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04e052da37542c05c91e6e95f8a16351 | https://www.cnbc.com/2019/03/27/palantir-in-multi-million-dollar-pentagon-deal-ipo-on-horizon.html | Peter Thiel's company Palantir just won a major Pentagon contract, beating out traditional military vendors | Peter Thiel's company Palantir just won a major Pentagon contract, beating out traditional military vendors
Alexander Karp, CEO of Palantir Technologies Inc.Getty Images
Palantir Technologies, a Silicon Valley data analytics company founded by Trump adviser Peter Thiel and with roots in the CIA-backed In-Q-Tel venture capital organization, has won a major Army contract worth up to $800 million, CNBC has confirmed.
It's the first time the venture-backed company has been named a "defense program of record." Programs of record are essentially the biggest, multi-year projects awarded by the Pentagon.
The contract would require Palantir to build an intelligence system to aid soldiers in remote environments, called an Army Distributed Common Ground System, known as a DCGS-A. It was previously reported by the Washington Post.
Palantir, which has been rumored to be close to an initial public offering, beat out Raytheon, a more traditional defense contractor without Palantir's Silicon Valley roots, a departure for the Army in terms of its biggest contracts.
"While we are disappointed in the Army's decision on this initial delivery order, it represents a relatively small number of systems. We will actively compete for future delivery orders as we continue to work closely with the Army to help them meet their intelligence needs," said Maureen Stevens, a Raytheon spokeswoman, via email. Stevens said Raytheon was awarded a DCGS-A 10-year contract last March, part of a "multiple delivery" plan by the Army. The Pentagon did not immediately respond to request for comment.
The deal would dwarf Palantir's most recent government contracts, including a $222 million award in 2016 from the Department of Defense's Special Operations Command (SOCOM). That sole-source award was for a technology and logistics software and support project called "All-Source Information Fusion," meant to bring together intelligence and other information gathered by SOCOM, which oversees the special operations units of all branches of the U.S. military.
Palantir's customers have included top-tier banks, government agencies, health-care firms and manufacturers in the automotive and aerospace industries. The company provides tools for visualizing and making use of huge swaths of data, using proprietary software. Financial industry analysts have been monitoring Palantir as an IPO candidate for 2019.
Thiel co-founded Palantir in 2003, and was the company's largest shareholder at its last round of funding in 2015, which valued it at $20 billion. The iconoclastic tech investor is worth $2.5 billion according to Forbes, and earned his fortune as an early leader of PayPal and investor in Facebook, where he sits on the board of directors. He was a prominent supporter of Trump during the 2016 presidential campaign, and has advised the administration informally on technology and science since then.
VIDEO15:1315:13Watch CNBC's full interview with Palantir CEO Alex KarpDavos - World Economic Forum
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f1a9340befe11d6c8580a880aa714a4d | https://www.cnbc.com/2019/03/27/us-approved-secret-nuclear-power-work-for-saudi-arabia-reuters.html | Trump administration approves secret nuclear power work for Saudi Arabia | Trump administration approves secret nuclear power work for Saudi Arabia
VIDEO2:1902:19Trump administration approves secret nuclear power work for Saudi ArabiaWorldwide Exchange
U.S. Energy Secretary Rick Perry has approved six secret authorizations by companies to sell nuclear power technology and assistance to Saudi Arabia, according to a copy of a document seen by Reuters on Wednesday.
The Trump administration has quietly pursued a wider deal on sharing U.S. nuclear power technology with Saudi Arabia, which aims to build at least two nuclear power plants. Several countries including the United States, South Korea and Russia are in competition for that deal, and the winners are expected to be announced later this year by Saudi Arabia.
Perry's approvals, known as Part 810 authorizations, allow companies to do preliminary work on nuclear power ahead of the deal, but not ship equipment that would go into a plant, a source with knowledge of the agreements said on condition of anonymity. The approvals were first reported by the Daily Beast.
The Department of Energy's National Nuclear Security Administration (NNSA) said in the document that the companies had requested that the Trump administration keep the approvals secret. "In this case, each of the companies which received a specific authorization for (Saudi Arabia) have provided us written request that their authorization be withheld from public release," the NNSA said in the document.
The NNSA and the Department of Energy did not immediately respond to requests for comments.
Many U.S. lawmakers are concerned that sharing nuclear technology with Saudi Arabia could eventually lead to a nuclear arms race in the Middle East.
Saudi Crown Prince Mohammed bin Salman told CBS last year that the kingdom would develop nuclear weapons if its rival Iran did. In addition, the kingdom has occasionally pushed back against agreeing to U.S. standards that would block two paths to potentially making fissile material for nuclear weapons clandestinely: enriching uranium and reprocessing spent fuel.
Concern in Congress about sharing nuclear technology and knowledge with Saudi Arabia rose after Oct. 2, 2018 when U.S.-based journalist Jamal Khashoggi was killed in the Saudi consulate in Istanbul. The Part 810 authorizations were made after November 2017, but it was not clear from the document whether any of them were made after Khashoggi's killing.
Rep. Brad Sherman, D-Calif., called on Secretary of State Mike Pompeo during a congressional hearing on Wednesday to release the names of the companies that got the approvals by the middle of April, and Pompeo said he would look into it. Sherman also said the Trump administration has attempted to evade Congress on sharing nuclear power with the kingdom. Pompeo said the administration was working to ensure any shared technology nuclear power would not present proliferation risks.
Last month, Democratic House members alleged in a report that top White House aides ignored warnings they could be breaking the law as they worked with former U.S. officials in a group called IP3 International to advance a multibillion-dollar plan to build nuclear reactors in the Middle East, including Saudi Arabia.
IP3 did not immediately respond to a request for comment about whether it was one of the companies that got a Part 810 authorization.
Separately, the Government Accountability Office, the investigative arm of Congress, has accepted a request by Senators Marco Rubio, a Republican and Bob Menendez, a Democrat, to probe the administration's talks on a nuclear deal with Saudi, a GAO official who spoke on condition of anonymity, said on Wednesday.
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ef7dfe6791d94af92838c484b8734a09 | https://www.cnbc.com/2019/03/27/us-bonds-growth-fears-linger-after-yield-curve-inversion.html | US 10-year Treasury yield touches new 14-month low as yield curve continues to flatten | US 10-year Treasury yield touches new 14-month low as yield curve continues to flatten
U.S. government debt yields added to a steep March decline on Wednesday as the yield on the benchmark 10-year Treasury note returned to its lowest level since 2017.
The yield on the 3-month Treasury note, which remains 5 basis points above that of the 10-year, declined as more investors grew confident that the Federal Reserve will be forced to cut interest rates in 2019. Data showing the trade deficit narrowed lifted yields off their lows.
At 5:17 p.m. ET, the yield on the benchmark 10-year Treasury note, which moves inversely to price, was lower at around 2.381 percent, while the yield on the 30-year Treasury bond was also lower at 2.821 percent. The yield on the 3-month Treasury bill dropped 3 basis points to 2.434 percent.
The 10-year yield is down about 25 basis points since March 18.
VIDEO1:1401:14Futures Now: 10-year Treasury yields fallFutures Now
Global yields have retreated in March as a growing number of central banks are willing to hold interest rates low for significantly longer than investors had expected just a year ago. Though growth fears have dogged both China and much of Europe, lukewarm inflation prints in the United States have been enough to justify the Fed's argument for delaying increases to its overnight lending rate.
"There's definitely angst about global growth," said Thierry Wizman, global interest rates and currencies strategist at Macquarie Group. "The bad data from Germany last week and a dovish tone from the Fed has made some believe [yields] won't recover that soon."
Comments from Stephen Moore, who is expected to be nominated by President Donald Trump for an open seat at the Fed, may have also weighed on yields. He told The New York Times that he thinks the central bank should "immediately reverse course and cut rates by half a percentage point."
Moore is a distinguished visiting fellow at the Heritage Foundation and a current advisor to the president.
Following the Fed downgraded its outlook for the U.S. economy last week, domestic and international fixed-income yields have been under pressure. Yields on both the German 10-year bund as well as the Japanese 10-year traded in negative territory Wednesday; Germany sold 10-year bunds with negative yields for the first time since 2016.
The Treasury Department auctioned $41 billion in 5-year notes at a high yield of 2.172 percent. The bid-to-cover ratio, an indicator of demand, was 2.35. Indirect bidders, which include major central banks, were awarded 59 percent. Direct bidders, which includes domestic money managers, bought 17.2 percent.
Yields initially came of their lows Wednesday morning after the Commerce Department said that the trade deficit between the U.S. and its global peers pulled back in January to $51.15 billion.
China in particular helped reduce the balance shortfall as the deficit between Washington and Beijing decrease to $33.2 billion. Economists polled by Dow Jones had expected the balance to fall to $57 billion. Though a cursory calculation might suggest a boon to U.S. output, Wizman added that the deficit reduction could also suggest softer U.S. demand.
"Because imports into the U.S. were weak, some people are reading as a sign of weakness. Yes, it's conceivable straight math could add to the first-quarter GDP, but you don't know how to infer the demand side of the economy," he said.
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892d53b308acf0266cce5272192a57d7 | https://www.cnbc.com/2019/03/28/amy-klobuchar-proposes-infrastructure-plan-in-2020-challenge-to-trump.html | Democratic presidential candidate Amy Klobuchar wants to pay for her $1 trillion infrastructure plan by reversing some Trump corporate tax cuts | Democratic presidential candidate Amy Klobuchar wants to pay for her $1 trillion infrastructure plan by reversing some Trump corporate tax cuts
Democratic 2020 U.S. presidential candidate and U.S. Senator Amy Klobuchar (D-MN) speaks at the Center for American Progress (CAP) Action Fund forum on March 5, 2019.Jim Young | Reuters
Democratic presidential candidate Sen. Amy Klobuchar unveiled a $1 trillion plan to overhaul American infrastructure Thursday in a direct challenge to two of President Donald Trump's biggest priorities – his tax cuts, which became law, and his infrastructure plan, which has not come to fruition.
The Minnesota Democrat wants to combine $650 billion in federal funding with loan guarantees and tax subsidies to upgrade U.S. infrastructure, her campaign announced. She aims not only to repair roads, bridges, airports, railroads and schools, but also ensure "every household in America" has an internet connection by 2022. The senator's plan also calls for encouraging renewable energy and protecting U.S. infrastructure from climate change threats such as rising sea levels.
Klobuchar hopes to give an alternative to a $1 trillion infrastructure proposal put forward by Trump, who has not yet made progress on his pledge to overhaul U.S. infrastructure ahead of his 2020 re-election bid. Her campaign called Trump's proposal a "mirage" because it hopes to spur $1 trillion in public and private spending with $200 billion in federal money, less than a third of what she's proposing.
To fund her proposal, Klobuchar would reverse part of Trump's signature achievement in the White House: tax cuts.
She would raise the corporate tax rate to 25 percent from the current 21 percent, while "closing loopholes that encourage U.S. companies to move jobs and operations overseas, establishing a financial risk fee on our largest banks, and increasing efforts for tax enforcement." The 25 percent corporate tax rate would still be lower than the 35 percent that was in effect before Trump signed the Republican overhaul in December 2017.
Calls for infrastructure investment have increased from both major parties as concerns grow about disrepair and inefficiencies hamstringing the U.S. economy and costing lives. In April 2017, 76 percent of Americans said they support Trump's $1 trillion infrastructure plan, versus 12 percent who responded that they did not, according to a Gallup poll.
Still, infrastructure does not rank as high as other issues on voters' priority list. Asked late last year what the top priority should be for the new Congress, infrastructure tied for sixth after immigration, health care, the economy, the environment and impeachment of Trump, according to a Quinnipiac University poll.
During her campaign, Klobuchar has cited her own experience with crumbling infrastructure: the collapse of a Minneapolis bridge in 2007 that killed 13 people and injured 145.
Members of both major parties see infrastructure as an area of universal political appeal. Trump and House Speaker Nancy Pelosi have both cited it as a subject where they could cooperate in the current Congress, though they have not made significant progress toward passing a bill.
Klobuchar appears to be the first 2020 Democratic presidential candidate to propose a specific infrastructure plan. Former Vice President Joe Biden, who is considering a presidential bid, has started to craft an infrastructure plan that he could make part of his campaign.
Biden, who has long criticized the state of U.S. airports, would join Klobuchar as one of the more centrist Democratic candidates if he entered the race.
Klobuchar has trailed multiple rivals in every early Democratic primary poll. Biden, Sen. Bernie Sanders-I-Vt., Sen. Kamala Harris, D-Calif., Sen. Elizabeth Warren, D-Mass., and former Rep. Beto O'Rourke have led the pack in most surveys so far.
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b8912e6f38fe229fe148d8722803fe13 | https://www.cnbc.com/2019/03/28/as-lyft-ipo-nears-traders-wonder-whether-the-numbers-match-the-hype.html | As Lyft IPO nears, traders wonder whether the numbers match the hype | As Lyft IPO nears, traders wonder whether the numbers match the hype
Lyft IPO prospectusKate Rooney | CNBC
"I think buying new offerings in a hot market is something the average investor should not think about at all." said Warren Buffett on CNBC Thursday, when asked about buying into the Lyft IPO, which is scheduled to begin trading on Friday.
I got a call from a trader friend Thursday afternoon, someone who's been trading IPOs for a long time. Like a lot of traders, he's a bit baffled by the Lyft phenomenon.
"The economics are completely upside down, and their biggest competitor is coming in the next few months," the trader said. "And guys are just guys falling all over themselves to get in on the deal. And they can't get in. They're telling me, 'If I get 5,000 shares I'll be happy."
My friend, who must be anonymous, is trying to separate the Lyft fundamentals from the action of the markets in general. He understands that the IPO market is hot because it's been closed for four months, the stock market is up 12 percent this quarter, there's a very limited float of about 13 percent and Lyft is a well-known name.
But people are wondering whether the fundamentals justify the valuation. The company's last round of private funding last June valued it at $15 billion. Now the company seems to be looking at a valuation of about $22 billion, 50 percent higher in less than one year.
Have the fundamentals improved that much in a few months? Santosh Rao, who evaluates IPOs at Manhattan Venture Partners, says the improvements have been only marginal. "Fundamentals did pick up in the fourth quarter. They are getting more efficient with the drivers and the incentives. But there is a little bit of hype too. You see the squeeze, demand is way above supply."
Like many on the Street, Rao is trying to justify the nose-bleed prices Lyft is likely to command.
The biggest problem are the huge losses. The company had $2.2 billion in revenue last year with losses of $911 million.
And this is where the Wall Street guys really get into "magical thinking." Rao explained the reasoning: "Revenues grew 100 percent in 2018, but losses only grew about 40 percent. In that sense, the margins are improving. The sequential progression is improving."
Rao doesn't know when Lyft will make money, but he insists they have bought themselves a lot of time. "The cash burn was $350 million in 2018, but they have $2 billion in the bank, and they are going to raise another $2.5 billion or so in the IPO. So they have a little room. $4.5 billion divided by $350 million implies they have 10 years."
When pressed on all this "magical thinking," Rao admits, "A lot of investors just want growth at any price."
Ah, there it is. Not growth at a reasonable price, but growth at any price.
And this is where things can go terribly wrong.
All signs are pointing to a big gain on Lyft's first day of trading Friday.
In addition to demand, Art Cashin at UBS made an interesting observation about the timing. He noted that, perhaps not by coincidence, the Lyft IPO is coming on the last day of the quarter.
This means that those who would normally sell on the first day of trading, especially if the stock is up big, might be very reluctant to sell because the 13-F disclosure form they have to file in the next 90 days would show they don't own it, and if they want an Uber allocation the underwriters might hold that against them, arguing that they are not long term holders. That might help support the price throughout the day.
Once the show is over, let's see what happens. Let's see what happens in two or three months when another 50 or 60 IPOs come down the lane that are not as famous, and it all gets a little blurry.
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e4053da29ac4e0c05319cc2969917049 | https://www.cnbc.com/2019/03/28/credit-suisse-on-impact-of-us-china-trade-talks-on-asia-stocks.html | Trade talks are a bigger risk to Asia markets than the Fed: Credit Suisse | Trade talks are a bigger risk to Asia markets than the Fed: Credit Suisse
VIDEO2:4502:45US and China are motivated to reach a good outcome: Credit SuisseCredit Suisse Asian Investment Conference
While the U.S. Federal Reserve has captured a lot of investors' attention over the past week, it is the trade negotiations between Washington and Beijing that will have a greater impact on stock markets in Asia, Credit Suisse said on Thursday.
The Fed last week decided to hold interest rates steady — potentially for the rest of this year — and lowered its growth forecast for the U.S. economy. The central bank's moves were followed by an inversion in the U.S. Treasury yield curve, which is seen as an early indicator of a recession.
"I think the impact of the Fed on the markets currently in Asia is going to be significantly less than the talks that are happening now in Beijing," Neil Hosie, Credit Suisse's head of equities for Asia Pacific, told CNBC's Nancy Hungerford at the Credit Suisse Asian Investment Conference in Hong Kong.
Negotiators from the U.S. and China are scheduled to meet in Beijing for their next round of talks starting Thursday. After that, both sides are expected to hold meetings in Washington starting April 3. The two largest economies in the world are negotiating a trade deal after a tariff fight that started last year.
Chinese stocks have been the best performer in Asia this year after a battered 2018. The Shanghai composite jumped 21.21 percent so far this year, while the Shenzhen component rose 30.51 percent. The improvement was partly due to investor optimism that tensions between the U.S. and China would not become worse, said Hosie.
"The rally that we've seen in Chinese equities year to date is partially because of the optimism around getting a good outcome (on trade) but it's also valuation-led," he said, adding that Chinese stocks were trading "well below their historical valuation," which made them attractive.
"I think we're at a point where trade talks are incredibly important and any shock to that trade talk position could cause a bit of a pull back," Hosie said.
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168aae9f47ab7b8b3c1d12c18dc3bb6e | https://www.cnbc.com/2019/03/28/credit-suisse-to-investors-think-trends-with-brexit-america-first.html | As protectionism grows, Credit Suisse urges investors to think about 'super trends' | As protectionism grows, Credit Suisse urges investors to think about 'super trends'
Pro-Brexit protesters demonstrate outside the Houses of Parliament on March 13, 2019 in London, England.Dan Kitwood | Getty Images
With the rising wave of protectionism, there are more and more "angry societies" as countries increasingly look inward.
Therefore investors need to consider such major trends when making long term decisions, said Michael Strobaek, global chief investment officer at Credit Suisse.
Otherwise, they might be spending too much time focusing on the daily grind — technicalities such as the ups and downs of the S&P 500 stock index, bond yield curves, and what the Fed thinks, he said.
"I do believe that you need to think — certainly if you are a long term buy and hold investor — you need to think long term and try and turn off the screens ... watch what's going to happen in this world," Strobaek said Wednesday at the Credit Suisse Asian Investment Conference in Hong Kong. It's crucial that investors think hard about broader developments he called "super trends."
Among those "super trends" that the investment bank has identified are increasingly "angry societies" illustrated by phenomena such as the rise of U.S. President Donald Trump's "America First" thinking and Brexit in Britain.
"For us, angry societies means there are ruptures in the liberal democratic model that we all have grown up to believe is the only real surviving model of all," Strobaek said.
"We are living through a time and period whereby democracies are undergoing fundamental challenges and changes," he added. "And what it means is that ... countries will begin focusing themselves on themselves."
While Strobaek was quick to stress that he does not advocate any investments that "have a bad or mean purpose for people and societies," it's undeniable that countries will be looking to protect themselves, he said.
That means companies involved in security, defense and cyber security are likely set to grow, he said.
Citing terrorist attacks in Europe as one factor, Strobaek said "there is a substantial need for further spending on defense and security."
"Investment opportunities in this space, I think, for the next five to 10 years are going to explode in potential," he concluded.
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6a8cde45e25a275e1b46ca7f6ef51910 | https://www.cnbc.com/2019/03/28/japan-needs-foreign-workers-as-population-ages-abe-aide-tomomi-inada.html | Japan needs more foreign workers, Abe aide tells investors | Japan needs more foreign workers, Abe aide tells investors
Tomomi Inada, a key advisor to Japanese Prime Minister Shinzo Abe.Akio Kon | Bloomberg | Getty Images
Japan has ample room to accept more foreign labor to help fill a critical and widening demographic gap that threatens its future prosperity, said a key advisor to Japanese Prime Minister Shinzo Abe on Wednesday.
Japan's shrinking and aging population is the biggest structural challenge that the country faces, according to Tomomi Inada, a member of the Japanese parliament and a former defense minister, who has prime ministerial ambitions.
The country is the world's third-largest economy and a key member of the Group of 20 nations, but currently faces a harsh reality as its population is aging rapidly and the birth rate declines.
During an address at the Credit Suisse Asian Investment Conference in Hong Kong on Wednesday, Inada cited Japanese statistics showing that the country's working age population will fall by about 1.1 percent a year over the next 50 years.
"This is going to put a huge burden on the economy," said Inada, who is a special aide to Abe in his capacity as president of the ruling Liberal Democratic Party.
Abe's government, in power for more than six years, has tried various measures — including tax breaks and other incentives — to boost capital investment and research and development, Inada said. It is also trying to improve opportunities for women and older workers.
"Nevertheless, the shortage of workers remains acute," she said, adding the administration has taken "active steps" to bring in workers from overseas through a new law passed by parliament last year, that could see 350,000 new foreign laborers over the next five years.
I'm often asked why 'right wingers like Abe and Inada' want to increase the number of foreign laborers ... In fact neither Abe nor myself are right-wing. We are conservative.Tomomi InadaJapanese lawmaker
Foreign workers have long been visible in Japan, often as students, trainees or people without proper visas and thus prone to exploitation. Inada said the new law will help end such abuses, as well as help boost the economy.
"Foreigners at present account for only around 2 percent of Japan's labor market," she said. "That compares to over 10 percent in other major developed economies, meaning that we have abundant capacity to take in more."
The issue is a controversial one in Japan, where many worry about the capacity of outsiders to adapt to its language, traditions and customs.
"I'm often asked why 'right wingers like Abe and Inada' want to increase the number of foreign laborers," she said. "In fact neither Abe nor myself are right-wing. We are conservative," she emphasized. She added that it's people like them — self-styled upholders of conservative and nationalist values — who are the ones that can push for change.
Conservatives "want to protect tradition," she said. "But ideally to be conservative is to approach change without fear, precisely in order to protect tradition. True conservatives (are) broad-minded, not exclusionary."
VIDEO2:5102:51The profitability of corporate Japan 'exploded' under Abe: CLSAStreet Signs Asia
Inada has also called for more opportunities for women in politics and business, and has spoken out in support of acceptance of sexual diversity.
As part of her nationalist image, Inada has visited Tokyo's controversial Yasukuni Shrine — where the war dead, as well as war criminals executed after World War II — are enshrined. It is a frequent source of tension with South Korea and China.
Inada served as defense minister for nearly a year from 2016 to 2017. But she resigned amid a scandal which hit the defense ministry during her tenure, related to the cover-up of records related to Japan's peacekeeping mission in South Sudan.
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dbc323b85d395cf6495228f5bf73cf1e | https://www.cnbc.com/2019/03/28/singapores-changi-wins-worlds-best-airport-award-beats-toyko-seoul.html | Here are the world's best airports for 2019 | Here are the world's best airports for 2019
VIDEO3:3203:32How to design the world's best airportCNBC Reports
Singapore's Changi airport has been named the "world's best airport" for the seventh year running.
The city-state's famed airport staved off competition from close contenders Tokyo and Seoul to bag the title in the 2019 edition of air transport research firm Skytrax's annual study.
The survey, which involved more than 13 million travelers globally, also saw Singapore win the award for world's best airport leisure amenities and best airport in Asia. Respondents were asked to rate airports across different data points, including check-in, arrivals, transfers, shopping, and security and immigration.
Asian airports dominated this year's list, taking six of the 10 top spots. Tokyo International Airport (Haneda) came in second, followed by South Korea's Incheon International Airport in third. Hong Kong came in fifth, while Japan's Chubu Centrair Nagoya and Tokyo Narita ranked sixth and ninth respectively.
The remaining top spots were filled by Doha Hamad (4th), Munich (7th), London Heathrow (8th) and Zurich (10th).
Plants and passengers in Singapore's Changi Airport, consecutively voted the best in the world.EyesWideOpen | Getty Images News | Getty Images
The highest ranking U.S. airport was Denver, which emerged in 32nd position.
Skytrax's list also measured airports on a number of other metrics. Tokyo Haneda won world's cleanest airport and London Heathrow - T5 was named world's best airport terminal. Meanwhile, China's Guangzhou won world's most improved airport.
Singapore's win comes ahead of the launch next month of Jewel Changi Airport, a mixed-used development featuring gardens and attractions, a hotel, aviation facilities and 300 retail and dining facilities.
Skytrax's CEO, Edward Plaidsted, said the new launch would add another "unique dimension" to Singapore's leading position.
"To be voted the world's best airport for the seventh consecutive year is a truly fabulous achievement for Changi Airport," said Plaisted.
"The opening of the Jewel Changi Airport in April 2019 looks set to add another unique dimension to the experience for Changi Airport customers."
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75d6dcd62d2f2f770fceedc866c83c99 | https://www.cnbc.com/2019/03/28/venezuela-crisis-guaido-calls-for-mass-protests-to-try-to-oust-maduro.html | What next for Venezuela? Guaido calls for final push to oust Maduro after Trump reaffirms support | What next for Venezuela? Guaido calls for final push to oust Maduro after Trump reaffirms support
VIDEO6:1606:16Venezuela's Juan Guaidó is going up against Maduro's regimeWorld Politics
Venezuela's opposition leader has urged supporters to prepare for a final push to try to oust President Nicolas Maduro, calling on his followers to take to the streets to protest over nationwide power cuts.
It comes at a time when the South American country is in the midst of the Western Hemisphere's worst humanitarian crisis in recent memory.
On Monday, Venezuela was hit by another massive power outage. The rolling blackouts — which have become a near daily occurrence in recent years — have hit hospitals, public transport, water pipelines and other services.
Maduro has said the power cuts were an act of sabotage by the opposition and the U.S.
However, opposition lawmakers in Venezuela say the blame lies solely with the socialist government, following two decades of economic mismanagement, under-investment and corruption.
Venezuelan opposition leader and self-proclaimed interim president Juan Guaido waves supporters after giving details of what he calls 'Operation Freedom' during a rally with local and regional leaders, in Caracas on March 27, 2019.YURI CORTEZ | AFP | Getty Images
Two months after Juan Guaido took to the streets of Caracas to declare himself as the country's rightful president, the National Assembly leader told supporters on Wednesday that preparations were being made for a mass mobilization — called "Operation Freedom" — in a bid to force Maduro to step down.
"Guaido must prioritize the mobilization and organization of the population to make sure domestic pressure is aligned to international pressure," Diego Moya-Ocampos, principal political analyst for Latin America at IHS Markit, told CNBC via telephone.
"The government's brutal repression of the people could soon lead to full-blown civil unrest. But, a real concern would be whether this is enough to make a difference to the stalemate," Moya-Ocampos said.
On Wednesday, President Donald Trump said Russia "needs to get out" of Venezuela, adding that "all options" were on the table to remove its soldiers.
His comments come after two Russian military planes touched down in Caracas over the weekend, fueling speculation that Moscow is seeking to bolster its presence in the oil-rich, but cash-poor, country.
"The illegal presence of Russian troops on Venezuelan soil, the fact that the government has repeatedly denied citizens access to humanitarian aid while public services are collapsing and the migration crisis continues to intensify … It all means that the likelihood of a pragmatic regional discussion on the need for military intervention is increasing," Moya-Ocampos said.
Trump was speaking to reporters in the Oval Office alongside Fabiana Rosales, a 26-year-old activist and the wife of opposition leader Juan Guaido.
U.S. President Donald Trump meets with Fabiana Rosales (L), the wife of Venezuelan opposition leader Juan Guaido, in the Oval Office of the White House March 27, 2019 in Washington, DC.Win McNamee | Getty Images
He told Rosales the U.S. was "100 percent" behind Venezuela's opposition.
At a time when Guaido is calling for protests against Maduro in Venezuela, Rosales is seeking to drum up international support with highly-publicized tours of neighboring countries.
"It is just a waiting game," Eileen Gavin, senior politics analyst at Verisk Maplecroft, told CNBC via telephone.
"The U.S. is all bark and no bite when it comes to military intervention and there is absolutely no regional support for it."
More than 50 countries, including the U.S. and most Latin American and European countries, have recognized Guaido as Venezuela's legitimate leader.
It has thrust Venezuela into uncharted territory — whereby it now has an internationally-recognized government, with no control over state functions, running parallel to Maduro's regime.
Venezuela's President Nicolas Maduro talks to the media after a meeting for signing an agreement on guarantees for the vote at the National Electoral Council (CNE) headquarters in Caracas, Venezuela March 2, 2018.Marco Bello | Reuters
Earlier this year, the Trump administration imposed targeted sanctions on state-owned oil company, PDVSA, in an attempt to try to cut off revenues to Maduro. Oil provides around 90 percent of export revenue for Venezuela, according to Reuters data.
Trump has said tougher sanctions on the OPEC producer are still to come.
"Does the U.S. have a plan B other than starving the Venezuelan government? It doesn't appear so," Gavin said.
"I fear for my husband's life," Rosales said, when speaking alongside Trump on Wednesday.
She was accompanied on her trip to the White House by the wife and sister of Roberto Marrero, Guaido's chief of staff, who was arrested and detained last week.
"The arrest of Marrero is really a sign of Maduro's team seeing what they can get away with. But, I would say it is unlikely they go after Guaido in the short term," Mark Keller, a Venezuela expert and lead analyst at the Economist Intelligence Unit, told CNBC via telephone.
Instead, Keller said he would expect Maduro's government to wait until the National Assembly leader was no longer in the international spotlight before "coming up with a charge" to detain him.
"I do think Guaido is at risk of arrest but, of course, there would be huge blow-back if they make a move against him," Verisk Maplecroft's Gavin said.
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5805c905a5343415a67c037fe55fea5c | https://www.cnbc.com/2019/03/28/wells-fargo-ceo-tim-sloan-retiring.html | Wells Fargo CEO Tim Sloan is retiring, and shares jump | Wells Fargo CEO Tim Sloan is retiring, and shares jump
VIDEO3:0703:07Jim Cramer on what's behind Wells Fargo CEO Tim Sloan's retirementMad Money with Jim Cramer
The embattled CEO of Wells Fargo is stepping down.
Tim Sloan, who took over as chief executive of the bank in October 2016, is resigning as CEO immediately, the bank said Thursday in a release. The bank's general counsel, Allen Parker, will take over as interim CEO, and the bank is searching externally for a permanent successor.
Sloan, the three-decade Wells Fargo veteran who was supposed to clean up the mess that had claimed his predecessor, had struggled to satisfy regulators' demands to overhaul the sprawling institution.
Problems at the fourth biggest U.S. bank came to light in 2016 with the news that employees had created millions of fake accounts to meet sales quotas. Since then, more issues tied to sales practices have emerged across the bank's business lines, including mortgage, auto lending and wealth management operations. Last year, the Federal Reserve took the extremely rare step of capping the bank's asset growth after the bank found more problems with customer dealings.
Tim Sloan, CEO of Wells FargoAdam Jeffery | CNBC
Still, the news that Sloan was stepping down came suddenly.
Earlier this month, the bank said that Sloan had merited a 5 percent raise to $18.4 million for his work in 2018. And when there were news reports that the bank was considering a former Goldman Sachs executive as a potential CEO, the bank issued strong statements that Sloan had the full confidence of its board.
Just two weeks ago, a haggard-looking Sloan testified before Congress about his efforts to clean up the various messes he had inherited. Before the four-hour hearings began, CNBC's Ylan Mui asked Sloan how long he expected to remain CEO, and he replied that he, his board and all of his 260,000 employees thought he was doing a great job.
But in the end, the pressure was just too great.
Sloan informed the board Tuesday that he felt his presence was a hindrance for the company, according to a Thursday call conference call with reporters. The move wasn't the result of the banks first-quarter performance or any "newly discovered issues," he said.
Sloan's departure reflects "his belief that a new CEO at this time will best position the company for success," the bank's chair, Betsy Duke said in a statement.
Rather than look for a replacement internally, the board said it would find one from outside the company. The bank's critics, including Sen. Elizabeth Warren, have said that Sloan was too associated with the bank to be an effective change agent.
Wells Fargo shares jumped 2.6 percent in extended trading Thursday following the announcement.
Shares of the bank have struggled amid the fallout from the sales practices scandal and scrutiny from political leaders. Over the last five years, the stock is flat, compared to a near 70 percent jump in J.P. Morgan Chase shares and a 40 percent move higher for the whole S&P financial sector.
Sloan's departure follows repeated calls from lawmakers for the CEO to step down. In October, Sen. Warren sent a letter to Federal Reserve Chairman Jerome Powell calling on the Fed to maintain its growth cap on Wells Fargo until the bank replaces Sloan.
VIDEO1:3501:35Unfair that Wells Fargo CEO Tim Sloan had to retire, says Yale's SonnenfeldClosing Bell
Sloan blew past his initial estimate for when the bank could grow again, saying that the Fed restriction will remain in place until the end of 2019 in Wells Fargo's most recent earnings report.
Late last year, after announcing that he was cutting up to 10 percent of the bank's workforce, the 58-year old Sloan told Bloomberg that he was prepared to remain CEO until he reached the age of 65.
When asked Thursday whether he supported Sloan, Berkshire Hathaway CEO Warren Buffett told CNBC's Becky Quick "yes, 100 percent." Buffett said that's because he doesn't want the job. Berkshire Hathaway is Wells Fargo's biggest shareholder, with more than 9 percent of shares according to FactSet.
More than two decades ago, Buffett stepped in to help temporarily lead a beleaguered Salomon Brothers after a scandal. Sloan was named CEO shortly after Wells Fargo's sales practices scandal came to light in 2016.
"I'm very empathetic when he walks into a big problem at a very very large and politically sensitive institution," Buffett said.
Others were less charitable. Sen. Warren, who is running for president in the 2020 election, tweeted that Sloan shouldn't get a golden parachute of compensation as he departs.
"He should be investigated by the SEC and DOJ for his role in all the Wells Fargo scams," she said. "And if he's guilty of any crimes, he should be put in jail like anyone else."
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f218e23bb1dbed5fca4c5fe36a8f23dc | https://www.cnbc.com/2019/03/29/alphabet-has-more-than-doubled-its-money-on-lyft.html | Google parent company Alphabet has more than doubled its money on Lyft to $1 billion in just 17 months | Google parent company Alphabet has more than doubled its money on Lyft to $1 billion in just 17 months
Google co-founder and CEO of Alphebet, Larry Page.David Paul Morris | Bloomberg | Getty Images
While Google parent company Alphabet pours capital into self-driving vehicles with its Waymo unit, the company is making real money in transportation right now.
CapitalG, the late-stage investing arm of Alphabet, has doubled the value of its investment in Lyft, after the ride-hailing company made its stock market debut on Friday.
CapitalG invested $500 million in Lyft in October 2017 at $39.75 a share. Following Lyft's 11 percent pop to more than $80 a share, that stake is worth more than $1 billion.
Alphabet has a complicated but lucrative relationship with Lyft and its main competitor, Uber.
In 2013, the company invested more than $250 million in Uber through its early-stage venture arm, GV, formerly known as Google Ventures. Google executive David Drummond took a seat on Uber's board.
But the two companies gradually started to compete in various areas, including self-driving technology, and Drummond left the board in 2016. Then Alphabet sued Uber in 2017, claiming that Uber had stolen trade secrets when it acquired a self-driving technology start-up built by another former Google exec, Anthony Levandowski. The case was settled last February, and Uber agreed to pay Waymo a 0.34 percent equity stake, which at the time amounted to about $245 million.
Alphabet took its stake in Lyft as the lawsuit with Uber was still going on. Thanks to that stake, it's the fifth-biggest outside investor in Lyft, behind Japan's Rakuten, GM, Fidelity and venture firm Andreessen Horowitz. David Lawee, a partner at CapitalG, is on Lyft's board.
Last year, Alphabet revealed that it had gained about $3 billion from its equity investments, mostly from its 2013 Uber stake. Assuming Uber's value is the same today as it was then, Alphabet's total stake between Lyft and Uber is now worth more than $4 billion.
Source: CNBC
Investors will learn more about Alphabet's position in Uber soon, as Lyft's larger rival is expected to file its own IPO prospectus in a matter of weeks.
In addition to holding big equity stakes in the market, Alphabet is also a potential competitor and technology supplier.
In the risk factors section of its prospectus, Alphabet's Waymo was the first of five names that Lyft listed as "companies developing autonomous vehicle technology that may compete with us in the future."
Alphabet's core advertising business also generates significant revenue from Lyft. The company said its spend on Google jumped 24 percent last year to $92.4 million, accounting for over 11 percent of Lyft's sales and marketing costs.
WATCH: Lyft IPO is a big deal for Nasdaq and JP Morgan, says trader
VIDEO5:5105:51Lyft IPO is a big deal for Nasdaq and JP Morgan, says traderHalftime Report
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8118824920bd23527790a5346a08888a | https://www.cnbc.com/2019/03/29/ben-franklins-timeless-financial-advice-is-a-wake-up-call-for-the-us.html | Walter Isaacson: Ben Franklin's timeless financial advice can be a wake-up call for Americans | Walter Isaacson: Ben Franklin's timeless financial advice can be a wake-up call for Americans
VIDEO4:1904:19Walter Isaacson explains what Americans can learn about personal finance from Ben FranklinSquawk Box
For 60 years, there has been a downward trend in the personal savings rate. It has reached a crisis, and it's been widely reported that 40 percent of Americans say they would have trouble dealing with a $400 emergency. But this is not something that can be fixed by merely exhorting strapped families to save more.
Among the many underlying causes are the stagnation of working-class wages, current low interest rates on savings accounts and a decline in the number of people who have long-term secure jobs at big companies that offer full benefits plus incentives to be part of a 401(k) retirement plan.
Reversing the decline in savings rates will require both a change in public attitudes and a new burst of innovations that are aimed at the 21st century economy rather than the corporate and industrial one that arose after World War II.
That brings us to Benjamin Franklin, America's patron saint of both financial self-help and of policy innovations. Even today, we can all still learn a financial lesson or two from his timeless advice.
More from Invest in You:Meet the CNBC Financial Wellness CouncilDo this now to feel financially secure in futureFriends don't let friends stay clueless about moneyFive easy ways to save $1,000 in three months
Franklin's annual editions of "Poor Richard's Almanack," studded with maxims about "a penny saved" and being "early to rise," sold an astonishing 10,000 copies a year. His 1757 compilation of this wisdom, published as "The Way to Wealth," became the most popular book in colonial America. And his autobiography, a beloved memoir, was cast as a how-to manual about rising in the world from humble origins through hard work and thrift.
