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37a01980e89cfd7665d1c5e91c8fffcb | https://www.cnbc.com/2018/07/20/a-cure-for-alzheimers-is-on-the-horizon-but-healthcare-systems-aren.html | Top Alzheimer’s researchers hope that near-100 dementia drugs in trials are moving closer to a breakthrough | Top Alzheimer’s researchers hope that near-100 dementia drugs in trials are moving closer to a breakthrough
The search for an Alzheimer’s disease cure has been dogged by pharmaceutical failures, but a network of the world’s top dementia scientists released a report on Sunday saying that the number of drugs making it to phase two and phase three of clinical trials encourages them to believe that a blockbuster may be among compounds in the current development pipeline.
“The topline is the numbers,” said UsAgainstAlzheimer's acting president Drew Holzapfel. “Almost 100 drugs are in the final stages of drug development. ... Despite so much national news about failures this year."
Dr. Jeff Cummings of the Lou Ruvo Center for Brain Health in Las Vegas and a founding member of Researchers Against Alzheimer's has spent years studying the disease. His annual report on Alzheimer's drug trials highlights the long history of failures, but he remains confident drug breakthroughs will ultimately be discovered.Cleveland Clinic Center for Medical Art and Photography
The number of drugs in phase two clinical trials has increased 17 percent over the past year, from 58 to 68 drugs, according to the report from nonprofit UsAgainstAlzheimer’s and its affiliate of top scientists, ResearchersAgainstAlzheimer's. The group forecasts eight of those drugs could make it to the market over the next five years.
While the researchers focused on the positives, the report's overall findings don't represent a massive change in Alzheimer's drug landscape. The eight drugs in phase two trials that could come to market is consistent with 2017 report's forecast for potential market entrants. And the twenty-five Alzheimer’s drugs in phase three testing that are predicted to launch in the next five years represents a 7 percent decline from the 2017 level, according to the report. The overall number of phase three drugs declined by three percent year over year.
Holzapfel said that while the number of drugs in phase three declined, the small level of the decline is encouraging. Given the number of failures in the recent past he reads it is a positive that those running trials are not pulling back more significantly. And the increase in the phase two trials also indicates the potential for a larger phase three pipeline in the near future.
The most disappointing number that has defined the search for an Alzheimer's cure is 99.6 percent. That is the failure rate for drugs that have been in past development pipelines and has been highlighted in an annual report from Jeff Cummings, director of the Cleveland Clinic Lou Ruvo Center for Brain Health, and a founding member of ResearchersAgainstAlzheimer's. There were over 100 phase two and phase three clinical trials in 2017, according to Cummings report. It has been 14 years since the last drug was approved to treat Alzheimer's, and that drug treated symptoms but did not attack the evolution of the disease.
Often times we talked about trials as failed trials. They’re not failed trials, they’re advancing our knowledge of the science. We are learning from past trials and learning how to attack the disease.Drew Holzapfel, acting president, UsAgainstAlzheimer's
At least one recent trial has increased hopes for progress in Alzheimer's drug development. Biogen reported a Alzheimer's drug breakthrough in early July with positive clinical trial results for BAN2401, the first anti-amyloid drug to achieve statistically significant results at a later stage of Alzheimer's, 18 months. Still, Biogen’s drug is far from coming to market, with a phase three trial not expected until late 2019 or 2020. And Biogen officials stressed that the results showed the drug could slow the cognitive decline associated with Alzheimer's, but it did not stop the decline or reverse it.
VIDEO1:5501:55I'm cautiously optimistic about this Alzheimer's trial: SpecialistModern Medicine
Alzheimer’s drug research has been criticized for a narrow focus on the protein beta amyloid, including Biogen’s BAN2401, but Holzapfel says progress is being made targeting other Alzheimer's treatments. There was a 20 percent increase in the number of symptomatic drugs in phase three. Symptomatic treatments can make patients feel better, but they are often temporary and reversible. They do not change the evolution of a disease, such as disease-modifying agents, which is the intention of amyloid drugs. Researchers also note that more trials are focusing on another protein, tau. Among phase two drugs, 11 are targeting the tau protein, a 57 percent increase from a year ago. The number of drugs targeting amyloid is still higher, at 12, but increased less (20 percent).
Holzapfel said that because Alzheimer’s is a multi-factor disease, the most effective treatments will require a cocktail of drugs rather than a single breakthrough.
The new report from Alzheimer's researchers includes a concern that the long history of failures with dementia drugs has left health-care systems unprepared for a potential breakthrough. The report said that health-care systems are not keeping pace with the science and are risking a situation where those living with Alzheimer’s disease are unable to access an identified cure.
“The lack of new products in the market has led the health-care systems to be complacent in this area,” Holzapfel said. “Many places don’t feel like there are good treatments, so as a result they delay helping patients and families prepare for the progression.”
Holzpafel previously worked for Pfizer, which announced early in 2018 it was ending its neurological drug research efforts, which critics of the search for an Alzheimer's drug said supported their view that a cure remains far away.
There is still a lack of proper diagnoses being made for many patients, and a shortage of diagnostic and imaging equipment. There also needs to be an improvement in access to specialists. The waiting time to reach a neurologist can be so long it deters those seeking help, Holzapfel said. As a result, health-care systems also need to increase primary care provider training so they can step in and perform some of the functions of specialists. In the long-term, there also must be a focus on increasing interest in Alzheimer’s study across the medical industry.
Clinical trials also require better infrastructure. The Global Alzheimer’s Platform (GAP) has found a “crippling shortage of clinical trial sites capable of performing pending clinical trials,” which could cause years of delays. There are 200 qualified Alzheimer’s trial sites in North America, but the volume needed would require 500 trial sites, according to Holzapfel, who is also a board member of GAP. The sites required are exceeding current capacity by 230 percent.
Holzapfel is pushing for more funding for health-care systems and clinical trials, despite the history of failures: “Often times we talked about trials as failed trials. They’re not failed trials, they’re advancing our knowledge of the science. We are learning from past trials and learning how to attack the disease.”
He said the "constant drumbeat of failure" also harms clinical trials by making individuals less open to taking part in them, because they associate the search for an Alzheimer's drug with failure. Increasing the number of individuals in trials has been repeatedly cited by top researchers as one of the keys to finding successful drugs.
It is not only the scientists associated with Sunday's report who remain optimistic. Earlier this year, the annual Brain Prize worth €1 million was awarded to researchers focused on amyloid targeting. They said the reason the Alzheimer's drug effort has failed so far is that drugs are delivered at a stage when the disease has already progressed too far. In comments to the press they expressed confidence about finding a successful drug within five years and Alzheimer's will disappear as a major problem for society within a decade.
More from Modern Medicine:Diabetes defeated by diet: New fresh-food prescriptions are beating pricey drugs
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e6b5f93f765ade8c5db566ae6f2bf9f7 | https://www.cnbc.com/2018/07/20/this-robot-will-draw-and-erase-anything-on-your-walls.html | This robot will draw and erase anything on your walls | This robot will draw and erase anything on your walls
Scribit is a drawing robot that can turn your walls into a work of art. The little bot raised over $1.6 million on Kickstarter, crushing the company's $50,000 goal in just two hours. Scribit uses four erasable markers to draw images up to a 6.5 ft x 6.5 ft on your wall. Images are uploaded from a user's phone to the robot and automatically starts drawing. It's held to the wall with just two nails and guide wires that move it along the wall. The company says the $450 device is slated to ship by the end of the year.
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2b2953a2108a9fe5a1e9d2cd682462b0 | https://www.cnbc.com/2018/07/20/trump-hits-the-fed-again-in-tweet-tightening-now-hurts-all-that-we-h.html | Trump hits the Fed again in tweet: 'Tightening now hurts all that we have done' | Trump hits the Fed again in tweet: 'Tightening now hurts all that we have done'
VIDEO2:0502:05Trump’s comments on the Fed were a big deal. Here’s whyNews Videos
President Donald Trump criticized the Federal Reserve's monetary policy again.
Tweet Link
"The United States should not be penalized because we are doing so well. Tightening now hurts all that we have done. The U.S. should be allowed to recapture what was lost due to illegal currency manipulation and BAD Trade Deals. Debt coming due & we are raising rates - Really?" Trump said Friday on social media.
Trump's latest comments come a day after his initial critical remarks about the Fed were revealed Thursday on CNBC. In a stinging and historically rare rebuke, Trump policy in the exclusive interview.
“I’m not thrilled,” he told CNBC's Joe Kernen in the interview that aired in full Friday. “Because we go up and every time you go up they want to raise rates again. I don't really — I am not happy about it. But at the same time I’m letting them do what they feel is best.”
VIDEO15:5215:52Watch CNBC's full exclusive interview with President TrumpSquawk Box
Fed officials, including Chairman , have raised interest rates twice this year and have pointed to two more before the end of 2018. The Fed did not comment on the president's remarks Thursday.
After Trump’s criticism of the central bank aired on Thursday, the White House sent a statement to clarify the president’s remarks.
"Of course the President respects the independence of the Fed. As he said he considers the Federal Reserve Board Chair Jerome Powell a very good man and that he is not interfering with Fed policy decisions," the statement said. “The President’s views on interest rates are well known and his comments today are a reiteration of those long held positions, and public comments."
But then Trump hit the Fed again on Friday in the tweet.
The U.S. dollar fell and stock futures declined slightly as the president doubled down on his criticism of the central bank.
Earlier in his series of tweets, Trump also said multiple nations are manipulating currencies to the detriment of the U.S.
Tweet Link
"China, the European Union and others have been manipulating their currencies and interest rates lower, while the U.S. is raising rates while the dollars gets stronger and stronger with each passing day - taking away our big competitive edge. As usual, not a level playing field...," he said on Twitter.
— CNBC's Jeff Cox contributed to this report.
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b345a257c9644e5a791cca80f219967d | https://www.cnbc.com/2018/07/23/att-earnings-q2-2018.html | AT&T falls after missing on revenue in first results since Time Warner deal close | AT&T falls after missing on revenue in first results since Time Warner deal close
VIDEO0:5900:59AT&T reports Q2 revenue missClosing Bell
AT&T shares fell more than 2 percent, before paring some of those losses, after the telecom company reported mixed second quarter earnings and revenue.
Here’s how the company did compared with what Wall Street expected:
Earnings: 91 cents per share vs. 85 cents per share expected by analysts surveyed by Thomson ReutersRevenue: $38.99 billion vs. $39.39 billion expected in the Thomson Reuters surveyPostpaid subscriber net additions were 73,000 in the U.S.Linear video subscribers declined 262,000 in the quarter, while AT&T added 342,000 subscribers to its streaming service DirecTV NOW.
Taking into account new assets from the Time Warner acquisition, AT&T raised its full year earnings guidance to the "high end of $3.50 range" versus the $3.40 analysts had estimated.
Despite that AT&T's earnings and full year guidance raise, analysts remained unimpressed. Jonathan Chaplin of New Street Research said the numbers impressed because expectations were low going in.
"There's not one piece of this business that you can look at and say it's doing really well," Chaplin said on CNBC's "Closing Bell."
AT&T has been losing subscribers to its traditional television packages as more consumers cut the cord and opt for cheaper streaming services. Subscriber growth for its DirecTV Now streaming service has continued to help offset declines in satellite subscribers and legacy service revenues. In wireless, both AT&T and Verizon have been losing shares of postpaid subscribers, or customers who pay a monthly bill, to cheaper rivals.
This quarter marks the first financial report since a district judge approved AT&T's highly contested $85.4 billion acquisition of Time Warner in June. The companies moved quickly to close the deal and begin combining operations but the Justice Department appealed the court's decision, to the surprise of AT&T executives, who expressed their commitment to defending the court's decision and the landmark merger.
AT&T included WarnerMedia, formerly Time Warner, as a separate segment on its second quarter earnings report, noting it contributed revenues of $1.3 billion and operating expenses of $824 million in the 16-day period ending June 30. WarnerMedia includes cable channels, such as CNN and HBO and Warner Bros. film studio.
“We’ve now assembled the key elements of a modern media company. And it all begins with owning a wide array of premium content, because we are absolutely convinced that there is nothing that drives customer engagement like high quality premium content," CEO Randall Stephenson said on a call with investors.
On the call, Stephenson and fellow executives discussed their strategic vision for combining AT&T and Time Warner, a process that began immediately following the deal's closure.
HBO devotees panicked over the fate of their beloved network after the New York Times published some quotes from John Stankey, CEO of AT&T's new WarnerMedia division, from an internal town hall meeting. The quotes suggested the new executive was looking to make HBO more like Netflix in terms of the variety and scope of its content, but on the call, Stankey argued the story didn't "effectively characterize what we are about."
"We have a tremendous amount of great projects already in the funnel that, as the HBO team and Richard would describe it, they have not been in the position to say 'yes' to because of constraints on certain resources. What we are attempting to do is open up those constraints on very high, top quality projects that we think will balance out the schedule so we have a more engaging experience with HBO throughout the course of the year," Stankey said on a call with investors.
Stankey would not reveal exactly how much AT&T would invest into HBO for those purposes, but said the company looks forward to investing some of the efficiencies generated by the merger into direct to consumer products and premium programming.
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79b9b6ce011d4268285534b7b668a5c4 | https://www.cnbc.com/2018/07/23/cant-afford-a-bigger-home-try-renting-out-the-one-you-have.html | Can’t afford a bigger home? Try renting out the one you have | Can’t afford a bigger home? Try renting out the one you have
Chamberlain’s Capitol Hill home that they will soon rent out.Photo: Steve Washington
Today’s housing market is so competitive and pricey that even those homeowners who might want to move up to a larger home are staying put. They either can’t find or can’t afford what they want. A new strategy, however, is becoming increasingly popular — in order to afford that new home, keep the old one.
The number of investor-owned properties continues to rise, but the "investors" are not all big companies or landlords with multiple properties. More and more, they are just current owners using today’s very lucrative rental rates to pay for a bigger home.
Liz and Kevin Chamberlain, both in their mid-30s, needed more space than their Washington, D.C., home could offer, after the birth of their first child. They thought about renovating, but the cost to expand was incredibly high, and the footprint of their Capitol Hill row house was limited anyway. Their neighborhood, however, is commanding very high rents.
“We ran the numbers. I literally made a spreadsheet and ran all the different options,” said Liz, who purchased the Capitol Hill home several years ago, before she was married. “It made the most financial sense for us to keep our house in D.C., rent it out and buy here.”
VIDEO1:2401:24Housing supply crisis worsensPower Lunch
Liz and Kevin bought a larger home with a big yard just outside D.C. in Cheverly, Maryland. She says many of their friends are doing the same thing as their families expand.
“It was great for us because we were going to be happier here in a bigger space,” she added.
Liz and Kevin had already saved money for a potential renovation, so they just used that for the down payment on the second home, and lenders today are becoming increasingly flexible with investment home mortgages. They have to be, because higher interest rates have left them with much less refinancing business. They need to make that up somewhere.
“They're looking at the possibility of making more loans,” said Lawrence Yun, chief economist at the National Association of Realtors. “Several years ago, during the depths of the housing crisis, they would have been extremely strict, but now they are looking at the rental income as a mitigating factor for carrying two mortgages.”
Some Realtors are actually recommending the strategy to their clients, as the housing market becomes increasingly competitive and more and more potential move-up buyers feel priced out.
Not only do homeowners like Liz and Kevin get the rental income to help cover both mortgages, they will also continue to see price appreciation on their old home, which they would have lost had they sold it. Demand for rental homes is so strong in their neighborhood, and in most urban areas today, that they were not at all concerned with finding a renter.
The median price of a home sold in June hit another new high, according to the National Association of Realtors, and the supply of listings available continues to hover near record lows. Demand for housing, both owned and rented, is extremely high, given the improvement in the economy and the job market. That means both rents and home values are unlikely to falter.
Millennials, the largest generation, are finally forming households at an ever-increasing rate, moving out of their parents’ basements or out of shared living situations. Because they were delayed by the recession, many looking for single-family homes are older and married, but there are precious few starter homes for sale. Single-family rentals are therefore a hot commodity.
Of course, for current homeowners, becoming a landlord does add both liability, risk and potential headaches. Some may opt to use a rental company to handle the management of the property, including collecting rent and doing repairs, but that cuts into monthly profits.
“Certainly having an umbrella policy is a really good idea to make sure you're covered insurance-wise," advised Liz. “And then I do think living in the house, and really knowing it and making sure it's in good shape before you leave and rent it out, is probably one of the best things you can do.”
VIDEO1:2301:23Existing home sales down 0.6% in JuneSquawk on the Street
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f31cfdae908789ef71710b0d62bb78de | https://www.cnbc.com/2018/07/23/how-china-can-use-iran-oil-sanctions-to-gain-concessions-in-trade-war.html | China keeps buying Iranian oil, and the trade war adds a reason to defy US sanctions | China keeps buying Iranian oil, and the trade war adds a reason to defy US sanctions
A gas flare on an oil production platform in the Soroush oil fields is seen alongside an Iranian flag in the Gulf.Raheb Homavandi | Reuters
Since President Donald Trump withdrew the United States from the Iran nuclear deal in May, Iran has been pleading with other nations to keep its oil-dependent economy alive. The need for economic ties to the rest of the world increased when the Trump administration announced planned sanctions on Iranian oil exports starting in November. For Iran one nation matters more than any other to its oil economy, and it is also Trump's largest global trade rival: China.
European companies have been winding down their purchases of Iranian oil, and the threat of sanctions on Iranian business has pushed out banks, many of which had paid severe fines for sanction violations in the past. But China, already the biggest buyer of Iranian oil, is not expected to heed U.S. demands. In fact, the Iranian oil sanctions could give China leverage in stalled trade negotiations with the United States.
“Now that the trade relationship is in jeopardy, why would they do that?” Derek Scissors, resident scholar of the American Enterprise Institute, said of China's pulling back on purchases of Iranian oil. “If we tell the Chinese, ‘Oh, we’ll cancel our pending tariffs as long as you stick to the Iran sanctions,’ they’ll do it in a second.”
On Monday a war of words between the United States and Iran erupted, with Trump and his top national security advisor John Bolton threatening Iran. The harsh White House words apparently came in response to recent suggestions from Iran that it could close the Strait of Hormuz, a critical seaway for global oil shipments. The U.S. Energy Information Administration states that by volume of oil transit, the strait is the busiest global choke point for oil. In 2016, data from the EIA showed total flows through the channel reached a record high of 18.5 million barrels a day. China, Japan, India, South Korea and Singapore are the largest destinations for oil moving through the strait.
On Tuesday Iran’s foreign ministry reportedly said it would implement countermeasures against the United States if it tries to block its oil exports. "If America wants to take a serious step in this direction, it will definitely be met with a reaction and equal countermeasures from Iran," Foreign Ministry spokesman Bahram Qassemi was quoted as saying.
OPEC's largest oil producers
Country Production Level (June 18, tb/d) Saudi Arabia10,420Iraq4,533Iran3,799UAE2,897Kuwait2731
China, the world’s top crude-oil buyer, imported around 718,000 barrels a day on average from Iran between January and May of this year, according to official Chinese customs data — equivalent to more than a quarter of Iran’s oil exports. China’s increased its imports of Iranian oil by 9.3 percent during the same time period from the year prior and is not expected to slow down purchases anytime soon. The United States expects that China will buy even more oil once the U.S. sanctions take place in early November, as reported recently by The Wall Street Journal.
In refusing to comply with U.S. sanctions, the world’s second-largest economy will dull the sanctions’ fiscal impact, but China’s current position on Iranian oil sanctions is consistent with its historical approach.
“The Chinese position in general has been that they will honor U.N. sanctions and they are reluctant to recede to bilateral sanctions,” said senior fellow David Dollar of The John L. Thornton China Center at the Brookings Institution. Dollar said the Chinese have been averse to U.S. sanctions — bilateral and unilateral — in the past, usually choosing their own business interests over cooperation.
However, under the Obama administration, the United States successfully negotiated with China to reduce their investments in Iranian oil, following bilateral sanctions. Dollar suggests that during that time period, China valued mutual interests with the United States, including climate change, security concerns and the two nations' strong economic ties. Conversely, Trump withdrew the United States from the Paris Climate Agreement and has strained economic ties between the two countries with the imposition of $34 billion tariffs on Chinese exports to the United States. More recently, Trump has threatened to impose sanctions on all of China's exports to the United States. Experts say these moves have weakened the U.S. position when it comes to any Chinese collaboration on Iranian oil sanctions.
The evolving trade war has taken a toll on China’s stock market this year. Among the 32 exchange-traded funds that track broad China equities indexes and specific sectors of the emerging economy, only three have generated positive performance this year, including an energy ETF, a health-care ETF and an ETF that tracks Chinese stocks listed in the United States.
It’s a bit of an uphill fight to get China to abide by U.S. sanctions, but not impossible. In this current situation, it’s hard to see the U.S. getting China to cooperate. If I were the Chinese, I would bring in these trade issues. It’s not in China’s narrow economic interest to stop buying oil from Iran.David Dollarsenior fellow, John L. Thornton China Center at the Brookings Institution
The nuclear deal had lifted economic restrictions on Iran, allowing its oil industry to rebound. Iran is the third-largest producer in the 15-member OPEC group. In June 2018 it produced 3.8 million barrels of oil a day, OPEC data shows.
“Under any circumstances, it’s a bit of an uphill fight to get China to abide by U.S. sanctions, but not impossible. In this current situation, it’s hard to see the U.S. getting China to cooperate,” Dollar said. “If I were the Chinese, I would bring in these trade issues,” he added. “It’s not in China’s narrow economic interest to stop buying oil from Iran.”
VIDEO5:0405:04We are threatening economic war on Iran, says Rapidan Energy presidentPower Lunch
Speaking to the House Financial Services Committee on July 12, U.S. Treasury Secretary Steven Mnuchin claimed that the Trump administration has the “intent to enforce sanctions on Iran-related oil against everybody, including China.”
At a press conference last Monday, Secretary of State Mike Pompeo announced that he has held personal discussions with top officials from many of those countries, including China, to ensure that the U.S. economic sanctions work. "They have a commitment; they understand where we're headed," Pompeo said of countries that the Trump administration has asked to cut off economic ties with Iran. "What they've asked us to do is review how we get there and the timeline for that."
But recent history shows that Beijing intends to intensify its trade relationship with Tehran, not lessen it.
Shortly after the Trump administration announced that it would reinstate sanctions, Iran’s Foreign Minister Javad Zarif met with foreign leaders for support. His first visit was to Beijing. Following the visit, the Chinese state-run news agency Xinhua announced the launch of a new rail connection between Bayannur, in China’s Inner Mongolian Autonomous Region, and Iran. The new train line will expedite travel times by 20 days in comparison to cargo shipments, as a part of Beijing’s $124 billion Belt and Road initiative, according to the Xinhua’s announcement. The broader initiative aims to build new infrastructure between China and Europe, financing billions of dollars' worth of Chinese-led projects in Iran to build railways, highways, ports and power plants, greatly expanding trade.
Last week, when asked if China would cooperate with U.S. sanctions, Foreign Ministry spokesman Lu Kang told reporters, “China is always opposed to unilateral sanctions and long-arm jurisdiction.”
Analysts predict that the oil market will become increasingly unpredictable over the next several months. In recent trading, oil prices have seesawed as the potential impact of a trade war on global demand, and Iranian sanctions on supply have created a short-term stalemate. “The market will struggle for the next two months until the drop in Iranian exports materializes,” analysts at Energy Aspects said in a research note published Monday.
Last Wednesday, White House National Economic Council Director Larry Kudlow said that while talks to strike a deal with Chinese officials have been positive, President Xi refuses to compromise over Beijing’s trade policies.
“I don’t think President Xi at the moment has any intention of following through on the discussion we made, and I think the president is so dissatisfied with China on these so-called talks that he is keeping the pressure on — and I support that,” Kudlow said in an interview at CNBC's Delivering Alpha conference in New York.
China’s foreign ministry spokesperson, Hua Chunying, hit back during a scheduled briefing in Beijing last Thursday, saying, "The relevant United States official unexpectedly distorted the facts and made bogus accusations [that are] shocking and beyond imagination.” She added, “The United States' flip-flopping and promise-breaking is recognized globally."
VIDEO4:4004:40Oil prices and what drives themDigital Original
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787a8ad5e75ffc4100dae4688a691a2c | https://www.cnbc.com/2018/07/23/this-surprise-risk-could-sink-your-home--and-your-finances.html | Overlooking this risk in your home could cost you nearly $10,000 | Overlooking this risk in your home could cost you nearly $10,000
Henrik Sorensen | Getty Images
A $10,000 threat to your wallet is hiding in your home, and you’re probably doing nothing to address it.
A recent survey from Chubb found that 90 percent of homeowners believe they are “vigilant” or do an “okay” job of protecting their abodes.
The property-casualty insurer polled 1,204 people in May.
Nearly 64 percent of the participants have failed to update their home protection strategies in the last year.
This could be because owners are more concerned about fires, burglaries and other crises, and don’t realize they can fall victim to things like water damage, said Annmarie Camp, executive vice president at Chubb Personal Risk Services.
“Most people think, ‘Oh that won't happen to me,'" she said. "You’re far more likely to have some sort of water loss to your home."
In fact, water damage is one of the most common property damage-related claims, according to Chubb’s report.
Here’s how homeowners are falling short when it comes to preventing water-related losses.
PM Images | Iconica | Getty Images
Two out of 10 survey participants said they install pipe insulation, while less than half check their appliance hoses.
And just 40 percent of the homeowners do any water heater maintenance.
Awareness against damage is the best protection, Camp said. Talk with an independent insurance agent who can recommend the best coverage for your specific needs.
Between 2012 and 2016, the average homeowner’s claim for water damage was nearly $10,000, according to the Insurance Information Institute. See the chart below for more details.
Internal water damage can be devastating, said Camp.
The standard homeowner’s insurance policy covers damage related to an accidental overflow of water or steam from plumbing, heating and air conditioning, as well as frozen pipes.
Meanwhile, your homeowner’s insurance will generally exclude damages that stem from a flood. You would need a separate policy for that.
Even if you don’t live in a flood zone, primary flood coverage is a key, but often overlooked coverage to ask about.
Mike Kemp | Getty Images
A few simple steps will help protect your home from water damage.
The first step is learning where your main water valve is, so that you don’t waste time trying to find it if there’s an emergency.
“The number one tip we would give is before you go on vacation, turn off the main water valve to your home,” said Camp of Chubb. “Water damage becomes so much worse when you aren’t there for days.”
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Regular home inspection checks can also prove useful, she added.
Do your own checks seasonally, and consider an annual safety check with a plumber.
Basic maintenance is essential to avoiding a loss, so don’t overlook the small things — such as overgrown trees, clogged gutters or a pipe that keeps leaving a puddle.
“That problem is not going to go away — it’s likely to get worse,” said Camp. “Water will destroy your property, and that means it is very disruptive to your life.”
Investing in technology such as water leak detection devices could save you money in more ways than one.
Your homeowner policies and insurance plans could also be discounted, if companies see that you’re taking steps to protect your home, Camp said.
Be sure to inspect your air conditioning unit and roof for leaks and to prevent serious damage.
“It’s really about the core foundations,” Camp said.
