con, and the Dallas Mavericks, specializes in recreating visual effects from movies, while Wabisabi Design, a firm that has developed lenses for Coca-Cola, excels in designing AR-based games.
Here are five studios at the forefront of innovation creating AR lenses for Snapchat:
Fishermen Labs has designed lenses for over 70 brands, ranging from Nike to Wendy's.
Fishermen Labs COO Daren Fennell, cofounder Eden Chen, and cofounder Charles Hu.
Cofounded by Eden Chen and Charles Hu in 2014, Fisherman Labs started as a software company designing websites before moving onto developing smaller augmented reality and virtual experiences. But after landing a plum project with Walmart to develop a virtual reality fishing game, the studio began doubling down on AR and VR.
Fishermen Labs, which was one of the first developers to use Lens Studio, has worked with over 70 brands to date, including Paramount Pictures, Sony Pictures, Nike, Wendy's, and Pandora for Snapchat AR lenses.
The studio's Nike x LeBron James lens, released in 2019, enabled shoppers at the Foot Locker House of Hoops in Hollywood to point their phones at an in-store mural to watch a virtual James recreate his first dunk as a Laker. According to Hu, the lens was viewed about 2 million times.
Paper Triangles refocused on AR after realizing the limitations of VR.
Paper Triangle creative director Shawn Kim, cofounder Xuan Buddavong, and cofounder and director Frank Shi.
Paper Triangles
Initially started as a VR development studio by Frank Shi and Xuan Buddhavong, Paper Triangles pivoted away from VR to AR at the end of 2017 after Snap launched Lens Studio.
"VR really kind of fell off at that point due to the limitations of distribution itself," said Shi, referring to the relative size of VR's user base compared to the number of AR-capable smartphones in the wild. "We really couldn't get our work out there. Clients were finding it hard to get the results they wanted, and it was also very expensive."
Paper Triangles, which now earns about $3 million in annual revenues, has worked with well over 50 brands on AR lenses since then, including Doordash, Honda, Levi's, Ralph Lauren, Sephora, and T-Mobile. A collaboration with Crocs, in which users could customize and try on a virtual pair of clogs, ultimately proved one of Paper Triangle's most successful projects, generating roughly 3 million views.
"Brands see this as a cool new way to advertise, particularly as companies like Apple keep emphasizing privacy," Shi said.
Wabisabi Design specializes in building AR games.
Wabisabi Design's cofounders Julio Zabre, Esteban Lezama, and Anwar Noriega.
Wabisabi Design
After selling their AR company in 2017, Anwar and Oscar Noriega, as well as Julio Zabre and Esteban Lezama, founded Wabisabi Design in early 2018 with the goal of developing AR games.
But when Snapchat launched Lens Studio, it focused most of its efforts on creating lenses for the platform.
Two of its most successful lenses include one for Coca-Cola Zero Sugar Byte, a soda flavor released in early April in Latin America, as well as a Valentine's Day themed lens for Snapchat itself. The latter generated 63 million views, according to Snap.
2020CV started as a personal design challenge.
2020CV founder Hart Woolery
2020CV
What started as a personal design challenge for serial entrepreneur Hart Woolery — an AR hand puppet users could overlay atop their hands — became a bonafide business in 2017 when Mark Cuban became an investor.
In the years since, Woolery has created a wide range of Snap AR lenses for clients like Warner Bros., Disney, Comic-Con, and the Dallas Mavericks.
2020CV's specializes in creating (or recreating) visual effects from movies.
"I still see AR as being in the early stages, especially from a hardware perspective," said Woolery, who projects 2020CV will make between $200,000 and $300,000 in revenue this year. "If there's ever a transition point where that goes to AR glasses, I definitely see the kind of work I'm doing shifting to that. But for the most part right now, I'm focused on mobile devices, mobile AR, and taking advantage of the camera phones that we have today."
Qreal has developed AR lenses for PlayStation 5 games.
Qreal managing director Mike Cadoux
Qreal
Originally founded in 2015 with a focus on AR for food and food menus, Qreal began focusing on Snapchat AR lenses in 2019. Since then, the company has worked with a slew of high-profile companies, including Nike, Samsung, Sony, Walmart, and Unilever.
One of its most successful campaigns included lenses for several PlayStation 5 games, including "Sackboy: A Big Adventure" and "Demon's Souls," when Sony launched the console in 2020.
In early June, Qreal acquired Pulpo AR, a Turkey-based AR technology e-commerce company, for its virtual try-on solutions in the beauty and retail spaces, as well as back-end technologies like machine learning and face-tracking, which Qreal managing director Mike Cadoux said were "really important" for the next generation of AR.
"For people like us, we're really excited that that entire ecosystem [of AR experiences] is going to require assets," Cadoux said. "It's our goal to be the biggest and best provider of those lifelike or amazingly stylized 3-D assets."
More: Features Snapchat Augmented reality
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2022-07-28T20:15:25Z
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5 Innovative Studios Making Snapchat Augmented Reality Lenses
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https://www.businessinsider.com/top-studios-making-snapchat-augmented-reality-lenses-2022-7
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https://www.businessinsider.com/top-studios-making-snapchat-augmented-reality-lenses-2022-7
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U.S. President Joe Biden gestures as he delivers remarks on the Inflation Reduction Act of 2022 in the State Dining Room of the White House on July 28, 2022 in Washington, DC.
Slower economic growth is "consistent with" moving toward lower inflation, Biden said Thursday.
The president played down recession worries, highlighting low unemployment and healthy spending trends.
Fed Chair Powell made similar remarks Wednesday, calling weaker growth "necessary" to fight inflation.
When life gives you negative-economic-growth lemons, you make lower-inflation lemonade.
President Joe Biden pushed back against recession concerns on Thursday and painted gloomy economic data as a sign the US is shifting into a period of "stable" growth and cooler inflation. Data out Thursday morning showed the economy shrinking at a 0.9% annualized rate in the second quarter. That landed below economists' forecasts and marked a second straight quarterly contraction.
Though the report paints a bleak picture of the US economy, Biden said the quarterly decline is part of a move toward a healthy expansion.
"There's no doubt that we expect growth to be slower than last year and the rapid clip we had. But that's consistent with the transition to a stable, steady growth and lower inflation," the president said during a roundtable discussion with CEOs and members of his administration.
Treasury Secretary Janet Yellen echoed the president's sentiments, calling the report a sign the US is in a "transitional moment" toward "steady and sustainable growth."
The push toward a lower-inflation environment has dominated the White House's economic agenda in 2022. Extraordinarily strong demand and lingering supply-chain issues lifted price growth to a 9.1% year-over-year pace in June, reflecting the fastest inflation since 1981 and further straining Americans' finances. Soaring prices have played a major role in pulling economic sentiment to historic lows, and as midterm elections loom, Biden has increasingly shone the spotlight on efforts the administration and the Federal Reserve have taken to blunt inflation.
The administration has also emphasized the healthy pockets of the economy amid growing fears of a recession. The Thursday GDP report intensified fears of a downturn, as back-to-back quarters of economic decline are generally regarded as indicative of a "technical recession."
The Council of Economic Advisors published a blog earlier in July clarifying the criteria for a recession, noting the National Bureau of Economic Research's definition is far more stringent. The organization serves as a semi-official authority on when downturns start and end, and it deems recessions to be "a significant decline in economic activity that is spread across the economy and that lasts more than a few months." With the US still adding nearly 400,000 jobs a month and the unemployment rate at a historic low of 3.6%, it's unlikely a recession began in the second quarter.
Biden highlighted areas of strength in the economy during the roundtable, adding they confirm the economy fared better through the second quarter than the GDP report alone suggests.
"There's going to be a lot of chatter today on Wall Street and among pundits about whether we are in a recession," Biden said. "But if you look at our job market, consumer spending, business investment, we see signs of economic progress in the second quarter as well."
The commentary mirrors that from Fed Chair Jerome Powell's Wednesday press conference. The central bank raised interest rates by another 0.75 percentage points on Wednesday in its latest move to cool demand and slow inflation. The chair played down concerns that the country is currently in a recession and noted that slower growth is "necessary" to reach sustainable inflation levels.
"I do not think that the US is currently in a recession," Powell said. ""There are too many areas of the economy that are performing too well."
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2022-07-28T21:41:22Z
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Biden Warns Economic Slowdown Is Necessary for Lower Inflation
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https://www.businessinsider.com/biden-economic-slowdown-necessary-lower-inflation-recession-fear-outlook-2022-7
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https://www.businessinsider.com/biden-economic-slowdown-necessary-lower-inflation-recession-fear-outlook-2022-7
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Homebuilders are calling up big investors like Invitation Homes to offload more homes as buyers back out of contracts
In June, homebuilders across the country saw 14.5% of contracts fall through, the highest rate since April 2020, according to John Burns Real Estate Consulting.
Thomas Bullock/Getty Images
More regular buyers are backing out of contracts to buy houses directly from homebuilders.
Builders are increasingly offering those homes to deep-pocketed firms with large rental portfolios.
Invitation Homes, the US's largest owner of single-family rentals, sees an opportunity to expand.
As more buyers back out of contracts for newly built homes, builders are increasingly offering those properties to deep-pocketed firms eager to grow their portfolios of rental homes.
Homebuilders are dealing with a rise in cancellations as would-be buyers reckon with higher mortgage rates and slowing home-price growth. That's opened up opportunities for giant landlords like Invitation Homes to snap up more inventory.
"Over the last month, it feels like a lot of our partners have been calling us because they've had some cancellations," Dallas Tanner, the CEO of Invitation Homes, told analysts during the company's second-quarter earnings call Thursday morning.
Dallas, Texas-based Invitation Homes is one of the largest single-family rental operators in the US, with roughly 85,000 homes under management, mostly in western and southeastern states. It's part of a relatively young crop of companies that are using billions of dollars from institutional investors to buy up single-family homes to rent out.
Investors of all sizes bought up a record 20% of homes sold in the US in the first quarter of 2022, according to the brokerage Redfin. While institutional buyers make up just a small part of that — they still own less than 3% of the estimated 20 million single-family rentals in the US — they tout strong profits, with Invitation Homes reporting a net income of $111 million in the second quarter alone.
Invitation Homes expects to buy roughly $1.5 billion worth of properties in 2022, according to its most recent earnings statement. The firm is on track to meet that goal, acquiring about $800 million worth of homes between January and June.
Tanner said Thursday that the rise in buyer cancellations means Invitation has more opportunities to snag homes.
Even before buyers started backing out of contracts in larger numbers, it was common practice for homebuilders to provide a pipeline of new homes to large owners of single-family rentals. Last July, Invitation Homes announced a partnership with PulteGroup Inc., the nation's third-largest homebuilder, to buy approximately 7,500 new homes from Pulte over five years.
For homebuilders, relationships with big landlords like Invitation — and competitors like American Homes 4 Rent and Pretium Partners — could become even more important as the for-sale market softens.
When the market was running red-hot, builders had no problem selling homes. But ever since mid-June, when the Federal Reserve enacted the largest interest-rate hike since 1994, there have been "a lot of cancellations in the communities that we were active in," Tanner said on Thursday's call.
"We're able to take some advantage of that," Tanner added.
Another executive at a real-estate firm that owns a large number of single-family rentals, who asked to remain anonymous to protect business relationships, said homebuilders today are more interested in discussing sales to big investors than they were six months ago.
Back then, builders usually stood to profit from selling to regular buyers who were willing to pay more. But as demand cools, homebuilders are once again looking to big landlords for a surefire sale.
"They're coming back around," the executive told Insider.
Tanner said he's not yet seeing homebuilders offload properties in bulk.
"I think the pipeline takes a little bit of time to develop, but we'd expect that we might see more opportunities towards the latter part of the year," Tanner said.
Tanner added that Invitation Homes has taken "a little bit of a cautious approach" to acquiring properties this summer as it waits to see whether more supply becomes available in overheated areas.
"We do want to see where some of these submarkets start to settle out," Tanner said. "We think there could be some even better buying opportunities towards the end of the year."
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2022-07-28T21:41:28Z
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Builders Sell More Homes to Big Investors As Other Buyers Back Out
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https://www.businessinsider.com/builders-sell-more-homes-big-investors-invitation-homes-2022-7
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A Colorado man has won free Subway sandwiches for life, though not how you might have expected.
At an event Subway hosted Wednesday, James Kunz got a 12-by-12 back tattoo of the Subway Series logo to earn the lifetime supply of subs.
Eight other people at the event got smaller tattoos of the logo, winning free sandwiches for a year.
A Colorado man has won free Subway sandwiches for life, and it's all thanks to his latest tattoo.
Subway recently introduced its new Subway Series menu, which consists of 12 new sandwiches sold as-is. The launch marks the company's biggest menu overhaul in its history and is a big departure from the customization that made the chain popular.
To celebrate, Subway hosted a block party event in Las Vegas on Wednesday where fans could get a tattoo of the new Subway Series logo to earn free sandwiches for a month, a year, or a lifetime, depending on its size and location on the body.
James Kunz of Fort Collins, Colorado, jumped at the chance. He got a 12-by-12-inch tattoo of the logo on his back, earning him footlongs for life, awarded in the form of $50,000 in Subway gift cards.
"I'm a huge fan of Subway, so I thought about it and I thought well, maybe I should fly out to Las Vegas," he said. "I'm thrilled to have made it this far and to have actually gotten the big tattoo. I'm proud of it."
Kunz first heard about the event in a Twitter group chat.
"Someone shared the news in there and I thought wow, I should do that because I would love to get free Subway for life," he said.
Kunz actually credits Subway with helping him improve his health years ago.
"I used to be a chunky teenager, and Subway was one of the factors that helped me change out of less-healthy fast food," he said. "It helped me to become a lot healthier."
Besides Kunz, eight other Subway fans got 3-by-3-inch tattoos of the Subway Series logo on either a shoulder blade, forearm, or calf. They won free sandwiches for a year, awarded as $4,380 in Subway gift cards.
To promote its newest sandwiches, Subway also gave away one million free subs from the Subway Series earlier this month.
More: Subway Sandwich Fast Food Retail
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2022-07-28T21:41:34Z
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Colorado Man Gets a Giant Subway Tattoo, Wins Free Footlongs for Life
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https://www.businessinsider.com/colorado-man-wins-free-subway-sandwiches-for-life-back-tattoo-2022-7
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https://www.businessinsider.com/colorado-man-wins-free-subway-sandwiches-for-life-back-tattoo-2022-7
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Activate your third-party keyboard
Remove your third-party keyboard
Close and restart the app
Show the onscreen keyboard when an external keyboard is connected
Disable the external keyboard
Check your keyboard settings
Restart the iPad
7 ways to troubleshoot if your iPad's keyboard is not working
If your iPad's onscreen keyboard isn't working, you might need to activate it in Settings.
Your external keyboard might also conflict with the onscreen keyboard, so turn it off or disable Bluetooth.
Here are the top seven ways to resolve a problem with your iPad's onscreen keyboard.
The iPad's onscreen keyboard is convenient and flexible — on some models, for example, you can even split the keyboard to make it easier to type with your thumbs. But if your iPad keyboard is not working, it can be hard (or even impossible) to get work done on your tablet. In many cases though, you can fix the glitch and start typing again quickly. Here are seven ways to resolve problems with the iPad's onscreen keyboard.
If you've recently installed a third-party keyboard like Gboard or Fleksy and you can't figure out why it isn't working, it's probably because the keyboard isn't yet activated. Using a third-party onscreen keyboard requires two steps: You need to install it, and then activate it so the iPadOS can include it in the list of available keyboards.
The exact process varies depending on the keyboard you're using. In some cases, you can run the keyboard app and it'll step you through the activation process. In other cases, you need to do this manually: Start the Settings app and tap General, followed by Keyboard. Then tap Keyboards, Add New Keyboard, and tap the name of the keyboard you just installed.
Installing a keyboard on your iPad isn't enough. You also need to activate it.
If you've recently installed and activated a third-party keyboard and it's crashing or otherwise preventing you from typing or switching to other keyboards, the shortest path to fixing the problem is generally to disable or remove the keyboard that's causing you trouble.
You can delete keyboards that seem to be misbehaving.
If you're running into trouble using the keyboard, but only when running one particular app, you might be able to resolve the issue simply by force-closing that app and then restarting it. After you start the app a second time, try using the onscreen keyboard to see if that fixed the issue.
If you are using an external keyboard, your iPad will always try to use that keyboard when text input is required. But you can usually launch the onscreen keyboard even when the external keyboard is attached — it's always a tap away. When you are in a text field that allows typing, look for the keyboard shortcut bar at the bottom of the screen. Tap the Keyboard icon (to the left of text suggestions) and then, in the pop-up menu, tap Show Keyboard.
You can force the onscreen keyboard to appear even if you are using an external keyboard.
If you have recently used an external keyboard, your iPad might still be trying to use it instead of the onscreen keyboard. This can sometimes be really confusing, especially if the external keyboard isn't nearby, and you wouldn't expect the iPad to be connected.
The remedy? Make sure the external keyboard is truly disconnected. If it's a powered keyboard, turn it off using the keyboard's power switch. Otherwise, you can also turn off Bluetooth on your iPad (start the Settings app, tap Bluetooth, and then turn off Bluetooth by swiping the button to the left) or remove the keyboard from the list of Bluetooth devices. To do that, start the Settings app, tap Bluetooth, find the keyboard in the list of paired devices, and tap the i. Then tap Forget This Device.
If your onscreen keyboard works — perhaps just not the way you expect — it might simply be that some of the settings are misconfigured. Start the Settings app and tap General, followed by Keyboard. Review all the settings on this page to see if something is misconfigured. For example, features like auto-capitalization and auto-correction might be turned off, leading to a lot more typos than you're used to.
Review all the keyboard settings to see if there's something causing it to behave differently than you expect.
As is often the case with computers, it's possible that some sort of temporary software glitch is keeping the keyboard from appearing on screen. Restarting your iPad — turning it off and then back on again — can resolve most of these kinds of problems. Restart it and check the onscreen keyboard again.
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2022-07-28T21:41:46Z
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7 Ways to Troubleshoot If Your iPad's Keyboard Is Not Working
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Democrat Jay Chen, center, is running to represent California's 45th Congressional District.
Courtesy of the Chen campaign
A Democrat running for Congress in California failed to properly disclose investments in Moderna and Pfizer.
Jay Chen is running against GOP Rep. Michelle Steel in the state's 45th Congressional District.
Chen did not disclose the stock purchases until Insider contacted his campaign with proof of the investments.
A Democrat in California running for U.S. Congress failed to report his investments in two pharmaceutical giants behind leading COVID-19 vaccines, Insider found.
Jay Chen, who's running against Republican Rep. Michelle Steel in California's 45th Congressional District, did not reveal until July 26 that he owned thousands of dollars of stock in both Moderna and Pfizer — hours after Insider contacted him with records indicating his ownership of his investments.
Federal law requires congressional candidates to publicly disclose their stock holdings in a certified, public report soon after announcing their candidacies.
Congress is actively considering banning members of Congress from trading stocks altogether because of widespread violations of the law and repeated examples of financial conflicts of interest.
Chen's campaign manager, Lindsay Barnes, told Insider in an email that the error was the result of "an honest misunderstanding" of disclosure requirements, and that that Chen sold his stock in the two companies in early 2021.
Chen had previously disclosed his Pfizer and Moderna stock holdings in an obscure state-level document, known as a "California Form 700," that he filed because of service on the Mt. San Antonio College's board of trustees.
Chen's California disclosure, which was filed in April 2021 and obtained by Insider, noted that he personally invested between $2,000 and $10,000 in both Pfizer and Moderna stocks in late 2020, immediately before the two companies began shipping millions of dozes of their COVID-19 vaccines.
A copy of congressional candidate Jay Chen's "California Form 700," which shows his investments in Moderna and Pfizer stocks. He failed for months to disclose the investments in federal documents, which are by law required.
When Chen, as a congressional candidate, submitted his annual federal financial disclosure to Congress in August 2021, he included each of his 31 investments listed on the California Form 700 — except for the Moderna and Pfizer stocks. He made no mention of them in his 2022 disclosure, either.
"Due to an honest misunderstanding in moving between state to federal disclosure requirements, the campaign unintentionally omitted the transaction within its federal disclosure," Barnes said. "As soon as the campaign realized this discrepancy, we immediately amended the report."
A congressional candidate could be fined if he or she "knowingly and willfully falsifies a statement or fails to file a statement" in accordance with US House guidance, although officials rarely pursue such investigations.
While candidates and members of Congress are required to submit financial disclosures to the House Ethics Committee, the committee does not proactively check to ensure the filings are complete and error-free.
Compare that to the federal government's campaign finance sector, where the Federal Election Commission has workers investigating the minutiae of each and every campaign's financial disclosures to ensure they're complying with federal laws and rules.
Rep. Michelle Steel (at lectern) is a Republican from California who faces a challenge from Democrat Jay Chen, a lieutenant commander in the US Navy Reserve.
Congress considering stock-trade ban
The discovery of Chen's error comes at time when members of Congress are debating whether they and their spouses should even be allowed to trade stocks.
On Thursday, Punchbowl News reported, and Insider confirmed, that House Democrats are close to unveiling a Congressional stock trade ban that would make lawmakers, their spouses, and staffers put their assets into a blind trust or sell them altogether.
When asked, Chen's campaign manager told Insider that Chen believes that members of Congress should "not be allowed to trade individual stocks" and that he "will place his investments into a blind trust if elected."
Donald Sherman, the senior vice president and chief counsel at nonpartisan watchdog group Citizens for Responsibility and Ethics in Washington, told Insider that Chen's failure to disclose the Moderna and Pfizer investments further underscores the need for a congressional trading ban.
"The fact that members and candidates sometimes inadvertently, sometimes intentionally, withhold information from these forms is exactly why it is a smarter policy to have an outright ban on members of Congress buying, trading, or owning individual stocks," Sherman said.
Insider and other outlets have catalogued 66 members of Congress who've violated the federal Stop Trading on Congressional Knowledge (STOCK) Act of 2012, which requires members to publicly disclose their investments within 45 days of making them, among other mandates.
Insider's "Conflicted Congress" investigation also found numerous conflicts of interest within federal lawmaker's personal investments. Among them: Dozens of members of Congress invested in COVID-19 vaccine makers Pfizer, Moderna, and Johnson & Johnson at a time when lawmakers were voting on pandemic-related legislation together worth trillions of dollars.
According to Sabato's Crystal Ball at the University of Virginia's Center for Politics, the race between Steel and Chen "leans Republican" come November. California's 45th Congressional District is one of the nation's few congressional districts with both a large Asian population and two Asian candidates running against one another.
Chen is trailing in Steel in money raised, according to research organization OpenSecrets — Chen has raised $3 million compared to Steel's $4.7 million, though both campaigns have nearly the same amount of cash on hand, about $2 million.
More: INSIDER Data politics enterprise Jay Chen 2022 elections
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2022-07-28T21:41:58Z
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Dem Congressional Candidate Jay Chen Didn't Report Investments in Pfizer, Moderna
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https://www.businessinsider.com/pfizer-moderna-stock-investment-jay-chen-california-congress-democrat-2022-7
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https://www.businessinsider.com/pfizer-moderna-stock-investment-jay-chen-california-congress-democrat-2022-7
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PlantSnap
Garden Answers
iPlant
PictureThis
PlantNet
The 7 best plant identifier apps for iPhone and Android
Plant identifier apps are plentiful on iPhone and Android.
Many apps, like LeafSnap and PlantSnap, have premium tiers, but iPlant and PlantNet are completely free options.
Here are seven of the best plant identification apps for your smartphone.
What's that plant in the backyard? Or on the hiking trail you're traversing? In the past, you'd have to browse a field book to have any hope of identifying it, but these days all you need is a plant identifier app. Here are seven of the best apps for figuring out what plant you're looking at without becoming an expert botanist.
LeafSnap, available for both iPhone and Android, comes with a free three-day trial, but you need to be willing to subscribe for $4.99 per month (or $25.99 annually) to make use of this app. It includes a thorough and expansive library of plants which you can search by name, or snap a photo using your phone. After identifying the plant, you can read a short description, see additional photos and follow links to Wikipedia, PlantUse, and other sites.
Leafsnap isn't free, but it has a large, informative database of plants.
PlantSnap is a good compromise between free and paid features; you can use it for free with ads or upgrade to an ad-free version for $2.99 per month ($19.99 annually or $29.99 lifetime). The visual photo identification is easy to use, and there's a tutorial for beginners. After snapping a photo, the app even lets you zoom and pan to send the best version of the photo to the app's AI, so you can get the most accurate results from the database of over 625,000 plants. If you want a little futuristic flair, put the app in augmented reality mode so you can identify plants while pointing the phone without even snapping a photo. It's available for both Android and iPhone.
PlantSnap is particularly attuned to new users with tutorials for every module in the app.
You need to create an account to begin using Garden Answers, either signing up for a premium plan for $3.99 per year or getting weekly marketing emails for the free version. You can use the app to ask one-on-one questions to a professional horticulturist ($1.99 per question), find nearby plants by searching a map, interact with an online community and more. Of course, there's a visual plant identifier; snap a picture or choose one from your phone for instant identification.
There's a free tier with Garden Answers, though you'll be subjected to ads to search for plants and use the community features.
iPlant is perhaps the simplest and most straightforward plant identification app. There are no special features here like community forums, browsable plant encyclopedias or paid upgrades. The app is little more than a camera that sends your snap off to an AI for evaluation. The results are brief but informative, and you can perform a more thorough Google search with a single tap. Unfortunately, this app is iOS only, so Android owners will have to look elsewhere.
iPlant is an iPhone-only app, but it works well to identify plants.