Franklin's books were intended, he said, to teach about "industry and frugality as the means of procuring wealth and thereby securing virtue." But he knew that, in addition to spreading the penny-saved gospel, America needed clever public and private innovations to promote wealth building and equal opportunity.
So he came up with dozens of financial security schemes that were promoted by the club of tradesmen and shopkeepers he formed in Philadelphia. He proposed a widows and orphans fund that families could contribute to with the knowledge that it would help them if they fell on hard times, and he then expanded that to include other social insurance and savings ideas. He also created a public-private partnership to build a general hospital, using privately raised funds that were matched by the colonial legislature.
The change we need today should, in the spirit of Franklin, not look for one or two government fixes but instead try to unleash dozens of experiments and innovations.Walter Isaacsonprofessor of history at Tulane University and advisory partner at Perella Weinberg
"The good men may do separately is small compared with what they may do collectively," he wrote.
Franklin's spirit of innovation was repeated in other eras of our history, including a century ago when we moved from an agricultural to an industrial economy and again during the Depression and after World War II.
The change we need today should, in the spirit of Franklin, not look for one or two government fixes but instead try to unleash dozens of experiments and innovations that use the power of peer-to-peer networks and new technologies. Therefore, along with government policies that provide nudges and tax incentives, we need to find ways to create savings programs that are portable rather than employer-based, bank offerings that provide a kick start and other incentives for individuals to save, and services that cater to contract and gig-economy workers.
— By Walter Isaacson, CNBC contributor, advisory partner, Perella Weinberg; professor of history, Tulane University; distinguished fellow, the Aspen Institute
Disclosure: NBCUniversal and Comcast Ventures are investors in Acorns.
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d6564e5578b3caf7200df2c8e240319c | https://www.cnbc.com/2019/03/30/mark-zuckerberg-calls-for-tighter-internet-regulations-we-need-a-more-active-role-for-governments.html | Zuckerberg backs stronger Internet privacy and election laws: 'We need a more active role for governments' | Zuckerberg backs stronger Internet privacy and election laws: 'We need a more active role for governments'
Facebook founder and CEO Mark Zuckerberg arrives to testify following a break during a Senate Commerce, Science and Transportation Committee and Senate Judiciary Committee joint hearing about Facebook on Capitol Hill in Washington, DC.Saul Loeb | AFP | Getty Images
Facebook CEO Mark Zuckerberg on Saturday called for governments to play a greater role in regulating the Internet, citing four areas where he believes better rules are needed. Zuckerberg said new regulations are needed to protect society from harmful content, ensure election integrity, protect people's privacy and to guarantee data portability.
Facebook has faced a torrent of public criticism over its handling of Russian intervention in the 2016 U.S. presidential election and its policies on hate speech that many governments and users consider too lax. At the same time, conservative lawmakers in the U.S. have accused Facebook of political bias and censorship.
Zuckerberg proposed regulating harmful content by setting up independent bodies to set standards for what is considered terrorist propaganda and hate speech and is therefore prohibited.
"Internet companies should be accountable for enforcing standards on harmful content," Zuckerberg said. "It's impossible to remove all harmful content from the internet, but when people use dozens of different sharing services — all with their own policies and processes — we need a more standardized approach."
Facebook is also creating an independent body so people can appeal its decisions. Zuckerberg said Facebook is currently working with governments, including French officials, to make sure its systems to review content are effective.
Zuckerberg also called for governments to pass legislation to regulate political ads on the Internet, saying despite Facebook's efforts, it is difficult to determine when an ad should be considered political. "Our systems would be more effective if regulation created common standards for verifying political actors," Zuckerberg said. The Facebook CEO also endorsed a global framework to protect people's privacy along the lines of the European Union's General Data Protection Regulation: "I believe it would be good for the internet if more countries adopted regulation such as GDPR as a common framework," Zuckerberg said. He also called for regulation to guarantee data portability, ensuring that users can move data between services. Zuckerberg endorsed a standard data transfer format toward this end.
"This is important for the internet — and for creating services people want," he said. "But this requires clear rules about who's responsible for protecting information when it moves between services."
Read the full statement from Mark Zuckerberg:
Technology is a major part of our lives, and companies such as Facebook have immense responsibilities. Every day we make decisions about what speech is harmful, what constitutes political advertising, and how to prevent sophisticated cyberattacks. These are important for keeping our community safe. But if we were starting from scratch, we wouldn't ask companies to make these judgments alone.I believe we need a more active role for governments and regulators. By updating the rules for the internet, we can preserve what's best about it — the freedom for people to express themselves and for entrepreneurs to build new things — while also protecting society from broader harms.From what I've learned, I believe we need new regulation in four areas: harmful content, election integrity, privacy and data portability.First, harmful content. Facebook gives everyone a way to use their voice, and that creates real benefits — from sharing experiences to growing movements. As part of this, we have a responsibility to keep people safe on our services. That means deciding what counts as terrorist propaganda, hate speech and more. We continually review our policies with experts, but at our scale we'll always make mistakes and decisions that people disagree with.Lawmakers often tell me we have too much power over speech, and frankly I agree. I've come to believe that we shouldn't make so many important decisions about speech on our own. So we're creating an independent body so people can appeal our decisions. We're also working with governments, including French officials, on ensuring the effectiveness of content review systems.Internet companies should be accountable for enforcing standards on harmful content. It's impossible to remove all harmful content from the internet, but when people use dozens of different sharing services — all with their own policies and processes — we need a more standardized approach.One idea is for third-party bodies to set standards governing the distribution of harmful content and measure companies against those standards. Regulation could set baselines for what's prohibited and require companies to build systems for keeping harmful content to a bare minimum.Facebook already publishes transparency reports on how effectively we're removing harmful content. I believe every major internet service should do this quarterly, because it's just as important as financial reporting. Once we understand the prevalence of harmful content, we can see which companies are improving and where we should set the baselines.Second, legislation is important for protecting elections. Facebook has already made significant changes around political ads: Advertisers in many countries must verify their identities before purchasing political ads. We built a searchable archive that shows who pays for ads, what other ads they ran and what audiences saw the ads. However, deciding whether an ad is political isn't always straightforward. Our systems would be more effective if regulation created common standards for verifying political actors.Online political advertising laws primarily focus on candidates and elections, rather than divisive political issues where we've seen more attempted interference. Some laws only apply during elections, although information campaigns are nonstop. And there are also important questions about how political campaigns use data and targeting. We believe legislation should be updated to reflect the reality of the threats and set standards for the whole industry.Third, effective privacy and data protection needs a globally harmonized framework. People around the world have called for comprehensive privacy regulation in line with the European Union's General Data Protection Regulation, and I agree. I believe it would be good for the internet if more countries adopted regulation such as GDPR as a common framework.New privacy regulation in the United States and around the world should build on the protections GDPR provides. It should protect your right to choose how your information is used — while enabling companies to use information for safety purposes and to provide services. It shouldn't require data to be stored locally, which would make it more vulnerable to unwarranted access. And it should establish a way to hold companies such as Facebook accountable by imposing sanctions when we make mistakes.I also believe a common global framework — rather than regulation that varies significantly by country and state — will ensure that the internet does not get fractured, entrepreneurs can build products that serve everyone, and everyone gets the same protections.As lawmakers adopt new privacy regulations, I hope they can help answer some of the questions GDPR leaves open. We need clear rules on when information can be used to serve the public interest and how it should apply to new technologies such as artificial intelligence.Finally, regulation should guarantee the principle of data portability. If you share data with one service, you should be able to move it to another. This gives people choice and enables developers to innovate and compete.This is important for the internet — and for creating services people want. It's why we built our development platform. True data portability should look more like the way people use our platform to sign into an app than the existing ways you can download an archive of your information. But this requires clear rules about who's responsible for protecting information when it moves between services.This also needs common standards, which is why we support a standard data transfer format and the open source Data Transfer Project.I believe Facebook has a responsibility to help address these issues, and I'm looking forward to discussing them with lawmakers around the world. We've built advanced systems for finding harmful content, stopping election interference and making ads more transparent. But people shouldn't have to rely on individual companies addressing these issues by themselves. We should have a broader debate about what we want as a society and how regulation can help. These four areas are important, but, of course, there's more to discuss.The rules governing the internet allowed a generation of entrepreneurs to build services that changed the world and created a lot of value in people's lives. It's time to update these rules to define clear responsibilities for people, companies and governments going forward.
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c6ce6752563607681a0b549c1e432823 | https://www.cnbc.com/2019/03/30/saudis-accessed-amazon-ceo-bezos-phone-and-private-data.html | Saudis accessed Amazon CEO Jeff Bezos' phone and gained private data, security chief says | Saudis accessed Amazon CEO Jeff Bezos' phone and gained private data, security chief says
VIDEO4:1104:11Saudis accessed Amazon CEO Jeff Bezos' phone and gained private data, security chief saysSquawk Box
Saudi Arabia accessed Jeff Bezos' phone and obtained private data belonging to the Amazon CEO, security specialist Gavin de Becker said in an article posted on The Daily Beast Saturday, laying out the findings of his investigation. Bezos had tasked de Becker, his security chief, with investigating how the National Enquirer had obtained and published intimate texts that the Amazon CEO had sent to his mistress, former TV anchor Lauren Sanchez. In a shocking post in February, Bezos alleged that National Enquirer publisher AMI blackmailed him by threatening to publish intimate photos if he did not publicly state that the tabloid's coverage of him was not politically motivated. AMI has maintained that it acted lawfully in its reporting on Bezos. De Becker said his investigation had concluded "with high confidence that the Saudis had access to Bezos' phone and gained private information." Bezos is also the owner of The Washington Post, which has run critical coverage of the Trump administration and the Saudi government. In October, Post journalist Jamal Khashoggi was murdered in a Saudi consulate in Istanbul, sparking international outrage against Riyadh. "Some Americans will be surprised to learn that the Saudi government has been very intent on harming Jeff Bezos since last October, when the Post began its relentless coverage of Khashoggi's murder," de Becker said. De Becker went on to say that it is unclear if AMI was aware of the details, but pointed to what he called a close relationship between AMI chairman David Pecker and the Saudi government. The Saudis have previously denied having anything to do with the National Enquirer's coverage of Bezos.
"This is something between the two parties, we have nothing to do with it," Adel al-Jubeir, Saudi Arabia's minister of state for foreign affairs, told CBS' "Face the Nation" in February.The Saudi embassy could not be immediately reached for comment.
De Becker said his investigation quickly identified Michael Sanchez, the estranged brother of Lauren Sanchez, as a paid source of the National Enquirer. AMI has said Michael Sanchez was the single source for the story. But de Becker suggested that "the initial information came from other channels—another source or method."A spokesperson for AMI, in a statement to CNBC, maintained that Michael Sanchez was the single source for the National Enquirer story: "There was no involvement by any other third party whatsoever," the company said.Here's the full statement from AMI:
Despite the false and unsubstantiated claims of Mr. de Becker, American Media has, and continues to, refute the unsubstantiated claims that the materials for our report were acquired with the help of anyone other than the single source who first brought them to us. The fact of the matter is, it was Michael Sanchez who tipped the National Enquirer off to the affair on Sept. 10, 2018, and over the course of four months provided all of the materials for our investigation. His continued efforts to discuss and falsely represent our reporting, and his role in it, has waived any source confidentiality. There was no involvement by any other third party whatsoever.
De Becker said the findings of his investigation have been turned over to federal officials.
Read the full article in The Daily Beast
VIDEO5:2405:24How Amazon makes moneyTech
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358f0f314bbc6aac86f674b63cb970fd | https://www.cnbc.com/2019/04/01/china-economy-march-caixin-manufacturing-purchasing-managers-index.html | China's factory activity unexpectedly grows in March, a private survey shows | China's factory activity unexpectedly grows in March, a private survey shows
October 12, 2016: A a Chinese worker making soft toys at a factory in Lianyungang, Jiangsu province.STR - AFP - Getty Images
Manufacturing activity in China expanded unexpectedly in March at its fastest pace in eight months, a private survey showed on Monday.
The Caixin/Markit Manufacturing Purchasing Managers' Index (PMI) came in at 50.8 for March. Analysts had expected it to come in at 49.9 for a second month, according to a Reuters poll of economists.
A reading below 50 signals contraction, while a reading above that level indicates expansion.
New orders climbed to their highest level in four months, while the index for new export orders returned to expansionary territory, "showing that both domestic and external demand rebounded moderately," wrote Zhengsheng Zhong, director of macroeconomic analysis at CEBM Group, a subsidiary of Caixin.
Markit and Caixin said in a joint press release that staffing levels at factories rose in March to mark their first expansion since October 2013. Some firms also hired additional workers to support greater production and new business developments, they added.
"Overall, with a more relaxed financing environment, government efforts to bail out the private sector and positive progress in Sino-U.S. trade talks, the situation across the manufacturing sector recovered in March," said Zhong.
Results of the private survey came after data on Sunday showed the official Purchasing Managers' Index rose to 50.5 in March from February's three-year low of 49.2. It marked the first expansion in four months, according to data released by China's National Bureau of Statistics.
The manufacturing numbers come amid ongoing tariff talks between the U.S. and China aimed at resolving their trade differences. High-level trade negotiations between the two economic powerhouses are set to resume in Washington this week following last week's talks in Beijing.
The Caixin PMI is a private survey focused on smaller businesses and offers a first glimpse into the operating environment. It is closely watched as an alternative to the official PMI.
Despite the strength of China's March manufacturing data, there are still reasons to be cautious about the country's near-term outlook, said Julian Evans-Pritchard, senior China economist at Capital Economics.
The breakdown of both the official and private PMI indexes suggests a slight recovery in external demand, with most of the improvement coming from a pick-up in domestic demand, wrote Evans-Pritchard in a note on Monday.
"We suspect that this was driven by stronger fiscal support since local governments have stepped up bond issuance recently," he added. "On that note, the official PMI for the construction sector rose last month, consistent with an acceleration in infrastructure spending."
China's growth could still weaken in the near-term as indicated by recent credit growth data and a sharp decline in land sales purchases, Evans-Pritchard said.
Results of the Caixin PMI survey for the services sector are due to be released on Wednesday.
— Reuters contributed to this report.
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03a8b1a8a545e89fcb535319a31cc51c | https://www.cnbc.com/2019/04/01/facebook-new-tool-explains-why-am-i-seeing-this-post-on-news-feed.html | Facebook has a new tool that explains why you're seeing certain posts on your News Feed | Facebook has a new tool that explains why you're seeing certain posts on your News Feed
Facebook is rolling out a new tool that lets users find out why they're seeing certain posts on their News Feed.
The new feature, called "Why am I seeing this post?", essentially does what it says on the tin, showing a user the reasoning behind Facebook's ranking of posts from friends, pages and groups on their timeline.
"This is the first time that we've built information on how ranking works directly into the app," Ramya Sethuraman, product manager at Facebook, said in a blog post explaining the new tool.
The new button can be found in the drop down menu on the right hand corner of a post. Once clicked on, it will expand to show a user how the post has been tailored specifically to them.
That includes information on how often they interact with that post's author, how often they interact with the post's medium — whether it be videos, photos or links — and the popularity of the post compared to others.
Facebook is rolling out a new tool to let users find out why they're seeing certain posts on their News Feed.Facebook
Users will also be shown options to let them tell Facebook whether they want to see posts like it again in future. The controls include the option to unfollow a person, page or group, edit News Feed preferences or manage privacy settings.
It's an expansion on an existing tool for ads that lets users see an advertiser's rationale for targeting them. That tool, called "Why am I seeing this ad?" will now include information on whether their Facebook profile data matched details on an advertiser's database.
Facebook is also expanding on its "Why am I seeing this ad?" feature.Facebook
It previously only included information about how advertisers targeted users based on their age, gender, location, interests or website visits.
"Both of these updates are part of our ongoing investment in giving people more context and control across Facebook," Sethuraman said.
Facebook and other platforms like YouTube and Twitter have been accused of not being transparent enough about the way their algorithms work to recommend certain content.
And Facebook has been hit with a series of other other criticisms over how its platform handles user privacy and attempts to interfere in elections.
The company was hit by much scrutiny last year over how it allowed the data of 87 million users to be improperly shared with political consultancy Cambridge Analytica for targeting users during the U.S. 2016 presidential election.
Chief Executive Mark Zuckerberg recently called for more regulation of the internet, placing particular emphasis on curbing terrorist propaganda and hate speech, new laws on online political advertising and a global framework for privacy similar to that of the European Union's data privacy regulation.
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3a78d23bcf92cb7d54b21c3d18c7f4c2 | https://www.cnbc.com/2019/04/01/guggenheim-buying-lyft-stock-requires-making-too-many-big-assumptions.html | Buying Lyft stock requires making 'too many big assumptions,' firm warns amid IPO hype | Buying Lyft stock requires making 'too many big assumptions,' firm warns amid IPO hype
Signage for Lyft is seen displayed at the NASDAQ MarketSite in Times Square in celebration of its initial public offering (IPO) on the NASDAQ Stock Market in New York, U.S., March 29, 2019.Shannon Stapleton | Reuters
Guggenheim restrained its enthusiasm for shares of Lyft on Monday, beginning coverage of the rideshare company's stock with a neutral rating due to what the firm sees as a hazy outlook.
"We simply have to look too far out with too many big assumptions in order to make a case for the stock," Guggenheim analysts Jake Fuller and Ali Faghri wrote in a note to investors.
Lyft debuted on Friday to much fanfare, with more than 70 million shares exchanged on its first day of public trading. While the stock soared more than 20 percent intraday Friday, hitting a high of $88.60 a share, Lyft shares sold off during the afternoon and closed at a modest 8.7 percent gain. The stock continued to fall on Monday, closing down 11.9 percent at $69.01 a share, below its IPO price of $72 a share.
Fuller and Faghri said Guggenheim does "understand the excitement" surrounding Lyft's IPO, as the company as a large market to grow into and is on the "front lines of a shift" in transportation. But several "key issues" remain for Lyft, the analysts said. Those include whether the company can sustain its revenue growth, build its investments in nascent markets like electric scooters and self-driving, all while driving its total valuation higher.
"Our rating is primarily a function of a lack of visibility on the path to profitability," Fuller and Faghri said. "LYFT did provide healthy margin objectives, but it did not really talk about how it might get there"
Guggenheim does not have a price target on the stock.
VIDEO8:1508:15Lyft euphoria hits the market, will the IPO lift stocks to new highs?Fast Money
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19539b016cbcda9e1ac20db731636d32 | https://www.cnbc.com/2019/04/02/about-8-million-who-got-a-tax-refund-last-year-may-owe-this-time.html | About 8 million individuals who received a tax refund last year may owe this time | About 8 million individuals who received a tax refund last year may owe this time
Joe Raedle | Getty Images
With Tax Day around the corner, more people are able to answer the question: Will I get a refund or do I owe?
The big takeaway: You could be surprised at how the new Tax Cuts and Jobs Act affects your bottom line.
ln fact, almost one-third of taxpayers who must pay up to the IRS this year received a refund last year, a new survey from personal finance website NerdWallet found.
VIDEO2:4202:42How small businesses are impacted by tax reformWorldwide Exchange
One in 5 individuals owe additional money to cover their tax bill this year, the survey found. And 32 percent of those people received a refund last year.
NerdWallet estimates that 7.9 million people who received refunds last year could owe this year. Those who do have to pay $2,119 on average.
But there is good news for people who are getting refunds: They may be higher than you expected.
The average refund is $2,697, NerdWallet found. That's significantly higher than the $1,861 on average that individuals said they expected to get back in a separate poll in December.
About 60 percent of individuals who have prepared or filed their taxes will get a refund this year, according to NerdWallet.
Those who stand to get the biggest refund: millennials, who will get back $3,013 on average. In contrast, Gen Xers can expect to receive $2,944 and baby boomers should see $1,943.
One more reason to cheer: The government shutdown apparently has had no lingering effects on how quickly returns are being processed.
Of the individuals who have filed their returns, 41 percent received their money in two weeks or less. That should dissuade people from taking out so-called tax refund anticipation loans, which can come with unfavorable rates, according to Andrea Coombes, tax specialist at NerdWallet.
VIDEO2:3202:32Tax refundsOn the Money
"If you just stick with the normal process and wait for your refund from the IRS, you're likely to get it pretty quickly," Coombes said.
Those who had the longest wait for their checks: parents of children under 18. That is because the IRS did not start processing refunds for those who claimed the earned income tax credit or additional child tax credit until Feb. 27.
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While the tax law changes are prompting individuals to approach their taxes differently, there is one area where they are falling short.
Just 17 percent of those surveyed said they plan to revisit their tax withholdings after this year's return.
"Getting a surprise tax bill is never fun," Coombes said. "One of our key takeaways from this is to be sure to adjust your withholdings so you don't get a tax bill next year."
That also applies if you're getting a refund this year. That sum could instead be coming to you over the course of the year.
A $3,000 refund, for example, could add up to $250 more per month in your bank account, according to NerdWallet's calculations, after you adjust your withholdings.
Many individuals overlook those changes to the W-4 form, which Coombes called the "control tower to your finances."
"It's fun to get a refund," Coombes said. "A lot of people like that windfall.
"But it's really money you could have been using to set aside for savings, to pay down debt, all last year."
NerdWallet's online survey was conducted by The Harris Poll between Feb. 27 and March 1. It included 2,031 individuals ages 18 and up.
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c169ec56268a383621c7ea2cad1dbaaf | https://www.cnbc.com/2019/04/02/singapore-airlines-grounds-two-787-10s-citing-rolls-royce-engine-problem.html | Singapore Airlines grounds two 787-10s citing Rolls-Royce engine problem | Singapore Airlines grounds two 787-10s citing Rolls-Royce engine problem
Singapore Airlines Ltd said on Tuesday it had grounded two Boeing Co 787-10 jets fitted with Rolls-Royce Holdings PLC Trent 1000 TEN engines after checks of its fleet found premature blade deterioration.
The jets have been removed from service pending engine replacement, the airline said in a statement.
Singapore Airlines (SIA) welcomes the world's first Boeing 787-10 aircraft (in the air) as it approaches after its flight from Boeing's production facility in North Charleston, South Carolina at Singapore Changi Airport on March 28, 2018.ROSLAN RAHMAN | AFP | Getty Images
The Trent 1000 TEN is the latest version of an engine that has had a problematic entry into service. As of late February, Rolls-Royce said 35 787s were grounded globally due to engine blades corroding or cracking prematurely.
The manufacturer said it was aiming to reduce the number to 10 by the end of the year.
In February, the company raised a Trent 1000 accounting charge to 790 million pounds ($1.03 billion) from 554 million pounds at the half year, contributing to a full-year operating loss of 1.16 billion pounds. It also allocated another 100 million pounds in cash to the problem.
Rolls-Royce said on Tuesday that since the entry into service of the Trent 1000 TEN, it had communicated to operators that the high-pressure turbine blades in the engine would have a limited life.
"Working with operators, we have been sampling a small population of the Trent 1000 TEN fleet that has flown in more arduous conditions," the manufacturer said in a statement.
"This work has shown that a small number of these engines need to have their blades replaced earlier than scheduled."
Rolls-Royce said its engineers were already developing and testing an enhanced version of the turbine blade.
"We will now work closely with any impacted customers to deliver an accelerated programme to implement the enhanced blade and to ensure that we can deliver on our Trent 1000 TEN future commitments," the company said.
"We regret any disruption this causes to airline operations."
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36acab9955dbe01d93a1aaf0b788267c | https://www.cnbc.com/2019/04/02/trump-reverses-course-now-says-vote-on-health-care-can-wait-until-after-the-2020-election.html | Trump reverses course, now says vote on health care can wait until after the 2020 election | Trump reverses course, now says vote on health care can wait until after the 2020 election
President Donald Trump talks to reporters as he arrives for a closed Senate Republican policy lunch on Capitol Hill in Washington, March 26, 2019.Brendan McDermid | Reuters
U.S. President Donald Trump said on Monday he was willing to wait until after the 2020 presidential election to get Congress to vote on a new health-care plan, giving Republicans time to develop a proposal to replace Obamacare.
Congressional Republicans have been unable thus far to draft a proposal to replace Democratic President Barack Obama's signature Affordable Care Act despite frequent vows to do so in recent years.
Trump's vow last week that the Republican Party will be "the party of health care" caught his fellow Republicans off guard after the Justice Department backed a lawsuit intended to wipe out Obamacare, which has helped millions of Americans get health insurance.
In a series of tweets on Monday night, Trump said Republicans are developing "a really great HealthCare Plan with far lower premiums (cost) & deductibles than Obamacare."
"In other words it will be far less expensive & much more usable than ObamaCare. Vote will be taken right after the Election when Republicans hold the Senate & win back the House," he said.
Trump tweet 1
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Trump's move suggests he is willing to debate the future of the U.S. health-care system during the 2020 presidential election campaign rather than try to reach agreement on a plan sooner.
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6ab16be592b0d571452942fca928bbd0 | https://www.cnbc.com/2019/04/03/house-votes-to-condemn-trump-support-for-obamacare-repeal.html | House condemns Trump's support for tossing out Obamacare as Democrats put 2020 pressure on GOP | House condemns Trump's support for tossing out Obamacare as Democrats put 2020 pressure on GOP
House Speaker Nancy Pelosi, D-CA, speaks during an event to call for the protection of affordable healthcare for those with preexisting conditions during a press conference in front of the US Supreme Court in Washington, DC on April 2, 2019.Mandel Ngan | AFP | Getty Images
The Democratic-held House voted Wednesday to condemn the Trump administration's support for a lawsuit that aims to toss out the Affordable Care Act.
The resolution will have little practical effect and likely will not get a vote in the GOP-held Senate. But by approving the measure, Democrats aim to put pressure on House Republicans ahead of a 2020 election that the party again wants to frame as a referendum on GOP attempts to scrap the health-care law.
It passed the House by a 240-186-1 vote, as one Republican member voted "present." Eight GOP lawmakers — many of whom could face tough reelection bids next year — supported the measure. Only one Democrat — Rep. Collin Peterson, an Obamacare skeptic whose Minnesota district overwhelmingly backed President Donald Trump in 2016 — voted against the resolution.
Trump reignited sparring over the ACA, known as Obamacare, last week when his Justice Department backed a federal judge's ruling that the entire law is unconstitutional. After Republicans in Congress showed no appetite for reopening the politically perilous fight over reforming the health-care system, Trump said he would wait until after next year's election to push to replace the law.
Still, Democrats have tried to use the lawsuit against Trump, as it would toss out Obamacare and its popular protections for people with pre-existing medical conditions. The party will likely target House Republicans who voted against the resolution, which freshman Rep. Colin Allred, D-Texas, introduced.
Allred was one of the Democrats who won a GOP-held seat in last year's midterms while running on health care as his primary issue. His party flipped 40 net Republican seats in November, in no small part because of GOP attempts to repeal the health-care law. It became more popular in 2017 as voters saw the various GOP proposals to replace it.
The Democratic resolution says the Justice Department's actions "are an unacceptable assault on the health care of the American people." It calls on the Trump administration to reverse its position and "protect individuals with pre-existing conditions, seniors struggling with high prescription drug costs and the millions of people in the United States who newly gained health insurance coverage since 2014." Obamacare's Medicaid expansion went into effect that year.
The House members who broke with their parties on the vote are listed below. All of the lawmakers are either considered among the more centrist members of their party or could face a difficult reelection bid next year.
Rep. Brian Fitzpatrick, R-Pa.Rep. John Katko, R-N.Y.Rep. Collin Peterson, D-Minn.Rep. Tom Reed, R-N.Y.Rep. Denver Riggleman, R-Va.Rep. Chris Smith, R-N.J.Rep. Pete Stauber, R-Minn.Rep. Elise Stefanik, R-N.Y.Rep. Fred Upton, R-Mich.
Resistance to Obamacare repeal unites a Democratic caucus that has not coalesced around the best way to expand health-care coverage. Republicans have hammered Democrats over some members' support for a "Medicare for All" plan that would guarantee health insurance for every American and, depending on which version of the proposal, could eliminate private insurance entirely.
In criticizing Obamacare on Monday, Trump tweeted that "even the Dems want to replace it, but with Medicare for all, which would cause 180 million Americans to lose their beloved private health insurance."
Trump tweet: Everybody agrees that ObamaCare doesn't work. Premiums & deductibles are far too high - Really bad HealthCare! Even the Dems want to replace it, but with Medicare for all, which would cause 180 million Americans to lose their beloved private health insurance. The Republicans.....
The president claimed Wednesday that he "was never planning a vote prior to the 2020 election" on health care. In a tweet, he also claimed Republicans are "now developing" a "much better & less expensive" Obamacare alternative that "will be on full display" during the election. It is not clear that the GOP is developing any plan or whether it will actually lower prices or expand coverage.
Trump tweet: I was never planning a vote prior to the 2020 Election on the wonderful HealthCare package that some very talented people are now developing for me & the Republican Party. It will be on full display during the Election as a much better & less expensive alternative to ObamaCare...
On Tuesday, Senate Majority Leader Mitch McConnell said he told Trump the Senate would not revisit health-care reform before the 2020 election. He recently told Politico that he is "focusing on stopping the 'Democrats' Medicare for none' scheme."
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8a14b1cc0d3b8c6127126311c186dcc2 | https://www.cnbc.com/2019/04/03/onfido-an-id-verification-startup-gets-funding-from-salesforce-sbi.html | Salesforce backs a start-up that uses selfies and A.I. to verify your identity online | Salesforce backs a start-up that uses selfies and A.I. to verify your identity online
Onfido's software in action.Onfido
Identity verification start-up Onfido says it's raised $50 million from investors including Salesforce and Microsoft.
The firm's software validates a person's identity by taking their selfie and applying a mix of machine learning and human fraud experts to match their face with a government-issued ID.
Its latest round of funding, announced Wednesday, was led by Salesforce's venture capital arm and Japanese financial group SBI, with additional backing from Microsoft's venture unit and others.
Husayn Kassai, co-founder and CEO of Onfido, told CNBC that the company would use the fresh capital to "continue to invest in the technology and in the AI (artificial intelligence) component."
Onfido's AI is used to analyze people's faces to make sure they are who they say they are and reduce fraud. Its customers include crowdfunding site Indiegogo and remittances app Remitly.
Though headquartered in London, Kassai said Onfido actually gets most of its business now from the U.S., and is looking to strengthen its presence there.
Founded in 2012 by three Oxford University graduates, the company has been in expansion mode, increasing activity across the U.S., Europe and Southeast Asia.
The latest investment brings Onfido's total funding to more than $100 million. Frank van Veenendaal, former vice chairman of Salesforce, will join the start-up's board following the deal.
Kassai, who is originally from Iran, says he came up with the idea for the business based on his own personal frustrations with how long it took for his parents to apply for bank accounts and other services when they moved to the U.K.
"It basically took them months to be able to open a bank account and rent in their own name — and it's all because they weren't registered on the credit bureau," he said.
He says he felt credit agencies "exclude half the world's population" because so many people lack traditional access to financial services. According to the World Bank, 1.7 billion adults globally don't have access to banking.
Going forward, Onfido's boss said he sees people being able to use their selfies to check themselves into a hotel, order prescription drugs for home delivery and even voting.
Some of its competitors include U.S.-based Jumio and Canadian firm Trulioo. Onfido says it's different because it openly invites companies to trial its product and it's "good at doing machine learning properly."
According to industry consultancy group Smithers Pira, the global market for personal ID credentials was worth $9.5 billion last year and is set to grow to nearly $10.7 billion in 2023.
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3515c4ae9b4d8579b1262760210efd9b | https://www.cnbc.com/2019/04/03/what-the-wyden-proposed-tax-on-unrealized-capital-gains-may-mean-for-you.html | What the Wyden-proposed tax on unrealized capital gains might mean for you | What the Wyden-proposed tax on unrealized capital gains might mean for you
Sen. Ron WydenAndrew Harrer | Bloomberg | Getty Images
A new proposal that would subject wealthy investors to taxes on the appreciation of their holdings — even if they don't sell — could come with a host of complexities.
Sen. Ron Wyden, D-Oregon, announced on Tuesday that he is working on a mark-to-market system that would tax unrealized capital gains on assets owned by "millionaires and billionaires."
This levy, assessed annually, would kick in at the same rate as all other income, Wyden said. Currently, the top marginal rate on ordinary income is 37 percent.
In comparison, long-term capital gains are taxed at a top rate of 20 percent.
VIDEO7:5307:53Top senate Democrat proposes annual capital gains taxSquawk Box
"Everyone needs to pay their fair share and the best approach to achieving that goal is a mark-to-market system that would require the wealthy to pay taxes on their gains every year at the same rates all other income is taxed," Wyden said in a statement.
He said that he would soon release a white paper outlining how this plan would work.
Principal residences and holdings in 401(k) plans apparently would be excluded.
Tax policy experts noted that while it's early days, implementing a mark-to-market system on brokerage accounts, real estate and other holdings might be easier said than done.
"The elements of valuation and having the liquidity to pay the tax are much larger hurdles when you think about the retail investor," said Steven M. Rosenthal, senior fellow at the Urban-Brookings Tax Policy Center.
Here are a few items that could complicate a mark-to-market tax system for retail investors.
Tom Grill | JGI | Getty Images
Marking an asset to market means that you're treating it as if you've sold it for fair market value at the end of the year, accounting for the gain or loss incurred.
"It won't help the wealthy to hold the asset for a longer time; that ability to defer the tax would be taken away," said Steve Wamhoff, director for federal tax policy at the Institute on Taxation and Economic Policy.
Figuring out the appreciation of a stock or a mutual fund isn't all that hard to do, but calculating gains on real estate investments, partnership interests and other closely held businesses could present a problem.
"This requires some method to price goods that are in illiquid markets," said Kyle Pomerleau, chief economist at the Tax Foundation. "Ownership of a business isn't traded in the open market, but it has a value."
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Investors could have some wiggle room here. "It could well lead to gaming by taxpayers who use lowball numbers for valuation," said Rosenthal.
How Wyden's proposal will tackle this issue remains to be seen.
However, one potential way around this is to allow the owner of the illiquid asset to defer the mark-to-market tax until he or she sells the holding, Wamhoff said.
"The taxes that are paid upon sale are increased so that you're in the same position as if it had been taxed each year under mark-to-market," he said.
Traders and financial professionals work ahead of the closing bell on the floor of the New York Stock Exchange.Johannes Eisele | AFP | Getty Images
Once you've figured out the value of the asset, you need to find the money to pay the tax.
This could create a crunch for investors who are merely holding an asset and who otherwise wouldn't have the liquidity to pay the levy.
"If you sold a stock and you have cash proceeds, you have money that you can share with the government," said Rosenthal. "If you didn't sell it, you don't have the money to pay the tax."
DjelicS | E+ | Getty Images
Marking to market can become more complicated when the asset in question has lost value.
"You must be able to deduct these losses or carry them forward so that you can deduct them at a future time when the asset appreciates," said Pomerleau.
Wyden's plan would allow for individuals to deduct losses, according to Ashley Schapitl, a spokeswoman for the Senate Finance Committee.
How an investor might deduct the loss matters.
For instance, if you were able to deduct losses against your wage income, savvy investors might try to game the tax system this way, said Pomerleau.
"Maybe you have this business that loses money each year, and you use it to harvest your losses and shelter wage income," he said.
There's also the question of what might happen if there's a downturn and asset values dip on a large scale.
"If the loss is ordinary and treated as ordinary, what happens when the stock market goes down?" asked Rosenthal. "Mark to market is attractive when the market is going up, but what happens to revenues when it reverses?"
VIDEO1:3201:32Sen. Bernie Sanders proposes 77 percent estate tax ratePower Lunch
Finally, the treatment of long-held investments remains uncertain. For instance, your mother-in-law has held shares of IBM for 30 years, and she's subject to the new mark-to-market tax.
Would the tax be phased in? Or will she have to recognize 30 years of gain in one year?
"There are lots of rich people who'll probably hold their stock until death or until they give it away — that's the target," said Rosenthal.
In this case, eliminating the step-up in basis — that's when the heir receives the asset valued as of the date of death — might be a easier to implement, he said.
The step-up allows the beneficiary to sell the asset right away and pay little to no capital gains taxes.
"Paying taxes on gains at death is more sensible and easily accomplished than paying taxes in your lifetime," Rosenthal said.
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8a1d9f27ea06c10f66ee5552db70d33e | https://www.cnbc.com/2019/04/04/dont-let-money-woes-silence-you-after-a-divorce-take-these-steps-to-get-a-plan-in-place.html | Don't let money woes silence you after a divorce. Take these steps to get a plan in place | Don't let money woes silence you after a divorce. Take these steps to get a plan in place
If you're divorced, you don't need to be told that your financial life has changed.
However, one key indicator — how willing you are to talk to family about money — shows just how much your finances and relationships can be upended.
Source: HBO
Results from the CNBC Invest in You and Acorns Savings Survey show that 56 percent of divorced Americans said they almost never talk about their finances with family members, versus 27 percent of all survey respondents.
Those divorcees are also more likely to say they don't make enough money to cover their needs and save at the same time. They also are more inclined to prioritize paying off debt instead of savings.
The findings point to the secrecy around divorce agreements, and the potential embarrassment that can ensue when you land in a less than ideal financial situation.
"If you're stressed about your finances, that's something that really permeates your entire being," said Stacy Francis, president and CEO at Francis Financial. "A lot of us, unfortunately, feel shame that somehow we did something wrong."
Anyone who struggles financially — whether it be because of a divorce or other reasons — can feel embarrassed about their situation.
VIDEO4:4404:44How to handle financial curveballsPower Lunch
Francis found this out first hand, when in 2008 she and her husband found themselves in difficult financial circumstances prompted by the financial crisis. The "should have known better" feelings that often afflict people who are hit with financial difficulties were especially tough for Francis, she said, because she is a financial expert.
"What's interesting is I found myself not talking about our finances," Francis said of that time.
She stayed silent not only because of the shame, but also the desire not to burden her children or other family members.
Now that they're in a better place, she doesn't hesitate to talk about money. The key difference: Francis now feels she can convey a sense of stability and comfort — not fear — to her loved ones.
Speaking out during times of trouble can help conquer negative feelings — and shatter taboos around money silence, Francis said.
"The more we can get individuals talking, the more you are going to realize you're not alone," Francis said.
Speaking out, particularly in a negative situation, can be easier said than done.
"Divorce amplifies all the feelings — good, bad and otherwise — around money and financial decisions," said Russ Thornton, financial advisor at Wealthcare for Women.
It's important to remember advice from family members comes from their own perspective. For example, your father's advice might be more applicable to his own life stage than your own, Thornton said.
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It's also a good idea to set boundaries regarding how much you want to share, said Dorie Fain, CEO of &Wealth.
That goes particularly for children, who are already coping with big adjustments.