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14f74e3386bc1a17cfd3a5bd69c14712 | https://www.cnbc.com/2018/07/23/three-experts-predict-next-financial-crisis.html | Three investors who manage more than $900 billion combined discuss the next financial crisis | Three investors who manage more than $900 billion combined discuss the next financial crisis
It's been a decade since the last financial crisis. We asked three market experts, that manage more than $900 billion in combined assets, for their outlook on what will cause the next one and when we could expect it.
Here’s what they said:
Suni Harford, head of investments at UBS Asset Management
"I am not worried at all about an [imminent] financial crisis," Harford said. "This is a benign, very strong economic environment, and while it will be maybe more volatile than we're used to over the past decade, I think we're in very good shape."
President, UBS Asset Management
When the next financial crisis does come, Harford says she thinks it'll be one of territorialism, nationalism and some of the issues that will fall out of today's politics.
"The fines that are coming out across the world for individuals are making it more and more difficult for companies to act and invest globally, which makes it that much harder for the world to invest when capital flows are constrained," Harford said. "I have to be nervous about what that could do for a financial crisis situation."
David Villa, chief investment officer of Wisconsin State Investment Board
"I think the next financial crisis is several years into the future," Villa said. "And I think it's going to be triggered by the three classic events: interest rates will peak, the economy will slow down and then defaults will peak."
David Villa, chief investment officer of State of Wisconsin Investment Board Victor J. Blue | Bloomberg | Getty Images
Villa said the threat of a financial crisis isn't looming just yet, because credit excesses are still within reasonable ranges. They're "not flashing concerns for what we call a train wreck," Villa said.
Marc Levine, chairman of Illinois State Board of Investment
"During my career, there was a modest recession in the 90s that was based off of silly commercial real estate lending, and then we saw the big bubbles in the late 90s with dotcom and crazy valuations of tech stocks and of course the mortgage crisis," Levine said. "I have to tell you, I just don't see these large, fundamental excesses [today]."
Marc Levine, chairman of the Illinois State Board of Investment Christopher Goodney | Bloomberg | Getty Images
That's not to say he doesn't have concerns.
"I see some things that I don't love, like high yield and emerging market debt," Levine said. "But again, those are really modest and they're not going to create these massive, massive problems like those mortgages and mortgage derivatives that completely polluted the global banking system and created a crisis that we're kind of still living through the waves today."
WATCH ALSO: Leon Cooperman reveals what makes a company a good investment
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5866c57742fec2651974d199fbb53f86 | https://www.cnbc.com/2018/07/23/us-stock-index-futures-political-turmoil-bubbles-away-earnings-loom.html?utm_source=wnd&utm_medium=wnd&utm_campaign=syndicated | Tech stocks rise to record before big earnings | Tech stocks rise to record before big earnings
VIDEO2:3102:31Cashin: Traders focused on tariffs, trade & GDP
Technology shares rose to an all-time high on Monday as Wall Street awaited the latest quarterly results from some of the largest companies in the sector.
The S&P 500 tech sector climbed 0.5 percent to close at a record, helping lift the overall index by 0.2 percent to 2,806.98. Tech's gains also pushed the Nasdaq Composite higher by 0.3 percent to 7,841.87.
Google-parent Alphabet reported better-than expected earnings after the bell, while Facebook and Amazon are scheduled to release their results later this week. Technology shares have been the best performers of 2018, rising 15.4 percent through Friday’s close.
Alphabet shares rose more than 4 percent after hours and 1.1 percent before the close.Facebook closed 0.6 percent higher during the cash session, while Amazon shares declined nearly 0.7 percent.
The Dow Jones Industrial Average closed 13.83 percent lower at 25,044.29, however, amid lingering concerns outside of tech.
So far, more than 17 percent of S&P 500 companies have reported earnings for the previous quarter, with 82 percent of those companies topping analyst expectations, according to FactSet data. Wall Street has high hopes for this earnings season, with analysts expecting year-over-year growth of 20 percent.
“It’s early days for Q2 earnings season, but so far this is looking to be a very good reporting cycle,” Nicholas Colas, co-founder of DataTrek Research, said in a note Monday. "Here’s the strange bit, however: analysts are not yet raising their Q3 earnings estimates. In fact, they are marginally lower than at the end of June.”
“This is not what we expected to see, given the magnitude of the beats so far for Q2. Our explanation (for now) it that the revisions will come as more companies report and analysts assimilate all that data into future earnings expectations,” Colas said.
Drew Angerer | Getty Images News | Getty Images
Hasbro reported better-than-expected earnings Monday before the bell, sending its shares higher by more than 12 percent. Halliburton posted an in-line quarterly profit, but its stock fell more than 8 percent.
"Ongoing earnings growth should support equities, but expect fallout for companies missing forecasts," said Jason Pride, chief investment officer at Glenmede.
Wall Street also looked ahead to the release of second-quarter GDP data. The data, which are scheduled for release on Friday, are expected to show U.S. economic growth of 4.1 percent, according to a Reuters estimate.
Last week, National Economic Council Director Larry Kudlow said economic growth could top 4 percent for “a quarter or two.” Kudlow added: "That's all for the good. Literally millions more people are working."
Meanwhile, concerns over global trade kept simmering.
At a G-20 meeting in Argentina over the weekend, finance leaders from the world’s biggest economies called for more dialogue to help prevent geopolitical and trade tensions from negatively impacting global economic growth.
The meeting took place after President Donald Trump told CNBC's Joe Kernen last week he is ready to slap tariffs on all $505 billion of Chinese goods imported to the United States. The U.S. has already implemented tariffs on $34 billion of Chinese imports, as well as charges on steel and aluminum imports from other countries.
Trade fears have kept stock gains in check recently. Since June, the S&P 500 has traded in a 4.6 percent range through Friday's close.
Trump also commented on the Federal Reserve last week, saying he was “not thrilled” about rising interest rates, and expressed concern that the U.S. central bank could upset the economic recovery. The Fed has raised rates twice this year and expects to hike two more times before year-end.
Bank shares rose sharply, with the SPDR S&P Bank ETF (KBE) jumping 1.3 percent. Bank of America and J.P. Morgan Chase rose 2.1 percent and 1.9 percent, respectively. Citigroup, Morgan Stanley and Goldman Sachs all rose at least all rose at least 0.9 percent. The banks got a boost from higher interest rates as the benchmark 10-year Treasury yield traded at 2.95 percent.
Shares of Fiat Chrysler fell more than 1.5 percent after Sergio Marchionne stepped down from his post as CEO due to health reasons. Mike Manley, who runs the company’s Jeep division, will take over for Marchionne.
Tesla’s stock 3.3 percent after the Wall Street Journal reported the company is asking some suppliers to refund part of previous payments.
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0a648d196fc7760e6652d0fb2398f4de | https://www.cnbc.com/2018/07/23/what-it-takes-to-be-in-the-top-1-percent-of-your-state.html?__source=newsletter%7Ceveningbrief | What it takes to be in the top 1 percent of your state | What it takes to be in the top 1 percent of your state
Stocks that pay dividends have, over long periods, outperformed stocks that do not.GlobalStock | Getty Images
When it comes to income inequality, even the top 1 percent of earners in the U.S. stack up unevenly, according to a new report by the Economic Policy Institute.
It costs the least in Mississippi, $254,362, to crack the top 1 percent of earners in the state, the think tank found after analyzing annual incomes by state reported in the 2015 U.S. Census. They would need to make almost three times that amount to break into the 1 percent club in Connecticut where top earners make at least $700,800.
The discrepancy when comparing average incomes is even worse with Connecticut's wealthiest 1 percent making an average of more than $2.5 million a year and Mississippi's richest families at $580,461.
The top 1 percent of households in some less fortunate states, in fact, wouldn't even make the cut for the top 5 percent in others.
The nation's highest earners also are increasingly concentrated in a handful of states: California, New York, Texas, Florida and Illinois.
They are also the most unequal. New York was the most unequal state in the nation, when measured by average income, with the top 1 percent averaging about $2.2 million in annual earnings, about 44 times the average income of $49,617 for the other 99 percent.
Florida was the second most unequal, with the richest making an average of $1.5 million, or 40 times, the rest of the Sunshine State at $39,094. Connecticut ranked third with a ratio of 37.
The closest income gap was in Alaska where the top 1 percent earned an average of $910,059, or 12.7 times the average of $71,876 for every other household.
The national minimum for top earners is $421,926, the data show.
The variances are even greater at a community level, as the rich increasingly flock to wealth clusters with like-minded and like-moneyed millionaires and billionaires.
“The dollar amounts of the top 1 percent threshold can vary sharply from one locale to another,” the report said. “A community in which the threshold is less than $100,000 clearly looks different from a community with a threshold greater than $2 million—it means something very different to be in the top 1 percent in Liberty County, Georgia, versus Teton County, Wyoming.”
Here are the minimum household income needed to crack the top 1 percent in each state and the District of Columbia:
Connecticut: $700,800District of Columbia: $598,155New Jersey: $588,575Massachusetts: $582,774New York: $550,174California: $514,694Colorado: $458,576Illinois: $456,377Washington: $451,395Maryland: $445,783North Dakota: $445,415Minnesota: $443,118Texas: $440,758Virginia: $425,144Florida: $417,587South Dakota: $407,406Wyoming: $405,596New Hampshire: $405,286Alaska: $400,017Pennsylvania: $388,593Kansas: $375,344Utah: $374,467Georgia: $371,811Nebraska: $363,310Oregon: $358,937Wisconsin: $349,905Rhode Island: $346,657North Carolina: $343,066Nevada: $341,335Delaware: $340,770Ohio: $334,979Oklahoma: $333,139Tennessee: $332,913Iowa: $331,572Arizona: $331,074Michigan: $328,649Missouri: $326,839Vermont: $321,969Montana: $321,849South Carolina: $318,463Louisiana: $318,393Indiana: $316,756Idaho: $314,53Hawaii: $310,5662Maine: $303,897Alabama: $297,564Kentucky: $274,818West Virginia: $258,078New Mexico: $255,429Arkansas: $255,050Mississippi: $254,362
Source: Economic Policy Institute
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b3b3994c1220d2951dce66a07c077edb | https://www.cnbc.com/2018/07/24/a-storm-is-brewing-in-the-us-economy-says-economist-diane-swonk.html?recirc=taboolainternal | ‘A storm is brewing’ in the US economy, says economist Diane Swonk | ‘A storm is brewing’ in the US economy, says economist Diane Swonk
VIDEO3:4703:47Experts debate impact of the 'perfect storm' of rates, dollar and tariffsClosing Bell
Even if there isn’t a full-blown trade war, the uncertainty surrounding tariffs can hurt the U.S. economy, economist Diane Swonk told CNBC on Tuesday.
The tariffs, along with a strengthening dollar and rising rates, all undermine the competitiveness of manufacturers and other exporters, she said in an interview with “Closing Bell.”
“The U.S. economy has a bit of a cushion, and we can weather the storm for a bit. But the storm is still brewing and the undercurrents are clearly forming,” said Swonk, chief economist at Grant Thornton.
Trade tensions have been rising between the U.S. and the rest of the world.
China has been President Donald Trump’s frequent target. Last week, the president told CNBC he is “ready” to put tariffs on all $505 billion of Chinese goods imported to the United States.
Washington has already slapped tariffs on $34 billion of Chinese products. Beijing hit back with retaliatory tariffs on the same amount of U.S. goods.
The Trump administration has also placed tariffs on steel and aluminum imports from several nations, including key allies such as Canada, Mexico and the European Union.
Swonk said while the tariffs implemented so far are not that big, the threat of tariffs undermines confidence.
“If we were to have a full-out trade war tomorrow, which I don’t think we’re going to have, then you could see a recession in 2019 and that would be fairly substantial,” she said.
“If we are to continue to have this uncertainty then you have over time a corrosive effect that builds up in 2019 with less investment,” she added.
In fact, Swonk believes Brexit provides a cautionary tale.
While the U.K. has yet to officially break from the European Union, the threat alone over the last two years has produced higher inflation, slower growth and reduced investment and confidence, she said.
When it comes to the stock market, Venu Krishna, deputy head of U.S. equity research at Barclays, expects tariffs to have a broad, negative impact.
In fact, he said small-cap companies will be harmed the most, contrary to the popular belief that they are better protected because they are domestic.
“These companies, in fact, have a higher export and import exposure. Their margins are significantly weaker and hence they cannot absorb cost. And lastly, they don’t have the pricing power,” he told “Power Lunch.”
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570f6ea7c58a06015713281e7102523f | https://www.cnbc.com/2018/07/24/alphabet-may-become-the-berkshire-hathaway-of-the-internet.html | Alphabet may become the Berkshire Hathaway of the internet age on its massive technology bets | Alphabet may become the Berkshire Hathaway of the internet age on its massive technology bets
VIDEO2:3402:34Here's what seven experts have to say about Alphabet shares surgingNews Videos
Alphabet CEO Larry Page has long admired Warren Buffett’s business acumen in creating the industrial and investment conglomerate Berkshire Hathaway.
And now analysts and investors are noticing Alphabet’s investments in emerging disparate businesses are starting to bear fruit — including YouTube, autonomous cars and cloud computing — drawing comparison to Berkshire Hathaway’s success.
The internet giant reported better-than-expected second-quarter earnings Monday, driving Alphabet shares to a new all-time high the following day. It generated adjusted earnings per share of $11.75 versus the Wall Street consensus of $9.59 for the quarter. Alphabet also posted a $1.06 billion gain in its equity investments for the time period.
“Our investments are driving great experiences for users, strong results for advertisers, and new business opportunities for Google and Alphabet," said Ruth Porat, CFO of Alphabet and Google in the earnings press release Monday.
As a result one well-known investor believes Alphabet has a shot of being the Berkshire Hathaway of tomorrow.
“What I'm really talking about is the diversified nature of what [Alphabet is] building away from the ad platform, in much the same way as Berkshire reinvested the float from insurance premiums into other investments. I guess I am also talking in terms of longevity, not just size,” Josh Brown said in an email Tuesday. “This quarter witnessed a host of Google's other investments throwing off profits. Larry and Sergey were very open about their intention to create something Berkshire-like when they first announced the new structure and Alphabet.”
Brown is CEO of Ritholtz Wealth Management, a New York City-based investment advisory firm. He is also a CNBC contributor.
Warren Buffett spent the last five decades building Berkshire Hathaway into a massive holding company for various businesses ranging from insurance and railroads to machine tools and ice cream. Along with his dozens of operating subsidiaries, Buffett manages a stock portfolio of more than $170 billion.
In 2014 Larry Page told the FT if there is a person who has the qualities that he wanted to lead Google into the future, it was Warren Buffett. In the following year, Google restructured itself, moving the brand under the new Alphabet umbrella. Similar to Buffett’s management structure, Page explained his role as capital allocator and executive manager.
“Fundamentally, we believe this allows us more management scale, as we can run things independently that aren’t very related. Alphabet is about businesses prospering through strong leaders and independence,” Page wrote about the changes. “We will rigorously handle capital allocation and work to make sure each business is executing well. We'll also make sure we have a great CEO for each business, and we’ll determine their compensation.”
A few years later Alphabet is already the most active corporate venture capital investor out there. It invested in 103 deals last year, according Crunchbase data.
And Wall Street is enthusiastic over the large growth opportunities from Alphabet’s previous technology bets.
KeyBanc Capital Markets reiterated its overweight rating for the stock, predicting Alphabet’s investments will generate strong returns.
“Alphabet currently has a unique combination of strong positioning and extremely large addressable markets in ad-supported video, hardware, cloud, self-driving cars, and healthcare,” analyst Andy Hargreaves said in a note to clients Monday. “Over time, we believe each of these categories can develop into very large businesses for the Company, which should help sustain a pace of overall revenue growth that exceeds current consensus expectations and drives meaningful incremental profits.”
Hargreaves raised his price target to $1,430 from $1,230 for Alphabet shares, representing 18 percent upside from Monday's close.
Even the Oracle of Omaha himself is a fan of the company, which may signal Alphabet is an heir apparent to the Berkshire throne.
In May, Warren Buffett said he made a mistake by not investing in Google-parent Alphabet.
"I made the wrong decisions on Google and Amazon," he said at the Berkshire Hathaway 2018 annual shareholder meeting on May 5. "We've looked at it. I made the mistake in not being able to come to a conclusion where I really felt that at the present prices that the prospects were far better than the prices indicated."
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72cda7b304a089d3a6f5c53aac9d55c2 | https://www.cnbc.com/2018/07/24/bitcoin-breaks-a-key-8000-level-but-its-not-out-of-the-woods-yet.html | Bitcoin breaks above key $8,000 level but it’s not out of the woods yet, technical analysts say | Bitcoin breaks above key $8,000 level but it’s not out of the woods yet, technical analysts say
A Bitcoin conference in New York.Getty Images
Bitcoin shook off a bearish two months after rising above $8,000 Tuesday but based on past behavior, another pullback could be coming, according to technical analysts that cover cryptocurrency.
“Given that it has trended down so sharply since May, I wouldn’t want to get too greedy,” said Newton Advisor founder and analyst Mark Newton. “Looking at cycles near term, this doesn't mean it will go back to its highs right away."
Newton said he would still “wait and see" if bitcoin can recover based on the digital currency's behavior in the past month. Bitcoin had struggled to break above $7,000 until last week, and traded in the $6,000 range for most of July. It has fallen roughly 50 percent this year, and down 60 percent from its highs near $20,000 in December, according to data from CoinDesk.
Analysts at Fundstrat are watching the 15-day daily moving average, often a proxy for longer-term trends, which has been trending positively for bitcoin.
But the analysts agreed that some short-term indicators are overbought, which often signals a price pullback. Still, the firm expects any drop to be "relatively shallow,” according to technical strategist Rob Sluymer.
“Incrementally, it’s positive action as the May-July downtrend has been reversed,” said Sluymer, who is also a managing director at Fundstrat.
Despite bitcoin's slump in 2018, the firm is hanging on to its $25,000 year-end price target. Fundstrat Managing Director and Head of Research Tom Lee said this week's 20 percent jump signals a return of bullish sentiment.
“A month ago, bitcoin was seen as broken, about to be regulated out of existence, and bubble with downside of $3,000,” said Lee, who was formerly JPMorgan Chase's chief U.S. equity strategist. “The trajectory of the Bitcoin’s narrative has inflected.”
While $8,000 was an important move, last week’s rise above $7,800 was even more significant, according to eToro Senior Market Analyst Mati Greenspan.
“Once that was broken, $8,000 followed pretty easily,” Greenspan said. “If we can sustain above $7,800, that would be really bullish and would go a long way to impacting sentiment.”
The next level of resistance is $10,000, but even getting to $9,500 from $8,000 could be difficult, Greenspan said.
Investors had a few reasons to be optimistic this week. Bitcoin began climbing above $7,000 last week following news that BlackRock confirmed it assembled a working group to look into cryptocurrencies and its underlying technology, blockchain. Anticipation of a bitcoin ETF decision by the Securities and Exchange Commission in August has also been a source of enthusiasm for buyers.
For now, Mark Newton is anticipating 5 to 10 percent dips and waiting for the fall for a meaningful price rise in bitcoin.
"We'll see a pullback in August," he said. "Historically, you wanted to be invested in November and December."
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b54bd0b3c43d5c9daf3fbca7548fc0a8 | https://www.cnbc.com/2018/07/24/cost-to-insure-teslas-debt-rises-on-growing-default-fears.html | Cost to insure Tesla's debt rises on growing default fears | Cost to insure Tesla's debt rises on growing default fears
VIDEO2:2102:21Tesla responds to report about supplier refundsPower Lunch
The amount investors must pay to insure their debt holdings in Tesla against declining credit quality rose on Monday to its second-highest price ever, implying the company is at a greater risk of default following a report that sparked concern that Tesla may need to raise funds.
Insurance on Tesla’s debt, which is sold as a credit default swap contract, increased from Friday by 13 cents to $5.96 per $100 of Tesla debt. That followed a Wall Street Journal report on Sunday that Tesla had turned to some suppliers for a refund of previously made payments in a bid to make a profit, citing a memo sent by a Tesla global supply manager.
A Tesla spokesperson said on Monday that the company had no comment on the credit default swaps, but said in a statement in response to the WSJ story that Tesla had asked fewer than 10 suppliers to reduce capital expenditure project spending. Tesla said that any changes with these suppliers would improve future cash flows but not affect its ability to achieve profitability in the third quarter.
Company founder and Chief Executive Officer Elon Musk may be obligated to tap debt or equity markets again this year, according to analysts, though he has said he would do neither.
Elon Musk, chairman and chief executive officer of Tesla Motors Inc.David Paul Morris | Bloomberg | Getty Images
The market’s faith in Musk’s ability to raise cash if needed has kept Tesla’s implied risk of default lower than similarly rated junk bonds and has propped up the price of its debt, according to analysts.
Tesla’s junk bond coming due in 2025 fell 1.75 cents to trade as low as 88.875 cents on the dollar, its biggest drop since Moody’s downgraded the company’s senior notes to Caa1 following production delays.
It cost $5.96 to insure $100 of Tesla’s debt, plus an upfront cost of around 18 percent, representing a total of 24.1 percent of the face value of the 2025 bond on Monday.
“The CDS is saying that there are a lot of people betting this company is going out of business,” said Thomas Graff, head of fixed income at Brown Advisory.
Tesla has burned cash ramping up production of its Model 3 sedan, which prior to July, had fallen short of a series of targets.
Profitability has been elusive for Tesla. There is over $11.5 billion of short interest on Tesla’s shares, the largest of such positions in the U.S. market by dollar value, according to financial analytics firm S3 Partners.
A short position is a bet that a company’s shares will fall in price. Investors borrow shares in the hopes of selling them and then buying back shares at a lower price to repay the loan, allowing them to pocket the difference.
As a percentage of outstanding shares, Tesla’s short interest is 20.4 percent, which places it in the top 50 most shorted stocks on the Nasdaq.
The implied market probability of a default on Monday rose to 38.9 percent from 38.3 percent on Friday, according to Thomson Reuters Eikon. The probability of a default was 34.19 percent when the credit-default swap contract, the first and only referencing a Tesla bond, launched on June 27.
Compared to Monday’s swoon in the bond price, the increased default probability seems low. That is explained, however, by the illiquid state of Tesla’s CDS, which have had only one trader, Edward Koo at JPMorgan, regularly offering quotes on the swap, according to Reuters trading sources who requested anonymity because the quotes are not public.
Because it has become harder to find third parties who are willing to take on credit risk via CDS since the financial crisis, market makers sometimes have to absorb that risk themselves. That raises CDS prices.
But the opportunity offered by Monday’s falling bond price saw a market maker added to the mix, with Goldman Sachs quoting an upfront price of 18 basis points to buy debt protection, and 16 to sell, according to Reuters trading sources with access to the quotes. JPMorgan’s quote was 23 points for buyers, versus 18 for sellers, up a point for both parties from last Wednesday’s quote.
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e528fa2a1b75307c5d6ab2367b37bff6 | https://www.cnbc.com/2018/07/24/european-markets-earnings-season-remains-in-focus.html | European stocks close higher on earnings, Peugeot soars 14.9% | European stocks close higher on earnings, Peugeot soars 14.9%
European markets closed higher on Tuesday, bouncing back from the weak sentiment seen in the previous session.
The pan-European Stoxx 600 closed provisionally up 0.86 percent with almost every sector in the black. The benchmark reached a five-week intraday high.
Basic resources led the gains on Tuesday, rallying 4.78 percent, with the sector on track for its best day since President Donald Trump's election victory in November 2016. Meanwhile, autos stocks climbed 2.59 percent.
Trump is set to meet with European Commission President Jean-Claude Juncker on Wednesday, where the two will negotiate the U.S. president's tariffs on EU imports. Ahead of the meeting, Trump tweeted: "Tariffs are the greatest! Either a country which has treated the United States unfairly on trade negotiates a fair deal, or it gets hit with tariffs. It's as simple as that."
On Wall Street, stocks opened higher, as traders digested strong corporate earnings reports led by Google-parent Alphabet. The tech giant reported second-quarter earnings that showed a big bottom-line beat on estimates.
Earnings were the biggest driver on Tuesday. PSA Peugeot saw its shares touching its highest level since around the summer of 2008, after reporting its latest results. The company announced an increase in profit that beat expectations. The stock was up 14.88 percent.
UBS shares also rose 4.32 percent on Tuesday after reporting a 9 percent increase in net profit during the second quarter, to 1.28 billion Swiss francs ($1.29 billion), up from a year ago.
In other corporate news, Spectris reported first-half sales had risen 3 percent to £728 million. But the measurement tool maker warned the pace of organic sales growth would slow down slightly in the second half. Spectris was the worst performing individual stock Tuesday, down 9.269 percent.
Market sentiment was also impacted by news that China's State Council is ready to deliver a more "vigorous" fiscal policy as the economy cools.
Business activity in the euro zone dropped in July, according to data released by IHS Markit Tuesday. A purchasing managers index (PMIs) for the euro area came in at 54.3 in July from 54.9 in June — this was the second weakest performance since November of 2016.
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eb86a1174ba950631877791de42ac89b | https://www.cnbc.com/2018/07/24/key-ingredient-in-impossible-burger-approved-by-fda.html | Key ingredient in 'Impossible Burger' approved by FDA | Key ingredient in 'Impossible Burger' approved by FDA
VIDEO1:2301:23What the meatless 'Impossible Burger' tastes like
The Food and Drug Administration has approved the key ingredient in the vegetarian-friendly Impossible Burger. It's a big win for Silicon Valley-based Impossible Foods as it expands its distribution.
The ingredient, soy leghemoglobin, releases a protein called heme that gives the meat substitute its distinctive blood-like color and taste. Just as the Impossible Burger was gaining in popularity and reach, The New York Times published a report last year revealing that the FDA was concerned that the soy-based ingredient had never been consumed by humans.
In a letter to Impossible Foods released Monday, the FDA deemed soy leghemoglobin GRAS, or generally recognized as safe, in its most recent review.
“Getting a no-questions letter goes above and beyond our strict compliance to all federal food-safety regulations,” Impossible Foods founder and CEO Patrick O. Brown said in a statement. “We have prioritized safety and transparency from day one, and they will always be core elements of our company culture.”
Impossible Foods has been expanding despite last year's controversy. No longer only available at high-end restaurants, the meat substitute can be found at places like White Castle and the Oakland Alameda Coliseum. This spring, Impossible Foods made its first foray into the international market by expanding into Hong Kong.
The FDA's decision is also good news for Impossible Foods' big-name investors, including Microsoft founder Bill Gates, Google Ventures and UBS.
VIDEO4:0204:02The fight against 'fake meat' has officially begunDigital Original
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ee349b468a2f3c3ca26ef47dea61a548 | https://www.cnbc.com/2018/07/24/leon-cooperman-on-why-alphabet-is-his-biggest-position-in-his-hedge-.html | Leon Cooperman on why Alphabet is the 'biggest position' in his hedge fund | Leon Cooperman on why Alphabet is the 'biggest position' in his hedge fund
VIDEO3:0703:07Alphabet's growth is impressive regards to evaluation: Omega Advisors CEO CoopermanHalftime Report
Leon Cooperman, chairman and CEO of Omega Advisors, loves Google parent Alphabet as an investment.