You can use Planta (available for both iOS and Android) for free, but most of the best features are contained in the premium version, which costs $35.99 per year or $7.99 a month. That includes the visual plant identification tool — just tap the search box followed by the Identify plant by picture icon — to photograph a leaf and get an instant analysis. But the real focus of this app is to help you care for your own indoor or outdoor garden, so unless you have a green thumb and want help managing your plants or garden, the app could be overkill.
Planta is a full-featured plant management app that also happens to perform visual IDs using your camera.
PictureThis is among the most comprehensive visual plant identifiers for iOS and Android, but there's no free tier. You get a week free to try it out, but the app is $29.99 per year after that. Available for both iOS and Android, it has a lot of features that'll appeal to home horticulturists, including an auto-diagnosis tool to tell you what's ailing your plants, a light meter, and an insect identifier. When it comes to IDing plants, not only can you take snapshots, but also perform a "360 identify" (in which you capture photos from several angles) and an AR scan to ID plants without pressing the shutter. There's also a tree-ring analysis tool, weed identifier, and more. It's not free, but it's worth the expense.
PictureThis is bursting at the seams with features for the home horticulturist.
While PlantNet is a great (and free) plant identification app for both Android and iPhone, it's even better for groups of people. The app is a self-described "citizen science project" that lets you join groups within the app and share your data with others, as well as see what they have found as well. There aren't a ton of other features here, but it's a great option to ID plants without spending money and exploring what others are finding around you as well.
PlantNet emphasizes sharing, but you can use this free app on your own as well.
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2022-07-28T21:42:04Z
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The 7 Best Plant Identifier Apps for iPhone and Android
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https://www.businessinsider.com/plant-identifier-app
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How to use an Allay in Minecraft
How to find an Allay in Minecraft
How to breed Allays in Minecraft
In Minecraft, Allays can pick up and carry items.
The Allay is a new Minecraft mob introduced in the Wild Update.
When you give an Allay an item, it'll start collecting more copies of that item.
You can breed Allays by giving them amethyst shards while a jukebox is playing nearby.
This year's big Minecraft update, the Wild Update, introduced a lot of new mobs and mechanics. But the cutest of them all is definitely the Allay, a tiny ghost-like creature that will try to fetch anything you tell it to.
Here's what the Allay does, how to find one, and how to make more.
In essence, the Allay is a bit like a walking metal detector. Once you give it an item (by right-clicking or pressing Left Trigger), it'll start following you and searching for more copies of that item. It'll then collect every matching item it finds, and deliver them straight to you.
As long as you stay within 64 blocks of the Allay, it'll follow you anywhere (except underwater). And while it's following, it'll search for and find items within 32 blocks of you. If a note block triggers nearby, it'll also spend 30 seconds circling around the note block instead.
When they’re not searching for items, Allays fly around aimlessly.
There are a few situations where having an Allay can be immensely useful. If you've set up a mob farm, for instance, you can use an Allay to passively collect only the loot you want but leave the rest. If you used TNT to strip mine an entire cave at once, your Allay can clean up the materials left behind. And of course, if you accidentally dropped an item somewhere, using an Allay is an easy way to find it.
Just note that your Allay can only collect dropped items — in other words, it can only collect items when they're just a tiny icon floating above the ground. This means that if you give your Allay a diamond, it can't find more diamonds you haven't mined yet.
Unlike most mobs, Allays only spawn in two specific spots: Pillager outposts and woodland mansions.
Pillager outposts are tall structures filled with crossbow-wielding warriors, which can spawn in most biomes. Occasionally you'll find pillager outposts surrounded by wooden jail cells. These cells will hold either an iron golem or two Allays.
The pillagers inside the outpost will try to defend their cages.
Woodland mansions are rarer, and you can only find them in dark forests. Some mansions have jail cells inside, usually locked and guarded by a vindicator. While most cells will be empty, there's always a chance that you'll find one to three Allays locked inside.
Once you've found some trapped Allays, break the jail cell bars to free them. The only way to get the Allays to follow you after that is to give them an item to search for, so give them any item and lead them to safety.
Quick tip: Minecraft added Allays with the Wild Update, which released in June 2022. This means that they'll only appear in worlds you created after the release of that update.
Allays don't breed quite like other creatures in Minecraft. To duplicate your Allay, you'll need a jukebox, a music disc, and an amethyst shard.
To make a jukebox, combine a diamond with eight planks of any type. You'll also need to insert a music disc into it, which you can find in treasure chests across the world, or by tricking a skeleton into killing a creeper.
You can find amethyst shards underground by mining amethyst clusters, which grow as part of larger amethyst geodes.
Once you've got everything you need, lead your Allay to the jukebox and play the music disk. The Allay will start dancing. Give your amethyst shard to the Allay, and it'll spawn another one.
Give an amethyst to a dancing Allay to duplicate it.
After that, you'll need to wait at least five minutes before the original Allay or the new one can duplicate again.
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More: Tech How To Minecraft Minecraft Items Minecraft: The Wild Update
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2022-07-28T22:59:10Z
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The Allay: a Guide to Minecraft’s New Mob
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Warren Rojas and Juliana Kaplan
Senator Chuck Schumer, D-N.Y., and Sen. Kyrsten Sinema, D-Ariz., arrive for the closed briefing on election security in the Capitol on Wednesday, July 10, 2019
Bill Clark/CQ Roll Call via Getty Images
On Wednesday night, Democratic Sen. Joe Manchin dropped a surprise spending deal.
The package will put billions towards climate, and close a tax loophole used by the rich.
Republicans are counting on Democratic Sen. Kyrsten Sinema being put off by any tax talk.
Senate Democrats aren't worried that taxing top earners just months before the midterms elections will haunt them this fall. They say the proposed changes to a tax loophole baked into their reconciliation spending deal as an inequality fix that's long overdue.
"This Senate Democratic majority will ensure the wealthiest corporations and individuals pay a fairer share in taxes," Senate Majority Leader Chuck Schumer said Thursday at the US Capitol while debriefing congressional reporters about the state of play of the stunning deal he and centrist Democrat Sen. Joe Mahchin of West Virginia sprung on everyone late July 27.
The package, which tackles prescription drug pricing, health care coverage, and climate change issues, also includes a new corporate minimum tax on companies with billions in profits as well as the tweak to a tax loophole called "carried interest" which allows investors to pay a lower tax on profits they earn as income.
Closing the carried interest loophole is likely to be one of the thorniest sticking points in moving the Inflation Reduction Act of 2022 forward. Several Republicans denounced the current proposal as an inflation-stoking tax hike they suspect will draw the ire of tax-averse centrist Democrat Sen. Kyrsten Sinema of Arizona. The bill also has to get the greenlight from the Senate parliamentarian before Schumer can hustle anything out for a floor vote.
"I know this has been something that Sen. Sinema had concerns about. And I don't think they checked with her beforehand," Senate Finance Committee member and GOP whip John Cornyn of Texas said of Schumer's legislative gambit, adding that "it is very definitely a tax increase."
Like it or not, Sen. Elizabeth Warren of Massachusetts said Democrats were doing "exactly the right thing" by chipping away at the longstanding tax break.
"The adjustments to carried interest are going to fall on the richest Americans who have been using a tax loophole to not pay the taxes that everybody else has to pay," Warren told reporters at the US Capitol, adding that she also wholly endorses the minimum corporate tax included in the bill. "These are good moves."
Schumer declined to comment on whether he'd consulted with Sinema before rolling out this latest bundle. "Members are reviewing the text, and we'll all be talking shortly," he said of the swirling negotiations.
Sinema has, so far, refused to comment on the revived reconciliation package — remaining tight-lipped even as reporters peppered her with questions Thursday as she left the Capitol.
—Manu Raju (@mkraju) July 28, 2022
The carried interest loophole debate has raged for years, supported and opposed by both sides of the aisle
The so-called carried interest loophole refers to how compensation works for people in fields like private equity and real estate. Essentially, when they invest in a company, they're paid by getting a percentage of the profits. Those profits are taxed at the capital gains tax rate, which is far lower than the tax rate placed upon a straightforward paycheck.
In essence, "private equity managers and these real estate managers who structure their compensation in the form of carried interest pay a much lower tax rate than others who make their living from bonuses and wages and salaries," according to Steve Rosenthal, a senior fellow at the Tax Policy Center.
The debate over carried interest isn't new. "I think a lot of Americans over the years have heard the message that these private equity managers are not entitled to be taxed at lower rates," Rosenthal said.
The reforms that Democrats are proposing — which they estimate would bring in $14 billion over the next ten years, a fairly low sum for a tax measure — are not a new idea, nor one that's straightforwardly partisan. Both Donald Trump and Hillary Clinton were in favor of closing the loophole, but Trump's 2017 tax package ultimately failed to close the loophole entirely.
Instead, it added a three year holding period, meaning that private equity funds would have to hold onto their portfolio companies for at least three years before cashing out. Now, the new Democratic proposal would extend that period to five years.
"The idea is if they sell their interests, either they find a buyer for their portfolio company, or the company goes public and does an IPO sooner than five years, they would pay ordinary income tax rates," Samantha Jacoby, a senior legal tax analyst at Center on Budget and Policy Priorities, told Insider.
"It's a loophole closer for very highly paid people who buy and sell companies"
Democratic Sen. Raphael Warnock of Georgia, who is being challenged for reelection this fall by Trump-backed former football star Herschel Walker, said slashing prescription drug costs for his cash-strapped constituents and addressing the "existential threat of climate change" would be worth any flack he might catch about carried interest rates.
"This bill takes us in the right direction," Warnock told Insider in the tunnels beneath the US Capitol.
Democratic Sen. Catherine Cortez Masto of Nevada, who is also on the ballot in November, said she's still working her way through the lengthy bill, stressing that she wants to ensure that "Nevadans are not harmed in any way" and that families making less than $400,000 a year won't see higher tax bills.
"For the person at home, it's not going to raise their taxes," the CBPP's Jacoby said. "It's a loophole closer for very highly paid people who buy and sell companies."
Sen. Brian Schatz, who is also up for reelection this fall, didn't shrink from the targeted tax changes.
"Do you know any people in private equity that make less than $400,000?" he asked Insider, chuckling a bit as if to say he had no problem with closing the carried interest loophole.
GOP tax writer Sen. Chuck Grassley of Iowa panned the reconciliation plan as "an inflation enhancement bill."
"We're in a recession. You shouldn't be raising taxes," he said between votes on Capitol Hill.
Grassley left the door open to tweaking carried interest rates — pointing to the three-year holding period rule woven into the 2017 tax bill Trump signed into law as an example — but warned that rushing things wouldn't work for him.
"Can there be some changes made in carried interest? Yes, I think there can be," Grassley told Insider. "If they want to get it done next week, the answer is 'no.'"
Republican Sen. Marco Rubio of Florida brushed off the whole Democratic bundle as ill-timed government spending.
"This is not really an economic bill. It's a climate bill decorated with tax measures," Rubio told Insider.
More: Economy Politics Kyrsten Sinema Sen. Kyrsten Sinema
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2022-07-28T23:16:27Z
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Democrats Want to End Carried Interest Tax Loophole, Sinema Will Likely Object
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https://www.businessinsider.com/democrats-want-close-carried-interest-loophole-republicans-sinema-object-2022-7
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https://www.businessinsider.com/democrats-want-close-carried-interest-loophole-republicans-sinema-object-2022-7
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The Justice Department's Jan. 6 probe continues to zero in on former President Donald Trump.
CNN reported Thursday that the agency is gearing up for a legal battle over forced testimony about Trump.
AG Merrick Garland this week said he hasn't ruled out charging Trump over January 6, 2021.
The Justice Department wants Trump White House officials to testify about the former president's conversations on and around January 6, 2021 — and they're willing to go to court to make it happen, according to CNN.
The outlet on Thursday reported that people briefed on the matter say federal prosecutors are preparing for a legal battle over forcing former Trump administration officials to testify in its sprawling January 6 probe. The agency's apparent preparation is the latest sign that the DOJ's investigation is zeroing in on Trump's conduct related to efforts to overturn the 2020 election.
The Justice Department is anticipating that Trump will claim executive privilege in order to conceal evidence from the federal grand jury, CNN reported, and prosecutors are getting ready to duke it out in court.
A Trump spokesperson did not immediately respond to Insider's request for comment.
News of the DOJ's planning comes two days after several media outlets reported that the agency's probe has become increasingly focused on Trump's actions following his loss to President Joe Biden.
Two people familiar with the matter told The Washington Post that investigators before a grand jury asked recent witnesses about conversations with Trump, his lawyers, and his allies. Prosecutors have inquired about meetings the former president held in December 2020 and January 2021; his attempts to convince Vice President Mike Pence to not certify the election results; and the level to which Trump is implicated in his attorneys' fake-elector scheme.
A court battle over executive privilege, however, would quickly and publicly escalate the investigation.
The Justice Department has faced growing criticism for its slow-moving investigation, especially as the congressional committee's televised hearings have stoked renewed public interest in the insurrection in recent weeks. But the agency's alleged preparation indicates the caution prosecutors are taking in navigating the difficult situation of investigating a former president for his behavior while in office, CNN noted.
No former president has ever been criminally charged in US history. But Attorney General Merrick Garland this week suggested he hasn't ruled out indicting Trump for his role in the attack.
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2022-07-29T00:43:43Z
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www.businessinsider.com
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CNN: DOJ Prepping for Battle Over Forced Jan. 6 Testimony About Trump
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https://www.businessinsider.com/cnn-doj-preps-battle-over-forced-jan-6-testimony-trump-2022-7
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https://www.businessinsider.com/cnn-doj-preps-battle-over-forced-jan-6-testimony-trump-2022-7
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A 24-year-old derivatives trader and crypto startup exec who bought ethereum at $45 explains why the token won't hit $5,000 for at least 2 more years
eCarbon co-founder and CEO Joshua Fernando
eCarbon
Joshua Fernando is the CEO and co-founder of blockchain startup eCarbon.
The 24-year-old exec explains why traditional equities are strongly correlated with major cryptos.
Ethereum is up 42% in the past month, currently trading near $1,632.
Many investors jumped into ethereum when it neared all-time highs of $4,847.54 last year. Joshua Fernando, a former S&P Global senior associate and derivatives trader, had jumped in at $45 in 2016 – as it started a 10,672.31% ride up to its record price.
Like most people, Fernando was skeptical of ethereum when he first heard about it. His older cousin poured his savings into ether and once the investment doubled, the 24-year-old considered allocating as well. Fernando says he sold his ethereum once he achieved 20% returns, adding that as a professional trader his "risk tolerance is extremely low." But he later bought back in and has continued investing via dollar-cost averaging ever since.
Years later, Fernando sees more long-term potential than ever in the layer-1, even starting eCarbon – a blockchain company focused on environmental products. The co-founder predicts that ether, which was trading near $1,632.45 on Thursday, won't hit $5,000 until at least 2024.
This is a change of tune, however, from excitable crypto executives and firms who have called for crypto prices to rise at exponential rates. In a survey conducted by Finder, some fintech experts predicted that ether could notch over $50,000 by 2030. Antoni Trenchev, a cofounder of crypto lender Nexo, told CNBC that bitcoin may also hit $100,000 "within 12 months."
A high correlation to traditional equities
A lot of Fernando's prediction boils down to macroeconomic factors; he says ethereum won't begin to fully recover from its slump until traditional markets do. As the Federal Reserve vows to crush inflation with interest rate hikes, investors are wary of speculative bets across the board.
"I really think we need to see the actual traditional equities market resume chugging up every single year in a bull market fashion in order to actually see this though," Fernando told Insider.
He added that as crypto becomes more "mainstream" investors will treat their investments like traditional equities, which is what brings the correlation between the two even closer. "This issue," per Fernando, is that people are thinking of ethereum as "just another tech investment."
Ethereum's highly anticipated series of network upgrades, called The Merge, may also contribute to overall adoption of its network. The next upgrade, which is slated for September, will transition the network from an energy intensive proof of work to a proof of stake consensus mechanism.
Amid crypto's rocky market cycle, the asset class has shown signs of potential recovery, however. Ethereum is up 42% in the past month, according to Messari, while Bitcoin has risen 17% in the same time frame. This follows a slew of bearish news for the space which has left investors – both institutional and retail – accessing systemic risks and contagion concerns for the ecosystem. In the past month, centralized lender Celsius and brokerage Voyager Digital both filed for bankruptcy.
crypto price
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2022-07-29T08:11:28Z
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www.businessinsider.com
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Ethereum Price Forecast, Why It Won't Hit $5,000 Till 2024: Crypto Exec
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https://www.businessinsider.com/crypto-price-forecast-ethereum-blockchain-startup-founder-5000-2024-2022-7
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https://www.businessinsider.com/crypto-price-forecast-ethereum-blockchain-startup-founder-5000-2024-2022-7
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Francisco Partners' 'DJ' Deb just raised $17 billion for the tech-focused private-equity firm. Here's how the founder went from no salary for 13 months to amassing $23 billion in available capital.
This week we're featuring Dipanjan "DJ" Deb, the cofounder and chief executive of Francisco Partners.
The private-equity firm just raised about $17 billion in capital through two new funds. The fundraise comes at an opportune time for the tech-focused investor as target company valuations slump.
Dipanjan "DJ" Deb reckons the tech sector is what is going to lead the economy out of this recessionary period. And that is a "huge tailwind," for his private-equity shop, Francisco Partners, where he is chief executive.
The investment firm just raised close to $17 billion through two new funds, and Deb's ready to deploy that cash across healthtech, software, cyber security, and fintech, among other tech-adjacent spaces. Francisco Partners raised $13.5 billion through its seventh flagship fund, and $3.3 billion in a fund dubbed Francisco Partners Agility III.
Deep-pocketed investors came into the capital-raising vehicles, including public pension funds like CalPERS and CalSTRS, sovereign wealth funds, and corporate pension funds, Deb said.
"Most tech companies' stock prices have been decimated, and some of those are very warranted. A lot of investors have thrown the baby out with the bath water and not been discernible," Deb said in an interview. "Our goal is to figure out those opportunities and what we can go after."
Company valuations ballooned in recent years as low-cost capital and cashed-up investors piled into young companies, many of which were unprofitable. But as public markets have cratered, and valuations have dipped, Deb is feeling opportunistic.
"Some companies were dramatically overvalued. People were spending at all costs and that led to some improper behavior," Deb said. "A lot of companies were poorly managed, but among them, there are a lot of gems. Our goal is to find those gems."
Including this latest fundraise, Francisco Partners is now equipped with $23 billion in available capital. Deb said that money will be put to work on finding public companies to take private, and targeting bloated businesses looking to shed assets through so-called carve outs.
Every large company has "underperforming divisions," according to Deb. And when it comes to convincing those CEOs to divest an asset, Deb's pitch is "addition by subtraction."
"As a CEO where do you spend your time? The speech we make to big companies is, 'if you divest this division, you can focus on your core competencies and your multiple will go up,'" Deb said.
While the slump in valuations has private equity circling cheaper assets, there are some headwinds.
Interest rate hikes are partially responsible for compressed valuations, and market volatility does make it harder to negotiate an asset sale because certain sellers might be reluctant to let go of a business that just 12 months ago came with a sky-high value.
"When there's huge volatility in prices, people have a hard time getting to 'yes,'" Deb said.
Thirty years old, and 13 months without a salary
Deb and co-founder David Stanton formed Francisco Partners in 1999. The pair left investing giant TPG to form their new venture. Deb called it "Project Francisco" after a colleague who lived on Francisco Street in the Bay Area.
Deb, 30 at the time, was taking a huge risk. He had a newborn baby and went 13 months without a salary.
And in the early days — like many new businesses — Deb and Stanton's venture almost went out of business. But the company got a little help from Sequoia Capital, which invested in the firm early on, Deb said.
Today, like many of the businesses Francisco Partners invests in today, Deb champions the work ethic of a founder.
"We partner with a lot of founder-led companies. That resonates because I'm a founder. My parents thought I was crazy, but that's the entrepreneurial spirit," Deb said.
More: Finance banker of the week Francisco Partners Private Equity
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2022-07-29T10:17:17Z
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Banker of the Week: Meet Francisco Partners' Founder and CEO 'DJ' Deb
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https://www.businessinsider.com/banker-of-the-week-francisco-partners-private-equity-dj-deb-2022-7
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https://www.businessinsider.com/banker-of-the-week-francisco-partners-private-equity-dj-deb-2022-7
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This startup aims to make extracting lithium for batteries more sustainable and efficient. Check out the 27-slide pitch deck EnergyX used to raise $450 million.
EnergyX team photo.
EnergyX
Austin-based EnergyX aims to make lithium mining more sustainable and efficient.
Lithium is a crucial component of batteries used to power everything from mobile phones to EVs.
The startup just secured $450 million from private equity firm Global Emerging Markets.
A startup that aims to dramatically improve the process of extracting lithium from the earth has raised $450 million from private equity firm Global Emerging Markets – on the promise of an IPO.
Austin-based EnergyX, founded in 2018, claims it can remove the metal from the ground in a more efficient and sustainable way than conventional methods. Lithium is a crucial component of batteries used to power everything from mobile phones to electric vehicles.
One way lithium is currently extracted is via evaporation ponds, where salty water, or brine, is evaporated by sunlight to leave a bed of lithium behind. It takes several rounds of evaporation to extract lithium, with other minerals like sodium and potassium being extracted first. The whole process uses a lot of water and takes about 18 months.
EnergyX founder Teague Egan expected the automotive industry's shift to electric vehicles to lead to lithium demand dwarfing supply and set about solving the issue as a result. Output in 2022 is expected to reach 588,000 tonnes while demand is likely to top 689,000, according to an analysis by Credit Suisse.
"We've applied mining and other water-separation technologies to the problem of lithium," Egan told Insider. "For example, there is a way where you can take ocean water, run it through separation membranes, and turn salty ocean water into fresh drinking water using those selective membranes. We've made membranes that are selective towards lithium."
The company also uses solvent extraction, which is where a molecule is mixed into the salty brine and "grabs" the lithium, Egan said. It is like adding oil to water; they separate, he added.
EnergyX's solutions are also more sustainable, the company claims. Its technology can be retrofitted onto existing processes so miners can extract more lithium with the same input, Egan said. When working with a new miner, building a new site from scratch, the startup can turn the process from 18 months to a few days, the founder added.
EnergyX is also "not wasting" the water that's evaporated in conventional methods. "You're pumping it up, you're separating out the lithium in a controlled environment, and then you can basically just re-inject the water to not disturb the surrounding water table for people that need it for agriculture and things," Egan said.
As well as extraction, separation, and recovery, the company hopes to build out refineries to then sell lithium to car and battery manufacturers. Last week, Elon Musk called for more investment in lithium refineries. "You can't lose, it's a license to print money," the Tesla founder said, according to Bloomberg.
EnergyX is looking at several sites in the US and South America for its facilities.
The company can only access Global Emerging Markets' investment commitment once it goes public, which it is planning for 2024. It currently has a headcount of 50 and will double that in the next 12 months.
The company has previously raised $16 million in venture capital.
Check out the company's 27-slide redacted pitch deck below.
More: Startups Pitch Deck Venture Capital
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2022-07-29T10:17:19Z
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EnergyX: Lithium Extraction Startup Raises $450 Million
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https://www.businessinsider.com/energyx-lithium-batteries-pitch-deck-450-million-ipo-2022-7
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https://www.businessinsider.com/energyx-lithium-batteries-pitch-deck-450-million-ipo-2022-7
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Today's mortgage and refinance rates: July 29, 2022 | Rates dropped this week
Average mortgage rates went down this week following two straight weeks of increases. The average 30-year fixed mortgage rate dropped to 5.3% from last week's 5.54%, according to Freddie Mac.
Rates have been volatile this month as investors balance record levels of inflation with the growing risk of a recession. On Wednesday, the Federal Reserve announced a 75 basis point hike to the federal funds rate. It also raised rates by this much in June, the first time it's enacted such a large hike since 1994.
The Fed is trying to tame inflation by aggressively raising rates, but experts are becoming increasingly skeptical that it can do so without inadvertently triggering a recession.
Even with mortgage rates a little lower than they've been in recent weeks, they're still up 2.5 percentage points year-over-year. With so many different factors currently impacting the housing market, homebuying demand has declined.
"It's certainly understandable that potential homebuyers are concerned and possibly overwhelmed by current levels of inflation, increased rates, low inventory, high home prices and macroeconomic uncertainty," says Steve Kaminski, head of US residential lending at TD bank. "But as always, I strongly recommend anyone entering the market right now to focus on something imperative that they can control – the fundamentals of preparation."
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2022-07-29T10:17:24Z
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www.businessinsider.com
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Today's Mortgage, Refinance Rates: July 29, 2022 | Rates Dropped This Week
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https://www.businessinsider.com/personal-finance/best-mortgage-refinance-rates-today-friday-july-29-2022-7
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https://www.businessinsider.com/personal-finance/best-mortgage-refinance-rates-today-friday-july-29-2022-7
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Rapid-grocery startup Gorillas, last valued at $3 billion, is set to raise $250 million from existing backers at a lower valuation
Callum Burroughs and Hasan Chowdhury
Gorillas CEO Kagan Sumer.
Gorillas is set to raise a new funding round at a reduced valuation, Insider understands.
The German rapid-grocery startup is bringing in $250 million from existing shareholders.
The company, founded in 2020, culled half of its corporate staff in May in a cost-cutting move.
Rapid-grocery startup Gorillas is set to raise $250 million in fresh funds from existing investors two months after it axed half of its corporate staff, Insider understands.
The Berlin-based firm is one of a multitude of apps promising grocery deliveries in 10 minutes that sprang up during the pandemic. The startup expanded rapidly, raising more than $1.3 billion from investors such as Coatue, Tencent, and DST Global in the space of a year.
Gorillas pursued an aggressive expansion strategy with widespread discounting and splashy ads. But the economic downturn matched with its high cash burn rate has forced the company to switch its business model away from hyper growth and towards a path to profitability.