"Children are best served from parents who convey stability and ability to take care of them," Fain said.
When communicating with your own parents, siblings and in-laws, you should also make decisions about how much of your financial situation you want to share.
Divorce amplifies all the feelings — good, bad and otherwise — around money and financial decisions.Russ Thornton
"Often family members with the best of intentions have expectations and biases and point of views that may or may not serve you as well as it serves them," Fain said.
Sometimes the best source of support can be others who are going through similar experiences.
Francis organizes a monthly money circle, where anywhere from 10 to 15 women get together for a couple of hours to talk about what they're experiencing financially.
"Women hear the concerns, the anxieties, the experiences of other women," Francis said. "You walk out of there feeling so much better, of 'You know what, I'm not the only one.'"
In addition to support groups, you may want to reach out to a financial advisor.
"Having a neutral third party assist with your decision making is an objective way to understanding what the options are," said Lili Vasileff, president of Divorce and Money Matters.
By focusing on preparing for life after divorce, where you are financially responsible for yourself, will give you something that can go farther than money — confidence, Vasileff said.
The survey was conducted for CNBC in March by SurveyMonkey and included more than 2,300 adults.
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Disclosure: NBCUniversal and Comcast Ventures are investors in Acorns.
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f62f5795647d2cb06ebbd2470fc8096b | https://www.cnbc.com/2019/04/04/weekly-jobless-claims.html?utm_source=akdart | US weekly jobless claims drop to the lowest level since 1969 | US weekly jobless claims drop to the lowest level since 1969
VIDEO1:2401:24US weekly jobless claims total 202,000, vs 216,000 expectedSquawk Box
The number of Americans filing applications for unemployment benefits dropped to a more than 49-year low last week, pointing to sustained labor market strength despite slowing economic growth.
Initial claims for state unemployment benefits declined 10,000 to a seasonally adjusted 202,000 for the week ended March 30, the lowest level since early December 1969, the Labor Department said on Thursday.
Data for the prior week was revised to show 1,000 more applications received than previously reported.
Economists polled by Reuters had forecast claims rising to 216,000 in the latest week. The Labor Department said only claims for California were estimated.
Claims have shown no sign of a pickup in layoffs even as the economy has lost momentum as the stimulus from a $1.5 trillion tax cut package fades. Companies are experiencing a shortage of workers, which contributed to a recent slowdown in hiring.
Job growth has slowed from last year's roughly 225,000 monthly average pace. The pace of increase, however, remains more than sufficient to keep up with growth in the working age population, holding down the unemployment rate.
The four-week moving average of initial claims, considered a better measure of labor market trends as it irons out week-to-week volatility, fell 4,000 to 213,500 last week, the lowest level since early October 2018.
The claims data has no bearing on March's employment report, which is scheduled for release on Friday. According to a Reuters survey of economists, nonfarm payrolls likely increased by 180,000 jobs last month after a meager 20,000 in February, which was seen as pay-back after robust gains in the prior two months.
The unemployment rate is forecast unchanged at 3.8 percent.
Thursday's claims report showed the number of people receiving benefits after an initial week of aid decreased 38,000 to 1.72 million for the week ended March 23. The four-week moving average of the so-called continuing claims slipped 8,000 to 1.74 million.
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d0414f1fb77e68a71879d4d254cf093b | https://www.cnbc.com/2019/04/05/americans-55-and-over-are-suddenly-losing-jobs-at-the-fastest-pace-in-4-years.html | Americans 55 and older are suddenly losing jobs at the fastest pace in 4 years | Americans 55 and older are suddenly losing jobs at the fastest pace in 4 years
Pascal Broze | Getty Images
While hiring in the U.S. rebounded in March, baby boomers who are still in the work force are not doing so great.
Employment for people age 55 and older dropped 209,000 last month, the biggest such decline since February 2015 when 251,000 jobs were cut for the age group, according to the Bureau of Labor Statistics.
While the decline was notable, a one-month change hardly makes a trend. In fact, this age group still has the lowest unemployment level among all cohorts, with a 2.7% jobless rate in March unchanged from February. The overall unemployment rate held steady at 3.8% in March.
"This data tends to be volatile monthly. I don't think it's a start of a trend," said Craig Dismuke, chief economist at Vining Sparks. "Broadly speaking, I think the labor market has been very good for people over the age of 55 and 65."
Month-to-month swings can appear large because of the small sample size of the population survey, ZipRecruiter's labor economist Julia Pollak told CNBC.
VIDEO6:2906:29Goldman's chief economist: Strong job numbers put slowdown fears to restPRO Uncut
"The Current Population Survey is a survey of about 60,000 households, and the sample sizes get small when one slices the data by age group and employment status. But the overall trends appear positive," Pollak said.
Although the number can be volatile, several industries including government and educational services where the employment distribution skews toward older workers have seen "sluggish" growth lately, Pollak pointed out.
Baby boomers have been the biggest job gainers in the last decade. Many of them facing retirement tend to stay in the workforce partly because they fear they don't have enough money saved up. President Donald Trump has also pushed for policies to encourage more Americans to get back to work as baby boomers retire.
"The broader trend is that the participation in 55 and over continue to rise," Dismuke said. "I do think there's an issue that people haven't saved enough and they are forced to work longer. We have a smaller percentage of our jobs today [that] are manually taxing like they would've been 40 years ago," and less physically demanding work allows people to work longer, Dismuke said.
— CNBC's John Schoen contributed to this report
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a514a4480d8727749c8f5e643966b9da | https://www.cnbc.com/2019/04/05/california-sues-trump-administration-over-2017-deregulation-order.html | Welcome to California: On eve of visit, Trump is sued by the Golden State over deregulation order | Welcome to California: On eve of visit, Trump is sued by the Golden State over deregulation order
President Donald Trump speaks during a White House Opportunity and Revitalization Council meeting in the Cabinet room at the White House in Washington, U.S., April 4, 2019.Kevin Lamarque | Reuters
On the eve of President Donald Trump's visit, California's Democratic Attorney General Xavier Becerra announced the state has unleashed its 49th lawsuit against the Trump administration, this time challenging a presidential executive order signed in 2017 that "arbitrarily" slashes regulations.
California was joined in the lawsuit in U.S. District Court in the District of Columbia by the attorneys general of Minnesota and Oregon.
In a statement Thursday night, Becerra said Trump's "2-for-1" executive order, issued on Jan. 30, 2017, requires that U.S. agencies to repeal at least two existing government regulations for every new one an agency issues, with the goal to offset costs. In doing so, agencies make determinations based on looking at "the cost of the proposed regulation, while giving no consideration to the benefit or protections lost by the repeal of existing regulations," the release added.
"This arbitrary two-for-one executive order is just bad public policy," Becerra said.
Becerra added that the Trump order "forces federal agencies to make potentially bad decisions in order to meet existing rules without consideration for their importance or value."
According to the lawsuit, Trump's order "harms the states by preventing, delaying and discouraging federal regulations addressing public health, safety, and environmental concerns." The states are seeking "declaratory and injunctive relief."
California previously sued the Trump administration over issues such as health care, immigration, the border wall, public lands, climate change. California's 49 lawsuits against the Trump administration compare with 48 lawsuits the state of Texas filed against the federal government during the Obama administration.
In February 2017, two advocacy groups and a union filed a challenge to Trump's 2-for-1 order. But a federal judge in D.C. dismissed the case by ruling the plaintiffs didn't have standing to bring the case.
Trump is scheduled to go to California on Friday to visit a newly replaced border fence in Calexico.
The U.S. Department of Justice declined comment. CNBC also reached out the White House.
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ae135a54ed65a9cedc26e34717bb3220 | https://www.cnbc.com/2019/04/05/digital-health-ipos-coming-from-livongo-change-and-healthcatalyst.html | Digital health IPOs are finally coming to Wall Street, led by Livongo and Change Healthcare | Digital health IPOs are finally coming to Wall Street, led by Livongo and Change Healthcare
Livongo's founder and executive chairman Glen Tullman
Investors in digital health have been opening their wallets in recent years, with the promise that the coming together of devices, algorithms and consumers' growing obsession with personal health data will translate into big business.
They're finally poised to see some of the rewards, as the IPO market appears ready to crack open.
Livongo, a Silicon Valley provider of services and tools that help people manage chronic medical conditions, has reportedly picked bankers for its IPO, as has HealthCatalyst, a health-care data company. Change Healthcare, which provides technology to bring down the costs of health care, filed its prospectus last month.
In 2018, health-tech start-ups raised more than $8 billion, but the only significant exits came from a few acquisitions, like Roche's purchase of Flatiron Health for almost $2 billion and Amazon's $1 billion acquisition of online pharmacy PillPack. For investors to keep putting in capital, they need companies to not only go public but also to impress financially once they debut.
"To have a well-funded digital heath company performing well and going public, it validates the digital health thesis," said Blake Wu, a health investor at venture capital firm New Enterprise Associates. Wu's investments include Bright Health, a provider of affordable health insurance, and Pager, a digital health platform that helps consumers connect with providers.
To date, most of the notable IPOs in the health-tech market have been from companies with business models that are familiar to Wall Street. For example, Veeva Systems and AthenaHealth sell cloud-based software and Fitbit sells devices.
VIDEO6:4806:48Veeva CEO: Reaching $1 billion in sales a 'year ahead of our target'Mad Money with Jim Cramer
Digital health companies in the current IPO pipeline are different, in that they emphasize the combination of technology and services, which might include app-based behavioral coaching or nudges toward promoting healthy behavior.
Livongo, which was founded 2014, built its business by working with large companies like Amazon, Microsoft, PepsiCo, Walgreens and Delta, to provide technology that employees with diabetes can use to monitor and manage their disease. The package includes a connected glucose meter and unlimited lancets and test strips, and the company offers coaching and tips through its apps to help people stay healthy, which might result in cost savings for the employers footing the bill.
Livongo has expanded its offerings beyond diabetes management to serve people with high blood pressure and mental health conditions such as depression and anxiety.
It will take time for public market investors to see if this type of business model can generate predictable revenue and lead to sustained profitability, said Marc Albanese, senior director of research at CB insights, a research and strategy firm.
"There hasn't be a true digital health IPO, " Albanese said. "So there is a bit of pressure on Livongo."
Most investors specialize in health or technology businesses, but not both.
"Livongo is truly a cross between health and tech," said Albanese. "Its performance will set the tone for how similar companies are received, which makes it so important."
Livongo is on track to generate more than $100 million in revenue this year, up from $70 million in 2018, and its technology is used by more than 120,000 employees, according to a person with knowledge of the company's financials who asked not to be named because the numbers are confidential. Livongo hired Morgan Stanley, Goldman Sachs and J.P. Morgan Chase to manage its IPO, the Wall Street Journal reported last month.
A Livongo spokesperson declined to comment on its IPO plans.
Digital health research firm Rock Health is ready for the floodgates to open. In a recent report, the company said that while funding will moderate in the early part of 2019, "the end of the digital health IPO drought comes into sight."
WATCH: Profitability doesn't predict long-run returns for companies with over $100 million in sales
VIDEO2:4102:41Profitability doesn't predict long-run returns for companies with over $100 million in sales: ProPower Lunch
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028417ea3e3a93f2977d5e0b0d79997c | https://www.cnbc.com/2019/04/05/heres-where-the-jobs-are-in-one-chart.html | Here's where the jobs are — in one chart | Here's where the jobs are — in one chart
CNBC
Job gains in the education and health services sector easily surpassed those in all other industries in March, while the manufacturing sector posted its first month-over-month decline since July 2017.
CNBC studied the net changes by industry for March jobs based on the data from the Labor Department contained in the jobs report released Friday. The government said the U.S. economy added 196,000 jobs last month, more than the 180,000 increase expected by economists polled by Refinitiv.
Education and health care alone added 70,000 jobs, with strong hiring in ambulatory care, hospitals, and nursing and residential care facilities. The professional and business services sector, which includes lawyers, accountants and consultants, added to a consistent hot streak with a gain of 37,000 in March.
VIDEO10:4910:49Watch five experts break down the March jobs reportSquawk Box
Leisure and hospitality had a healthy net job gain of 33,000, while construction also added to an extended hiring binge with a net gain of 16,000 positions.
The manufacturing industry, a priority for President Donald Trump, saw its first decline since July 2017. The sector lost 6,000 jobs last month versus a January addition of 13,000 and February's measly 1,000. Within the industry, employment in motor vehicles and parts declined in March by 6,000.
"Total nonfarm payroll employment increased by 196,000 in March, with notable gains in health care and in professional and technical services," the Labor Department said in a release. "Employment growth averaged 180,000 per month in the first quarter of 2019, compared with 223,000 per month in 2018."
Retail trade employment lost 11,700 jobs, and is the only sector in the economy that has lost positions over the last three years.
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f3d7c7190942068707e3a79111998bdb | https://www.cnbc.com/2019/04/05/mcdonalds-is-trimming-its-late-night-menu.html | McDonald's is trimming its late night menu | McDonald's is trimming its late night menu
A customer pulls into a McDonald's restaurant.Luke Sharrett | Bloomberg | Getty Images
McDonald's is cutting back its late-night menu offerings.
"Starting April 30 (at participating McDonald's restaurants nationwide), we'll be simplifying what's served after midnight so customers can get the most popular favorites as fast as possible," McDonald's spokeswoman Andrea Abate said in a statement.
In addition to speedier service, the menu changes should ease the burden on employees working the late shift.
Business Insider first reported the changes coming to the late-night menu. Items like the Filet-O-Fish, premium salads and buttermilk crispy tenders will no longer be available from midnight to 5 a.m., according to Business Insider. Fan favorites like the Big Mac, Chicken McNuggets, all day breakfast items and McCafe products will still be available.
The fast food giant first rolled out its "After Midnight" menu in 2013. Night owls can buy a selection of breakfast and lunch items from still-open locations from midnight to 5 a.m.
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8c32b82b95d4b80bf847390de11e60e7 | https://www.cnbc.com/2019/04/05/stocks-making-the-biggest-moves-midday-snap-boston-beer-duluth-holdings.html | Stocks making the biggest moves midday: Snap, Boston Beer, Duluth Holdings & more | Stocks making the biggest moves midday: Snap, Boston Beer, Duluth Holdings & more
Pedestrians pass in front of Snap Inc. signage displayed on the exterior of the New York Stock Exchange (NYSE) during the company's initial public offering (IPO) in New York, U.S., on Thursday, March 2, 2017.Michael Nagle | Bloomberg | Getty Images
Check out the companies making headlines midday Friday:
Boston Beer — The Sam Adams brewer dropped 5.5% after Goldman Sachs downgraded the stock to sell from buy, citing an intensifying beer market throughout the remainder of 2019.
Anheuser-Busch InBev — Shares of Anheuser Busch Inbev rose 1.6% after Bank of America upgraded the beer maker to neutral from underperform. "We believe the shares will remain supported near-term, as the Street's concerns around its leverage subside and short-term earnings momentum improves," the bank said.
Louisiana-Pacific — Louisiana Pacific shares were up over 5.1% after Stephens upgraded the stock to overweight from equal weight, noting the company's strong balance sheet, commitment to capital discipline and "unusually high operating leverage" will help the stock.
Duluth Holdings — Shares of Duluth Holdings dropped 25.2% after the retailer reported earnings and revenues that fell short of expectations. The company posted earnings of 64 cents per share on revenues of $250.5 million, while analysts polled by Refinitiv had expected earnings of 75 cents per share on revenues of $258.2 million. The CEO cited challenges with system implementation, late deliveries of products and the slowdown of overall consumer spending during the holiday season.
Lennar — Lennar shares were up nearly 2% after J.P Morgan Securities added the company to its "Focus List," noting the homebuilder's valuation is attractive relative to its competitors.
Snap — Shares of Snap jumped 5% a day after the launch of its new advertising network, Snap Audience Network. The ad network will compete with advertising giants like Facebook, Google and LinkedIn, targeting its users beyond the social media company's main stake platform, Snapchat.
HomeStreet — The financial services company jumped more than 5% after announcing it may repurchase up to $75 million in stock. The company also announced the sale of two of its businesses.
Triumph Group — Shares of the aerospace company gained 12.3% after announcing it is exploring alternatives for its aerospace structures business. Triumph also said Citigroup has been hired as an advisor throughout the review process.
Boeing — The Dow Jones Industrial Average member fell about 1% after Reuters reported the company was looking into scenarios in which production of the 737 Max jet would slow down.
—CNBC's Nadine El-Bawab, Matt Lavietes and Isabel Soisson contributed to this report.
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b9bad46ad114ca779fc2afa85075ed2e | https://www.cnbc.com/2019/04/07/oil-markets-will-see-much-more-upside-than-downside-citi-strategist.html | Oil markets will see 'much more upside than downside,' Citi strategist says | Oil markets will see 'much more upside than downside,' Citi strategist says
VIDEO1:5301:53Oil markets will see 'much more upside than downside,' Citi strategist saysSquawk Box Europe
Edward Morse, the global head of commodities research at Citi Group, gave a bullish outlook for global oil markets Sunday, saying that current inventories were at a "constructive" level.
Crude futures have surged in recent months, with Brent and U.S. West Texas Intermediate (WTI) both rallying more than 20 percent since the start of 2019. International benchmark Brent crude stood at $70 a barrel on Friday, with WTI trading at around $63. Morse believes that more upside is in store with supplies being taken off the market in Iran and Venezuela, as well as major oil cartel OPEC.
"I think there's much more upside than downside," he told CNBC's Dan Murphy in Dubai Sunday.
"I think it's under bought, I think it was oversold ... The market is very constructive, it's fairly tight and we think it's going to be in the $70 range through the second quarter and into the third quarter depending on what happens. And there's a lot of variables between now and then."
One variable is whether the President Donald Trump administration will extend sanctions waivers on eight countries importing Iranian oil and he has until May 2 to decide. Morse believes that the focus for the U.S. will be sanctions and Venezuela and this would likely see "kinder" actions on those importing Iranian oil.
Meanwhile, Fereidun Fesharaki, the chairman of leading consulting group FGE, backed up Citi's forecast, telling CNBC Sunday that the supply and demand fundamentals will likely push the oil price up to $75 and $80 for the second half of this year.
"There may be a Trump ceiling of $70 or close to it but so far as the fundamentals are concerned, if nobody touches anything, the second half of this year will be $75, $80," he told CNBC's Dan Murphy.
VIDEO1:3301:33Oil markets are ready to go up not down: FGE chairmanSquawk Box Europe
Trump has taken to Twitter numerous times since entering the Oval Office to chastise OPEC and its largest producer, Saudi Arabia, for propping up oil prices via production cuts.
The 15-member organization reached a deal with non-OPEC producers including Russia to scale back oil output last December in response to falling prices. The production curbs by the so-called OPEC+ group have played a major part in the rebound in the oil market this year.
Trump's most recent jab at OPEC came late last month, asking that the cartel increase oil output because "World Markets are fragile, price of Oil getting too high."
Tweet 1
Fesharaki told CNBC that "never before has a president had so much impact on oil prices."
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9dae101b2cf5685e16ad6832227a3fa9 | https://www.cnbc.com/2019/04/08/morgan-stanley-expects-tesla-model-s-and-model-x-sales-to-fall.html | Morgan Stanley cuts Tesla price target and lowers Model S and Model X sales forecast | Morgan Stanley cuts Tesla price target and lowers Model S and Model X sales forecast
People look at a Tesla Model X displayed at a shopping mall in Hong Kong on March 10, 2019Vivek Prakash | AFP | Getty Images
Morgan Stanley cut its Tesla price target Monday, saying it expects the automaker to deliver fewer vehicles in 2019, especially its high-end Model S sedan and Model X sport utility vehicle.
Morgan Stanley analyst Adam Jonas lowered his price target on Tesla from $260 to $240 a share, and cut forecasts for a number of key financial metrics, including earnings, revenues, cash flow and gross margins after the company reported disappointing first-quarter deliveries last week. Jonas has the equivalent of a neutral rating on the stock.
VIDEO1:0701:07Tesla dismisses sales employees as part of earlier-announced cutsClosing Bell
Tesla shares were up nearly 1 percent Monday in morning trading. The stock has lost more than 17 percent of its value since the beginning of the year.
Apart from declining deliveries, negative sentiment around Tesla's stock also could begin to hurt the company's actual business, Jonas said.
"We are increasingly concerned about the impact that investor concerns over Tesla's financial strength and forward looking liquidity position could potentially have on employee morale, customer perceptions and standing with key stakeholders and suppliers," he said.
Jonas now expects Tesla to deliver 344,000 vehicles in 2019, which is at the low end of Tesla's own guidance and down from Jonas' previous forecast of 362,000 units. He expects Tesla to deliver an average of 14,800 Model S and X vehicles per quarter and 287,500 Model 3 midsize sedans for the year.
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ebc327e0ea668c47d2e179fa1c4d6c7d | https://www.cnbc.com/2019/04/08/saudi-arabia-denies-it-threatened-to-strip-us-dollar-from-oil-trading.html | Saudi Arabia denies it threatened to strip the US dollar from oil trading | Saudi Arabia denies it threatened to strip the US dollar from oil trading
Saudi Energy Minister Khalid al-Falih speaks to the media during Saudi government ministers brief in Riyadh, Saudi Arabia December 19, 2018.Faisal Al Nasser | Reuters
Saudi Arabia on Monday denied a report that the kingdom is threatening to sell its oil in currencies other than the U.S. dollar if American lawmakers pass legislation targeting OPEC.
Reuters reported last week that the Saudis had raised the issue within OPEC and with U.S. officials. Most crude oil is traded in U.S. dollars, and selling crude in other currencies could chip away at the greenback's dominant role in the international financial system.
On Monday, the kingdom called the report inaccurate, saying it does "not reflect Saudi Arabia's position on this matter."
"The Kingdom has been trading its oil in dollars for decades which has served well the objectives of its financial and monetary policies," the Ministry of Energy, Industry and Mineral Resources said in a statement.
According to Reuters, the plan to marginalize the dollar in oil trading was a response to potential passage of the bipartisan No Oil Producing and Exporting Cartels Act in Congress. The so-called NOPEC legislation would enable the Justice Department to sue OPEC for coordinating production.
The 14-nation producer group helps to drain oversupply from the oil market and boost crude prices by cutting output. The group is currently partnering with Russia and other nonmember oil producers to keep 1.2 million barrels per day off the market.
The Saudi Energy Ministry on Monday suggested that targeting the dollar could disrupt OPEC's objectives.
"Furthermore, the Ministry reaffirms the Kingdom's commitment to its role as a stabilizing force of energy markets, and its desire not to risk such a key policy priority through a fundamental change to the financial terms of oil trading relationships around the world," it said.
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ac6b658736c26fef3be99e316abe1ee1 | https://www.cnbc.com/2019/04/08/what-exactly-is-a-roth-ira-and-why-should-you-have-one.html | What exactly is a Roth IRA — and why should you have one? | What exactly is a Roth IRA — and why should you have one?
FabrikaCr | iStock | Getty Images
When investors are deciding where to stash their cash for retirement, there are several options.
Americans rely more and more on saving in their employer-sponsored 401(k) plans — which are heavily funded by tax-deferred salary deferrals from the employee and tax-deferred employer matching contributions.
Once employment ends, these 401(k) plan accounts are often rolled over into an individual retirement account for purposes of managing the portfolio and continuing the tax advantages previously enjoyed in the 401(k).
However, a big opportunity often missed in this area is Roth savings. The current landscape and rules around retirement savings provide a number of strong incentives for you to consider setting up a Roth IRA this year.
More from Fixed Income Strategies:The top 10 cities where you should spend retirement Medicare won't cover this key expenseCut these unnecessary expenses and save thousands a year
With Roth tax treatment of your savings, money goes in after tax. But the investment gains are tax-deferred, and if you meet certain requirements, you can withdraw all of the investment gains tax-free. In order to receive the investment gains tax-free from a Roth IRA, the account will need to have been open for five years and you must qualify for a trigger event, such as the following:
When distributions are made on or after the IRA owner reaches age 59½.After the death of the IRA owner.After a disability in which the IRA owner can't do any substantial work.If a withdrawal, of up to $10,000, is being used for first-time home-buying expenses.
The five-year rule makes it wise to set up a Roth IRA as soon as possible. As soon as money goes into any Roth IRA, the five-year period begins. The rule allows for aggregation back to the first Roth IRA contributed to in order to satisfy the five-year rule. This means you need one Roth IRA to satisfy the five-year rule for any other Roth IRAs opened in the future.
The rule also looks at tax years. In 2019 you can still contribute to a Roth IRA for 2018 until April 15. This would technically start the five-year clock as of 2018. It's also important to note that if you are saving in your Roth 401(k) account and roll it over to a Roth IRA, the years it was open in the 401(k) don't carry over to the Roth IRA. If you have a Roth 401(k), consider opening a Roth IRA and contribute to start the five-year clock, as you will likely do a rollover to a Roth IRA at some point.
You can contribute a small amount to the Roth IRA — say, $50 or $100 — to get the clock running. Be aware of any account minimums, fees or other charges that your provider might charge. Certain companies, such as Fidelity, now offer Roth IRAs with no account fee or minimums.
If you make too much money, you will not be able to directly contribute to a Roth IRA. For single filers in 2018, that income threshold starts at $120,000 and ends at $135,000. For married people filing jointly — and qualifying widowers — that income threshold starts at $189,000 and ends at $199,000.
Another option to get money into a Roth IRA is to do a Roth conversion from a traditional IRA, as there are no income limits or phase-out ranges for doing conversions. If you make too much money to contribute to a Roth IRA or don't have any money in an IRA and want to get money into one this year, you can use the backdoor Roth IRA strategy. The backdoor allows you to contribute to an IRA as non-deductible and then convert it to a Roth IRA. To learn more about the backdoor Roth IRA strategy, click here.
Another reason to save in a Roth IRA today is tax diversification. You might have heard the phrase "Father Time is still undefeated." I often say, "Diversification is still undefeated against Father Time."
One of the best features of a Roth IRA is its ability to serve double duty as an emergency fund and a retirement savings vehicle.
Diversification is crucial to smart long-term financial planning. It doesn't matter if it's within asset classes, among asset classes or across different tax treatments, diversification helps. We don't know for certain what the future holds, but by diversifying we reduce the risk of relying solely on the outcome of one event.
Most workers who are saving for retirement have tax-deferred retirement savings in their 401(k) plan. They also might have after-tax savings in their bank account. However, far fewer people have Roth savings. Roth savings are most beneficial when compared to tax-deferred savings when tax rates are lower today and higher in the future. This allows us to save after-tax today at a lower rate than if we had waited to pay taxes in the future.
Generally speaking, when you are younger and earlier in your career, Roth IRA makes more sense as you will likely increase your earnings over time and therefore move to a higher tax bracket. But it isn't a given. Since we don't know where tax rates will be in the future there is a benefit to having some tax diversification in your savings.
While I just said we don't know where tax rates will be in the future, there are strong indications tax rates are lower today than they will be soon. You can see clear needs for revenue increases at both the state and federal levels with state budgets feeling a lot of pressure, underfunded state pensions needing additional funding, Social Security needing more funding and the federal deficit increasing.
VIDEO1:5801:58Reconsider a Roth IRAOn the Money
Furthermore, the Tax Cut and Jobs Act of 2017 temporarily reduced tax rates and income taxes for many Americans. The tax cuts are temporary according to the bill itself, as the individual tax cuts expire after 2025 and will revert back to the previous rates. If you paid lower taxes for 2018, consider using a Roth IRA to save for retirement. And remember, you still have time to contribute for 2018 until April 15.
One of the best features of a Roth IRA is its ability to serve double duty as an emergency fund and a retirement savings vehicle. Since many Americans have less than $1,000 saved at any time, it's not always feasible to have separate funds for retirement, college savings, emergency funds and other goals. Instead, we're required to be flexible. To this point, Roth IRAs offer flexibility that IRAs and 401(k) plans don't when it comes to accessing your savings.
With a Roth IRA, you can withdraw your contributions at any time without having to pay additional income taxes — because it was after-tax already — and you avoid the 10 percent early withdrawal penalty on the withdrawals. Withdrawals from IRAs and 401(k) plans prior to age 59½ are generally subject to the 10 percent penalty. If you are trying to invest and save for retirement, but might need access to your savings, a Roth IRA could be the right vehicle for you.
Make 2019 the year that counts. Review your finances, look at your savings opportunities and consider adding a Roth IRA to the mix. There are a lot of benefits to adding a Roth IRA sooner rather than later.
— By Jamie Hopkins, director of retirement research at Carson Group
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4de7bdf009d30da6ef59e6fccbcf686b | https://www.cnbc.com/2019/04/09/chipmakers-have-surged-this-year-but-their-first-quarter-earnings-likely-plummeted.html | Chipmakers' lousy first-quarter earnings could threaten sector's strong stock market gains | Chipmakers' lousy first-quarter earnings could threaten sector's strong stock market gains
A worker prepares to load a silicon wafer machine in a clean room at the Texas Instruments semiconductor fabrication plant in Dallas, Texas.Jason Janik | Bloomberg | Getty Images
Semiconductor stocks, up sharply this year on hopes for a China trade deal, could face their day of reckoning during earnings season.
On Tuesday, chip stocks were being sold in a broader market decline, that saw some other tech names, like Apple and Facebook hold onto gains.
The S&P technology sector closed at a record high Monday, and is up about 33% since the market's Christmas Eve sell-off. Within that sector, semiconductors have been outperforming. The SMH VanEck Vectors Semiconductor ETF is about 3% off its all-time high and very close to its 52-week high. It was trading down 1% Tuesday, but still up nearly 28% year to date.
Chip stocks have made sharp gains this year, even though analysts expect the industry's earnings to be down 20% for the first quarter and continue to decline this year, according to Refinitiv data.
VIDEO2:5702:57Investors debate whether semiconductor rally can lastClosing Bell
"They certainly have ground to give up, and that's what gets dangerous. When you come into the earnings season with the kind of momentum we've seen in some of these high-flying names ... whether it's Nvidia or Micron ... unfortunately you're on a knife's edge and there's a potential for a great deal of volatility," said Art Hogan, chief market strategist at National Securities.
Analysts say there is a good chance that some chip companies could offer even weaker forward guidance, with demand expected to decline for everything from PCs to smartphones and cars.
"I think there's some earnings caution building in here," said Art Cashin, UBS director of floor operations at the New York Stock Exchange. But he also said there were doubts circulating about a Chinese trade deal Tuesday, after reports that President Donald Trump could put tariffs on Europe.
But despite Tuesday's sell-off, the chip stocks have been rising on the view that a turnaround could come in the second half of the year.
"Investors have discounted the entire recovery in the back half of they year," said Dan Niles, founding partner of AlphaOne Capital Partners. "Memory prices continue to go lower and PC demand looks like it will be negative this year. ... It's very hard to see these stocks sitting at all-time record highs and knowing earnings are going to be down 25%, and we've got summer sitting between now and the end of the year. If you were sitting in August and September, you could say people are getting jacked up for holiday sales."
Chip companies are expected to see earnings drop by 16.5%, then another 20.8% in the second quarter and an 18.4% decline in the third quarter, according to Refinitiv. The semiconductor equipment companies are expected to see earnings decline 36.4% for the first quarter, and the same type of drop is expected in the second quarter, according to Refinitiv data. By the fourth quarter, earnings comparisons are expected to fall by just about 4%.
"If companies come out and are cutting their forecast, do the stocks go down? The reaction to earnings will be very telling," said Niles.
Nvidia fell 1.4% Tuesday. Micron, down just 1% on Monday when Cowen downgraded it, was down 2.4% Tuesday. It has been downgraded by a number of analysts.
Oppenheimer analysts, in a note, said semiconductor shares remain sharply higher despite the "raft of estimate cuts" year to date. "We attribute much of the move to hopes for a U.S./China trade deal and 2H fundamental inflection. Near-term visibility remains poor and 2Q expectations appear low, in our view. We remain stock selective." The Oppenheimer analysts said their top picks are Broadcom, Nvidia, Marvell Technology and Monolithic Power Systems.
U.S. and Chinese negotiators continue to work on a deal that markets expect would end many of the punitive tariffs put on goods from both countries and despite the selling, there was still a sense a deal could be announced this quarter.
"People are saying it's China, China, China. ... At a certain point, we'll find out. It could be sell the news. That doesn't fix the issues. That doesn't fix the issues with global growth. A China deal is not going to make people run out and buy a 5G cellphone," said Niles.
Source: Refninitiv
Niles said the decline in smartphone sales is a big issue for chips, since 25% of chip demand is the smartphone market. He said consumers are waiting for new 5G models. "This year smartphones are going to be down more than they were last year," he said.
Another 10% of chips go into personal computers, which have been in decline since 2012, and 15% go into cloud infrastructure. "Cloud vendors are all absorbing huge spending they had last year. That's going to grow, but it's going to slow down from last year," he said.
Automobiles are about 15% of end demand, and Niles notes China had its first decline in unit sales ever last year and auto sales are expected to drop again this year.
"When you're saying most companies are going to come out and report and guide lower, the positives are obviously investors are saying the Fed's done and we're going to get a trade deal with China and that's going to fix everything. I would say not really, the economy was slowing down globally already," said Niles.
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087d48279baa49a99d1654a6c030268a | https://www.cnbc.com/2019/04/09/cramer-zillows-home-flipping-plan-is-too-risky-even-with-a-new-ceo.html | VIDEO2:1402:14Zillow's home-flipping plan too risky even with new CEO: CramerMad Money with Jim Cramer
It's too early to make a bet on Zillow and its fledgling home-flipping business even under new management led by co-founder Rich Barton, CNBC's Jim Cramer said Tuesday.
The online real estate marketplace expects core business revenue to grow 56% within the next five years, but their cash-burning plan to buy and sell homes could take just as long to realize $20 billion in annualized revenue.
Cramer thinks that's too long to wait and see if the program will work.
"I liked the old Zillow, even if it was slowing down a bit, as it was a lot less risky," the "Mad Money" host said. "I'm not yet sold on the new Zillow, even with a much better class of CEO."
Barton returned to Zillow as CEO after co-founder Spencer Rascoff stepped down in February after 10 years in the role. Zillow announced the home-flipping concept nearly a year ago and the stock has taken a number of tumbles since.
The company wants to buy 5,000 homes a month, which could be an expensive endeavor, Cramer said. Zillow, which has dominated its industry, faces further pressures because its core business is not growing as fast as it once did, he added.
Cramer thinks the pivot to investing in houses was ill-advised, citing British investment bank Barclays' downgrade of the stock from hold to sell last month. On Monday, the American investment bank Cowen upgraded the security from market perform to outperform, throwing its faith behind the new leadership. But Cramer said it will be a wait-and-see gamble.
"Maybe Rich Barton can orchestrate a phenomenal turnaround at Zillow," Carmer said. "I'm glad he's running things again. But I think this headlong rush into the house-flipping business could prove to be very risky and, even if it works, there will absolutely be some brutal speedbumps along the way."
In October, Cramer said the new venture is not what Zillow's shareholders signed up for.
"Investors ... don't want an interest-rate-sensitive company that owns homes; they bought Zillow because it's a high-margin, asset-light online real estate play with a fabulous multi-year growth story," he said then.
In February, RBC Capital Markets' internet analyst Mark Mahaney said Barton, who was behind the launches of Expedia and Glassdoor, is the right choice to get the job done. But his firm also thinks it's a risky move.
"It's just, it is a big swing, it's a big risk," Mahaney told CNBC. "I want to see him bring his magic back to the company before we get constructive on the shares."
Zillow's shares are up more than 16% in 2019, but is down nearly 30% since this point last year. The stock dipped 1.19% Tuesday.
VIDEO7:4007:40Cramer: Zillow's home-flipping plan is too risky even with a new CEOMad Money with Jim Cramer
Questions for Cramer? Call Cramer: 1-800-743-CNBCWant to take a deep dive into Cramer's world? Hit him up! Mad Money Twitter - Jim Cramer Twitter - Facebook - InstagramQuestions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com
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7bae8ee8f104e4f1275db8f6a7692fa8 | https://www.cnbc.com/2019/04/09/heres-americas-juiciest-money-secrets-as-told-to-cnbc.html?__source=sharebar%7Ctwitter&par=sharebar | 'I stash cash where my wife can't find it': America's juiciest money secrets, as told to CNBC | 'I stash cash where my wife can't find it': America's juiciest money secrets, as told to CNBC
Getty Images
When asked what their biggest money secret is, participants in the new CNBC and Acorns Invest In You Savings Survey spilled the beans in two different ways: Some shared a secret savings or investing tip that they've found helpful, while others — reading the question differently — 'fessed up to a secret money shame, something they are embarrassed, or regretful, about when it comes to their finances.
From bad lottery habits to daily inventory taking, here's a look at some of Americans' most helpful, alarming and surprising money secrets.
The survey, conducted for CNBC and Acorns by SurveyMonkey in March, polled more than 2,300 adults about various aspects of financial wellness.
Roy Hsu | Getty Images
We wouldn't know it from looking at you … or asking ... but you have nothing saved, you're up to your ears in credit card and student loan debt, and you are one missed payday away from losing everything.
You're not alone: Despite 100 months of uninterrupted job growth in the U.S., 78% of Americans live paycheck to paycheck, according to employment website CareerBuilder.com, and only 40% would be able to cover a $1,000 emergency expense.
We got a lot of answers along these lines, including: "I don't have enough for essentials," "I don't have much" and "I'm just scraping by." In our survey, 17% of respondents said meeting daily expenses is their biggest financial worry.
Juanmonino | iStock Unreleased | Getty Images
If there's one bad habit sure to drive your financial adviser crazy, it's your love of lottery tickets or casino gaming. Sure, you're more likely to get struck by lighting — twice — than win the lottery, but no matter: This is another secret money shame (definitely not a tip!) you share with a lot of other people.
A recent study by Vancouver, British Columbia-based Vision Critical found that almost 50% of Americans regularly play the lottery, while the North American Association of State and Provincial Lotteries reports that we spent a collective $80.5 billion on lottery tickets in 2016.
Jamie Grill | Getty Images
This one is a great idea.
Who doesn't know someone with a big jug or a coffee can full of pennies at home? Some people save up until their piggy bank is full and then run to the bank or local Coinstar machine to convert all that change into cold, hard cash or gift cards, but another option could be an online investing app.
Investors using these new smartphone-based tools can, among other things, choose to have their extra "spare change" from purchases rounded up to the next dollar and invested in a portfolio tailored to their time horizon and needs, putting the power of compound interest to work from the get-go. And there are a lot of savers out there: In the survey, a majority of respondents said they considered themselves savers (56%) rather than spenders (40%).
jmoor17 | E+ | Getty Images
This answer — well, the general sentiment rather than the specifics — was more common than you'd think.