Alphabet “is my biggest position," Cooperman said Tuesday on CNBC's "Halftime Report." The company's "growth is very impressive relative to the valuation. ... It is very reasonably priced. Fortress balance sheet, dominant industry position, growing very rapidly."
The investor said Alphabet represented about a 5 to 6 percent position size in his fund. He noted the company was trading at 21 times his firm's earnings estimate going into its quarterly report Monday.
Alphabet shares surged to an all-time high Tuesday, a day after the internet giant reported better-than-expected second-quarter earnings Monday. The company posted adjusted earnings per share of $11.75 versus the Wall Street consensus of $9.59 for the quarter.
On the flip side, Cooperman shared how his fund sold its position in Apple way too early. Apple shares closed at $191.61 Monday.
"We blew it. We sold our Apple near $100," he said. "We were concerned it was more of a hardware play than the software play it is turning out to be. It's a great company. We just blew it. We just got out prematurely."
On Monday Cooperman revealed he is returning outside investor capital at year-end and converting Omega into a family office.
"I turned 75 last April. It is my understanding that if you make it past 65 and cancer doesn’t get you, you can expect to live on average to 85. Hopefully, I can improve on that average, but in any event I don’t want to spend the rest of my life chasing the S&P 500 and focused on generating returns on investor capital," Cooperman said in the note to clients Monday.
Cooperman's main fund has generated annualized returns of 12.4 percent since inception versus the S&P 500's 9.5 percent return including reinvested dividends, according to Institutional Investor.
Omega agreed last year to a $4.9 million settlement with the Securities and Exchange Commission after allegations of insider trading. Omega Advisors admitted to no wrongdoing. Investors redeemed $4 billion in capital during the SEC investigation, according to Institutional Investor.
Cooperman founded Omega Advisors in 1991. It had approximately $3.6 billion in assets under management as of June 30. The investor has a net worth of $3.2 billion, according to Forbes.
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79803fdc7b31c2e7a1e0ffd2cb1c3b50 | https://www.cnbc.com/2018/07/24/leon-coopermans-top-stock-picks-amc-c-cvs-frac-nbr-ual.html | Leon Cooperman's favorite stocks as hedge fund billionaire begins new phase of career | Leon Cooperman's favorite stocks as hedge fund billionaire begins new phase of career
VIDEO6:5806:58Cooperman's 2017 Delivering Alpha Top Picks: United, Citibank, Nabors IndustriesPower Lunch
Billionaire Leon Cooperman had a few last stock ideas to share on CNBC's Halftime Report on Tuesday before he closes his hedge-fund to outside investors at the end of the year.
Cooperman shared six of his best ideas in the interview, explaining a few reasons why he thinks the stocks — AMC Networks, Citigroup, CVS Health, Keane, Nabors and United Continental — are a good value for investors.
He thinks AMC is an interesting stock due to stock buybacks from the Dolan family, which owns 17 percent of the economic interest in the TV networks company.
"I believe you’ve got to pay attention when a 17 percent owner is aggressively buying back stock," Cooperman said.
Keane and Nabors are both energy stocks which Cooperman sees benefiting from a rise in the price of oil.
"I think that the price of oil is going to be rising, not declining, which will be good for their business," Cooperman said.
Cooperman's Omega Advisors is converting to a family office at the end of 2018, according to an investor letter obtained by CNBC on Monday. Cooperman's main fund generated annualized returns of 12.4 percent since inception versus the S&P 500's 9.5 percent return including reinvested dividends, according to Institutional Investor.
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900576d9ea7b7a53c8788f6245c9ee77 | https://www.cnbc.com/2018/07/24/square-partners-with-ebay-to-expand-small-business-lending.html | Square partners with eBay to expand lending for 'underserved' small businesses | Square partners with eBay to expand lending for 'underserved' small businesses
Jack Dorsey, CEO and co-founder of Twitter and founder and CEO of Square, speaks at the Consensus 2018 blockchain technology conference in New York City, May 16, 2018.Mike Segar | Reuters
Fintech company Square is boosting its small-business lending with an eBay partnership.
Square Capital, the lending arm of the payment start-up, will be available to eBay sellers looking to expand their business operations. Starting in the third quarter, merchants on the site can apply for a loan as small as $500 and up to $100,000 to help with everything from payroll and inventory to equipment and marketing, the companies announced Tuesday.
Square Capital’s focus since launching in 2014 has been on those businesses historically excluded from the larger financial system. The partnership will offer access to capital for those who have been “underserved when seeking funding” and give U.S. sellers a "seamless funding experience," said Jacqueline Reses, head of Square Capital.
Small-business lending is an increasingly competitive area in fintech. PayPal, which was once a part of eBay, has a program called Working Capital and provides loans to merchants based on sales history. Amazon also does this for sellers, and began extending credit to small business owners in 2011. It uses sales data to trigger invitations for financing that could boost growth.
Still, credit availability continues to be an issue for smaller merchants. Heading into this year, small businesses reported stronger revenue growth and profitability but still struggled to get loans to pay operating expenses and wages, according to the Federal Reserve’s 2017 Small Business Credit Survey. As many as 70 percent of merchants didn't receive the funding they wanted last year, the report said.
San Francisco-based Square, run by Twitter CEO Jack Dorsey, is best known as a credit cards processor but also offers payment hardware. Its peer-to-peer Cash App is growing faster than PayPal’s Venmo, according to a recent Nomura report. It began offering cryptocurrency trading on the Cash App late January.
Square Capital originally provided loans to merchants already using its credit card processing services. Two years later, it expanded outside of the Square ecosystem through its partnerships program.
Shares of Square have surged more than 170 percent this year, and are up more than 100 percent this year alone. The company's stock was down 1 percent in midday trading Tuesday. EBay's stock was flat.
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0ae24657142c8b99baa19c39aac153ab | https://www.cnbc.com/2018/07/24/strategist-jim-paulsen-sees-a-warning-sign-for-the-market.html | Jim Paulsen sees a warning sign that should have investors shifting their game plan | Jim Paulsen sees a warning sign that should have investors shifting their game plan
VIDEO3:3003:30Stay in the market, raise low cash: Leuthold chief strategist on recession fearsPower Lunch
Noted strategist Jim Paulsen has his eye on a metric he believes may be a warning sign for the market.
While the four variables that are traditionally recession indicators aren’t lining up right now, he sees another element in play — the real earnings yield. That is the most recent 12-month period of earnings per share divided by the current market price per share.
“The real earnings yield has had a pretty good track history over the post-war period ... of kind of giving an idea of future return potential,” Paulsen, chief investment strategist at The Leuthold Group, told CNBC on Tuesday.
“Real yield sits right on the cusp of the lower quartile and half of the bull markets in post-war history — more than half actually — have ended when the real yield fell to the lowest quartile,” he said on “Power Lunch.”
That doesn’t mean he’s predicting a recession at the moment. Right now, Paulsen believes the market is highly valued and there are limits to how much higher the bull market can go.
“The real risk is if the cycle ends. That’s where the negative return potential comes in,” he said. “If the cycle continues, I think values will allow it to continue to rise.”
However, investors should be prepared.
“I’d stay in the market but would diversify much more broadly and aggressively then we have up till now,” he said.
For one, international markets should be “maximally overweighted” relative to U.S. stocks, Paulsen said.
“Most of issues are more pronounced here than they are abroad. Overseas markets are under-owned, undervalued, they have more accommodative policy officials, a number of good attributes,” he noted.
Paulsen would also raise a little cash, which would come in handy to scoop up opportunities during the next sell-off.
“If we do hit another air pocket and go below February lows, there’s going to be a lot of panic and you’ll have some dry powder available as people give away good assets.”
He would add a little gold for the same reason, since panic from a sell-off would send the precious metal higher.
A commodity exchange-traded fund would also be a good idea because full employment and a high gross domestic product number, perhaps at 5 percent, would be beneficial for commodities, he said.
Second-quarter economic growth numbers are due out Friday. Economists expect an expansion of 3.8 percent, while CNBC’s Rapid Update tracker projects GDP to rise 4.2 percent in the quarter.
When it comes to U.S. stocks, Paulsen would diversify his sector exposure and buy inflationary beneficiaries like industrials, energy and materials.
For Andrew Slimmon, senior portfolio manager at Morgan Stanley Investment Management, the focus should be off of momentum players.
“The trade for the year is don’t chase too much momentum. If things have worked too strongly, back off. And then look at areas that have not done as well,” he told "Power Lunch."
Right now, the market is doing great because of corporate earnings, Slimmon said. But it will be a tougher time come August, when earnings are over and the market is only facing geopolitical headwinds, he added.
Slimmon specifically likes financials, which have lagged but he thinks can do better.
Disclaimer
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23b9b36a5c78a9b7e884a90ca5c2ddff | https://www.cnbc.com/2018/07/24/trump-harley-davidson-reagan-trade.html | How Trump’s and Reagan’s trade wars shaped Harley-Davidson | How Trump’s and Reagan’s trade wars shaped Harley-Davidson
VIDEO4:1804:18How big Harley-Davidson isDigital Original
Harley-Davidson has been in the vortex of President Donald Trump's trade war policies over the past quarter. But now its stock is up nearly 7% – on track for its best day since October 18, 2016. The company, though, isn’t out of the woods. Its sales have been falling since 2016, it was hit with tariffs, and went from being praised by Trump to scorned. CFO John Olin said that tariffs will cost the company $45-55 million this year.
A large part of that comes from the recent EU tariffs that sparked its controversy with the president. But a few decades ago, tariffs actually helped Harley from going under.
In the late 1970s, Harley-Davidson was in deep trouble. Its bikes had dropped in quality and the motorcycle industry in America was being taken over by Japanese brands. Its share of the U.S. heavy bike market had dropped from 75 percent in the early 70s to just 25 percent in the early 80s.
The situation was so dire that a group of Harley executives, led by CEO Vaughn Beals, bought out the company from then-owner AMF in 1981. They launched an ambitious strategy to turn the company around. They shrunk the workforce, improved quality and then they reached out to the International Trade Commission for help with foreign competition.
In 1983, President Ronald Reagan raised tariffs by 45 percent on large motorcycles coming into America. It would help slow the progress of Japanese bike makers. Speaking at Harley’s facility in York, Pennsylvania in 1987, Reagan stated, “It was like giving a boxer a few extra weeks of training before a fight.”
Harley-Davidson would go on to make a historic comeback. In 1987, it was on the NYSE and by 1989 it reclaimed nearly a 50 percent share of the heavy bike market.
While those older tariffs helped Harley to survive these newer ones are likely to harm it.
As of 2014, Harley-Davidson had a 35 percent share of the U.S. market, which is more than any other motorcycle manufacturer. Its sales, though, have slipped. Harley’s worldwide sales dropped from more than 260,000 in 2016 to under 243,000 in 2017. In that same year, Honda sold more than 17.6 million — and that marked a rise from the year before.
Harley may have the biggest share at home, but abroad they're outsold by millions. The EU tariffs would have put more pressure on Harley. They would have either had to pass along the costs, making its already pricey motorcycles even more expensive compared with the competition, or the company would have to absorb the costs itself, hurting its profit margins.
To ward against that, Harley has talked about evading the tariffs by shifting more manufacturing outside the U.S. — a decision that angered Trump. He tweeted that his administration would now work with other motorcycle companies who want to move into the U.S.
In the 80s, Harley was once again an independent company and on the rise, with then-president on its side. Its rally cry to celebrate the move was “The Eagle Soars Alone.” Today, it may not be in celebration but it feels just as fitting.
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656fd02b3541d98fbba1ae2bcbddce25 | https://www.cnbc.com/2018/07/24/us-immigration-463-migrant-parents-deported-without-children.html | The US says 463 migrant parents may have been deported without their children | The US says 463 migrant parents may have been deported without their children
A Mission Police Dept. officer (L), and a U.S. Border Patrol agent watch over a group of Central American asylum seekers before taking them into custody on June 12, 2018 near McAllen, Texas.Getty Images
More than 450 immigrant parents who were separated from their children when they entered the United States illegally are no longer in the country though their children remain behind, according to a joint court filing on Monday by the federal government and the American Civil Liberties Union.
The absence of the 463 parents, which U.S. government lawyers said was "under review," could impede government efforts to reunite separated families by Thursday, the deadline ordered by a federal judge. The filing did not say why the 463 parents had left the country, but government officials previously acknowledged that some parents had been deported without their children.
As of Monday, 879 parents had been reunited with their children, according to the filing.
About 2,500 children were separated from their parents after the Trump administration announced a "zero tolerance" policy in April aimed at discouraging illegal immigration. The policy was ended in June amid an international outcry about the government's treatment of immigrant children.
U.S. District Judge Dana Sabraw in San Diego ordered last month that the government had to reunite the children with their parents in a case brought by the ACLU.
On Monday, the government also said 917 parents were either not eligible to be reunited or not yet known to be eligible to be reunited with their child. That number includes parents no longer in the country as well as those deemed unsuitable because of criminal convictions or for other reasons.
Immigration advocates have expressed alarm about parents deported without their children, saying it can create problems with the children's immigration cases.
"How can we go forward on a case if we don't know the parent's wishes?" Megan McKenna, spokeswoman for Kids in Need of Defense, told Reuters earlier this month.
While Monday's report indicated progress with reunifications, the ACLU made clear its frustrations with the process. The rights group said it did not have a list of parents who signed a form electing to be deported without their child.
"These parents urgently need consultations with lawyers, so that they do not mistakenly strand their children in the United States," the ACLU wrote in the court filing.
The ACLU asked Sabraw to order the government to turn the information over by the end of Tuesday.
The government said it had cleared an additional 538 parents for reunification pending transport.
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b1e912fec141525ba468e58ef21e55a7 | https://www.cnbc.com/2018/07/24/warner-bros-world-abu-dhabi-theme-park-opens-its-doors.html | Warner Bros. $1 billion theme park opens its doors in Abu Dhabi | Warner Bros. $1 billion theme park opens its doors in Abu Dhabi
VIDEO2:3802:38Warner Bros. opens indoor theme park in Abu Dhabi
A new $1 billion theme park opens to the public in Abu Dhabi on Wednesday.
Warner Bros. World Abu Dhabi is the result of a collaboration between the U.S. entertainment firm and local holding company, Miral Asset Management.
Speaking to CNBC’s Hadley Gamble from Abu Dhabi on Tuesday, the chairman of Miral, Mohamed Khalifa Al Mubarak, said the investment would profit from growing tourism in the region.
“China, India and Russia have been our biggest markets and there is strong growth by all these countries,” he said.
“We expect stronger growth to come from U.K., Germany and Saudi Arabia. Additions like the Warner Bros. Abu Dhabi will just compound that growth,” he added.
The indoor amusement park is spread over more than 1.65 million square feet and has 29 rides. Visitors move through six themed areas: Warner Bros Plaza, Metropolis, Gotham City, Cartoon Junction, Bedrock and Dynamic Gulch.
Al Mubarak said he expected the amusement park to “grow and grow” as more characters and stories were added to the roster.
VIDEO4:1204:12Warner Bros CEO: Abu Dhabi theme park ‘something we can be proud of’Capital Connection
By his side, the chairman of Warner Bros. Entertainment, Kevin Tsujihara, said any idea that Western fictional characters might not translate to Middle East audiences was misplaced.
“The messages of hope and goodness, and the villainy, aren’t specific to any country whatsoever and being part of this region just feels like a natural extension for these characters,” he said.
Tsujihara said he was confident the park could withstand competition from rivals in Abu Dhabi and Dubai. He added he was so confident in the park’s ability to entertain that visitors would even disconnect from the internet.
“You feel the characters come up to you. You can feel and touch them in a way that you can’t replicate with screens. You are going to put that cell phone down when you go on these rides,” he said.
Warner Bros. World Abu Dhabi was officially opened Monday by Mohammed Bin Rashid Al Maktoum, the vice-president and prime minister of the United Arab Emirates, and Mohammed Bin Zayed Al Nahyan, Abu Dhabi’s crown prince.
Tweet 1
On Twitter, Mohammed Bin Zayed described Warner Bros. World Abu Dhabi as “another tourist attraction that will contribute to the promotion of family tourism in Yas Island. We will continue to translate our strategic development plans into reality to achieve global leadership.”
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d1b5cdb4c917e703f6407aad7ef13034 | https://www.cnbc.com/2018/07/24/with-3d-printing-the-downloadable-gun-becomes-available-august-1.html | An AR-15 made at home? With 3D printing, 'the downloadable gun' becomes available August 1 | An AR-15 made at home? With 3D printing, 'the downloadable gun' becomes available August 1
This photo taken May 10, 2013 shows Cody Wilson holding what he calls a Liberator pistol that was completely made on a 3-D-printer at his home in Austin, Texas,Jay Tanner | Austin American Statesman | AP
Americans will soon be able to make 3D-printed guns from their home, widening the door to do-it-yourself versions of firearms including the AR-15 — the gun of choice in American mass shootings — that are untraceable with no background check required.
A settlement earlier this year between the State Department and Texas-based Defense Distributed will let the nonprofit release blueprints for guns online starting Aug. 1, a development hailed by the group as the death of gun control in the United States.
"The age of the downloadable gun begins," Defense Distributed stated on its site. Its founder, Cody Wilson, tweeted a photograph of a grave marked "American gun control."
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The plans freely available next month put firearms clicks away from anyone with the right machine and materials. That reality has startled gun control advocates, who say it makes untraceable firearms all the more available.
For Wilson, August marks the end of a years-long legal battle: He designed a 3D-printable plastic pistol, the "Liberator .380," in 2012 and put the plans online. It was downloaded more than 100,000 times before federal officials blocked his site, citing international export law.
A lawsuit from Wilson followed. The State Department settled in June.
The Second Amendment Foundation, a nonprofit that partnered with Wilson in the lawsuit, put out a statement calling the settlement "a devastating blow to the gun prohibition lobby."
Assembling guns at home isn't new. It can be done legally, too, provided the made-at-home gun isn't sold. Defense Distributed already sells parts that let users build their own untraceable firearms, known as "ghost guns" for their lack of serial numbers.
"Legally manufacture unserialized rifles and pistols in the comfort and privacy of home," one product's description states.
David Chipman, who worked 25 years as an agent with the Bureau of Alcohol, Tobacco, Firearms and Explosives, told Vice News that the homemade guns favored by hobbyists have since become popular with criminals.
“Now, criminals have started using ghost guns as a way to circumvent assault weapon regulations," said Chipman, now an adviser to the gun control advocacy group Giffords. "I imagine that people will also start printing guns to get around laws.”
Gun plans previewed on Defense Distributed's website feature the Liberator pistol along with an AR-15 and a VZ-58, a Czechoslovakian assault rifle.
The printers needed to make the guns can cost from $5,000 to $600,000, according to Vice News. The quality of plastic matters, too: An early design printed by federal agents shattered after one shot. A second gun, made from a higher grade resin, stayed intact.
William Bones, the chief of police in Boise, Idaho, told the Idaho Statesman that law enforcement agencies have followed developments in 3D-printed guns for "quite a while now."
“Measures are needed to ensure these weapons are safely built and to prevent access by children or those prohibited from owning a firearm," Bones told the newspaper.
"Hopefully we see some safe and responsible legislation soon as well as manufacturers taking measure to prevent access which might lead to tragedy.”
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173b83751574ae9c9e14f6ab17de3c91 | https://www.cnbc.com/2018/07/25/alphabet-google-employed-more-contractors-than-direct-employees-report.html | Alphabet reportedly had more contractors than direct employees this year | Alphabet reportedly had more contractors than direct employees this year
Brooks Kraft | Getty Images
Earlier this year, Google parent company Alphabet had more contract workers than direct employees for the first time ever, a person who viewed the numbers on an internal database told Bloomberg.
That's no small number: Alphabet reported 85,050 employees in the first quarter. (That headcount number jumped to 89,058 in Q2, but it's not known whether the contractor number is higher than that.)
While contractors save the company money and can speed up hiring, those workers typically make less, shoulder higher benefit costs, and lack the job security of direct employees.
Alphabet mainly hires contractors for areas where it doesn't have expertise, or when it needs temporary support, like for covering parental leave or spikes in work, a spokesperson says. Contract workers perform a wide range of tasks, including custodial duties, sales jobs, and programming positions. While those employees, hired through staffing firms like Adecco and Cognizant, can use many of the same company perks as regular employees, including free food, their benefits typically come from the agencies. That trims significant costs from Alphabet's balance sheet, but can leave workers with burdensome costs.
One former Google contractor who worked through Adecco told Bloomberg that he had to pay roughly $600 per month for diabetes-related coverage.
Earlier this year, SurveyMonkey started providing its contractor workers with staff benefits like health insurance, time off, and transportation, in response to concerns from direct employees.
Besides lacking benefits, contract workers make less than direct employees. A 2016 report from Benner and Neering found that the average yearly pay for tech employees was $113,000, while white-collar contractors made $53,200 and blue-collar contract workers made $19,900.
Read the Bloomberg story here.
VIDEO5:1505:15It's awesome to be a monopoly in a growing economy: Google expertSquawk Alley
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37e00cb94c408ce1b7d4547bbe0882cb | https://www.cnbc.com/2018/07/25/dollar-droops-euro-buoyant-as-us-eu-move-towards-avoiding-trade-war.html | Euro settles lower after ECB decision; yen up | Euro settles lower after ECB decision; yen up
Mark Wilson | Getty Images
The euro held below a three-day high on Thursday after the European Central Bank, as expected, kept its policy rate unchanged and investors waited to see whether there are any further hints on the pace of policy normalization.
The ECB's decision keeps it on track to end its vast bond purchases by the close of the year and to keep rates record low at least through next summer.
Attention now turns to ECB President Mario Draghi's news conference for signs of whether the ECB elaborates on how it will use redemptions from its bond purchases after the scheduled close of the quantitative easing program at the end of 2018.
"The key watch points will be the central bank's interpretation of external risks and an improving inflation outlook, along with any commentary on the future reinvestment policy within its asset purchase program," Morgan Stanley strategists said.
The euro was 0.61 percent weaker at $1.1656, up from $1.1719 before the ECB decision. It had gained overnight from a low of $1.1664 after European Commission President Jean-Claude Juncker and U.S. President Donald Trump agreed to negotiate on trade.
Trump said they had agreed to "work together toward zero tariffs, zero non-tariff barriers, and zero subsidies on non-auto industrial goods". He agreed to refrain from imposing car tariffs while the two sides launch negotiations, easing the threat of a transatlantic trade war.
Currency markets were far more circumspect about the outcome of the summit than equity and bond markets as investors waited for the fine print.
"The one thing we have learned from the last 18 months of Trumps gyrating trade policies is that whatever looks certain today is likely to be undermined tomorrow," Gavekal strategists said in a note.
YEN GAINS
The Japanese made tiny gains against the dollar and other higher yielding currencies as markets waited for the outcome of a Bank of Japan policy review next week.
The yen rallied briefly and yields surged on Monday after sources told Reuters that the BOJ, facing stubbornly low inflation, is in unusually active discussions before its rate review on July 30-31, with tweaks to its stock-buying techniques on the table.
The Japanese currency edged 0.17 percent lower against the dollar to 111.16 yen.
However, another drop by the Chinese currency after Wednesday's bounce undermined broader risk appetite in markets. The offshore yuan fell 0.31 percent to 6.7865 to the dollar.
A more than six percent drop in the value of the Chinese currency since mid-June as trade tensions escalated has put pressure on export-oriented emerging markets.
Investors increased bearish positions over the past two weeks on all emerging Asian currencies, according to a Reuters poll.
Elsewhere, the dollar index held at a two-week low against a basket of six major currencies before it later traded flat at 94.66.
Sterling slipped to $1.3125 but expectations about a rate rise next week from the Bank of England limited any weakness.
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5782dda484c8cf626e3561b23969ed31 | https://www.cnbc.com/2018/07/25/fiat-chrysler-sergio-marchionne-dies.html | Auto industry legend CEO Sergio Marchionne dies at age 66 | Auto industry legend CEO Sergio Marchionne dies at age 66
VIDEO6:4906:49Fiat Chrysler says Sergio Marchionne has diedSquawk on the Street
Former Fiat Chrysler (FCA) CEO Sergio Marchionne, who played a pivotal role in two corporate turnarounds, has died at the age of 66.
"It is with the deepest sadness that EXOR has learned of the passing of Sergio Marchionne," FCA Chairman John Elkann, from the Agnelli family which has a controlling stake in the auto group, said in a statement Wednesday morning.
“Unfortunately, what we feared has come to pass. Sergio Marchionne, man and friend, is gone. I believe that the best way to honor his memory is to build on the legacy he left us, continuing to develop the human values of responsibility and openness of which he was the most ardent champion."
Marchionne was replaced as CEO of the carmaker last weekend and also stepped down from his dual role as CEO of Ferrari, the race car manufacturer spun off from Fiat more than 2 years ago. The company said at the time that his condition had worsened after he fell gravely ill following complications during surgery in a Zurich hospital.
In an emotional letter at the weekend, Elkann hailed Marchionne's tenure, sought to reassure employees about the future, and rally them around newly appointed CEO Mike Manley.
Tributes from top industry execs poured in throughout Wednesday, with Bill Ford calling Marchionne "one of the most respected leaders in the industry."
VIDEO1:0901:09A look back at the life of auto industry legend Sergio MarchionneSquawk Box Europe
"His extraordinary leadership, candor and passion for the industry will be missed by everyone who knew him. Our thoughts and prayers go out to his family at this difficult time,” Ford added in a statement.
Mary Barra, chairman and CEO of General Motors, said Marchionne had created a "remarkable legacy in the automotive industry."
Marchionne was born in 1952 in the Italian town of Chieti, about 120 miles east of Rome.
His father served in the Italian military police known as the carabinieri, and one of Marchionne’s very last official duties was to hand over a Jeep in a presentation to the security force.
Chrysler CEO Sergio Marchionne attends a press conference at Chrysler headquarters October 1, 2009 in Auburn Hills, Michigan.Bill Pugliano | Getty Images
He emigrated with his family to Toronto, Canada, in his teenage years and as a result, spoke fluent English, French and Italian.
The Italian-Canadian became a graduate of the University of Toronto where he received a degree in philosophy, as well as the University of Windsor where he completed his MBA and Bachelor of Commerce degree. He earned his law degree in 1983 at the Osgoode Hall Law School of York University.
Marchionne is known to have played a central role in the turning around of the struggling Fiat Group into one of the most successful companies in the automobile industry.
Appointed CEO in 2004, Marchionne became the company’s fifth chief executive in just two years. He embarked on a program of reform at the debt-laden firm, balancing the counter demands of powerful politicians and Italy’s strong unions.
With the support of U.S. and Canadian governments, the Fiat Group entered into a strategic alliance with the bankrupt U.S. automaker Chrysler. Within two years Chrysler had exited Chapter 11 and returned to profitability.
In 2014, the two firms merged to become Fiat Chrysler Automobiles (FCA) and in the same year Marchionne announced that the joint company's near $13 billion debt pile had been wiped out.