The startup is set to close a new $250 million funding round from existing investors at a reduced valuation as it looks to extend its runway, three sources with knowledge of the talks told Insider. The company raised $1 billion at a $3 billion valuation in October.
Gorillas declined to comment.
Gorillas previously worked with JP Morgan to explore new funding options or a potential sale, but that relationship has ended, Insider understands.
The startup is thought to be burning up to $75 million per month and had around $300 million remaining in May, TechCrunch reported. Prior to its new round, Gorillas had a short runway until around November this year, according to a source familiar with the company's finances.
The company had been targeting a valuation as high as $5 billion, Insider's Tom Dotan reported in May.
The attempt to protect Gorillas' ongoing viability after two years of splashy ads campaign across European cities is being led by a committee of its leading investors, including Coatue and Dragoneer, alongside management.
Gorillas counts German company Delivery Hero among its investors. Earlier this month, Delivery Hero completed a deal to acquire Spain's Glovo, marking the latest in a series of deals across the continent that have driven consolidation among rapid grocery delivery players that have struggled to sustain operations.
Gorillas axed 300 of its corporate staff in May as part of its push toward sustainability. Kagan Sumer, the Gorillas CEO, said the rapid delivery industry will enter a period of "natural selection" and that only one or two companies will survive.
In an email to staff, Sumer said the company had benefitted from a "tremendous growth wave" in the global economy but that markets had "turned upside down" in a matter of months.
More: Gorillas DoorDash Flink
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2022-07-29T10:17:30Z
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Rapid Grocery Delivery Giant Gorillas Set to Raise $250 Million
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https://www.businessinsider.com/rapid-grocery-delivery-giant-gorillas-set-to-raise-250-million-2022-7
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https://www.businessinsider.com/rapid-grocery-delivery-giant-gorillas-set-to-raise-250-million-2022-7
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What the second consecutive quarter of negative GDP growth means for Fed policy and stocks in the second half of 2022 — and where to put your money
US stocks have tumbled in 2022 as investors have panicked about growth and rising interest rates.
The US has posted its second consecutive quarter of negative GDP growth this year.
We asked 3 financial experts what this means for Fed policy and stocks going forward.
They also shared where investors might find the best opportunities right now.
US gross domestic product, or GDP, posted negative growth year-over-year for the second consecutive quarter in 2022, the Bureau of Economic Analysis announced on Thursday. GDP fell by an annualized 0.9% from April-June compared to the same period in 2021.
The result meets one definition of a recession, though the National Bureau of Economic Research has yet to declare an official downturn as the job market remains historically tight.
Regardless of labels, however, Thursday's GDP reading shows the US economy is slowing in some areas — perhaps most notably in housing as rising mortgage rates weigh on demand — and further fuels growing fears of a sharp economic decline.
The Federal Reserve said at their meeting on Wednesday that they remain committed to fighting inflation by tightening monetary policy. But as the economy softens and signs point to inflation possibly having peaked, some are wondering if the Fed will be more likely to back off of their hawkish stance some.
We asked three market experts their thoughts on what Q2's GDP report means for monetary policy and the market going forward, and where investors can best place their money.
Matt Peron, director of research at Janus Henderson Investors
Peron said the Fed seemed to signal this week that they're more open to letting up on the brakes than they have been in prior months.
"I did observe a sort of opening the window for 'we can slow down if the data suggests that,' I think more so than they've signaled in the past" he said.
Still, Peron said he remains defensive and isn't "risk-on" yet, despite the pain that equities have already felt this year (the S&P 500 has fallen as much as 23%).
But quality growth names in healthcare (especially biotechnology and pharmaceutical firms) and software look to be compelling buys at the moment.
"I think that the growth side of the market has taken its lumps and needed to have a valuation reset, and I think that's going to be more resilient in an economic slowdown," he said. "Healthcare, software in particular look very interesting at this point, and they give you a little bit of protection from both the inflation dynamic, as well as they're less economically sensitive."
The iShares Biotechnology ETF (IBB) and the SPDR S&P Software & Services ETF (XSW) provide diversified exposure to the above sectors.
Tom Essaye, founder and president of Sevens Report Research
Essaye doesn't believe GDP is much of an input for the Fed in forming monetary policy, and that they're instead focused more on inflation and the labor market.
With inflation still high and the labor market strong, he thinks they'll stay hawkish for the second half of the year, and pointed to Fed Chair Jerome Powell saying on Wednesday that inflation would have to come down significantly before they think about backing off.
"Powell was actually quite generous yesterday insomuch as he basically told the market what will sort of dictate the Fed backing off its rate hikes," he said.
To Essaye, that probably means something around the 5-6% level.
As for what this means for stocks, Essaye thinks the S&P 500 will end the year between 3,600-4,000. It closed on Thursday around 4,070.
Essaye said he likes defensive investments the most right now.
"Going defensive is the key to outperforming in the second half — so your utilities, your healthcare, your consumer staples, and even the long-dated Treasurys, where if there's a real slowdown you will see money come back into bonds," he said.
If Essaye had to pick one sector in the market, he said he'd choose healthcare.
Investors seeking exposure to the healthcare sector might consider a diversified fund like the Healthcare Select Sector SPDR Fund (XLV).
Jason Pride, CIO of private wealth at Glenmede
Pride also said that the Fed will "err on the side of being tougher" in the months ahead given that the labor market remains strong and consumer spending, which makes up two-thirds of GDP, remains positive even adjusting for high inflation.
He also highlighted that stocks continue to trade at a premium, which is not typical in a pre-recessionary environment.
Given this, he has a cautious view on equities for the months ahead and favors 2-5-year investment grade bonds.
"Our thinking there is the Fed's guidance has driven the yield curve to provide us an opportunity in 2-5-year debt where you get paid basically the same on 2-5-year debt that you do on 20-30-year debt," Pride said. "We're taking limited risk and getting the same reward."
The iShares 0-5 Year Investment Grade Corporate Bond ETF (SLQD) provides partial exposure to the durations Pride likes.
He also likes higher-yielding credit, as well as real-estate investment trusts.
On high-yielding credit, he said: "Fixed income and equity markets — it's like they're speaking different languages. Credit markets appear to be pricing in the recession, while equity markets don't appear to be pricing in the recession. Given that in a lot of cases, you're actually buying into the same company — it's just different parts of their capital structure — we think that's an interesting opportunity we're exploring."
On real estate, he said: "From our perspective real estate is equally discounted right now, pricing in the recession while broader equity markets don't appear to be. And it happens to be that real estate historically has the ability to capture inflation on a lag."
The iShares iBoxx $ High Yield Corporate Bond ETF (HYG) and the Schwab US REIT ETF (SCHH) offer diversified exposure to the above areas of the market.
More: Investing Recession investing in a recession
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2022-07-29T10:17:36Z
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Here's Where to Put Your Money After US GDP Went Negative Again in Q2
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https://www.businessinsider.com/recession-investing-where-to-put-your-money-gdp-negative-q2-2022-7
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https://www.businessinsider.com/recession-investing-where-to-put-your-money-gdp-negative-q2-2022-7
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Hi. Aaron Weinman here. Let's talk about interns, specifically the rigorous program on offer at Steve Cohen's $24 billion hedge fund Point72.
Steve Cohen runs Point72 Asset Management
1. Here's how to stand out among the pack for Steve Cohen. The hedge-fund manager and New York Mets owner founded the $24.4 billion fund Point72, and its internship is one of the most sought after on Wall Street.
Importantly, a summer internship is often a precursor to the Point72 Academy — a 10-month training program for college graduates and early-career folks looking to carve out a living as an investment analyst.
The firm gets about 16,000 applications a year for Point72 Academy, but only 40 or so people make the cut each year. Therefore, impressing as an intern is one of the best ways to nab a spot.
The chosen ones go through rotations across Point72's 25 investment teams, and they also get to hone their ideas with priceless pitching skills. And who knows, maybe the interns might get to learn pitching skills with some of Cohen's Mets aces, like Jacob deGrom and Edwin Díaz.
Insider's Alyson Velati chatted with two portfolio managers and a program director at Point72, who shared the most impressive traits among the firm's summer interns.
And here's some other reporting about the hiring uncertainty on Wall Street and how early-career folks can progress:
Here's everything we know about banks' belt tightening and how it will impact jobs and compensation
Inside Goldman Sachs' plans to bring back the dreaded performance review
Twelve career counselors reveal the industries where hiring is still hot
Wall Street is racing to turn the tide on its war for tech talent against Silicon Valley
2. Here's how Airbnb and its bankers at Goldman Sachs and Morgan Stanley scrambled to take the company public as the pandemic hit. This story is an excerpt from Insider Chief Finance Correspondent Dakin Campbell's new book "Going Public: How Silicon Valley Rebels Loosened Wall Street's Grip on the IPO and Sparked a Revolution."
3. Media dealmaking continues to boom despite the market uncertainty. Meet 16 private-equity players investing in Hollywood, from Apollo to TPG.
4. Flying private has become more popular as commercial carriers struggle with high traffic. But with few private jets available, charter firms are inundated with customers. Go inside the frenzy for private planes as the rich flock to European charters.
5. The GameStop frenzy put payment for order flow on the hot seat. Here's how FTX US and Public.com plan to profit without it.
6. Robinhood Chief Executive Vlad Tenev says the company is equipped to stay independent. The app-based brokerage is more focused on its most active users, Tenev told Bloomberg in an interview.
7. Working from home is taking a toll. Companies are ditching their offices and it is set to get worse for the $2.5 trillion office-space market.
8. This beach house owner's revenues from rent jumped more than $100,000 after ditching a management company for Airbnb. Here's the exact changes Anissa Branch made for her Oregon property.
9. JetBlue won the battle for Spirit Airlines after Frontier and Spirit canceled a merger deal. The David Neeleman-founded JetBlue reached a $3.8 billion agreement for Spirit, but now it must win over President Joe Biden's Justice Department. Goldman Sachs advised JetBlue, Shearman & Sterling was its legal counsel. Barclays and Morgan Stanley advised Spirit, and Debevoise & Plimpton, and Paul, Weiss were legal counsel.
10. And here's our Friday Banker of the Week. Meet Dipanjan "DJ" Deb. He's the co-founder and chief executive at Francisco Partners.
The private-equity firm has just raised $17 billion in new capital, and Deb told Insider he's eyeing a bunch of assets throughout the tech space from adtech to healthtech.
Check out the full story here, and learn about Deb and his decision to leave one of the most well-known investment firms to start his own shop.
Carlyle's credit platform led the debt financing to support Clayton, Dubilier & Rice's acquisition of Atalian and OCS Group. The debt package includes a so-called unitranche loan, which comprises a mixture of loans that sit on various parts of a company's capital structure.
Ardian, Groupe Casino, Bpifrance, and Tikehau Capital will acquire a majority stake in GreenYellow, a French energy company. Ardian's infrastructure team led proceedings.
More: Newsletters Finance 10 Things on Wall Street
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2022-07-29T12:10:10Z
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How to Nab an Internship at Steve Cohen's Point72
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https://www.businessinsider.com/hiring-steve-cohen-point72-hedge-fund-careers-2022-7
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https://www.businessinsider.com/hiring-steve-cohen-point72-hedge-fund-careers-2022-7
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Like the British band, the new GDP data tells us the economy is in dire straits. Phil Rosen here, coming to you from Los Angeles.
I'm not much for '70s rock n' roll, but I do keep an ear to government data — and yesterday's GDP print kicked up a lot of hubbub.
This much I know for sure: GDP doesn't tell the whole story.
There's a lot of moving parts. Let's break it down.
1. The technical definition of a recession is two consecutive quarters of GDP contraction, which the government just confirmed Thursday — the economy shrank by 0.9% last quarter after contracting 1.6% in the first quarter.
Back-to-back declines like we just saw are widely regarded as indicators of a recession, but there's more at play.
First, the US economy is not officially in a recession until the National Bureau of Economic Research says so — and they haven't yet.
In Thursday comments, Janet Yellen pointed to the strong job market as reason to believe the US economy isn't in a broad slowdown. There's been a flurry of payroll additions and unemployment remains at reasonable levels.
The country is on track to surpass its pre-COVID payroll count this August, 30 months after the virus struck.
The same feat took 76 months after 2008, and 48 months after 2001.
And all the while Americans have been emptying their wallets. We spent $681 billion at retailers and restaurants last month, and even adjusted for inflation, that's a healthy clip.
Even though the GDP just shrank in the last three months, spending was still up.
So — are we in a recession?
Yes, according to one measure. No, when you tie in all measures.
You can also catch one of the editors of this newsletter, Hallam Bullock, on The Refresh from Insider discussing the big recession question.
2. US stock futures rise early Friday, following a positive earnings report from Apple. The company advanced more than 4% after hours. Meanwhile, the Japanese yen is on track for its largest monthly gain against the dollar in two years. Here are the latest market moves.
3. On the docket: ExxonMobil Corp., Procter & Gamble Co., AstraZeneca PLC, all reporting.
4. This batch of growth stocks are cheaper than they've been in years. And Goldman Sachs said they will be able to weather a series of aggressive Fed rate hikes. See the list of 18 names here.
5. The gold market should see slower jewelry demand through the end of 2022. That's according to the World Gold Council, which pointed to a slow recovery in China and import duties in India. Here's what you want to know.
6. Amazon stock surged 12% after hours Thursday. The Jeff Bezos-led retail giant reported a fall in quarterly operating income, but the company pointed to progress in the efficiency of its fulfillment network. Here are some key takeaways.
7. Freddie Mac noted that housing market demand continues to tumble even as mortgage rates dip. Sales activity is slumping since the market has not yet normalized, the groups' chief economist said. The 30-year fixed rate fell from 5.54% to 5.30% for the week ending Thursday.
8. Real estate investors on the sidelines said they are waiting for the right moment to jump back into the market. At this point in the current cycle, some property investors are watching the landscape change from a seller's market to one that favors buyers — and some of them are sitting on a pile of cash waiting to buy.
9. A former BlackRock investment stock chief is monitoring specific signals to identify a bottom in stocks. Bob Doll said these three signals make him believe markets haven't bottomed yet. But he's betting on these five stocks amid the "murky" economic environment.
10. More than 55,000 gas stations across 17 states already have gas prices below $4, GasBuddy data shows. And prices at the pump are still slipping further after reaching record highs earlier this summer. On average, the whole country could see prices fall below $4 by mid-August.
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2022-07-29T12:10:28Z
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US Is in a Technical Recession, but Other Data Tells a Different Story
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https://www.businessinsider.com/recession-inflation-data-gdp-fed-central-bank-yellen-economy-markets-2022-7
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https://www.businessinsider.com/recession-inflation-data-gdp-fed-central-bank-yellen-economy-markets-2022-7
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A TUI plane flew from Greece to Scotland without passengers, The Daily Mail reported.
A TUI plane flew from Greece to Scotland without passengers, MailOnline reported.
Passengers were kicked off the plane because crew had worked too many hours, per the report.
Their flight was delayed by 13 hours and TUI was unable to provide overnight accommodation.
Passengers were booted off a plane by British airline TUI because the crew had worked too many hours – but the plane still flew off without them, according to a report by MailOnline.
The flight from the Greek island Corfu to Aberdeen, Scotland — originally scheduled for 10:15 p.m. on 22 July — was initially delayed by a few hours, which a TUI spokesperson told Insider was related to "operational disruption."
But after passengers had taken a shuttle bus to board the plane, they were told to return to the terminal because the captain had exceeded his legal limit on working hours, passenger Steve Dongworth told MailOnline. He said that TUI staff later told him it was actually the cabin crew, not the pilot, who had timed out.
Passengers were given a new flight time of 1:45 p.m. on July 23, MailOnline reported — more than 13 hours after the original flight was scheduled to depart. Data from FlightRadar 24 confirms the flight was scheduled for this time.
Dongworth told MailOnline that while he waited at the airport he had checked flight-tracking app FlightRadar24 and saw that the plane had actually departed at 3:44 a.m. and made the journey to Scotland. Insider confirmed via both FlightRadar 24 and FlightAware that the plane departed at this time and flew to Aberdeen.
"The plane still needed to return to the UK as this would then impact other flights," the TUI spokesperson told Insider. "Passengers couldn't fly on this aircraft as there was not any crew to operate the flight."
TUI was unable to provide overnight accommodation for the passengers waiting for their rescheduled flight. Dongworth said they were left to sleep on the floor in the departure lounge.
"We were told those who wanted to leave could do so but would not be allowed back into the gate until they had checked in for the new flight," Dongworth told MailOnline, adding that he didn't want to walk round Corfu so late at night.
"Regretfully, a lack of hotel availability in the area meant we couldn't source any overnight accommodation for customers as we normally would in these circumstances," the TUI spokesperson told Insider.
The airline told affected passengers that they wouldn't be able to access their checked-in luggage during the delay, per a screenshot of an email from TUI that Dongworth shared on Twitter.
Dongworth told MailOnline that the airline only offered him sandwiches during the delay, but a TUI spokesperson told Insider that staff handed out water and meal vouchers to the passengers.
The flight was ultimately delayed again, departing at 3:57 p.m. on July 23, per data from FlightRadar 24.
The spokesperson told Insider that TUI had kept the passengers up to date while it worked on a new flight plan and had provided them with details on how to claim compensation under EU rules.
"We do everything we can to get customers away as planned and, while instances like this are rare, we recognise we fell short of our usually high standards and apologise again," the spokesperson said.
NOW WATCH: 4 Americans stuck abroad share stories of flight cancellations and poor government response
More: TUI Airline travel chaos flight
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2022-07-29T12:10:52Z
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Passengers Kicked Off Plane After Crew Timed Out, Plane Still Flew Off
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https://www.businessinsider.com/tui-passengers-kicked-off-plane-crew-timed-out-travel-chaos-2022-7
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https://www.businessinsider.com/tui-passengers-kicked-off-plane-crew-timed-out-travel-chaos-2022-7
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5 founders of million-dollar brands give their tips for successful social-media marketing when 'everything is about video'
From left: Gwyneth Paltrow, the founder of Goop; Alli Webb, the cofounder of Drybar; and Emma Grede, the cofounder of Good American.
Entrepreneurs must now produce more video content to effectively market themselves on social media.
The founders of Goop, Banza, Good American, Drybar, and Megababe shared tips at a recent event.
Emma Grede, the CEO of Good American, said you should obsess over what your community is saying.
As Instagram and Facebook attempt to look more like TikTok, business owners must now produce more video content to effectively market themselves on social media.
"Everything's about video," Brian Rudolph, the cofounder of the vegan-pasta brand Banza, said during a panel at the Goldman Sachs' 10,000 Small Businesses Summit on July 19. "Be willing to accept that these things are constantly evolving and adapting."
Insider spoke with Rudolph; Katie Sturino, the founder of the beauty brand Megababe; and Alli Webb, the cofounder of the salon chain Drybar, about how their companies are adapting to video. Gwyneth Paltrow, the CEO and founder of Goop, and Emma Grede, the cofounder and CEO of the Kardashian-backed jeans business Good American, also shared their insights onstage at the conference.
Four of the founders have built million-dollar companies: CB Insights, a business-analytics platform, valued Banza at $32.2 million in 2017; Good American is worth $130 million, according to Fortune; Helen of Troy, a publicly traded consumer-product developer, acquired Drybar for $255 million; and The New York Times Magazine reported that Goop was worth $250 million in 2018.
Megababe declined to share revenue numbers, but a company spokesperson said it sold over 1 million products last year and has been profitable since launching in 2017.
Here are the entrepreneurs' social-media-marketing tips for business owners.
1. The format may change, but the message stays the same
Before Instagram prioritized video on its platform, Banza found success in reposting some of the dishes its 247,000 followers cooked with its products and shared. "That model doesn't work at the moment," Rudolph said. "What's resonating most is original video content."
The brand evolved its approach with one team member focused solely on creating and testing video content. Even though the format has changed, the company's overall messaging, which Rudolph describes as "relentlessly positive," has stayed the same.
"We don't take ourselves too seriously — we make chickpea pasta after all," he said, adding that the brand focuses on the fun-loving role it plays in customers' lives. "We always joke that our brand would be like Jimmy Fallon: It's just the type of person that you want to hang out with."
2. Push through the uncomfortable
For some business owners, the transition to video content can be challenging, but Sturino encourages entrepreneurs to use it as a forum to share more personal information.
"They wanna know who's behind this brand," she said. "Why am I paying maybe a dollar more for something because you're a small business?"
It might be uncomfortable at first — it was for Sturino, who wasn't sure anyone cared about her life. "When I first started, I felt that it was all very narcissistic to share your day with someone, but actually people are interested," she said. "Push through the uncomfortable."
3. Show your product in action
Drybar pivoted during the pandemic to meet women where they were spending more time: at home. So the brand did more DIY tutorial videos for its 528,000 followers, incorporating its styling products and tools. "We really pivoted to help women be able to do their own hair," Webb said.
The founder also suggests finding ways to stand out in saturated markets. For example, she's an investor in the humidifier brand Canopy, which has found success marketing its products for the beauty benefits of hydrating skin and improving makeup application.
"When you're trying to cut through the noise, what is everybody expecting about this product or service?" Webb said. "Then I'm going to do the opposite to stand out."
4. Double down on what brought customers early on
Paltrow has built Goop's brand — backed by 1.7 million Instagram followers — on the premise of unconventional wellness tips. Goop is often the first to try the latest, quirkiest beauty or health product on the market, like a vagina-scented candle or snow yoga.
But even a celebrity-led brand has to face the challenges of fickle technology. "All of us are trying to find customers in a post-iOS 14 update world. It's gotten a lot more difficult," Paltrow said.
Regardless of the platform, she's learned to tap into what's resonated with her audience since day one. "Focus on what brought those early customers and double down on that," Paltrow said. "One of the things that brought a lot of our customers in was an open line of communication that was honest."
5. Pay attention to what your customers are saying
Grede is so invested in her Good American customers, she reads every review.
"Being obsessed with what your community is saying about the product is really, really important," she said, adding that it helps steer the brand into making good decisions.
Since the brand is helmed by a Kardashian, social media is the most powerful tool to tap into what customers want. So when Good American noticed that some of the brand's 2.3 million Instagram followers were wearing its bodysuits as swimwear, it hopped on the opportunity to create a swimwear line.
"The community was telling us, we listened, and now it's the second-biggest category at Good American," Grede said. "Lead the community into thinking that they're part of the decision-making process; they will lead you down a really fortuitous path."
More: Entrepreneurship Small Business Goldman Sachs
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2022-07-29T13:59:14Z
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Instagram Video-Marketing Strategies for Entrepreneurs
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Workers add the huge roof tarpaulins on the wooden structure at a beer tent on July 8 2022, in Munich.
A German politician said she may suggest that Munich cancel Oktoberfest this year.
The famed festival — which draws millions — is set to return after a two-year pandemic hiatus.
But a gas shortage caused by Russia's war in Ukraine is looming over the celebration.
A German politician said the country may consider doing the unthinkable: cancel its famed Oktoberfest beer festival because of a gas shortage caused by Russia.
Rosi Steinberger, a lawmaker in Germany's Bavaria state, said she was weighing suggesting that Munich cancel this year's Oktoberfest as the country's gas supply becomes increasingly strained, the New York Times reported on Friday.
"I haven't asked yet," Steinberger told the Times. "But I also think that when people say there should be no taboos in what we consider — well, that's what you have to think about."
Oktoberfest — the days-long festival in Munich that draws millions of people each year — is slated to return in late September after a two-year hiatus due to the COVID-19 pandemic.
Looming over the celebration, however, is a new emergency measure approved by the Council of the European Union on Tuesday that will see its member states cut gas consumption by 15% from August to March.
The voluntary action will allow the EU to save on gas in case Russia cuts off gas to the continent, a threat as European countries continue to sanction Russia over its unprovoked invasion of Ukraine.
Russia is "continuously using energy supplies as a weapon," the council said in a Tuesday statement.
Germany, which is heavily reliant on Russian gas, is feeling the strain of the energy crisis. Cities across the country — including Munich — have been forced to turn to energy-saving initiatives like limiting heating and lighting.
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2022-07-29T13:59:20Z
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Oktoberfest May Be Nixed Over Russian Gas Shortage: German Politician
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How YouTube's flashy poaching of Twitch stars can obscure larger truths about the streaming industry
Lionel Bonaventure
For three years, YouTube Gaming has been snapping up top Twitch stars like Valkyrae and Myth.
The dialog about defections can overshadow Twitch's own signings, and dominance in hours watched.
"There have been a ton of people that re-signed [on Twitch]," a prominent manager said. "You just never heard about it."
After three years of headlines about top Twitch defections to YouTube Gaming, one could easily surmise that the Amazon-owned platform is hemorrhaging creators – or at the very least on the losing end of a brutal PR war.
This month, YouTube Gaming nabbed LilyPichu and Myth, its latest in a string of streamer poaches dating back to 2019, when it first scooped up 100 Thieves members CouRage and Valkyrae in quick succession. Another pair of Twitch notables, DrLupo and TimTheTatman, followed last fall within days of one another, capped off by Ludwig Ahgren in November.
But if a prevailing narrative has emerged online – one in which creators are fleeing Twitch – industry experts said it paints a misleading picture. As a result, Twitch's own signing strategy and dominance in the space can feel lost in the shuffle.
Of course, some resident Twitch stars like Pokimane have renewed on the platform to great fanfare. But departure announcements tend to be far more titillating than renewals.
"You only really hear about [signings] when someone leaves and moves to a different platform," said Brandon Freytag, cofounder of gaming talent firm Loaded, which has facilitated platform deals for Myth, DrLupo, TimTheTatman, and Ahgren. "Over the past six months, there have been a ton of people that re-signed [on Twitch]. You just never heard about it."
As a general rule, Twitch lets creators decide whether they want to announce their deals, a source familiar with the company's strategy told Insider. While splashy reveal videos have become the norm for YouTube, Twitch creators might choose not to announce if it's anticlimactic or strategically unwise, said Jason Krebs, chief business officer of StreamElements, which furnishes various tools for gamers.