More typical, and less dramatic, phrasing ran along the lines of "I give more away than I make to help others" or "My problem is trying to help others and getting stuck." On the other side of the equation, one survey participant reported that her sister "gave us $5,000 to help with the down payment on our house."
The "airplane oxygen mask rule" applies down here on terra firma, too: You have to put your own mask on first before helping to put one on someone else. In other words, you can't be of any long-term help to others unless your own finances are in order.
Apart from properly handling financial requests from loved ones, also keep an eye out for scam-happy strangers. Every year around this time, phone fraudsters posing as the IRS try to bilk taxpayers out of hard-earned cash.
Remember: The IRS will never phone or email you to ask for personal information such as Social Security numbers.
John M Lund Photography Inc | DigitalVision | Getty Images
Like setting your alarm clock 10 minutes fast so you don't oversleep, pretending that you have less money than you actually do might seem ridiculous or impossible — but can actually work.
Other popular survey answers that fall into this category were "I have some money from my paycheck sent to another account immediately" and "I save before I see the money, so that I'm not tempted."
Setting up regular automatic deposits into a savings account that's hard to access — say, a high-interest savings account at an online bank for which you've cut up the debit card — can make it easier to "set and forget" all those savings. You could also invest a thousand or two in an untouchable CD, and (forcibly) forget about that cash until it matures, too.
Westend61 | Westend61 | Getty Images
The power of positive thinking? Or a lot of hooey?
Truth be told, there's something to be said about having a constructive, productive mindset when it comes to your finances. Rather than endlessly ruminate over your money woes — while doing nothing to address them — start thinking of ways you can dig yourself out of the hole, even if at first it's by the spoonful, rather than the shovelful.
Regarding money mindsets, in the CNBC and Acorns survey, among five choices of traditional sayings, 33% said they most identified with "money can't buy you happiness," 29% liked "a penny saved is a penny earned," 18% preferred "you can't take it with you," and 17% took to be "careful not to be penny-wise and pound-foolish."
Richard Goerg | Photographer's Choice RF | Getty Images
The truth hurts, but there's no better way to avoid fees, finance charges and debt-induced fear than paying in full for any purchases you make. That could mean always paying in cash on the spot or, more commonly, paying off your entire credit card bill each month.
Related survey answers included "I pay as fast and early as I can" and "Cash is king." In the survey, 83% of respondents said they'd rather wait to buy a nonessential "splurge" item they wanted until they'd saved enough to pay in cash, compared with 14% who'd put it on plastic.
Alexander Spatari | Moment | Getty Images
If you're plunking down $3 or more a day on fancy coffee drinks, you can afford to instead put that $21 a week into a high-yield savings account, Roth individual retirement account, 401(k) plan or other investment vehicle. Socking away that $90 or so a month could add up to almost $1,100 a year saved instead of sipped … and hopefully growing, thanks to compound interest. Just brew your own at home!
In the CNBC and Acorns survey, only 7% of respondents said they'd splurge with a $5,000 bonus; the remainder said they'd pay off debt, save for emergencies or education, or catch up on overdue bills. Whether it's three grand or three bucks, spend your money wisely.
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A good way to start the day is to actually open that traditional checkbook, if you have one, or log into your bank or other financial institution website to check balances, and review purchases and other transactions from the last 24 hours.
This reminder can help you stay on your budgetary track, sound a warning bell or even make you feel good about sound financial choices you've made. Again, on a related note, in the survey, a majority of respondents said they considered themselves savers (56%) rather than spenders (40%).
GrashAlex | iStock | Getty Images
This is another kind of statement that was more common among survey respondents than financial advisors would hope.
The CNBC and Acorns Invest In You Savings Survey found that 24% of respondents were either somewhat less confident or much less confident about their ability to save for retirement, compared with three years ago. And for 23% of participants, being able to save enough for retirement is their biggest money worry.
That jibes with findings in a recent Bankrate study, which found 21% of earners are not saving anything out of each paycheck for retirement. That's more than 1 in 5 Americans.
Given the demise of the company pension and a hazy future for Social Security, they're taking a big risk regarding their future. Just 16% of Americans are saving more than 15% of their annual income for retirement. Experts generally recommend putting aside 10% to 20% of pay.
Tobias Titz | fStop | Getty Images
You may have a hobby or untapped skill that you can put to work for your savings. Love dogs and work from home? Think about dog-walking your neighbors' pooches during the day; you'll earn cash and get to stretch your legs.
From driving for ride-hailing apps such as Uber and Lyft to part-time catering and tax-time accounting, more and more Americans are starting side gigs to put a dent in their debt and sock away a little dinero, too. Today's more active and mobile retirees are also getting in the game, with everything from second careers based on long-held but ignored passions to part-time jobs taken simply to earn extra money.
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This kind of answer popped up surprisingly often.
Other takes included "I stash cash behind the kids' pictures on the wall" and "I hide money everywhere." Maybe it's the afterburn of the Great Recession of 2008-2009, but some people still keep a lot of cash on hand rather than investing it in the market or saving it in a high-interest savings account.
In fact, in the survey, 22% of respondents said they'd put an unexpected $5,000 bonus to use by ... doing nothing with it and, instead, saving it for "short-term expenditures or emergencies." That roll of bills under the mattress may be handy, but by not having that money in the bank or market, you're not only missing out on potential interest earned but also risk losing the cash.
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Ouch. This is a big money — not to mention marital — no-no.
So-called financial infidelity is one of the biggest factors in breakups. Marriage and money seem like inseparable topics; two pessimistic survey participants even cited "don't get married" and "don't let your spouse spend it all" as their secret money tips.
In the CNBC survey, only 16% of respondents said they regard their spouse as a financial role model, 27% almost never discuss personal finances with family members and fewer than half (45%) make financial decisions in partnership with their another household member.
VIDEO1:3801:38What Americans would do with an extra $5,000Invest in You: Ready. Set. Grow.
More from Invest in You:Saving early is the greatest gift you can give yourselfBoost your financial IQ by answering these 10 questions
Disclosure: NBCUniversal and Comcast Ventures are investors in Acorns.
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642557381febde37de2637cf5452db57 | https://www.cnbc.com/2019/04/09/roku-and-three-other-stocks-have-doubled-in-price-since-december.html | These stocks have doubled in price since December lows | These stocks have doubled in price since December lows
VIDEO3:0303:03A group of stocks has more than doubled off December lowsTrading Nation
The stock market has erased the December sell-off as it heads back to record highs.
For a handful of stocks, their revival has been even better. Roku, Snap, Avon Products and Chesapeake Energy have rallied more than 100 percent off their December lows.
One of those stocks has an interesting setup, says Ari Wald, head of technical analysis at Oppenheimer.
"With Roku, it's more positive than not, more so on a long-term basis," Wald said on CNBC's "Trading Nation" on Monday. "From a near-term trading basis, though, this stock still could come in a little bit. I think you could be patient with it."
Wald is watching two key levels: $60, which corresponds with its 50-day moving average, and $53, which lines up with its 200-day average. It was at $60.60 in Tuesday's premarket.
"You can see that 200-day is trending higher so that would be indicative of a rising trend, but trading wise … you might have some downside risks to that level first," said Wald.
Gina Sanchez, CEO of Chantico Global, sees both pros and cons to Roku.
"If you look at the bull case for Roku, one of the big points is that it is stream platform agnostic, so more people make apps for Roku," Sanchez said on the same CNBC segment. "But the bear case is that you're getting increasing competition from Apple and Google."
Sanchez says Roku has the most to gain from expansion into international markets, though it would face tough competition from Samsung. The streaming platform generates all its revenue domestically.
Roku is up 131 percent from its late December low. However, it remains in a bear market, having fallen more than 20 percent from its 52-week highs.
Disclaimer
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b3813142f3b4602d83fb869b1777e2bf | https://www.cnbc.com/2019/04/09/saving-5-a-day-make-you-rich-one-day-money.html | Saving just $5 a day could make you rich one day — Here's how | Saving just $5 a day could make you rich one day — Here's how
VIDEO1:1101:11Saving a few dollars each day can net big returnsInvest in You: Ready. Set. Grow.
Can you spare $5 a day? If so, you could become a millionaire — one day.
Small investments made in your early 20s make it easy to become a millionaire.
However, many young people today put off investing.
Millennials generally don't plan to start investing until their late 30s, and half the generation isn't investing at all, according to a study by TD Ameritrade.
More from Invest in You:Boost Your financial IQ by answering these 10 questionsGot goals? These simple actions will help you get the things you wantWhat your FICO score means and why you should pay attention
Many young people worry more about paying off their debt than investing, but waiting until you're out of debt to invest can make it harder to realize your goals.
Investing just $5 a day into an account with a 10% annual return could net you around $30,000 in 10 years, $330,000 in 30 years and $2.3 million in 50 years.
An account with a more modest 6.5% annual return could net you around $26,000 in 10 years, $168,000 in 30 years and $667,000 in 50 years.
Disclosure: NBCUniversal and Comcast Ventures are investors in Acorns.
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c77204449175a8270351f03f2414d2bc | https://www.cnbc.com/2019/04/10/ecb-interest-rates-draghi-under-pressure-amid-gloomy-economic-outlook.html?__source=fincont&par=fincont | European Central Bank holds interest rates as Draghi warns of downside risks | European Central Bank holds interest rates as Draghi warns of downside risks
VIDEO5:1405:14ECB's Draghi: Euro zone risks remain tilted to the downsideEuropean Central Bank
The European Central Bank (ECB) held interest rates steady on Wednesday, shortly after the International Monetary Fund (IMF) sharply downgraded its economic growth forecast for the euro zone economy.
The ECB has been forced to backtrack on its plans to tighten monetary policy, amid an intensifying climate of economic gloom.
Speaking at a press conference in Frankfurt, Germany on Wednesday, ECB President Mario Draghi warned that data gathered by policymakers in recent weeks had confirmed "slower growth momentum" in the euro zone.
Economic uncertainty relating to geopolitics, protectionism and emerging markets had negatively impacted investor sentiment in the bloc, he added, with risks "tilted toward the downside" over the coming months.
The German 10-year government bond yield, an important benchmark for European fixed-income assets and one that is viewed as a safe haven for investors, dipped into negative territory on the back of Draghi's comments. The euro also hit session lows against the dollar, down 0.3%, to trade at $1.1232.
Interest rates on its marginal lending facility and deposit facility will remain unchanged at 0%, 0.25% and -0.40%, respectively. These have been at record lows following the euro sovereign debt crisis of 2011 in an effort to boost inflation and stimulate growth.
VIDEO2:0702:07ECB holds interest rates steady amid slowdown concernsEuropean Central Bank
The euro zone's central bank, for those nations that share the single currency, ended its massive bond-buying program back in December. But, a rapid decline in sentiment and weak demand from abroad has ratcheted up the pressure for policymakers to unveil even more stimulus.
Draghi cautiously addressed market speculation about further delays to the central bank's first post-crisis rate hike and the side effects of years of negative rates on Wednesday.
Meeting earlier than usual so top policymakers can attend the IMF's Spring Meeting in Washington, D.C., this week, investors were anxious to understand more about the so-called two-tiered system for bank reserves.
European Central Bank President Mario Draghi arrives for the European Council Summit in Brussels, Belgium, on March 22, 2019.JULIEN WARNAND | AFP | Getty Images
Draghi had previously said the ECB must decide whether it needs to mitigate the side-effects of negative rates but insisted on Wednesday that it was too early to decide on a two-tiered system.
This measure aims to protect banks from part of the cost incurred by negative rates — akin to moves taken by central banks in Switzerland and Japan.
The approach would mean that banks are exempted in part from paying the ECB's -0.40% annual charge on their excess reserves. That would boost the banks' profits at a time when many lenders struggle with low profitability.
Some members of the ECB's Governing Council are said to be in favor of such a move.
However, forthcoming personnel changes at the ECB could risk delaying a discussion about a two-tiered system and the likelihood of an interest rate hike over the coming months.
Alongside ECB Chief Economist Peter Praet, Draghi is scheduled to step down in October and policymakers are thought to be reluctant to negotiate a fundamental revamp of monetary policy before new leaders take charge.
The stars of the European Union sit on banners flying outside the European Central Bank headquarters in Frankfurt, Germany, on July 20, 2017.Krisztian Bocsi | Bloomberg | Getty Images
Alexis Gray, senior economist at Vanguard Asset Services, told CNBC Wednesday that the ECB was probably "somewhat hamstrung" when it comes to ramping up stimulus measures over the coming months.
On Tuesday, the IMF slashed its forecast for global economic growth this year, saying a slowdown could force world leaders to coordinate stimulus measures.
The IMF also sharply downgraded growth in the euro zone. It now expects the bloc to grow at 1.3% in 2019 — lower than its forecast had been six months ago.
One example of stimulus introduced by the central bank last month was a series of quarterly targeted longer-term refinancing operations (TLTRO-III). The program, which is designed to stimulate bank lending in the euro zone, is set to start in September 2019 and end in March 2021.
However, Draghi warned that the pricing of TLTRO will take into account a "thorough assessment of the bank-based transmission channel of monetary policy as well as further developments in the economic outlook." He also added that any information on TLTROs will be communicated at forthcoming meetings.
The TLTROs are loans that the ECB provides at cheap rates to banks in the euro area. As a result, lenders are able to provide better credit conditions to customers, which in turn stimulates the real economy.
This mechanism was first introduced in 2014, before being brought in for a second time in March 2016.
— CNBC's Silvia Amaro contributed to this report.
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e5b148743db48c604caf69106b6d9c2d | https://www.cnbc.com/2019/04/10/ecb-set-to-hold-steady-amid-heightened-economic-risks.html?__source=fincont&par=fincont | ECB set to hold steady amid heightened economic risks | ECB set to hold steady amid heightened economic risks
Mario Draghi, president of the European Central Bank (ECB), looks on during the 'ECB and its Watchers' conference in Frankfurt, Germany, on Wednesday, March 27, 2019.Bloomberg | Bloomberg | Getty Images
The European Central Bank is in an uncomfortable situation. It only announced its exit from the crisis-era multi-trillion bond buying program at the end of last year. However, only four months later there is more and more evidence that the economy is only having a temporary weakness as data across the board comes in lower than expected.
"The euro zone purchasing managers' index (PMI) indicated a sluggish end to the first quarter with growth ebbing to one of the most lethargic rates seen since 2014," Chris Williamson, chief business economist at IHS Markit wrote in a global economy report Tuesday. "The slowdown was led by a deepening downturn in manufacturing, where output fell at the sharpest rate for almost 6 years."
That's a problem for the ECB, as slower growth and demand will not help to bring inflation back toward their target of 2%. A rate hike is not expected for this year and there is even a growing debate to lessen the burden on banks from the negative deposit rate.
"We have pushed back our first rate hike to October 2020," Dirk Schumacher, ECB watcher Natixis in Frankfurt said in a note. "We expect the ECB to introduce a tiering system for banks' excess liquidity, reducing the pressure to lift rates out of negative territory."
A so called two-tiered approach would mean that banks are exempted in part from paying the ECB's 0.40% annual charge on their excess reserves. That would boost the banks' profits at a time many lenders struggle with low profitability. Some members of the ECB's Governing Council are said to be in favor of such a move.
"Tiering won't be a silver bullet for banks or the economy but is likely to form part of a credit easing strategy alongside adjusted forward guidance, strong use of (targeted long-term refinancing operation) TLTRO - III's "built in incentives", and possibly some new tools," Marc Wall, chief economist at Deutsche Bank said in a note last week. "The next most likely occasion for policy announcements is June. The details will be conditioned on the new ECB macro forecasts."
The TLTROs are loans that the ECB provides at cheap rates to banks in the euro area. As a result, lenders are able to provide better credit conditions to customers, which in turn stimulates the real economy.
TLTRO III is the third injection of stimulus of this kind from the ECB, announced in its policy meeting in March. If commercial banks lend this money onto the real economy, they then receive cash rather than having to pay interest on the loans.
Last June Draghi announced its big exit strategy. It would be ironic if only a year after, he would have to announce new easing measures.
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6f6a3aa15cb8de0b244c7ad9154a0dad | https://www.cnbc.com/2019/04/10/europe-markets-ecb-rate-decision-brexit-summit-and-trade-in-focus.html?__source=fincont&par=fincont | European stocks close higher as ECB holds rates; Brexit summit in focus; Indivior tanks 70% | European stocks close higher as ECB holds rates; Brexit summit in focus; Indivior tanks 70%
European stocks closed slightly higher Wednesday, after the European Central Bank left interest rates unchanged and investors looked ahead to an emergency Brexit summit.
The pan-European Stoxx 600 closed provisionally up around 0.2%, with most sectors in positive territory.
Europe's retail stocks were the top performers, up over 1% amid earnings news. Supermarket group Tesco reported a stronger-than-anticipated rise in full-year operating profit on Wednesday, putting the company firmly on track to meet the majority of its turnaround goals. Shares of Britain's biggest retailer rose more than 3.5% on the news.
Elsewhere, G4S surged to the top of the European benchmark after Canadian firm Garda World Security said it was considering a possible offer for some or all of the British security company. Shares were almost 20% higher on the back of the news.
Meanwhile, shares of Indivior tanked over 70% Wednesday after the U.S. Justice Department accused the British drugmaker of illegally boosting prescriptions for the film version of its blockbuster opioid addiction treatment Suboxone.
On Wall Street, stocks rose slightly as investors awaited minutes from the Federal Reserve's latest policy meeting, as well as upcoming first-quarter corporate results.
Global economic growth has been a sore point for risk asset markets. The International Monetary Fund (IMF) cut its forecast for world economic growth this year, saying a slowdown could force world leaders to coordinate stimulus measures.
The IMF also sharply downgraded growth in the euro zone economy, adding to building pressure on the European Central Bank (ECB) to implement more stimulus measures.
The euro zone's central bank left interest rates unchanged on Wednesday. At a press conference following the decision, ECB President Mario Draghi said risks surrounding the euro area were "tilted toward the downside."
The ECB has been forced to backtrack its plans to tighten monetary policy in recent weeks, amid an intensifying climate of economic gloom.
Elsewhere, European Council President Donald Tusk has said the EU should consider offering the U.K. a "flexible" delay to Brexit of up to a year.
His comments come ahead of an emergency summit in Brussels, where leaders are set to decide whether to offer Britain another delay to the Brexit process.
The U.K. is currently due to leave the EU at 11:00 p.m. London time on Friday.
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bdb417208c8a73689147a66bca4cf8cc | https://www.cnbc.com/2019/04/10/higher-minimum-wage-means-restaurants-raise-prices-and-fewer-employee-hours-survey-finds.html | Higher minimum wage means restaurants raise prices and fewer employee hours, survey finds | Higher minimum wage means restaurants raise prices and fewer employee hours, survey finds
Fast-food workers and supporters organized by the Service Employees International Union (SEIU) protest in front of a McDonald's billboard in Los Angeles, in 2013.Patrick T. Fallon | Bloomberg | Getty Images
For restaurants, minimum wage hikes usually mean higher menu prices and fewer employee hours, according to a survey released Wednesday.
Harri, a workplace management software company that works with restaurants, surveyed 173 restaurants between Feb. 28 and March 15 about the impact of raising the minimum wage. The respondents represent more than 4,000 restaurant locations ranging from fine dining to fast food.
Fast-food workers across the country have been driving the fight for a higher minimum wage to keep up with the cost of living. States across the U.S. have been raising their minimum wages. Six states, including Illinois and Maryland, have approved laws phasing in a $15 minimum wage. Washington, D.C., currently has the highest minimum — $13.25 — and that is set to rise to $14 an hour on July 1 and to $15 on July 1, 2020.
VIDEO5:0705:07The US should raise the minimum wage, says Blackstone's Steve SchwarzmanSquawk Box
However, the federal minimum wage has remained stagnant since 2009. House Democrats have been pushing a bill to raise the federal minimum wage to $15 per hour from $7.25, but it is unlikely to pass.
Proponents of increasing the minimum wage argue that it can stimulate the economy, reduce income inequality and decrease taxpayer spending on government assistance programs. Opponents like the National Restaurant Association say that it eliminates jobs and hurts small businesses. But not all restaurants oppose these efforts. Notably, McDonald's told the NRA last month that it would no longer join in its lobbying efforts against minimum wage hikes.
The restaurant industry employs a large portion of minimum wage workers. It's no surprise that 83% of survey respondents affected by minimum wage hikes reported that their labor costs rose at least 3%.
Twenty-three percent responded to minimum wage hikes by not making any changes to their business.
But the majority did. The most popular response — from 71% of operators — was to raise menu prices. Nearly half reworked their food and beverage options to reduce costs.
Some operators responded to the minimum wage increases by cutting costs, with 64% saying they reduced employee hours, and 43 percent saying they eliminated jobs.
Outside the restaurant industry, companies like Bank of America and Target have been hiking internal minimum wages to attract and retain employees in a tight labor market. Similarly, 87% of survey respondents affected by minimum wage hikes said that they increased wages for workers who made more than the minimum wage.
WATCH: Bank of America raising minimum wage to $20/hour
VIDEO1:1901:19Bank of America to raise minimum wage to $20 an hour by 2021News Videos
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8962a3f06ced84b8a99a8ef88100270d | https://www.cnbc.com/2019/04/11/brexit-delayed-but-theresa-mays-leadership-is-out-of-time.html | 'Time is finally up' for Theresa May after Brexit delayed to Halloween, analysts say | 'Time is finally up' for Theresa May after Brexit delayed to Halloween, analysts say
Theresa May, U.K. prime minister, leaves a news conference following a European Union leaders summit in the Europa building in Brussels, Belgium, early on Thursday, April 11, 2019.Bloomberg | Bloomberg | Getty Images
Prime Minister Theresa May managed to convince EU leaders to grant the U.K. more time before it leaves the bloc, but experts say her days in office are now numbered.
"A six-month period is clearly enough for the Conservative Party to contemplate a change in leadership while still allowing some time for the incoming PM to seek to negotiate with the EU," J.P. Morgan economist Malcolm Barr said in a research note Thursday.
"One could even cram a general election into that time frame too if PM May were to resign by roughly the end of May."
More tumult in British politics is expected despite a reprieve from Brussels on Wednesday night, with EU leaders agreeing to a "flexible extension" of the Brexit deadline until October 31, following a request from May.
The U.K. was initially meant to leave the bloc on March 29 but was granted an extension to April 12 with the British Parliament failing to agree on any exit deal. Then, when it was apparent that there was still no majority consensus for the deal on offer, May was forced to ask for more time.
Influential pro-Brexit members of her Conservative Party are unhappy at May's decision and would have preferred a no-deal departure. Others balked at May's withdrawal agreement with the EU which was seen as a "softer" Brexit that maintained a closer relationship with the bloc.
Despite the Brexit extension Wednesday evening, May will still work to get her deal passed (which would allow the U.K. to leave earlier) and would like to do so before a May 22 cut-off point — after which the U.K. must take part in EU Parliamentary elections.
May had promised to step down if her deal was approved. She has already survived a vote of no confidence from within her own party last December (and technically another vote cannot be held within 12 months) but she could be forced to go if there is a dramatic revolt against her.
"I think this is the end of May," James Crabtree, associate professor at the Lee Kuan Yew School of Public Policy, told CNBC.
"In theory, they can't have another leadership campaign until December but if half of her cabinet resigns en masse, or if half of her parliamentary party say they want her to go — which they do — then her position becomes untenable."
"She's a very resilient prime minister and she's hung on when we all expected her to collapse but I think her time is finally up."
Crabtree said it was now a question of "when, not if" she goes. He also did not think a deal would pass by October, noting "there's not a majority for anything."
May's plea for more time comes after months of infighting in the ruling Conservative Party, and the wider U.K. Parliament, over the direction and form Brexit should take with "Brexiteers" and "Remainers" largely holding to their positions.
May has been holding talks with opposition Labour leader Jeremy Corbyn in recent days in the hope that a compromise or alternative plan can be found, but this has so far proved elusive.
WATCH: Niall Ferguson: Brexit has turned into a student asking for a paper extension
VIDEO5:4105:41Niall Ferguson: Brexit has turned into a student asking for a paper extensionMarkets and Politics Digital Original Video
The new Brexit departure date of Halloween — which is likely to be the last deadline on offer to the U.K. — has not been lost on Brexit watchers.
"Brexit is now, officially, a horror story," Barr noted, adding that the new departure date has removed any pressure on the Labour party to come to an agreement with May to ensure that a "no-deal" departure is avoided.
"The fact the 'no deal' deadline is now more than six months away serves to remove any real sense of urgency in the near term," Barr added.
A sense of calm also pervaded markets Thursday morning, sterling was a touch lower against the dollar (at $1.3088) and the euro. London's FTSE 100 index was trading lower. Daniel Lacalle, chief economist at Tressis Gestion, told CNBC Thursday that a delay means "very little" for investors in the U.K.
"The market right now is rightly discounting an agreement that may take a little bit longer or a little bit less but will ultimately happen," he told CNBC's "Squawk Box Europe."
"If you look at the performance of the pound and gilts (U.K. sovereign bonds) in particular, you are seeing that investors are quite comfortable with the current situation and that the U.K. stock market is not affected by the challenges of Brexit."
The British economy has so far proved more resilient than expected during the last two years of Brexit negotiations and uncertainty over a future relationship. U.K. gross domestic product grew by 0.3% in the three months to February 2019, data Wednesday showed. But economists question what effect the delayed departure could have on business investment.
"U.K. GDP growth will probably move sideways for a bit longer yet, perhaps averaging 1.5 percent this year," Paul Dales, chief U.K. economist at Capital Economics said Thursday. "Of course, many developments could alter our forecasts, such as the state of the global economy, a change in prime minister, a general election, a change in government, a second referendum and what actually happens with Brexit," he said in a note.
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0b42de267e606cc5e425e3d0724d4d98 | https://www.cnbc.com/2019/04/11/disney-plus-will-be-available-starting-november-12-for-6point99-a-month.html | Disney+ streaming service will be available starting Nov. 12 for $6.99 a month | Disney+ streaming service will be available starting Nov. 12 for $6.99 a month
Bob Iger, CEO, DisneyStephen Desaulniers | CNBC
Disney said Thursday it will roll out its much anticipated Disney+ video streaming service on November 12, drawing on its deep catalog of content and offering up new shows featuring favorite characters from "Monsters Inc." to Marvel to "Star Wars."
The service will cost subscribers $6.99 per month, or $69.99 per year, which is at the high end of what many analysts had expected.
"Today's presentation will show you where we're going, but also remind you that we are starting from a position of strength and optimism," CEO Bob Iger said during the company's investor day Thursday.
Analysts had expected the service would cost $5 to $7 per month, which is around half of what Netflix costs for its standard HD plan. Disney had signaled that it intended for the platform to be much cheaper than its rival.
Disney said it expects it will spend about $1 billion in 2020 on original content for the platform and $2 billion by 2024.
The company is also forecasting it will have between 60 million and 90 million subscribers by the end of 2024. One-third of those subscribers will be domestic and two-thirds will be international, the company said.
Analysts and investors will be keen to see if the revenue from subscribers will be able to outweigh the lost revenue from no longer licensing its content to third parties.
Disney+ will debut in the United States, but the company said it "plans to be in nearly all major regions of the world within the next two years."
Disney had also hinted that it is interested in bundling it with ESPN+ and Hulu, which it owns a 60% stake in. However, it's unclear if Disney+ will coexist with these other services, particularly considering 40% of Hulu is owned by Comcast (30%) and AT&T (10%).
Here's what the Disney+ interface looks like on television screens:
Disney said ahead of the meeting that it would not be commenting on the recently completed quarter or the current quarter. The company is due to report second quarter results on May 8 after the closing bell.
So far, Disney has already confirmed a number of television series and films solely available on Disney+.
For its Marvel brand, Disney will have four different live-action series featuring Scarlet Witch and Vision, Loki, Bucky Barnes (the Winter Soldier) and Sam Wilson (Falcon) and Hawkeye.
Head of Marvel Kevin Feige said the Marvel series will connect directly to the cinematic universe and to each other. An animated series called "What If" will also be available on Disney+. It will explore hypothetical questions like: what would have happened if Peggy Carter had been given the super serum instead of Steve Rogers?
Additionally, there will be two unscripted Marvel series.
From Star Wars, head of Lucasfilm Kathleen Kennedy said "The Mandalorian" series would be available to fans at the launch of Disney+. Also in the works is a new season of "Star Wars Clone Wars" and a live-action show based on Cassian Andor and K2-SO from "Rogue One: A Star Wars Story."
Pixar will produce a number of shorts for the subscription service, featuring characters like Forky and Bo Peep from the "Toy Story" films. It will also have a series based in the world of "Monster's Inc." called "Monsters at Work."
"One of the things I am most excited about is that we have the unique opportunity to extend our stories with characters our audiences know and love as well as explore new types of storytelling and animation with emerging filmmakers and show it all exclusively on Disney+," Jennifer Lee, chief creative officer of Walt Disney Animation Studios, said.
Additional originals on the platform will include a "High School Musical" series and a live-action film remake of "Lady and the Tramp."
Disney+ will also be home to "Noelle," a Christmas film starring Anna Kendrick as the daughter of Santa Claus. It is set to arrive on the platform soon after launch.
Also on the service will be a catalog of Disney's classic animated features and TV shows as well as live-action flicks and shows, including fan favorites like "Lizzie McGuire" and "Hannah Montana."
National Geographic content will also find a home on Disney+, including a show called "The World According to Jeff Goldblum" and "Magic of the Animal Kingdom," an inside look at what goes on behind the scenes at that the veterinary offices at Disney theme parks Epcot and Animal Kingdom in Orlando, Florida.
Additionally, Agnes Chu, senior vice president of content for Disney+, said all episodes of "The Simpsons" will appear on the services on day one. Other 20th Century Fox titles on Disney+ will include "The Sound of Music," "The Princess Bride" and "Malcolm in the Middle."
All films released in 2019 will also be available on Disney+ as soon as their theatrical and home entertainment windows have closed. "Frozen II" will also be available exclusively on the platform by the summer of 2020.
The company said it will continue to release major motion pictures to theaters ahead of their appearance on the streaming service. Since 2006, Disney has released 44 films that have grossed more than $37 billion at the box office.
The company also said that all content will be downloadable so that it can be watched offline.
VIDEO5:0305:03How Disney's streaming service might fit into the current landscapeSquawk on the Street
Disclosure: Comcast is the parent company of NBCUniversal and CNBC.
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dace670965f92b7db08507838a64ac14 | https://www.cnbc.com/2019/04/11/israeli-spacecraft-beresheet-falls-short-of-history-as-moon-landing-fails-in-final-moments.html?fbclid=IwAR1HS1xsM7ePut28lZbUmwaro4GwJVDy167LezogZs-3s-hMjR_G1Xer63A | Israeli spacecraft Beresheet crashes as moon landing fails in final moments | Israeli spacecraft Beresheet crashes as moon landing fails in final moments
A photo of the moon taken by SpaceIL's Beresheet spacecraft in orbit.SpaceIL
A small lunar lander crashed into the surface of the moon on Thursday, coming just short of the venture's goal.
Israeli nonprofit SpaceIL was aiming to become the first private entity to softly land a spacecraft on the moon's surface — a feat previously achieved by only three governments in history. SpaceIL confirmed that its robotic "Beresheet" spacecraft was not successful.
"We have a failure of the spacecraft. We unfortunately have not managed to land successfully," Opher Doron, general manager of the Israel Aerospace Industries space program, said on the SpaceIL's livestream of the landing attempt.
"If at first you don't succeed, try again," Israeli Prime Minister Benjamin Netanyahu said after the crash. He added the prediction that Israel will be successful in two or three years, as "an Israeli spacecraft will land on the moon, whole."
Beresheet is the Hebrew word for genesis, literally translating as "in the beginning." The spacecraft traveled for about 4 million miles before reaching the moon. The SpaceIL team showed an image of the spacecraft, taken at about 22 kilometers above the lunar surface as Beresheet began its final approach.
"We are the seventh country to orbit the moon and the fourth to reach the moon's surface," Doron said. "It's a tremendous achievement up to now."
The only other countries to reach the lunar surface before Israel are the United States, Russia and China. No private entity has safely landed a spacecraft on the moon.
Messages of condolence and congratulations poured in from around the world, as many still hailed the mission as a success for its ambition and accomplishments along the way.
"While NASA regrets the end of the TeamSpaceIL mission without a successful lunar landing, we congratulate SpaceIL, Israel Aerospace Industries and the state of Israel on the accomplishment of sending the first privately funded mission into lunar orbit," NASA Administrator Jim Bridenstine said in a tweet.
At a cost of about $100 million, the low-budget lander was backed by private donors, with state-owned Israel Aerospace Industries involved as a partner. SpaceIL president and billionaire entrepreneur Morris Kahn personally donated $40 million of the project's costs. While the mission's cost was higher than previously expected, Beresheet's mission came at a fraction of the multibillion-dollar costs of previous government projects.
The SpaceIL project was initially a competitor in the Google Lunar Xprize but that race ended last March with no winners. Although Google withdrew its $20 million prize, the Xprize Foundation had said it would give SpaceIL a $1 million award for the successful lunar landing. The Xprize founder, Peter Diamandis, said his organization would still award the SpaceIL team the $1 million so the team can "continue their work and pursue Beresheet 2.0."
SpaceX launched Beresheet as a secondary payload on a Falcon 9 rocket in February. The spacecraft traveled for nearly seven weeks before reaching the moon.
- CNBC's Jason Gewirtz contributed to this report.
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66ae175f78c746283260c344b4b2f7b3 | https://www.cnbc.com/2019/04/11/us-charges-wikileaks-co-founder-julian-assange-with-conspiracy-to-commit-computer-hacking.html?fbclid=IwAR1gNtukwMO62eo8K3P5x1uFEst1jZpVRiAQqyW6u5rsWHco-h3pebtWp1Y | US charges WikiLeaks co-founder Julian Assange with conspiracy to commit computer hacking | US charges WikiLeaks co-founder Julian Assange with conspiracy to commit computer hacking
VIDEO1:2301:23WikiLeaks founder Julian Assange faces conspiracy charges in United States after arrest in LondonNews Videos
The Justice Department announced a criminal charge Thursday against WikiLeaks co-founder Julian Assange, accusing him of conspiring with former Army intelligence analyst Chelsea Manning to hack into a classified U.S. government computer.
"The charge relates to Assange's alleged role in one of the largest compromises of classified information in the history of the United States," the Justice Department said in a press release.
The announcement followed an extradition request by the U.S. for Assange, 47, who on Thursday morning was arrested and removed from the Ecuadorian Embassy in London, where he has lived for nearly seven years. A British judge said Thursday that the U.S. must share its case justifying Assange's extradition by June 12, multiple outlets reported.
If convicted, Assange could face five years in prison, though his actual sentence would likely fall below the legal maximum.
CNN reported, however, that Justice Department officials expect to bring additional charges against Assange.
"This is a dark day for journalism," a representative for Assange said outside British court. "We don't want this to go forward. This has to be averted."
"It's called conspiracy. It's conspiracy to commit journalism," the representative continued, adding: "There is no assurance that there will not be additional charges when he is on U.S. soil."
VIDEO1:0301:03WikiLeaks co-founder Julian Assange arrested in LondonSquawk Box
The indictment, filed under seal in the Eastern District of Virginia in March 2018, states that he and Manning worked together in 2010 to crack passwords on government computers and download reams of information with the intent of publishing them on WikiLeaks. Manning was jailed last month for refusing to testify to a grand jury investigating Assange's document-sharing organization.
The alleged conspiracy has no direct connection to the 2016 presidential election, where Assange's whistleblowing organization became a main engine of controversy by publishing troves of Democratic National Committee officials' internal emails. U.S. intelligence officials alleged in a January 2017 assessment of Russia's election meddling that Kremlin military intelligence gained access to DNC networks and fed the hacked information to WikiLeaks.
President Donald Trump had praised WikiLeaks repeatedly in the late stages of the election, in which he defeated Democratic nominee Hillary Clinton. Asked by reporters about the situation during an Oval Office meeting with South Korean President Moon Jae-In on Thursday, Trump said, "I know nothing about Wikileaks. It's not my thing."
VIDEO0:3900:39Trump: 'I know nothing about WikiLeaks'White House
Manning, who held a top-secret security clearance, sent hundreds of thousands of U.S. military documents to WikiLeaks agents so that they could be publicly disclosed — and the website did publish the "vast majority" of those classified records between 2010 and 2011, the indictment alleges.
Those documents allegedly included approximately 800 Guantanamo Bay detainee assessment briefs, a quarter-million State Department cables and 400,000 Iraq War-related reports.
In March 2010, Assange allegedly "agreed to assist Manning in cracking a password stored on United States Department of Defense computers connected to the Secret Internet Protocol Network, a United States government network used for classified documents and communications."
Manning used a Linux operating system to access the password, which would help disguise her activities but was stored on a computer she did not have specific privileges to access, according to the court filing.
Assange was allegedly aware that Manning was providing him information in violation of Army regulations.
On March 8, 2010, before forging the agreement to crack the government password, Manning allegedly told Assange that "after this upload, that's all I really have got left."
The indictment says Assange replied: "Curious eyes never run dry in my experience."
A spokesperson for Manning told NBC News on Thursday that "our legal team is reviewing the language now as it may impact her appeal to the charge of civil contempt," referring to Manning's current legal situation.
"We are confident in Chelsea's legal strategy regarding the grand jury and the appeal and that we may have more we can share soon," the spokesperson added, NBC reported.
Assange had been holed up in the London-based embassy since 2012 in order to avoid an extradition to Sweden related to a sexual assault case. Two years earlier, Sweden had issued a warrant for Assange related to allegations of sexual assault and rape from two women. Those charges were dropped in 2017, though Swedish prosecution agents said that one of the alleged victim's lawyers has requested that the investigation be reopened,
But Assange had refused to leave the embassy for fear of being extradited to the U.S. — a situation that reportedly wore thin for Ecuadorian officials.
Ecuadorian President Lenin Moreno tweeted Thursday that his country had withdrawn Assange's asylum status "after his repeated violations to international conventions and daily-life protocols."
Moreno TWEET
U.K. authorities had entered the London embassy and arrested Assange, who yelled "U.K. must resist" while being loaded into a police wagon. He appeared to be carrying a copy of Gore Vidal's "History of the National Security State" at the time of his arrest.
NBC News TWEET
He was arrested for allegedly breaching U.K. bail conditions, and had been arrested again in a U.S. extradition warrant, according to Metropolitan Police. Multiple outlets reported Thursday that a British court found Assange guilty of jumping bail.
Assange's lawyer, Jen Robinson, did not immediately respond to CNBC's request for comment on the DOJ's announcement of the charge against her client. She had tweeted earlier Thursday that the U.S. warrant had been issued in December 2017.
Robinson vowed Thursday that "we will be contesting and fighting extradition." She added that Assange "will be brought before the court again within the next month."