Italian-listed shares of Fiat Chrysler fell around 5 percent on Monday following the news that Marchionne would not return to work. They fell a further 10 percent Wednesday after the firm revealed its second-quarter profit had slipped by more than a third from last year, and that it was lowering its full-year revenue and operating profit targets.
—Reuters contributed to this article.
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06ff263270abc6c33a0ce2a8216a38ed | https://www.cnbc.com/2018/07/25/iranian-attacks-on-us-interests-in-the-gulf-more-likely-than-ever.html | Iranian attacks on US interests in the Gulf more likely than ever after hostile tweets | Iranian attacks on US interests in the Gulf more likely than ever after hostile tweets
Iranian Revolutionary Guards drive speedboats in front of an oil tanker at the port of Bandar Abbas Atta Kenare | AFP | Getty Images
Iran ramped up threats of retaliation for U.S. sanctions on its oil exports this week, with President Hassan Rouhani reiterating suggestions that his government could close the Strait of Hormuz, through which some 30 percent of the world’s oil shipments pass.
While this is in fact unrealistic due to the U.S. Fifth Fleet based in Bahrain, Iran is now more likely than ever to intensify attacks on American interests through its proxies in the region, confrontations with U.S. vessels in the Gulf, and cyberattacks.
“Iran could certainly resume confrontational skirmishes with U.S. vessels and intensify attacks on oil tankers through proxy groups such as the Houthis in Yemen,” RBC’s Global Head of Commodity Strategy Helima Croft said in a client note late Tuesday.
Tehran may be bluffing on the Strait of Hormuz, but its threat already sent oil prices up. Meanwhile, it’s all but certain the regime will increase support for its regional proxies Hezbollah in Lebanon and Syria, Shia militias in Iraq, and the Houthis – exactly the behavior the Trump administration seeks to deter, which will in turn lead to more U.S. sanctions.
Risks have spiked following a war of words by U.S. and Iranian leaders. Rouhani, following a scathing speech by Secretary of State Mike Pompeo in which he called the Iranian regime a “kleptocracy” and a “mafia,” warned against threatening his government by suggesting that war with Iran would be “the mother of all wars.” Trump shot back Sunday night with a tweet warning that if Iran were to continue threatening the U.S., it would suffer “consequences the likes of which few throughout history have ever suffered before.”
VIDEO6:3106:31'Iran could close critical shipping lane', says former NATO commander result of Trump tweetPower Lunch
Oil markets are jittery ahead of the August 6 deadline by which many sanctions on Iran will be reimposed by Washington as part of its withdrawal from the five-nation Iran JCPOA (Joint Comprehensive Plan of Action), which lifted sanctions on the Islamic republic in return for curbs on its nuclear program. Analysts expect Iran to restart its pre-JCPOA nuclear enrichment activities and recommence amassing its stockpile of highly enriched uranium.
The White House has mandated that all oil buyers cut crude imports from Iran by November or face stiff financial penalties. RBC projects a loss of 600,000 to 700,000 barrels per day (bpd) by the fourth quarter of this year, with losses likely surpassing 1 million bpd in the first quarter of 2019.
Iran has a long history of aggressive responses to threats, and is already under pressure from public discontent amid a plummeting currency and an economy teetering toward collapse. The country’s gross domestic product (GDP) was projected to grow 4.3 percent this year before the U.S. withdrew from the JCPOA. Now, it is expected to see an annualized contraction of 5 to 8 percent and up to 50 percent inflation, according to political risk firm Eurasia Group.
The Iranian Revolutionary Guard Corps (IRGC) has apprehended U.S. naval personnel before and has used speedboats to harass American vessels.
“We’ve been seconds away from lethal incidents in years past,” noted Cliff Kupchan, Eurasia Group chairman, who described Trump’s greater proclivity to pull the trigger in a confrontation than his predecessors George W. Bush or Barack Obama. “A deadly encounter would be escalatory, to put it mildly.”
Iran’s most flexible and immediate form of retaliation may not involve military force at all: cyberattacks.
“Iran has developed a potent arsenal, and cyber offers an attractive asymmetric path of retaliation,” said Kupchan.
Iranian Quds Force commander Qassem Soleimani (C) attends Iranian supreme leader Ayatollah Ali Khamenei's (not seen) meeting with the Islamic Revolution Guards Corps (IRGC) in Tehran, Iran on September 18, 2016.Pool | Press Office of Iranian Supreme Leader | Anadolu Agency | Getty Images
Tehran could well hit the business sectors of U.S. allies in the region, he said, with Saudi Arabia being a likely target. The expert pointed to American corporates and the U.S. financial sector as potential victims, as well as politicians on whom Tehran can obtain compromising information through cyber means. Critical infrastructure would be another potential target, though experts are unsure if Iran’s hackers have that capability yet.
The U.S. and Iran have quietly waged cyberwar for more than a decade, set off between 2007 and 2011 when U.S. and Israeli intelligence forces reportedly deployed the Stuxnet virus to destroy computer-controlled equipment at Iran's Natanz Uranium Enrichment Facility. Since then, Iran’s cyber capabilities have advanced at a rapid pace.
Last September, the U.S. Treasury Department added two Iran-based hacking networks and eight individuals to a U.S. sanctions list, accusing them of taking part in cyber-enabled attacks on the U.S. financial system in 2012 and 2013, Reuters reported. Iran denied any role in the attacks.
Hackers believed to be linked to the Iranian government also attacked Saudi state oil giant Aramco in 2012, successfully wiping 30,000 computers and paralyzing operations.
VIDEO4:2504:25Iran-U.S. tensions compete with oil oversupply worriesWorldwide Exchange
Security experts have traced a number of subsequent attacks back to Iran, including hacks on Saudi and Western aerospace and petrochemical companies. Cybersecurity firm FireEye has said it detected coding containing Farsi references in the malware that hackers left behind. Last year it singled out Iranian hacker group APT33 as being behind numerous attacks on international aviation companies, saying it had the capability to cripple entire computer networks.
The U.S. intelligence community has already called attention to the vulnerability of America’s critical infrastructure, revealing detailed reports of penetration by Russian hackers. Director of National Intelligence Dan Coates said that the signs of an impending cyberattack were “blinking red” — and though he was referring to Moscow as perpetrator, his warning highlighted the threat of cyber warfare more broadly.
Despite the tough talk, neither Iran nor the U.S. appear willing to engage in direct military confrontation. But through the various means Iran can hit back at Washington, opportunities for nasty escalation are rife.
Croft’s RBC report summed up the fears of many regional experts. “While neither may want a war, a miscalculation and a potentially uncontrolled escalation could bring them to the brink.”
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3d6d64e84d7cae87d4df71dd7cd9e656 | https://www.cnbc.com/2018/07/25/mattel-to-cut-2200-jobs.html | Mattel shares sink 8% as company slashes 2,200 jobs | Mattel shares sink 8% as company slashes 2,200 jobs
A customer browses the Mattel Barbie dolls section of a now closed Toys 'R' Us store.Chris Ratcliffe | Bloomberg | Getty Images
Shares of Mattel plummeted more than 8 percent after the company disclosed that it would be cutting 2,200 jobs on Wednesday.
The company said this reduction represents 22 percent of its global non-manufacturing workforce.
The toy company had announced a cost savings program in October, with the goal of eliminating $650 million in costs over two years — one-third of which it expects to achieve this year. As part of that initiative, Mattel had already planned to sell several manufacturing factories in Mexico.
These job cuts come just months after the company said it was shuttering its New York office, affecting about 100 employees.
On Wednesday, Mattel's quarterly sales missed Wall Street estimates, weighed down by the liquidation of key customer Toys 'R' Us and the absence of a big movie tie-in in the quarter.
“We ... had a challenging second quarter driven primarily by the Toys “R” Us liquidation,” Mattel’s new CEO Ynon Kreiz said.
Net loss in the reported quarter widened to $240.9 million, or 70 cents per share, from $56.1 million, or 16 cents per share, a year earlier.
Excluding items, Mattel lost 56 cents per share, a much steeper loss than the 30 cents per share analysts had expected, according to Thomson Reuters.
Mattel's net sales fell 13.7 percent to $840.7 million in the second quarter ended June 30, short of the $851.8 million analysts had expected.
Revenue from the company's partner brands, which includes sales from toys based on movie franchisees, fell 32 percent from the year-ago quarter. The company saw weaker sales of its Cars toys, which was partially offset by sales of toys tied to Jurassic World.
The company, like the rest of the U.S. toy industry, has been hit hard by the liquidation of retailer Toys ‘R’ Us and said the closure of its biggest customer dented its gross sales by 10 percent in the second quarter.
— CNBC's Lauren Hirsch and Reuters contributed to this report.
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b2b99a954c19b919b44fcb059d252e30 | https://www.cnbc.com/2018/07/25/qualcomm-earnings-q3-2018.html | Qualcomm jumps on earnings beat and stock buyback plan | Qualcomm jumps on earnings beat and stock buyback plan
Steve Mollenkopf, CEO of QualcommJustin Solomon | CNBC
Qualcomm shares jumped in extended trading on Wednesday after the chipmaker reported better-than-expected quarterly results and said it plans to repurchase as much as $30 billion in stock.
The buyback move -- an upward revision from the $10 billion repurchase program announced in May -- came as a result of Qualcomm saying it would terminate its plan to purchase NXP by the end of the day, when a self-imposed deadline expires. Qualcomm will pay NXP $2 billion if the event is canceled.
Here are the key numbers:
Earnings: $1.01 per share, excluding certain items, vs. 71 cents per share as expected by analysts, according to Thomson Reuters.Revenue: $5.6 billion, vs. $5.19 billion as expected by analysts, according to Thomson Reuters.
The company said in a statement that revenue in the quarter grew 4 percent from the prior year.
The majority of Qualcomm's revenue comes from its CDMA Technologies business, which makes chips for phones and other devices. In the fiscal third quarter, that unit produced $4.09 billion in revenue, below the $4.11 billion FactSet analyst consensus.
VIDEO2:2102:21Qualcomm jumps on earnings beatClosing Bell
Performance in that segment reflected "strong demand" from Chinese device makers and "lower demand" from Apple," Qualcomm's chief financial officer, George Davis, said on the company's quarterly earnings call on Wednesday.
Qualcomm's patent business generated $1.47 billion in revenue, higher than the $976 million consensus estimate.
During the quarter, Qualcomm announced an artificial intelligence research group and the Snapdragon 850 chip for 'always connected' Windows 10 PCs.
For its fiscal fourth quarter, Qualcomm said it expects earnings of 75 cents to 85 cents a share, excluding certain items, on $5.1 billion to 5.9 billion in revenue. Analysts had expected earnings of 76 cents and sales of $5.45 billion, according to Thomson Reuters.
"We believe Apple intends to solely use our competitors' modems rather than our modems in its next iPhone release. We will continue to provide modems for Apple legacy devices," Davis said on the call. Qualcomm's president, Cristiano Amon, underlined that point, saying that the company doesn't expect to be part of Apple's next product launch.
Shares of Qualcomm stock rose more than 6 percent to $63.20 after the market close. It's down 8.4 percent this year. NXP stock, meanwhile, fell about 3 percent to $95.65 after market close and is down almost 15 percent since the beginning of 2018.
Qualcomm announced a plan to buy chipmaker NXP in October 2016. The deal was delayed due to regulatory hurdles, including in China, which is in the midst of a trade war with the U.S. Chinese regulators have until late on Wednesday to give final approval. "The environment is obviously quite difficult from a geopolitical point of view, at least right now," Qualcomm CEO Steven Mollenkopf told analysts on the company's fiscal second-quarter earnings call.
Executives said the company would repurchase shares of its stock if the proposed $44 billion fell apart. CNBC's reported earlier on Wednesday that Qualcomm executives were planning to announce a share buyback and were not expecting final approval of the deal.
"The decision for us to move forward without NXP was a difficult one," Mollenkopf said on Wednesday's call. "Continued uncertainty overhanging such a large acquisition introduces heightened risk. We weighed that risk against the likelihood of a change in the current geopolitical environment which we didn't believe was a high probability outcome in the near future. In the end, we determined this was the best path forward for our customers, partners, employees, and stockholders."
Mollenkopf said the company plans to execute on most of the $30 billion in authorized share repurchases in the current fiscal year, which will end on Sept. 30.
In the fiscal fourth quarter Qualcomm will have ongoing legal costs in connection with hearings for ongoing patent infringement cases against Apple in China, Germany and the U.S., Davis said.
VIDEO4:2304:23Qualcomm-NXP deal deadline looms but still no clear sign of approvalSquawk on the Street
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fd76bf108de2468c1ef17e554520fd5f | https://www.cnbc.com/2018/07/25/secretary-of-state-pompeotestifies-before-lawmakers-about-putin-kim.html | Pompeo: Trump 'has a complete and proper understanding' of Russian interference in US election | Pompeo: Trump 'has a complete and proper understanding' of Russian interference in US election
Secretary of State Mike Pompeo testifies during a hearing before the House Foreign Affairs Committee May 23, 2018 on Capitol Hill in Washington, DC.Getty Images
Secretary of State Mike Pompeo said Wednesday that President Donald Trump has a "complete and proper understanding" of Russia's interference in the 2016 U.S. presidential election.
"I want you to know, President Trump has stated that he accepts our intelligence community's conclusion that Russia meddled in the 2016 election," Pompeo said in testimony before the Senate Foreign Relations committee.
Pompeo appeared before the committee to discuss Trump’s recent meeting in Helsinki with Russian President Vladimir Putin, Trump's war of words with Iranian President Hassan Rouhani and his unprecedented summit with North Korea's Kim Jong Un in Singapore.
"He has a complete and proper understanding of what happened," Pompeo added. "I know, I briefed him on it for over a year," the nation's top diplomat said, referencing his time as the director of the Central Intelligence Agency.
VIDEO11:1011:10Watch CNBC's full interview with Former UK Prime Minister Tony BlairClosing Bell
Trump insisted he and Putin meet at the beginning of the summit without any aides present — stirring concerns that the former KGB officer would outflank his American counterpart.
During a joint press conference after that meeting, Trump downplayed assessments from U.S. intelligence agencies that Russia interfered in America's presidential election and instead appeared to side with Putin.
When asked, Putin said the Russian state "has never interfered and will never interfere" in American affairs, including the election process. "We should be guided by facts, not rumors," he added.
Trump responded by saying, "I have great confidence in my intelligence people, but I will tell you that President Putin was extremely strong and powerful in his denial today."
"I don't see any reason why it would be [Russia]," Trump added.
President Donald Trump and Russian President Vladimir Putin arrive for a joint news conference after their meeting in Helsinki, July 16, 2018. Grigory Dukor | Reuters
A day later, Trump said that he had "full faith and support" for the American intelligence community and backed their assessment that Russia interfered in the election.
Trump told lawmakers in a meeting at the White House that he misspoke at the Helsinki press conference and had meant to say that he didn't see why Russia "wouldn’t" be responsible for the attack.
"I have felt very strongly that while Russia's actions had no impact at all on the outcome of the election, let me be totally clear in saying ... that I accept our American intelligence community's conclusion that Russia's meddling in the 2016 election took place," Trump said.
However, Trump added, "Could be other people also. There’s a lot of people out there."
Meanwhile, the Trump administration has extended an invitation to Putin to visit the White House for another bilateral meeting. John Bolton, Trump's national security advisor, said Wednesday that the next meeting will occur "after the Russia witch hunt is over."
WATCH:
VIDEO0:4700:47John Bolton: Trump agrees to push Putin meeting to next yearPower Lunch
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0e8d436e14193b45d1c35a59d608178c | https://www.cnbc.com/2018/07/25/trade-war-aside-this-shift-may-drive-stocks-back-to-record-territory.html | Trade war aside, this market shift may soon drive stocks back into record territory | Trade war aside, this market shift may soon drive stocks back into record territory
VIDEO2:0102:01This market shift may soon drive stocks back into record territoryTrading Nation
The S&P 500 hasn't hit an all-time high in six months.
But J.P. Morgan Private Bank's Stephen Parker believes that could be about to change.
"I do think we break out to new records," the bank's head of thematic equity solutions said Wednesday on CNBC's "Trading Nation." "To us, it’s all about earnings."
Parker acknowledges rising interest rates and the trade war are downside risks, but he contends they haven't significantly materialized in the latest round of earnings outlooks.
"When you look broadly around the trade issue, companies haven’t really talked about it being a major headwind to their fundamental outlook. Clearly, the rise in uncertainty is not a great thing," he said. "But companies are still guiding towards continued strength, continued growth."
Parker sees the trend sparking a new wave of optimism on Wall Street. He believes investors are shifting from focusing on bearish "political noise" to strong corporate stories again.
According to Parker, that's the main catalyst to push the back into record territory and to the firm's official year-end price target of 2,900.
"We can hit that very soon," he said. "If this reporting season continues the way it started, I think we continue to see some near-term upside."
As of Wednesday's close, the S&P 500 is less than 1 percent away from hitting a fresh intraday all-time high.
VIDEO5:5105:51Stocks are poised for new highs, according to J.P. Morgan Private BankTrading Nation
Disclaimer
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ab5159e414254b0d27515280bf649a3e | https://www.cnbc.com/2018/07/25/you-could-be-an-online-shopping-addict-heres-how-to-tell.html | You could be an online shopping addict. Here’s how to tell | You could be an online shopping addict. Here’s how to tell
Michael Nagle | Bloomberg | Getty Images
Shopping online can be as easy as click, click, buy. But if you don’t watch out, it could become a habit that wrecks your finances.
The combination of anonymity, the convenience of not having to go to a store and the variety of products available can fuel online shopping addiction, according to April Lane Benson, a psychologist specializing in compulsive buying disorder.
“All of these are triggers for people who are compulsive buyers,” said Benson, who is also the author of the book “To Buy or Not to Buy: Why We Overshop and How to Stop.”
Those tendencies can be hard to fight as online retailers sweeten deals through events such as Amazon Prime Day and other flash sales.
And psychologists and financial experts alike say they have seen an uptick in patients and clients who struggle with these habits.
Financial advisor Winnie Sun, founder of Sun Group Wealth Partners, said she sees bad online shopping habits forming especially among her millennial and Gen X clients.
“The default is, ‘I’ll just Amazon it,’” Sun said. “They don’t really take the time to shop or compare price.
"For them, it’s all about immediate gratification," she added.
Older individuals are also fueling their online shopping habits via mobile phones, tablets and computers, said Terrence Shulman, founder and director of The Shulman Center for Compulsive Theft, Spending and Hoarding.
And both women and men fall prey to these tendencies, Shulman said.
VIDEO2:4302:43Amazon 'Prime Day' deals draws more volume, says expertSquawk Box
Online shopping addicts may get emotional satisfaction from shopping for different reasons.
That can include needing to portray a certain image, getting a thrill from finding deals or even the need to buy for loved ones, according to Shulman.
“If it starts to become more of a regular thing — more time, more energy, spending more than you wanted to — you want to keep an eye on that,” Shulman said.
Often family or friends will be first to point out a problem. And if your loved ones are expressing concern, you should take note, Shulman said.
Other warning signs include hiding your purchases to make sure someone else does not see or intercept them; having trouble keeping track of your budget or falling behind on bills; running out of room to store all of your purchases; or showing up late, or altogether, missing social or work events so as not to miss out on an online deal.
Shopping addicts could be turning to purchases to sooth the impact of other problems in their lives — marital issues, work problems or big, unexpected changes.
“It’s like looking for love in all the wrong places,” author Benson said. “Shopping is never going to, in an enduring way, meet your need for love and affection.”
In addition to confronting those triggers with the help of a professional, there are steps individuals can take to curb their spending.
Sun, of Sun Group Wealth Partners, said she will typically require clients who have a tendency to overspend to leave their purchases in a corner of a room for a week.
“If you don’t touch it for a week, that means you can live without it,” Sun said.
And because it’s frustrating and embarrassing to return things, those clients eventually get to the point where they do not make as many purchases, she said.
For everything you buy, assess how much you really need the item. If you’re eyeing $300 black boots, and you already own several pairs, that purchase is likely entirely unnecessary, Benson said.
Other tricks to help curb your shopping, according to Shulman of The Shulman Center, include setting a time limit for how long you can shop, restricting your budget to exclude online purchases, putting a blocker on certain websites and taking your credit card information offline.
Make a plan for situations in advance — such as holidays — that could rekindle your old spending habits, said author Benson said. And, be prepared for a long road to recovery, she added. “It is very likely that there will be lapses and relapses."
More from Personal Finance:
How to stick to your shopping budget on Amazon Prime Day
Your HBO, Netflix and Spotify habits costs more than you think
Five things you don’t know about instant payment apps
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e83c65208e24e3fb2ed89b0cd0cc8a9f | https://www.cnbc.com/2018/07/26/comcast-earnings-q2-2018.html | Comcast posts mixed quarterly results, big beat on internet customer adds | Comcast posts mixed quarterly results, big beat on internet customer adds
VIDEO2:4502:45Comcast reports mixed quarterSquawk Box
Comcast reported mixed quarterly results Thursday — beating Wall Street estimates on earnings but falling short on revenue — and posted a big beat on high-speed internet adds.
Here's how the company did compared with what Wall Street predicted:
Earnings: 65 cents per share vs. 60 cents per share forecast by Thomson ReutersRevenue: $21.74 billion vs. $21.86 billion forecast by Thomson ReutersNet increase of 260,000 high-speed internet customers vs. 195,000 forecast by FactSet consensus estimates
Shares of Comcast rose 4 percent by the close on Thursday.
The report comes on the heels of a busy quarter of evolving M&A strategy for the media giant, which owns CNBC-parent NBCUniversal. Comcast has been in bidding wars for U.K. broadcaster Sky and 21st Century Fox assets, but last week abandoned its bid for Fox.
The Fox bid was largely a play at international expansion, CEO Brian Roberts said on the company's earnings call, but didn't promise enough shareholder value at the higher price.
"We've looked at a lot of things — thousands of transactions over 50 years, and we've done several hundred," Roberts said. "And we have more times than not been able to create shareholder value if we can make those acquisitions work."
Comcast's pursuit of new media assets comes amid consistent declines in video customers for the last four quarters, according to FactSet.
The company continues to add high-speed internet customers, though, blowing Wall Street projections out of the water in the second quarter. Roberts said in a statement the 260,000 net new internet customers is the highest second-quarter result in a decade.
"As more people rely on faster and faster broadband and more capacity, that gave us a marvelous opportunity to make investments, to take the innovation machinery that our engineers and technology team have built and repurpose them partially to focus on innovation around broadband," Roberts said.
Last quarter, Comcast saw a revenue boost from NBC's coverage of the 2018 Winter Olympics and the Super Bowl. Revenue from the company's NBCUniversal segment — absent those one-time boosts — was flat in the second quarter. Comcast also reported record-setting coverage for Telemundo, as it presented the FIFA World Cup for the first time.
The company's second quarter revenue represents a 2 percent year-over-year increase. Earnings per share jumped 25 percent from the year-ago period.
Disclosure: Comcast is the owner of NBCUniversal, parent company of CNBC and CNBC.com.
VIDEO2:4502:45Comcast reports mixed quarterSquawk Box
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67d6901747b7fc69afc3c46c8bc65299 | https://www.cnbc.com/2018/07/26/facebook-shares-may-rebound-after-plunge-just-likephilip-morris-in-ea.html | It could become 'Facebook Thursday' akin to infamous 'Marlboro Friday' plunge in Philip Morris in early '90s | It could become 'Facebook Thursday' akin to infamous 'Marlboro Friday' plunge in Philip Morris in early '90s
VIDEO5:0505:05Facebook delivered 'warning shot' across tech's bow, says strategistSquawk Box
A quarter-century ago, one of the most important stocks in the market lost a quarter of its value in a single day after the company drastically reduced expectations for its long-term profitability. Its main product was viewed as addictive and nearly immune to competition, and investors complacently believed stellar long-term growth was almost inevitable.
The company was Philip Morris, and April 2, 1993, became known as "Marlboro Friday" after it suddenly cut the price of its flagship cigarette brand by 20 percent, buckling to intense competition from generic smokes.
At least in broad outlines, the situation resembles the situation of Facebook today: Investors were conditioned to believe that Facebook's hold on its users was something close to an addiction and immune to bad press about fake news and misuse of customer data. Its shares ran up 23 percent this year to a new high and a market value above $600 billion.
Then came Wednesday night's mildly disappointing quarterly results and jarring forecast by management that spending would increase for quarters to come, profit margins will compress significantly and — perhaps — users in some regions were managing to kick their Facebook habit.
The benefit of hindsight tells us that, for Philip Morris — now called Altria, after its split with Philip Morris International — "Marlboro Friday" was a painful, but temporary, shakeout. The company managed to preserve market share and, eventually, work through massive legal liabilities and sharp declines in developed-world smoking rates. The company regained pricing power, produced massive dividends for shareholders and has delivered excellent long-term share-price returns.
However, Marlboro Friday also punctured investor confidence in other highly valued branded-consumer-goods companies, which in the '80s has gathered a reputation as can't-miss growth vehicles.
Of course, there's no saying the Street's readjustment to Facebook's revised outlook will track Philip Morris' experience from here. That stock took a year and a half or so to recoup those one-day losses. Facebook shares dropped 19 percent on Thursday — but back to prices last seen just a few months ago.
So it remains to be seen whether July 26, 2018, will come to be known as "Facebook Thursday."
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e01fc9a7e77086539111c48c70827c0e | https://www.cnbc.com/2018/07/26/spotify--slated-to-release-results-ahead-of-market-open.html | Spotify hits all-time high after earnings report | Spotify hits all-time high after earnings report
Daniel Ek, chief executive officer and co-founder of Spotify ABAkio Kon | Bloomberg | Getty Images
Spotify shares closed up 4.41 percent, after hitting a fresh high in intra-day trading on Thursday. The music streaming company reported second-quarter financial results that fell roughly in line with expectations and surpassed 100 million monthly active users.
It was Spotify's second earnings report since the company went public in April.
The stock surged in regular trading, recovering after dipping 4 percent immediately after the earnings were released pre-market. At one point the stock hit a high of $198.99 per share, and Spotify's market cap went past $34 billion.
Here’s how the company did (currency rates from Oanda):
Revenue: $1.49 billion vs. $1.49 billion forecast by Thomson ReutersPremium Subscribers: 83 million vs. 82 million expected by a FactSet consensus estimate.Ad-supported monthly active users: 101 million vs. 99.7 million expected by a FactSet consensus estimate.
In the second quarter, revenue growth was hit by Europe's General Data Protection Regulation, a headwind to which executives attributed to a lag in overall revenue growth. Spotify said in a statement it saw "GDPR disruption across our European markets during Q2 but [we] seem to be largely past that now."
"GDPR posed mostly a timing challenge for us, mostly with ad holding companies, exclusively in the free business. It was an opportunity for them to try to negotiate for a broader set of information sharing rights, and we weren't willing to give them," CFO Barry McCarthy said on a call with media.
"When it became clear we weren't going to soften our position, we were able to move on and get back to the business of booking revenue. So it was kind of a short-term hiccup."
Spotify also noted a slight slowdown in ad-supported monthly active user growth. Rather than averaging 8 to 9 percent growth quarter to quarter, Spotify saw ad-supported monthly active users increase by about 2 percent quarter to quarter and 23 percent year over year. McCarthy said the slowing growth would really only be a concern if it interfered with performance in future quarters.