"Announcements have frequently been driven by the creators," Krebs said. "There might be less headlines if a creator opts to keep silent to make a smoother transition if they flip platforms later on."
Obscuring a larger truth
The rise of platform deals started in August 2019, when Microsoft paid Ninja an estimated $30 million to leave Twitch for then-nascent Mixer, according to Forbes. Mixer shuttered less than a year later, and Blevins re-signed with Twitch.
That kicked into high gear a bidding war between YouTube Gaming, Facebook Gaming, and Twitch. But intrigue over top stars has obscured a larger truth: Twitch has only continued to solidify its dominance in terms of both total hours watched and hours streamed in recent years.
According to a report from Streamlabs and Stream Hatchet, Twitch accounted for 76% all live gaming watch-time in Q1, with YouTube (14%) and Facebook (10%) making up the difference. Twitch also accounted for 92% of all hours streamed. While watch-time fluctuates from quarter to quarter, Twitch accounted for 65% of watch-time in Q1 of 2020, meaning the platform has been building on its lead.
Given their engaged communities, mid-tier creators can be more beneficial to advertisers than marquee stars.
"While the top creators command the majority of media attention, the large middle class of streamers has the collective power of hours watched that can be beneficial to advertisers," Krebs said.
Accordingly, in terms of resource allocation and public perception, Twitch must tread a line between touting its biggest stars while not slighting its masses.
"You want to sign bigger-named creators, you want to support them," the source familiar with Twitch's strategy said. "But you also want to care about the affiliates and the partners – and those who dream about being affiliates and partners."
It's not always about the money
Another potential misconception in the industry is that YouTube is forking over gobs of money that Twitch can't counter. While many creators have cited finances in their reasoning for making the switch, it's not always the deciding factor, Freytag said.
For top streamers, earning potential can be similar across platforms. There's just different means to a comparable end.
While Twitch is preferable for creators accustomed to the daily grind of going live, YouTube enables creators to build up a VOD business and can afford time for entrepreneurship. Ahgren and TimTheTatman, for instance, have recently hosted live events — a Mogul Money live game show and Texas tailgate party, respectively.
These are the considerations that fuel Loaded's negotiations.
"The majority of the conversation we have with creators is around, 'What does the platform offer? What are the things that I can do with this platform? What are the features that can be created with this platform?'" Freytag said. "That's where we spend the bulk of the time when it comes to the offers. It's not about, 'Here's how much money this is.'"
YouTube did not respond to a request for comment about its strategy for signing gamers.
In addition to entrepreneurship, creators also switch to YouTube in search of a healthier work-life balance. When he made the move in September, TimTheTatman called out the fact that some streamers are chained to their computers for 200 to 250 hours per month.
"When I started, I had no family obligations and I could do a lot of hours," he told Insider at the time. "The reality is, now that I've got my wife and my son, it's hard for me to stream as much as I did beforehand."
More: Twitch YouTube Gaming Talent Gaming
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2022-07-29T15:39:44Z
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Twitch Defections to YouTube Paint Incomplete Picture of Livestreaming
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https://www.businessinsider.com/twitch-defections-to-youtube-paint-incomplete-picture-of-livestreaming-2022-7
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'Honor Society' is a teen rom-com featuring 'Stranger Things' star Gaten Matarazzo — here's how to watch the new Paramount Plus original
Michael Courtney/Awesomeness/Paramount+
How to watch 'Honor Society'
Can I watch 'Honor Society' for free?
What else can I stream on Paramount Plus?
"Honor Society" is the latest original film to premiere on Paramount Plus.
The teen rom-com stars Angourie Rice and Gaten Matarazzo ("Stranger Things").
You can sign up for Paramount Plus starting at $5 a month with ads or $10 a month without ads.
"Honor Society" is now streaming exclusively on Paramount Plus. The coming-of-age comedy stars Gaten Matarazzo ("Strange Things") and Angourie Rice ("Spider-Man: Far From Home").
Rice plays Honor — one of the brightest students in her high school class. She's worked endlessly to achieve her dream of getting into Harvard. With her immaculate grades and extensive extracurriculars, the only thing getting in her way is a little competition from the second-best student in school, Michael (Matarazzo). To clear the path, Honor attempts to sabotage her rival.
Check out the trailer for 'Honor Society' trailer
The movie also features "Superbad" and "Kick Ass" star Christopher Mintz-Plasse as counselor Calvin. Avery Konrad, Armani Jackson, and Kerry Butler round out the cast. "Honor Society" marks director Oran Zegman's feature film-debut.
As of writing, "Honor Society" has yet to receive a Rotten Tomatoes score, but early reactions are good, with all four reviews from critics so far earning fresh marks.
You can now watch "Honor Society" on Paramount Plus. The movie is a Paramount Plus original, so you won't find it on any other subscription services.
Ad-supported Paramount Plus costs $5 a month, and the ad-free version is $10 a month. You can save 16% by signing up for an annual plan versus monthly payments. In addition to "Honor Society," Paramount Plus is the home of all "Star Trek" series and films, and it also features thousands of other shows, original series, and movies.
Paramount Plus Essential Monthly Plan (ad-supported)
$4.99 from Paramount
Paramount Plus Premium Monthly Plan (ad-free)
You can stream the Paramount Plus app on most smart TVs, Android and iPhone mobile devices, Fire TV, Apple TV, Playstation and Xbox video game consoles, and Roku products. You can find a full list of supported devices on the Paramount Plus website.
If you're eager to watch "Honor Society" but not sure about signing up for another streaming service, you can watch the movie for free with a trial to Paramount Plus.
New members can get a seven-day trial to the ad-free or ad-supported plan. If you don't cancel before that trial period ends you will be automatically enrolled in the tier you selected. But, seven days is plenty of time to zip through "Honor Society" and any other shows or films on Paramount Plus you've been curious to check out.
What other original movies and series can I stream on Paramount Plus?
Paramount Plus has an extensive catalog including over 2,500 films and over 30,000 television series episodes ready for you to watch. You can find a full rundown in our guide to Paramount Plus movies and shows, and we've highlighted a few popular titles below:
Paramount Plus Original Films
"Jerry and Marge Go Large"
"Beavis and Butt-Head Do The Universe"
"Paranormal Activity: Next of Kin"
"Three Months"
"The In Between"
Paramount Plus Original Series
"The Offer"
"Mayor of Kingstown"
"Star Trek Picard"
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2022-07-29T17:27:27Z
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How to Watch 'Honor Society' — Now Streaming on Paramount Plus
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HBO wants 'single-season thrillers,' 'elevated' YA, and workplace comedies from TV creators, according to a leaked Hollywood agency document
Roman, Shiv, and Tom on "Succession."
With "Euphoria" and "Succession," HBO continues to be the destination for prestige television.
Sister brand HBO Max has made a mark with "Hacks" and "The Flight Attendant."
Here's what TV agents say both platforms are looking for next.
With major hits like "Euphoria" and "Succession," plus hotly anticipated titles such as "Game of Thrones" spinoff "House of the Dragon," HBO continues to be the place for prestige television. The premium cable network earned 108 Emmy nominations, besting Netflix, and "Succession" ranked as the most nominated program on the ballot, followed closely by "The White Lotus."
Its sister brand, the streamer HBO Max, also did well, racking up 32 noms for its original series, with Jean Smart comedy "Hacks" accounting for 17 of those. Discovery's acquisition of HBO parent WarnerMedia, forming Warner Bros. Discovery, has prompted questions about how the new corporate ownership could ultimately impact programming choices at both the streamer and the cabler. So far, one significant component hasn't changed: programming chief Casey Bloys recently renewed his contract with the company for another five years.
Despite two TV agents telling Insider that HBO and HBO Max seemed to have paused buying until the fall as a result of the merger, an HBO spokesperson said that there has been no such freeze, and that the programming teams were continuing their work as usual. Kate Winslet limited series "The Palace," for instance, was just announced this week, one of two new HBO projects she is attached to.
So for now, at least, what are HBO and HBO Max currently looking for in a TV series? According to TV reps and an internal agency document shared with Insider, HBO's mandate this summer hasn't changed much.
"They will always feel that if you could see it on any other network, it's not HBO," the doc says.
HBO and HBO Max are looking for 'premium character shows'
The appetite at both platforms, according to one scripted TV rep at a major talent agency, is for "premium character shows — anything you'd get a movie star to star in."
The programming teams at HBO and HBO Max are separate, with drama executives outnumbering comedy execs at both places, which is unsurprising given the current demand for comedy series at streaming services.
HBO, which has never had any problem attracting top-tier talent, is perhaps predictably looking for "boundary pushing" dramas, and shows that explore "love, marriage, sex and sexuality," according to the doc, which noted that the cabler wants contemporary family crime dramas, stories about family, and female-skewing projects, in particular "single-season thrillers that are cast-able with high-end actresses." (Despite the doc noting that HBO does not want projects that are similar to shows it has already aired, those descriptors sound an awful lot like recent hit "Mare of Easttown," also starring Winslet.)
Projects that explore other cultures and offer up diverse voices, as well as "elevated" young adult material, are welcome. On the comedy side, the network has signaled that it is looking for workplace comedies as well as "Veep" and "Silicon Valley" ensemble series.
The agent noted that HBO wants to focus on servicing the overall deals it has struck with creators. Still, that doesn't mean those producers and writers will find a place on the slate.
"They killed all the J.J. Abrams shows, which is crazy, because there were a lot of them — expensive genre shows," said the agent about the "Lost" co-creator, whose production company Bad Robot has an overall with WarnerMedia.
Abrams' sci-fi drama "Demimonde," which landed a straight-to-series order back in 2018, was scrapped in June after its reported $200 million-range budget — more than "House of the Dragon" — went under the microscope under new Warner Bros. Discovery chief David Zaslav, according to the Hollywood Reporter. A year before that, HBO Max had passed on Abrams' "Overlook," an offshoot series inspired by "The Shining," the outlet said.
While former WarnerMedia boss Jason Kilar was enthusiastic about "Game of Thrones" and its spinoffs, the agent said it is not yet clear what Zaslav's approach will be to programming at Warner properties like HBO.
HBO Max, the 'premium populist' brand
The HBO Max brand is newer and less well-defined than flagship HBO, but has found fans from original series such as "The Flight Attendant," "Hacks," and Taika Watiti's "Our Flag Means Death."
According to the agency document, the streamer is looking for female-driven thrillers in the vein of the Katie Cuoco-led "Flight Attendant," or limited series thrillers such as "The Staircase." The doc also points to mystery "Knives Out" and young adult series "Never Have I Ever" as good examples of comedies it would carry.
The agent called HBO Max's programming appetite "premium populist," with a broader audience than its premium cabler counterpart.
NOW WATCH: The 14 most iconic scenes from 'Game of Thrones'
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2022-07-29T17:27:33Z
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What HBO and HBO Max Want From TV Creators, Per Hollywood Agents
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https://www.businessinsider.com/hbo-hbo-max-want-from-tv-creators-hollywood-agents-2022-7
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4 expensive problems you're sure to miss if you waive your home inspection, according to realtors
In hot real estate markets, some buyers are waiving home inspections to improve their chances.
But there are problems only a home inspector can find, like hidden mold and foundation defects.
An inspector may also find an outdated septic system or problems with the roof.
Compare homeowners insurance quotes with Policygenius.
Over the last few months, almost a dozen of my friends have decided to say goodbye to renting and become first-time homeowners. As someone who doesn't plan on following in their footsteps anytime soon (I enjoy the flexibility of renting too much), it's been interesting to live vicariously through them as they search for the homes of their dreams.
Realtor.com expects home sales to grow 6.6% this year, and forecasts not only continued limited inventory but prices rising by 2.9%. Depending on where you're trying to buy a home, it can feel competitive, and if you don't put in an offer fast enough, you might not even stand a chance.
Recently, three of my friends were so eager to snag homes they loved that they put in offers and waived their home inspections to make their bids more attractive.
I wondered if waiving a home inspection was a risky financial move, so I asked real estate experts to share the most expensive issues that can pop up if a person decides to go that route. Here's what they had to say.
1. Structural issues
It's easy to fall in love with a home just by doing a walkthrough, but according to Michael Simons, a US real estate agent who's now based in Costa Rica, you might miss something big and costly.
"If you waive the home inspection, it may cost you tens or even hundreds of thousands of dollars to fix a purchased property with a faulty foundation or structural issues," says Simons.
That's because structural defects are not only big safety issues but are not obvious to an average person.
"Homebuyers can have serious regrets when they later need to spend at least $10,000 for foundation repairs, especially ones requiring hydraulic jacking," says Simons.
2. Outdated septic systems
Another major repair that might not be so obvious can sometimes be one found in older homes: outdated septic systems that no longer comply with building codes.
"Unfortunately, these details only came up in home inspection reports, so homebuyers who waive them may have to shoulder the hefty price tag of installing a new septic system replacement," says Simons.
The costs of septic replacement can be higher than you might think, especially if there is not enough space and an engineered system is required.
3. Roof problems
Without a home inspection, Simons says a homebuyer likely won't know much about the condition of the roof.
"Home inspection reports can help homebuyers prevent additional repair expenses on roofs already at the end of their serviceable life," says Simons.
He says these inspections matter because a severe roof defect can cost as much as $10,000 to repair or replace in some cases.
4. Mold issues
While you might feel confident you know the house well because you visited it many times, Michigan real estate agent Jason Gelios says a costly mistake he's seen when people don't do a home inspection is mold.
"Mold is an issue that could peek its head in areas where a homebuyer might not look," says Gelios. "For example, not having a home inspector comb through the home, inside and out, can find the homebuyer learning of a mold issue down the road."
Over the years, Geilos has seen mold in areas such as crawl spaces and attics, spots many homebuyers won't look when they are considering buying a property.
PERSONAL FINANCE A home inspection is one of the last steps in the home-buying process, to flag any issues before it's too late
More: Home Inspection Home Buyers Buying A Home Personal Finance Insider
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2022-07-29T17:27:51Z
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4 Expensive Problems You'll Miss If You Waive a Home Inspection
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https://www.businessinsider.com/personal-finance/expensive-problems-home-inspection-2022-7
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https://www.businessinsider.com/personal-finance/expensive-problems-home-inspection-2022-7
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The Fed is trying to get inflation under control
What the Fed rate hike means for mortgages
What does the Fed rate hike mean for homebuyers and sellers?
The latest Fed rate hike won't impact mortgage rates directly, but investor expectations might
The Federal Reserve raised the federal funds rate by 75 basis points in June and July — a larger than usual increase.
The Federal Reserve's recent rate hikes won't directly influence mortgage rates, but their effect on the economy could push them up or down.
Mortgage rates are more directly impacted by investor demand for mortgage-backed securities.
If the Fed can tame inflation, mortgage rates may trend down in the coming years.
Inflation has Americans spending more in all areas of their budgets, including their mortgages.
Mortgage rates have increased over 2 percentage points so far in 2022. The average homebuyer getting a mortgage today is taking on a monthly mortgage payment that's likely hundreds of dollars higher than what they'd be paying if they purchased when mortgage rates were at historic lows in 2021.
As inflation has grown, the Federal Reserve has been acting more aggressively to get it under control. The main way it does this is by increasing the federal funds rate, most recently by 0.75 percentage points in late July.
For homebuyers, hearing that the Fed is raising rates can be alarming. But while the Fed does often have some impact on whether mortgage rates go up or down, the central bank's rate and mortgage rates aren't as closely tied together as some might think.
The federal funds rate is a tool that the Fed uses to influence inflation. In June, inflation reached a 41-year high. Inflation that gets too high is bad for the economy, so the Fed raises rates to increase the cost of borrowing and slow economic growth.
"The Fed needs to cool inflation, and getting loan products to cost more slows down spending," says Shashank Shekhar, founder and CEO of InstaMortgage. "So an abrupt spike is the Fed's way of saying 'Okay, we need to slow down before we can speed things back up.'"
What the Fed rate hike means for mortgage rates
When the federal funds rate goes up, short-term consumer rates typically trend up, too. This includes things like credit cards and auto loans.
But the Fed's impact on mortgage rates is less direct, and has to do more with the economic conditions it's addressing. In the days leading up to the Fed's July meeting, mortgage rates actually trended down, even though most investors were expecting another 75-basis-point, or 0.75-percentage-point, hike.
Investor expectations around Fed policy can push mortgage rates up or down
After a consumer closes on a mortgage, it's sold and packaged into a type of bond called a mortgage-backed security (MBS). Investors who buy MBSs watch the Fed's actions closely and try to predict how those actions might impact the economy, which in turn impacts their investments.
Right now, inflation is high, eroding the returns on their investments. Because of this, lenders have to raise rates to make their mortgages more attractive to investors. So if investors believe that the Fed won't be able to tame inflation, mortgage rates might trend up.
If the Fed's recent rate hikes are successful in cooling the economy, mortgage rates may remain at their current levels or come down slightly. But if the central bank is unsuccessful, the cost of getting a mortgage could continue to rise, along with other goods and services. If the economy cools too much and we enter a recession, rates could drop.
In its July forecast, the Mortgage Bankers Association predicted that 30-year fixed mortgage rates would remain above 5% for the rest of 2022, but that they'd start to slowly come down and reach 4.8% by the end of 2023.
As mortgage rates have risen, more would-be homebuyers have been pushed out of the market due to a lack of affordability. This has reduced buyer demand and slowed the housing market somewhat.
"The fewer homes being purchased today will finally open up some much needed inventory and lower home prices in key markets so people can buy," Shekhar says. "And people will buy, even at a higher rate, if the price is right, because they know they can refinance to a better rate when the Fed begins to lower interest rates again once inflation is back under control."
If you're ready to start the homebuying process, you shouldn't necessarily let the current economic conditions stop you. Rates are high, but if you're willing to reevaluate your budget to account for that, you may still be able to find a home that suits your needs.
PERSONAL FINANCE The minimum credit score, down payment, and debt levels you need to qualify for each type of mortgage
More: mortgage rates Mortgages Federal Reserve federal funds rate
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2022-07-29T17:27:57Z
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What Does the Latest Fed Rate Hike Mean for Mortgage Rates?
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https://www.businessinsider.com/personal-finance/how-fed-rate-hikes-impact-mortgage-rates-2022-7
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https://www.businessinsider.com/personal-finance/how-fed-rate-hikes-impact-mortgage-rates-2022-7
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I quit Amazon cold turkey to save money during inflation, but it hasn't helped my credit card bill one bit
The author, Olivia Christensen, stirring a pot of pasta she did not buy on Amazon.
My husband and I used to treat out Amazon credit card like it was separate from our regular spending.
We'd easily spend $500 a month or more on Amazon, often on stuff we didn't need.
But with inflation, the bare necessities cost a fortune. So we quit Amazon cold turkey — and we're not saving a dime.
"Oh, don't worry about it. I'll grab it later."
My friend looked down at the pile of Amazon purchases by the front door before gingerly stepping into my foyer.
"Are you sure?" He asked.
"Totally!" I answered, waving off the hundreds of dollars worth of merchandise. "I already know what's in all the boxes. No emergencies."
What I didn't mention is that between finding a box cutter, putting the new things away, breaking down the boxes, and hauling them out to the recycling bin, going through the eight separate impulse purchases my husband and I had made over the course of the last few days felt like a chore. And it was a chore I'd been putting off all afternoon.
I knew my Amazon boxes were out there, but with friends coming over for dinner, I decided that braising the beef and sweeping the floors was a more valuable and less tedious way to spend my time.
My shifting relationship with Amazon
I hadn't always felt this way about Amazon. There was a time when seeing the Amazon truck barrel past my house without stopping filled me with disappointment. If Sandra down the street was getting an Amazon-induced dopamine fix, why shouldn't I?
The shift from "exciting treat" to "more crap I have to deal with" came sometime during the blurred days of the pandemic. We bought a new, larger home, which meant filling it up during a time when getting out for shopping trips still felt like an unnecessary health risk. Then an Amazon warehouse moved into town, which meant I wouldn't even have to wait two days to have my purchases delivered to my front door anymore. Simply put, Amazon became too easy.
I'd signed up for the Amazon credit card years before when the 20% discount incentive had maximum impact on an expensive purchase. We paid off the card every month, so it was never a problem, but it did make our Amazon budget feel separate from the rest of our household spending, even though it was all coming from the same account.
Between Amazon being so convenient and the payments feeling not quite real, my husband and I both got into the habit of turning our every passing fancy (i.e. "We should get enough goggles for everyone to wear at the pool party!") into real purchases.
If I felt a sudden craving for Mafaldine pasta after having it at a restaurant, I didn't scour the grocery stores or google recipes, I hopped onto Amazon, ignored the fact that $13 is a relatively expensive price for a pound of dried noodles, and clicked "Buy Now." Because while $13 at my local market would seem pricey in comparison to the $2 box of spaghetti, on Amazon, $13 was one of my more modest purchases.
Inflation was the real turning point
And then inflation hit.
Having given up on budgets years ago as a worthy but ultimately futile goal, my husband simply couldn't understand where all of our money was going. Since I am the point person for all of our day-to-day spending — from groceries to birthday presents — I struggled to communicate to him how expensive the most basic of items had become. Partly because I, too, was having a hard time wrapping my head around $5 eggs and $10 bacon and the impact these prices were having on our bank account.
But despite our confusion, inflation kept happening to us and our bank account showed it. When I thought about tightening up our spending, I went over our wants versus our needs in my mind.
We needed groceries and our growing children needed clothes. Where could we cut back? Then I realized that all of our unnecessary purchases, though they felt necessary in the impulsive moments we'd made them, were sitting on our front porch in boxes adorned with smiling arrows. If we really needed any of that stuff, why did it usually take me days to unpack it?
We finally dropped Amazon
So, we stopped our Amazon habit cold turkey. Considering our Amazon bill was $500 on a good month and somewhere around $2,000 during big months like December and May, the savings were as quick as they were depressing.
They were depressing because they were gobbled up immediately by inflation, but at least we were no longer spending more than we made because of our mindless propensity to hit Amazon's "Buy Now" button. Instead of watching debt materialize from what felt like nowhere, we were able to pay for a life that had gotten more expensive nearly overnight.
Perhaps the most humbling but encouraging outcome of our decision to quit Amazon is that it has really made no difference in our lives.
Instead of hopping on Amazon to buy the perfect black tank top for the concert I'm attending over the weekend, I search my closet, and it turns out that I already have several black tank tops that will work for the occasion. When I'm craving Mafaldine pasta, I go to the grocery store and buy a bag of campanelle or fettuccine instead. It still hits the spot. And when we get the wild hair to provide all of our 20 party guests with a pair of goggles, we simply don't, and everyone still has fun.
Inflation has been pretty soul-crushing. The Amazon-styled lives we were living last year, with money leftover, were inarguably more fun than our lives now where we make more money, spend very little on unnecessary purchases, and still struggle to pay off our credit card at the end of the month.
But at the same time, getting rid of Amazon and all of the boxes that came with it has made our lives less cluttered, less wasteful, and less expensive. Plus, it eliminated a chore: I no longer have to spend a half-hour a day dealing with all the packages littering our front porch.
PERSONAL FINANCE I asked financial advisors if I should keep investing during inflation, and they said yes with key 3 changes
PERSONAL FINANCE A lot of stores have too much stock right now and are offering deals under the radar. Here's how you can cash in.
More: Amazon Online Shopping Inflation Personal Finance Insider
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2022-07-29T17:28:03Z
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I Quit Amazon Cold Turkey to Survive Inflation, but It Hasn't Helped
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https://www.businessinsider.com/personal-finance/quit-amazon-inflation-hasnt-helped-2022-7
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https://www.businessinsider.com/personal-finance/quit-amazon-inflation-hasnt-helped-2022-7
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Is Wealthsimple right for you?
Wealthsimple vs. Wealthfront
Wealthsimple vs. Vanguard Personal Advisor Services
Ways to invest with Wealthsimple
Wealthsimple: Is it trustworthy?
Wealthsimple — Frequently Asked Questions (FAQ)
Wealthsimple review: Minimum-free stocks, ETFs, and crypto for Canadian investors
Wealthsimple offers DIY trading, automated investing, and much more.
*Note: Betterment acquired the US side of Wealthsimple's business in 2021. The remaining portion functions as a Canadian entity.
Bottom line: Wealthsimple is an investment platform well suited for all types of Canadian investors. It offers low-cost self-directed trading and managed portfolios, as well as stocks, ETFs, and options. The platform's portfolio selection also features socially responsible portfolios and Halal portfolios, so it could be ideal for passive investors who want a variety of options.
Wealthsimple is a Canadian investment platform offering self-directed trading, automated investing, spending perks, tax filing services, and much more. Its investment selection currently includes stocks, ETFs, and cryptocurrencies.
The platform formerly offered its services to US clients, but it sold its US division to robo-advisor Betterment in 2021. Wealthsimple is available on both iOS and Android devices.
Stock and ETFs: $0 Basic plan but $10/per month for Plus plan
$0 cryptocurrencies;
Managed portfolios: $1 Basic plan, $100,000 Black plan, and $500,000 Generation plan
$10/per month for the Plus plan
Up to 2% spread for crypto
0.50% for Basic managed portfolios
0.40% for Black and Generation managed portfolios
Stocks, ETFs, and cryptocurrencies
Wealthsimple and Wealthfront both offer automated investing, but Wealthsimple is the better choice for individuals who want to trade on their own. With Wealthsimple, you can practice DIY trading for stocks, ETFs, and cryptocurrencies.
Like Wealthsimple, Wealthfront offers both ETFs and exposure to crypto—through its two crypto trusts (Grayscale Bitcoin Trust (GBTC) and Grayscale Ethereum Trust (ETHE). But you won't be able to place you're own trades; it's strictly automated. Wealthfront, however, is the better option for hands-off investors who want lower fees.