Read the full indictment against Assange here:
This is breaking news. Please check back for updates.
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a62937772f85058aed77cb669af83138 | https://www.cnbc.com/2019/04/12/5-last-minute-tax-tips-for-late-filers.html?__source=sharebar%7Ctwitter&par=sharebar | 5 last-minute tax tips for late filers | 5 last-minute tax tips for late filers
VIDEO2:3002:30Last-minute tax tipsOn the Money
If you're waiting until the absolute last moment to file your taxes, you're not alone.
In fact, 20% to 25% of Americans wait until the last 14 days before the deadline to prepare their returns. But procrastinating is more troublesome this year because it's the first time taxpayers are filing under the Tax Cuts and Jobs Act.
Still, for those 11th-hour filers, it's not too late to make a few last minute moves that could trim your bill — and save you money. Here's how:
Unlike 401(k) contributions that have to be made before year-end, taxpayers have until April 15 to contribute to their individual retirement accounts and still take a deduction on their 2018 return.
If you don't participate in a workplace retirement plan, you can deduct up to $5,500 in IRA contributions and can add in another $1,000 "catch-up" contribution if you're over age 50.
If you are in a 401(k) plan at work, you can still fully deduct IRA contributions if your adjusted gross income is less than $63,000 for singles — or $101,000 for married couples.
Additionally, if your spouse has a company plan, you can still contribute to a spousal IRA and get a full deduction — as long as your combined gross income is less than $189,000.
The amount you save for making a contribution will vary. For example, if you are in the 25% tax bracket and make a deductible IRA contribution of $5,500, you will save $1,375 in taxes the first year. But over time, future contributions can save you thousands, depending on your contribution, income tax bracket and the number of years you keep the money invested.
If your health coverage for 2018 was considered a high-deductible insurance plan, you can still contribute to a health savings account and claim it as a deduction on your 2018 taxes, regardless of your income.
HSA contribution limits for tax year 2018 are up to $3,450 for an individual and $6,900 for a family. Plus, if you're 55 or older, you can add $1,000 in "catch-up" contributions to those limits.
To save money this way, you'll need to set up an HSA and fund it before the midnight Monday the tax filing deadline.
If you drive for Uber on the weekends or rent out your house on Airbnb, you could qualify as a business owner and should be filing a Schedule C tax form.
As a general rule, freelancers can write off expenses for business-related meals, lodging, office expenses and required equipment or materials.
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According to the IRS, those expenses must be ordinary and necessary. That means that if it's something you would have purchased regardless of your freelance gig, it likely would not qualify for a deduction.
Similarly, you can take the home office tax deduction if you legitimately have a room or portion of your home that is where you exclusively conduct business. If that's the case, you may be able to write off some potentially hefty expenses, including rent, utilities, insurance and housekeeping. The percentage of the cost that is deductible is based on the square footage of the office to the total area of the house.
Alternatively, by checking a box on your federal tax returns, you can choose the standard home-office deduction of up to $1,500 for the business use of your home.
Parents can claim as much as 35% of their child-care expenses as a tax credit each year, or up to $3,000 for a single child or $6,000 for two or more children, to cover the cost of day-care programs, preschool and summer camps — including music camps, athletic camps and mini camps — for children 12 and under. If the cost of transportation to and from camp is included in the camp's fees, then that counts, too.
The credit, which varies depending on the taxpayer's earned income, only applies for if you are single and working, or if both parents are working.
For that reason, only the cost of day camp qualifies and overnight camp does not. However, if you have a disabled spouse or elderly parent who is your dependent, care-giving expenses incurred for them may also apply.
Since this is a tax credit, rather than a tax deduction, it directly reduces your taxes "dollar for dollar" — in other words, a $1,000 tax credit would cut your tax bill by $1,000.
If you can't get all of this done by midnight Monday, file an extension and pay the estimated taxes you owe before the due date to avoid penalties and interest. That would give you until Oct. 15 to submit your 2018 return.
You can use Free File from the IRS to request an extension electronically or submit a paper Form 4868. But keep in mind that while an extension grants additional time to file, tax payments are still due.
Disclosure: NBCUniversal and Comcast Ventures are investors in Acorns.
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51772f2dc76b24b9f8971e3131e4fd9b | https://www.cnbc.com/2019/04/12/australian-pm-scott-morrison-on-wikileaks-julian-assange-arrest.html | WikiLeaks' Julian Assange won't be given 'special treatment,' Australian prime minister says | WikiLeaks' Julian Assange won't be given 'special treatment,' Australian prime minister says
Julian Assange gestures to the media from a police vehicle on his arrival at Westminster Magistrates court on April 11, 2019 in London, England.Jack Taylor | Getty Images
WikiLeaks founder Julian Assange, who was arrested in London Thursday, will not be given any "special treatment," Australian Prime Minister Scott Morrison told Australian Broadcasting Corporation (ABC).
Speaking to the national broadcaster on Friday, Morrison said Assange, an Australian citizen, "will get the same treatment as everybody else."
Assange, who's accused of one of the largest leaks of classified information in the U.S., was arrested and removed from the Ecuadorian embassy in London on Thursday, where he had been living for nearly seven years after seeking asylum there.
He now faces potential extradition to the U.S., which has put in a request for him. The Justice Department announced a criminal charge against Assange, accusing him of conspiring with former American army intelligence analyst, Chelsea Manning, to hack into a classified U.S. government computer.
"When Australians travel overseas and they find themselves in difficulties with the law, well, they face the judicial systems of those countries, it doesn't matter what particular crime it is they've alleged to have committed. That's the way the system works," Morrison told ABC.
"Mr Assange will get the same support that any other Australian would ... he's not going to be given any special treatment," he said.
WikiLeaks, set up in 2006, became renowned for publishing secret information and news leaks that have caused embarrassment for governments and public officials around the world.
Wikileaks founder Julian Assange has claimed asylum in Ecuador’s London embassy since 2012 to avoid extradition to Sweden on accusations of rape.Anadolu Agency | Getty Images
Assange's attorney confirmed Thursday that the 47-year-old was arrested on a U.S. extradition request as well as for breaching U.K. bail conditions, The Associated Press reported.
His attorney, Jennifer Robinson, said that the Australian government should do more to support Assange, according to a report by Australian broadcaster SBS News.
"It is time for the Australian government to step up and do what it should have done in 2010 when we asked them to do the first time, which is to reach out to the United States, our ally and ask this prosecution be closed," she said, according to SBS.
"This is a matter of free speech. It is an Australian citizen who faces years, potentially decades or life in prison for having published material that the Walkley Awards gave him the most outstanding contribution to Australian journalism for," said Robinson.
Assange sought asylum at the Ecuadorian embassy in London in 2012 to avoid extradition to Sweden over sexual assault and rape.
He consistently denied the allegations and surrendered to British police the following month and was released on bail. However, he then evaded police and fled, leading to a second warrant that was the basis for his arrest Thursday.
— CNBC's Spriha Srivastava contributed to this report.
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62c0e8b35670a6b1b89bf0bfbfe5bfc9 | https://www.cnbc.com/2019/04/12/contactless-cards-and-apple-pay-are-just-catching-on-in-the-us.html | Contactless cards are just catching on in the US — years after the rest of the world | Contactless cards are just catching on in the US — years after the rest of the world
VIDEO3:0303:03Why contactless cards haven't caught on in the U.S.CNBC Reports
For many foreign tourists visiting the U.S., checking out at the register feels like a trip back in time.
Inserting cards, entering pin codes and signing receipts are a thing of the past in countries that have embraced contactless payments. The world's biggest economy, however, is just starting to catch on to the trend.
An estimated 3% of cards in force in the U.S. are contactless, according to a study published in 2018 by consultancy A.T. Kearney. That compares with roughly 64% in the U.K. and as high as 96% in South Korea.
Contactless technology allows customers to pay by tapping their cards directly onto a store's checkout terminal if it includes the contactless symbol, which resembles a wifi logo turned on its side. The cards are a faster alternative to chip and pin payments, similar to "tap and go" transactions through digital wallets like Apple Pay.
One reason contactless has been slow to infiltrate the U.S. is because of the sheer size of the market. The American retail market is fragmented with a larger number of retail banks and stores than a country like the U.K., for example.
"It means that it's much easier to coordinate change for the industry in the U.K.," said Adrian Buckle, head of research at industry group UK Finance, in an interview with CNBC last week.
The U.K. introduced contactless payments on its public transport system in 2014, which was a major catalyst for making the cards popular among British consumers, Buckle said. By the end of 2017 there were nearly 119 million contactless cards in circulation with 78 percent of debit cards and 62 percent of credit cards including contactless functionality, according to U.K. Finance.
"We went from very little usage to very rapid growth in a short space of time," Buckle said.
VIDEO3:3403:34What is fintech?CNBC Explains
In the U.S., many shoppers and retailers are just getting used to chip and pin payments, which have slowly rolled out across the country in recent years. As of 2015, merchants and credit card issuers became liable if fraud occurred and they had not enabled chip technology. Kelsey Sheehy, author at personal finance website NerdWallet, said this put "financial skin in the game" for banks and stores to issue and install new chip cards and readers.
Experts expect the shift to contactless in the U.S. could be smoother and faster than chip and pin, because many of the new readers that retailers installed came with built-in contactless technology. Visa estimates 78 of its top 100 merchants by transactions in the U.S. already offer the ability to tap to pay at the checkout.
Last year, J.P. Morgan's Chase said it would start issuing contactless cards to millions of its customers, and Visa expects more than 100 million cards will be in the hands of American consumers by the end of the year.
We went from very little usage to very rapid growth in a short space of timeAdrian BuckleUK Finance
Banks and card issuers have an incentive to make contactless more widespread. Research from A.T. Kearney suggests that banks could generate an estimated $2.4 billion in incremental card-related earnings over the next five years by introducing contactless cards. Consumers are most likely to use the payment method for small, frequent transactions in categories like groceries, fast-food restaurants and drug stores and pharmacies, the research said.
The introduction of contactless payments could also give a boost to tech companies like Apple that are urging customers to use their digital wallets.
"Although we believe just under half (43%) of global iPhone owners use Apple Pay, that number will continue to grow as more retailers, universities, municipalities, and public transportation systems enable contactless payments and people begin to think of their phone as their wallet," said Gene Munster and Will Thompson, analysts at Loup Ventures, in a February report.
Security will remain one key barrier to adoption in the U.S. Experts say contactless payments are as secure as chip and pin since they use the same card reader technology to transmit transactions. But surveys show some consumers in the U.S. aren't convinced tap and pay is as secure.
"I think that we're a little bit skeptical of these new technologies," Sheehy said. "Old habits do die hard."
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6afa136c2bf775970c1b9aa7325c6874 | https://www.cnbc.com/2019/04/12/euro-zone-economy-to-grow-thanks-to-domestic-demand-imf-says.html?__source=fincont&par=fincont | Domestic demand will support the euro zone despite 'pronounced' slowdown, IMF says | Domestic demand will support the euro zone despite 'pronounced' slowdown, IMF says
VIDEO1:5801:58Euro zone recession risk is very low, IMF's Thomsen saysStreet Signs Europe
The International Monetary Fund (IMF) has admitted it was "surprised" by the extent of the recent slowdown in the euro zone, but expects growth to pick up again.
The euro zone economy has struggled with changes in domestic policies in Germany, social unrest in France, and weaker external trade. However, some of that pressure has started to ease and domestic demand should drive further growth, Poul Thomsen, director of the IMF's European Department, said Friday.
"The European slowdown … has been pretty pronounced. We expected some slowdown, growth had been above potential for a while, it's quite a mature recovery, (but) we were surprised by the softness and the depth of the slowdown," Thomsen told CNBC's Joummana Bercetche at the IMF's Spring Meetings in Washington, D.C.
The European Central Bank (ECB) said in early March that it has seen a "sizable moderation in economic expansion that will extend into the current year." This led the central bank to slash its growth forecasts for this year to 1.1% from a 1.7% estimate last December. At the time, ECB President Mario Draghi said geopolitics, protectionism and vulnerabilities in emerging markets were denting economic sentiment.
Thomsen said Friday that in addition to Draghi's main concerns there are also temporary factors impacting the euro zone, such as the social unrest in France and changes to car emission rules which had impacted Germany's auto sector.
However, the IMF representative said he remained hopeful about the upcoming months, noting "temporary factors that we already see unwinding."
Thomsen said he expected domestic demand "to drive the recovery going forward," helped along by a positive labor market, current oil prices and the support of monetary policy,
Also speaking to CNBC at the IMF Spring Meetings was Klaus Regling, the managing director of the European Stability Mechanism. Regling said that while growth in the euro zone is not going to be as strong as in 2017, the region is far from being in a recession.
"We will not see in the next two, three years the growth rates of 2017. It's quite OK to say that the best is over, but it doesn't mean that there is a crisis," he said.
VIDEO1:1801:18No crisis in the euro zone, says ESM's ReglingSquawk Box Europe
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4a9ebd90518bac73adaca448ad240065 | https://www.cnbc.com/2019/04/15/catalent-to-buy-paragon-bioservices-for-1point2-billion-wsj.html | Catalent to buy Paragon Bioservices for $1.2 billion | Catalent to buy Paragon Bioservices for $1.2 billion
Catalent said on Monday it would buy privately held gene therapy-focused Paragon Bioservices in an all-cash deal for $1.2 billion, helping the drug developer expand its capabilities to make specialized and costly treatments.
Paragon, backed by private-equity firms Camden Partners and NewSpring Capital, focuses on developing and manufacturing products such as complex biopharmaceuticals for its clients.
Catalent also develops drugs for other companies and does business in Asia, Europe, and North and South America.
The deal follows other multi-billion dollar deals as drug companies have been aggressively moving into the potentially $40 billion addressable market for gene therapy, where treatments for rare, genetic diseases command some of the highest prices.
In Februray, Swiss drugmaker Roche agreed to buy U.S.-based gene therapy specialist Spark Therapeutics for $4.3 billion, while Novartis purchased U.S.-based Avexis for $8.7 billion last year.
Catalent expects the transaction to add to its adjusted earnings in the second full fiscal year after closing.
The company said it will fund the deal with proceeds from a $650 million incremental term loan and issuance of $650 million of a new series of convertible preferred stock.
After the deal closes, Paragon will be led by its Chief Executive Officer Pete Buzy.
The Wall Street Journal reported on Sunday that Catalent had agreed to buy Paragon.
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14763dc1b96228818b52feddd5ee853c | https://www.cnbc.com/2019/04/15/measles-cases-continue-to-rise-bringing-years-total-to-555.html | Measles cases approach record as outbreak spreads in New York | Measles cases approach record as outbreak spreads in New York
New York City Mayor Bill de Blasio speaks during a news conference declaring a public health emergency in parts of Brooklyn in response to a measles outbreak, requiring unvaccinated people living in the affected areas to get the vaccine or face fines, in the Orthodox Jewish community of the Williamsburg neighborhood, in Brooklyn, New York City, April 9, 2019.Shannon Stapleton | Reuters
Another 90 measles cases were reported in the U.S. last week, putting 2019 on track to be the worst year for the disease since public health officials said it was eradicated in 2010, according to the latest data from the Centers for Disease Control and Prevention.
The CDC has confirmed 555 measles cases from Jan. 1 through April 11 — approaching the 667 cases diagnosed in 2014 — just four months into this year.
Of the 90 new cases reported last week, 77 were in New York, the CDC said. Fifty cases were reported in New York City and 27 were reported in Rockland County. New York City Mayor Bill de Blasio last week declared measles a public health emergency and ordered mandatory vaccinations for people living in Brooklyn's Williamsburg neighborhood where the disease is spreading.
For more on investing in health care innovation, click here to join CNBC at our Healthy Returns Summit in New York City on May 21.
Since January, the disease has been reported in 20 states. Outbreaks, defined as three or more cases, are ongoing in five areas: New York City, New York State's Rockland County, Washington, New Jersey, California's Santa Cruz County and California's Butte County.
The CDC said travelers brought back the disease from places like Israel and Ukraine where large measles outbreaks are occurring. Worldwide, there has been a 300% increase in measles cases, to about 112,000 in the first three months of the year from about 28,000 at the same time last year, the World Health Organization said Monday, citing preliminary data.
Measles is highly contagious, infecting up to 90 percent of unvaccinated people who are exposed to it, according to the Centers for Disease Control and Prevention. The virus can live in the air for up to two hours after an infected person coughs or sneezes, according to the CDC, meaning people can be exposed to it without ever knowing.
People can be infected for days before showing signs of the virus, such as a fever, runny nose or a rash.
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2d6a10a42078f568cab1b3052c79473e | https://www.cnbc.com/2019/04/15/steps-to-prepare-your-family-for-a-crisis.html?__source=fincont&par=fincont | The financial lessons this mother of two learned after suffering an unimaginable loss | The financial lessons this mother of two learned after suffering an unimaginable loss
VIDEO4:3604:36How to prepare for a financial emergencyInvest in You: Ready. Set. Grow.
No one is ever really ready for when life throws something catastrophic at you, yet having a plan set up in advance can help with what comes next.
Chanel Reynolds wasn't prepared when her husband died in a cycling accident in 2009. In the aftermath, she suffered emotional and financial shocks. She said she wasn't fully equipped to handle all of life's details, from the big financial ones to finding account passwords. But Reynolds channeled that chaos into action.
Reynolds now hopes to help others who may find themselves in a similar situation. In 2013, she founded the online resource, "Get Your S--- Together," and now has a new book out, "What Matters Most."
Watch this video to find out more about her plan to prepare for the unexpected.
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Disclosure: NBCUniversal and Comcast Ventures are investors in Acorns.
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a8bb03f8574371532b810150108c9c2d | https://www.cnbc.com/2019/04/16/analysts-say-why-a-us-eu-trade-war-is-unlikely-to-happen.html | A trade war between the US and Europe is unlikely to happen. Here's why | A trade war between the US and Europe is unlikely to happen. Here's why
WASHINGTON, DC - JULY 25: (AFP OUT) U.S. President Donald Trump (R) meets with President of the European Commission Jean-Claude Juncker.Pool | Getty Images News | Getty Images
Washington and Brussels have been at odds over trade since President Donald Trump was elected in 2016 and ended trade negotiations between both sides of the Atlantic. Trump has said that Europe is "possibly just as bad as China" when it comes to trade and called it a "brutal" trading partner.
However, despite U.S. threats over new tariffs on Europe and the latter's willingness to retaliate, analysts are not expecting a trade war between the economic giants for several reasons.
"For us, a trade war requires trade as a share of GDP (gross domestic product) to decline," Ricardo Garcia, chief euro zone economist at UBS, told CNBC Tuesday, adding a "low probability" to this scenario.
"We think the EU would be in a much better position to retaliate than China and is prepared to do so in a highly targeted fashion ahead of the U.S. presidential elections in 2020," he said.
Trump shook the European Union last year when he decided to slap tariffs on European steel and aluminium. Brussels retaliated immediately, putting duties on denim, peanut butter and other American goods. The EU also took the case to the World Trade Organization (WTO).
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To bridge their differences and, above all, prevent further duties on EU goods, European Commission President Jean-Claude Juncker traveled to Washington a couple of months later. He agreed with President Trump to work together to bring existing tariffs towards zero on non-auto industrial goods; to buy more liquefied natural gas from the U.S. and to find ways to bring their standards closer together.
On Monday, the 28 European countries finally adopted a common position to negotiate trade with the U.S. The EU wants a deal "strictly focused on industrial goods," thus excluding agricultural products – a proposal that President Trump does not like.
"They barely take our agricultural products, and yet they can sell Mercedes Benz and they can sell anything they want in our country including their farm products, and it's not fair," Trump said Monday, threatening to impose tariffs on European carmakers if the EU does not expand its negotiating remit.
VIDEO1:4901:49Juncker: We made a deal today, will hold off on further tariffsClosing Bell
Holger Schmieding, chief economist at Berenberg, said Tuesday in a research note that there will be "noisy discussions" between Europe and the U.S.
"Nonetheless we do not expect an escalating dispute that could sow uncertainty and hurt global industry as much as the U.S.-Chinese trade war has done in the last three quarters," he added.
Trump has challenged China over trade since taking power as well, imposing increasing rounds of tariffs on the country. At the moment, however, media reports and comments from the U.S. and Chinese administrations suggest they could be close to a trade agreement.
According to Schmieding, a deal between Beijing and Washington would make an agreement with Brussels even more likely. "After all, the EU is no geostrategic rival of the U.S.," he said.
Both analysts are also confident that the U.S. and Europe will avoid a trade war because political support in the United States for a trade war with the EU is much weaker than backing for a tough stance on China.
"The final result (of trade talks between the EU and U.S.) remains unclear. In the end, we may even get neither a deal nor a trade war," Schmieding said.
VIDEO3:2203:22US shifting its attention on trade away from China to EU: EconomistStreet Signs Europe
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adee93f049107f03a297e4c95299fe1a | https://www.cnbc.com/2019/04/16/can-european-banks-be-saved-by-a-fresh-round-of-deal-making.html?__source=fincont&par=fincont | Can European banks be saved by a fresh round of deal making? | Can European banks be saved by a fresh round of deal making?
A view of the Canary Wharf financial district of London.Prisma by Dukas | Universal Images Group | Getty Images
The comparisons with U.S. peers just got a lot harder for European banks after a strong showing from J.P. Morgan to kick off earnings season, but could there be fresh revenue on the way for European investment banks, even if it is of their own making?
There's a mooted capital raising for Deutsche Bank before any possible consolidation with Commerzbank. Meanwhile, Italian lender UniCredit is waiting in the wings let alone any other rival jumping on the bandwagon.
European banks have found themselves wedged into the same category as basic resources back in 2015: uninvestable.
The European Central Bank (ECB) folded and conceded its current hand of cards meant no chance of hiking its benchmark interest rate for the foreseeable future, delivering a dose of realism.
The loser wasn't the ultra-dovish ECB President Mario Draghi, but bank investors stuck in a much dreaded value trap. Hope vanished for a long-awaited expansion in net interest margins (NIMs) for banks in 2019, which is essentially the profits that these banks make and is usually much better if rates are higher.
One banking commentator told CNBC this month that investors should forget about European banks' NIMs expanding for a few years now.
To be fair bank bosses are trying everything. UBS resorted to verbal kitchen sinking recently, telling investors it had been saddled with the worst start to the year in many years.
Others are keeping a brave face, Santander is steadfast it can deliver lofty ROTE (return on tangible equity) targets of 13% to 15% in the medium term, up from 11.7% last year — because it has done it before in the face of headwinds.
Then there is all the noise of consolidation driven by the German lenders Deutsche Bank and Commerzbank. Typically, this news flow would mean "game on" for buying on mere consolidation hopes. Just not in European banks where merger and acquisitions have been slim. Any sector action — and that's being kind using the word action — can be viewed as recovery after freefall last year.
There is a long laundry list of fears around the banks which can be best summarized as a lack of growth. But can deal-making actually save the day? Perhaps. Without growing capital, banks could be forced to sell assets or raise more capital. Activists have called for smaller investment banks at Deutsche Bank, Credit Suisse and Barclays so any extra business even from ill-fated mergers would be welcome.
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3d921694d90544d601c5324652689758 | https://www.cnbc.com/2019/04/16/cramers-lightning-round-this-stock-could-be-ready-to-break-out.html | Rockwell Automation Inc.: "I think that Rockwell Automation is a good stock to buy. I actually think it's about to break out of here after a prolonged period where it's just been marking time. And I also see … a reverse head and shoulders, just in case you might be a budding technician.
PG&E Corp.: "Man, that one's too hard for me. I never punt. I am punting on that one. That involves courts and all sorts of other stuff I don't like."
AT&T Inc.: "I like. I like Verizon more, but AT&T's got a good yield and they have the cash to pay for it."
Raytheon Co.: "I am tired of Raytheon. It didn't help my charitable trust and I'm not gonna help it. I'm not recommending it."
VIDEO2:3702:37Cramer's lightning round: This stock could be ready to break outMad Money with Jim Cramer
Questions for Cramer? Call Cramer: 1-800-743-CNBCWant to take a deep dive into Cramer's world? Hit him up! Mad Money Twitter - Jim Cramer Twitter - Facebook - InstagramQuestions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com
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3a6bbb07489888fcbe665039b5c016ce | https://www.cnbc.com/2019/04/16/for-millions-of-workers-into-wellness-tests-are-back-and-not-good.html?__source=yahoo%7Cfinance%7Crelated%7Cstory%7C&par=yahoo&doc=105872623 | For 50 million Americans on the workplace wellness treadmill, test results are back, and they are not good | For 50 million Americans on the workplace wellness treadmill, test results are back, and they are not good
Customers move a cart full of water through a BJ's Wholesale Club Inc. store in Falls Church, Virginia.Andrew Harrer | Bloomberg | Getty Images
For the tens of millions of American workers now enrolled in workplace wellness programs offered by four out of five large employers, it may be time to slow the treadmill.
A major new study suggests that as more rigorous scientific data becomes available, wellness is not living up to its early promise. The workers in the study did not experience improved health outcomes or better job performance, and neither employees nor the companies saw lower health-care costs.
The study, published Tuesday in The Journal of the American Medical Association, is one of the first large-scale studies of a corporate wellness program designed as a randomized trial. Researchers from Harvard and the University of Chicago tracked employees at a broad cross-section of BJ's Wholesale Club worksites over a period of 18 months.
"If employers are launching a wellness program with hopes of a short-term or quick savings in health expenditures or absenteeism, this study should give them pause," said Katherine Baicker, co-author of the study and dean at the University of Chicago's Harris School of Public Policy.
The wellness program did change health behaviors and awareness, but it did not result in measurable improvements in important physical health outcomes. "You can read that optimistically. The first step has to be paying more attention and having the information, capacity and ability to pay more attention to health behaviors," Baicker said. "But is that sufficient to reduce blood pressure or improve diabetes? We don't have evidence that it does."
High cholesterol levels and hypertension did not differ between the test and control groups, the study found.
Randomizing the study was key to distinguishing this data from past work on wellness, she said.
"The studies that suggested improvements almost all suffered from not being able to tell what would happen in the absence of a program," Baicker explained. "People who participate in wellness are the type of people already paying more attention to nutrition and exercise, and if you don't have a good control group, you will think it has a stronger association with positive health outcomes."
The study of close to 33,000 BJ's workers was conducted at roughly 160 worksites.
The study is the second recent randomized one to come away with sobering conclusions about wellness programs, following the January publication of a National Bureau of Economic Research study conducted at the University of Illinois Urbana-Champaign, which tracked more than 12,000 employees, though only at one worksite, the university campus.
Julian Reif, assistant professor of finance and economics at the University of Illinois and a faculty research fellow at the National Bureau of Economic Research who co-authored the Illinois study, said it looked at 40 different outcomes over a year, going beyond medical spending and absenteeism, but found only a few positive effects — employees having annual health screenings, and employees saying they felt their health and safety was valued by their employer. It also found that a large portion of the workers who do well in these programs are the ones already the most motivated to pay attention to their health.
"This is an important industry to understand, because it has really increased in size, to 50 million workers in the U.S. and $8 billion," Reif said.
The BJ's study found that employee absenteeism, performance reviews and tenure did not improve as a result of participation in the wellness program.
Baicker said the study at BJ's is continuing, with results for a 36-month period planned for future publication. "We will look again and continue to follow this cohort to see if longer-term effects are different, but 18 months is not so short," Baicker said.
Reif said his team continues to study the Illinois group as well, but he said the longer a study has to go to find proof, the less value the proof will have to employers. Many employers have what Reif referred to as a "decent" annual turnover rate in employees (10%), so it is important for these programs to pay off in the short-term for companies when considering the investment.
VIDEO25:5125:51The ROI of Wellness at CNBC's @Work SummitAt Work
Baicker's co-author on the study, Zirui Song, assistant professor of health-care policy and medicine at Harvard Medical School, said the study is an important piece of counterevidence to earlier literature that suggested a "sizable" early return on investment.
Both Song and Baicker had worked on some of that earlier research and wanted to pursue a more rigorous, randomized trial because of the limitations they knew existed in the data.
"It is just one piece of evidence," but it does caution against relying on the earlier evidence. "Don't expect a quick or immediate return is achievable," Song said.
The differences in medical spending, pharmaceutical spending and health-care cost-sharing were not significant between the test and control groups, the study found.
If we had found no changes in behavior, I would be fairly confident that even three years later we would not see any cost savings in health-care spending. ... Seeing some behavior changes is hopeful, or, more hopeful than not.Katherine Baickerdean at the University of Chicago's Harris School of Public Policy
In an editorial accompanying the study's publication in JAMA, Jean Marie Abraham of the University of Minnesota's Division of Health Policy and Management noted that four out of five large employers across the country now offer a wellness program, but "the growing evidence that demonstrates limited or no program effects" should encourage wellness companies and employers to critically assess the programs they are offering.
A BJ's spokeswoman wrote in an email, "We're committed to the health and wellness of our Team Members. We'll use the results of this study to help inform programs moving forward."
The company declined to make an official available for further comment.
Debra Wein, founder and CEO of Wellness Workdays, the third-party wellness provider for BJ's, said the fact that there were changes in employee health behavior over 18 months was a positive, especially since the employee base of BJ's is not a homogenous, high-income, white collar demographic, but a diverse workforce where education, income, access to technology and native languages spoken vary across the population.
"What do these programs do for more representative workplaces and workers? The answer seems to be, at least for the first year or so, that they can change behavior but not in a way that translate into health-care savings or reduced absenteeism," Baicker said.
Though she allowed for a more positive reading of her research. "These behavior changes are a necessary first step. ... If we had found no changes in behavior I would be fairly confident that even three years later we would not see any cost savings in health-care spending. ... Seeing some behavior changes is hopeful, or, more hopeful than not."
There are individual examples of companies where wellness has directly influenced the health-care spending trend positively, but Wein stressed that the conversation about wellness has been shifting away from a focus on return on investment even before these recent studies. "The current conversation around wellness has moved dramatically away from financial return on investment and more towards value on investment measures."
She noted that at BJ's, even lacking quantitative measures to make the wellness case, dieticians who worked with the employees witnessed "dramatic changes in culture and perspective," such as healthier food choices in break rooms and more employees drinking water over soft drinks. There were changes that involved both employees and management of the company playing a role in facilitating the healthier options.
"We are looking at quantitative benefits and measurements through the research but there are many stories across all of the BJ's clubs where we found individuals who were able to make positive changes ... physical activity, healthier eating, reduction in prescription medicine use and visits to doctors. Throughout the course of the program many registered dieticians came across people making great strides personally. That can't be captured in studies but to us as practitioners, that is encouraging," Wein said. "I'm not so surprised by the fact that there were no financial changes. Whether recruitment or retention there are lots of other potential benefits.
Public health experts, including Ron Goetzel, vice president of IBM Watson Health and senior scientist at the Johns Hopkins Bloomberg School of Public Health, have recently noted that employers need to play a broader part in public health policy and wellness return on investment is too narrow to deal with the magnitude of U.S. health care treatment and spending issues.
Abraham noted that while there has been a recent move to take a broader view of wellness, the fact is that employer investment in wellness programs is "driven largely" by the idea that they generate health and economic benefits.
"On average, healthier employees have lower medical-care spending, which affects employer-sponsored insurance premiums," she wrote, and concluded the JAMA editorial by saying continued research is important: "Given their broad diffusion, employer wellness programs that are able to demonstrate positive outcomes can provide a valuable complement to health system — and community-based approaches for reducing chronic disease prevalence and its economic effects on society."
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00818436579cc4fb1220a7676f918f15 | https://www.cnbc.com/2019/04/16/us-house-panels-issue-subpoenas-to-deutsche-bank-others-in-trump-probe.html | US House panels issue subpoenas to Deutsche Bank, others in Trump probe | US House panels issue subpoenas to Deutsche Bank, others in Trump probe
A general meeting of Deutsche BankArne Dedert | picture alliance | Getty Images
Two U.S. House of Representatives committees have issued subpoenas to multiple financial institutions, including Deutsche Bank, for information on President Donald Trump's finances, the panels' Democratic leaders said on Monday.
"The potential use of the U.S. financial system for illicit purposes is a very serious concern. The Financial Services Committee is exploring these matters, including as they may involve the president and his associates, as thoroughly as possible," the committee's chair, Maxine Waters, said in a statement.
House Intelligence Committee Chairman Adam Schiff said in a statement the subpoenas issued included a "friendly subpoena to Deutsche Bank."
A 2018 financial disclosure form showed liabilities for Trump of at least $130 million to Deutsche Bank Trust Company Americas, a unit of the German bank. They are for properties including the Trump International Hotel in a former post office in Washington.
Deutsche Bank said in January, shortly after Democrats took control of the House following the November elections, that it had received an inquiry from the two committees on its ties to the Republican president.
Schiff said Deutsche bank had been cooperative. "We look forward to their continued cooperation and compliance," he said.
Kerrie McHugh, a Deutsche Bank spokeswoman, said the bank was engaged in a "productive dialogue" with the two committees.
"We remain committed to providing appropriate information to all authorized investigations in a manner consistent with our legal obligations," she said in an emailed statement.
The New York Times, which first reported the committees' actions on Monday, said Citigroup, JPMorgan Chase & Co and Bank of America had also received subpoenas.
Trump lawyers did not immediately respond to requests for comment.
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087cc08b6cfb6640954eb386b5359044 | https://www.cnbc.com/2019/04/17/how-artificial-intelligence-is-making-better-basketball-shooters-with-just-your-iphone.html?__source=twitter%7Cmain | How artificial intelligence is making better basketball shooters, with just your iPhone | How artificial intelligence is making better basketball shooters, with just your iPhone
VIDEO3:4303:43How this app uses AI to make better basketball shootersSquawk Alley
HomeCourt is game-changing technology that's turning amateur basketball players into sharp shooters. It's an app that launched just last year using high-tech computer vision and machine learning to improve a player's shooting skills.
"Today if you run, you're using your Apple Watch or Nike Run app, but for basketball that didn't exist," said Alex Wu, part of Nex Team and one of HomeCourt's creators. "The first problem we wanted to solve is how do we help people easily track their shots without having to do a lot of that manual work."
HomeCourt works because everything can be done on an iPhone. There are no sensors or high-tech equipment needed. The app figures out who the person is, where the basket is, where the three-point line is, if the ball is a make or a miss, and many shooting stats. HomeCourt can track made and missed shots along with advanced stats like launch angle, reaction time, vertical jump and leg angle. These are performance stats that the naked eye can't see but are important to improving one's shooting skills.
The app itself is free to download and offers tracking of up to 1,000 shots per month for free. After that, it offers a subscription model at various price points.
More than a dozen college and professional programs are using HomeCourt, including Duke, the Boston Celtics and Philadelphia 76ers. However, Wu says the target audience is amateurs who don't have the resources and support staff that college and pro teams have. "We were thinking, how do we bring that same type of technology that's available at a professional level to everybody and make it more accessible and affordable."
While HomeCourt, which launched last year, won't reveal how many users it has, the company says it tracks an average of about 2 million shots per month. To date that's 14 million total shots.
I went to check out HomeCourt, and how it could help my game. I tried it out with Joe Harris of the Brooklyn Nets. Harris won this year's three-point shootout, and led the NBA in three-point field goal percentage. He's a big supporter of HomeCourt and plans to use the app at the youth basketball camp he runs each summer.
"We're in the age of analytics and technology. Anytime you can put that to use just to help you improve, get better, I'm all for it," said Harris.
Going against the reigning three-point champion was no joke.
The app clearly pointed out that my launch angle was bigger than his, or to say it differently, I had too much arc in my shot relative to Harris. My reaction time was much slower as well, as Harris could get shots up in half my time. It never occurred to me that my shots were so much slower until I saw the numerical stats in the app.
Another thing the app could point out was the path of my shots. The arcs are drawn one on top of the other. In my case, the arcs are all over the place, suggesting a lack of consistency. No surprise that Harris, the best shooter in the NBA, had a consistent arc that was exactly the same for each shot.
By the way, Harris made 80 percent of his shots while I made 20 percent. The app had no problem counting those, as it can figure out if the ball goes in the basket.
"Instead of counting your own made shots and or having a coach count your makes, this is real specific, especially the advanced metrics," said Harris. He specifically mentioned the release angle as a metric that he considered important. "This is something I really wish I would have had growing up."
HomeCourt has financial backing from retired NBA legend Steve Nash, current NBA player Jeremy Lin, former NBA executive Sam Hinkie and current team owner Mark Cuban. Nash and David Lee, co-founder and CEO of Nex Team, explained the technology behind HomeCourt at Apple's keynote event in September.
The applications for this technology are widespread and extend well beyond sports. Computer vision is broad technology that can be used in many fields. "I think one of the most prevalent use cases is self-driving car technology, being able to use computer vision to sense different things as well" said Wu.
— CNBC's Jessica Golden contributed reporting.
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fd00178fc65decbefee92d3ee9cb63cd | https://www.cnbc.com/2019/04/17/pinterest-prices-ipo-at-19-valuing-company-at-10-billion.html | Pinterest prices IPO at $19, valuing social media company at $10 billion | Pinterest prices IPO at $19, valuing social media company at $10 billion
Pinterest CEO Ben Silbermann speaks in conversation with Matthew Lynley of TechCrunch during the TechCrunch Disrupt SF 2017 on September 18, 2017 in San Francisco, California.Justin Sullivan | Getty Images News | Getty Images
Pinterest raised $1.43 billion in its IPO after pricing the offering at $19 a share on Wednesday, valuing the company at $10 billion.
Pinterest, which is expected to start trading on Thursday on the New York Stock Exchange, had originally given a pricing range of $15 to $17. But investors appear to be showing an appetite for the social media company despite the challenges Lyft has faced since becoming the first consumer tech IPO of the year last month.
CNBC reported earlier on Wednesday that the company would price above the expected range. Pinterest's revenue jumped 60% last year to $756 million, and the company moved significantly closer to profitability with a net loss of $63 million. Still, Pinterest's IPO is below the $12 billion valuation it attained in a 2017 financing round.
Pinterest is among the first big tech IPOs of the year and is scheduled to start trading around the same time as videoconferencing company Zoom. Ride-hailing company Lyft was the first big offering to hit the market in March, but the stock has dropped 19 percent from its IPO price.
Founded in 2010 by Ben Silbermann, a former Google employee, and Evan Sharp, who was previously a designer at Facebook, Pinterest has grown to 265 million monthly users. The company burst into the mainstream in 2012 with rapid growth, but expansion has since cooled due in part to a work culture that many employees describe as slow when it comes to making decisions.
Silbermann's stake is worth close to $1 billion at the offer price. Bessemer Ventures owns shares valued at $1.13 billion, while FirstMark's holdings are worth $844 million and Andreessen Horowitz's stake is worth $827 million.
Goldman Sachs and J.P. Morgan Chase are leading the offering.