Spotify's third-quarter outlook fell in line with Wall Street expectations. Spotify anticipates 85 million to 88 million premium subscribers in the quarter ending in September, versus 86 million expected by analysts surveyed by FactSet. As for revenue, Spotify expects $1.4 billion to $1.64 billion, compared with the $1.55 billion expected by a FactSet consensus estimate.
Since its public share sale on April 3, Spotify shares have climbed from an opening price of $165.90 to $198.99 in intra-day trading on Thursday.
In its first earnings report in May, the music streaming company reported 75 million paying members, but discounted subscriptions reduced its average revenue per user. That figure along with a weaker-than-expected revenue forecast sent the shares tumbling.
Spotify has since recovered, with the stock climbing to a record this week. Investors are showing more confidence in Spotify's business, but the company continues to face stiff competition from Pandora as well as tech giants Google, Amazon and Apple.
VIDEO3:3803:38Pandora founder: Music is fundamentally a commodity for streaming servicesSquawk Alley
- Ariel Shapiro contributed to this report.
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a5a12591b7daaeb6df93734f7534b76e | https://www.cnbc.com/2018/07/26/the-anything-goes-list-price-strategy-is-no-longer-working-in-housin.html | Housing market is showing signs of cracking: 'Anything-goes list-price strategy is no longer working' | Housing market is showing signs of cracking: 'Anything-goes list-price strategy is no longer working'
VIDEO1:0901:09Housing market shows signs of crackingNews Videos
The latest numbers in housing aren't pretty at all.
Sales of both existing and newly built homes fell in June, the latter to the lowest level since last year. Prices continue to rise, but the gains are slowing. Mortgage applications to purchase both new and existing homes have been falling steadily, and mortgage rates are rising again. Single-family home construction also fell and was lower than June 2017.
In one of the nation's hottest metropolitan markets, Denver, Colorado, home sales fell 5.5 percent annually in June, even as prices hit an all-time high, according to a report by RE/MAX. Realtors there blame it squarely on a lack of homes for sale.
"Year-over-year prices have been climbing for more than two years now, which is great news for homeowners and sellers," said RE/MAX CEO Adam Contos. "The slower sales figures we're seeing are tied to inventory more than anything else."
VIDEO1:4501:45How to win a bidding warDigital Original
But the slowdown is also tied to overheated prices. Even in the hottest markets, there is a limit to affordability, and that limit is clearly now being hit.
In pricey Southern California, sales of both new and existing homes fell sharply in June compared with a year ago, according to CoreLogic. Demand is still quite strong, and while prices continue to gain, more listings are showing price reductions.
"The market is strong, but I'm seeing a noticeable difference in the number of buyers that are looking at my listings each week," said David Fogg, a real estate agent based in Burbank, California. "We're still selling most every home, but now it is usually with just one or two offers over the 10 to 15 offers we were seeing earlier in the year."
Fogg said he is also working very closely with his sellers now to make better and more realistic decisions about pricing.
"The anything-goes list-price strategy is no longer working. Buyers want to buy, but we're seeing fewer of them, and they are much more careful. Many properties are now not selling and/or coming down in price."
In a twist, a sales slowdown and more seller sanity could now actually boost the very slow recovery in homeownership. It ticked slightly higher again in the second quarter of this year, according to the U.S. Census.
"The rise in homeownership in the spring was consistent with the last few quarters, so while there appears to be a slowdown in the growth rate of home sales and prices, it has not slowed rising homeownership," said Sam Khater, chief economist at Freddie Mac.
Homeownership is still well below the peak of the housing boom in 2005 and a full percentage point below the 50-year average. This is because the largest generation, millennials, was delayed financially.
"This lag reflects the long-lasting scars from the Great Recession and the lopsided nature of this recovery. Despite years of continuous job growth and a slowly improving economy, it was only last year where we started to see an uptick in homeownership," added Khater.
Millennials finally began entering the housing market in huge numbers last year, only to find a critical shortage of homes for sale and fast-rising home prices. Bidding wars became the norm, and young potential buyers from coast to coast were often priced out.
"I thought I was at a higher price point where it would be a little bit easier for me to get a place without a lot of competition, but I've put down two offers so far and both times been beaten out by cash offers," said Brittany Storoz, a millennial who was house hunting in Denver, in an interview last winter. One of the homes she toured saw more than 100 people walk through it in just three days.
Homeownership is, however, gaining for younger households, especially those under 35. In the second quarter of this year, their homeownership rate hit the highest level in five years, according to the U.S. Census. This as homeownership fell for households aged 55 and older.
"This suggests that younger buyers are finding success despite the fact that they are more likely to have to adjust their home search in response to rising prices and mortgage rates," said Danielle Hale, chief economist for Realtor.com.
A recent survey by Realtor.com found 69 percent of recent closers ages 35-54 reported adjusting their home search in response to rising costs, while 77 percent of recent closers ages 18 to 34 reported the same.
There is, however, a price limit, and that is part of why existing home sales have been falling for three straight months. The other part is a lack of affordable homes for sale. Sales of homes priced below $250,000 were sharply lower in June compared with a year ago, while those priced from $250,000-$750,000 were essentially flat, according to the National Association of Realtors.
The inventory shortage is most critical at the lower end of the housing market for two reasons. First, homebuilders say they cannot afford to build lower-priced homes because of rising costs for labor and materials. Second, investors purchased millions of lower-end homes that went into foreclosure during the housing crisis and turned them into lucrative, single-family rentals. They continue to hold those homes or sell them to other investors.
VIDEO2:0802:08How to use your home as a source of cashDigital Original
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620304b90848a17b482702dea4d2c365 | https://www.cnbc.com/2018/07/26/under-armour-reports-second-quarter-earnings-2018.html | Under Armour sales top expectations on global growth | Under Armour sales top expectations on global growth
VIDEO2:2402:24Under Armour reports mixed Q2 resultsSquawk Box
Under Armour on Thursday reported second-quarter revenue that topped Wall Street estimates, as the company saw international sales surge, showing signs that investments overseas are paying off.
The Baltimore, Maryland-based company also took a hit, however, from investments in both its direct-to-consumer business and its expansion outside of North America. It hiked an existing restructuring plan and now expects to incur more costs in a push to trim excess inventory.
Under Armour shares were last up about 3 percent on the news, having climbed as much as 9.5 percent in premarket trading.
The sneaker maker's net loss widened to $95.5 million, or 21 cents per share, in the second quarter ended June 30, from $12.3 million, or 3 cents per share, a year ago. Excluding one-time items, it reported a loss of 8 cents, in line with analysts' estimates based on a survey by Thomson Reuters.
Total revenue came in at $1.18 billion, up about 8 percent from the same period a year ago and slightly above expectations for $1.15 billion.
Apparel revenue rose 10 percent in the latest period. Footwear sales jumped 15 percent, with strength in the running and team sports categories, Under Armour said.
Like some of its peers, Under Armour has struggled to keep momentum going in the U.S. — a very competitive market as athletic apparel and shoe retailers try to reach shoppers following a number of bankruptcies by sporting-goods businesses. The company has sought to combat those pressures by rolling out a new cushioning technology called HOVR, which has been a top seller, while it also aspires to reach more female customers by refreshing merchandise more frequently.
Under Armour's revenue in North America was up just 2 percent in the latest quarter, while international revenue jumped 28 percent. That included a 31 percent increase in sales in Europe and a 34 percent jump in Asia.
Inventory levels — which have been on analysts' and investors' radars as they pile up — increased 11 percent to $1.3 billion. One fear is that Under Armour will be forced to discount more merchandise at businesses like Kohl's and J.C. Penney.
CFO David Bergman said on a call with the financial community Thursday morning that Under Armour has been using off-price retailers (i.e. TJ Maxx) as a "channel ... to clean up" its inventory position. But Under Armour is planning for fewer promotions in the third and fourth quarters of this year, he said, as many wholesale orders are already booked ahead of the holiday season.
"The athletic space in the US is showing signs of improvement, as promotions normalize and the innovation pipeline strengthens, but Under Armour still faces several challenges," Telsey Advisory Group analyst Cristina Fernandez said.
Those challenges include "less sophisticated product segmentation, a consumer shift toward streetwear/fashion vs. performance, much greater exposure to apparel than footwear, and increased competition in the U.S. market," she wrote in a note to clients.
Looking to the full year, Under Armour is now expecting to incur roughly $190 million to $210 million of pre-tax restructuring and related charges, up from a prior forecast of $110 million to $130 million. The company is in the midst of completing a restructuring plan to try to grow sales.
Under Armour said net revenue should be up roughly 3 to 4 percent in fiscal 2018 — with sales in North America dropping a low to mid-single-digit percentage, and international sales rising more than 25 percent. A prior outlook by the company said net revenue would climb a low single-digit percent.
"We are making progress toward our transformation of running a more operationally excellent company while amplifying the power of the Under Armour brand," CEO Kevin Plank said in a statement.
Under Armour shares are up about 48 percent so far this year, closing Wednesday at $19.74. The retailer has a market capitalization of roughly $8.8 billion, compared with Nike, which has a market capitalization of $124.4 billion.
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f1d30c509b9ade9a81d1b19ccdefa4ca | https://www.cnbc.com/2018/07/26/us-china-trade-war-idaho-may-be-biggest-victim-but-not-for-potatoes.html | US-China trade war: Idaho may be the biggest victim, but not for its potatoes | US-China trade war: Idaho may be the biggest victim, but not for its potatoes
Idaho is the state most exposed to fallout from the U.S.-China trade war, even though its most famous product, potatoes, has so far been spared from the wrath of Beijing's retaliatory strikes, according to a new study.
China, which buys Idaho's frozen potatoes for its fast-food restaurants, also has been a major purchaser of the state's alfalfa hay, dairy products and even nonfarm goods such as semiconductors and computer parts. And some of those agriculture sectors such as dairy and hay are feeling the impact of tariffs, including weaker pricing.
The Trump administration earlier this month announced 10 percent tariffs on $200 billion worth of Chinese goods, a move that followed two earlier rounds of tariffs aimed at the world's second-largest economy. China has issued tit-for-tat tariffs on a wide range of U.S. goods, from automobiles to agriculture and farm products.
"For the majority of U.S. states, the expansion of tariffs to $200 billion of Chinese products, will affect trade totaling less than 1.2 percent of their state gross domestic products," said Michael D'Arcy, a Fitch Ratings director of U.S. public finance.
However, Idaho topped the list with bilateral trade exposure of 2.7 percent of the state's GDP, according to Fitch's report released last week.
In terms of Idaho's signature crop, the U.S. Department of Agriculture valued the 2017 Idaho potato crop at more than $1.1 billion, or about 23 percent higher than the prior year's harvest. But when including the processing side of the business the economic impact of the industry is even larger.
Using data from the Commerce Department's U.S. Census Bureau and International Trade Administration, Fitch Ratings measured the overall trade exposure of all 50 states to China as a percentage of gross state products, or essentially the state's individual GDP. They also looked at the total amount of imports and exports of the various states involving China, as a percentage of the state economy.
D'Arcy noted that the data can skew to a show a larger exposure for states with smaller populations and modest economies if they have a few industries "that are a fairly sizable presence and they are exporting products to China to the tune of few billion dollars."
According to Fitch, Idaho was one of only four states where bilateral trade with China is 2 percent or more of state GDP. The others are California, Georgia and Tennessee. The state having lowest exposure is Maine, with a mere 0.1 percent of state's GDP.
"Approximately one-quarter of Idaho's exposure is in computer and electronics products while plant and animal products also contribute," said D'Arcy.
Idaho's largest electronics company has a significant export business to China, but there have also been blowups along the way.
Last year, Boise-based semiconductor company Micron Technology had sales outside the U.S. of $17.56 billion, with almost 60 percent of that total from customers in China. But Micron also has been a target of China's alleged intellectual property theft after rejecting a takeover bid from a Chinese state-owned company in 2015.
President Donald Trump has complained about China's unfair trade practices and accused Beijing of providing state aid for the theft of American companies' intellectual property. It led him in March to impose tariffs on about $60 billion in Chinese imports, a move that followed the administration's duties on imported steel and aluminum products.
Last Friday, Trump threatened that he’s "ready to go" with tariffs on $500 billion in additional Chinese products. China already has showed it's willing to target U.S. farm goods with "double whammy" tariffs, so economies such as Idaho that are dependent on agriculture could take a hit.
University of Idaho figures show Idaho's agriculture industry is by far the biggest single sector of the state's economy and directly and indirectly responsible for about 16 percent of the state's total GDP. By comparison, production agriculture such as soybeans, corn and pork represents about 7 percent of Iowa's state GDP, but when including ag-related industries, it approaches as much as 25 percent, according Chad Hart, an agricultural economist at Iowa State University in Ames.
"Agriculture is a very important sector of the economy for Idaho," said Robert Spendlove, senior economist at Zions Bank, which operates in Idaho and other Western states. "One of the largest employers is Idaho is Simplot, which is the company [that] essentially created the process of freezing french fries and is a leading producer of frozen french fries around the world."
Besides the state's potato industry, Idaho's other major ag exports include cheese, butter, milk powder and the dairy ingredient whey. In April, China slapped a 25 percent tariff on whey and certain milk powders, a move that led Chinese buyers to go elsewhere for those products, according to analysts.
The Gem State's large alfalfa hay industry helps supply feed to the local dairy industry but also has been a lucrative product for export to China. Even so, alfalfa was one of the U.S. products Beijing targeted in recent tariffs. China ranks as the world's largest foreign market for U.S. hay, according to the U.S. Department of Agriculture.
Experts say sales from hay producers to processors have declined in recent weeks as the industry waits to see how the situation develops with tariffs. The top three hay export states are California, Idaho and Washington.
"Any hay that would have traded from a grower to a processor intended for China, that trade has slowed in a wait-and-see mentality," said Jon Driver, an industry analyst with Northwest Farm Credit Services in Spokane, Washington. At the same time, he said tariffs have softened prices for a variety of hay popular with the Chinese.
Yet Idaho has faced tariff fallout not only from China but from two trading partners in the North American Free Trade Agreement — Mexico and Canada. In retaliation for steel import duties, Mexico targeted American potatoes and cheeses and Canada imposed duties on a range of products, including U.S. yogurt.
The good news for Idaho, though, is China and Canada have spared frozen potatoes from tariffs. Both countries are major buyers of American frozen potatoes, primarily for the fast-food industry.
"China is the largest export market that we have in the United States for ag products, but that's not so with Idaho," said University of Idaho agricultural economist Garth Taylor. "Canada and Mexico, our NAFTA partners, far outweigh our China connections."
Canada shares a 45-mile border with Idaho but that hasn't meant Idaho is a big exporter of dairy products to Canadians.
Idaho is home to the world's largest yogurt plant operated by Greek yogurt giant Chobani. The company broke ground in November on an expansion at the Twin Falls facility. But Canada imports only about $3 million annually in yogurt from the U.S., and most of it comes from a plant in Wisconsin.
Indeed, Canada supplies most of its own dairy needs and the country's high tariffs on dairy have been a bone of contention with the U.S. when it comes to agricultural trade issues and NAFTA talks.
In milk production, Idaho ranks in the top 4 states but has been struggling to cope given low prices and increased competition from global competitors. About a quarter of the industry's revenue comes from exports.
Over a third of the Idaho's farm gate cash receipts are from the dairy segment and over half of receipts are from livestock such as beef — another commodity that the Chinese have targeted with U.S. tariffs. China's duties on U.S. beef exports comes as more of the product is piling up in cold storage.
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df1f8c7be1f5f4f639246d6c2a50de6c | https://www.cnbc.com/2018/07/26/whole-foods-supplier-united-natural-foods-to-buy-supervalu.html | Whole Foods' biggest supplier's $2.9 billion bid to buy Supervalu is all about its independence | Whole Foods' biggest supplier's $2.9 billion bid to buy Supervalu is all about its independence
The Supervalu Inc. logo is displayed at a distribution center in Hopkins, Minnesota.Ariana Linquist | Bloomberg | Getty Images
Amazon's acquisition of Whole Foods has spurred its first big deal among the grocery distributors.
With United Natural Foods' $2.9 billion acquisition of Supervalu, announced Thursday, UNFI lessens its reliance on Whole Foods, a relationship that has been shrouded in uncertainty ever since Amazon acquired the natural grocer. Whole Foods accounts for roughly 33 percent of UNFI's business and has a contract with the distributor that is set to expire in 2025.
It remains unclear whether Amazon will renew that contract or attempt distribution on its own. Loss of that contract could "materially and adversely" impact UNFI's business, UNFI has warned in regulatory filings.
With its SuperValu purchase, UNFI has access to 3,323 wholesale stores that service its retail distribution business. The deal "greatly expands UNFI's customer base," the company said in a press release.
UNFI is also buying SuperValu's retail business, which operates under banners such as Cub Foods and Shoppers. UNFI plans to divest that business in a "thoughtful and economic manner," SuperValu said on Thursday.
UNFI is unlikely to be the last food distributor to consolidate. U.S. grocers are under pressure from European competitors Aldi and Lidl, which are attacking them on price, and Amazon and Walmart, which are squeezing them from the high and low end. As more grocers combine, or simply go away, food distributors will likewise need to join forces for scale.
Industry sources have pointed to C&S, KeHE Distributors and SpartanNash as potential candidates for further mergers and acquisitions.
In Thursday afternoon trading, Supervalu shares gained nearly 65 percent, while UNFI shares fell nearly 16 percent.
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80dea95a4f01c412e60f77dc0f34bbcc | https://www.cnbc.com/2018/07/27/1-in-8-divorces-are-caused-by-student-loans.html | 1 in 8 divorces is caused by student loans | 1 in 8 divorces is caused by student loans
Mike Kemp | Rubberball | Getty Images
When it comes to student loan debt, "for richer, for poorer" doesn't quite cut it.
In general, finances are the leading cause of stress in a relationship, according to a study by SunTrust Bank, but student debt takes a particularly hard toll on a marriage.
More than a third of borrowers said college loans and other money factors contributed to their divorce, according to a recent report from Student Loan Hero, a website for managing education debt.
In fact, 13 percent of divorcees blame student loans specifically for ending their relationship, the report found. Student Loan Hero surveyed more than 800 divorced adults in June.
VIDEO0:3900:39When it comes to divorce, not all assets are equalDigital Original
Not only can student loan debt, which now stands at an all-time high of $1.5 trillion, be a relationship killer, it's also harder to avoid than ever before.
The average outstanding balance is currently $34,144, up 62 percent over the last decade, according to a report by Experian. In addition, the percentage of borrowers who owe $50,000 or more has tripled over the same time period, according to a separate report by the Consumer Financial Protection Bureau.
Committing to someone with that kind of student debt "feels very unfair," said Jacqueline Newman, the managing partner of Berkman Bottger Newman & Rodd in New York.
"Student loans can really hold you back," she said. For couples just starting out, that burden is having an impact on their lifestyle and ability to buy a home or have children, she added.
Newman advises couples to consider a prenuptial agreement specifying that any money put toward that debt during a marriage would be credited back off the top of the marital assets.
(Prenups, which typically safeguard individual assets such as retirement accounts, real estate and investments, can also cover one partner's student loan or credit-card debt.)
That way, the person who is helping pay down the other person's debt would be reimbursed in the case of a split.
More from Personal Finance: These are the reasons why millions of millennials can't buy houses How student loans are making some people abandon their dreams Student loan debt is a hurdle for many would-be mothers
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da1bcd4750b92ea158136ca57ecd4664 | https://www.cnbc.com/2018/07/27/2018-toyota-land-cruiser-review.html | The 2018 Toyota Land Cruiser feels like the world's toughest truck | The 2018 Toyota Land Cruiser feels like the world's toughest truck
CNBC | Mack Hogan
The Land Cruiser is the most surprising vehicle Toyota makes. While the Japanese automaker is best known for everyday commuter cars like the Camry, the Land Cruiser is a massive luxury truck with a starting price tag north of $80,000.
For that, you get seating for eight, 16 feet of metal and a massive 5.7-liter V8 engine. More importantly, you get what is likely the most durable and tested vehicle on sale today.
CNBC | Mack Hogan
Everything about the Land Cruiser is beefy and solid, from the thick-sidewall tires to the protruding grille. The volume knob, the latch for the tailgate, the controls for the off-road equipment; everything you touch in the the top-dog Toyota is made of thicker, heavier-duty material than in other luxury SUVs.
And it's not for show. Any pickup truck manufacturer will sell you something with rugged controls to make you feel like a tough guy, but there's a sense of unified purpose behind the Land Cruiser that makes such machismo less offensive and more impressive. Because with the Land Cruiser, Toyota has the history to back it up.
While some consumers might not be familiar with it, the Land Cruiser nameplate is among the most respected in the automotive industry. Toyota sells different variations of this truck around the world, from humble farm trucks with pickup beds all the way up to this leathered-out luxury truck. Visit a developing nation and you're likely to find it littered with Land Cruisers, which are especially common among police and first responders.
CNBC | Mack Hogan
For decades, Toyota has built these trucks to survive the world's toughest environments. Anyone in the Australian Outback will tell you the only production truck cut out for that place is the Land Cruiser. The U.N. even uses them in war zones.
Even the high-dollar U.S. model — this one stickers for $85,860 — has off-road chops in the form of locking differentials, a sort of off-road cruise control called crawl control and the ability to drag its outboard wheel to negotiate tight trail curves.
CNBC | Mack Hogan
The fortress-gate doors and thick windows keep things quiet inside, while a softly-sprung suspension keeps you from the harsh realities of the outdoors. Thick leather bucket seats provide support for hours on the trail, while the expected suite of heated/cooled seats, premium audio system and radar cruise control ensures your luxury SUV experience stays convenient. Oh, and there's a fridge in the center console that will keep your drinks cool all day.
CNBC | Mack Hogan
The downside of the longevity-first engineering mindset is that you inevitably end up with something that feels a bit old-school. The 381-horsepower, 5.7-liter V8 is reliable but also a generation or two behind the best powertrains you can buy. It can be noisy under load and delivered fuel economy that didn't quite meet the already-bad 15 mpg that the EPA says customers should expect.
The duty-focused interior isn't the pinnacle of luxury. The thick plastic pieces will likely outlast me, but they don't feel as premium as the leathers, metals and woods that adorn the BMWs, Audis, Volvos and Mercedes you can get for this price.
Those cars will also likely come with better tech, too, as the Land Cruiser makes do with Toyota's unimpressive Entune infotainment system. In general, while it has most of the features of a modern luxury car, the Land Cruiser fails to tie them together in a seamless way. It's the best stuff you can get on a non-luxury branded vehicle, but you probably won't forget that it's a Toyota.
CNBC | Mack Hogan
Also attributable to the off-road mission, the Land Cruiser lacks fold-flat rear seats. There's too much below-the belt to make a fold-flat row work, so the rear seats awkwardly flip to the sides and up but never really get out of the way. Plus, the soft suspension also often feels jiggly on the road.
CNBC | Mack Hogan
There is one option package: $2,200 for rear-seat DVD players. Skip it — iPads do a lot more for a lot less — and you're done with your build. That means you should be spending $85,860 for the configuration I recommend, which is the exact model I tested.
CNBC | Mack Hogan
The Land Cruiser is undoubtedly flawed. It's too bouncy and plastic-laden for its competitive set, with an engine and fuel economy rating better suited to 2005. But it's a serious marvel of automotive design that can reliably conquer the harshest terrains in the world. For most, it may be another SUV but -- among those who know -- there's no substitute for a Land Cruiser.
VIDEO2:5702:57How US-China trade war could damage auto industry: Former Toyota execClosing Bell
Rating:
Exterior: 4 stars
Interior: 3 stars
Driving Experience: 3 stars
Value: 2 stars
Overall: 3 stars
Price as tested: $85,860
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f3e9f182b4ba389485296551a7f3f798 | https://www.cnbc.com/2018/07/27/amazon-terrifies-me-as-a-company-says-dean-of-valuation.html | Amazon 'terrifies me as a company,' says a valuation professor | Amazon 'terrifies me as a company,' says a valuation professor
VIDEO2:5702:57If you don’t own Facebook, buy it at these levels, says NYU’s DamodaranFast Money
Amazon continues to break records. On Thursday, the company reported earnings per share of $5.07 compared with $2.50 as expected by Thomson Reuters.
But Aswath Damodaran, a professor of corporate finance and valuation at the Stern School of Business at New York University, who is sometimes referred to as the "Dean of Valuation," said this is not all good news.
"Amazon terrifies me as a company," Damodaran told CNBC on "Fast Money" Thursday.
"You find it overvalued but you cannot bet against it because this is a disruption machine," he said. "I'm not even sure what business the company is in anymore. It's a platform that can be used pretty much to disrupt any business. And that's what's being priced in."
Amazon's total revenue, which includes sales from Whole Foods, increased 39 percent year-over-year. Its North America revenue jumped 44 percent to $32.1 billion, while international sales grew 27 percent to $14.6 billion. The company's cloud business grew nearly 49 percent year-over-year, with Amazon Web Services generating $6.11 billion in revenue.
Amazon recently moved into the health care space by acquiring PillPack.
Shares of the e-commerce giant closed about 3 percent down, but soared more than 4 percent during Thursday after hours trading.
Amazon could not immediately be reached for a comment.
Meanwhile, other FANG (Facebook, Amazon, Netflix and Google) tech giants fell on Thursday.
Facebook missed projections on revenue and daily active users during the quarter, which caused the stock to fall more than 24 percent after the report. The trouble continued on Thursday as shares fell as much as 19 percent. Global daily active users rose to 1.47 billion, up from 1.45 billion. Still, the platform lost users in Europe, and active users in North America were flat.
"After one of the worst quarters, in terms of PR, that a company’s had, I was surprised that the user numbers actually went up," Damodaran said.
"After April, the market seemed to have forgotten all about the privacy scandal and gone back to business as usual. And I think they got a surprise yesterday that they deserve," he added.
He felt that a better measure of the company's success is the number of hours people spend on Facebook, but said that those numbers were still unknown.
Still, he said the stock is undervalued, and right now is a good time to buy with share prices down to around $180.
Facebook could not immediately be reached for comment.
— CNBC's Eugene Kim contributed to this report.
Disclaimer
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2ae0b828957da5c8b18fd53931c1324f | https://www.cnbc.com/2018/07/27/as-fang-gets-wrecked-one-tech-investor-says-they-need-a-bigger-drop.html | As Facebook and Netflix trade in bear market territory, tech investor Paul Meeks gives two tech alternatives | As Facebook and Netflix trade in bear market territory, tech investor Paul Meeks gives two tech alternatives
VIDEO1:0101:01FANG stocks need to drop this much before tech investor Paul Meeks becomes a buyerTrading Nation
Facebook and Netflix – two of the hottest FANG stocks – are now trading in bear market territory after disappointing earnings over the past two weeks.
Long-time tech investor Paul Meeks has two alternatives he feels offer far better value.
"I like some of the Chinese tech names, particularly the internet leaders like Alibaba and Tencent," Meeks, chief investment officer at Sloy, Dahl, & Holst, told CNBC's "Trading Nation" on Friday. "In some cases you could say they have better growth potential than the American net leaders, and you're buying them in just a total wipeout in their stock markets."