Stock and ETFs: $0 Basic plan but $10/per month Plus plan; $0 cryptocurrencies;
Wealthsimple and Vanguard both serve many different types of investors. But when it comes to Vanguard's advisor-managed, automated account, Vanguard Personal Advisor Services, Wealthsimple offers lower entry fees.
Both Vanguard Personal Advisor Services and its other automated investing account, Vanguard Digital Advisor, have higher minimum requirements — $50,000 and $3,000, respectively — than Wealthsimple's Basic managed portfolio (this option only requires a minimum of $1).
Wealthsimple is a great option for versatile investors since it offers both self-directed trading and automated investing. The hybrid platform currently gives investors the choice between two separate plans for stock and ETF trading: the Basic plan (which costs $0 per month) and the Plus plan ($10 per month). It's important to note the differences between the two:
Basic plan: This account gives you access to perks like fractional share trading, instant deposits of $1,500, real time prices, unlimited price alerts, commission-free and account minimum-free investing, tax-free savings accounts (TFSAs), taxable accounts, and registered retirement savings plans (RRSPs). (Note: TFSAs and RRSPs apply solely to Canadian residents).
Plus plan: These users get access to all of the features of the Basic plan. The only difference is that Plus subscribers don't have to worry about foreign exchange rates for US trades, and they can instantly deposit $5,000.
Unlike the Basic plan, the Plus plan lets you hold USD in your account(s), so you can trade US stocks without running into exchange rates. For the Basic plan, there's a 1.5% currency conversion fee when you convert from CAD to USD (or vice versa).
As for its investments, Wealthsimple offers thousands of stocks and ETFs that investors can find on both US and Canadian exchanges.
Wealthsimple Crypto doesn't have any minimums, nor does it charge any fees to make deposits or withdrawals. Though it doesn't offer as many crypto assets as popular exchanges like Coinbase and Kraken (both offer 100+ coins), it still has an expansive selection of cryptocurrencies to choose from. Its available coins include bitcoin, dogecoin, ethereum, ahd cardano.
Plus, it lets users take advantage of limit orders, which let you set the price at which you want a sell or buy order to execute. With platforms like Coinbase, you have to use its more advanced account, Coinbase Pro, to utilize limit orders. The fact that you can implement limit orders with Wealthsimple's most basic crypto services may be appealing for crypto traders in search of order flexibility.
You will run into fees for crypto transactions, though. It has a spread fee that may range up to 2%.
When it comes to custody, Wealthsimple holds most of its users' assets in offline storage. It uses multiple custodial partners — including Gemini Trust Company LLC — for this, each of which offers more than $200 million in insurance. It says it stores the remaining assets in digital crypto wallets and uses Coincover to protect those coins as well.
Wealthsimple is limited, however, when it comes to transferring crypto in and out of your account. If you want to deposit coins stored through an external wallet, you can only do so for 23 coins. The limit on those 23 coins also applies to users who want to transfer assets out of their account.
Managed portfolios
Wealthsimple's automated portfolios are ideal for investors who want to sit back and watch their investments grow without making day-to-day trading decisions for the account. All you've got to do is come prepared with a sum of money to invest, have a list of your short-term and/or long-term goals, set an investing time horizon and risk tolerance, and Wealthsimple takes care of the rest.
Like many robo-advisors and automated accounts, its managed portfolios offer features like dividend reinvesting, portfolio rebalancing, and automatic deposits. Plus, it offers two unique portfolio options:
Socially responsible portfolios: These portfolios are great for investors who want to positively impact the world on an environmental and social level. As for its asset allocation, it invests in ETFs of both socially responsible companies in globally developed markets and socially responsible companies in North America. Wealthsimple says it also uses bonds and gold to hedge against the equity risk associated with the ETFs in your portfolio.
Halal portfolios: This option could be a great choice for those who'd like to invest in a way that honors Islamic law. Unlike the socially responsible portfolios, its asset mix consists of Shariah-compliant ETFs in globally developed markets, gold, and non-interest bearing cash. It says it uses a third-party committee of Shariah scholars to screen each investment.
Another highlight of Wealthsimple's socially responsible portfolios is that it removes the top 25% carbon emitters in industries it selects for ETFs. In addition, it ensures that each company in its fund has at least three women on its board of directors.
As for fees, it offers three separate pricing plans: the Basic plan, the Black plan, and the Generation plan. The basic plan — which includes the option to ask portfolio managers questions — has a $1 minimum and 0.5% annual fee. With the Black plan, you'll incur a $100,000 minimum and 0.4% advisory fee, but you'll gain access to things like estate planning and health perks.
Finally, the Generation plan has a $500,000 minimum and 0.40% fee, but you'll gain exposure to multiple experts who can tailor your portfolio according to your needs. Its management fees are high compared to other automated platforms like Betterment, Wealthfront, and Fidelity Go.
The Better Business Bureau gives Wealthsimple Financial Inc. an F rating. Ratings typically range from A+ to F and reflect the BBB's opinion of how well a company interacts with its clients.
However, several other factors can also determine a company's rating. These include customer complaint history, type of business, time in business, licensing and government actions, and advertising issues. The bureau says its rating for Wealthsimple stems from the fact that it received 17 complaints and failed to respond to 12 of them.
Its BBB profile shows that it closed 17 complaints in the last three years and six complaints in the last 12 months.
Is Wealthsimple good for beginners?
Wealthsimple is a competitive option both for beginners and experienced investors or traders in search of low fees, copious investment options, and a simple user interface. The platform also offers a library on all things personal finance, and it provides an income tax calculator to simplify the tax process.
Can I do day trading on Wealthsimple?
Yes. Wealthsimple doesn't encourage this type of trading, but it allows it.
Can I trust Wealthsimple Cash?
Yes. With the Wealthsimple spending account, you get coverage of up to $100,000 through the Canadian Deposit Insurance Corporation (CDIC), and you can earn rewards of 1% back in cash, stocks, or crypto. You just have to make purchases using your Wealthsimple Visa card.
ETFs: These funds usually contain a diversified mix of stocks, bonds, and commodities. You can invest in two types of ETFs: index-based ETFs and actively managed ETFs.
Mutual funds: Like ETFs, mutual funds consist of several investment types, but they're usually overseen by professional money managers.
Brokerage account: Offered by investment platforms and broker-dealers, brokerage accounts let you invest in stocks, ETFs, options, and other asset types.
PERSONAL FINANCE What is a crypto wallet? Understanding the software that allows you to store and transfer crypto securely
More: Wealthsimple Vanguard Personal Advisor Services Wealthfront Investing
Cryptocurrenies
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2022-07-29T17:28:10Z
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Wealthsimple Review: Pros, Cons, and Who Should Set up an Account
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https://www.businessinsider.com/personal-finance/wealthsimple-review
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https://www.businessinsider.com/personal-finance/wealthsimple-review
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A luxury campground chain using Airstream trailers as hotel rooms is doubling its properties in 2023.
Autocamp will open four sites in North Carolina, Texas, California, and Utah to round out 2023 with nine open properties.
Autocamp's bookings boomed throughout 2022 as travelers have flocked to unique accommodations.
Out with the conventional hotel, in with the unique accommodations.
Luxury campground chain Autocamp has boomed in popularity as travelers have continued flocking to the brand's unique Airstream trailer-based hotel rooms.
And now, it's riding this wave of popularity with plans to open four additional locations in 2023, which will nearly double the number of its properties.
Autocamp currently operates five locations in Cape Cod, Massachusetts, Catskills, New York, and California's Joshua Tree, Russian River, and Yosemite.
Autocamp Yosemite's Airstream suites.
But by the end of next year, this portfolio will grow to include four additional properties in Asheville, North Carolina; Hill Country, Texas …
… Zion National Park in Utah; and Sequoia and Kings Canyon National Park in California.
Zion National Park has some incredible views.
Autocamp's decision to open a property near Utah and California's famous national parks should come as no surprise.
scottiebumich/Getty Images
Its two properties near Yosemite and Joshua Tree have seen plenty of booking success since their openings.
The Yosemite location "exceeded expectations" in the summer of 2021 as the property found itself trying to keep up with demand, Jason Brannan, a general manager at AutoCamp, told Insider in 2021.
Autocamp Yosemite's clubhouse.
And Autocamp Joshua Tree — which opened this year — has already seen weekends with full occupancy and weekdays with "really great occupancy" despite being one of the brand's newest locations, Taylor Davis, Autocamp's vice president of brand marketing, told Insider in May.
Doubling a real estate portfolio in one year may seem like a hefty feat, but travelers can't get enough of Autocamp.
Conventional hotel accommodations are out of style now: Since the beginning of COVID-19, people have been flocking to untraditional accommodations for their vacations, whether it be tiny homes or "glamping" campgrounds like Autocamp.
As a result, this year, Autocamp has been experiencing a "huge influx" of bookings into the fall, Julie Saunders, Autocamp's CMO, told Insider in an email statement.
Autocamp previously hinted at expansion plans following its strong performance. And now, it'll be venturing into new markets and states, including its first in the South.
Autocamp will stagger its upcoming openings throughout 2023.
The first 16-acre Autocamp Zion property will begin welcoming guests in spring 2023.
HKS and Narrative Design Studio
After, Autocamp Asheville — the smallest of the four upcoming locations — will launch midway through the year …
… followed by AutoCamp Hill Country and Autocamp Sequoia.
Hill Country will be Autocamp's first venture into the South and its largest property, with 120 accommodations, almost twice as many as the upcoming location in Asheville.
And it wouldn't be Autocamp without its most Instagrammable accommodations: Airstream trailers that have been converted into luxurious hotel rooms on wheels.
These Airstreams are Autocamp's most popular "hotel rooms" and evoke a feeling of nostalgia for travelers who grew up going on Airstream road trips …
… although Autocamp's trailers probably look nothing like your grandparents' trailers.
Instead of refurbishing old models, Autocamp worked with its investor Airstream to create a custom "silver bullet" model for the glamping company.
Unlike Airstream's typical products, these Autocamp trailers were designed to be stationary to accommodate heavier accessories like a large water heater.
Like I said in my review of Autocamp Joshua Tree in May and Autocamp Yosemite in the summer of 2021, these Airstream trailers felt more luxurious than any hotel room I've been in.
And it's much more fun opening the front door of my "hotel room" to views of nature instead of a dingy hotel hallway.
Inside, there's a window-lined bedroom with a plush bed and TV …
… a joint living room and kitchen with all the amenities needed to prepare dinner using the adjacent outdoor fire pit …
… and a bathroom with tiled walls and showers …
… creating a trailer that felt more like a plush extended-stay hotel than a conventional trailer.
These Airstreams are the cornerstone of Autocamp's branding and a big reason travelers have been flocking to the glamping sites.
"Airstream is what the brand is about," Brannan previously said.
But if large trailers aren't your thing, the four upcoming locations will also have accommodations like tiny homes, smaller Airstream trailers, and canvas tents.
Autocamp Yosemite's tents.
Besides a place to sleep at night, the properties will also have plenty of on-site activities and community spaces.
No Autocamp would be complete without a pool and "Clubhouse," which has the check-in counter, general store, and indoor lounge.
And depending on the location, some of the upcoming properties will also have a bar, communal fire pit, event space, and direct access to nearby rivers.
Autocamp Yosemite's pool and clubhouse.
These communal spaces, specifically the pool and Clubhouse, kept me at the Yosemite and Joshua Tree property longer than I would've lingered around a traditional hotel.
Together, the Airstream nostalgia and the nooks of communal spaces make Autocamp feel more like a destination and a fun summer camp than a hotel property.
Autocamp Yosemite's hammock.
And this chance to experience a piece of childhood at a luxurious property has really resonated with people in search of unconventional accommodations, allowing Autocamp to nearly double its footprint across the US.
“It’s clear travelers are eager to spend time outdoors and find a unique alternative to traditional camping now more than ever,” Saunders said.
More: AutoCamp Airstream trailer RV
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2022-07-29T17:28:16Z
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Photos: Luxury Campground With Airstream Hotel Rooms Doubling Properties
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https://www.businessinsider.com/photos-luxury-campground-airstream-hotel-rooms-doubling-properties-2022-7
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Ukrainian officials condemned a video that appears to show Russian soldiers castrating a captive.
Experts largely concurred that the footage is plausible and shows a man being mutilated.
A Ukrainian MP, Inna Sovsun, told Insider this was one of just "hundreds" of cases.
Ukrainian officials condemned a video that appears to show the castration of a Ukrainian captive by Russian soldiers.
Ukrainian MP Inna Sovsun, who said her Twitter account was briefly suspended when she shared it, wrote: "This is what happens. And deleting the video won't change that. People should know what #Russia is doing!"
She told Insider: "I wish I could turn back time and not see this video. But we knew that this was happening in the occupied territories. The Russian military rapes, mutilates, and kills Ukrainians, both civilians and POWs."
"That is why we are now asking the world to provide offensive weapons," she said. "We saw one case on video, but there are hundreds, or I'm afraid to assume thousands already."
Insider has reviewed the footage, an undated 95-second video appearing to show the mutilation of a man wearing Ukrainian army gear. According to The Times of London, it first emerged on pro-Russian Telegram accounts. Insider is not reproducing or linking to the video due to its graphic nature.
Mykhailo Podolyak, an aide to President Volodymyr Zelenskyy, also tweeted about the video and said those responsible would be made to pay.
He wrote: "RF [Russian Federation] propagandists delightedly showed how a group of ru-tyrants crippled [a Ukrainian] captive ... we will identify and get to each of you."
—Михайло Подоляк (@Podolyak_M) July 29, 2022
Aric Toler, a researcher for Bellingcat, told The Times of London: "unfortunately the video is genuine."
The identities of the victim and perpetrators is not clear. Nor is a location or date.
In the video, apparently filmed on a cellphone, a man in Ukrainian uniform is bound by his feet and is pushed face down on the ground.
The seat of his pants have been cut away, showing his underwear. A man in a Russian army uniform, speaking Russian, stomps on the captive's head, and proceeds to cut open the underwear with a box cutter. In several stages he removes a chunk of flesh that, when held up to the camera, resemble male genitals.
A white car can be seen in the background marked with the "Z" insignia used by the Russian military.
Some details in the video provide a tentative match with a Russian soldier filmed in two previous clips from the invasion.
Both were published online in late June, both at an industrial area in Lisichansk, a city in the eastern region of Luhansk. Lisichansk was the last city in the region to fall under Russian control, in early July, according to Al-Jazeera.
The first video, uploaded to YouTube on June 27, appears to be from Russian state media agency RIA Novosti, while the second video was shared on the same day by the pro-Russian Telegram channel "War Chronicle."
In all three videos, a soldier wears a distinctive dark, brimmed hat decorated with white beads.
The soldier in the RIA Novosti video also wears a two-strand black bracelet with a silver-colored metal clasp on his left wrist — similar to a bracelet briefly seen worn on the same wrist in the torture video.
Toler noted on Twitter that the hat is not difficult to buy online, but said the bracelet made it "a pretty open and shut match."
Ukraine's Ministry of Foreign Affairs issued a statement on Friday in apparent response to the video, condemning "particularly horrible cases of torture" and "inhuman treatment" by Russia.
It also called for an investigation by the International Criminal Court, while the Prosecutor General's office announced it has "initiated criminal proceedings" in response.
Ukrainian journalist Olga Tokariuk, speaking in a Twitter Space on Friday, said the video had horrified Ukrainians and became a major topic of conversation when it emerged.
It has also prompted international outrage. Senior Policy Advisor Paul Massaro, in seeming reference to the video, tweeted that such crimes represent "unmitigated evil."
—Paul Massaro (@apmassaro3) July 29, 2022
Australian former Major General Mick Ryan tweeted that the video shows that "the Russian Army is professionally corrupt & morally bankrupt." He also noted that torture of captured combatants violates the Geneva Conventions.
More: russia ukraine War Crimes Torture Luhansk
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2022-07-29T17:28:22Z
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Ukraine: Prisoner Castration Video Sparks Horrified Reaction
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https://www.businessinsider.com/ukraine-prisoner-castration-video-sparks-horrified-reaction-2022-7
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https://www.businessinsider.com/ukraine-prisoner-castration-video-sparks-horrified-reaction-2022-7
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Hershey CEO: Expect a Halloween candy shortage this year, as candy makers struggle to meet demand amid labor and supply issues
Children receive treats by candy chutes while trick-or-treating for Halloween in Woodlawn Heights on October 31, 2020 in New York City.
Hershey CEO Michelle Buck said there will likely be a shortage of Halloween candy this year.
The company was not able to ramp up seasonal production due to supply and labor constraints.
Halloween may be more than three months away, but top candy makers already are anticipating a shortage of the seasonal treats.
Hershey CEO Michelle Buck told investors on Thursday that the company will "not be able to fully meet consumer demand due to capacity constraints" heading into the Halloween and winter holidays. Due to limited resources, Buck said Hershey prioritized balancing its production "to improve everyday on-shelf availability" rather than ramping up seasonal manufacturing.
"We had opportunity to deliver more Halloween, but we weren't able to supply that," Buck said. "And we were really producing. We began producing Halloween back in the spring. And that's really when we needed to make these key decisions on what we were going to produce, so tough trade-out to make."
Americans spent a record-high of more than $10.14 billion on Halloween in 2021, as pandemic restrictions eased and traditional celebrations returned. An estimated $3 billion of this spending went toward candy purchases, according to the National Retail Federation.
Hershey's scale-back comes as supply chain issues have worsened in recent months, driven by growing labor constraints and ingredient sourcing challenges, as well as international business stressors like Russia's invasion of Ukraine, Buck said.
"Early on, it was some of the basic logistics issues largely driven by labor," Buck said. "And as we've evolved, we're now starting to see bigger concerns relative to scarcity of ingredients, needing to leverage different suppliers at higher costs and price points in order to secure production, and then also the geopolitical environment has put certain strains on the business."
Buck's remarks came on the same day that Nestlé announced it will again increase the price of its products, after already hiking costs by 6.5% in the first half of 2022
"Pricing is taking over this year with inflation being so strong," Nestlé CEO Mark Schneider said on a media call on Thursday. "Of course we are doing everything we can to protect consumers from rising prices but we have to protect our company, too."
More: Retail Halloween Hershey Candy
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2022-07-29T18:24:22Z
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Hershey CEO: Expect a Halloween Candy Shortage This Year
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https://www.businessinsider.com/hershey-halloween-candy-shortage-year-2022-7
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https://www.businessinsider.com/hershey-halloween-candy-shortage-year-2022-7
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Russian Flag in Saint Petersburg, Russia.
Verena Altmann/EyeEm/Getty Images
A Florida political group defended its ties with Russia on Friday after an FBI investigation.
The FBI alleged that Kremlin agents worked with the socialist group in an attempt to influence US elections.
Prosecutors allege the 'brazen' conspiracy was years in the making and spanned multiple political groups.
A Florida socialist political group defended its relationship with Russia after the FBI alleged Kremlin agents teamed up with the organization in a "brazen" attempt to undermine US elections.
Federal agents on Friday raided St. Petersburg's Uhuru House — the headquarters of the socialist pan-African political organization — in connection with the alleged election interference conspiracy, the Tampa Bay Times reported.
"We can have relationships with whoever want to make this revolution possible," Uhuru Movement leader Eritha Cainion said at a news conference, the Times reported. "We are in support of Russia."
Prosecutors allege Moscow resident Aleksandr Viktorovich Ionov worked for years with agents of the Kremlin's Federal Security Service (FSB) to use multiple US political groups as a way to spread pro-Russian propaganda, sow discord, and interfere in US elections, the Justice Department said in a statement.
Assistant Attorney General Matthew Olsen said in the statement that Ionov tried to allegedly orchestrate a "brazen influence campaign, turning US political groups and US citizens into instruments of the Russian government."
Court documents refer one of the groups, from St. Petersburg, Florida, as "U.S. Political Group 1" — though it did not specify a name. However, St. Petersburg Police later confirmed to the Times that it was the Uhuru House raised by federal agents.
The criminal complaint also refers to an online petition calling for countries to declare the US was committing "genocide" against Black people. The petition, which is still live and garnered over 110,000 signatures, says it was started by the International People's Democratic Uhuru Movement.
A St. Petersburg Police spokesperson confirmed to Insider that the FBI executed a search warrant, but did not specify where. The FBI did not immediately respond to Insider's request for comment.
More: Speed desk Breaking Russia US Elections
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2022-07-29T19:03:19Z
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www.businessinsider.com
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Florida Political Group Defends Russia Ties Amid FBI Accusations
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https://www.businessinsider.com/fbi-kremlin-agents-florida-political-group-election-interference-2022-7
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https://www.businessinsider.com/fbi-kremlin-agents-florida-political-group-election-interference-2022-7
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What is a cyclical stock?
Which industries have cyclical stocks?
How to identify a cyclical stock
Cyclical vs. defensive stocks
Advantages and disadvantages of cyclical stocks
Cyclical stocks move in tandem with the economy, which can lead to boom-and-bust returns for investors
The performance of cyclical stocks mirrors that of the economy, rising in good times and faltering when consumer demand drops.
A cyclical stock is a stock whose performance follows the overall economy, rising when it grows and dropping during declines.
Cyclical stocks typically belong to industries dependent on discretionary spending like travel, entertainment, and luxury retail.
Cyclical stocks are volatile and transactions have to be carefully timed, but they can offer higher-than-market-average returns.
How do you know when a stock is going to rise, and when it is going to fall? If there were a single, definitive answer, all investors would be billionaires. While all stocks are affected by the moves of the stock market itself, there are a host of other influences — from a company's own fundamentals to the economy overall.
One particular segment, known as cyclical stocks, are particularly sensitive to cycles of the economy.
A cyclical stock is one that will rise and fall in tandem with the economy. When the economy is strong, unemployment is low, and both production and consumer spending is high, cyclical stocks tend to gain in value. But when a weakening economy hits — causing businesses to contract and lay workers off, and people to shut their wallets — the value of these stocks goes down.
Cyclical stocks can rapidly drive gains in a portfolio when the economy is expanding, with supply and demand in specific sectors growing. But they can also quickly reduce the value of a portfolio when spending slows and the economy starts to shrink, further dampening demand. So timing is key to investing wisely with cyclical stocks.
How volatile their price changes are depends on how quickly the economy is moving into or recovering from a recession.
Cyclical stocks are a varied lot. They can belong to a number of different industries. Unlike many growth stocks— another volatility-prone type of equities — the ranks of cyclical stocks can include well-established, sizeable businesses, as well as smaller ones.
The common denominator of cyclical companies is that they produce goods and services that are considered non-essential. They may be on the luxury side (high-end retail, entertainment) or the less-glam side (building materials, auto parts).
The point is, they're dependent on discretionary spending — not vital-to-life purchases like food or utilities. Buying things like cars, high-end appliances, cruise and airline tickets, the latest "It" bag and the newest iPhone becomes less of a priority when hard times loom and people tend to hold onto their money.
As a result, the companies that make these goods see a decline in profits, which then can result in a lower valuation of their shares.
Some of the industrial sectors you'll find cyclical stocks in include:
Automobiles: When money is tight, consumers tend to put off purchasing new cars, putting off maintenance, replacing tires, or even driving unnecessarily. These actions create a decrease in demand for manufacturing and sales of raw materials, parts, and vehicles.
Textiles and apparel: Clothing and accessories — especially expensive designer brands — are one of the first areas to take a back seat to essentials in a recession.
Household durables: These include electronics, furniture, and major appliances that come with large price tags. The cost makes buying new ones difficult to justify in hard economic times. Getting started on renovations or home improvement projects will also go by the wayside.
Dining and hospitality: Sure, eating is essential, but spending less to feed the family becomes a priority in a bad economy. Dining out is much more expensive than buying groceries and cooking.
Real estate: Whether consumer or commercial, new construction and property development often get put on pause when the economy declines. Reduced budgets and a tendency to keep cash close (rather than lock it up in real estate) influence those who would normally drive this sector.
Travel and entertainment: This is another luxury sector. It's nice to attend a concert, go to a theme park, take a cruise, or buy the latest video game. But in tough times, consumers go for what they need rather than what they want.
These categories aren't set in stone. Various organizations and analysts use different evaluation methodologies to classify sectors and determine which industries are considered cyclical and which are non-cyclical. And sometimes sectors can change.
For example, when S&P Dow Jones revised its Global Industry Classification Standard (GICS) used to categorize companies for its stock indexes, the telecommunications sector became a broader communications services sector. While telecom (phone companies like Verizon and AT&T) had historically been a non-cyclical sector, classifying it with info tech and media firms "suggests that it will become a more cyclical sector … likely to outperform when the economy is improving," a Fidelity Investments analytical report stated.
Not sure if a stock is cyclical? Look at the beta value. A beta coefficient or value is given to a stock based on its sensitivity to changes in the market. This is calculated by comparing individual returns to those of the market as a whole. A score of one places a stock even with the market. A higher score indicates more volatility. Many cyclical stocks will have higher beta coefficients.
It can be hard to predict how much a cyclical stock will rise or fall in value due to the nature of the economy and what's going on in a particular sector at any time.
Take, for example, Airbnb's IPO launched during the height of the coronavirus pandemic. The success of the company's house-sharing business model depends on consumer demand for travel accommodations. With expanding travel restrictions around the world, the timing for an IPO at $68 a share was risky, but by the end of the first day of trading, shares had risen to $144.
This was a huge, but short-lived, success story for investors. In just a few days, the price had dropped to $130 per share after having bottomed out at $125.16 at one point. Fine for those in at the very beginning, not so good for those who bought afterward.
It's this kind of volatility that makes investing in cyclical stocks a risk — certainly more so than staying with stalwart equities, like blue-chip stocks, whose returns remain relatively stable over time.
The opposite of a cyclical stock is a non-cyclical or defensive stock. Companies with defensive stocks are not as sensitive to the ups and downs of the economy. Their shares have produced consistent returns and paid regular dividends over decades.