Watch: Pinterest's path forward
VIDEO4:0804:08Pinterest's path forwardPower Lunch
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fda8064b22f884e34bc32c355084f805 | https://www.cnbc.com/2019/04/17/retirees-are-flocking-to-these-3-states-and-fleeing-these-3-states.html?__source=iosappshare%7Ccom.apple.UIKit.activity.Mail | Retirees are flocking to these 3 states — and fleeing these 3 states in droves | Retirees are flocking to these 3 states — and fleeing these 3 states in droves
Albuquerque International Balloon Festival in Albuquerque, New Mexico.sjlayne | E+ | Getty Images
Step aside, Florida. New Mexico is the new top retirement destination.
Those were the findings from a survey by United Van Lines. The relocation company polled 26,998 of its customers who moved last year, through Nov. 30, 2018.
Among those who moved to New Mexico, 42% said they did so because of retirement, making the Land of Enchantment a top destination.
Florida came in second, with 38% of people moving there citing "retirement" as a reason. Arizona followed in third, according to United Van Lines.
Meanwhile, those golden years were also a primary reason why people fled New Jersey, with a third of households citing that as a driver behind their decision to leave the Garden State.
Maine and Connecticut round out the top three states people are moving away from citing retirement, the moving service found.
kali9 | E+ | Getty Images
There are a number of reasons why people approaching retirement might want to relocate. Chief among them is the need to stretch their savings and their Social Security checks.
"The cost of living is a key factor, said Dan Herron, a CPA and partner at Better Business Financial Services in San Luis Obispo, California.
"We look at their budget and see how much they spend and how long it will last," he said.
That means examining the cost of housing, medical expenditures and more.
Clients nearing the end of their working careers have asked Herron about leaving the Golden State for Arizona, Colorado or Oregon.
VIDEO2:3102:31Americans are failing at money - here's what you need to know about how we saveInvest in You: Ready. Set. Grow.
Reasons for leaving California include favorable income tax rates in other areas, Herron said.
California has a top individual income tax rate of 13.3%. The top marginal rates are lower in Oregon: 9.9%. They're nearly half that amount in Colorado (4.63%) and Arizona (4.54%), according to the Tax Foundation.
Another consideration is how does your destination state treat retirement income? In all, 13 states tax Social Security: Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, North Dakota, Rhode Island, Utah and Vermont.
Don't forget to think about how other levies might affect your expenses.
Indeed, New Jersey — which is experiencing an outbound flight of residents — has an effective property tax rate of 2.13 percent, according to the Tax Foundation. It's the highest in the country.
The Garden State also has a top individual income tax rate of 10.75 percent, applicable to income exceeding $5 million.
"A lot of places that don't tax income have high property taxes, so we need to make sure it makes sense to move there," Herron said.
Anne Rippy | The Image Bank | Getty Images
Though affordability is an important factor when deciding where to reside in retirement, there are other considerations. Here's some things to weigh before you go.
Should you keep family and friends nearby? "Maybe you can afford to move, but do you really want to do it?" asked Herron. "There's an emotional impact of moving away from your family and friends, and starting over."
Ask yourself whether you'll be able to reach a relative in the event of an emergency.
Take an extended visit before you choose. Whether you're leaving St. Louis for Honolulu or the U.S. for Costa Rica, you should get to know what your destination is like — preferably outside of high tourist season — before you settle down.
Call your financial advisor. Aside from making sure your move is financially sensible, you should also go over your estate plans.
"If they're moving to the wilderness, we need to know do they have their trusts and estates in order, as well as their beneficiaries," Herron said. "Do they have an advance directive in place?"
More from Personal Finance:Unhappy with your tax return? Prepare for 2019Even the wealthy might not be prepared to retireTop 10 Southern cities for retirement
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85368a82703b6f84264f2821cced9de0 | https://www.cnbc.com/2019/04/17/trump-vetoes-congressional-resolution-to-end-us-involvement-in-yemen.html | Trump vetoes congressional resolution to end US involvement in Yemen war | Trump vetoes congressional resolution to end US involvement in Yemen war
President Donald Trump returns to the White House following a trip to Burnsville, Minnesota on April 15, 2019 in Washington, DC.Zach Gibson | Getty Images News | Getty Images
President Donald Trump has vetoed a congressional resolution that sought to end U.S. involvement in the Saudi-led war in Yemen, the White House said on Tuesday.
"This resolution is an unnecessary, dangerous attempt to weaken my constitutional authorities, endangering the lives of American citizens and brave service members, both today and in the future," Trump said in the veto message.
The resolution passed the House of Representatives in April and the Senate in March, marking the first time both chambers of Congress had supported a War Powers resolution, which limits the president's ability to send troops into action.
Neither the 247-175 tally in the Democratic-majority House nor the 54-46 vote in the Republican-led Senate would be enough to override the veto, which would require two-thirds majorities in both chambers.
Backers of the measure said the Saudi-led bombing campaign in Yemen had made the humanitarian crisis worse, harshly criticizing Riyadh for killing civilians.
They also argued that U.S. involvement in Yemen violated the constitutional requirement that Congress, not the president, should determine when the country goes to war.
The four-year-long civil war in Yemen, which pits the Saudi-led coalition against Houthi rebels backed by Iran, has killed tens of thousands of people and spawned what the United Nations calls the world's most dire humanitarian crisis, with the country on the brink of famine.
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42765f27bd1526f5be3bd07ae781304f | https://www.cnbc.com/2019/04/17/ukraine-election-comedian-zelensky-is-favorite-to-be-ukraine-president.html | A comedian is hot favorite to be Ukraine's next president - so what are his policies? | A comedian is hot favorite to be Ukraine's next president - so what are his policies?
Ukrainian presidential candidate, Volodymyr Zelensky seen surrounded by the media during the blood test for the content in the body of alcohol and drugs.SOPA Images | LightRocket | Getty Images
A comedian-turned-politician is a strong favorite to win Ukraine's presidential election run-off vote this coming Sunday, despite little being known about his political policies and plans.
That doesn't seem to have deterred voters so far with Volodymyr Zelensky winning the most votes (30.2%) in the first round of the election compared to his rival, veteran politician and incumbent President Petro Poroshenko, who got 16% of the vote.
One poll of just over 2,000 Ukrainians by the Kiev-based International Institute of Sociology (KIIS), published Tuesday, said that 48.4% support Zelensky and 17% back Poroshenko while 17.9% remain undecided. Others intended to spoil their ballot paper, didn't intend to vote or refused to name their favorite.
Zelenksy might be a political novice but he's no stranger to the public, having played the role of an ordinary guy that becomes Ukrainian president in a hit TV show called "Servant of the People."
He polls highly in terms of positive public perception, the KIIS survey showed, with 53.7% of respondents holding a positive attitude towards him, compared to 18.1% for Poroshenko.
After turning to politics in the real world, Zelensky (like his TV character) posited himself as an anti-graft candidate fighting for change in a country dogged by corruption and economic instability.
But critics say that we know little else about his plans for Ukraine if, as expected, he wins the run-off vote on April 21.
With his background in comedy and acting, Zelensky knows how to woo an audience and the 41-year old has certainly used social media to good effect in his election campaigning. This has enabled him to attract young voters who are disaffected with the political establishment in Ukraine.
Older voters too are fed up at a lack of progress on tackling corruption and oligarchies too, analysts note, and they have also viewed Zelensky as a breath of fresh air.
Introducing himself on his website, Zelensky (or 'Ze' as he is known) says his goal is to "make people happier in Ukraine. I want to see joyful faces around." A pre-election program on his website, while lacking details, signals the moves he could make in power.
Volodymyr Zelensky candidate for the post of President of Ukraine during the concert program of the studio 'Kvartal 95'.Pacific Press | LightRocket | Getty Images
Suggesting a digital push, Zelensky's program states that he wants to see a Ukraine "where you can open an business in an hour, get a passport in 15 minutes, and vote in elections - in one second, on the Internet."
Without offering much detail, the comedian also alludes to wanting to boost employment, provide housing for young families, tackle corruption and nepotism, and improve wages and pensions.
His first task as president would be to empower the people through referendums "and other forms of direct democracy," he notes, and says that the state should exist for Man, "not Man for the state."
He says he wants to improve justice and equality in Ukraine and has gone so far as to say that he wants to remove parliamentary immunity from prosecution and would reform the judicial system.
Despite critics saying that Zelensky's plans are not that well detailed and that implementation could prove tricky, it has been noted that he has surrounded himself with experienced advisers. Former finance and economy ministers have joined his team, for example, and are likely to take ministerial posts once again if he wins.
On Tuesday, former Finance Minister Oleksandr Danyliuk (who could be in the running for foreign minister) said that if Zelensky wins the election, his team will not include officials or ministers from the current administration.
Viktor Andrusiv, executive director of the Ukrainian Institute for the Future based in Kiev, said Zelensky's program was being criticized somewhat unfairly.
"He has collected top experts, economists and reformers around him and I would say his program looks quite good," Andrusiv told CNBC Wednesday.
"There are a lot of liberal approaches to the economy and business as well as the pledge to abolish immunity for deputies (members of parliament) — a lot of oligarchs use membership of parliament as a way to avoid prosecution so this would change if he cancels this."
Ukraine is a country sandwiched between Russia and Europe and harbors aspirations to join the EU and NATO — ambitions that have affronted its powerful neighbour Russia.
Relations hit a new low in 2014 when Russia annexed Crimea from Ukraine and supported a pro-Russian uprising in east Ukraine, with the conflict in Donbass (where there are two self-styled republics of Donetsk and Lugansk, held by pro-Russian separatists) unresolved.
The United Nations estimates that 13,000 people have been killed, and 30,000 injured, in Donbass since 2014.
People hold portraits as they take part in a rally in memory of the victims of the Donbass military conflict.Valentin Sprinchak | TASS | Getty Images
Zelensky has said he favors dialogue with Russia and that "we must win peace for Ukraine" but said he would seek international support for Ukraine to see the return of "temporarily occupied territories and forcing the aggressor to reimburse the damage. The presentation of national interests and territories cannot be the subject of any negotiations."
Ukraine's conflict with Russia couldn't have come at a worse time and in 2014, when the country was in recession and its financial sector under significant stress the country was forced to ask the International Monetary Fund for financial aid.
The Fund granted a $17.5 billion aid package in 2015 but it had strict conditions attached, including implementing a reform program designed to improve financial stability, reduce a fiscal deficit, eliminate losses in the energy sector, tackle corruption and improve governance.
The aid program did not go altogether smoothly with the IMF delaying the release of aid in early 2017 due to the slow pace of reforms — increasing household gas prices being one of the main bones of contention.
Ukraine received a further $3.9 billion IMF credit line in December 2018 to get it through a potentially turbulent political year with the presidential election and parliamentary elections due in October this year.
Otilia Dhand, senior vice president at Teneo Intelligence, told CNBC Wednesday that what Ukrainians care about when it comes to the economy differs to what investors and institutions like the IMF want to see.
Kiev, Ukraine.Getty Images
"There is only a small part (of Zelensky's program) that deals with the economy but that's not what the average man on the street cares about…It's formulated as an economy for citizens but that doesn't answer questions that institutions and investors would be asking about Ukraine," she noted.
"That's the problem. The program appeals to citizens, but the ones that are keeping Ukraine financially stable are institutions and markets," Dhand said, noting that questions are now being asked over what Zelensky really intends to do if, and when, he's in office.
"Is he really able to implement any of his ideas without political clout? The worst issue for international markets about a candidate without any political experience is how is he going to form a majority in parliament and steer the economy through tough adjustments – like an increase in gas prices?"
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6ff7cc759e5a228ee72955f2960f076d | https://www.cnbc.com/2019/04/17/why-you-shouldnt-hate-on-the-millennial-that-wears-headphones-at-work.html?__source=yahoo%7Cfinance%7Crelated%7Cstory%7C&par=yahoo&doc=105872623 | Why you shouldn't hate on the millennial that wears headphones at work | Why you shouldn't hate on the millennial that wears headphones at work
Luis Alvarez | Getty Images
In the era of open-office floor plans designed to increase collaboration at the expense of privacy, more workers are finding a new space for isolation — headphones.
Such is the case with Christopher Reichert, android software developer at OfferUp, a company that has fully adapted the open-concept workspace. "I listen to music on my headphones because it helps me drown out noise and distractions in the office," said Reichert.
"While I like working in an open-office environment because it make spontaneous collaboration easier, more distractions can happen both because of noise and because it's easier for people to start conversations and pull you away from what you're trying to focus on," he said.
Experts say that contrary to concerns about fostering a team environment, listening to music at work may make workers more productive.
A study conducted by the staffing firm Accountemps, a subsidiary of global human resources firm Robert Half, found that an increasing number of professionals like listening to music at work and are actually more productive when they do so. The company polled more than 1,000 workers in an office environment and found that 85% like listening to music. In particular, the study found that 71% of professionals say they feel more productive when listening to music.
Spotify found that 61% of people report listening to music at work to boost their productivity and happiness. Cloud Cover Music found that 78% of people believe listening to music at work makes them more productive.
All this increase in productivity, however, may have little to do with the music itself.
"There's a whole body of psychological research that looks at just feeling mildly content, called State Positive Affect, and there's a link between being in that content state and being better at creative problem-solving," said Teresa Lesiuk, director of music therapy at the University of Miami. "Because music experiences generally tend to be positive and bring about positive moods, a person can end up more productive," she said.
Lesiuk collected data from employees' actual work environments over a five-week period. Out of those five weeks, participants were given three "music listening" weeks. What Lesiuk found was that State Positive Affect, or feeling content, increased from pre- to post-listening in each of the three music listening weeks, and quality-of-work was lowest during the "no music" listening period.
Additionally, the participants in her study could listen to music of their own choosing — either from their own collections or from the music library Lesiuk provided.
VIDEO3:1703:17Productivity@Work: How successful companies attract and retain top talentAt Work
"It's a general foundational principle to music therapy that a person's preferred music is the music that has the most meaning and influence on them. As a result, people can be productive to all sorts of genres including classical music, hard rock, and even Russian pop," Lesiuk said.
Spotify currently has more than 35 playlists under their "Focus" genre, including one called "Productive Morning" with over 400,000 followers and another called "Your Office Stereo" with over 150,000 followers. Spotify's "Productive Morning" uses calming, post-rock instrumentals, while "Your Office Stereo" consists of various indie and alternative selections, such as Papillon by Voyou and Darjeeling by Barrie.
"Our company doesn't have any hard and fast rules on playing music in the office, but because one of our core values is to be neighborly, we don't encourage people to play music on speakers unless you can make sure it doesn't carry into your co-workers' workspaces," said Natalie Angelillo, vice president of community at OfferUp. "A lot of employees wear headphones to help them focus, which we absolutely encourage because music can be a great motivator at work."
Wearing headphones at work has a negative side, especially when it comes to how the action is perceived. The Robert Half survey revealed that wearing earbuds or headphones caused resentment among co-workers and was seen as "a major office-etiquette problem."
Headphone use in the office predates the boom in streaming media like Spotify and Apple Music, and executives have long expressed concerns.
One of the biggest problems of headphones in the office is the loss of spontaneous creativity, exchange of ideas and common purpose that comes with having natural free-flowing conversations, Anne Kreamer, former executive vice president and worldwide creative director for Nickelodeon and Nick at Nite, wrote in the Harvard Business Review piece back in 2012.
But she noted that "headphones can operate as a visual 'do not disturb, I'm working' signal for employees who, in open-plan offices, need solitude in order to execute their work. ... Being able to achieve that sense of solitude when necessary is clearly important."
But she added, "Organizations need to develop protocols that avoid making isolation the universal default office norm, and that encourage face-to-face interaction."
Only 9 percent of workers surveyed by Accountemps-Robert Half said their office did not allow music. Forty-four percent said their employer allowed music with no restrictions (e.g., mandating use of headphones).
As the open office concept has been widely embraced and more workers keep the wireless earbuds on as part of their everyday wardrobe, finding the right balance is key.
"I have worked at several places with private offices and a few with open offices. More personal space in an office and being able to close the door can help, but these nice-to-have attributes of a personal office are completely overshadowed by the benefits to the team of open space," said Jeff MacDuff, director of engineering at OfferUp.
"The team interaction, the frequency of spontaneous discussions both social and technical, and the team building aspect deliver more to the individual and the business than personal offices do. Building world-class software is a team sport, and the best teams are built via open space, not closed doors," he said.
Music is part of that equation.
"We encourage everyone to bring their authentic selves to work, and because music can play a big part in our lives, we support bringing it into the office, as long as it doesn't disrupt the workflows around them," offerUp's Angelillo said.
—Caroline Gao, special to CNBC.com
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8ad293ba63f81ccace6ca8f2c51a07a5 | https://www.cnbc.com/2019/04/17/zoom-prices-ipo-at-36-per-share-source.html | Videoconferencing company Zoom prices IPO at $36 per share, indicates 63% spike on first trade | Videoconferencing company Zoom prices IPO at $36 per share, indicates 63% spike on first trade
Confetti falls as Zoom founder Eric Yuan rings the Nasdaq opening bell on April 18, 2019 in New York City.Kena Betancur | Getty Images
Videoconferencing company Zoom priced its IPO at $36 per share Wednesday, above of its already-increased range. That values the business at $9.2 billion. Ahead of Zoom's first trade Thursday, the stock was indicating it would trade around $59 per share, a 63% spike.
Zoom, which is slated to start trading on Thursday on the Nasdaq, had originally given a pricing range of $28 to $32, but investor demand was so high for the profitable, fast-growing company, that the offering ended up well above that mark. CNBC had reported earlier on Wednesday that the company would price at the top end of the increased range — $33 to $35 — and possibly above it.
Zoom will be raising $356.8 million after offering 9.91 million shares in the IPO. Existing shareholders will be offering another 11 million shares.
Founded in 2011 by former Webex head engineer Eric Yuan, Zoom has surged in popularity in a crowded market by providing software that works easily across devices and by groups ranging from small teams to large enterprises. Sales jumped 118 percent last year to $330.5 million, and the company reported net income of $7.58 million.
Investors are paying up for growth. At $36 a share, the company has an enterprise value to sales ratio of 27.5, which among cloud software companies, trails only Zscaler's ratio of 30.7, according to FactSet.
Zoom will be one of the first big tech IPOs of the year and is scheduled to start trading around the same time as social media company Pinterest. Ride-hailing company Lyft was the first 2019 tech IPO to hit the market last month, but the stock has failed to hold up as larger rival Uber prepares to sell shares in the coming weeks. While Lyft is 17 percent below its IPO price, PagerDuty, the only other notable software share sale of the year, is up 67 percent from its offer price last week.
In addition to Uber, investors are also gearing up for the debut of Slack, which is expected to take the unconventional approach of a direct listing instead of an IPO.
VIDEO2:1602:16Study finds IPO first day returns don't predict long run returnsSquawk Box
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0b105e48c68a140afbd3fd7080363700 | https://www.cnbc.com/2019/04/18/cramer-overvalued-stocks-pinterest-zoom-could-lead-to-a-peak.html | VIDEO3:1903:19Overvalued stocks like Pinterest, Zoom could lead to market peak: CramerMad Money with Jim Cramer
The debuts of Pinterest and Zoom Video Communications on public markets also came with froth, which could lead to a market peak, CNBC's Jim Cramer said Thursday.
Froth is a trading environment that usually precedes a market bubble.
"The top of the market always comes when there is tremendous euphoria, and today we saw that euphoria in the two deals that went off hot," the "Mad Money" host said.
After a $19 IPO, Pinterest closed its first day of trading at $24.40 — more than a 28% gain. Zoom originally priced its shares at $36. It settled at $62 at the end of the day — a more than 72% run.
Pinterest is selling at 21-times 2018 sales, not earnings, on the New York Stock Exchange. On the Nasdaq Composite, Zoom is trading even higher — 46-times fiscal 2019 sales, not earnings, Cramer said.
The host said he likes the prospects that each of these companies have, but the stock prices could be running in worrisome territory.
"Now that investors or traders or flippers are beginning to pay outrageous multiples to sales, not earnings, but sales, beware," he said. "That's a train that is headed to overvaluation hell and you will have to jump off it before it crashes."
Cramer rehashed his argument that an oversupply of high-priced stocks could put a dagger in the longest bull run in stock market history. Lyft's IPO bust, he said, was powered in part by the shareholders that were allowed to sell the stock instead of adhering to a lock-up period that could have ranged from 90-180 days.
"The lack of an effective lock-up crushed buyers, and I had hoped would quell enthusiasm for further deals," Cramer said. "That, however after today, is clearly not the case. So we are going to bring a whole new class of unseasoned investor[s] into this market who are gaming the IPOs and that kind of investor usually arrives after the easy money is made."
Cramer also said he's concerned that there isn't enough money available in growth-focused mutual funds to buy into the IPOs that are in the pipeline. The majority of new money being invested in the market has gone toward index funds, he pointed out.
"That means they can't be buyers as these new stocks of courses aren't in indices," he said. "What will happen is growth funds will have to sell some of their holdings in order to buy these new holdings and, by the way, that happened all morning today."
Furthermore, there has been a limited amount of supply on Wall Street, which means "there isn't a lot of excess stock flying around," Cramer said. Buyback programs have also shrank the volume of stocks available to trade, which could be counterproductive because stocks have rallied so much this year, he added.
That could create dangerous investing scenarios for the anticipated deals in Slack, Uber, and Palantir, he said.
"If you heard about the first-day gains in stocks like Pinterest and Zoom and you haven't been in the racket, you are going to go to the gaming tables and hope to get some stock on the next deals," Cramer said. "I am talking about the worst kinds of holders. Holders that are your enemy if you are in a stock that they dominate."
There's no need to panic yet — Thursday was just day one, he said.
"As these deals flood the market though, you will see across the board pressure as existing stocks are liquidated to buy the new ones," Cramer said. "Selling cheap to fund expensive, like Pinterest, like Zoom, is a loser's game, but may will end up playing it."
VIDEO9:3609:36Cramer: Overvalued stocks like Pinterest, Zoom could lead to a market peakMad Money with Jim Cramer
Questions for Cramer? Call Cramer: 1-800-743-CNBCWant to take a deep dive into Cramer's world? Hit him up! Mad Money Twitter - Jim Cramer Twitter - Facebook - InstagramQuestions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com
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552c3d8a98c55c2f9791ea7408620a57 | https://www.cnbc.com/2019/04/18/kim-kardashian-gave-a-tour-of-her-home-on-instagram.html | Kim Kardashian gave a tour of her home and there's a 130-inch TV that rises out of the floor — take a look | Kim Kardashian gave a tour of her home and there's a 130-inch TV that rises out of the floor — take a look
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11000e309de05e4fe7d51912f3b376ef | https://www.cnbc.com/2019/04/18/mcconnell-to-introduce-bill-for-a-minimum-age-to-buy-tobacco-of-21.html | Sen. Majority Leader McConnell to introduce bill to raise the minimum age to buy tobacco to 21 | Sen. Majority Leader McConnell to introduce bill to raise the minimum age to buy tobacco to 21
Senate Majority Leader Mitch McConnell (R-KY).Joshua Roberts | Reuters
Senate Majority Leader Mitch McConnell will introduce legislation to raise the federal minimum age to buy tobacco to 21 from 18, he announced Thursday.
McConnell will introduce the legislation, called the McConnell bill, in May, he said. It will cover all tobacco products, including e-cigarettes. McConnell's backing marks the strongest support yet in Congress for what's been dubbed "T21."
"For some time, I've been hearing from the parents who are seeing an unprecedented spike in vaping among their teenage children," McConnell said in a statement. "In addition, we all know people who started smoking at a young age and who struggled to quit as adults. Unfortunately it's reaching epidemic levels around the country."
For more on investing in health-care innovation, click here to join CNBC at our Healthy Returns Summit in New York City on May 21.
Ninety percent of cigarette smokers try their first cigarette before they turn 18, according to the Centers for Disease Control and Prevention. High school seniors who can legally buy tobacco products may share them with their friends, an issue that's come into focus amid a huge surge in teen vaping.
VIDEO8:5008:50Raising tobacco age cannabis consolidation, Adidas' recycling and Samsung's failThe Exchange
In 2018, the number of high school students using tobacco products increased by about 38%, the CDC found in its annual National Youth Tobacco Survey. The agency blamed the increase on e-cigarettes. Use of the products by high school students surged nearly 78%.
In response, local and state governments have pushed up the age to buy tobacco products to 21. A dozen states have already raised the minimum buying age and New York and Maryland are expected to join them soon. Even more states are considering legislation. At least 450 cities and counties have enacted T21 laws, according to the Campaign for Tobacco-Free Kids.
Yet even with McConnell behind the bill, some conservative lawmakers are sure to oppose the measure. Lawmakers in McConnell's home state of Kentucky rejected a state bill earlier this year to raise the minimum buying age. Sen. Richard Burr, R-N.C., recently blasted the Food and Drug Administration for pursuing a ban on menthol cigarettes.
Tobacco giants Altria, British American Tobacco and e-cigarette maker Juul have all thrown their weight behind raising the minimum buying age. Altria CEO Howard Willard and Juul CEO Kevin Burns have both urged legislation in recent op-eds. Altria started running "T21" ads earlier this month in The Washington Post, The Wall Street Journal and other newspapers.
"Altria strongly supports raising the legal age of purchase for all tobacco products, including e-vapor, to 21. This is the most effective action to reverse rising underage e-vapor usage rates. Now is the time to move to 21 and we welcome Senator McConnell's leadership on this important issue," Willard said Thursday in a statement.
"We commend Senator McConnell for announcing this legislation as we strongly support raising the purchasing age for all tobacco products, including vapor products, to 21 and have been actively supporting legislation to do this at the federal level and in states across the country," Burns said in a statement Thursday.
Burns said this type of legislation can help restrict youth access by preventing products being shared between legal-age and underage peers.
"We support Senator McConnell's efforts to raise the national minimum purchase age to 21 as an effective means of keeping tobacco products out of middle and high schools, where many youth obtain the products, especially vapor, from friends between the ages of 18 and 21," BAT said Thursday.
A 2015 National Academy of Medicine study concluded that increasing the minimum buying age would reduce the number of teens who get hooked on nicotine and therefore save lives.
A spokesman for the Campaign for Tobacco-Free Kids said while the group "strongly supports" raising the minimum tobacco buying age, it wants to "make sure it is a strong bill that is free of special interest provisions that benefit the tobacco industry."
He warned that some proposals have included provisions that prohibit things like flavor bans, which e-cigarette makers strongly oppose.
Shares of Altria slid about 2% and British American Tobacco dipped about 1%. Juul is privately held.
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cbaac05c4a4349ea0058fbfa2029404f | https://www.cnbc.com/2019/04/18/sears-sues-eddie-lampert-steven-mnuchin-others-for-alleged-thefts.html | Sears sues former CEO Eddie Lampert, Treasury Secretary Mnuchin and others for alleged 'thefts' of billions from retailer | Sears sues former CEO Eddie Lampert, Treasury Secretary Mnuchin and others for alleged 'thefts' of billions from retailer
In this Nov. 17, 2004 file photo, Kmart chairman Edward Lampert listens during a news conference to announce the merger of Kmart and Sears in New York.Gregory Bull | AP
Sears on Thursday lodged a lawsuit against its former CEO Eddie Lampert and a string of its high-profile past board members, including his former Yale roommate Treasury Secretary Steven Mnuchin, for allegedly stealing billions of dollars from the once-storied retailer.
Sears Holdings filed for bankruptcy this past October, after years of losses under Lampert, who was then its chairman, CEO and largest shareholder. Lampert saved the retailer from complete liquidation by buying it through Transform Holdco, an affiliate of his hedge fund ESL Investments.
But Sears' unsecured creditors repeatedly argued that Lampert was the cause of, not the solution to, Sears' downfall. They believe that Lampert, along with Sears' biggest shareholders, unduly benefited from deals that occurred under Lampert's watch, including its spinoff of Lands' End in 2014, and the carve out of many of its best properties into Seritage Growth Properties, a real estate investment trust Lampert created a year later.
VIDEO10:2110:21Former Sears CEO: I had doubts about the company's ability to surviveSquawk on the Street
Those claims laid the groundwork for the unsecured creditors to pursue their claims against Lampert and others on behalf of Sears. Lampert had requested a release from potential ligation as part of his deal to buy Sears out of bankruptcy but was denied the protection.
"Altogether, Lampert caused more than $2 billion of assets to be transferred to himself and Sears' other shareholders and beyond the reach of Sears' creditors," the lawsuit alleged on Thursday.
Among the allegations lobbed at Lampert, the company said he rejected a $1.6 billion offer for Lands' End from private equity firm Leonard Green & Partners and the Tommy Hilfiger investment group in favor of a spin that would keep his stake in the brand untouched.
It cites an email from the company's then-CFO, Robert Schriesheim, who explained to another Sears employee that "[Lampert] was trying to optimize cash for [Sears] while maximizing his (esl) equity stake ... because he knows that [Lands' End] is worth a great deal outside of [Sears]."
The filing claims Lands' End was distributed to Lampert, ESL and other Sears' shareholders for no consideration, following a prespin dividend of $500 million. On the stock's first day of trading, its value topped $1 billion, with Lampert's share worth at least $490 million. The stock currently has a market value of $591.3 million.
It further alleges that Seritage's deal with Sears to give it ownership of 266 of Sears' best retail stores was not negotiated and undervalued the properties by at least $649 million.
"The appraisals were fundamentally flawed and, among other things, intentionally used under-market future lease rates as the sole basis for their valuations," the suit alleged.
VIDEO2:5902:59Eddie Lampert's bid to rescue Sears still aliveThe Exchange
Sears created committees to review each of its transactions, but the suit alleges those committees relied on "solvency opinions and appraisals based on false projections" even as Sears was in its financial "death spiral."
The suit also claims that, "In an effort to create a false record to cover up their asset stripping, at Lampert's personal direction, Sears employees repeatedly produced financial plans reflecting fanciful, bad-faith predictions that the company would experience an immediate and dramatic turn-around from deep and mounting losses to sudden profitability."
The suit names numerous defendants besides Lampert and Mnuchin, including two high-profile directors: Bruce Berkowitz, a hedge-fund manager who was a large investor in Sears, and Kunal Kamlani, president of ESL.
"ESL Investments, Inc. vigorously disputes the claims in the debtors' complaint against ESL, Mr. Lampert and Mr. Kamlani, which repeats baseless allegations and fanciful claims. As we have previously said, the debtors' allegations are misleading or just flat wrong," a spokesman from ESL said.
Mnuchin, who resigned from the Sears board when he was nominated to head Treasury, wasn't immediately available to comment.
"Fairholme is in the process of reviewing the filings," said a spokesman for Berkowitz's hedge fund, Fairholme Capital Management.
Berkowitz took his own swing at Lampert's management of Sears last year, when a lawyer for Fairholme told the bankruptcy court that Sears was "not so much a melting ice cube as it is a puddle." He called the retailer's tumble from grace a "multi-year liquidation" that happened "without court supervision."
VIDEO6:4906:49Kmart went from beating Walmart to twice-bankrupt. Here's what happened.Retail
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9f75ec4ed3dc510cf07c87cc5d414f1a | https://www.cnbc.com/2019/04/18/voice-technology-will-replace-keyboards-in-five-years-vc-investor.html | The keyboard will be gone in five years and voice tech is 'the opportunity of a decade,' investor says | The keyboard will be gone in five years and voice tech is 'the opportunity of a decade,' investor says
An attendee operates the new Amazon Echo device.Daniel Berman | Bloomberg | Getty Images
Voice-enabled technology will end the need for keyboards within five years, and investors should put their money into the space, a venture capitalist with a track record for successful bets has told CNBC.
"What's clear to me today is that the keyboard in five years will be gone as an input device," Mark Tluszcz, co-founder and CEO of Mangrove Capital Partners, said in an interview this week.
He said a struggle for the investment community when it comes to voice is figuring out whether voice recognition will be "a nice add-on" for companies or a "cataclysmic change to the user experience."
Tluszcz says his firm's bet is on the latter.
"Our thesis at Mangrove is it's a massive change," he said. "There are going to be many companies built that are only voice."
"Voice is the opportunity of a decade. I'm an optimist. An optimist that's been reasonably right many times."
Tluszcz has been known to back ventures that have ultimately resulted in a profitable return. Such investments include Skype, when it was originally bought by eBay in 2005, and Wix.com, which went public in 2013.
Voice-controlled tech has so far been a field dominated by large firms like Amazon — with its Alexa voice assistant and Echo devices — and Google — with the Google Assistant and Home. Even Facebook is working on its own voice assistant.
But Tluszcz says that's no reason to assume start-ups can't penetrate the space, and his venture capital firm has backed a French company called Sybel — which focuses on high-quality podcasts — to take advantage of the industry's growth.
While he thinks the tech giants are doing a "good job" at setting the standards for voice — for example, in recognizing less common accents — the industry will still require "massive innovation" and "new ways of using voice."
According to tech research firm Juniper Research, about 2.5 billion digital assistants were used by consumers across a range of devices at the end of 2018, and that number is expected to climb to 8 billion by 2023.
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4aa2d43776be47092478187c0d7a3ecd | https://www.cnbc.com/2019/04/18/why-that-irs-calculator-may-not-be-enough-to-pinpoint-your-2019-taxes.html | Why that IRS calculator might not be enough to pinpoint your 2019 tax liability | Why that IRS calculator might not be enough to pinpoint your 2019 tax liability
Zero Creatives | Getty Images
Hoping to avoid a tax surprise for 2019? Talk to your accountant before you use the IRS tax withholding calculator.
That's because user error and failure to consider state and local taxes could result in incorrect adjustments to the income taxes you have withheld at work.
The 2018 tax year brought in a host of changes for filers as they submitted returns under the new Tax Cuts and Jobs Act.
The new legislation roughly doubled the standard deduction, did away with personal exemptions and trimmed individual income tax rates.
Further, the Treasury Department and the IRS also updated the withholding tables that employers use to help deduct the appropriate amount of income tax from workers' paychecks.
The IRS is hammering out a new Form W-4, which you can use to tailor your income taxes. It'll be available in time for 2020. The W-4 you're using for 2019 will be similar to last year's.
VIDEO2:3702:37Tax Day winners and losersSquawk on the Street
Some filers grappled with smaller refunds and taxes owed, at least partly because they didn't adjust their withholding for 2018.
"The best time to figure out your W-4 is right after you prepare your taxes," said Nathan Rigney, lead tax research analyst at the Tax Institute at H&R Block.
"You need to keep in mind that we're already in April, so you have some catching up to do," he said.
There's the catch: Using the IRS withholding calculator alone might not be enough to pinpoint the right amount you should withhold.
"A lot of people don't understand the line items and you have to make sure you're accounting for that accurately," said certified financial planner Debbie J. Freeman, a CPA and director of financial planning at Peak Financial Advisors in Denver.
"Unless you understand taxes, it's not something you should fully rely on," she said.
Lucadp | Getty Images
How much income tax your payroll company pulls from your paycheck depends on the number of allowances you claim on Form W-4.
The more allowances you take — you can claim them if you have dependents or if you itemize deductions on your taxes — then the less tax you will have withheld from your pay.
If you withhold too much tax, you'll get a large refund from Uncle Sam next spring, but you've basically given the government an interest-free loan.
The struggle with more precise withholding is that it's 'garbage in, garbage out'. You need accurate inputs. It won't be as simple as writing a number of allowances and calling it good.Nathan Rigneylead tax research analyst at the Tax Institute at H&R Block.
If you withhold too little, you'll end up on the hook for taxes owed.
"If you can take a stab at it, it's worthwhile to use the calculator, but I worry that people will fill it out wrong, fail to withhold enough and have a surprise next year," said Chris Benson, a CPA and principal at L.K. Benson & Co. in Towson, Maryland.
VIDEO3:2003:20Sommer on Tax Day surprisesWorldwide Exchange
The biggest catch with the withholding calculator is that it doesn't tell you how to adjust for state and local taxes.
After crunching the numbers for a New Jersey-based married couple that files jointly and with one dependent, the IRS calculator suggested that the higher-earning spouse claim zero allowances and the lower-earning spouse claim six.
However, that result doesn't consider the Garden State's individual income tax rate, which is as high as 10.75%.
"The W-4 is supposed to change your federal withholding, but often employers give you the same allowances on the federal and state side," Freeman said.
More from Personal Finance:Retirees are flocking to these 3 statesUnhappy with your tax return? Prepare for 2019Even the wealthy might not be prepared to retire
Taking six allowances for both federal and state likely would have resulted in the couple owing New Jersey the following April, she said.
Instead, the lower-earning spouse could take three allowances on the federal return and three on the state, Freeman said.
Contact your employer's payroll department to let them know how you would like to deduct for state taxes.
MartinPrescott | E+ | Getty Images
User error and unfamiliarity with the appropriate deductions and credits may also result in questionable calculator results.
Though you can plug in your data for the child and dependent care credit, the child tax credit and more, you have to be aware as to whether you qualify for those breaks.
People who itemize their deductions may take more allowances, thus reducing the amount of taxes pulled from their paychecks.
Further, if you have side gig income in addition to your W-2 income at work, you'll need to revisit your withholding and ensure you're paying enough taxes.
It doesn't hurt to review your W-4 with your tax preparer and discuss potential changes, especially now that you've filed for 2018.
"The struggle with more precise withholding is that it's 'garbage in, garbage out,'" said H&R Block's Rigney. "You need accurate inputs. It won't be as simple as writing a number of allowances and calling it good."
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5d3ca80a19c6297b56cc42469193eb82 | https://www.cnbc.com/2019/04/18/youtube-for-fire-tv-coming-later-this-year.html | Google and Amazon have ended their war over the YouTube app | Google and Amazon have ended their war over the YouTube app
Amazon CEO Jeff Bezos and Alphabet CEO Larry Page.Getty Images
Google will relaunch the YouTube app and release a new YouTube TV app on Amazon Fire TV devices in the coming months, Amazon said Thursday.
Amazon Prime video will also soon support the Google Chromecast, ending a streaming spat between the two tech giants that started in 2017.
Google pulled its YouTube app from Amazon's Fire TV and Echo Show in December 2017 as competition between the two companies began to heat up in the streaming space.
At the time, Google said it decided to remove the app due to a "lack of reciprocity" from Amazon. It said Amazon refused to sell Google products such as the Google Home speaker, a competitor with the Amazon Echo, and the Nest camera, which competes with Amazon's Ring system. Amazon still does't sell the Google Home, but it does sell Nest cameras and thermostats.
Fire TV users have been able to use a third-party YouTube app that simply linked folks to the YouTube website. But a new version should offer a more feature-rich experience with support for 4K HDR content.
The addition of YouTube TV also means customers who subscribe to Google's streaming TV service will be able to tune in on the Fire TV, which supports additional services including Hulu, Sony's PS Vue, AT&T DirecTV Now and Sling TV.