The Shanghai Composite, China's major stock market, is in a bear market after having fallen 20 percent from a 52-week high set in January. It is now down 13 percent for the year.
Alibaba and Tencent are due to report on their quarters in August, and Meeks says it's best to wait to see their results before taking the leap.
Facebook's historic sell-off last week capsized the rest of the tech sector. Over Thursday and Friday's session, the FANG stocks – Facebook, Amazon, Netflix, and Alphabet – lost nearly $166 billion in market cap.
Even after that sell-off, the Wall Street darlings aren't cheap enough for Meeks.
"I wouldn't buy them today. I would buy them on a correction," Meeks said. A correction marks a 10 percent pullback from 52-week highs. Such a drop would put Apple and Netflix at levels not seen since the beginning of May, and Alphabet back to its early July price.
"They will have a slip up at some point and these stocks won't go down 2 percent, they'll go down 20 percent because they're volatile tech names and that's your buying opportunity," he added.
The possible exception is Facebook, which needs to offer up better incentive before Meeks feels comfortable buying the stock.
"I'll get re-interested in Facebook under two scenarios: One, some clarity around the business model or two, the stock probably has to be $10 or $15 lower than where it's currently trading to get me back in," he said.
Meeks reduced his position in Facebook when it hit the high-$170s earlier in the week. He still has a small holding.
Facebook stock ended last week around $174, roughly 20 percent lower than the all-time high set on Wednesday. The following day, the social network lost $119 billion, a Wall Street record, after warning of increased expenses on security and privacy improvements.
Disclaimer
VIDEO4:1904:19Veteran tech fund manager Paul Meeks reveals what would make him ‘reinterested’ in FacebookTrading Nation
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c9edabf8cd71db4edac20b543b24faba | https://www.cnbc.com/2018/07/27/compass-real-estate-brokerage-disrupts-with-high-tech-smart-for-sal.html | Compass real estate brokerage disrupts with high-tech, smart 'for sale' sign | Compass real estate brokerage disrupts with high-tech, smart 'for sale' sign
VIDEO1:2201:22How 'for sale' sign redesign is disrupting the real estate marketSquawk Box
It is the most visible, most effective and most mundane marketing tool in all of real estate. The "for sale" sign. And it hasn't changed in more than a century, until now.
Compass brokerage, a new kid on the real estate block, is ready to disrupt the sign with a new, high-tech, interactive, "smart" model soon to be available to all of its approximately 5,000 agents.
"When we think about the 40 million people a year that move, this is one of the most recognizable symbols of our agents, and we heard from them that they wanted it to be better," said Matthew Spangler, chief creative officer at Compass and chief designer of the new sign. "We wanted to really consider creating the ecosystem that makes Compass so powerful, which is the combination of data and software and hardware that can help really deliver something of value for our agents and their clients."
Source: Compass
First and foremost, the so-called smart sign is round, not the usual rectangle. That is a disruption itself, and, like a round compass, also a clear plug for the company, which launched in 2012, billing itself as a, "modern real estate platform, pairing the industry's top talent with technology."
The round top of the sign spins around and lights up, highlighting the real estate agent's name, when anything moves within 20 feet of it. But it is the technology that sells this "for sale" sign. High tech has taken over every other aspect of the homebuying and selling process, from virtual searches, to robot home showings, to apps that alert you when a particular home you might like has hit the market, but so far tech had eluded the sign.
"We see the sign as a part of a connected ecosystem of devices managing the sale of homes in the future. Everything from open house management to digital lockboxes," said Spangler. "If you have the Compass app and you simply walk within 20 feet of the sign, you're going to get an alert on your phone that's going to tell you custom information about that home."
Old Compass real estate sign Diana Olick | CNBC
The sign can connect agents to potential buyers through Bluetooth, and it can also help direct buyers who may not be near the home through the Waze navigation system. Spangler said it's like a smartphone on the front lawn.
Being on the front lawn, however, could prove to be a problem. While the sign's LED circle only lights up when something is near it, more and more communities are fighting lawn blight, outlawing signs altogether. This one, which could ostensibly be activated in the middle of the night by a bird, animal, or meddling teenager, might annoy the neighbors. It is also more likely to be stolen, given all the expensive technology inside it.
"We don't believe that the signs will be stolen," said Spangler, adding, "There of course will be protective measures with insurance."
The first agents to get the sign this fall will pay around $700 for it, but the price will drop to around $500, according to the company, once it is in wide distribution.
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2b5333c6a77cecaa741bf36a9b12b543 | https://www.cnbc.com/2018/07/27/ellie-maes-closed-loan-apps-increase-despite-housing-shortage.html | Ellie Mae's closed loan applications increase despite housing shortage | Ellie Mae's closed loan applications increase despite housing shortage
VIDEO2:2302:23Cloud-based platform Ellie Mae CEO on how his company is disrupting the mortgage and housing industryClosing Bell
Ellie Mae reported an increased number of closed loans on its Encompass platform despite ongoing shortages in the housing market.
With 721,000 loan applications closed during the second quarter that's an increase of 6 percent year over year.
"What we may be seeing is a move from a sellers market to more of a buyers market as we go forward over the next couple of quarters," Jonathan Corr, president and CEO of Ellie Mae, the cloud-based mortgage company, told CNBC.
"What's been holding things back is inventory," he said Friday on "Closing Bell."
In fact, higher prices and increased demand have been pushing some potential buyers out of the market. In June, sales of both existing and new homes fell. Meanwhile, weekly mortgage applications continue to plummet as well. On Wednesday, the Mortgage Bankers Association reported that mortgage apps fell another 0.2 percent — or 12.6 percent from a year ago.
"We've got a market where the economy's looking good, the labor market is solid, ... we actually have the demand, and the demand is increasing, from especially the millennial population," the CEO said. "But the market has been tight with inventory. That's driven prices up, [and] interest rates haven't helped the situation."
But Corr said the market might finally be "seeing a little bit of relief in prices starting to cool off and inventory starting to rise."
Ellie Mae, with a market cap of $3.6 billion, has been considered a disruptor in the residential mortgage industry for its electronic mortgage applications.
The company reported a 20 percent increase in revenue in its second-quarter earnings report Thursday after the bell, with $125 million in revenue compared with $104.1 million in 2017. EPS also beat estimates at 0.53 cents per share, compared with the 0.40 cents expected.
Still, the stock closed down 3.68 percent, or more than $4, Friday.
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eba01406062bce074d3a02b7351a231d | https://www.cnbc.com/2018/07/27/facebook-follows-youtube-to-remove-four-alex-jones-videos.html | Facebook removes four of Alex Jones’ videos, bans him for 30 days over content violations | Facebook removes four of Alex Jones’ videos, bans him for 30 days over content violations
Alex Jones (C), an American radio host of InfoWars, author and conspiracy theorist.Oli Scarff | Getty Images
Facebook removed four videos from the controversial conspiracy theorist Alex Jones and slapped his personal profile with a 30-day ban after deeming that he violated its policies on bullying and hate speech.
The videos, which were posted on various pages maintained by Infowars and Alex Jones, went against Facebook's policies on community standards. Three of the four videos were reported yesterday, while a fourth video which was first flagged a month ago was found to be in violation upon re-review. Videos taken down count as "strikes," and after an undisclosed number Pages can be subject to removal.
Jones violated Facebook's content guidelines multiple times, resulting in him being banned from the site for 30 days. He had received previous warnings from Facebook about violating its policies.
"Our community standards make it clear that we prohibit content that encourages physical harm (bullying), or attacks someone based on their religious affiliation or gender identity (hate speech)," a spokesperson for Facebook said in a statement.
"We remove content that violates our standards as soon as we're aware of it. In this case, we received reports related to four different videos on the pages that Infowars and Alex Jones maintain on Facebook. We reviewed the content against our community standards and determined that it violates. All four videos have been removed from Facebook."
The social network's decision comes not long after Google-owned video sharing site YouTube issued a strike against him and also removed four of his videos. The strike meant that Jones would not be able to live stream for 90 days.
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Facebook has come under heightened pressure over how it handles fake news and other forms of misinformation as of late.
The company's market value on Thursday took a huge nosedive on concerns that its revenues would be further impacted by the scandal surrounding the sharing of personal data with political consultancy Cambridge Analytica. In fact, Facebook is the first company in history to have lost more than $100 billion in market value in just one day.
The removal of Jones' videos by Facebook and YouTube signifies yet another example of how social media firms and other content platforms are continually grappling with the phenomenon of fake news.
Many fear that the prevalence of misinformation online and the way people are targeted by it has played a role in multiple elections, not least the U.K. vote to leave the European Union and the U.S. presidential election in 2016.
Facebook has also been under pressure to remove Jones from the platform altogether. The 30-day ban on the controversial webcaster likely won't satisfy the concerns of critics who say the social media firm has allowed him to masquerade lies and misinformation as news.
Jones, who is a supporter of President Donald Trump, earlier this week appeared to threaten Special Counsel Robert Mueller, who has led an investigation into alleged ties between Russia and the Trump campaign. Jones claimed the former FBI chief covered up sex crimes, calling him a "monster" and "a demon I will take down." Those comments were streamed live on the right-wing personality's verified Facebook page.
Facebook, which has already said it won't pull Jones' page from the site, reportedly said Jones' comments did not violate its community guidelines and therefore did not warrant being taken down.
- Additional reporting by CNBC's Michelle Castillo
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a25e92e284b3789c05b33abca588285f | https://www.cnbc.com/2018/07/27/facebook-says-its-getting-close-to-pulling-alex-jones-infowars-pages.html | Facebook says it's getting close to yanking several InfoWars pages | Facebook says it's getting close to yanking several InfoWars pages
Alex Jones from Infowars.com speaks during a rally in support of Republican presidential candidate Donald Trump near the Republican National Convention in Cleveland, Ohio, U.S., July 18, 2016.Lucas Jackson | Reuters
Several Facebook pages tied to Alex Jones, including the official pages for Infowars and Alex Jones himself, are close to being removed from the platform for violating its community standards multiple times, a Facebook spokesperson told CNBC.
Pages operated by Infowars still remain active because they had not hit the undisclosed threshold violations. The Facebook spokesperson told CNBC the Infowars pages are getting close to that threshold, but would not say specifically how many more infractions would be necessary to pull them.
Jones' personal account was temporarily banned from Facebook Thursday for 30 days after it was found responsible for uploading four videos that went against community standards. The clips were posted on different pages operated by Infowars and Alex Jones. Jones had previously been warned he could be blocked by Facebook for other infractions, according to a Facebook spokesperson.
One of the removed videos shows a man shoving a child on the ground to "prevent liberalism," while another discusses drag queens in a crude fashion and suggests they are child sexual predators. Another suggests Muslim people have "conquered" Europe, and will kill everyone and sexually assault women.
These same four videos were also removed earlier in the week by YouTube, which also barred Jones from live streaming for 90 days.
Jones defended the videos on Twitter, saying they were "critical of liberalism." Infowars was not immediately available for comment.
When a post is determined to be factually false, Facebook's current policy is to reduce the number of times it shows up on News Feeds. However, the company will still remove content that incites violence. It also boots people from its platform that have a history of violating its community standards, though it does not publicly state how many "strikes" a person or Page has to get for that to happen.
VIDEO5:2205:22Facebook is plunging, but some say the stock will be just fine. Here’s whyTrading Nation
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58676a7f9f21d3c33f6d829a69fb2159 | https://www.cnbc.com/2018/07/27/fiat-chrysler-says-it-didnt-marchionne-was-ill-for-more-than-a-year.html | Fiat Chrysler says it didn't know Marchionne was ill for more than a year | Fiat Chrysler says it didn't know Marchionne was ill for more than a year
VIDEO1:0901:09A look back at the life of auto industry legend Sergio MarchionneSquawk Box Europe
Fiat Chrysler said it knew nothing about the medical condition of Sergio Marchionne after a Swiss hospital said on Thursday it had been treating the deceased chief executive for more than a year.
"Due to medical privacy, the company had no knowledge of the facts relating to Mr. Marchionne's health," a Fiat Chrysler spokesman said.
Questions have been raised about how long Marchionne, who died on Wednesday, was ill and how much the company knew before it made the situation public.
Marchionne rescued Fiat and Chrysler from bankruptcy after taking the wheel of the Italian carmaker in 2004 and he multiplied Fiat's value 11 times through 14 years of canny dealmaking. He was due to step down at FCA in April next year.
"The company was made aware that Mr. Marchionne had undergone shoulder surgery and released a statement about this," the spokesperson said.
"On Friday July 20, the Company was made aware with no detail by Mr. Marchionne's family of the serious deterioration in Mr. Marchionne's condition and that as a result he would be unable to return to work. The Company promptly took and announced the appropriate action the following day."
Former CEO of Fiat Chrysler Automobiles, Sergio Marchionne.Getty Images
Asked whether the scope of the statement included the board and the chairman, the company declined to comment.
The announcement of the death of Marchionne, 66, one of the auto industry's most tenacious and respected CEOs, drew tributes from rivals and tears from his closest colleagues on Wednesday.
University Hospital Zurich said earlier on Thursday Marchionne had been having treatment for a serious illness for more than a year before his death.
Marchionne had fallen gravely ill after what the company had described as shoulder surgery at a Zurich hospital. He was replaced as chief executive last weekend after Fiat Chrysler said his condition had worsened.
"Mr. Sergio Marchionne was a patient at USZ. Due to serious illness, he had been the recipient of recurring treatment for more than a year," the hospital said in a statement.
"Although all the options offered by cutting-edge medicine were utilized, Mr. Marchionne unfortunately passed away."
University Hospital Zurich declined to comment on Marchionne's illness, but said it deeply regretted his death and expressed its condolences to his family.
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a5f5a9390c487f852c86273900513ec8 | https://www.cnbc.com/2018/07/27/five-experts-react-amazon-latest-earnings-report.html | Five experts debate Amazon's growth story and its most recent quarter | Five experts debate Amazon's growth story and its most recent quarter
Amazon posted a big earnings beat on Thursday, but the e-commerce giant missed slightly on revenue.
Loup Ventures' Gene Munster gave Amazon's recent quarter a 'B-minus.'
"I think it's a great story, but I think that this revenue miss … really should be weighed in combination with that earnings upside," Munster told CNBC's "Fast Money" on Thursday.
Amazon is racing toward a $1 trillion valuation as its cloud and advertising services help the company grow at a fast clip. Here's what five experts had to say about Amazon's most recent quarter.
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188ef09aca54ad8c81c9979245cd0460 | https://www.cnbc.com/2018/07/27/forex-markets-dollar-euro-in-focus-after-ecb-offers-few-surprises.html | Dollar dips as robust US GDP data fail to impress | Dollar dips as robust US GDP data fail to impress
Dan Kitwood | Getty Images
The dollar slipped against a basket of currencies on Friday as data showing the U.S. economy rang up its strongest quarter in nearly four years failed to erase worries that trade frictions would be a drag in the second half of 2018.
The euro stabilized following its biggest one-day loss in a month in reaction to the European Central Bank on Thursday reaffirming its plan to slowly end its accommodative monetary policy. The greenback gave up initial gains after the U.S. government reported gross domestic product grew at a 4.1 percent annualized pace in the second quarter, matching the median forecast among economists polled by Reuters.
Growth accelerated from a revised 2.2 percent clip in the first three months of the year. After hints from U.S. President Trump and other government officials in recent days of a strong GDP reading for the second quarter, "the market is well versed in a strong number," said Alan Ruskin, global head of currency strategy in Deutsche Bank in New York. The GDP, while strong on an annualized basis, was less impressive on a year-over-year basis, coming in at 2.8 percent.
This was slower than an expected 3.1 percent pace, Ruskin said.The dollar index which tracks the dollar versus the euro, yen, sterling and three other currencies was down 0.05 percent at 94.70.
The euro was up 0.09 percent at $1.1651, while the greenback was down 0.26 percent at 110.93 yen, according to EBS.
The single currency steadied after falling more than 0.7 percent on Thursday in response to the ECB sticking to ending its 2.6 trillion euro stimulus program this year and keeping rates at a record low level through the summer of 2019.
That came after the euro rallied on relief about the United States and the European Union agreeing to begin talks to lower tariffs. China's yuan was heading for its longest weekly losing streak since November 2015. It fell to a 13-month low at 6.8369 per dollar. The yuan has been under sustained pressure since Trump threatened to impose tariffs on all imports from China.
The United States and China presented radically different visions of Beijing's economic model at the WTO on Thursday, with Washington's ambassador criticizing "the world's most protectionist economy" and his Chinese counterpart describing a U.S. report as "half-cooked."
VIDEO5:0105:01ECB president: Ample degree of monetary accommodation still necessaryStreet Signs Europe
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62c9383d5a8f600f1c453df9653cbfc5 | https://www.cnbc.com/2018/07/27/gene-munster-divergence-in-faang-stocks-over-the-next-6-to-12-months.html | Loup Ventures' Gene Munster expects a 'divergence' in FAANG stocks over the next 6 to 12 months | Loup Ventures' Gene Munster expects a 'divergence' in FAANG stocks over the next 6 to 12 months
VIDEO3:0203:02We'll see divergence in FAANG in next 6-12 months: MunsterSquawk Alley
Large-cap tech stocks as a whole may not be as safe of a bet for investors going forward, leading analyst-turned-venture capitalist Gene Munster told CNBC on Friday.
"I think we're going to see in the next six to 12 months a divergence in the FAANG," the founder of Loup Ventures said in a "Squawk Alley" interview. "Specifically, companies like Netflix and Facebook are going to kind of fall off."
"Obviously, Facebook and Netflix will be successful companies," Munster said, adding Facebook in particular is taking the right steps to "clean things up" after its data privacy scandal.
The term FAANG, refers to Facebook, Apple, Amazon, Netflix and Google-parent Alphabet.
Munster spoke a day after the tech-heavy Nasdaq fell 1 percent, hit by a plunge in Facebook. The social network posted the largest one-day loss in market value by any company in U.S. stock market history after releasing a disastrous quarterly report. Shares of Facebook were down slightly midday Friday.
Netflix's stock was 1.2 percent lower Friday. The stock sank last week after it missed its subscriber addition projections for the first time in five quarters.
However, Munster sees a different path for Apple, Google parent Alphabet and Amazon, saying the "outperformance" in the technology sector will be drive by those three stocks, particularly Apple.
On Thursday, Amazon reported better-than-expected second-quarter earnings, although revenue did come in below Street forecasts. It's profit topped $2 billion for the first time as the technology giant saw increasing benefits from its cloud and advertising businesses.
Munster said Amazon is entering a different phase of growth, calling it's a long-term bet as it enters different sectors.
Disclaimer
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0a4655d078e975f790dbf19a386e5948 | https://www.cnbc.com/2018/07/27/gms-maven-offers-to-put-owners-cars-to-work.html | GM owners can make money off their Buicks with Maven car-sharing service | GM owners can make money off their Buicks with Maven car-sharing service
Cadillac Escalade PlatinumSource: General Motors
The typical American driver spends no more than an hour a day behind the wheel, effectively paying to let that vehicle sit idle most of the time, when they could be making $500 or more a month sharing it with strangers, according to General Motors.
The Detroit automaker is using its car-sharing service Maven to pilot a new peer-to-peer service in three Midwest cities. It allows GM owners to share their Buicks, Chevys and Cadillacs with other GM customers.
Maven already has 150,000 registered subscribers that it serves with a fleet of GM-owned cars, trucks and crossovers. As part of its plan to expand, Maven wants to sign up GM owners with vehicles from the 2015 model year or newer and give its customers access to those, as well, splitting the rental fee.
"It's time to put your car to work," said Julia Steyn, vice president of GM Urban Mobility services and Maven, adding that "your car is one of the most expensive things you own. Sitting idle, it is a wasted asset."
Indeed, considering that data service Edmunds estimates the average new 2018 model went for around $34,000 last month, that's a lot of money tied up in a vehicle you don't use all that much.
With the sharing economy, there's growing demand for transportation alternatives. For some folks, the answer is simply to tap a smartphone app and call for an Uber or some other ride-hailing service. But others prefer to drive themselves, and ride-sharing services provide an alternative to traditional car rental companies for those who might only need a set of wheels for an hour or two.
Chevrolet Bolt electric vehicles (EV) stand on display during the press day of the Seoul Motor Show in Goyang, South KoreaSeongJoon Cho | Bloomberg | Getty Images
Traditionally, car-sharing services like Maven or Car2Go have to set up their own vehicle networks, which is a costly undertaking. Since it was established in 2016, Maven claims to have logged 300 million miles on its factory-owned vehicles.
It's not the first car-sharing service to adopt a peer-to-peer model. That's the foundation of Turo, the San Francisco-based transportation provider that started out as RelayRides in 2010. It now claims to have 4 million registered customers who can access 170,000 vehicles across the country.
That independently operated service offers a broad mix of vehicles owners can choose from for both short- and longer-term rentals, claiming to provide an average 30 percent discount compared with conventional rent-a-car companies like Avis or Hertz. It offers a wide range of new, and even some old vehicles, with prices ranging from $10 all the way up to $250 a day.
Maven says it will only work with owners of Buick, Cadillac, Chevrolet and GMC vehicles from the 2015 model year or newer. Like Turo, it will let owners set pricing, though it will provide a guide based on what similar products are going for.
The GM subsidiary hasn't yet released many details, including how it will reimburse owners. Steyn suggested that an owner of a Chevrolet Equinox who constantly rents the vehicle out could take home $500 or so a month. That figure actually comes in a bit below what Turo claims an owner can make. Considering the base price of a new 2018 Equinox, around $24,000, Turos website suggests "you could earn $14,023 annually." The San Francisco car-sharing service gives owners a 65 to 85 percent cut of the rental fee.
Whatever the final numbers, owners will have to cover things like gas and maintenance. The extra cash could help cover a motorist's monthly car note. And the GM service is suggesting some owners may find the extra cash helps them upgrade the car they buy.
The Chevy Camaro ZL1 introduced at the New York International Car Show at the Javits Center on March 23, 2016 in New York, NY.Ashlee Espinal | CNBC
Maven will kick in a $1 million insurance plan, as well. But owners will have to accept the idea that they might occasionally find a renter stuck in traffic or simply not back when expected. And there's the reality that owners won't be able to use their own cars to store child seats, beach bags or soccer balls.
In its early years, Turo actually partnered with General Motors' OnStar telematics subsidiary. That relationship ended in 2013. Now, OnStar will be a critical part of the Maven peer-to-peer project. All new GM vehicles sold in the U.S. in recent years have been equipped with OnStar and built-in 4G Wi-Fi.
When a Maven customer is ready to pick up a vehicle, OnStar signals the vehicle to unlock its doors and lets the user turn the car on with the smartphone app. Owners who sign up will have their cars modified to allow the same functionality.
GM has big plans for Maven, the service is expected to start using autonomous versions of GM's Chevrolet Bolt EV as early as 2019.
PSA, the French parent of Peugeot and Citroen, also has launched a car-sharing service out of Los Angeles International Airport. It eventually plans to expand and use LAX as the base for a planned return to the U.S. after a nearly three-decade absence.
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07475ec73a9be5e488f0ddbcb96743df | https://www.cnbc.com/2018/07/27/oregon-republican-lori-stegmann-becomes-democrat-citing-trumpi-can.html | 'I cannot condone the misogyny, the racism': Oregon Republican becomes Democrat, citing Trump | 'I cannot condone the misogyny, the racism': Oregon Republican becomes Democrat, citing Trump
Lori Stegmann Republican commissioner in northwest Oregon Source: YouTube
A devout Republican commissioner in northwest Oregon says she can no longer stand by the party because of Trump's "racist tactics" and changed her political affiliation to become a Democrat.
Lori Stegmann left a long explanation on her Facebook page on Wednesday for her sudden choice after spending her entire adult life as a conservative. She chronicled her love of conservative leaders over the years and her start in the U.S. as an orphan and immigrant from South Korea.
Stegmann explained to her constituents in Multnomah County, which encompasses Portland, that she didn't want to leave the party but "it became impossible for me to stay."
"I have not changed but the Republican party clearly has," Stegmann said in her message. "There's too much at stake in our country right now and we have to speak out. As a woman, a business owner, a mother, an immigrant, and a minority I cannot condone the misogyny, the racism, and the unethical and immoral behavior of the current administration."
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In an interview with USA TODAY on Thursday, Stegmann said the response she got from her community — and the nation — was swift, and mostly positive.
"It was incredible," she said. "I feel like I struck a nerve because so many people told me 'That's what I'm feeling,' and 'You're right, the Republican party I joined has changed.'"
She said her tipping point came with the Trump administration's zero-tolerance policy on immigration, which led to thousands of children being separated from their families.
"I've been so blessed," Stegmann said of her life as an immigrant. "Then to see the rhetoric coming from the Trump Administration dehumanizing immigrants. These are people like me and what he is spouting is not what the United States is about, what it has always stood for."
Stegmann summed up much of her reasoning for leaving the party to President Donald Trump and the policies of his administration. She said while she had never liked the business mogul-turned politician, seeing the lack of resistance from the Republican party made it hard to stay.
She said it takes courage to stand up to those in power and to stand up for what you believe, but she hopes her story might embolden others, including Republican leadership.
"I do think as being a good friend includes holding a mirror up to someone when they're wrong. I would like the Republican party to hold a mirror up to the Trump administration and the tyranny he's wrecked on our nation," Stegmann said. "I hope they speak out and I hope more people will stand up for what they believe."
In her post on Facebook, she said the president "has emboldened a dark side of our country" and while becoming a Democrat was a change, it wouldn't change beliefs or work.
"I am still the same person, I still vote my mind and conscience," she said in the post. "I believe our world needs more people who feel empowered and who can think for themselves, and stand up to the bullies of the world."
While party switches aren't incredibly common, especially in higher branches in government, the governor of West Virginia surprised many when he announced he was switching parties and would become a Republican.
Gov. Jim Justice made the announcement last year alongside President Trump at a rally in the state.
The party switches, combined with a large number of conservative lawmakers resigned amid scandal or retired, could put more pressure on the November midterms.
Republicans are vying to keep their majority of both the House and Senate in Congress as Democrats battle for control.
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df78d94d000a453916574a02a8a87895 | https://www.cnbc.com/2018/07/27/pge-looks-to-offload-more-wildfire-financial-risk-to-insurers.html | PG&E looks to offload more wildfire financial risk to insurers, capital markets | PG&E looks to offload more wildfire financial risk to insurers, capital markets
Firefighters assess the scene as a house burns in the Napa wine region of California on October 9, 2017, as multiple wind-driven fires continue to ravage the area burning structures and causing widespread evacuations.Josh Edelson | AFP | Getty Images
PG&E, already facing liability for several major wildfires in Northern California last October, told investors Thursday that its insurance premium costs are significantly higher than just a few years ago and it plans to transfer some of the financial risk to insurance and capital markets. The utility holding company said it expects to have agreements for new risk coverage executed in the coming days.
At the same time, PG&E said that it has experienced credit rating downgrades from three major rating agencies, raising the possibility of higher financing costs and cautioned that it may have to scale back on some of the utility's clean energy projects. The company also described how its extensive fleet of airplanes and helicopters is helping during wildfire season in detection and fire response efforts.