Defensive stocks are usually found in sectors that provide for basic needs, such as food and other consumer staples, utilities, healthcare, and discount products.
That's not to say defensive stocks are recession-proof. They may lose some value in an economic downturn. However, they won't drop as fast or as far as the cyclicals.
Offer good performance: When economies are in a growth period, cyclicals are often right in the sweet spot. In fact, cyclical stocks can often outperform growth stocks and the market overall.
Can be bargains: Because cyclical stock values move so much with economic trends, you can look for opportunities to purchase stocks that have lost value during a recession. The idea is to buy low and keep your shares as the market rebounds.
Diversify your portfolio: Having a mix of both defensive and cyclical investments can be a smart portfolio strategy. In a strong economy, cyclical stocks can grow rapidly, providing for large returns. Since defensive stocks are a more steady earner, they will also increase in value during this time. When the economy dips, you may lose some value in your cyclicals, but your defensive stocks will help keep your portfolio intact.
Dependent on the economy: Economies follow a pattern of rises, falls, and rebounds. You never know when the economy or the markets are going to be rocked by something. If a company's well-established and well-run, it provides some protection — but the stock can get clobbered nonetheless if the business cycle's against it.
High volatility: With cyclical stocks, you can gain a lot when things are good and lose even more when the inevitable fall happens. Stock performance can change significantly from quarter to quarter.
Market timing: Cyclicals are not for the "set it and forget it" type of investor. You've got to be on the ball to make smart buys when cyclical stock prices are low and sell at just the right moment to profit before they start to tumble. In other words, you have to be aware of economic forecasts and changes in the major indexes, often a bellwether for business cycle changes.
Cyclical stocks depend on the movement of the economy. They're generally found in sectors that produce goods and services that are not essential. When the economy is doing well, demand and profits are high for these companies. When the tables turn and the economy falls, demand and profits go down as consumers hold on to more of their money.
Cyclical stocks can be good money-makers in a diversified portfolio — provided you balance these highly volatile securities with more stable or defensive stocks. But you can't be a passive investor with these equities. You have to stay on top of economic trends, and be prepared to move when it looks like the market is shifting from rosy bull to recessive bear.
More: Freelance cyclical stocks Defensive stocks Recession
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2022-07-29T19:03:43Z
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Cyclical Stocks: Definition, Examples, How to Invest
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Weeks before Shopify announced a 10% workforce cut, the company was quietly laying off workers but offering those employees significantly less severance, insiders say
Shopify's workforce essentially doubled earlier in the pandemic. But e-commerce has "normalized," CEO Tobi Lütke said.
In the weeks before announcing its 10% staff cut, Shopify quietly laid off dozens of workers.
Those workers were offered less in severance pay than those in the public layoffs, insiders said.
Some got as little as four weeks of severance pay, compared with the 16 weeks announced this week.
Shopify announced on Tuesday that it would be laying off about 1,000 employees, or roughly 10% of its workforce. These employees will be offered 16 weeks of severance pay, plus an additional week for every year of their tenure at Shopify, CEO Tobi Lütke wrote in a company memo.
"We want to support each of you through the coming weeks and months as much as possible, so we're offering a generous severance package," he wrote.
But earlier this year, before the publicly announced layoffs, the Canadian e-commerce company quietly laid off at least 50 employees, The Globe and Mail first reported. These employees were offered far less severance pay, four people familiar with the matter told Insider. These people said some of these laid-off workers were offered as little as four weeks of severance pay and asked to sign nondisclosure agreements to receive it.
One former employee who was laid off earlier in the summer said they were told they were being let go because of a reorganization, not a performance issue.
"It was completely out of nowhere," they said.
In addition to 16 weeks of severance pay, employees affected by the large layoff round announced this week were also offered a number of benefits not extended to those laid off just a few weeks ago, according to those familiar with the matter.
"We'll remove any equity cliff, and extend any medical benefits," Lütke wrote in the memo published Tuesday, adding that Shopify would offer outplacement services, pay ongoing internet costs, and allow employees to keep home-office furniture the company provided when it went remote early on in the pandemic.
The memo added that Shopify would provide a "kickstart allowance" that workers could use to buy new laptops.
Representatives for Shopify did not return Insider's request for comment on the discrepancy in severance packages.
The company also recently canceled some internships it had planned for the fall. It additionally delayed a compensation overhaul it had planned in response to employee concerns about the company's plummeting stock.
On Wednesday, the day after the large round of layoffs was announced, Shopify reported earnings that disappointed investors.
During the call, Lütke said Shopify had hired aggressively to match the explosive demand the company saw for its products in 2020 and 2021. Pandemic-related lockdowns and restrictions had sent many shoppers online, and more businesses launched online to capitalize on the increased interest, making Shopify's products more relevant.
But e-commerce has since "normalized," Lütke said during the call. He acknowledged the company had miscalculated the bets it placed on e-commerce continuing to grow dramatically even once the pandemic slowed down.
"We are going to a staffing level that we would be if COVID wouldn't have happened," he added.
If you're a Shopify employee affected by the layoffs or have a story to tell, contact this reporter at mstone@insider.com or on the secure-messaging app Signal at 646-889-2143.
More: Retails Shopify eCommerce
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2022-07-29T19:04:07Z
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Shopify Severance Packages Differed in Layoff Rounds, Insiders Say
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https://www.businessinsider.com/shopify-severance-packages-differed-in-layoff-rounds-insiders-say-2022-7
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https://www.businessinsider.com/shopify-severance-packages-differed-in-layoff-rounds-insiders-say-2022-7
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Justice Department staffs up team investigating efforts to overturn Trump's loss
A prosecutor well-versed in politically fraught cases is taking a more active role in the Justice Department's investigation of efforts to overturn the 2020 election.
A corruption prosecutor is helping with "investigatory efforts" in the sprawling January 6 inquiry.
JP Cooney previously oversaw the prosecutions of Trump allies Steve Bannon and Roger Stone.
The staff move offers one more sign that the Justice Department is ramping up its inquiry into Trump.
The Justice Department has staffed up its team investigating the January 6, 2021, attack on the Capitol and efforts to overturn then-President Donald Trump's loss in the 2020 election, adding a federal prosecutor with experience handling high-profile cases.
In an office-wide email Thursday, US attorney Matt Graves said he had asked a top public corruption prosecutor, JP Cooney, to help with "some of the investigatory efforts" in the January 6 investigation, people familiar with the move told Insider.
The email did not elaborate on those investigative steps. But in a hastily-called meeting earlier Thursday, Cooney told colleagues that he would be working with the team that includes Thomas Windom, who has emerged as a key prosecutor as the Justice Department has increasingly scrutinized the role Trump allies played in the effort to reverse the former president's electoral defeat, according to a person familiar with the internal discussions.
Graves, who was confirmed last year as thetop federal prosecutor in Washington, DC, announced the move as part of a broader reorganization within the largest US attorney's office in the country as it spearheads the hundreds of cases stemming from the Capitol siege.
The reshuffling will reshape the role of another top prosecutor overseeing the deluge of more than 800 cases linked to the January 6 insurrection.
John Crabb, who has doubled this year as chief of the criminal division and a recently created section devoted to Capitol riot cases, is leaving the former role to focus more fully on the January 6 investigation, according to people familiar with the staff moves. In his email to staff Thursday, Graves said prosecutor Denise Cheung would step in for Crabb as acting chief of the office's criminal division.
A spokesperson for the US attorney's office, William Miller, declined to comment.
The recent reorganization of the US attorney's office in Washington represents the latest indication of how the Justice Department is accelerating its investigation into efforts to overturn the 2020 election — and closing in on Trump.
In recent months, the Justice Department has issued subpoenas as part of an inquiry into the so-called "fake electors" scheme, in which Trump supporters assembled slates of purported electors pledged to Trump in crucial battleground states where Joe Biden prevailed in 2020.
More recently, prosecutors have directly asked witnesses about Trump's involvement in efforts to overturn his election loss, an indication that the inquiry is entering a more aggressive and sensitive phase. The questioning has come on the heels of a string of public hearings where the House committee investigating the January 6 attack has aired damning evidence linking Trump directly to the efforts to prevent the peaceful handoff of power.
In recent years, Crabb and Cooney have supervised several politically sensitive prosecutions, including the Justice Department's recent case against the longtime Trump ally Steve Bannon. On Friday, Cooney was at the federal courthouse in Washington, DC, when a jury convicted Bannon on two charges of contempt of Congress stemming from his defiance of the House committee investigating the January 6, 2021, attack on the Capitol.
Cooney was also involved in the 2019 prosecution of Roger Stone on charges he obstructed a congressional investigation into Russia's interference in the 2016 election and tampered with a witness.
Following that conviction, two prosecutors withdrew from the case and a third resigned from the Justice Department entirely after Attorney General William Barr intervened to overrule their suggested prison term and suggest a lighter sentence for the longtime Trump advisor. When a federal judge summoned prosecutors to explain the unusual shift in Stone's case, Crabb appeared in court and defended the original sentencing recommendation.
Stone was later sentenced to more than three years in prison. But Trump commuted the sentence days before Stone was set to report to prison.
Cooney was also among the prosecutors who weighed charging former FBI leader Andrew McCabe with lying to internal investigators about a media leak. Prosecutors ultimately declined to charge McCabe, a frequent target of Trump's scorn who was fired in 2018 after the Justice Department's inspector general found that displayed a "lack of candor" in his dealings with the internal watchdog office.
The investigation into the attack on the Capitol and efforts to overturn the 2020 election have brought renewed scrutiny onto Trump allies and former aides.
Last week, two top aides to former Vice President Mike Pence testified before a grand jury in Washington, DC, and the Justice Department has issued search warrants and subpoenas to a growing number of figures tied to Trump and his efforts to hold onto power.
In June, federal investigators searched the home of Jeffrey Clark, a former Justice Department official who advanced Trump's baseless claims of election fraud. Clark has since been charged with ethics violations by the top licensing organization for lawyers practicing in Washington, DC.
On the same days as the search of Clark's home in Virginia, federal agents in New Mexico seized the phone of John Eastman, a conservative lawyer who helped advise Trump on how to overturn his election loss.
On Wednesday, Windom revealed in a court filing that the Justice Department has since obtained a second search warrant allowing investigators to review the contents of Eastman's phone.
More: Trump january 6 Capitol Siege
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2022-07-29T19:04:19Z
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DOJ Staffs up Team Investigating Effort to Overturn Trump's 2020 Defeat
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https://www.businessinsider.com/top-public-corruption-prosecutor-joining-justice-department-team-investigating-trump-2022-7
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Reps. Pat Fallon, Tom Suozzi, and Chris Jacobs avoid penalties after STOCK Act violation investigations
Dave Levinthal and Madison Hall
Reps. Tom Suozzi, a Democrat from New York; Chris Jacobs, a Republican from New York; and Pat Fallon, a Republican from Texas
Reps. Pat Fallon, Tom Suozzi, and Chris Jacobs failed to properly disclose personal stock trades.
The botched disclosures violated the federal STOCK Act's disclosure provisions.
But the House Committee on Ethics ruled the late filings weren't "knowing or willful" and didn't penalize the lawmakers.
The US House Committee on Ethics on Friday cleared three members of Congress — two Republicans and a Democrat — of wrongdoing for failing to properly disclose what together were hundreds of personal stock trades worth millions of dollars.
There "was not clear evidence" that Reps. Pat Fallon, a Republican of Texas; Tom Suozzi, a Democrat of New York; and Chris Jacobs, a Republican of New York committed "knowing and willful" violations on the federal Stop Trading on Congressional Knowledge Act of 2012, the Committee on House Ethics unanimously concluded.
The three congressmen "were generally unclear on the requirements" related to disclosing their personal stock trades, the committee wrote in a ruling made public Friday afternoon. "The committee has worked with each member, and they have all made diligent efforts to take appropriate remedial actions and ensure their continued compliance with applicable financial disclosure requirements."
The ruling by the bipartisan committee — five Democrats and five Republicans — effectively dismisses formal referrals from the independent Office of Congressional Ethics, which Congress itself established in 2008. The Office of Congressional Ethics conducted its own investigation and unanimously concluded earlier this year that there was "substantial reason to believe" Fallon and Suozzi had violated the STOCK Act. It issued a split-decision referral for Jacobs.
Insider and other media organizations have since 2021 identified 66 members of Congress who have violated the disclosure provisions of the STOCK Act, which Congress passed a decade ago to outlaw insider trading, curb conflicts-of-interest, and increase transparency.
Rep. John Rutherford, a Republican from Florida, reportedly will avoid penalties for improperly disclosing numerous personal stock trades.
Bill Clark/CQ-Roll Call, Inc. via Getty Images
Although it has not issued an official ruling, it appears that the House Committee on Ethics also dismissed a STOCK Act violation referral for a fourth member of Congress — Rep. John Rutherford, a Republican from Florida.
The Florida Times-Union reported Friday that the committee told Rutherford, who is himself a member of the committee, that it found "no clear evidence" that he failed to properly disclose dozens of stock trades over a span of four years. Rutherford recused himself from his own case, the Florida Times-Union reported.
The Office of Congressional Ethics has referred several STOCK Act-related cases — most notably, that of Rep. Tom Malinowski, a New Jersey Democrat — to the House Committee on Ethics, which alone has power to punish member of the US House for ethical transgressions.
Had the House Committee on Ethics ruled against any of the congressmen, it had several punishments at its disposal, including issuing official reprimands or censures.
"The committee takes the statutory financial disclosure requirements and its oversight of them very seriously," it wrote Friday in its ruling. "It is working to address various programmatic issues raised by these referrals and will publicly address them at a later date."
Federal law requires that lawmakers publicly disclose any personal stock trade of more than $1,000 within 45 days of making the trade.
Insider first reported that Fallon was months late disclosing dozens of stock trades during early- and mid-2021 that together are worth as much as $17.53 million. Fallon was late again in December 2021 disclosing stock trades.
Suozzi has been habitually late filing stock trades. He failed to file required reports on about 300 financial transactions from 2017 to 2020, NPR reported, citing research from the Campaign Legal Center. In March 2022, Suozzi disclosed more than 30 stock trades months or years past a federal deadline, Insider reported. In May 2022, he disclosed 10 more stock trades weeks past the federal deadline for doing so.
Jacobs was months late filing various transactions made throughout early- to mid-2021, Forbes first reported.
Representatives for Suozzi, Jacobs, and Fallon, did not immediately respond to Insider's requests for comment.
The House Committee on Ethics' ruling comes on a week when House Democrats said they planned to introduce in August consensus legislation that would ban members of Congress, their spouses, and top congressional staffers from trading stocks at all.
In addition to the dozens of lawmakers who failed to properly disclose stock trades, Insider's "Conflicted Congress" investigation found dozens more lawmakers whose personal stock trades are discordant with their public responsibilities.
More: Conflicted Congress Pat Fallon Tom Suozzi Chris Jacobs
House Committee on Ethics
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2022-07-29T20:08:23Z
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No Penalties for Three Congressmen Who Broke STOCK Act Disclosure Rules
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https://www.businessinsider.com/congress-stocks-pat-fallon-tom-suozzi-chris-jacobs-2022-7
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Why invest in blockchain technology?
Ways to invest in blockchain technology
Individual blockchain stocks: general companies
Individual blockchain stocks: crypto-related companies
Blockchain funds
Tips for investing in blockchain technology
How to invest in blockchain, the high-risk but high-potential technology behind bitcoin and other digital transactions
A variety of ways exist to invest in blockchain technology, which empowers cryptocurrency, but also holds great promise in other industries.
Investing in blockchain technology has become hot due to its role as the database for cryptocurrencies and digital transactions.
You can invest in blockchain technology via stocks of companies that offer cryptocurrency-related services or are developing other industrial applications for it.
Despite its growth potential, blockchain technology should be seen as a high-risk investment. ETFs are the safest way to play.
Bitcoin often dominates the financial news, riveting investors with its volatile price swings and appreciation potential. Getting far less attention, though, is blockchain, the database technology on which the cryptocurrency rests.
A blockchain is like an electronic ledger. Data can be entered into it, but cannot be altered or erased, giving it its much-celebrated property of permanency (and implied integrity).
Many blockchains have emerged since the first one that made bitcoin's debut possible in January 2009. Some of these blockchains support cryptocurrencies like bitcoin, while others support multipurpose digital platforms — such as Ethereum — that work like decentralized versions of more traditional (i.e. centralized) platforms and networks.
Investing in blockchain technology has become a hot topic over the past few years. There are numerous ways to do it too, since blockchain technology doesn't relate only to cryptocurrencies. It also encompasses:
Companies that offer cryptocurrency-related services (such as crypto-exchanges, where you trade currencies)
Companies that are building their own blockchains for other industrial/ business purposes
Let's look at how to invest in such companies, along with the pros and potential pitfalls of blockchain investment.
A blockchain is a database that is usually operated by a distributed and public network of participants, although a growing number of companies have begun using or building private blockchains (also known as "permissioned" blockchains).
The purpose of such blockchains is to create digital records — of transactions, certificates, or contracts —that can only be added to, rather than changed or deleted. Rather than relying on a single entity to enter new information, they use a "consensus mechanism" that sees multiple participants use cryptography (the science of encrypting, or coding, data) to validate new entries.
"There's no need for a third-party, such as a bank or a regulator, to verify actions because it's a shared process, secured by cryptography. This removes intermediaries and creates a framework that improves trust, transparency, and efficiency across different, and very separate, organizations," says Hadyn Jones, senior blockchain market specialist at PwC.
It's this promised improvement of trust, transparency, and efficiency that has transformed blockchain tech into an attractive investment prospect. Blockchain has applications in a wide range of industries, where the companies implementing blockchain tech will gain a competitive advantage over rivals.
"Using blockchain, organizations can build greater trust and transparency in areas such as the provenance of pharmaceuticals, food ingredients, or component parts. Solutions can also be created that support commercial transactions, the issuance and trading of securities and cross-border payments," says Jones.
"In our Time for Trust report, PwC's economists estimated that blockchain technology has the potential to boost global gross domestic product (GDP) by $1.76 trillion over the next decade," he says. "So it is natural to see why investors would be interested in those leading companies that can deliver most in blockchain-related services."
Put simply, by reducing costs and increasing profits, blockchain tech may make companies more profitable. Bigger revenues would obviously raise their stock shares — and the portfolios of investors who allocated capital to them early.
But they don't have to be tech plays. More broadly, blockchain investment can also involve investment in companies that work specifically with cryptocurrency (such as crypto-payment platforms like Square) and those that have invested in crypto (such as MicroStrategy).
Because the performance of these companies revolves around the performance of cryptocurrency prices themselves, they're more likely to rise in correlation with cryptocurrency prices. And with bitcoin rising by around 300% in the past 12 months, investors with a taste for high-growth stocks may be drawn to them.
One simple way to invest in blockchain technology is to buy shares in any publicly traded company that's either using or building blockchain tech, or that works with or invests in cryptocurrency.
When it comes to firms using or working with blockchain technology, some of the most prominent publicly traded companies include:
IBM (offers blockchain services)
Amazon (offers Amazon Managed Blockchain service)
Intel (offers blockchain services)
Nvidia (sells GPUs to cryptocurrency miners)
AMD (sells GPUs to cryptocurrency miners)
Mastercard (working on blockchain-based cross-border payments with R3)
Honeywell (using blockchain to track sales)
DocuSign (offers blockchain service)
JPMorgan (created its own cryptocurrency, JPM Coin, and its own unit for blockchain projects)
Canaan (manufactures mining hardware)
Silvergate (offers banking services to blockchain and cryptocurrency firms)
Alternatively, there are some publicly traded companies that either offer crypto-related services or are directly exposed to cryptocurrency:
Block (offers bitcoin payment service, also holds bitcoin)
PayPal (offers a bitcoin payment service)
Grayscale Bitcoin Trust (operates a bitcoin investment fund)
Grayscale Ethereum Trust (operates an ethereum investment fund)
Intercontinental Exchange (operates Bakkt cryptocurrency exchange)
Overstock (digital retailer which accepts bitcoin)
As cryptocurrency becomes more mainstream in its uses, it's likely that more crypto firms will be publicly listed. For example, Coinbase — the largest crypto-exchange in the U.S. — went public in 2021.
Buying individual stocks isn't the only way to gain exposure to blockchain.
"There are funds that provide exposure to blockchain technology, largely grouped along the lines of traditional [investment] funds," Jones says.
Holding a portfolio of assets, mutual funds and exchange-traded funds always tend to be the individual investor's instrument of choice, offering diversification — and thus less risk — at relatively low cost. But they have a special advantage with this sector.
While a few options exist, like the aforementioned Grayscale Bitcoin Trust, bitcoin ETFs remain scarce: In the US, the SEC has refused (as of early 2021) to allow them, due to the difficulty of accurately assessing the currency's value and liquidity.
No such problems exist with blockchain. There are a growing number of blockchain ETFs now available. These invest in a selection of companies working with blockchain tech. Some of the biggest include:
Amplify Transformational Data Sharing ETF
Reality Shares Nasdaq NexGen Economy ETF
First Trust Indxx Innovative Transaction & Process ETF
Goldman Sachs Finance Reimagined ETF
Innovation Shares NextGen Protocol ETF
Despite its promise, blockchain technology remains an immature sector that hasn't fully proven itself in terms of viable products.
"As an emerging technology, blockchain is no different to other emerging technologies such as quantum computing, electric aviation, or spatial computing all of which involve taking risk to innovate," says Hadyn Jones.
So there are a number of tips worth keeping in mind when looking to invest in blockchain tech.
Do your due diligence: Lots of companies claim to be involved in blockchain these days (remember Long Blockchain?), but some are pursuing the technology more meaningfully than others. It's for this reason that research into a particular firm, and its fundamentals, is particularly important.
"The starting point is to build a case for the investment itself based on factors such as the opportunity for growth, the competitive environment or differentiating factors relative to other projects," says Jones.
Treat blockchain as a high-growth, high-risk sector: As with tech stocks, blockchain stocks represent a high-growth sector that exposes investors to plenty of risk. Because the wider utility of blockchain still remains mostly unproven, it would be wise to invest only a small portion of your available capital in blockchain companies and to diversify in other areas as much as possible.
Watch out for new laws and regulations: Keeping up to date with regulators is just as important as researching individual companies, particularly when so much of the blockchain sector remains unformed. Government officials and agencies may potentially legislate in a way that significantly disrupts blockchain-focused companies.
"Understanding the regulatory backdrop is also a useful indicator, and with both the UK and EU investing time in readying themselves for legislation relevant to digital assets, the underlying blockchain technology is very much on the administrations' radar as a driver for growth," says Jones.
Concentrate on the bitcoin connection: Yes, blockchain investing has advantages over bitcoin investing. But, given that bitcoin remains the most successful use of blockchain technology to date, some analysts advocate fixing on firms that mostly use it to work with the cryptocurrency.
"The best way to invest in companies working with blockchain technology would be to focus on companies leveraging themselves to bitcoin. Companies that own bitcoin on their balance sheet like Square and MicroStrategy, or companies that are creating businesses on top of bitcoin like Square, Paypal, Coinbase, Silvergate Bank, Galaxy Digital, Hive, Voyager," says Adam Pokornicky, the COO at Digital Asset Investment Management.
Blockchain technology represents an exciting area of innovation that now crosscuts many different sectors. Its possibilities have piqued the interest of investors throughout the world, insofar as they promise higher-than-average growth.
Interest in blockchain tech has also been generated by interest in cryptocurrencies like bitcoin, which rose in price by 300% in 2020 alone.
This is why anyone seeking to invest in 'blockchain tech' should concentrate at least as much on companies offering crypto services or investing in crypto, as opposed to focusing on those solely using blockchain.
At the same time, investing in a blockchain ETF may be a wiser strategy than investing in individual blockchain-related companies, since these cover a broader range of firms.
PERSONAL FINANCE Blockchain is a digital database used to store data for crypto transactions and other assets — here's how it works
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2022-07-29T20:43:47Z
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How to Invest in Blockchain Technology: Stock Types and Strategic Tips
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https://www.businessinsider.com/personal-finance/how-to-invest-in-blockchain-technology
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What are the risks of investing in silver?
Silver vs. gold as an investment
Though often dismissed as "the poor man's gold," silver offers investment advantages in its own right, as well as some of gold's strengths.
Silver is seen as a safe haven investment in uncertain times, a hedge against inflation and stocks.
Silver's use as an industrial metal in many fields also affects its price performance and outlook.
Silver is cheaper than gold, but more thinly traded, making it more volatile and illiquid.
Gold tends to get all the glory in the investing world — it's the go-to people think of when they want an alternative investment to traditional stocks and bonds. But from time to time, the financial spotlight falls on silver, and it shoots up in price, even outperforming its yellow-metal cousin in the market.
Silver can be both as a cheaper alternative to gold, but silver also comes with unique considerations and risks that investors need to consider. Here's what you need to know about investing in silver and how to determine if it's a good investment.
Silver is classified as a commodity — a publicly traded, tangible asset. Tangible assets' prices generally move in the opposite direction from stocks and bonds.
For this reason, many investors turn toward commodities like silver when the stock market has a poor outlook or in times of economic recession or political turmoil. Since it's impacted by different influences, silver can be a good way to diversify and counterbalance your portfolio vis-a-vis equities or other paper securities.
The metal also acts as an inflation hedge. As a physical asset, it has intrinsic worth, unlike the dollar or other currencies. Silver holds its value long term and fares well when interest rates are low — and fixed-income investments aren't earning much.
In these ways, silver functions like gold as an investment, serving a similar "safe haven" role. However, silver is an industrial metal as well as an investment metal — which significantly affects its price performance and outlook.
Silver is used in the manufacture of a variety of things, from glitzy jewelry to humble batteries, from medical equipment to microcircuits. It's also at the forefront of some innovative fields.