VIDEO4:0504:05Amazon unveils Fire TV CubeSquawk Alley
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3e33cb723fd1f047046da3c4230ce0d5 | https://www.cnbc.com/2019/04/18/zoom-ceo-eric-yuan-worth-3-billion-after-ipo-profile.html | Zoom's CEO emigrated from China 22 years ago and spoke little English — now he's worth almost $3 billion | Zoom's CEO emigrated from China 22 years ago and spoke little English — now he's worth almost $3 billion
Zoom founder Eric Yuan reacts at the Nasdaq opening bell ceremony on April 18, 2019 in New York City.Kena Betancur | Getty Images
Not even Eric Yuan's closest friends, oldest advisers and earliest investors thought Zoom needed to exist. It was 2011, and the market was littered with videoconferencing systems from Google, Skype, GoToMeeting and Cisco, where Yuan had been leading WebEx's engineering team.
"He came to a market that everybody said was done," said Dan Scheinman, Cisco's former head of corporate development who's now an angel investor and Zoom board member. "He was competing with free and some pretty big incumbents."
Yuan, who emigrated from China to Silicon Valley in 1997 at age 27, says the problem with those products is that nobody enjoys using them, adding that the buggy code he wrote for WebEx two decades ago is still running today. As a software engineer with multiple patents related to real-time collaboration, he also knew that our smartphones and tablets could do so much more with videoconferencing than what was available.
So Yuan ignored the skeptics and instead listened to users. His wager is paying off.
Following Zoom's stock market debut on Thursday, the company is valued at $15.9 billion. The stock climbed 72% in its first day of trading to $62, after the company raised $356.8 million in its IPO.
Zoom's rich valuation — about 48 times sales — is a reflection of 118% revenue growth in 2018 coupled with an unusual quality for an emerging software company: profit. Thousands of businesses use Zoom's software, with many taking advantage of the free product alongside 344 companies that pay over $100,000 a year.
Yuan, who owns 20% of the shares, is tech's newest billionaire, with a stake worth about $2.9 billion.
Source: CNBC
It's been an epic journey for Yuan, 49, from founding a small software start-up in Beijing to the stage of the Nasdaq and CEO of one of the country's 10 most valuable cloud software companies. There are plenty of Chinese developers with senior engineering roles, but you don't see them starting companies and leading them through IPOs. In fact, none of the 50 companies in the Bessemer Nasdaq Emerging Cloud Index have Chinese CEOs.
Yuan had to beat the odds just to get to Silicon Valley, as his visa application was denied eight times.
He finally made it in 1997, where he got a job building the early WebEx online meeting system. He barely spoke English at the time.
"For the first several years, I was just writing code and I was extremely busy," Yuan said in an interview from New York on Thursday at the Nasdaq, where he was celebrating with about 80 employees, customers and investors. Yuan said he opted not to spend the time going through formal English training and, "I just learned it from my teammates."
He rose to become the company's head of engineering and held that position through Cisco's $3.2 billion acquisition in 2007. He left the company four years after that.
In April 2011, Yuan called Scheinman to invite him for tea and a demo of his new idea.
Scheinman had also left Cisco that month and was well aware of Yuan's background in video and collaboration. They'd struck up a friendship while working at Cisco, where Yuan established himself as a strong and reliable operator in addition to his engineering credentials. But for Scheinman to know for sure that he wasn't backing a closeted lunatic, he made two reference calls on Yuan, including one on his drive to the meeting.
By the time he arrived at Coupa Cafe in Palo Alto, Scheinman says, he had a signed a $250,000 check, and just needed Yuan to tell him what name to put on it because there's wasn't yet a company.
As of the market close on Thursday, Scheinman's investment has multiplied by over 700-fold to just under $176.5 million, though he's locked up from selling for six months.
"I said, 'I believe in you and I don't care what's in that presentation, because this is about you,'" Scheinman said, in an interview. "He said, 'For both of our sakes, can I show you the presentation?'"
Yuan says that other investors had committed capital but Scheinman "was the first one to wire transfer the money to the bank." Scheinman also introduced Yuan to his cousin, Jim Scheinman, founding partner of Maven Ventures.
Jim not only became an investor and adviser, but helped Yuan come up with four possible names for the company: Zippo, Hangtime, Poppy and Zoom. They ended up picking the last one.
For the first two years of Zoom's history, the company was just a small team – mostly engineers from WebEx. The first version of the product was released in 2013, and there were still so few people outside the engineering group that Yuan took it upon himself to email any user who canceled a subscription.
Yuan said he would try and get them on a Zoom call to talk through their problems and see how he could fix them. Sometimes those users would stick around and even turn into evangelists, Yuan said.
Some of the smartest people I know wouldn't take a meeting with Eric. He changed his screensaver to 'It can't be done' and kept working.Santi Subotovskypartner at Emergence Capital and Zoom investor
Zoom started getting viral adoption through the combination of a free product that anyone could use from their smartphones and, on the other side of the market, a suite of tools to sync mobile video with traditional conferencing systems. Rather than using Google Hangouts or Skype on mobile, WebEx or GoToMeeting from a PC and Cisco or Polycom gear for big conference rooms, Zoom wanted to provide all of it, with monthly subscriptions that worked for businesses of any size.
Source: Nasdaq
By the time Emergence led a $30 million round in 2015, the company was growing rapidly, with 65,000 companies using some version of the product. Santi Subotovsky, a partner at Emergence, said that two years earlier he couldn't get investors excited because the prevailing view was that the market had been commoditized and that Skype and WebEx had it covered.
"Some of the smartest people I know wouldn't take a meeting with Eric," Subotovsky wrote in an email on Thursday. "He changed his screensaver to 'It can't be done' and kept working."
Oded Gal, who worked for Yuan at Cisco and left in 2011, says that Zoom not only had to go up against massive incumbents but also faced competition from a new crop of start-ups aiming to modernize the videoconferencing experience.
Gal was working at one of those start-ups, BlueJeans Network, around the end of 2015, when a friendly meal with Yuan immediately turned into a recruiting effort. Gal said he was torn on whether to leave because BlueJeans had much more market traction and had already raised about $175 million, quadruple the amount Zoom had raised.
He made the move in March 2016 to join what he called the core group of 14 founding engineers at Zoom – all people he worked with at WebEx and Cisco.
"I knew that team and knew it was the best team in the world at building such a service," Gal said in an interview on Thursday.
Bay Area tech companies are full of fluffy catch phrases that define their mission and rally employees. Zoom appears to fit right in with a motto of "delivering happiness," which also happens to be the title of a 2013 book written by Zappos CEO Tony Hsieh.
But Yuan has convinced the people closest to him that he means it. Last year, Yuan was awarded the top big company CEO honor by jobs site Glassdoor, which said the executive has a 99% approval rating among employees. Among other perks, employees get reimbursed for any book they purchase for themselves or family members, including children's books.
"We want to hire people who are self-learners," Yuan said.
Yuan's commitment to people shows up in other ways, too. His oldest son just finished his senior season playing high school basketball and as a junior broke the conference's single season record for three pointers made, despite not picking up the game until after fifth grade.
Yuan was there to see almost every basket, and he attended most practices too.
VIDEO7:1707:17Watch CNBC's full interview with Zoom CEO Eric YuanSquawk Alley
"Out of a team of 15 kids, Eric was the most involved parent from day one," said Gabe Fodor, who coached Yuan's son on a Silicon Valley club team several years ago. "A lot of these CEOs and founders barely have time to hang out with their kids. This guy didn't only go to the games, but he was at the practices."
Yuan notes that he travels a lot less than many CEOs. He prefers to hold meetings with clients and recruits using Zoom, so that he can show off the product and get real-time feedback on what works and where users get tripped up.
But he also said he's committed to his family.
"No matter how busy you are you've got to spend time with your family," said Yuan, who has another son in high school and a younger daughter. "I do not want to miss any important moments."
Yuan is involved with the NBA as well, but for a very different reason.
In 2016, Zoom signed a three-year deal with the Golden State Warriors, providing the budding dynasty with video technology to communicate with fans online, putting Zoom conferencing rooms in Oracle Arena and, perhaps most importantly, plastering Zoom's brand across digital signs and on the scoreboard.
Source: Zoom
Janine Pelosi, Zoom's chief marketing officer, said the campaign is part of the company's "practical approach" to marketing.
"People don't wake up in the morning thinking about brands," Pelosi said. "Sports marketing is fantastic because you can get masses of people enjoying the event, you get TV coverage and you take advantage of the hospitality. We definitely leverage that for bringing in prospects and customers."
Momentum is now clearly on Zoom's side and, after the IPO, the company has hundreds of millions of dollars in the bank and a hefty market value it can use to invest in marketing, acquisitions and to tinker with artificial intelligence. Yuan said he's excited about the prospect of developing smart features that provide meeting participants with automated summaries.
Yuan has also started considering what to do with his money, now that he's joined the billionaire class. Yuan said that Microsoft co-founder Bill Gates, Facebook's Mark Zuckerberg and Salesforce's Marc Benioff are all role models for him in finding productive ways to use wealth for good. Yuan has already pledged to donate money to schools.
For now, he's enjoying the moment. On Thursday night, the dozens of employees and partners who were in New York for the IPO went to dinner at Gabriel Kreuther, an upscale French restaurant in midtown Manhattan. Yuan woke up on Friday to fly back to California for a celebration with his team at the company's headquarters in San Jose.
Then it's back to business, a message he uttered to his employees before seeing the stock pop dramatically on Thursday.
"I told our team after we finalized the price, we're done with that," Yuan said. "The price is out of our control. Anything out of our control, let's not think about that."
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e4a5ba7007e92f3153975d7bd3cfa4e3 | https://www.cnbc.com/2019/04/21/odd-things-left-behind-at-airports-include-a-glass-eye-and-a-baby.html | A Cartier bracelet, a glass eye and a baby among treasures left at airports | A Cartier bracelet, a glass eye and a baby among treasures left at airports
Passengers in O'Hare International Airport, Chicago.Kamil Krzaczynski | Reuters
It's one thing to leave your heart in San Francisco, but leaving a family heirloom, an engagement ring or your lucky bowling ball at San Francisco International – or any – airport will have you singing a different song.
Sleepy, rushed and distracted travelers leave thousands of objects at airport security checkpoints and in the terminals all the time. Cellphones, laptops, neck pillows and books are among the most common forgotten items, but some truly odd and valuable treasures also get left behind.
Last month, the pilot of a Saudi Arabian Airlines flight heading to Kuala Lumpur from Jeddah, Saudi Arabia requested permission to return to the gate after a mother realized she'd left her baby behind in the boarding gate area.
"Ok, head back to the gate. This is totally a new one for us," an air traffic control operator tells the pilot in an audio recording that went viral on YouTube.
Last week authorities at Alaska's Ted Stevens Anchorage International Airport (ANC) turned to social media seeking help in identifying the owner of a plastic bag containing human ashes that was left at a security checkpoint back in August.
"We believe the traveler left the TSA Screening Checkpoint with an urn, box, or bag, without realizing the ashes were still at the Screening Point," the ANC Police and Fire department said in its Facebook post.
Here are some other surprising items passengers have left behind at airports around the country.
Wedding photoSource: Los Angeles World Airports
About 1,000 items a day end up in the 5,000-square-foot warehouse managed by the lost and found department at Los Angeles International Airport. Along with the electronics, jewelry and photo IDs, LAX police found a still unclaimed script for the yet-to-air season premiere of a popular TV show that ended the previous season with a cliffhanger. (And no, LAX officials won't reveal the show, nor the plot.)
Most airports keep found inventory for 30, 60 or 90 days before discarding, donating or auctioning the items. But a few years back, airport police at LAX could not bring themselves to discard a wedding photo album found locked in a briefcase along with a mirror, a tablecloth and matching napkins.
A Facebook campaign eventually helped identify the couple, who hadn't even realized the album was missing.
QuiltSource: Salt Lake City International Airport
Last May, a floral box with a handmade quilt inside and a card reading "Charlene and Lark" was found at the Salt Lake City International Airport.
"It was obvious that a lot of time and effort went in to making the quilt. So we held on to it, even though our policy is to donate items after 30 days," said Brett Christensen, customer service supervisor at SLC Airport.
After seven months, Facebook led the lost and found team to the photographer for Charlene and Lark's wedding, who shared a contact for Charlene. The quilt was intended to be a wedding gift. Lark had left it behind after attending the funeral of his aunt, the quilt maker. But Charlene ignored emails and calls about the quilt because she never knew it existed.
So, the quilt sat on the lost and found shelves unclaimed for seven months, while we continued to try and locate the owner, said Christensen.
"Thankfully, she eventually came around and called back," said Christensen.
Tom Brakefield | Getty Images
Airport teams often use investigative skills and, sometimes, compassion, in finding a lost item its home.
Earlier this year, the lost and found staff at Dallas Fort Worth (DFW) International Airport was able to reunite a St. Louis passenger with a valuable and sentimental piece of jewelry after calling Cartier customer service with the serial number on a found bracelet.
And, after an airline refused to let a passenger at Nashville International Airport take his pet skunk on board or check it as baggage, customer service supervisor Chris Patterson agreed to look after Pepe the skunk for a few days. "After a week, I realized that Pepe's owner would not be coming back for him, and I was fine with that decision," said Patterson, who adopted Pepe and later found him a home in a zoo.
Glass EyeSource: Portland International Airport
After a Central Oregon festival celebrating the August 2017 eclipse, the lost and found in Redmond Municipal Airport (RDM) was overflowing with everything from camping gear and hula hoops to drugs and psychedelic paraphernalia. Water bottles, neck pillows and sunglasses are the usual fare, said RDM spokeswoman Erinn Shaw, "but we also once had a live chicken."
Portland International Airport also reports a wide range of odd left-behind items, including a 9-pound zucchini and a glass eye. "The zucchini is long gone," said PDX spokeswoman Kama Simonds, "but the glass eye has been in the lost and found for a few years."
MasksLisa Farbstein | TSA
The most common items left at airport security checkpoints around the country are belts, keys, glasses (sunglasses and prescription), photo IDs and laptops, said TSA spokeswoman Lisa Farbstein. However, she snaps and posts on social media the photos of some odd left-behind items including diamond watches and engagement rings, bowling balls, canes and walkers, a Santa statue, Halloween masks and thousands of dollars in cash. "The most unusual item I think I have seen left at a checkpoint was a portable child's potty at Dulles Airport," said Farbstein. "It was returned."
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a8a717d5445d2dbf3a0c6a15131f5f87 | https://www.cnbc.com/2019/04/22/heres-everything-that-has-gone-wrong-for-kraft-heinz-in-the-last-year.html | Here's everything that has gone wrong for Kraft Heinz in the last year | Here's everything that has gone wrong for Kraft Heinz in the last year
Kraft and Heinz productsScott Olson | Getty Images
The departure of Kraft Heinz CEO Bernardo Hees follows a string of headaches for the consumer packaged foods company over the last year.
Shares of Kraft Heinz rose 1.3% in morning trading Monday following the announcement that former Anheuser-Busch InBev executive Miguel Patricio, 52 years old, will replace Hees as CEO.
The iconic food company's stock, which has a market value of about $40.2 billion, has fallen more than 43% in the last year as it struggles to keep up with changing consumer tastes and stiff competition from new brands. Sales have grown stagnant, and its cost-cutting has recently fallen short, especially as commodity costs increase.
In February, the company revealed that it had received a subpoena from the Securities and Exchange Commission four months earlier related to its accounting policies and internal controls. It further disappointed investors with the news that it slashed its dividend by 36% and took a $15.4 billion write-down on Kraft and Oscar Mayer, two of its biggest brands. It also announced revenue and earnings that fell well short of Wall Street's estimates.
Four days after the batch of bad news, Warren Buffett told CNBC that Berkshire Hathaway overpaid for Kraft. Back in 2015, the billionaire CEO teamed up with Brazilian private equity firm 3G Capital to finance the merger between Kraft and Heinz. Berkshire and 3G are two of the company's biggest shareholders.
Months earlier, in August, 3G trimmed its stake in the company by 7%, bringing its total ownership to about 22%. Jorge Lemann, 3G's founder, said at the time that the company's business model of buying up strong consumer brands was facing new difficulties from upstart brands.
As a result of its troubles, Kraft Heinz has been weighing a number of divestitures, including its Maxwell House coffee business and Breakstone's sour cream and cottage cheese brand. Last November, the Capri Sun owner sold its Canadian dairy business and Indian beverage business for $1.23 billion, with the proceeds going toward paying down its debt.
After signaling that another acquisition could be on its way in early 2018, the company passed on the opportunity to bid on Pinnacle Foods, which was instead snapped up by Conagra Brands. And amid speculation that Kraft Heinz could buy Campbell Soup, Hees told analysts that the company didn't want any long-term regrets when it comes to mergers and acquisitions.
VIDEO8:5008:50Warren Buffett: Berkshire Hathaway 'overpaid' for KraftSquawk Box
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2946ccc079c7e863f66415132eebe18c | https://www.cnbc.com/2019/04/22/leica-says-it-wasnt-behind-ad-depicting-tiananmen-square-protests.html | Leica says it wasn't behind an ad depicting Tiananmen Square protests | Leica says it wasn't behind an ad depicting Tiananmen Square protests
Screengrab from a Leica camera promotional videoSource: Leica | YouTube
A promotional video for camera maker Leica showing photojournalists covering global conflicts — including the deadly Tiananmen Square protests in China in 1989 — has resulted in the company's name being banned on Chinese social media and the marketer denying responsibility for the video.
The five-minute film is called "The Hunt." It depicts photographers covering conflicts, including one capturing images of the "Tank Man," who stood in front of a convoy of Chinese military tanks the day after the Tiananmen Square massacre in which Chinese military attacked pro-democracy demonstrators. That subject has been widely censored in China. The video concludes with the image of Leica's logo.
The ad was released by Brazilian ad agency F/Nazca Saatchi & Saatchi, according to the South China Morning Post. The agency told the publication it had developed the film with Leica representatives in Brazil and said it "would never harm its huge reputation by creating, producing and airing a work without the proper approval of its client."
The agency said it has worked with Leica in Brazil since 2012.
Leica told the Morning Post the video was not commissioned by the company. Leica and F/Nazca did not immediately respond for requests for comment from CNBC.
By Friday morning, the Chinese social media site Weibo had banned the word "Leica" in Mandarin and English.
Some social media posters wondered whether Chinese tech giant Huawei, which works with Leica on smartphone camera lenses, would be pulled into the controversy. Huawei declined to comment on the video.
https://twitter.com/fnazca/status/1118131715535450112
https://twitter.com/voiceofchinatv/status/1118872439935705088
VIDEO5:4305:43You need good people: Leica's KaufmannManaging Asia
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823b04ba8d297dd2be7a85cbf9977a0e | https://www.cnbc.com/2019/04/23/brexit-talks-resume-as-mays-leadership-comes-under-renewed-pressure.html?__source=fincont&par=fincont | Brexit talks resume as May's leadership comes under renewed pressure | Brexit talks resume as May's leadership comes under renewed pressure
BRUSSELS, BELGIUM - APRIL 10: Britain's Prime Minister Theresa May arrives ahead of a European Council meeting on Brexit at The Europa Building, The European Parliament on April 10, 2019 in Brussels, Belgium. Theresa May formally presents her case to the European Union for a short delay to Brexit until 30 June 2019. The other EU leaders will then then discuss how to respond at a dinner without her. (Photo by Thierry Monasse/Getty Images)Thierry Monasse | Getty Images News | Getty Images
Brexit talks between the U.K. government and the main opposition Labour party have resumed after lawmakers returned to work following the Easter break.
A spokesperson for U.K. Prime Minister Theresa May told reporters Tuesday that the talks will "require compromise on both sides."
Asked if the government could agree retaining a customs union wit the EU to secure a deal with Labour, the spokesman said: "You know the prime minister's position with regard to the importance of being able to do trade deals."
A customs union is an agreement that allows partaking countries to set common external tariffs, allowing goods to travel freely between those countries. The draft proposal between the U.K. and EU does not include a customs union as supporters of Brexit say it prevents the right to strike fresh trade deals.
Earlier this month, May agreed another new Brexit date with EU leaders. It delays the U.K.'s departure until October 31, 2019.
VIDEO5:1405:14Where did Brexit come from?CNBC Reports
But her leadership status is once again under scrutiny after a lawmaker from her own Conservative Party told BBC Radio that she should step down.
"The only way we're going to break this impasse properly is if we have fresh leadership of the Conservative Party," Nigel Evans said Tuesday.
May withstood a leadership challenge from within her party back in December and under current rules cannot face another similar vote for at least 12 months.
However, opponents could reportedly attempt to rewrite party rules in a bid to replace her with a more vocal supporter of Brexit.
The 1922 Committee of Conservative backbench MPS (members of parliament) — an influential group of pro-Brexit lawmakers within the ruling party — are expected to meet on Tuesday afternoon to discuss what steps can be taken to remove May.
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8039f1d3ec2b8a7b72e632ebf9ca0110 | https://www.cnbc.com/2019/04/23/foxconn-wisconsin-governor-tony-evers-renegotiating-letter.html | Foxconn and Wisconsin are renegotiating their massive factory deal, governor's letter reveals | Foxconn and Wisconsin are renegotiating their massive factory deal, governor's letter reveals
Tony Evers, then-Democratic nominee for governor of Wisconsin, speaks during a campaign rally for Democratic candidates in Milwaukee, Wisconsin, on Monday, Oct. 22, 2018.Daniel Acker | Bloomberg | Getty Images
Wisconsin Governor Tony Evers says the state is renegotiating its contract with Taiwanese contract manufacturer Foxconn to build a massive LCD plant in the state, after Foxconn approached state officials to propose changes in the deal.
The disclosure comes in a letter from Evers to Foxconn executive Louis Woo, a special assistant to Chairman Terry Gou and the company's point person on the project.
In 2017, amid great fanfare including a White House ceremony including President Trump, Foxconn officials and then-Wisconsin Gov. Scott Walker, the company announced plans for a $10 billion manufacturing complex outside Racine, Wisconsin, with the promise of 13,000 new jobs. In return, the state promised $4.5 billion in incentives, as well as infrastructure improvements in the state.
Since then, the program appears to have stalled and the company has announced changes in the product mix at the facility. After Woo suggested earlier this year that the company was scaling back its plans, the President reportedly intervened, and the company announced plans to break ground later this year.
Republicans, who control the state legislature, accused Evers, a Democrat, of sabotaging the deal.
But in his letter, Evers says Woo talked to him — as well as State Assembly Speaker Robin Vos and Senate Majority Leader Scott Fitzgerald — about unspecified changes to the deal at a meeting in March.
"To my knowledge, this was the first time either Foxconn or the State of Wisconsin has mentioned amending or changing the agreement approved on 2017," Evers wrote about the March meeting.
In response, Evers wrote, the state is identifying areas that "will enable greater flexibility and transparency as the project continues to evolve."
In a statement late Tuesday, Foxconn did not deny that it was seeking changes to the deal, but said it is still committed to the project.
"Foxconn has never wavered from our commitment to our contract with the State of Wisconsin and the creation of 13,000 jobs as part of our broader effort to make the Badger state a global technology hub," the statement said.
The company said it is engaged in "good faith discussions" with the Evers administration.
"We remain committed to continuing to work with Governor Evers and his team in a forthcoming and transparent manner, and remain open to further consultation, collaboration, and new ideas," the company said.
WATCH: Foxconn's plans for Wisconsin are slow-going
VIDEO2:3002:30Foxconn's plans for Wisconsin are slow-going, says Milwaukee Journal Sentinel reporterThe Exchange
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001be8c15e965aa551df9c362fbfe265 | https://www.cnbc.com/2019/04/23/how-hedge-funds-use-alternative-data-to-make-investments.html | How hedge fund investors are making money off the data you're giving them for free | How hedge fund investors are making money off the data you're giving them for free
VIDEO1:3401:34How investors make money off data you give them for freeVideo
It's a thing that happens every day: Investors make money off data that you're giving them for free.
Think of something simple, like going to a store for some new clothes. That simple retail transaction generates a legion of data, like where you're shopping, your demographics and exactly what choices you make in the store. That data is anonymized and aggregated with other shoppers' data before being sold.
The end user? It's often hedge funds.
CNBC wanted to untangle the alternative data supply chain, and see exactly who's profiting off of your data, and how. So we went shopping for a new pair of pants.
You're on your way to purchase a new pair of pants. You drive to the store and park in the massive parking lot outside. Satellites from the commercial space industry see you pull up. They sell pictures of that parking lot — and thousands of others like it — to a firm called Orbital Insight.
The firm analyzes those satellite photos and turns it into data showing where and when people are shopping. They say consumer traffic can give them an early sense of same-store sales and revenue ahead of quarterly earnings.
But it doesn't end there. There are hundreds of apps — including weather and traffic apps you use everyday — that are collecting geolocation data wherever you go. They sell that data to companies like Thasos, a firm that specializes in analyzing foot traffic data. Those insights show how many customers visited a store on any given day – the kind of information investors pay top dollar for.
When you bought those pants, companies were tracking that too. If you use a program that combines all of your financial accounts in one place, you may have agreed to let companies like Yodlee sell your credit card transaction history to hedge funds.
The data is anonymized, of course.
Your emailed receipt for the pants is also full of valuable insights. That data is pulled through services like Rakuten Intelligence's Unroll.me. The software markets itself as a way to rid your inbox of junk mail. But in doing so, it gets a look at your emails and can gather useful insights into your shopping habits to sell to investors. Unroll.me says its technology can automatically recognize commercial emails and doesn't look at or share private ones.
And if you brag about your new pants on social media, you can count on a whole host of companies scraping Instagram, Facebook and Twitter to gather sentiment about the top retail brands.
There are more than 400 firms collecting so-called alternative data and selling it to hedge funds. Some data sets are more helpful than others. But overall, the use of alternative data is becoming more popular as fund managers look for ways to get an edge.
Funds are expected to spend more than $1 billion on alternative data this year, and almost double that in 2020, according to AlternativeData.org, an industry site run by YipitData.
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bd74823ff9121844c368a5b3ef31c7be | https://www.cnbc.com/2019/04/23/nancy-pelosi-will-meet-with-trump-to-discuss-infrastructure-plan-next-week.html | Nancy Pelosi and Chuck Schumer will meet with Trump to discuss infrastructure plan next week | Nancy Pelosi and Chuck Schumer will meet with Trump to discuss infrastructure plan next week
U.S. House Speaker Nancy Pelosi, a Democrat from California, speaks to members of the media while departing a House Democratic Caucus meeting on Capitol Hill in Washington, D.C., March 26, 2019.Al Drago | Bloomberg | Getty Images
Forget impeachment — Democratic leaders have their eyes on infrastructure.
House Speaker Nancy Pelosi and Senate Minority Leader Chuck Schumer will meet with President Donald Trump next Tuesday morning to discuss a potential plan to revamp U.S. infrastructure, CNBC confirmed. Pelosi, who first announced the meeting Tuesday afternoon, said she is "very optimistic" about finding a bipartisan path to passing both an infrastructure proposal and a measure to cut drug prices.
VIDEO2:3302:33Here's how to play energy infrastructure stocksThe Exchange
Both Democrats and the White House say they want to overhaul U.S. roads, bridges and airports. But the parties still need to agree on how to finance the projects and how many environmental provisions to include in a plan.
"We'll be meeting with the president next week when we come back to talk about what the prospect is for the size, in terms of resources and scope of what that might be," Pelosi said during the Time 100 Summit on Tuesday.
As House Democrats issue subpoenas to get information from the president's associates as part of ongoing investigations, Trump argued Wednesday that they should instead focus on legislation.
"Get back to infrastructure, get back to cutting taxes, get back to lowering drug prices. ... Really, that's what we should be doing," the president told reporters as he left the White House to travel to Georgia.
In late March, Trump told Fox Business Network that infrastructure is "the easiest thing" he could accomplish with Democrats. The president and Pelosi briefly discussed the issue during a St. Patrick's Day luncheon last month.
When she spoke Tuesday, Pelosi aimed to keep the focus on issues as she tries to tamp down talk of impeaching Trump ahead of the 2020 election. Calls to start impeachment proceedings have increased within the Democratic caucus following the release of special counsel Robert Mueller's report on his Russia investigation.
Mueller did not weigh in on whether the president obstructed justice by trying to influence the probe, but effectively left it to Congress to decide. Attorney General William Barr and Deputy Attorney General Rod Rosenstein declined to charge Trump with obstruction of justice.
VIDEO5:0605:06Thompson on infrastrutureWorldwide Exchange
Pelosi again called the prospect of impeachment "divisive." She repeatedly said Democrats should use House committees to pursue "facts" about the president's conduct.
But she did not unequivocally rule out impeachment in the future.
"It may be a place that the facts take us. We shouldn't impeach for a political reason and we shouldn't not impeach for a political reason," Pelosi said.
The White House did not immediately respond to a request for comment.
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8471a66bf416e0a22b3e364519ec938b | https://www.cnbc.com/2019/04/23/pinterests-ipo-minted-millionaires-but-for-many-there-is-a-catch.html?&qsearchterm=pinterest | Pinterest's IPO minted instant millionaires, but for many employees there is a catch | Pinterest's IPO minted instant millionaires, but for many employees there is a catch
Pinterest co-founder & CEO Ben Silbermann, center, gathers with company employees outside the New York Stock Exchange, Thursday, April 18, 2019, before the Pinterest IPO.Richard Drew | AP
Ben Silbermann became a very rich man on April 18 when Pinterest began trading as a public company on Wall Street, but the co-founder and CEO of the virtual pinboard could have been significantly richer. On Monday it was estimated that he is now worth $1.6 billion. The company's valuation on Tuesday reached near-$14 billion in trading.
It's just back-of-envelope math, but David Snider, founder and CEO of Harness Wealth, estimates Silbermann could have pocketed another $150 million or so if he'd been a little smarter about handling his options in the walkup to the IPO.
Silbermann's paper losses are significantly higher than the average employee of Pinterest, or any company that's going public, but the issues that resulted in the situation are fairly common.
VIDEO11:1211:12Watch CNBC's full interview with Pinterest CEO Ben Silbermann following its IPOSquawk Alley
In Silbermann's case, he received 31.2 million options in 2013, but based on Pinterest's S-1, they remain unexercised. Had he exercised them when the opportunity arose, they likely would have been eligible for long-term capital gains. Now he'll face short-term capital-gain taxes that could be as high as 45%.
The clock for long-term capital gains treatment starts once someone holds stock vs. a stock option. Typically, founders will either receive or take their equity ownership in stock from day one, or exercise their stock options when they're granted — when they have very little perceived tax value from an IRS standpoint. Assuming they hold those for a year or more, the proceeds, when they ultimately sell them, are considered long-term gains. Silbermann didn't exercise the options, though, and the value when he does (assuming he does at all) will be considered in the tax calculation. By exercising the options when they had a low value, he could have taken the most tax advantageous route.
But Silbermann hasn't always done things in the typical Silicon Valley start-up founder fashion. He preferred to avoid the press over the years; rejected the move-fast, break-things and chase-growth-at-all-costs unicorn mantra and refused to shell out tens of millions of dollars in marketing at a time when growth was slowing for the company. When Pinterest finally went public, Silbermann did not include a founder's letter in the S-1 filing, a soapbox many new tech titans use to sing the praises of how their firm is changing the world for the better.
IPOs, especially successful ones like Pinterest, can make instant millionaires out of early employees and garner profitable new opportunities for a company, but they can also bring about decisive changes in the workplace.
VIDEO8:3008:30Here's what to expect next from Zoom, PinterestSquawk Box
"There's a really big psychological shift from going from 'my stock has gone up again' with another valuation round to watching it change on a minute-to-minute basis," said Snider. "Even if you believe in the technology, it's going to take several years for it to grow and realize its full potential."
There's also the risk of a culture shift, as executives are required to focus more on shareholder concerns. And slip-ups that might have been minor when they were in stealth mode or private can now be stock-altering events.
"[Any company with a successful IPO] does carry the challenge of being part of a public company," said Snider. "There's more scrutiny. The public gets more information, but employees often get less, because senior management has to make sure there's no information provided to employees that can leak out and affect the company."
It's not just investors watching how a company performs after its IPO, it's potential employees as well. Should executives misjudge the market and face a significant drop after trading begins (and no subsequent recovery), it becomes very challenging to bring on quality talent.
As a private company, it's easy for potential employees to follow funding rounds. Bigger rounds generally attract more qualified workers. But "if you're a company that goes through a 60% market dip, it's going to be a lot harder to attract those," said Snider.
As for Pinterest, the day one results were encouraging. It will, of course, be months before we see if that market optimism is sustained. Employees are hoping so for several reasons, but largely because they want the stock to be high when their lockout period expires.
VIDEO3:3403:34Pinterest makes money by filling your feed with promoted pinsCNBC Disruptor 50
Many employees with vested options or who hold shares will likely cash out some of their shares when Pinterest's lockout expires. Unlike Uber, which has had several liquidity events for employees, Pinterest hasn't had the chance to cash in their holdings for five years, said Snider. The opportunity to cash in now will be very tempting to some.
And it's not a bad idea to take advantage of that opportunity. Holding stock in your company isn't a bad idea, but diversifying that wealth is a better long-term plan.
For many, like Silbermann, the first steps in that diversification should have started years ago. (Mark Zuckerberg, for instance, broke up his assets into a trust and other places to lighten the tax burden when Facebook went public.)
It's likely too late for Pinterest employees who weren't proactive in their planning. But for employees at other pre-IPO companies, Snider said it's important to know what type of stock units you hold and the different tax implications you face when those shares are sold or options are converted.
One thing you probably won't see at Pinterest is a notable employee turnover in the immediate future. When a company IPOs, there are generally two factors that encourage workers to stay. Some simply haven't hit vesting milestones and stand to lose a considerable amount if they leave early. Others don't want to be forced to exercise options before they're able to sell shares, as it could create a tremendous tax burden.
Say, for instance, an employee was offered an option of 1,000 shares at 50 cents per share. If that option is exercised prior to the IPO, they simply write a check and hold on to the shares. If they were to exercise that option when the shares were selling for $100 each, that could be applied to their income, even if they don't or aren't able to sell the shares.
"Adding that value could bankrupt someone if they're not paying attention," said Snider. "They could be paper rich and cash poor."
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a3e3707476788da2f70713afe45fdc0f | https://www.cnbc.com/2019/04/23/qualcomm-could-go-even-higher-after-apple-settlement-morgan-stanley.html | Qualcomm's surprising settlement with Apple is going to send the stock soaring even higher, Morgan Stanley says | Qualcomm's surprising settlement with Apple is going to send the stock soaring even higher, Morgan Stanley says
Steven Mollenkopf, CEO of QualcommMike Blake | Reuters
The market has not yet fully adjusted the price of Qualcomm stock after its settlement with Apple last week, Morgan Stanley analysts wrote in a note Tuesday.
That means that Qualcomm stock could go as much as much as 15% higher, to a target price of $95, analyst James Faucette and his team wrote.
Qualcomm is already on a tear. The stock rose more than 20% the day it announced its settlement with Apple, and continued to climb after that.
VIDEO1:5801:58CLSA: Qualcomm is still the global leader in 5G techSquawk Box Asia
Qualcomm holds critical intellectual property related to cellular networks, and equipment makers like Apple pay it royalty fees to use those so-called standards patents. In 2017, Apple sued Qualcomm, claiming that those licensing practices were unfair and anti-competitive.
Some analysts believe Qualcomm won the dispute. Apple ended up paying Qualcomm a one-time payment that has been estimated to be in the billions of dollars, and bought a license to those patents and modem chips directly from Qualcomm at a price estimated to be $8 or $9 per phone.
"The Apple agreement structure is very consistent with what we thought it should be (Apple paying a meaningful per phone royalty and returning to use Qualcomm modems)," the Morgan Stanley analysts wrote. "However, we were very surprised that Apple chose to settle now and return to what we estimate had been roughly the status quo; instead we had expected that Apple would wait to see if the courts would hand it more negotiating leverage."
One big reason for the Qualcomm bull case is that Morgan Stanley analysts said that Qualcomm is the "key enabler" of next-generation 5G networks. Qualcomm's chokehold on 5G modems is one reason Apple settled — otherwise, it might have been late to release a 5G iPhone, which is expected in 2020.
The analysts added: "We think Qualcomm's new horizons in 5G opportunities are relatively cheap/free options post Apple-settlement, Qualcomm enjoys a range of underappreciated options outside handsets that have the potential in the long run to make Qualcomm perhaps the largest semiconductor company in the world."
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WATCH: What four experts say about Apple-Qualcomm settlement
VIDEO2:5702:57Qualcomm and Apple reach settlement—here's what four experts say it means for the companies' stocksTrading Nation
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509655b6c010856fa20074bbafd7bcfa | https://www.cnbc.com/2019/04/23/sri-lanka-wakes-to-emergency-law-after-easter-bombing-attacks.html | Sri Lanka wakes to emergency law after Easter bombing attacks | Sri Lanka wakes to emergency law after Easter bombing attacks
A Sri Lankan soldier stands guard near a car explosion after the police tried to defuse a bomb near St. Anthony's Shrine in Colombo on April 22, 2019, a day after the series of bomb blasts targeting churches and luxury hotels in Sri Lanka.Jewel Samad | AFP | Getty Images
Sri Lankans woke to emergency law on Tuesday as authorities searched for those behind suicide bomb attacks on churches and luxury hotels that killed 290 people at the weekend, with the focus turning to militants with links to foreign groups.
No group has yet to claim responsibility for Easter Sunday's attacks on three churches and four luxury hotels that also wounded about 500 people.
Police spokesman Ruwan Gunasekera said the number of people arrested since Sunday had risen from 24 to 40. They are mainly Sri Lankans, although Gunasekera said police were investigating whether foreigners were involved in the attacks carried out by seven suicide bombers.
The president's office declared that emergency law would come into effect from midnight, giving police extensive powers to detain and interrogate suspects without court orders. An overnight curfew was also put into effect.
The declaration came after nerves were frayed even further in the seaside capital Colombo when explosives went off on Monday near one of the churches hit in Sunday's attacks while bomb squad officers were working to defuse a device.
CNN reported the blast was a controlled detonation.
Tuesday was also declared a national day of mourning.
The attacks brought a shattering end to a relative calm that had existed in the Indian Ocean island since a bitter civil war fought by Tamil separatists ended 10 years ago and raised fears of a return to sectarian violence.
It also underlined concerns over fractures in the Sri Lankan government, with questions raised over whether an intelligence tip-off was shared at the appropriate levels.
A government spokesman has said an international network was involved in the bombings but suspicion has focused on Islamist militants in the Buddhist-majority South Asian country. The nation of about 22 million people also has significant numbers of Hindus, Muslims and Christians.
The Washington Post quoted an unidentified law enforcement official as saying Federal Bureau of Investigation (FBI) agents were being sent to Sri Lanka to assist in the investigation.