In remarks during the company's second-quarter earnings conference call Thursday, PG&E CEO Geisha Williams said the utility is "seeing negative impacts in the insurance markets as providers are adjusting to the increased frequency and severity of wildfires across the state, coupled with the unsustainable strict liability standard."
The CEO also pressed again for California lawmakers to overhaul state laws involving utility wildfire liability but largely dismissed a plan by Gov. Jerry Brown that partly reduces financial liability as "insufficient." Williams previously used investor calls to make a case for the need to reform how the state deals with wildfires, including utility liability.
"Another fire season is upon us and we've already seen several sizable fires across the western United States and of course here in California," Williams said. "In the same way that we need to take action to make our states, communities and infrastructure more resilient, it's critical that we address our public policies."
Cal Fire has pinned the blame on PG&E for at least 16 wildfires in last year's so-called October Fire Siege in Northern California, including some blazes with fatalities.
The San Francisco-based utility took a $2.5 billion noncash charge in the April-June quarter for 14 of the 16 wildfires, the state agency concluded. That contributed to PG&E posting a net loss of nearly $1 billion for the second quarter.
Still, there's other blazes from the October firestorm that are being investigated, including the so-called Tubbs fire in Santa Rosa that destroyed entire neighborhoods and was blamed for 22 deaths. A Cal Fire official said this week there's no firm date on when the agency plans to release findings for the cause of the Tubbs fire.
Fitch Ratings previously estimated PG&E could face upward of $15 billion in financial exposure from October's wildfires given the state liability laws and scale of the disaster, which destroyed or damaged about 10,000 homes and resulted in 44 fatalities.
Utilities in California face liability under what's known as inverse condemnation as well as for negligence claims for wildfires and other damaging incidents caused by such things as power lines or other utility equipment. There are state regulations requiring strict vegetation management practices by utilities, and they include standards for keeping vegetation clear of power lines.
In June, Cal Fire said its investigators determined that a dozen wildfires in six counties, including the Nuns, Redwood and Atlas fires, were caused by PG&E's "electric power and distribution lines, conductors and the failure of power poles." There were nine fatalities linked to the Redwood fire, which Cal Fire concluded "started in two locations and was caused by trees or parts of trees falling onto PG&E power lines."
Before that, Cal Fire announced in May that four other wildfires in last year's October Fire Siege were due to "trees coming into contact with power lines."
In all, there were more than 100 fires during the October Fire Siege, which was in Sonoma, Napa, Mendocino, Butte, Humboldt and Lake counties. More than 11,000 firefighters from 17 states and Australia were on the lines during the peak of the October wildfires in Northern California.
A special California legislative committee on wildfire issues met Wednesday and heard from experts about wildfire prevention, climate change, preparedness and efforts to overhaul the state's inverse condemnation rules. Utilities in the state currently have more than 10 different lobbying firms and their in-house lobbyists pushing for liability reforms or other changes.
PG&E has been one of the investor-owned utilities leading the effort to change the state laws. However, some homeowners who suffered devastation during the October wildfires have been vocal opponents of it along with trial attorneys, consumer groups and the insurance industry. There also have been some lawmakers suggesting that any decision on utility liability reforms should wait until Cal Fire issues its report on the cause of the Tubbs fire — the most destructive of the October firestorms.
"The reforms we seek would not absolve investor-owned utilities from responsibility," Williams remarked Thursday on the call. "Negligence claims against PG&E can still be pursued and the California Public Utilities Commission which should retain the authority to investigate our conduct and reject any costs that are not just reasonable. But where we acted reasonably, we cannot be put in the position of being held strictly liable for damages without the ability to recover those costs."
A proposal unveiled by the governor this week would remove utilities in the state from having outright liability for wildfire damages and instead mandate that courts "balance the public benefit of the electrical infrastructure with the harm caused to private party and determine whether the utility acted reasonably." But the governor's plan also would double the maximum penalties for utilities violating safety rules and put curbs on them recovering fines or penalties from ratepayers.
"The governor's proposal as a stand-alone measure represents some progress on reforming strict liability, but it's insufficient," Williams said. "And it's important to keep in mind that this is just one element of a more comprehensive set of solutions that are needed."
There also are several proposals already in the state legislature that deal with reforming rules and regulations involving wildfires or preparing for the next disaster. One proposal that some critics have labeled a "bailout" for PG&E — Assembly bill 33 — would allow state-authorized "recovery bonds" to be issued that "securitize" the costs from the 2017 Northern California wildfire claims, and it would be backed by charges on ratepayer bills.
According to PG&E's CEO, "extreme wildfire conditions" are now the "new normal" in California. California suffered one of its most destructive and deadly wildfire seasons ever last year with October's firestorms in Northern California and December's record-setting Thomas fire in Southern California.
So far this year, the state is already trending above 2017 in terms of acreage losses and number of fires burned, according to Cal Fire.
"While we press for solutions on the legal and legislative fronts, we are not waiting," Williams said. "We are moving quickly to implement additional measures intended to further mitigate wildfire risk."
As part of the effort, the CEO said PG&E's wildfire safety operation center is up and running 24/7 during the height of the wildfire season. The company also obtained two helicopters to assist first responder and fire personnel in wildfires and the executive noted that the equipment had already been utilized in two major fire emergencies in Northern California.
Finally, PG&E said it's conducting "daily aerial fire detection patrols across thousands of miles of our service territory, to assist both state and federal agencies with early fire detection and response." The patrols involve the use of seven planes "flying daily routes over the next several months" to provide what the company called "near real-time information" to PG&E's wildfire safety center.
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0ae2d6c8317825a150677ecefca693ff | https://www.cnbc.com/2018/07/27/twenty-first-century-fox-and-walt-disney-company-shareholders-approve-.html | Disney receives shareholder approval to buy Fox assets | Disney receives shareholder approval to buy Fox assets
VIDEO1:0801:08Disney-Fox deal approved by shareholdersSquawk on the Street
Twenty-First Century Fox and Walt Disney Company shareholders have approved a deal to allow Disney to purchase the majority of Fox's assets.
The two separate shareholders' meetings, which were held on Friday morning, were among the final steps in approving the mega merger. This approval covers Fox's entertainment assets, including 39 percent of pay TV operator Sky.
Disney is offering $71.3 billion in cash and stock for the acquisition, which will include Fox's film and television studios, as well as partial ownership of Sky TV, India's Star and Hulu. The company is hoping to use the additional media assets to compete against streaming competitors like Netflix, including through a Disney-branded streaming service slated to launch in 2019, a separate sports subscription and Hulu.
"Combining the 21CF businesses with Disney and establishing new 'Fox' will unlock significant value for our shareholders," 21st Century Fox executive chairman Rupert Murdoch said in a statement. "We are grateful to our shareholders for approving this transaction. I want to thank all of our executives and colleagues for their enormous contributions in building 21st Century Fox over the past decades. With their help, we expect the enlarged Disney and new 'Fox' companies will be preeminent in the entertainment and media industries."
The fate of the rest of Sky is still up in the air as Fox entertains offers from other parties, including Comcast which has the current highest bid at $34 billion.
Disney won U.S. antitrust approval on June 27, on the condition that it would sell Fox's sports regional networks. However, it still needs nods from international governments, including the European Union and China.
"We remain grateful to Rupert Murdoch and to the rest of the 21st Century Fox board for entrusting us with the future of these extraordinary businesses, and look forward to welcoming 21st Century Fox's stellar talent to Disney and ultimately integrating our businesses to provide consumers around the world with more appealing content and entertainment options," Iger said in a statement.
Note: CNBC parent company NBCUniversal is owned by Comcast.
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608c08ef65c299cded4f0bb4c7e491ab | https://www.cnbc.com/2018/07/27/twitter-earnings-q2-2018.html | Twitter shares experience worst single day percentage drop since 2014 after reporting declining monthly active users | Twitter shares experience worst single day percentage drop since 2014 after reporting declining monthly active users
VIDEO3:4703:47Twitter plunges 20 percent: Do you go bull or bear?Power Lunch
Twitter shares fell more than 20 percent Friday after the company reported a decline in monthly active users and weak guidance.
Twitter reported second-quarter earnings before the bell on Friday:
Earnings per share: 17 cents vs. 17 cents, according to a Thomson Reuters consensus estimateRevenue: $711 million vs. $696.2 million, according to a Thomson Reuters consensus estimateMonthly active users (MAUs): 335 million vs. 338.5 million, according to StreetAccount and FactSet estimate
Shares opened down 14 percent. Today's losses mark the worst single day percentage drop since 2014 for the company, and the second worst in Twitter's history.
The company issued weak guidance as well, with adjusted EBITDA between $215 million and $235 million for the third quarter. The company expects stock based compensation expenses to be in a range of $300 million to $350 million for the full year, down from a range of $350 million to $450 million previously expected. Capital expenditures will be in a range of $450 million to $500 million, up from a previous forecast $375 million to $450 million.
For the last quarter, Twitter reported 336 million monthly active users. The platform blamed not moving to paid SMS carrier relationships in certain markets where users have better access to Twitter or Twitter Lite, making changes to improve the "health" of the platform and some impact from GDPR, a set of regulations in the European Union intended to protect consumer data. In total, Twitter estimates about 3 million accounts were affected by these three reasons.
Twitter removed about 70 million accounts in May and June, but Twitter chief financial officer Ned Segal said most of those were not included in its reported metrics because they were not active on the platform for 30 days or more.
Tweet
The company also recently purged fake accounts, but those changes occurred after the close of the second quarter, so it didn't affect MAUs in this report. Twitter warned MAUs could go down even more next quarter.
"As a result of our health work, decisions not to renew or move to paid SMS carrier relationships in certain markets, and our decision to allocate resources towards GDPR and health, MAU could decline on a sequential basis in Q3," it said in its shareholder letter. "Based on our current level of visibility, we expect the decline to be mid-single-digit millions of MAU."
Daily active users grew 11 percent, but the company did not break out the exact number.
Twitter revenue grew 24 percent year-over-year, with strong advertising gains. Advertising revenue was at $601 million, an increase of 23 percent year over year. The company also grew its data licensing and other revenue business, which was up 29 percent year over year.
Correction: A previous version of this story swapped the full year capital expenditure projections. Twitter is forecasting $450 million to $500 million now, but previously forecast $375 million to $450 million last quarter.
VIDEO2:2202:22Twitter sinks on user miss
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63fd2f9c52c62cbe8c2a6c83b6c1f1aa | https://www.cnbc.com/2018/07/29/bmw-to-raise-prices-of-two-us-made-suv-models-in-china.html | BMW to raise prices of two US-made SUV models in China | BMW to raise prices of two US-made SUV models in China
BMW M Series X5 and X6 (in blue) at the 2014 L.A. Auto Show.Justin Solomon | CNBC
German carmaker BMW said it will raise the prices of two U.S.-made crossover sport-utility vehicles in China to cope with the additional cost of tariffs on U.S. car imports into the world's biggest auto market.
In a move due to take effect on Monday, BMW said in a statement to Reuters over the weekend that it will increase maker-suggested retail prices of the popular, relatively high-margin X5 and X6 SUV models by 4 percent to 7 percent.
The rates of increase suggest that BMW is willing to absorb much of the higher costs stemming from bringing the SUVs to China from its factory in South Carolina, underscoring the fierce competition among luxury car brands in China.
BMW's move comes after China imposed new tariffs earlier this month on about $34 billion of U.S. imports, from soybeans and cars to lobsters, as part of a widening trade row.
Beijing, which this year cut tariffs on all automobiles imported into China, slapped an additional 25 percent levy on U.S.-made cars as of July 6. As a result, China now levies a 40 percent import duty on all cars imported from the United States.
"BMW stands for free (trade) but can't stand still without taking actions to respond to the market changes," a BMW spokeswoman said in an email message to Reuters.
BMW imports X4, X5 and X6 crossover SUV models from the United States for sale in China where demand for SUVs has been booming. Last year, the German automaker shipped more than 100,000 vehicles from the United States to China.
The company made no reference to pricing of its X4 model.
BMW's decision to absorb much of the impact of the higher tariffs echoes an earlier move by U.S. carmaker Ford Motor Co, which said it would not increase its prices for now in an effort to sustain its business momentum.
China-based car dealers told Reuters that German rival Mercedes Benz, operated by Daimler AG, moderately raised the price in mid-July of its GLE, a sporty midsize SUV produced in the state of Alabama, in China.
A Daimler spokeswoman referred Reuters to comments made by the company last week.
Daimler's chief executive Dieter Zetsche said last Thursday the car maker was looking at ways to mitigate the impact of the trade war. This would include a review of whether to shift some U.S. production to China.
Daimler also said last week its 2018 pre-tax profits would fall from last year because the new Chinese import tariffs would hurt sales of Mercedes-Benz SUVs.
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039117bb737e0ce904f52661289e6b99 | https://www.cnbc.com/2018/07/30/google-kent-walker-svp-of-global-affairs.html | Google just promoted its top lawyer to run global affairs | Google just promoted its top lawyer to run global affairs
Kent Walker speaks at a "Grow with Google" launch event in Cleveland.via Google
As big tech companies face increased scrutiny at home and abroad, Google's general counsel just got a new, bigger role.
The company has promoted senior vice president and general counsel Kent Walker to senior vice president of global affairs to oversee its policy, legal, trust and safety, and corporate philanthropy teams.
The company announced the news to employees on Monday.
Walker will publicly represent the company on a range of broader issues like the future of work, artificial intelligence, and the role of tech companies in society.
In the last year, Google, Facebook, and Twitter have all been summoned to Capital Hill to discuss issues like data privacy and bias. Meanwhile, the European Union just slapped Google with a record-breaking $5 billion fine for competition abuses related to its Android phone software.
Internally, Walker has already been involved in many of the activities that his new role entails. He weighed in on the crafting the ethical principles for artificial intelligence that Google published in June, following months of controversy about a Google's partnership with the Pentagon to use AI to analyze drone footage, and revently gave a speech advocating for global surveillance law reform.
In this more public-facing position, his role will be similar to how former CEO Eric Schmidt often represented Google's interests to governments, before he stepped down from his executive chairman role last December. It's also similar to the role Brad Smith plays for Microsoft.
Walker will now lead a team that includes Karan Bhatia, Google's head of policy, Jacquelline Fuller, who runs its philanthropy arm Google.org, and Kristie Canegallo, who recently joined as Google's head of trust and safety. Canegallo served on the National Security Council staff under Presidents Bush and Obama, and was Obama's deputy chief of staff from 2014 to 2017.
Walker's previous role as general counsel managing Google's legal team has not yet been filled.
VIDEO5:0105:01EU Commissioner Vestager: Google must stop illegal behaviorSquawk on the Street
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359782113f40d6873f147bb80e5ab7c9 | https://www.cnbc.com/2018/07/30/merkels-conservatives-hit-12-year-low-in-german-poll.html | Merkel's conservatives hit 12-year low in German poll | Merkel's conservatives hit 12-year low in German poll
German Chancellor Angela Merkel, leader of the conservative Christian Democratic Union (CDU), gives a press conference in Berlin on February 7, 2018.Tobias Schwarz | AFP | Getty Images
Support for German Chancellor Angela Merkel's conservative bloc, trying to move beyond a bitter dispute over migrant policy that threatened the coalition, has fallen to its lowest level since 2006, a poll showed on Sunday.
The Emnid poll published in Bild am Sonntag showed Merkel's Christian Democrats and their sister party, Bavaria's Christian Social Union (CSU), down one percentage point at 29 percent. That compares with 33 percent in the September election.
The CSU faces a tough regional election in October with polls showing it could lose its absolute majority in Bavaria.
The Social Democrats (SPD), who share power with the conservatives in Merkel's coalition, failed to capitalise on those losses, also falling one point to 18 percent.
The far-right Alternative for Germany (AfD) was unchanged at 15 percent while the Greens rose 2 points to 14 percent, their best showing this year, according to Bild am Sonntag.
Emnid gave no explanation for the changes.
About a month ago, Merkel's coalition came close to collapse due to fundamental differences on migrant policy with her Bavarian partners who wanted tighter national border controls, which she rejected. A face-saving compromise was reached in early July but underlying tensions linger.
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d27eb1bf92059ba784ec3b0830664f14 | https://www.cnbc.com/2018/07/30/pompeo-confident-that-americans-would-invest-in-an-open-and-rule-ba.html | Pompeo 'confident' that Americans would invest in an 'open and rule-based North Korea' | Pompeo 'confident' that Americans would invest in an 'open and rule-based North Korea'
CIA Director Mike Pompeo testifies during a Senate Intelligence Committee hearing on the threats the U.S. is facing worldwide at the U.S. Capitol in Washington, USA on February 13, 2018.Samuel Corum | Anadolu Agency | Getty Images
Secretary of State Mike Pompeo said on Monday that Americans would invest in North Korea if the hermit kingdom opened its doors to private investment.
"I am confident there are Americans who would want to invest in an open and rule-based North Korea," Pompeo said in an interview with CNBC's Michelle Caruso-Cabrera.
"We've told Chairman Kim: If we can denuclearize your country, there is a brighter future for the North Korean people," Pompeo said.
Trump and North Korean Leader Kim Jong Un signed an agreement last month committing to the "complete denuclearization of the Korean Peninsula," though experts have debated the significance of the brief accord.
Pompeo has previously said that private U.S. firms could be permitted to invest in a denuclearized North Korea, suggesting possible investments in agriculture and energy.
Pompeo's CNBC interview came hours after the secretary of state announced $113 million in new investments across the Indo-Pacific region, which includes North Korea.
"We are convinced that American engagement in the Indo-Pacific region benefits all countries in that region," Pompeo said Monday. "We want it to be free. We want it to be open."
VIDEO7:4507:45Secretary of State Mike Pompeo on Iran, trade and North KoreaPolitics
Pompeo said the United States had discussed with Kim ways to grow the North Korean economy, stressing a "rule-based system" and the benefits of foreign direct investment.
The investments across the region are widely seen as the Trump administration's response to China's vast infrastructure spending across Asia, Europe and Africa. Pompeo said Monday that the U.S. is not retaliating against the Chinese, though he did say the U.S. would "oppose any country" that sought to control the region.
The Trump administration has had a rocky relationship with China, facing off against the country on trade and China's actions in the South China Sea. Despite the friction, Trump has maintained a positive relationship with Chinese president Xi Jinping and said in April that the two "will always be friends" despite their disagreements on trade.
China is North Korea's only major trading partner and has played an on-again-off-again role in assisting the Trump administration's nuclear negotiations with the country.
Earlier this month, the president suggested that China may be pushing North Korea to break its agreement with the United States.
Trump wrote in a post on Twitter that he had "confidence that Kim Jong Un will honor the contract we signed" but suggested that China may "be exerting negative pressure on a deal because of our posture on Chinese Trade."
"Hope Not!" the president wrote.
Trump tweet
The interview Monday came before Pompeo's planned visit to Malaysia, Singapore and Indonesia later in the week.
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60848221b42a48feca2d1c90a8ba4c64 | https://www.cnbc.com/2018/07/30/tech-stock-800-billion.html | Tech stock tailspin wipes over $80 billion in value from top companies | Tech stock tailspin wipes over $80 billion in value from top companies
JTgray| iStock | Getty Images
After leading the stock market's rally to new heights this year, shares of technology companies plunged on Monday, with the 10 most valuabe U.S. tech companies losing $82.7 billion of value.
Amazon fell by $18.6 billion and Microsoft by $17.7 billion. Among the 10 highest valued companies in the sector, only Intel rose on Monday, closing up by just 1 cent.
Facebook continued a steep slide that started after its earnings report last week, dropping 2.2 percent on Monday, and slashing $11.1 billion from its market capitalization. Netflix had the biggest percentage drop among the top 10, falling 5.7 percent and losing $8.8 billion in value
VIDEO4:0004:00Should you be worried about F.A.N.G. dominance?Worldwide Exchange
Investors are showing skittishness towards the stocks that have most outperformed the market lately. Tech stocks have been such standouts that the five most valuable U.S. companies all come from that sector and are located between Silicon Valley and Seattle.
Three-quarters of the companies in the Nasdaq 100 Index fell. The Standard & Poor's 500 technology group, which has gained more than twice as much in the past year as the broader S&P 500, dropped 1.8 percent on Monday.
10 most valuable U.S. tech companies
Company% changeMarket cap changeApple(-) 1.1%(-) $5.3 blnAmazon(-) 2.1%(-) $18.6 blnAlphabet(-) 1.8%(-) $15.9 blnMicrosoft(-) 2.2%(-) $17.7 blnFacebook(-) 2.2%(-) $11.1 blnIntel(+) .02%(+) $46.1 mlnCisco(-) 0.9%(-) $1.8 blnOracle(-) 1.9%(-) $3.6 blnNetflix(-) 5.7%(-) $8.8 bln
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7c90f2ad75bcb637420b0ed8a67b20d8 | https://www.cnbc.com/2018/07/30/twitter-shares-fall-again-as-wall-street-worries-over-user-growth.html | Twitter shares lose over one-quarter of their value in two days as Wall Street worries about the social media company’s user growth | Twitter shares lose over one-quarter of their value in two days as Wall Street worries about the social media company’s user growth
Jack Dorsey, CEO of TwitterLucas Jackson | Reuters
Several Wall Street firms are cautioning their clients about the prospects for Twitter shares, saying the social media company's stock will not outperform until user growth returns.
On Friday the company posted slightly lower-than-expected second-quarter monthly active user (MAU) numbers. But the bigger disappointment was Twitter's guidance for the third quarter, when it forecasts a decline of "mid-single-digit millions" in monthly users from the second quarter.
Twitter shares fell 20.5 percent on Friday after the company earnings report. The stock fell another 8 percent Monday, resulting in a nearly 27 percent loss over two days.
Bank of America Merrill Lynch reiterated its underperform rating for Twitter shares, citing the company's forecast for a decline in users.
"Slight 2Q beat [is] overshadowed by outlook for slowing growth," analyst Justin Post said in a note to clients Monday. The "outlook suggests revenue growth rates may have peaked, monthly users could decline, and platform health initiatives will impact margins, and we would expect less ongoing optimism for continued financial upside in the stock."
Post reiterated his $27 price target for Twitter shares, representing 21 percent downside to Friday's close.
One Wall Street analyst said investors should avoid Twitter shares until user growth returns.
"We believe upside to current levels would require growth in the overall user base, which we see no evidence of at this point," KeyBanc Capital Markets analyst Andy Hargreaves said in a note to clients Friday.
Hargreaves reaffirmed his sector weight rating for Twitter shares and said his "fair value" for the stock is $32.
Stifel praised Twitter management for its initiative to clean up the platform but also doesn't see much upside for its shares.
"With everything going on in the world (and with Twitter's peers), it's hard to fault Twitter for prioritizing the long-term health and viability of its platform for public conversation, but it's even more difficult to justify why investors should own the stock as it goes through this period," Stifel analyst John Egbert said in a note to clients Friday.
Egbert reiterated his hold rating and raised his price target to $30 from $27 for Twitter shares.
To be sure, not every analyst is giving up on Twitter's stock.
J.P. Morgan analyst Doug Anmuth told his clients Monday to "buy the selloff" in Twitter shares.
"Slightly light 2Q results and the below-consensus 3Q outlook were clearly disappointing, and there is somewhat of a reset on numbers coming out of the quarter. However, we do not believe that Twitter's underlying fundamentals have changed," he said.
Anmuth reiterated his overweight rating for Twitter shares and lowered his price target to $45 from $50 for the company's stock.
Twitter did not immediately respond to a request for comment.
Disclaimer
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c8d3909d24f960b48c0cec1b16524868 | https://www.cnbc.com/2018/07/30/uk-new-foreign-minister-jeremy-hunt-in-china-for-first-overseas-visit.html | UK's new foreign minister in China for first overseas visit | UK's new foreign minister in China for first overseas visit
British Foreign Secretary Jeremy Hunt speaks to the media in Berlin, Germany.Sean Gallup | Getty Images
British Foreign Secretary Jeremy Hunt will meet his Chinese counterpart in Beijing on Monday to discuss cooperation between the two countries on his first major overseas trip since he replaced Boris Johnson earlier this month.
Hunt and Wang Yi, China's Minister of Foreign Affairs, are expected to discuss free trade, enforcing sanctions on North Korea and how Britain and China can work together on global challenges such as climate change, Britain's Foreign Office said.
Speaking ahead of the visit, Hunt said that as Britain leaves the European Union it was committed to deepening its partnership with China.
"The UK-China Strategic Dialogue is an important opportunity to intensify our cooperation on shared challenges in international affairs, ranging from global free trade to non-proliferation and environmental challenges, under the UK-China Global Partnership and 'Golden Era' for UK-China relations," he said.
Britain is trying to reinvent itself as a global trading nation after it voted in 2016 to leave the EU, and China, the world's second largest economy, is high on the list of countries with which it wants to sign a free trade agreement.
Hunt said he would seek to build on Prime Minister Theresa May's visit to China in February, when she secured commercial deals worth $12 billion.
His predecessor quit earlier this month in protest at the government's plan to maintain a close trading relationship with the European Union after Brexit, a strategy that Johnson said would make it much more difficult to do free trade deals.
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1017ee1ce2a7c766856c474a0ed2cb7f | https://www.cnbc.com/2018/07/31/a-rush-to-block-downloadable-plans-for-3-d-printed-guns.html | A rush to block downloadable plans for 3-D printed guns | A rush to block downloadable plans for 3-D printed guns
Pennsylvania Attorney General Josh Shapiro, right, accompanied by Maine Attorney General Janet Mills, left, speaks at a news conference near the White House, Monday, Feb. 26, 2018 in Washington. Andrew Harnik | AP
Gun control proponents and state officials are racing the clock to try to block blueprints to make guns from 3-D printers from going online Wednesday.
The varied efforts, in courthouses and legislatures, are aimed at Defense Distributed, a Texas-based nonprofit organization that won permission last month from the State Department to post schematics for homemade firearms. The largely plastic guns would be invisible to background checks and untraceable by law enforcement.
On Monday, nine states and the District of Columbia filed a joint lawsuit in federal court in Seattle calling on the Trump administration to stop the plans from being posted, and seeking a nationwide temporary restraining order. The action was filed by Bob Ferguson, the attorney general of Washington State, who said, "If the Trump administration won't keep us safe, we will."
Read more from The New York Times:
Where guns go to be reincarnated
'Downloadable gun' clears a legal obstacle, and activists are alarmed
Waymo teams up with Walmart, Avis and others for short driverless rides
Joining were attorneys general from California, Connecticut, Maryland, Massachusetts, New Jersey, New York, Oregon and Pennsylvania.
President Trump said on Tuesday that these guns did not "seem to make much sense." In a Twitter post, Mr. Trump said he was looking into the matter and had already spoken to the National Rifle Association.
@realDonaldTrump: I am looking into 3-D Plastic Guns being sold to the public. Already spoke to NRA, doesn't seem to make much sense!
Separately, 21 state attorneys general sent a letter to the attorney general, Jeff Sessions, and the secretary of state, Mike Pompeo on Monday, saying that the State Department's decision was "deeply dangerous and could have an unprecedented impact on public safety."