"Because silver has a very high conductivity, it's used for many technological applications in solar energy and the electric automotive industry," says Giancarlo Camerana, a strategic advisor at QORE Switzerland, a precious metals and investment advisory company. With both fields expanding rapidly, he explains, many analysts predict that the demand for silver is likely to rise substantially in the coming years.
So investing in silver can be a way to bet on the technological advances and the clean energy movement.
Of course, silver — like any investment — isn't all reward. The metal brings its fair share of risks, as well.
Sensitive to recession: Driven as it is by industrial growth, the price of silver can be decimated by an economic slowdown
Vulnerable to technology shifts: There's always potential for silver to be replaced by another metal in its manufacturing uses. Or for something to happen to the industry itself — witness the decline of photographic film, a big user of the metal
Limited income/appreciation potential: A a tangible commodity, silver doesn't offer any interest like a bond, or dividends like a stock. Your only chance to benefit is if you sell it during a price rise.
Unpredictable price moves: Because silver has worth in multiple categories, its price can waver wildly, caught in a tug-of-war between its industrial and investment valuations. Say investors bid up silver prices. "As the silver price rises, the incentive to recycle silver from industrial scrap, jewelry, and silverware grows," says Camerana. "As there is a lot of potential scrap around the world, it could cause unexpected oversupply," which would then cause the price to drop.
It's natural to compare silver to gold as an investment. They share the same tangible asset strengths — counterweights to stocks and stock markets, safe havens against socio-political shocks, inflation hedges. However, the two precious metals have several major differences.
Silver is cheaper than gold
Silver is less costly than gold — much. In the 21st century, its spot price in the financial market has never exceeded $50 an ounce. Gold trades in the four figures. So silver is much more affordable: The same dollar investment buys you a lot more silver than gold, and silver has the potential to offer more profit.
Gold is easier to store than silver
The more-for-your-money aspect is a double-edged sword, though. Silver takes up more physical volume than gold. Since the same size investment literally buys more silver than it does gold, that means silver holdings will take up a lot more space will cost more to store and transport. Oh, and it tarnishes too.
Silver is more volatile than gold
The silver market is much smaller than the gold market. Because it's more thinly traded than gold, silver can demonstrate far greater volatility, or price swings, than its glittering cousin — like leaping 13% in a single day, for example.
Silver is less liquid than gold
Those looking to offload silver will likely have a more difficult time finding a buyer than those selling gold. The gold market is simply more widely known and understood. It offers a wider array of safer, reputable places to invest.
Gold is a better hedge than silver
Since silver is an industrial metal, it's more vulnerable to recession and pressures affecting manufacturing companies. Such factors can affect gold, which also has its industrial uses, but overall, gold is more driven by investor sentiment. So gold acts as a better, purer hedge against the economy and stock market.
There are two main ways to expose yourself to silver: directly (buying the actual metal itself) and indirectly (buying silver-related securities).
Investors can buy physical silver in the form of bullion coins, bars, or junk silver bags. This is the purest form of silver investment, but it does incur storage-related problems and expenses.
Less pretty, but more pragmatic, is to invest in financial instruments that represent silver. For individual investors, these best indirect options include:
Silver stocks: companies involved in the mining or processing of silver ("miners") or in re-selling it ("streaming companies"). Camerana notes that there are very few "pure silver plays," as he terms it, because "silver is often extracted from or mined together with other metals such as copper."
Mutual funds or exchange-traded funds (ETFs) that hold silver portfolios. Some invest in physical silver, others in silver companies.
Exchange-traded commodities (ETCs), publicly traded securities that invest in silver bullion like the funds. However, they differ from that in that they're debt instruments (sort of like a bond); the underlying commodity they track — silver in this case — serves as collateral.
Should I invest in silver?
Despite its affordability and industrial uses, silver has maintained a fairly low profile, especially in comparison to gold. As Camerana notes, investor demand currently represents just 15% of the market, as opposed to industrial uses, a statistic that suggests the commodity is both under-owned and undervalued. It also remains relatively cheap — especially in comparison with gold — presenting investors with more buying opportunities.
But silver is more volatile and less liquid than gold. These factors, along with its dependence on different industries, can make it difficult to predict what the silver market will look like in 10 minutes, let alone 10 years. For those reasons, it's probably wise for newbie investors to steer clear and stick with good old gold if they want a safe haven against the stock market's moves.
But if you're slightly more experienced and have a stomach for risk, Camerana suggests that silver could be a good choice. Now might just be the perfect moment to take the plunge, as the combination of a bullish market intersects with increased demand from both the industrial sector and financial investors.
PERSONAL FINANCE How to buy gold to diversify your portfolio and help shield against market downturns
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2022-07-29T20:43:53Z
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Is Silver a Good Investment? Outlook, Risks, Comparison to Gold
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What is a long position in options?
Long call options vs. long put options: at a glance
How a long call option works
How a long put option works
Exercising your long call or long put option
Why take a long position in options?
Long call options vs. long put options — what 'going long' in options trading means
In options trading, a long position means buying either a long call option or a long put option. The long call option reflects an optimistic feeling that a stock price will rise.
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In options trading, going long means owning one of two types of options: a long call and a long put.
A long call option gives you the right to buy stock at a preset price in the future.
If the stock doesn't move as hoped, the option expires at little cost to you.
A long position in investing basically means to buy or own a stock. Generally, you do so because you expect it to increase in value in the future — hence, you're holding it for the long-term.
But a long position also has a specialized meaning, having to do with options and options trading. It refers to buying a specific kind of option, based on your belief as to where the price of a stock (or another asset) is headed. Let's examine how a long position in options, or "going long" as the traders say, works.
In the options-trading world, taking a long position, or going long, means you're purchasing an option. An option is a contract that gives you the right to buy or to sell shares for a preset price (or "strike price") on or before a future date, usually within the next nine months. It's an opportunity to do this trade, but not a commitment — so, an option.
Long option positions require less investment, or cash down, than outright investments. Instead of spending thousands on a stock, you just spend a few hundred on the option, giving you more leverage for less money.
Note: When you purchase an option, the only thing you pay upfront is the premium, or fee, for the option itself.
There are two types of long options, a long call and a long put.
A long call option gives you the right to buy, or call, shares of a named stock for a preset price at a later date.
A long put option does the opposite: It gives you the right to sell, or put, shares of that stock in the future for a preset price.
Of the two options, long calls are more common — or at least, what's more commonly thought of as a long options position. And, like buying stock outright, they are essentially optimistic. Long puts, pessimistic bets that a stock will fall, are more often used as insurance against a bad outcome with a long call, or with an actual ownership position.
But in a way, both long options can be considered bullish: Both are buy positions, affording you a chance to make money on the moves of the underlying stock.
If you believe a certain stock is going to go up in price in the coming days, weeks, or months, you can purchase a long call option to buy that stock for today's price sometime in the future and make a profit by selling it on the stock market at the then-higher price.
Example of a long call option
You believe ABC stock, selling today for $100 a share is going to be worth more in a couple of months. You purchase a long call option contract for 100 shares, set to expire in three months, at a strike price (a preset price) of $100 per share, and a premium (fee) of $3 per share for the option itself.
ABC does as you expect and in two months shares are worth $150 apiece. You exercise your option, buy 100 shares at $100 each, sell them for $150 each, and you've made a tidy profit of $4,700.
Here's the math
$15,000 from the sale of 100 shares @ $150 on the stock market
— $10,000 cost to buy those shares at the strike price
— $300 cost of the original contract premium
= $4,700 profit
If you believe a company's stock is due for a drop, you would purchase a long put option contract giving you the right to sell shares of that stock in the future for today's (higher) price.
Example of a long put option
You believe ABC is going to decline in a couple of months. You purchase a long put option contract for 100 shares, set to expire in three months, with a strike price of $100 per share, and a premium of $3 per share.
ABC does as you expected and in two months shares are selling for $50. You buy 100 shares at $50 each, exercise your option, and sell them for $100 each, and you've made a tidy profit of $4,700.
$10,000 from the sale of 100 shares @ $100 strike price
— $5,000 cost to buy those shares at the lower market price
Whether you buy a long call or a long put, you can't make money unless you exercise your option. Exercising your option means to buy or sell before the expiration date set in the option contract.
Naturally, you'd exercise the option if things go the way you expect — the stock moves in the manner you thought it would, so you get to buy it (with a call) or sell it (with a put) at a price that's better than the current market rate.
Why would you let the option expire without exercising it? Simple: The price of the stock goes against your prediction, moving in an opposite direction from the strike price. If that happens, the option becomes worthless. You let it expire, and you lose the premium you paid.
The good news is, that's all you lose.
Going long lets you take chances with less risk. Both long calls and long puts limit your loss to the premium, the cost of the options contract. You don't have to buy the stock (in a call) or sell the stock (in a put) unless you expect to profit — by the shares moving as you anticipated before the contract ends.
In contrast, in regular investing, you're committed to an actual purchase. And that could cause you to lose a lot of money if the stock doesn't move in the direction you expected.
In addition to being less risky, long options also include an unlimited profit potential to the upside in the case of a long call option or the downside with a long put option. As long as the stock is above or below your option's strike price — for the call or the put, respectively — you stand to win.
Both types of options are considered long, in the sense that both are buy positions and both let you make money on the direction of the underlying stock. However, the long call is the more bullish sentiment, because you're betting that the stock price will rise.
The long put option is a more bearish view because you're anticipating, and hoping to profit from, a fall in the stock price.
Long put options vs. short selling
A long put option is somewhat similar in strategy to short selling, aka shorting. That's when you sell stocks you've borrowed, aiming to buy them back later for less money, and pocketing the difference as profit. Both are bets that a stock's share price will decline.
The key difference is, with a long put, you don't have to actually borrow to buy the stock upfront and hope it falls in value before you have to repay it. You just reserve the right to do so before the end of the options contract. If the drop doesn't happen, you just let the option expire.
A long put option can also serve as a hedge, or insurance, against a bad outcome with a long call option or an outright purchase of stock. Yes, you're betting against yourself, in a way, but at least you stand to benefit a bit if the stock falls instead of rises, mitigating your overall loss.
PERSONAL FINANCE What is a short squeeze? Understanding why they happen and how they work
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2022-07-29T20:43:59Z
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Going Long in Options: Long Call Options, Long Put Options, Strategies
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How does options trading work?
What is a naked option?
Naked call options
Naked put options
Who uses naked options?
Why are naked options risky?
What to know about naked options — from how it works to why it's risky
Naked options can involve risk and should be used only by experienced traders and investors, if at all considered.
A naked option is one sold if you don't own the underlying security the contract's based on.
Naked options potentially let traders pocket the option fee without ever having to invest any money.
Naked options are highly risky: Losses can be high if the seller has to honor the options contract.
Options trading has become increasingly popular with investors over the last few years — they're a way to lock in good prices on stocks without being obliged to actually purchase if they don't perform as predicted.
A naked option is a type of option which is particularly risky, even if it appears to offer a way of profiting at a minimal cost. Here's how it works and why it can be a risky choice.
An option is a contract giving you the right — but not the obligation — to buy or sell an asset (usually a stock) at a specific price before a specific date. Here's an overview of how options work.
Options basics
Options come in two basic varieties: An option to buy is a call. An option to sell is a put.
Option contracts run anywhere from one to nine months and are usually for 100 shares.
The option-buyer pays a fee, or premium, for the contract. The premium is based partly on the price at which the option-holder might buy or sell the asset — the strike price — and partly on the length of the contract.
"Naked options means you are holding an options position without having a position with the underlying stock," says Edward Moya, a senior analyst at Oanda.
In other words, when a trader sells a naked option, they are selling an option without being in possession of the stock the option agreement is about. That means they aren't covered in the event the buyer of that option exercises it.
Naked options relate only to selling (i.e. writing) an options contract rather than buying it. Naked options come in two varieties: naked calls and naked puts.
A call option lets the purchaser of the option buy a stock at a certain price (the "strike price") within a certain timeframe. If you sell a call option, it means you will have to sell the underlying stock if the option is exercised.
This becomes a naked call when you don't already own that stock to sell it.
Naked put options involve selling a put contract, which would oblige you (as the writer of the contract) to buy a security at a set price if exercised.
The naked put has the same potential reward as the naked call, only with the stock moving in the opposite way. If the stock rises above the strike price, the put-option holder (who bet it would fall) will let the option expire, letting the option seller walk away with the premium.
But if the underlying stock's price falls below the strike price, the option-holder will certainly exercise the option, allowing them to make a profit. If you're the writer of the put contract, you will therefore have to buy this stock at the strike price, and you will take a loss if you then sell it at the lower market price.
Covered options
The opposite of a naked option is a covered option. It means you do own the underlying stock the option is written on, or have a position in it, "covering" you if the option gets exercised.
With calls, being "covered" means owning the underlying stock. With puts, "covered" means holding a short position in, or short-selling, the underlying stock (that is, borrowing the shares from a broker). This practice would defray the cost of having to buy that stock at a higher-than-market price.
The main attraction of naked options is that they potentially offer traders income without significant cost. That income is the premium — the fee the option buyer pays for the option. With naked options, the aim of the options writer is to pocket this premium without having to spend money on owning or shorting the corresponding stock.
"Experienced traders who have a strong belief they have a handle on what the short-term move of a stock will be, will often consider trading naked options," says Edward Moya.
That said, the seeming promise of 'easy money' has also attracted less experienced traders with a higher threshold for risk.
"Legions of new stock traders eventually dabble with options, and the ones that trade naked options quickly learn of the big risks that come with it," says Moya.
There are two main reasons why naked options are one of the riskiest trading strategies out there.
Large losses: Regardless of whether it's a naked call or put, losses are potentially unlimited. With naked calls, a trader runs the risk that the stock they may be forced to sell (but don't currently own) witnesses considerable price rises. With naked puts, they may end up having to buy a stock at a price that's considerably higher than the price they will then be able to sell it for on the open market.
Direction and timing: With naked options — as with options in general —you need to have a very strong handle on not only the way a security might move but also when it will make its move. This is taxing even for the most experienced professional analysts, let alone novice traders. "Identifying the right direction of a stock and timing makes trading naked options very difficult," says Moya.
A naked option is an option contract you sell without actually owning the underlying security the contract's written on. In the case of naked calls, this involves selling a call option without already owning the underlying security, while in the case of naked puts, it involves selling a put option without short-selling the security.
Naked options are tempting because they potentially let traders pocket the premium for writing options without having to buy any stock in advance — or even at all, if the option goes unexercised.
However, the strategy can open investors to significant losses. Without actually owning the underlying stock, "there is no hedge in the position — you're basically gambling as to whether a stock will go up or down," says Robert Ross, a senior equity analyst at Mauldin Economics.
This is why, as a strategy, naked options should be used only by highly experienced traders and investors — if ever.
PERSONAL FINANCE Long call options vs. long put options — what 'going long' in options trading means
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2022-07-29T22:23:30Z
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Naked Options: Definition, Risks, How Naked Calls and Naked Puts Work
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Series EE vs. Series I
Series bonds rates and taxation
Pros and cons of savings bonds
How to buy savings bonds
What to know about savings bonds — securities you can buy from the US Treasury
Once you have the bond, you decide how long you'll hold onto it, anywhere between one and 30 years.
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A savings bond is a debt security that's distributed and backed by the US government.
The federal government issues two types of savings bonds: Series EE and I bonds.
Series EE bonds double in value if held for at least 20 years, while I bonds keep pace with inflation.
A savings bond is a debt security you can buy from the US Treasury. Both types of savings bonds — Series EE and Series I — are "zero coupon," which means they pay interest only when they're redeemed.
Savings bonds tend to offer low returns, but "they are extremely low-risk as they are backed by the US government," says Michael James Kelly, CFP® professional, CFA, and owner of Switchback Financial.
This type of investment could be a good fit for a long-term portfolio in some cases, but you should know about what they earn, how they're taxed, and how to buy them.
Series EE vs. Series I bonds
When you buy a savings bond, you're essentially lending money to the US government, which promises to repay you within 30 years. The main difference between the two types of savings bonds is how the interest works:
Series I bonds are designed to protect your money from losing value due to inflation. The annual interest rate is made up of two parts: a fixed rate and an inflation-adjusted rate that's calculated twice a year. If deflation occurs, the interest rate won't drop below zero.
Series EE bonds are guaranteed to double in value if you hold them for at least 20 years. These earn a fixed interest rate, though Series EE bonds purchased before May 2005 have either a variable or fixed rate, depending on the issue date.
Quick tip: Electronic savings bonds are sold at face value, and you can buy them in penny increments from $25 to $10,000 every calendar year. To get the maximum value of a savings bond, you'll need to hold it to full maturity.
"EE bonds, at least right now, are best suited for long-term investors," says Jeremy Keil, a CFP® professional, CFA, and owner of Keil Financial Partners. "If you are shorter-term and think you'll cash out in the next one to five years, you'll probably do better with I bonds. I bonds are also guaranteed to keep up with inflation, and very few investments are guaranteed to do that."
Once you purchase a savings bond, interest is credited every month and compounded twice a year. Rates on new bonds change every April and November, and series I bonds also have semiannual rate changes. You can find these rates and their changes directly from the TreasuryDirect website.
Quick tip: Savers can cash in a bond after holding it for at least one year. But penalties kick in if you redeem a savings bond within five years of buying it. You'll lose three months' worth of interest, plus whatever the bond would have earned through maturity.
Savings bond investors pay federal taxes on interest earned, but not state or local income tax, says Mark Steber, the chief tax information officer at Jackson Hewitt Tax Services. You have a choice on when to pay those taxes, though.
"Taxpayers can choose to pay taxes on the interest increase for each year when filing that tax return," Steber says, "or they can pay taxes when the bonds are cashed in or reach final maturation date."
The decision typically comes down to the individual and their own tax situation. But generally, "I think that waiting is the best option," Kelly says. "You can benefit from investing that money that could be used to pay taxes annually and gain from the time value of money." However, if you expect your federal taxes to be higher at a later date, then it may make sense to pay taxes as interest is earned.
Quick tip: If you redeem a bond and use the money for qualified education expenses in that tax year, the interest you earn is tax-free. To qualify for the exclusion, your adjusted gross income must fall below $97,350 (or $153,550 for joint filers).
Whether you have to pay taxes also depends on who bought the bond, who owns it, and sometimes where you live. Check out this table to see which situation applies to you:
Situation Who owes the tax?
You buy a bond for yourself. You
You buy a bond for yourself and a co-owner. You
You buy a bond for someone else and put it in their name as owner. The person named as owner.
You and another person buy a bond together and are named co-owners. You and the co-owner each report the interest in proportion to how much you each paid for the bond.
You and your spouse file separate federal income tax returns. You live in a community property state and buy a bond that is community property. You and your spouse each report one-half of the interest on your federal income tax returns.
Like any financial investment, savings bonds come with some benefits and drawbacks. Consider these points before taking out a savings bond:
They're low risk. If you keep the bonds until maturity, you're guaranteed to get back the entire principal amount plus interest.
Electronic savings bonds are sold at face value, which means you won't pay extra fees on the investment.
The earned interest is subject to federal income taxes but not state or local income taxes.
You can choose to defer taxes until you redeem the bond. And you might qualify for a tax break when using bond funds to pay for higher education costs.
You won't receive the maximum return until you redeem the bond, which is typically 30 years. Cash in the bond early, and you pay a penalty.
There's a purchase limit of $10,000 in bonds of each series (so $20,000 total) in any one year, plus another $5,000 for paper I bonds.
Savings bonds have a low yield compared to a more aggressive investment.
All savings bonds used to be issued on paper slips, but now savers have two options:
Buy online. You can purchase bonds electronically at TreasuryDirect.gov, the US Treasury's electronic savings portfolio platform. Once you open an account, you'll choose the type of bond you'd like to buy and the denomination. Both are available in penny increments between $25 and $10,000. Your online account is where you can go to track your bonds' growth, make purchases, and reinvest.
Buy paper: You can purchase an additional $5,000 in paper I bonds using your IRS tax refund when you file your annual income tax return.
Once you have the bond, you decide how long you'll hold onto it, anywhere between one and 30 years. EE bonds double in value after 20 years — but you'll need to wait the full term to get the maximum return on either type of bond. Cash in before that point, and your return will be based on a maturation schedule that rises over the course of the bond's term.
Savings bonds provide a safe haven for your money since they're backed by the US government. While Series EE bonds double in value if you hold them for at least 20 years, Series I bonds could be more beneficial if inflation continues to rise while savings rates stay low.
"Instead of keeping mid-term cash in a savings account or CD," Kelly says, "one could hold the money in a Series I bond and hedge against inflation while getting a higher rate."
Either way, both types of bonds are typically seen as a long-term investment — so consider including these in your portfolio if you have time to let them fully mature.
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What Is a Savings Bond? Definition, Pros & Cons, and How to Buy
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An alleged Oath Keeper was charged with sedition following the Jan. 6 attack on the Capitol.
Police discovered Thomas Caldwell had a 'death list' that included the name of a Georgia election official.
Caldwell's lawyer argued the list was part of a "doodle pad" that should be excluded from evidence.
While searching alleged Oath Keeper Thomas Caldwell's home following the attack on the US Capitol just three days prior, police found a "death list" that included the name of a Georgia election official and their family member.
But in court documents viewed by Insider, Caldwell's lawyer, David Fischer, argued the list is a "doodle pad."
"From the search, law enforcement recovered a document that included the words "DEATH LIST" hand-written across the top with the name of a Georgia election official, a purported family member of that official, and the county and state associated with that official all hand-written underneath," read the government's motion regarding trial evidence.
The document also included hand-written notes relevant to the defendants' preparations in advance of January 6, according to the government motion.
"Moreover, the words 'death list' are separated from the names of the election workers by scribbled writing, and were clearly written with a different pen. There are no other names on the 'list,' because it is not a list. Importantly, the names written on the doodle pad were not, as the Government claims, election 'officials' but, rather, temporary election workers."
Fischer added that because the evidence would "highly prejudicial" to the defendant, there is "no need" for it to be introduced to a jury.
Caldwell is one of nine alleged Oath Keepers charged with seditious conspiracy following the Jan. 6 attack on the Capitol. He is also charged with obstructing an official proceeding, destruction of government property, and unlawful entry on restricted buildings or grounds.
In its case against Caldwell, the government argues the Navy veteran — who once worked as a section chief for the FBI — holds a leadership role in the far-right anti-government militia called the Oath Keepers and was known to members as "Commander Tom."
On January 6, Caldwell reportedly started a Facebook Live video taken from inside the Capitol building. According to charging documents, He also sent multiple Facebook messages to others reading, "We are surging forward. Doors breached" and "inside." He described the experience as "storming the castle."
Caldwell has denied being a member of the Oath Keepers, as well as all charges against him.
David Fischer, attorney for Caldwell, did not immediately respond to Insider's request for comment.
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Oath Keeper Thomas Caldwell Had a 'Death List' With the Name of Election Official
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How $10,000 see-through refrigerators went from grocery-store staples to millionaires' showpieces
Sub-Zero makes stainless-steel and panel-ready glass-door refrigerators.
Celebrities and the wealthy are embracing glass-front refrigerators in the Instagram age.
Custom fridges from luxury brands like True Residential and Sub-Zero start at about $10,000.
They're cropping up everywhere, from Los Angeles mansions to $25 million Manhattan townhouses.
In May, Kris Jenner's refrigerator became a star.
Photographed for her daughter Kourtney Kardashian's lifestyle website Poosh, the 66-year-old matriarch's glass-front fridge — which cost about $15,000 — clearly showcases enough green vegetables to clean out a Whole Foods. Adding to the aesthetically pleasing vibes are crisp heads of Romaine standing tall in lucite bins alongside drawers full of plump loose grapes and rows of neatly arranged pears and green peppers.
In an era where every last detail of life is posted on social media, the fridge has evolved from a mere utilitarian appliance to a literal window into the aspirational health and wellness habits of celebrities and wealthy people.
Glass-door refrigerators have long played a crucial role in helping restaurant kitchens stay organized by making items visually accessible. But in the past decade, this hallmark of the service industry made the jump to the residential sphere, becoming a kitchen status item.
So why the turn to glass-door refrigerators? The obsession with presenting Instagram-ready interiors when everyone was stuck at home, for one. Jenner's friend and the mother of supermodels Bella and Gigi, Yolanda Hadid, hit the trend early, with a bespoke glass-door fridge with its own Instagram account. Meanwhile, television shows like "Get Organized With The Home Edit" and "Tidying Up With Marie Kondo" have elevated tidiness — a requisite attribute when last night's meal is on display — into a virtue.
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As people hunkered down earlier in the pandemic, they spent more on their homes. Sales of luxury major kitchen appliances, including refrigerators, cooktops, and ovens, increased 45% in the US year over year from January through September 2021, according to the global market-insights company the NPD Group. Bain and Co.'s 2021 report on luxury spending found that the high-end furniture-and-houseware market reached roughly $46 billion, up 13 to 15% from 2020, and even up 6 to 8% over the flush pre-pandemic year of 2019.
These appliances prioritize form, not function. Now pricey custom fridges are the sleeper hit of the status kitchen, giving one-percenters something to show off to their equally elite neighbors.
"It's mostly aesthetics, especially at the luxury price point," said Chelsea McClaran, the brand manager for True Residential, which made Jenner's fridge. "Most of our customers are not looking to keep up with the Joneses. They're looking to have something that nobody's ever seen before."
The glass-front-fridge trailblazer speaks out
A big part of True Residential's business — 60% of full-size models, in fact — is its custom work, where buyers can choose to have their refrigerator powder-coated to any color imaginable, McClaran said. That adds between $2,000 and $3,500 to the already hefty price tag. True's glass-door refrigerators start at $12,500, and many cost much more.
But that's a drop in the bucket for the typical True Residential buyer. The brand, which started in the commercial-refrigeration industry and dove into residential in 2017, said it didn't keep specific stats on its buyers. But McClaran shared some observations on the demographic drawn to glass-front fridges.