The FBI has also offered laboratory expertise to test evidence and analysts were scouring databases for information that might shed light on tea attacks, the Post said.
VIDEO1:1501:15Secretary Mike Pompeo addresses attack in Sri LankaSquawk Box
U.S. intelligence sources said the attacks carried some of the hallmarks of the Islamic State extremist group, although they were cautious because the group had not claimed responsibility.
Islamic State is usually quick to claim responsibility for, or links to, attacks against foreign targets or religious groups whether they were involved or not.
A document seen by Reuters showed that police had received a tip-off of a possible attack on churches by a little-known domestic Islamist group this month.
The intelligence report, dated April 11, said a foreign intelligence agency had warned authorities of possible attacks on churches by the National Thawheed Jama'ut group. It was not immediately clear what action, if any, was taken in response.
Questions over why the intelligence warning was not acted upon could feed into a feud between Prime Minister Ranil Wickremesinghe and President Maithripala Sirisena.
Sirisena fired Wickremesinghe last year only to be forced to reinstate him under pressure from the Supreme Court and their relationship is reported to be fraught.
International experts said, even if a Sri Lankan group had carried out the attacks, it was likely that al Qaeda or Islamic State were involved given the level of sophistication of the apparently coordinated bombings.
Pakistani Christians hold candles to pay tribute to the Sri Lankan blasts victims during a vigil in Islamabad on April 22, 2019.Aamir Qureshi | AFP | Getty Images
Footage on CNN showed what it said was one of the bombers wearing a heavy backpack. The man patted a young child on the head before entering the Gothic-style St. Sebastian church in Katuwapitiya, north of Colombo. Dozens were killed there.
Most of the dead and wounded were Sri Lankans, although government officials said 32 foreigners were killed. That included British, U.S., Australian, Turkish, Indian, Chinese, Danish, Dutch and Portuguese nationals.
China's embassy in Sri Lanka warned Chinese nationals on Tuesday against travelling to Sri Lanka in the near term because of "huge security risks."
China is a major investor in Sri Lanka. The embassy said one Chinese national was killed, five were wounded and another five were missing.
Among the victims were three of the four children of Anders Holch Povlsen, Denmark's richest man.
Eight Britons were also killed, including Anita Nicholson, her 14-year-old son and her 11-year-old daughter. Nicholson's husband survived the attack on the Shangri-La Hotel in Colombo.
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df73f836e75dc423aab3b30bdf063e50 | https://www.cnbc.com/2019/04/23/trump-middle-east-peace-plan-is-coming-after-ramadan-jared-kushner-says.html?utm_campaign=20190424&utm_source=sailthru&utm_medium=email&utm_term=Middle%20East%20Minute | Jared Kushner: US will present long-awaited Middle East peace plan after Ramadan, and he will send immigration plan to Trump by next week | Jared Kushner: US will present long-awaited Middle East peace plan after Ramadan, and he will send immigration plan to Trump by next week
Senior Advisor to the President Jared Kushner speaks during the Time 100 Summit event April 23, 2019 in New York.Don Emmert | AFP | Getty Images
Senior White House advisor Jared Kushner said Tuesday that the Trump administration will put forward its long-awaited plan for peace in the Middle East after the end of the Muslim holy month of Ramadan in early June.
Kushner, who is also the son-in-law of President Donald Trump, provided few details about the plan to reconcile the disputes between Israelis and Palestinians. But he assured that the proposal itself is "very detailed" and will hopefully represent a "comprehensive vision" for peace.
"We were getting ready at the end of last year" to unveil the plan, but that rollout was interrupted by the Israeli election, Kushner said during an interview at the TIME 100 Summit in New York on Tuesday.
"Prime Minister [Benjamin] Netanyahu had a great victory, and he's in the middle of forming his coalition, and once that's done we'll probably be in the middle of Ramadan, so we'll wait until after Ramadan and then we'll put our plan out," Kushner said.
Asked whether the plan would call for a two-state solution between Israel and Palestine, Kushner declined to say, but added that "we are going to lay that out very clearly" in the report.
"There will be tough compromises for both," Kushner said.
The strong alliance forged between Trump and Netanyahu, who won a record fifth term in a close Israeli election earlier in April, has reportedly put a strain on the prospect of achieving a two-state compromise.
Less than a month before the conservative prime minister's reelection, Trump announced that the U.S. recognized the Golan Heights as a sovereign part of Israel — a controversial move that drew criticism from many of America's international allies.
In a video posted Tuesday, Netanyahu said that he wants a "new community" in the Golan Heights to be named after Trump.
Kushner also said he would be sending an immigration plan to Trump by next week.
The White House advisor, who has been tasked by Trump with leadership roles on a range of issues including sentencing reform and criminal justice reform, noted that he had not originally gone to Washington, D.C., to work on immigration reform.
Kushner said that "probably at the end of this week, next week, we'll present it [to Trump] again and he'll make some changes, likely, and then he'll decide what he wants to do with it."
The main prongs of the plan touch on securing the southern border and working toward a merit-based immigration system, Kushner said.
The president congratulated his son-in-law in a tweet shortly following the interview.
Trump TWEET
This is a developing story. Please check back for updates.
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a6f867efd45831447722525378c95a07 | https://www.cnbc.com/2019/04/23/watch-larry-kudlow-speak-live-to-the-national-press-club.html | Watch Larry Kudlow speak live to the National Press Club | Watch Larry Kudlow speak live to the National Press Club
[The stream is slated to start at 12:30 pm ET. Please refresh the page if you do not see a player above at that time.]
Larry Kudlow is director of the National Economic Council. He is speaking Tuesday to the National Economic Council. His remarks are expected to focus on the economy and recent volatility in financial markets.
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50cd5a48936442231e2a9d19a4a51342 | https://www.cnbc.com/2019/04/24/didi-softbank-taxi-hailing-joint-venture-expands-to-13-cities-in-japan.html | Didi-SoftBank taxi-hailing joint venture expands to 13 cities across Japan | Didi-SoftBank taxi-hailing joint venture expands to 13 cities across Japan
The Mapbox Vision software development kit is demonstrated on a smartphone at the SoftBank World 2018 event in Tokyo, where SoftBank Group and China's Didi Chuxing unveiled a taxi-hailing platform for Japan.Kiyoshi Ota | Bloomberg | Getty Images
Didi Mobility Japan, a joint venture (JV) by China's Didi Chuxing and SoftBank Corp, said it would expand its taxi-hailing service to 13 cities across Japan.
The app was first rolled out in September in Osaka, a popular destination for Chinese tourists, where it has tied up with 40 taxi firms in an increasingly crowded market for such apps that includes rivals backed by Sony and Toyota Motor.
It is expanding into Tokyo and Kyoto from Wednesday, with a further 10 locations to follow in the current financial year.
Despite SoftBank's oversized presence in the global ride-hailing industry, such services are effectively banned in Japan, leaving SoftBank portfolio companies like Didi and Uber limited to offering services that match taxis with customers.
Didi is among a growing number of SoftBank Group Corp-backed companies launching JVs with SoftBank's domestic telco.
Other startups doing so are shared co-working firm WeWork Cos and Indian hotel startup OYO.
As part of SoftBank's efforts to drive synergies between its portfolio companies users will be able to access the taxi-hailing service through Yahoo Japan's route-finding app and pay via PayPay, an app that uses tech from India's Paytm.
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c8bd1d1b96abfc174da5b677e83e256c | https://www.cnbc.com/2019/04/24/goldman-sachs-echos-tepid-apple-call-amid-risk-of-soft-iphone-sales.html | Goldman Sachs: Apple's iPhone sales this year will disappoint, causing stock decline | Goldman Sachs: Apple's iPhone sales this year will disappoint, causing stock decline
Apple iPhones are seen on display at an Apple Store on January 7, 2019 in Beijing, China.Kevin Frayer | Getty Images
Goldman Sachs underscored its lukewarm thesis on Apple and said it believes the company will ship fewer iPhones in late 2019 than the 67 million the rest of Wall Street expects.
Analyst Rod Hall reiterated his neutral rating Tuesday, telling clients that it's increasingly likely that Apple falls short of unit sales and average selling price estimates later this year.
"We believe consensus is assuming a steep recovery in China, with little change in demand trajectory for other [geographies]," Hall told clients in a note. "We note that iPhone shipments in the U.S. and Japan cycled up in CY18 [calendar year 2018], with U.S. shipments growing 8% year over year in CY18."
"A better consumer environment for the most part of 2018 combined with compelling products later in the year helped drive iPhone growth in these regions," he added. "For CY19, however, we note that U.S. consumer sentiment is down year over year and an end to subsidies in Japan could create volatility."
Apple shares were slightly higher in premarket trading Wednesday. The equity is up more than 27% over the last 12 months to $207.48 a share through Tuesday.
Goldman Sachs increased its price target on Apple to $182 on Wednesday, which still represents a 12% decline from here.
Apple has in recent years incorporated more luxurious features in its phone production, hoping to combat a decelerating replacement cycle with a higher average selling price (ASP). New generations include facial recognition and wireless charging, more storage capacity and larger screens.
The tactic has had mixed success across the globe. iPhone shipments in France, the United Kingdom and Spain declined 12%, 11% and 3%, respectively, in 2018 despite the deluxe offerings. Units fell 23% year over year in China over the same period, including a 44% year-over-year decline in the fourth quarter, Goldman's Hall added.
"It is too early to assume a recovery on units in China to pre-2018 levels given increasing local brand traction and ongoing consumer weakness that may suggest a "new normal" level of demand for the country," Hall wrote.
The analyst estimates 61 million iPhone sales in the December 2019 quarter, 8% below FactSet consensus. His average selling price estimate for fourth-quarter 2019 is $806, or 4% above consensus.
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e8088f63221d62ecdc16f99d36bcace3 | https://www.cnbc.com/2019/04/24/trump-were-fighting-all-the-subpoenas-from-house-democrats.html | Trump: 'We're fighting all the subpoenas' from House Democrats | Trump: 'We're fighting all the subpoenas' from House Democrats
VIDEO3:0303:03President Trump comments on the market's record highs, unemployment numbersSquawk Alley
President Donald Trump vowed Wednesday to battle every subpoena lodged by House Democrats.
"We're fighting all the subpoenas," Trump told reporters outside the White House, en route to an event in Georgia on the opioid crisis.
In recent months, House Democratic leaders have issued dozens of requests for information or cooperation from Trump, his administration and his associates.
Democrats are demanding testimony from high-ranking current and former White House officials, as well as years of Trump's financial records and the unredacted version of special counsel Robert Mueller's report on Russian meddling in the 2016 election..
Caught at the center of the crossfire is former White House counsel Don McGahn, who was cited by Mueller more than any other Trump official in the special counsel's 448-page report that also investigated possible Trump-campaign coordination with the Kremlin and obstruction of justice by Trump himself.
On Tuesday, Trump told The Washington Post that he did not see any reason to "go any further" in allowing his aides to testify before congressional committees, "especially in Congress where it's very partisan — obviously very partisan."
Trump has already backed up his rhetoric with action: On Monday, the president sued House Oversight Committee Chairman Elijah Cummings, D-Md., and the president's former accounting firm Mazars to block a subpoena seeking years of financial information from Trump and his businesses.
Several legal scholars have since noted that the lawsuit against the accounting firm is a long shot and appears to be more of a delay tactic than anything else. In their justification for why the courts should block the release of the president's taxes, Trump's lawyers cite case law from an 1880 ruling as their precedent. In 1927, that precedent was replaced with a much broader reading of congressional powers, which has set the legal standard ever since, although Trump's lawyers do not mention this.
"They're seeking ... to overturn the entire modern case law that the courts have put together to respect Congress' investigative power," University of Baltimore law professor Charles Tiefer told The Washington Post. "These suits look like an act of desperation by the Trump lawyers."
The subpoena for McGahn, issued by House Judiciary Chairman Jerrold Nadler, D-N.Y., is "ridiculous," Trump said outside the White House on Wednesday.
The Russia report — released with redactions Thursday — found insufficient evidence to prove that Trump's 2016 campaign coordinated with the Kremlin. Attorney General William Barr and Deputy Attorney General Rod Rosenstein further determined that the report did not show that Trump committed an obstruction of justice offense.
Senior White House advisor Kellyanne Conway said earlier Wednesday that an option to assert executive privilege to keep McGahn from testifying "is on the table."
Nadler has already rejected that move, however. "The moment for the White House to assert some privilege to prevent this testimony from being heard has long since passed," the committee chairman said in a statement Tuesday evening.
Trump spoke to the press en route to Atlanta, where he and first lady Melania Trump are scheduled to headline an event on the opioid crisis Wednesday afternoon.
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1e2cf7289bba78a2ca06c4a06ec4f127 | https://www.cnbc.com/2019/04/24/united-ceo-has-no-sense-of-when-boeings-737-max-jet-will-fly-again.html | United CEO has 'no sense' of when Boeing's 737 Max jet will fly again | United CEO has 'no sense' of when Boeing's 737 Max jet will fly again
GP: Oscar Munoz, chief executive officer of United Continental Holdings Inc., speaks during a Bloomberg Television interview in Chicago, Illinois, U.S., on Wednesday, April 24, 2019.Jim Young | Bloomberg | Getty Images
United Airlines CEO Oscar Munoz said Wednesday that he has no idea when Boeing's grounded 737 Max jets will fly again.
"I think it's fair to say that we do not know yet ... We have really no sense of it at this point in time," he said on CNBC's "The Exchange."
The Max has been grounded since mid-March after its anti-stall software was implicated in crashes in Ethiopia and Indonesia since October that killed a total of 346 people. United has grounded its 14 Boeing Max jets through early July, along with other carriers like Southwest and American.
VIDEO3:4203:42United Airlines CEO on Boeing, animal policy and jet fuel pricesThe Exchange
"It's important that when we return this aircraft to flight, that we do it in relative unison and lockstep around not just the U.S. but the world. So we'll have to monitor and engage that," Munoz said.
Boeing, which expects a $1 billion hit from the groundings, said Wednesday that it will pause share buybacks and is withdrawing its full-year 2019 financial forecast while it works works on a software update. The company has cut production and halted deliveries. It said it's completed 96 flights totaling more than 159 hours of air time with its new anti-stall software upgrade.
The Federal Aviation Administration said April 16 that its initial review showed Boeing's update to the MCAS system was "operationally suitable."
United Continental Holdings, parent company of United, reported earnings Tuesday that topped Wall Street estimates for first-quarter profit but missed on revenue. United has 16 Maxes scheduled for delivery in the second half of the year, and Munoz said that if the grounding continues the airline will feel the impact.
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76569b44651707e7a15c92e0cc43dcca | https://www.cnbc.com/2019/04/24/who-created-venmo-and-its-path-to-profitability-for-paypal.html | Venmo's path to profitability for PayPal: Cashing in on $62 billion payments processed per year | Venmo's path to profitability for PayPal: Cashing in on $62 billion payments processed per year
Venmo has changed the way individuals move money. The peer-to-peer payment app, owned by PayPal, is known for its emoji-filled newsfeed where users can see who their friends are paying, and for what. It ranges from roommates reimbursing utilities and rent checks to friends paying each other back for lunch or last night's bar tab.
But does Venmo actually make money? For years, it hasn't. In 2019 though, the app has made progress toward breaking even, PayPal Chief Operating Officer Bill Ready said. For now, the team at Venmo is more concerned with expanding its share of the digital payments market.
Still, there are concerns about privacy for users and security for their money. There's also competition from the big banks, which launched their own peer-to-peer payment option called Zelle. Payments company Square also has a rival called the Cash App.
Many on Wall Street are watching closely to see whether this millennial-driven payments phenomenon is a flash in the pan or here to stay.
Watch the video above to see more on Venmo's path to profitability.
See more:
How Robinhood makes moneyHow Amazon paid $0 federal income tax in 2018Bernie Sanders' 2016 economic advisor Stephanie Kelton on Modern Monetary Theory
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6caca37f87b9e602972ffe46574d6fff | https://www.cnbc.com/2019/04/25/texas-exports-boosted-by-oil-rise-3-times-faster-than-us-increase.html | Texas exports, boosted by oil, rise 3 times faster than the US increase, outshining California | Texas exports, boosted by oil, rise 3 times faster than the US increase, outshining California
Shipping containers sit stacked on a cargo ship docked at the Port of Houston Bayport Container Terminal in Pasadena, Texas, U.S., on Friday, April 12, 2019.Bloomberg | Bloomberg | Getty Images
Robust demand for Texas oil and gas in the first two months of 2019 pushed the state's export activity into high gear: triple the national rate and contrasting with a slight decline by California.
The Lone Star State's exports totaled more than $50.9 billion in the January-February period of 2019, increasing 9% from a year earlier, according to WISERTrade, a trade research firm. For California, total international sales dipped 1% to $28.1 billion in the two months compared with national export growth of 2.6% to $260 billion in the period.
Texas represented nearly 20% of all U.S. exports in the January-February period while California accounted for about 11%. California has seen its share of total U.S. exports fall in recent years while Texas has been growing its share due mainly to the new oil boom.
"Two-thirds of the U.S. increase in exports over these last two months have come from Texas," said Michael Cox, a former chief economist for the Federal Reserve Bank of Dallas and an executive in residence at Southern Methodist University. "And 99.4% of that is oil and gas."
Oil and gas exports from Texas rose 45% in value in the first two months of 2019, and petroleum and coal products grew by 5%. One laggard was agricultural products, which fell about 22%, reflecting a drop in oilseeds, grains and other farm-related products.
Mexico, which bought $17.4 billion worth of products from Texas during January and February, remains the leading export sales destination followed by Canada.
Texas' agriculture exports to Mexico were up 9% in the first two months of 2019, but there was weakness from sales of meat and dairy products. In response to President Donald Trump's steel and aluminum import duties, Mexico and Canada last year imposed tit-for-tat tariffs on a variety of U.S. food and agricultural products, including pork and some dairy items.
As for China, Texas saw its total exports to the world's second-largest economy fall by 52% to $1.6 billion in the first two months of the year, with the agriculture trade portion plunging 85% in value.
Similarly, total U.S. agricultural exports to China were sharply lower in January and February, falling by 48% during the two months, according to WISERTrade. It followed Beijing last year imposing retaliatory tariffs on a variety of U.S. farm-related products, including soybeans, grains, meats, cotton, dairy products, fruit and nuts.
U.S.-China trade talks are scheduled to resume next week in Beijing led by U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin. There were signs of progress in the previous round of bilateral negotiations but hurdles remain, including forced technology transfer and an enforcement mechanism of any final agreement.
Pistachios coming off the conveyor of the specialized nut harvester and into a storage container, Yolo, California.Mardis Coers | Moment Mobile | Getty Images
For California, total exports to China dipped 8% to $2.4 billion in the January-February period while agricultural shipments to the world's second-largest economy sank 36%. The Golden State's fruit and tree nut exports to China declined by nearly 44%.
"Exports to China are down, there's no doubt about it," said Christopher Thornberg of the Los Angeles-based consulting firm Beacon Economics. "But you're seeing price effects having more of an impact on the [export] numbers than actual volumes."
California agricultural commodities such as tree nuts, especially walnuts and pistachios, were among the products that experienced weaker pricing. Up to 70% of California's tree-nut crops get exported overseas, and some years more than half of the product goes to China and Hong Kong.
Ironically, Iran — a chief competitor to California's pistachio industry — appears to have played a role in keeping Chinese demand high for some U.S. tree nuts. A significant freeze last spring in Iran killed off a large portion of the country's nut crop, leaving the U.S.-grown product in higher demand.
"Iran had a small pistachio crop and only exported about 5% of what they normally do," said Dan Sumner, an agricultural professor at the University of California in Davis. "So prices came down from where they would otherwise be, but we're still exporting."
-Graphics by CNBC's John Schoen.
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b503c62444d69cdbc339cb23374c14a4 | https://www.cnbc.com/2019/04/26/amazon-is-the-name-to-own-in-maga-basket-of-stocks-say-two-experts.html | Four 'MAGA' stocks are worth a combined $4 trillion. Here's the one to own, say two experts | Four 'MAGA' stocks are worth a combined $4 trillion. Here's the one to own, say two experts
VIDEO3:4703:47Microsoft and three other stocks close in on $4 trillion in market capTrading Nation
It's "MAGA," for the markets.
Microsoft, Amazon, Google-parent Alphabet and Apple are soaring this year, making up a combined market value of nearly $4 trillion. That exceeds the combined value of half of the S&P 500 companies.
But the title of "greatest" can only be bestowed upon one name.
"Amazon to me is really the best of the four," Newton Advisors' Mark Newton said Thursday on CNBC's "Trading Nation." "It's had a huge trajectory over the last 10 years, [it] has done a lot better than some of these other stocks, and still maintains, you know, very attractive technicals."
The stock rose 1.5% in early trading Friday after the e-commerce company beat first-quarter profit forecasts by a wide margin and posted 17% in revenue growth. Amazon also predicted a 13% to 20% increase in second-quarter sales, although the company's operating profit guidance did fall short of analyst estimates.
Shares of the tech giant have already rallied nearly 50% since their steep slide at the end of 2018. But the stock still hasn't regained its September 2018 $2,050 all-time high, which Newton says means there's still opportunity in the name.
"I think it does get back to former highs. It might stall out briefly, but it would be one of the four that I still like. And you know I think the group still does fine in the weeks and months to come," he added.
Strategic Wealth Partners' Mark Tepper agrees that Amazon looks good on a fundamental basis. He believes the valuation is compelling, and that growth from higher margin businesses will continue to drive the stock higher.
"All four great companies," he said of the MAGA basket of stocks, "but the one that's most attractive to me is Amazon. ...They haven't seen that recent runup in price that the other stocks have. And it's quite simply way undervalued."
Amazon currently trades at 143 times forward earnings, making it more expensive than Microsoft, Alphabet and Apple, which trade at 114, 56 and 85 times forward earnings, respectively.
Tepper likes the Seattle-based company's diversified revenue streams — especially the growth of its AWS cloud services business.
"We love the three pillars of their business. Obviously you have retail, cloud, and advertising … and Amazon has AWS. They are the dominant player. They're number 1 in the cloud space. They have been growing that business at over 40% annually. And then we shift over to their other high margin business which is the ad business. They're swiping ad dollars from Google and Facebook," he said.
With growth and momentum behind Amazon, Tepper believes it will soon take out the $2,250 level.
The stock has gained about 27% this year, and was trading around $1,912 on Thursday.
Another of the MAGA trade, Microsoft, soared to a new all-time high on Thursday — topping the $1 trillion mark — after the company beat top and bottom line estimates, helped by cloud revenue and software subscription growth.
But Newton believes the stock's record rally may have gotten ahead of itself. He thinks there could still be some opportunity in the near term, but that the stock looks overbought and has gotten "very stretched." He prefers Amazon since it's still trading below it's all-time high.
— Disclosure: Mark Newton, Mark Tepper and Strategic Wealth Partners own shares of Amazon.
Disclaimer
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fb9119c32af8d1b2b5c129f3eca115e9 | https://www.cnbc.com/2019/04/26/apple-looked-at-intels-5g-business-wsj.html | Apple reportedly looked at buying Intel's 5G business, showing openness to big deals | Apple reportedly looked at buying Intel's 5G business, showing openness to big deals
Tim Cook, chief executive officer of Apple Inc., speaks during an event at the Steve Jobs Theater in Cupertino, California, U.S., on Monday, March 25, 2019.David Paul Morris | Bloomberg | Getty Images
Apple was involved in discussions to buy Intel's modem chip division, the Wall Street Journal reported on Friday.
The deal would have been as much as a "few billion dollars," but talks stopped recently, according to the report.
The news underscores Apple's increased willingness to consider making large multi-billion acquisitions with its substantial free cash flow. It also has over $245 billion in cash, cash equivalents and marketable securities on its balance sheet.
Apple's biggest historical acquisition was Beats Electronics and Beats Music in 2014 for $2.6 billion.
Intel currently provides LTE modem chips for Apple's current generation of iPhones. But Qualcomm's modem chips are widely considered to be superior, and Apple said it will buy Qualcomm chips again after a bitter legal battle between the two companies was settled last week.
Hours after the settlement, Intel announced that it would no longer develop its next-generation 5G modem chip.
"In light of the announcement of Apple and Qualcomm, we assessed the prospects for us to make money while delivering this technology for smartphones and concluded at the time that we just didn't see a path," Intel CEO Bob Swan told the Wall Street Journal.
Apple and Intel declined to comment.
Subscribe to CNBC on YouTube.
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8d952dd76eb2b9c12ea991316537799a | https://www.cnbc.com/2019/04/26/california-governor-signs-internet-sales-tax-law.html | California governor signs internet sales tax law | California governor signs internet sales tax law
Jeff Daniels | CNBC
California's Democratic governor has signed a law requiring companies like Amazon and eBay to collect sales taxes on behalf of some out-of-state sellers.
The law comes after the U.S. Supreme Court ruled last year states can collect sales taxes from companies even if the company is based outside of the state's borders.
After the ruling, existing state law required sellers with at least $100,000 of sales in California to register as a retailer and collect taxes. The law Gov. Gavin Newsom signed on Thursday requires companies like Amazon and eBay to collect the taxes on behalf of those retailers, but only if they have at least $500,000 of annual sales in California.
State officials predict the law will generate an extra $759 million in state and local taxes by 2021.
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f966877720b8652b98c80c59efb3fcf2 | https://www.cnbc.com/2019/04/26/huawei-5g-how-countries-view-the-chinese-tech-giant.html | Here's which leading countries have barred, and welcomed, Huawei's 5G technology | Here's which leading countries have barred, and welcomed, Huawei's 5G technology
5G logo is seen on an android mobile phone with Huawei logo on the background.Omar Marques | LightRocket | Getty Images
Huawei has faced mounting political pressure in recent months as the U.S. asks allied countries to block Huawei from being a part of next-generation mobile networks known as 5G.
Washington has accused the Chinese telecom equipment maker of being a national security risk, alleging its gear could be used by Beijing for espionage. Huawei, meanwhile, has repeatedly emphasized that it would never allow its hardware to support spying efforts.
5G networking technology promises super-fast download speeds on devices, but it is also seen as a key piece of infrastructure that will be able to support new data-heavy technologies like driverless cars.
The American pleas to other countries to bar Huawei from those networks have seen mix results. Here's how some of the world's major economies have responded and how they view Huawei.
VIDEO4:4104:41Why the US thinks Huawei is a massive national security threatCybersecurity
Huawei has been absent from the U.S. market for many years, and the U.S. government has been public about its suspicion of the Chinese firm for some time.
In 2012, the U.S. House Intelligence Committee released a report in which it said equipment from Huawei and rival ZTE could "undermine core U.S. national-security interests."
Washington has stepped up criticism and actions against the company in recent times. Huawei had planned to release a flagship smartphone in the U.S. through a partnership with telecoms firm AT&T last year. However, that deal fell apart reportedly because AT&T was urged by the U.S. government not to go through with it because of security fears.
Then in December of last year, Huawei CFO Meng Wanzhou, who is also the daughter of founder Ren Zhengfei, was arrested in Canada at the request of the U.S. She has been accused of fraud linked to violations of American sanctions on Iran. Meng has denied those allegations.
U.S. government agencies are banned from buying Huawei gear. The Chinese technology giant has tried to fight back. In March, Huawei filed a lawsuit against the U.S. claiming a piece of legislation that prevents government agencies buying its equipment is unconstitutional.
Huawei's founder has also been very vocal in recent months on the issue. Ren told CNBC in a recent interview that the U.S. was "scared" of Huawei.
The EU's response to Huawei so far has been divided with individual countries making their own decisions and the bloc's institutions trying to come up with a unified policy.
The European Commission issued recommendations in March around 5G security. The EU's executive arm said that member states should carry out a cybersecurity risk assessment on their own nation's network, which would eventually lead to a bloc-wide assessment later in the year. The idea is to come up with a list of risks and ways to mitigate them.
While those are not legally binding recommendations, the Commission hopes it will lead to national legislation regarding 5G rollouts.
The EU did not name Huawei in its recommendations and has not put a ban on the company in the bloc.
Japan effectively banned Huawei and other Chinese companies from public procurement in December. The government did not name Huawei specifically in its guidelines, but warned telecommunications operators not to use equipment that could carry security risks.
SoftBank Group, NTT Docomo and KDDI, Japan's three main mobile carriers, have decided not to use Huawei equipment in the rollout of 5G, according to the Nikkei Asian Review.
Huawei was part of some 4G networks in Japan. SoftBank, one of the firms that used Huawei's 4G gear, is looking to replace it with equipment made by other vendors.
Germany will not ban Huawei from participating in the country's 5G networks, according to the country's telecommunications regulator.
Jochen Homann, president of regulator the Bundesnetzagentur, told the Financial Times in a recent interview that no equipment suppliers, including Huawei, "should, or may, be specifically excluded," adding that he has yet to see evidence that the company poses a security risk.
Homann said Huawei could participate in the 5G rollout if it complies with all the security requirements.
Media reports in February suggested that German Chancellor Angela Merkel was seeking a deal with China not to spy on each other. The idea was backed by Huawei's founder Ren Zhengfei in an interview with CNBC.
"We endorse unified global standards that make installing backdoors a crime ... we want to sign such an agreement because we think it's the right thing to do," Ren said of the potential "no-spy" deal.
VIDEO1:1301:13Huawei CEO: We support Germany's proposed 'no-spy agreement'Street Signs Asia
Huawei will be allowed to participate in limited parts of the U.K.'s 5G networks, according to the Guardian and Telegraph newspapers.
The two media outlets reported that Britain's National Security Council, which is chaired by Prime Minister Theresa May, will allow Huawei to sell equipment to British carriers for "non-core" parts of the network.
A 5G network is made up of a "core" and radio access network (RAN). The latter part is the equipment that allows any device to hook up to the 5G network. Experts suggest that keeping Huawei out of the core could be one way to mitigate any security risk.
VIDEO6:4906:49What is Huawei?CNBC Explains
Mobile operators in Britain have warned that an outright ban on Huawei could hurt their businesses. Vodafone said such a move would cost it hundreds of millions of pounds and "very significantly" slow down the rollout of 5G. Huawei, meanwhile, has been involved in the British 4G networks.
Still, the U.K. has some concerns about Huawei. In March, a government-led oversight body created to vet Huawei gear, said that a previously reported software issue had not been fixed. It added there were "underlying defects" in the company's software engineering and cybersecurity processes which create a "significantly increased risk to U.K. operators."
India has not made up its mind on Huawei yet. It has invited the company, along with rivals Nokia and Ericsson, to conduct 5G trials in the country.
However, the Nikkei Asian Review reported in March that the government was looking to restrict Huawei's participation in 5G without looking to single the company out.
Huawei is not banned from selling 5G equipment in France.
However, the country's lawmakers are currently debating a bill which would implement strict tests to find out whether a vendor's network equipment poses a security risk.
One article in the bill proposes giving the French prime minister power to block manufacturers deemed to be subject to interference from a state that is not a member of the European Union.
In an interview with French news organization La Tribune translated by Euractiv, Eric Bothorel, a key lawmaker behind the proposed legislation, said that article "does not only target equipment from Asian countries."
U.S. officials warned the Brazilian government about their concerns over Huawei, Reuters reported in March. However, Huawei has not been banned or restricted.
Italy said in February that it would not make a move to block Huawei or ZTE from participating in 5G networks despite an earlier report that it would do so.
Canada has not yet made a decision about Huawei, but is continuing to weigh the risks. Canadian Public Safety Minister Ralph Goodale has repeatedly said in the press that there is no timeline for when a decision will be made.
Canada has been caught in the middle of the spat between the U.S., China and Huawei. In December, Canadian authorities arrested Huawei CFO Meng at the request of the U.S. government. In seemingly retaliatory moves, China arrested a number of Canadian citizens.
VIDEO1:2601:26Challenges can prepare my daughter for 'greater things': Huawei CEOSquawk Box Asia
South Korea is among one of the first countries to roll out a commercial 5G network as it looks to take a lead in the next-generation technology. The government has left the choice of network equipment vendor up to individual carriers.
KT and SK Telecom, two major mobile networks in South Korea, do not use Huawei equipment for their 5G networks.
However, LG Uplus, another cellular network that is run by South Korean electronics company LG, does use Huawei equipment.
In August 2018, Australia banned Huawei and ZTE from participating in the country's 5G networks.
That move came under the tenure of former Australian Prime Minister Malcolm Turnbull, and he explained why his government made that decision in a recent interview with CNBC.
"Now, the company, the entity that provides that, that maintains it, that has constant access to it, has enormous capability, if it chose to do so, to act adversely to your interest," Turnbull said about firms that sell 5G equipment.
"No one is suggesting that Huawei would do that, certainly not me. I have great admiration for the company," he said. "But, capability takes a long time to put in place. Intent can change in a heartbeat, so, you have got to hedge and take into account the risk that intent can change in the years ahead."
Turnbull highlighted a key nuance — that Huawei hasn't done anything wrong but there is a risk of of something bad happening if intentions change.
VIDEO4:2204:22We chose to 'hedge' when it came to 5G: Ex-Australian prime ministerCredit Suisse Asian Investment Conference
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bbbbb86c479b9a2bceab297df6ad4859 | https://www.cnbc.com/2019/04/26/mo-ibrahim-the-african-engineer-who-became-a-billionaire-businessman.html | This African engineer thought business people were crooks until he founded a company and became a billionaire | This African engineer thought business people were crooks until he founded a company and became a billionaire
Mo Ibrahim, founder and chairman of Mo Ibrahim Foundation participates in a panel at the Clinton Global Initiative annual meeting in New York.Adam Jeffery | CNBC
When Mo Ibrahim was growing up in Alexandria, Egypt, he idolized scientists such as Marie Curie and Albert Einstein and eventually became a telecommunications engineer.
Fast-forward several decades and Ibrahim is now a billionaire business person — something he never expected would happen, because he didn't initially trust those running companies.
"Because of my (up)bringing, because of … my social background … we assume businessmen are crooks or people involved in funny stuff. We respect professions, you know. You need to be a doctor, an engineer, to earn honest money and to do (the) right work, but guys involved in wheeling and dealing, we are suspicious of that," he told CNBC's "The Brave Ones."
Ibrahim has two engineering degrees and a PhD in mobile communications and worked for the U.K.'s BT (then British Telecom) as its technical director but left after becoming frustrated with the bureaucracy he found there.
"It was strange, because I'm not supposed to be the business (person), I'm supposed to be the technocrat. And I go work in the big organization. So what do you do when you get fed up working in a large company and the bureaucracy? I said, 'OK, I'm going to be a consultant.'"
He founded technology consultancy MSI in 1989, selling it for around $900 million in 2000, and set up African mobile operator Celtel in 1998. He sold that company for $3.4 billion in 2005.
"I started as an academic, then I became an engineer and a manager, then became (an) unintended businessman or (an) accidental businessman," Ibrahim told "The Brave Ones."
Ibrahim has since started a foundation that aims to improve political leadership and governance in Africa.
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0c62974f4c339bd36bb0993f7f6c9534 | https://www.cnbc.com/2019/04/29/how-chinese-apps-like-tiktok-have-been-catching-on-with-us-consumers.html | How Chinese apps like TikTok are quietly racking up American users | How Chinese apps like TikTok are quietly racking up American users
The Logo of social media app TikTok (also known as Douyin) is displayed on a smartphone on December 14, 2018 in Berlin, Germany.Thomas Trutschel | Photothek | Getty Images
Mobile applications developed by some of China's biggest technology firms have been catching on with U.S. consumers in the past few years, underscoring how companies in the world's second-largest economy are expanding beyond their domestic market and Asia.
In the first quarter of 2019, apps developed by Chinese firms or by companies with large Chinese investors, brought in revenues of $674.8 million in the U.S., according to data compiled by Sensor Tower for CNBC. The mobile app research firm only looked at the top 100 applications by revenue and downloads across Apple's App Store and the Google Play Store. The revenue accounted for 22 percent of the top 100 apps' total sales.
This year's first-quarter haul marks a more than 67 percent year-on-year rise in revenue from the same period in 2018.
Chinese technology firms have managed to expand into America despite the ongoing U.S.-China trade war and negative sentiment toward companies like Huawei from Washington.
Viral hit TikTok was the third-most downloaded app in the U.S. in the first quarter, just behind Facebook Messenger and a game called "Color Bump 3D." TikTok is made by ByteDance, one of the most highly valued private technology firms in China.
While it goes by the name of TikTok in the U.S., the app is known as Douyin in China. Changing names and branding have helped Chinese apps succeed with American users.
"Chinese app publishers are becoming more adept at understanding what resonates with U.S. consumers, whether it be carving out a new niche in social media with apps such as TikTok or capitalizing on hot trends among Western gamers with battle royale titles including PUBG Mobile," Sanders Tran, a data analyst at Sensor Tower, told CNBC.
"They have also greatly expanded their understanding of user acquisition in the U.S. market, which has allowed them to mount much more effective marketing campaigns. They've also backed these up with substantial spending, frequently topping the advertiser charts on Facebook and other mobile app install networks."
"PUBG Mobile," short for "PlayerUnknown's Battlegrounds," is a game developed by Tencent, China's biggest technology firm by market capitalization. Tencent makes the iOS and Android version of the game. South Korean firm Bluehole made the original and other versions of the game for consoles and PC.
Many are using the apps without knowing they are made by a Chinese firm or Chinese-owned company. That is a strategy, according to experts, that Chinese technology firms are intentionally using as they try to expand in the U.S.
"Overall, there is low awareness about the origin of these apps," Hanish Bhatia, senior analyst at Counterpoint Research, told CNBC. "At the same time, it is important for these apps to connect with users in the premium markets. So Chinese tech firms and apps are continuously making efforts to get rid of the Chinese tag. The idea is to position themselves as a global player."
Interestingly, only nine Chinese apps featured in the top 100 apps in the U.S. in the first quarter, down from 14 in the same period last year, according to Sensor Tower. Downloads also fell. However, revenue has risen.
The revenue rise was driven by a number of successful games. Fortnite, which is developed by Epic Games, in which Tencent has a 40 percent stake, was included in Sensor Tower's analysis. It was the seventh-highest earning app in the first quarter.
Other major hits include "Clash of Clans," which is developed by Tencent-owned Supercell, and "PUBG Mobile."
While TikTok has changed branding to appeal to the U.S., Tencent has taken a different approach. Tencent products, such as messaging service WeChat, haven't had much success in the U.S., but the company has managed to get gaming products there through a strategy of acquisitions and investments in other firms.
"Tencent's big push into the West already happened, but they mainly muscled their way into the market indirectly — via acquisitions," Serkan Toto, CEO of games industry consultancy Kantan Games, told CNBC. "So instead of bringing their content to the U.S. and Europe, they rather invest in the crème de la crème locally and maintain a hands-off approach."
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