A rep for True Residential said 60% of its full-size-refrigerator buyers choose a custom color.
True Residential
"Incomewise, they're definitely within the top half-percent to top 1% of annual household income," she said. "You're talking about a $25,000 refrigerator."
The appliances often appeal to people who host big gatherings at their homes.
"It serves a really good purpose for people that entertain often," McClaran said, adding: "You're telling people to help themselves.
"People really take that to heart when it's a glass-door fridge. It's just inviting by nature."
A SoCal interior designer recommends glass-front fridges to all of her clients
The Newport Beach, California, interior designer Shannon McLaren owns a 36-inch column Sub-Zero glass-front refrigerator that starts at $9,250. For McLaren, its use is more about creating visual breaks in the room.
McLaren said she usually recommended glass-door refrigerators to clients of her design studio, Prairie Home Styling. While she said received some pushback — it's a mess in there; everyone will judge me — the see-through models do win over customers about 70% of the time.
Shannon McLaren opted for a $9,250 panel-ready Sub-Zero in her kitchen.
Mellon Studio
"What I love about the glass is that it kind of is a break in the cabinetry, even though it's a very tall, massive portion of a kitchen," McLaren said. "It's like how a window breaks up a wall."
These appliances have 'that wow factor'
When a West Village, Manhattan, townhouse owned by the oil heir Aileen Getty was gut-renovated in 2019, she installed a double Sub-Zero glass-front fridge in the kitchen alongside more traditional touches, like white subway tile and a farmhouse sink.
The townhouse is now on the market for $25 million.
The Compass real-estate agent Carl Gambino said that out of the handful of times he'd walked prospective buyers through the property, people commented on its massive refrigerators.
"I heard one person say it was exceptionally brilliant yet so simple," Gambino said.
Sub-Zero, which also makes the coveted Wolf Ranges and gleaming wine fridges, is used to catering to an elite clientele.
"The main driver for us — for our refrigerators — is that wow factor," Jeff Sweet, Sub-Zero's corporate manager of product marketing, said.
More: Interiors Home Real Estate Kris Jenner
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2022-07-30T10:02:32Z
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Glass Door Refrigerators: the New Luxury Staple of the Status Kitchen
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https://www.businessinsider.com/glass-door-refrigerators-luxury-appliances-true-residential-subzero-2022-7
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https://www.businessinsider.com/glass-door-refrigerators-luxury-appliances-true-residential-subzero-2022-7
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Sandra Lee, also known as Dr Pimple Popper, has shot to fame as a dermatologist on YouTube and TLC.
Dola Budazhapova
Dr Sandra Lee is better known as Dr Pimple Popper, a YouTube and "ZitTok" phenomenon.
Lee told Insider about her success as a pimple popper raking in more than 2 billion YouTube views.
But Lee said there wasn't as much money in her work as people might think, and it can be stressful.
A low-definition camera focuses on an elderly woman's deep, wide blackhead before a hand wearing surgical gloves and holding a pair of tweezers comes into view.
Dr Pimple Popper is about to remove the blackhead. In her soothing voice she says "it's like a little plug in a faucet – do you wanna see?" before presenting her findings to the recoiling patient. The video has been viewed 75 million times.
The doctor, whose real name is Sandra Lee, has become a household name by carving out blackheads, cysts, and benign tumors from willing patients to a mass audience of "popaholics". Now she is juggling her clinic in Upland, California with her social media channels, a hit show on TLC, and a skincare brand.
'Car crash TV'
In the 12 years since she started her YouTube channel, the dermatologist's videos have had more than 2 billion views. TLC, which airs her show Dr Pimple Popper, gets millions more views from Dr Pimple Popper on its own YouTube channel.
Lee, whose father and husband are also dermatologists, still struggles to comprehend the popularity of her videos. She describes it as "car crash television", because her 7.5 million "popaholic" subscribers cannot look away. Some watch it to be grossed out, while others find it relaxing, she says.
"There's a sense of satisfaction, where you're getting rid of something that shouldn't be there," Lee tells Insider. "A lot of people focus on it because of this big splash that can happen or this craziness that occurs, but a lot of people actually watch my videos to calm them down."
Lee's reactions are in sharp contrast to the content on screen. Referring to the interior of the oily mounds as "boiled eggs" and "pearls from an oyster", Lee has become notorious just as much for her soothing voice behind the camera as her actions in front of it.
She thinks that her bedside manner is as responsible for her success as the graphic nature of her videos.
"You're standing over somebody with a knife on a table, so part of it is making things light-hearted," she said, adding even before the TV show people would travel from across the US to see her because they felt like they knew her.
Lee says she knows people in high stress jobs, such as nurses, doctors, and police officers, watch her videos to calm them down.
Now her nascent TikTok channel, where she conquers #ZitTok, has more than 15 million followers and has raked in more than 180 million likes, with Lee doing a combination of quick bursts and reaction videos.
@drpimplepopper #duet with @estheticsbyestep #pimple Try NOT to pops those pustules! #drpimplepopper #SLMDskincare ♬ Aesthetic - Tollan Kim
A skincare brand and a hit show, but not much revenue
Since her fame exploded, Lee says her job had changed a lot, and not always in ways she would like. Filming days involve her tackling increasingly rare skin conditions to attract more viewers and she wonders when a blackhead will stop being "the biggest ever." Those obligations have cut into the time she can spend with her regular patients.
Lee now juggles her time between her social media accounts, her channel, and her clinic. "When you have a lot of success that certainly comes with a lot of stress, and sometimes the success can be detrimental to you," she says.
It's also not proved to be as lucrative as people might suspect.
Lee told Men's Health magazine in 2019 she wasn't making much money from her TV show. She declined to discuss her income with Insider, but also suggested her YouTube views didn't make as much as some creators because advertisers were less keen to appear beside "explosions."
Her skincare brand, SLMD, that was launched in 2017, is aimed at those dealing with acne, blemishes and other conditions and could help generate more income as well.
Despite the stress, Lee can't help returning to doing what she loves most: squeezing blackheads and fixing skin conditions.
More: Weekend BI UK Dr Pimple Popper dr pimple popper season 5 TLC
Dermatologists
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2022-07-30T10:02:37Z
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How Sandra Lee Became Dr Pimple Popper and Conquered 'ZitTok'
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https://www.businessinsider.com/how-sandra-lee-became-dr-pimple-popper-and-conquered-zittok-2022-7
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https://www.businessinsider.com/how-sandra-lee-became-dr-pimple-popper-and-conquered-zittok-2022-7
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A 42-year market vet lays out 3 reasons why the current stock market sell-off resembles some of the biggest crashes of the last 60 years — and says stocks could 'easily' fall another 25%
Stocks have rallied 12% since June 16.
But they have more downside ahead, according to Bill Smead.
Smead compared the current sell-off to three past bear markets with similar attributes.
To Bill Smead, the founder and CIO of Smead Capital Management, the current stock market sell-off resembles some of the biggest bear markets of the last 60 years.
That's bad news for investors, many of whom hope stocks have hit a sustainable bottom after climbing 12% since mid-June.
Smead, who started at the now bankrupt investment bank Drexel Burnham Lambert in 1980, said in a commentary on Tuesday that he thinks the S&P 500 "could easily" fall another 15-25%, which would mean a peak-to-trough decline of up to 36%, putting the sell-off in the company of some famous market drops.
That's because there are three main qualities present in the current environment that were in play in the 1968-1970 (-36%), 1973-1974 (-48.2%), and 2000-2003 (-40.1%) bear markets.
The first is the euphoric mood that gripped investors following the March 2020 bottom through 2021. In February 2021, he told Insider that the speculation that was taking place — via areas like crypto, meme stocks, and the FAANGs — was "a stupidity episode among the most legendary of all-time."
Some investors seem to still be clinging to their optimism, but this is a mistake, Smead said.
"Should you be buying stocks because of how far they have fallen like folks did all the way down in 2000-2003? Does down 75% from the high make a stock a value stock? Will a seven-month bear market cure the sins associated with the mania of the last five years? We think not," Smead wrote.
This is because stock valuations remain too high. The S&P 500's price-to-earnings ratio was at 24 times earnings in January 2022. The historical average for the index is in the 14-17 range. Stocks were historically expensive in all three market sell-offs Smead mentioned as well.
Then there's the presence of a hawkish Federal Reserve. Inflation is at its highest level since 1981 (9.1%), and the Fed is aggressively tightening policy to cool it. This bodes poorly for corporate earnings and economic growth, as the Fed hopes to dampen consumer demand. Experts at many Wall Street firms like Goldman Sachs and Morgan Stanley are warning that earnings expectations for the rest of the year and next year still need to come down.
Lastly, Smead pointed out that in the three prior sell-offs mentioned, the bear markets dragged on for at least a year and a half from their peaks. The current decline's peak was seven months ago, on January 3.
"It appears that history would tell us that this bear market has additional time to claw investors since the most analogous prior bears lasted a minimum of 18 months," Smead said. "The S&P 500 index could easily take an additional 15-25% out of current prices as the Fed tightens credit and P/E ratios compact."
Smead's views on where the market goes next match those of some of Wall Street's biggest strategists.
Mike Wilson, Morgan Stanley's chief US equity strategist, said this week that stocks would fall another 20% if the US economy enters into a recession. He said there will likely be less of a gap between when the Fed stops hiking and when the economy enters a recession.
"I think, ultimately, this will be a trap," Wilson said.
Savita Subramanian, the head of US equity and quantitative strategy at Bank of America, made a similar prediction in July as well, calling for a recession and as much as 20% further downside.
Subramanian said the bank's derivatives team "believes equities are not adequately discounting a recession if we are already in one."
Still, these are the worst-case scenarios for two strategists who are already among the most bearish on Wall Street. Subramanian's target for the S&P 500 this year is 3,600, and Wilson's is 3,900. Most strategists maintain targets above 4,000.
But again, with the Fed showing no signs that they'll back off of their hawkish policy tilt until inflation drops in a significant way, many are calling for downward revisions in earnings estimates.
Some, too, are calling for valuations to drop even further, despite the fact that the sell-off thus far has been all valuation, not earnings, driven.
Michael Lebowitz, a portfolio manager at RIA Advisors, told Insider earlier this month that high inflation correlates with a sustained drop in valuations.
The market's cyclically adjusted price-to-earnings (CAPE) ratio currently sits at 28, above the long-term average of 20, he said. When inflation has been at 9% in the past, the market's CAPE ratio has typically been between 5 and 15.
Lebowitz said he would not rule out the S&P 500 falling to 2,600.
The direction of stocks going forward seems to hinge on the direction of inflation, how the Fed reacts, and how the economy responds to both inflation and central bank policy.
The US economy posted its second straight quarter of negative GDP growth in Q2, another sign that the economy is weakening amid a Fed tightening spree and crippling inflation. But many believe inflation peaked in July as commodity prices fall, and consumer spending remains positive year-over-year. The job market also continues to make impressive gains, and the unemployment rate is still at a historically low 3.6%.
If inflation starts to fall in a big way, the Fed could show signs of a dovish pivot in the second half of the year. If it doesn't, stocks are likely in for a difficult stretch ahead as the Fed shows a high resolve for crushing rising prices.
"They're going to keep monetary policy tight, even if inflation peaks," said Desmond Lachman, a senior fellow at the American Enterprise Institute and a former deputy director at the International Monetary Fund, in an interview with Insider this week. "They're likely to keep the brakes on because they don't want to screw up on inflation again."
This in mind, stocks could be headed where Smead thinks they'll go — further down the bear market path.
More: Investing Stock Market Crash Stock Market Correction
Stock Market Sell-Off
Smead Capital
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2022-07-30T10:02:54Z
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Stock Market Crash: Expert Warns of Another 25% Downside
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https://www.businessinsider.com/stock-market-crash-expert-warns-further-downside-ahead-bear-market-2022-7
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https://www.businessinsider.com/stock-market-crash-expert-warns-further-downside-ahead-bear-market-2022-7
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The F-35A Lightning II.
The US Air Force has grounded its fleet of F-35 jets over concerns about the ejector seats.
Bloomberg reported that the issue involved the seats' explosive cartridges made by Martin-Baker.
The USAF has the world's biggest fleet of the Lockheed Martin fighter jets.
The US Air Force has temporarily grounded its fleet of Lockheed Martin F-35 fighter amid concerns that the ejector may be faulty.
Bloomberg reported that a potentially faulty component in the mechanism that could endanger pilots in an emergency was being investigated.
Since Thursday, Air Force has grounded almost 300 jets, according to the report.
An Air Force spokeswoman, Alexi Worley, told Bloomberg the issue involved the explosive cartridges inside ejection seats that propel both the seat and the pilot from the jet.
Inspections of all the cartridges began on July 19 and all F-35 jets were grounded on July 29 to speed up the process.
The data gathered will be used to determine when operations can resume, she said.
An F-35A Lightning II and two F-16 Fighting Falcons.
The jets all have ejector seats made by Martin-Baker Aircraft.
Steve Roberts of Martin-Baker told Bloomberg only F-35s were affected. He confirmed an "anomaly" was found with one of the seat cartridge devices in the fighter in April. "This was quickly traced back to a gap in the manufacturing process which was addressed and changed."
"Outside the F-35, not a single anomaly has been discovered worldwide as a result of the forensic investigation which continues at pace," Roberts added.
The US Air Force has the world's largest F-35 fleet, with 348 jets. It says they have the most advanced sensor suite of any fighter.
The USAF and Martin-Baker did not immediately respond to Insider's request for comment.
More: Weekend BI UK F35 Fighter Jets Air Force
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2022-07-30T11:51:25Z
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Air Force Grounds F-35 Fighter Jet Fleet Over Faulty Ejector Seats
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https://www.businessinsider.com/air-force-grounds-f35-fleet-temporarily-over-ejection-seat-issue-2022-7
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https://www.businessinsider.com/air-force-grounds-f35-fleet-temporarily-over-ejection-seat-issue-2022-7
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A profitable tax loophole for real estate could be axed in Manchin's new deal to ease inflation
Juliana Kaplan and Alcynna Lloyd
When real estate is sold, it's typically taxed at a capital gains rate, which is lower than an income tax. That could be changing.
Rick Gomez/Getty Images
Sen. Joe Manchin struck a surprise deal on Wednesday with Senate Majority Leader Chuck Schumer.
The deal, which would put billions toward climate spending, is offset by targeted taxes.
One of those tax changes is ending a loophole available to real estate investors.
A surprise spending deal by Democrats might lead to heftier tax bills for some ultra-wealthy real estate investors.
On Wednesday night, key centrist Democrat Senator Joe Manchin released a statement that reverberated throughout the halls of Congress — and the pockets of high-earning investors: He had struck a deal with Senate Majority Leader Chuck Schumer, and part of it entailed closing up the carried interest loophole.
Carried interest essentially lets investors, especially private equity managers, pay a lower tax rate on their income. That's because, when they invest in a company, they may receive their cut of the profits through things like assets, rather than a check. When a long-held asset, like a stock or piece of real estate, is eventually sold, it's taxed at what's called the capital gains rate — a far lower rate than the straightforward income tax rate.
Some real estate managers "pay a much lower tax rate than others who make their living from bonuses and wages and salaries," according to Steve Rosenthal, a senior fellow at the Tax Policy Center, because their compensation is structured with carried interest.
While closing the rule may not have a negative impact on the entire real estate industry, Bobby Fijan, a real estate developer and founder of FORM, says it could transform how real estate investors structure their businesses.
"What I expect to happen is that it will disincentivize risk taking or it will lower net profits for developers," he told Insider. "I anticipate it will have a significant impact in the way that real estate developers structure their fees."
Fijan says carried interest has been very valuable for real estate developers as it's been a profitable loophole — but he does not think Manchin's proposal is unfair.
"I don't think it's an awful thing being done," he said. "Real estate has gotten special status, so it is not an unreasonable loophole to close."
The deal that Manchin has struck — called the Inflation Reduction Act of 2022 — would extend the holding period for carried interest for five years. In simpler terms, that means that you can't get the preferential tax rate unless you wait at least five years to sell off your assets.
The Inflation Reduction Act is far from a done deal, though. While most Democrats seem to be onboard, the specter of Arizona Sen. Kyrsten Sinema looms. Sinema, the other key centrist vote in Democrats' razor-thin majority, has repeatedly pushed back on any tax hikes. So far, Sinema has dodged inquiries about whether the package has her stamp of approval.
"I know this has been something that Sen. Sinema had concerns about," Senate Finance Committee member and GOP whip John Cornyn of Texas told Insider's Warren Rojas. "And I don't think they checked with her beforehand,"
More: Economy Real Estate Carried Interest Real estate investor
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2022-07-30T11:51:43Z
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Carried Interest Loophole to Close in Manchin's New Inflation Deal, Effects on Real Estate Investments
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https://www.businessinsider.com/carried-interest-loophole-real-estate-investors-inflation-manchin-deal-2022-7
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https://www.businessinsider.com/carried-interest-loophole-real-estate-investors-inflation-manchin-deal-2022-7
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Elon Musk could use the reported airport for his SpaceX, Tesla, and Boring Company operations.
Elon Musk is planning to build his own private airport in Texas, sources told the Austonia website.
It reported that conceptual plans for an airfield east of Austin had been confirmed.
Musk's airport could service his Texas-based companies Tesla, SpaceX, and the Boring Company.
Elon Musk is planning to build his own private airport in Texas, multiple sources told Austonia.
The local publication cited individuals who said that plans for an airport east of Austin, near Bastrop, had been confirmed although the exact location and timetable were unknown.
Musk has based several of his companies, including SpaceX and the Boring Company, in Texas, and moved his Tesla HQ from Silicon Valley to Texas in December. The airport could be used to service and develop these operations.
Musk and his companies own thousands of acres of land in central Texas, including 2,100 acres for Giga Texas, while SpaceX and the Boring Company have also been acquiring land in recent years.
It's unclear what the scope of the airport would be, though nearby Austin Executive Airport spans 585 acres.
In a speech after opening Giga Texas, Musk boasted how the site was a 10-minute drive from Austin-Bergstrom International Airport.
Musk is spending more time in Texas as the company ramps up ramping up production at his gigafactory there, which he recently described as a "giant money furnace".
Last month Austonia reported that Musk, who flies a Gulfstream G650ER, was planning to upgrade to the G700, which has a base price of $78 million.
Building a private airport requires approval from the FAA, as well as passing environmental standards set by the agency.
Local regulations may also apply, but Bastrop council and its economic development organization told Insider they were not yet aware of any plans.
A representative for Musk didn't immediately respond to a request for comment.
More: Weekend BI UK Elon Musk Elon Musk tesla SpaceX
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2022-07-30T11:51:55Z
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Elon Musk Is Planning His Own Private Airport in Texas, Report Says
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https://www.businessinsider.com/elon-musk-building-private-airport-texas-tesla-spacex-boring-co-2022-7
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https://www.businessinsider.com/elon-musk-building-private-airport-texas-tesla-spacex-boring-co-2022-7
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Home prices are still increasing despite a cooling housing market.
But price declines lie ahead, many experts argue.
Insider recently spoke with three experts calling for median home prices to fall.
The housing market is starting to cool off in a big way thanks to skyrocketing mortgage rates this year.
Homebuilder sentiment is at its second-lowest level in 37 years thanks to tanking demand — existing home sales were down 14% in June, year-over-year.
Still, home prices have yet to take a hit. The median price of homes sold in the US hit an all-time high of $440,300 in the second quarter.
But price declines are coming, according to a growing chorus of economists and industry experts.
Recently, Insider profiled the views of three experts calling for median home price drops ahead.
Homes in Austin, Texas.
Michael Cook, an investment analyst at Penn Mutual Asset Management, told Insider that he thinks prices trend back toward their levels before the pandemic began, especially in some of the hottest markets in the county.
"The U.S. housing market is due for a reset, given the extraordinary home price growth seen since the onset of the pandemic," Cook said.
José Torres, a senior economist at Interactive Brokers, said he thinks supply and demand dynamics in the market are moving in such a way that creates a perfect recipe for home price declines.
"A perfect storm is brewing in the real estate market due to near decade high construction levels and plummeting demand," Torres said.
'The damage is likely to have already been done': A former IMF official says that substantial home price declines are coming in the US housing market as demand-crushing dynamics continue to put buyers on the sidelines
Workers are seen as new construction takes place at the Umbria a Lennar Corp. project on September 19, 2011 in Miami, Florida.
Desmond Lachman, senior fellow at the American Enterprise Institute and a former deputy director at the International Monetary Fund, broke down for Insider why prices will drop 15-20% as buyer demand gets crushed by rising interest rates and a still-hawkish Fed.
"They're going to keep monetary policy tight, even if inflation peaks," Lachman said.
More: Investing Housing Market Real Estate housing market crash
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2022-07-30T11:52:13Z
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Home Price Declines Are Coming, Says a Growing Chorus of Experts
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https://www.businessinsider.com/housing-market-crash-coming-mortgage-rates-home-prices-drop-analysis-2022-7
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https://www.businessinsider.com/housing-market-crash-coming-mortgage-rates-home-prices-drop-analysis-2022-7
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Today's mortgage and refinance rates: July 30, 2022 | Rates plunge
The average 30-year fixed mortgage rate has dropped below 5% for the first time since early June. While lower rates may give hopeful homebuyers some breathing room after months of sharp increases, they reason they're dropping has to do with the current uncertainty in the economy.
The Federal Reserve has been raising interest rates to combat inflation, and some investors and economists are concerned that if it raises rates too high and too fast, it could trigger a recession. This fear has caused mortgage rates to trend lower.
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2022-07-30T11:52:37Z
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Today's Mortgage, Refinance Rates: July 30, 2022 | Rates Plunge
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https://www.businessinsider.com/personal-finance/best-mortgage-refinance-rates-today-saturday-july-30-2022-7
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https://www.businessinsider.com/personal-finance/best-mortgage-refinance-rates-today-saturday-july-30-2022-7
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A Canadian company is launching a luxury psychedelic retreat with private cabins, psilocybin, and cannabis — see inside Dimensions Algonquin Highlands
Renderings by DesignAgency
Dimensions Algonquin Highlands will begin welcoming its first guests in July.
The property will have private cabins, on-site activities, and psychedelic-based ceremonies.
The psychedelic wellness market has recently skyrocketed in popularity.
Luxury travel no longer exclusively means first class flights, hotel suites with hot tubs, and private butlers. It now means cannabis, cacao, and psilocybin.
Singapore Airlines/Mike Fuchslocher/Shutterstock
Over the past few years, the psychedelic wellness market has skyrocketed in popularity.
IStock; Vicky Leta
In 2020, analysts predicted that the market could exceed over $100 billion. And now, startups, investors, and even universities are scrambling to enter the increasingly accepted psychedelic health treatment industry.
Amid this boom, in July, Canada-based Dimensions will begin welcoming guests to its first Dimensions Algonquin Highlands location, a luxurious 45-acre resort centered around wellness and legal psychedelics, including psilocybin if the user has been approved by the Canadian government.
The Dimensions team was first inspired to put a luxurious spin on psychedelic retreats because some people "don't want to go to Peru and put a yoga mat on a dirt floor," Christopher Dawson, the cofounder and CEO of Dimensions, told Insider in an email interview.
At Dimensions Algonquin Highlands, you probably won't be finding any "yoga marts on dirt floors."
Instead, Dimensions calls the upcoming Canada location a "psychedelic healing retreat," according to a press release.
The property — located about a three hour drive from Toronto — will have 17 modern 450-square-foot cabins with views of nature, a dining building for high-end meals, and a spa.
In line with Dimension's holistic approach to wellness, there will also be what it calls a meditation maze, scent garden, and access to outdoor activities like hiking and cross-country skiing depending on the season.
All of these amenities probably make Dimensions Algonquin Highlands sound like the average luxury resort.
But unlike the typical getaway, Dimensions' guests will have access to psychedelic therapists and ceremonies led by "Plant Elders" who will assist with "personal healing work" and music, according to the press release.
Dimensions' program is segmented into three sections: preparation, the actual psychedelic retreat, and "post-retreat integration."
It's no ayahuasca getaway in a totally remote destination, but the ceremonies will still "create new experiences that begin to change the brain and nervous system, and develop a new mental program of how [participants] see themselves and the world," Dawson said.
At a recently announced two-time retreat in Jamaica, the ceremonies will focus on psilocybin.
Source: Dimensions Retreats
In Canada, cannabis will be the "psychedelic plant medicine of choice," Dawson said, predicting guests will stay on-site between a couple of days up to two weeks.
In conjunction with these ceremonies, Dimensions will also offer holistic programs to "support" the psychedelic use, like yoga, acupuncture, reiki, qigong, and sound therapy.
Dawson says the team is primarily targeting visitors who are wealthy, older, or can pay for the retreat with help from a third party.
"Gen Zers and millennials will be interested if they ... figure out a way to afford," Dawson said.
The Canada location isn't open yet, but the brand already has plans to expand internationally to Costa Rica and Mexico, although these retreats won't be on properties built by Dimensions.
According to Dawson, the company can serve as a "turnkey solution" to bring its holistic services to existing hospitality properties.
"There's a movement across the globe from the medical community, general public, and those with mental health issues that haven't responded to treatment," Dawson said. "All of these groups are pushing for this funding, and when you add business into the mix, it is only a matter of time."
More: Travel Luxury Travel Psychedelics Hospitality
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2022-07-30T11:52:43Z
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Photos: a Canadian Company Is Launching a Luxury Psychedelic Retreat
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https://www.businessinsider.com/photos-canadian-company-launching-luxury-psychedelic-marijuana-psilocybin-cacao-retreat-2022-7
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https://www.businessinsider.com/photos-canadian-company-launching-luxury-psychedelic-marijuana-psilocybin-cacao-retreat-2022-7
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