In Pennsylvania, state officials on Sunday won a temporary agreement from Defense Distributed to bar state residents from downloading the plans.
Josh Shapiro, the Pennsylvania attorney general, said the idea of publishing how-to manuals for printed guns is "an obscene proposition" that "may seem like a joke, based on how outrageous it is," he wrote in a series of posts on Twitter on Sunday.
"We will do whatever is necessary to ensure that people can't just print a deadly weapon on a whim," he wrote. "Once they are out on the streets of PA, we'll never get them back."
But Cody Wilson, who founded Defense Distributed, said he would file a motion to free his company from the agreement.
"I'm not worried for me, I'm worried for the people of Pennsylvania, which is creating bad laws for their citizens," Mr. Wilson said on Monday. "Honestly, it's kind of sad."
The battle dates to 2013, when the State Department ordered Mr. Wilson to remove from his website plans for making guns with a 3-D printer, saying that they violated export regulations dealing with sensitive military hardware and technology.
Mr. Wilson sued in 2015, arguing that his weapons' plans were a form of speech and that his First Amendment rights were being stifled. In June, the government entered into what it called a voluntary settlement of the case following negotiations, and agreed to pay nearly $40,000 of Mr. Wilson's legal costs. Mr. Wilson said he would make the plans available on Aug. 1 — the day, his website said, when "the age of the downloadable gun formally begins."
In fact, the site began offering the plans late last week, and by early Monday evening, blueprints for 3-D printed AR-15 semiautomatic rifles had been downloaded more than 2,500 times, according to Mr. Wilson. Other gun blueprints have been available in dark corners of the internet for years.
The firearms can be printed without the serial numbers required of licensed manufacturers, leaving the guns invisible to background checks and untraceable by law enforcement, earning them the name ghost guns.
Gun control activists and law enforcement officials fear that criminals seeking guns will be able to bypass background checks, skirt age restrictions and ignore gun licensing rules. And some believe that the settlement with Mr. Wilson represented an abrupt about-face orchestrated by gun industry proponents in the Trump administration.
In New York, state lawmakers announced legislation on Monday that would require makers of ghost guns to have a gunsmith license and register the firearms. On Capitol Hill, two Democratic congressman, David Cicilline of Rhode Island and Seth Moulton of Massachusetts, said they planned to introduce a bill on Tuesday that would prohibit 3-D printed plastic guns that cannot be detected in standard security screens.
On Friday, nine senators wrote to Mr. Pompeo asking for insight into how the settlement was reached and where the money to cover Mr. Wilson's legal costs came from. The day before, more than 40 House members called for a hearing on the settlement.
But several efforts to stymie Defense Distributed have already hit roadblocks.
Last week, a federal judge in Texas denied, on procedural grounds, an emergency motion for a temporary restraining order against the company filed by three groups: Everytown for Gun Safety, the Brady Campaign to Prevent Gun Violence and the Giffords Law Center to Prevent Gun Violence.
Avery W. Gardiner, co-president of the Brady Campaign, called the decision "bitterly disappointing" but pledged that "this fight has only just begun."
Mr. Wilson has sued local officials in New Jersey and California who threatened legal action against Defense Distributed if online gun blueprints were made available in their jurisdictions.
"They've used their powers of office to threaten my legal activity with vague claims of breaking the law," Mr. Wilson told The New York Times. "It's a far reach for these state officers to say they have a power that trumps the First Amendment. They're trying to shut down a website."
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9e33a46999676eb91cb2e596f48ed7af | https://www.cnbc.com/2018/07/31/ak-steel-shares-sink-on-earnings-miss-hopeful-for-higher-steel-prices.html | AK Steel shares tumble 13 percent on earnings miss | AK Steel shares tumble 13 percent on earnings miss
Mounds of coking coal sit piled near the blast furnace at the AK Steel mill in Middletown, Ohio.Luke Sharrett | Bloomberg | Getty Images
AK Steel shares dropped on Tuesday after reporting underwhelming second-quarter earnings impacted by unforeseen operational costs on Monday.
Shares fell 13.6 percent through Tuesday's close after the steel producer reported earnings of 18 cents per share, missing a Thomson Reuters estimate of 20 cents. Still, revenue matched expectations at $1.75 billion for the quarter.
The steel maker said in the period it had $11.5 million in additional costs because of a fire at one of the company's tempering mills and a power outage caused by a lightning strike at its casting center Butler Works.
Higher steel selling prices during the quarter "more than offset" rising costs for raw materials needed for steel, according to the company's earnings release. Steel prices have increased largely because of a 25 percent tariff on imported steel announced by the Trump administration in March.
CEO Roger K. Newport said the company expects to rebound in the second half of the year on the back of stable demand from automotive plants and carbon steel shipments.
"We expect that the continued strong business environment will result in improved performance in the second half of 2018 compared to the first half and position us well for resetting a majority of our annual contracts later this year," said CEO Roger K. Newport in a statement.
The Ohio-based company produces steel products primarily for automotive, infrastructure and manufacturing purposes, with production operations in the U.S., Canada, Mexico and Western Europe.
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dcbcfd53e9763fbd8751873183902797 | https://www.cnbc.com/2018/07/31/apple-q3-2018-tariffs.html | Apple CEO Tim Cook: Tariffs can have 'unintended consequences' for consumers and the economy | Apple CEO Tim Cook: Tariffs can have 'unintended consequences' for consumers and the economy
Inside an Apple Store in Hong Kong. Marcio Rodrigo | S3studio | Getty Images
Apple reported $9.55 billion in revenue from China, along with its third quarter earnings report on Tuesday, making for a 19 percent jump since this time last year. But on a call with investors after Apple's third quarter earnings report, investors expressed concern that a recent round of proposed tariffs could impact Apple's future pricing and market share in China.
Apple CEO Tim Cook reiterated the company's position that tariffs can have "unintended consequences" for consumers and the economy, and are generally not the right approach for modernizing U.S.-China relations, but glossed over what if any impact the new set of tariffs on $200 billion in goods could have on Apple products.
"...The trade relationships and agreements that the U.S. has between the U.S. and other major economies are very complex, and it's clear that several are in need of modernizing, but we think that in the vast majority of situations that tariffs are not the approach to doing that," Cook said on a call with investors.
VIDEO4:5104:51Loup Ventures' Gene Munster grades Apple earningsFast Money
Cook went on to say the company would evaluate potential consequences of the new tariffs and submit comments for review to the administration.
Previously, the New York Times reported U.S. President Donald Trump told Apple CEO Tim Cook that the U.S. government would not levy tariffs on iPhones assembled in China.
Whereas smartphones and laptops faced little danger of import tariffs, the latest round of U.S. tariffs on $200 billion in Chinese goods were projected to hit health trackers, including the Apple Watch.
The July rulings named Apple's watch, several Fitbit activity trackers and connected speakers from Sonos, sparking fear those companies may have to consider price hikes. If it goes into effect this fall, Apple could face a 10 percent tariff on some devices.
"There is an inescapable mutuality between the U.S. and China that each country can only prosper if the other does. And, of course, the world needs both the U.S. and China to do well for the world to do well. Like I said, I can't predict the future but I am optimistic the countries get through this and we are hoping that calm heads prevail," Cook said on the call.
Apple's third quarter revenue from China represents a 19 percent jump from the $8 billion the hardware technology company reported this time last year, but a 27 percent drop from the $13.02 billion Apple reported last quarter. In between the second and third quarters of 2017, Apple saw a 25 percent decline in revenue from China.
VIDEO8:5708:57Is Apple now the king of tech?Fast Money
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de7fbfc5d130c0abc1e85e603c307794 | https://www.cnbc.com/2018/07/31/bullitt-mustang-rides-again--can-mcqueens-car-restore-shine-to-ford.html | Ford’s Bullitt Mustang rides again. Can McQueen's car restore shine to faded blue oval? | Ford’s Bullitt Mustang rides again. Can McQueen's car restore shine to faded blue oval?
VIDEO3:3503:35Ford rolls out new Bullitt MustangSquawk Box
The irony is rich.
Ford, a company in turmoil that is essentially ditching the business of building cars, is looking to generate some sorely needed buzz by rolling out, you guessed it, a new car.
Then again, this is not just a new Taurus or Fusion.
It's the latest Bullitt Mustang, a version of the pony car that holds a special place in the hearts of car lovers, primarily because it was featured in one of the most famous chase scenes ever in a movie.
"Bullitt," starring Steve McQueen, came out in 1968. The scene with McQueen driving his Mustang in a high-speed pursuit through the streets of San Francisco reinforced the image of the Mustang as the ultimate in cool, at least in the late '60s and early '70s.
Fifty years later, Ford hopes to recapture a little of that magic with a new version of the Bullitt.
"The Bullitt is one of the models that helped build the Mustang reputation," said Mark Phelan, auto critic for the Detroit Free Press. "The movie is decades old, but people still see it. The Bullitt is part of the Mustang allure almost independent of the movie."
For those of us old enough to remember when McQueen and Bullitt were icons in Hollywood, seeing the new Bullit Mustang is a reminder of when muscle cars ruled the road.
Actor Steve McQueen as Frank Bullit next to a Ford Mustang 390 GT 2+2 Fastback in the movie 'Bullitt', San Francisco, 1968. Silver Screen Collection | Moviepix | Getty Images
When Ford unveiled the car at the Detroit Auto Show in January, the automaker pulled out all the stops, including having McQueen's granddaughter Molly ride on stage in one of the original models used to make the movie.
"I got emotional when I saw Molly McQueen talk about that car because it is the idea of the history of Ford where it has been a leader in categories like Mustang and F-150 not resting on its laurels," Ford CEO Jim Hackett told CNBC the night the new Bullitt Mustang was introduced.
Six months later, Hackett and his team have all but thrown in the towel when it comes to building cars and sedans, announcing in April that the company was going to stop making almost all of its car lines to focus on its popular SUVs and pickups. The Mustang was spared.
For Ford, moving away from cars is smart.
"The pressure on car sales is here to stay. That's because crossover utility vehicles have become more popular," said Jamie Albertine, auto analyst at Consumer Edge Research. "Ford is putting money behind models that are more profitable and where the company has market share strength."
Ford's also not afraid to cut its losses on some of the company's least interesting cars.
The Lincoln Town Car — commonly referred to as "your grandfather's Town Car" — was discontinued in 2011. It's also phasing out production of the Taurus, Focus, Fiesta and Fusion sedans, which Bloomberg included in a 2015 article: "The Brutal Battle of the World's Most Boring Cars."
Most of Ford's cars are considered decent, but not memorable — unlike the Mustang, analysts say.
Ivan Drury, auto analyst at Edmund's.com, said the Mustang is "so good. Any variation of it is strong," but the rest of the company's sedans are just "adequate."
"They've tried to make their sedans sexy over the years, but it's never resonated with buyers," he said.
Ford's been struggling in the meantime. Its shares are down more than 19 percent so far this year and its second-quarter profit plunged by almost 50 percent from the year before, the company said when it reported earnings last week. Executives lowered their 2018 earnings projections, due to rising commodities costs and waning demand for its sedans overseas.
Ford is looking to the Bullitt Mustang, which will be sold in limited numbers, to restore luster to a brand and company struggling to redefine itself.
"It reminds people of the heritage of the company," said Phelan. "It reminds people Ford is not just making SUVs, they are building cars you can get excited about."
— CNBC producer Meghan Reeder contributed to this article.
Correction: Mark Phelan is auto critic for the Detroit Free Press. An earlier version misstated the name of the publication.
Questions? Comments? .
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df81c4575cf0c167bb350e6cb32cf182 | https://www.cnbc.com/2018/07/31/classpass-launches-audio-fitness-app-to-grow-its-workout-class-brand.html | ClassPass breaks out of the classroom with its new audio app | ClassPass breaks out of the classroom with its new audio app
ClassPass is launching a free app with audio workouts.Source: ClassPass
ClassPass wants give users a way to work out even when they can't make it to a class.
The start-up best known for its fitness class subscription service is launching a free app loaded with audio workout tracks. Called ClassPass Go, it's ClassPass' latest attempt to diversify its business and expand its reach beyond the cities it operates in.
With the audio app, people will ideally be able to access workouts wherever they are — even if that means they're in a market where ClassPass isn't available. Yet it also means ClassPass will enter an increasingly crowded space with both start-ups like Aaptiv and established names like Peloton.
"We want this to be a product that's not just being used in big cities but also smaller towns and even globally," said ClassPass Senior Product Manager Dhaval Chadha.
ClassPass Go will initially feature cardio options — both indoor equipment such as the elliptical and outdoor options such as running and walking — high-intensity interval training, strength, yoga and meditation, Chadha said. ClassPass trainers will talk users through the moves, similar to other audio fitness apps.
Earlier this year, ClassPass introduced a video product called ClassPass Live. Subscribers receive a heart-rate monitor and a Google Chromecast so they can stream live classes or follow a pre-recorded session on their television.
ClassPass has helped fuel interest in boutique fitness by giving consumers a way to dabble in different classes at prices that are typically less expensive than buying individual ones. But the number of studios, or lack thereof, limits which markets ClassPass can enter.
"This is about getting the brand out and known and part of people's lives. Our geographic footprint is limited right now, and we want to expand outside of that and build exposure and brand awareness," Chadha said.
In offering a free app, ClassPass hopes to build brand awareness, especially in areas where the traditional offering isn't available, Chadha said. Adding digital options is becoming a common play among fitness brands with physical footprints. Just last week, CorePower Yoga unveiled its CorePower Yoga On Demand app.
Even Peloton, whose business model is slightly different but still based on physical products, launched an app earlier this summer. Its core business remains its bikes, treadmills and the subscriptions it sells to stream classes on the hardware, though like ClassPass, the digital option gives it a way to reach more people.
Since ClassPass' app is free, it won't generate any revenue, Chadha said. He anticipates possibly adding a paid premium option one day.
ClassPass overhauled its subscription business earlier this year, moving to a credit system from a flat rate for all workout classes. Some users decried the move, saying it effectively raised prices and limited the number of classes they could take.
Despite the backlash, ClassPass said the change hardly affected membership. It raised $85 million in new funding earlier this month.
VIDEO1:1101:11Fitness trackers are terrible at counting caloriesDigital Original
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a557f05899ee212d7e3af77f415349f1 | https://www.cnbc.com/2018/07/31/digital-retailers-and-foreign-brands-fill-empty-us-malls.html | Is the retail collapse over? Shopping mall owners think so. | Is the retail collapse over? Shopping mall owners think so.
Shoppers walk through Roosevelt Field Mall in Garden City, New York.Daniel Acker | Bloomberg | Getty Images
Bon-Ton, Toys R Us, Sears, Claire's and Sam's Club are just a few of the major retailers that have shut hundreds of locations altogether across the U.S. this year, leaving a glut of commercial real estate on the market.
It's allowed the few retailers that are still expanding as well as some "e-tailers" looking to plant some roots take advantage of the empty space and cheaper leases.
The new tenants, filling some of the millions of square feet of retail space that went dark last year, have helped to ease concerns about an uncertain 2018 for shopping center owners. The real estate companies that have reported second-quarter earnings say the decline in occupancy rates that dragged on some results last year has at least stabilized. Simon Property Group, a real estate investment trust that owns some of the most profitable malls and premium outlets in America, went so far as to hike its full-year outlook.
Ross Stores and Ulta Beauty are among the few companies that are looking to open new locations, while Dick's Sporting Goods and the parent company of TJ Maxx are looking to grow offshoots of their brands, like Field & Stream and HomeSense. Digital retailers like Warby Parker and Untuckit are currently searching for their own brick-and-mortar shops. And there has been an uptick in international brands like Uniqlo and Primark looking to expand in the U.S.
"We're actively negotiating deals right now with at least 20 major, national, healthy companies ranging from off-price — like Burlington, Ross, the TJX brands — all the way over to specialty grocers like Lucky's and Sprouts," DDR Corp. CEO David Lukes said on a call with analysts and investors earlier this month. Those are some of the tenants the shopping center REIT was lining up to replace vacated Toys R Us stores. DDR owns more than 200 open-air shopping centers across the U.S. with anchors like Trader Joe's, Bed Bath & Beyond and Five Below.
Kimco, another shopping center REIT that had 22 Toys R Us stores before the retailer went bankrupt in 2017 and closed all of its stores this year, said it has already signed new deals for seven of those spaces, declining to say which companies will be moving in.
"These efforts have produced significant interest from major retailers in off-price, furniture, fitness, specialty grocery, and arts and crafts," Kimco CEO Conor Flynn said last week.
The pace of filling those empty stores is, in fact, accelerating, according to Simon Property Group.
"We are working through the bankruptcies and putting in better retailers," CEO David Simon said on an earnings conference call Monday. "I think retailers were playing defense, and now they are playing a little more offense."
Some mall and shopping center owners are even predicting a rebound in retailers' expansion plans by the end of the year, buoyed by e-commerce brands and international start-ups.
Acadia Realty Trust CEO Ken Bernstein said the discussions with existing tenants are much different this year than last year. Acadia owns urban retail buildings in New York, San Francisco, Chicago and Boston.
"In 2017, far too many of our retailers of all different stripes were frozen. So, even if you were willing to lower your rent, there were not worthwhile conversations to be had," Bernstein said on an earnings call with analysts last week. "Fast forward to 2018, and what we're seeing — some of our well-known names are back on offense. They're disciplined about rents, but they are ready to sign leases."
Amazon's purchase of Whole Foods last year and its plans to open more Amazon Go convenience shops gave industry analysts reason to believe there's still value in having brick-and-mortar stores. Companies, however, are being more particular about where they want to expand their footprint: They want the best real estate in high-trafficked areas and typically are signing deals for shorter terms in smaller spaces.
"There are key indicators that help us predict what is going to happen" when it comes to store closures and new stores opening, Greg Maloney, president and CEO of Jones Lang LaSalle's Americas retail division, told CNBC. JLL is a commercial real estate services firm that helps landlords fill vacant spaces and retailers renegotiate their rents.
The retail industry is poised to stage a comeback after several brutal years as more consumers shifted their shopping habits online. Fewer stores are expected to close during the second half of this year. And Maloney said inventory orders for the holidays are up.
"We are looking at the buying patterns of retailers right now and they are buying at record paces," Maloney said. "Right now if it continues at this pace following, it's going to be a great holiday season."
WATCH: Kimco CEO Conor Flynn discusses trends in the retail industry ahead of the holidays
VIDEO3:1103:11Kimco Realty CEO: Retail traffic being driven by innovationPower Lunch
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b4d6da7c296bbc91468facf9a5209dc8 | https://www.cnbc.com/2018/07/31/fed-seen-keeping-interest-rates-on-hold-wednesday-but-it-is-likely-di.html | Fed seen keeping interest rates on hold Wednesday, but there's a hot debate about where it could end hiking | Fed seen keeping interest rates on hold Wednesday, but there's a hot debate about where it could end hiking
Federal Reserve Chairman Jerome Powell testifies before a House Financial Services Committee hearing on the “Semiannual Monetary Policy Report to Congress," at the Rayburn House Office Building in Washington, U.S., July 18, 2018. Mary F. Calvert | Reuters
The Fed is expected to hold interest rates steady Wednesday, but this week's meeting could be livelier than it seems because of the hot debate within the Fed about when it will reach the natural end point of its rate hiking cycle.
That discussion is likely to be a focus at the Fed's meeting and could come to light in the release of meeting minutes later in August. Some Fed watchers say the Fed is nearing a point where it may suggest it's getting close to neutral for fed funds, or the level where interest rates neither speed up nor slow down the economy.
Many Fed watchers do not expect the Fed to acknowledge any changes publicly Wednesday, but it is definitely expected to be part of the closed door discussion.
"We have virtually a 95 percent chance we have a rate hike in September, and the Fed will signal that and be very clear they have a tailwind in growth and a warming trend in inflation. They're where they want to be," said Diane Swonk, chief economist at Grant Thornton. She said Fed officials are unlikely to reveal anything new on when they could see an end to their rate hiking policy, and one wild card they have to consider is whether trade conflicts will ultimately hurt the economy.
"It certainly is a possibility that there is not complete consensus on what is the tipping point between the accommodation and tightening policy. There are many members including [New York Fed President] John Williams who believe that when they hit the fourth hike this year, they'll be moving into neutral territory," she said.
The Fed said in the minutes from its June meeting that it could reach neutral "sometime next year." The Fed also said in those minutes that it could ultimately alter the language in its statement that says "the stance of monetary policy remains accommodative."
"If they did that, that [now it] would be a market mover. The curve would probably steepen on that, and the stock market would go up a lot," said Jim Caron, fixed income portfolio manager at Morgan Stanley Investment Management. Caron said such a move would be construed as dovish, and he doesn't see the Fed moving away from that language for now.
He expects the neutral rate to be reached when the Fed rate hikes reach the 3 percent level next year, after another four hikes. It is now holding fed funds futures between 1.75 and 2.00 percent,
The Fed's discussions Tuesday and Wednesday also come against a backdrop of debate in the markets, where there continues to be disagreement over how many more rate hikes the Fed will be able to carry through. Some economists doubt the Fed will be able to hike the two more times it has forecast for this year because of the flattening of the yield curve, or the narrowing of the gap between short term Treasury yields and longer term yields, a potential sign of economic trouble.
"I think the debate is out there which is why removing 'accommodative' wouldn't be that crazy," said Tom Simons, money market economist at Jefferies. Simons said the Fed actually could suggest it's moving closer to the end of its rate hike cycle Wednesday, not by removing the language about being accommodative, but by adding the words "for now."
Mark Cabana, head of U.S. short rate strategy at Bank of America Merrill Lynch said he does not expect the Fed to change the language until it hikes rates again in September at the soonest. He said another topic up for discussion this week but not likely to be mentioned in the statement is what the Fed intends to do with its balance sheet, which it has gradually been shrinking.
Fed Chair Jerome Powell mentioned the balance sheet during recent congressional testimony. "Powell's language around that suggests it's being teed up for discussion here," Cabana said. "He said they're going to be returning to their monetary policy framework discussion in a serious way in the relatively near future."
Cabana said the Fed could mention the balance sheet in its minutes, to be released Aug. 22, and that could also be a focus at its annual Jackson Hole, Wyo. symposium on Aug. 23. The Fed is intentionally shrinking its balance sheet, inflated by quantitative easing bond purchases, by allowing maturing securities to roll off its balance sheet without replacing them.
"The subject of that symposium is changing market structure and implications for monetary policy," Cabana said. He said the Fed could send a message to markets from its Jackson Hole meeting.
"Powell's talking about the framework...that leads me to believe they're going to be shifting focus on this, especially since they raised rates they only increased the interest rate on reserves by 20 basis points, instead to 25 basis points," he said.
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9bde2bec6def04c6916f8db6438cd257 | https://www.cnbc.com/2018/07/31/good-economic-times-seen-muddled-by-tariffs-and-interest-rates.html | Trump tariffs threaten the strong economic growth and the expected market returns: CNBC Fed Survey | Trump tariffs threaten the strong economic growth and the expected market returns: CNBC Fed Survey
President Donald Trump speaks about the economy on the South Lawn of the White House on July 27, 2018, in Washington, DC. Nicholas Kamm | AFP | Getty Images
Respondents to the CNBC Fed Survey foresee good times for the economy and the stock market, but they have put an asterisk next to those predictions because of growing concerns over a trade war and monetary policy.
Growth year over year is seen rising nearly 3 percent in 2018, before dropping to 2.7 percent in 2019, and the is expected to rise about 6 percent by year-end. Inflation is seen staying low along with the unemployment rate, and the yield on the 10-year Treasury note will rise only to 3.5 percent by the end of 2019.
"Goldilocks is alive and well," wrote Marshall Acuff, managing director at Silvercrest Asset Management, in response to the survey.
But several significant clouds hang over most forecasts. Almost two-thirds of the 42 respondents, including economists, money managers and strategists, see the recent economic strength as temporary. And 53 percent peg protectionist trade policies as the biggest threat to the economy.
While 59 percent approve of President Donald Trump's handling of the economy, an equal percentage say his trade policies will reduce economic growth, and 54 percent say it will reduce employment.
"While the U.S. economy still has solid growth potential in front of it, you still get the sense that it wouldn't take much to watch it derail, with a high degree of confidence that Washington will be the cause of the derailment with its trade policies or some poor decision-making at the top," said Kevin Giddis, head of fixed income capital markets, Raymond James Financial.
VIDEO2:3002:30CNBC Fed Survey: 53% say trade protectionism biggest risk to economyPower Lunch
On average, respondents say the existing tariffs will whittle down growth only by 0.1 percentage point. But the additional tariffs threatened by the Trump administration along with possible retaliation from trading partners could reduce gross domestic product by another 0.3 percentage point.
Concerns about trade helped push up the probability of a recession in the next year to 16.8 percent, the highest in seven months though still relatively low by historical standards. Worries about Federal Reserve policy could also be playing a role.
"Rising interest rates and (balance sheet reduction) remain the biggest risk to the entire economic and market apple cart," said Peter Boockvar, chief investment officer at Bleakley Advisory Group. "A soft landing is a rare occurrence and considering the extent of the prior easing, the Fed's job challenge of achieving one is even more remote."
Nearly 70 percent of respondents see two more rate hikes this year, an increase from the June survey, and most see an additional two or three quarter-point hikes in 2019. What's more, 53 percent believe that the Fed will move rates up to a level that would explicitly slow the economy, that is, beyond neutral. The Fed Funds rate is forecast to rise to 2.9 percent in 2019 and 2020 and eventually to 3.3 percent in the long run. The average estimate for the long run is now almost 65 basis points higher than it was a year ago.
"The good news for the FOMC is that they have essentially reached their dual mandate for full employment and near 2 percent inflation," wrote Kathy Bostjancic, head of U.S. macro investor services at Oxford Economics USA. "The challenge is maintaining that nirvana, which means not tightening too much or too little."
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d29fb625c6ab48ef77ae41bed8b4d057 | https://www.cnbc.com/2018/07/31/many-americans-plan-to-buy-travel-insurance-for-international-trips-h.html | Many Americans buy travel insurance for international trips. How to know if it's right for you | Many Americans buy travel insurance for international trips. How to know if it's right for you
If your plans for your next international trip fell apart, would you get your money back?
Many Americans want to make sure the answer to that question is yes by purchasing travel insurance, according to a new survey from travel organization AAA. To that point, 38 percent of 1,003 adults who participated in a phone survey in June said they likely will buy insurance to cover future foreign trips.
People walk past a board that announces cancelled flights at LaGuardia airport on the day before Thanksgiving, in New York, Nov. 26, 2014.Carlo Allegri | Reuters
The ability to get their money back if a trip is cancelled was the top reason cited by 88 percent of those respondents.
Other reasons for opting to insure include protecting the cost of their trip; concerns for their personal health or the well-being of their family; the length of time before the trip commences; and recommendations by friends or family.
Those sentiments come as AAA members are insuring more expensive trips. In 2017, trips that were insured by AAA members were about 18 percent more expensive than the year before.
Because travel insurance policies vary, you will want to do your research, said AAA spokeswoman Julie Hall.
"It's not necessary for every type of vacation," particularly when it comes to more local domestic destinations, Hall said. "Find the policy that you are looking for the type of vacation you will be taking."
Travel insurance can help cover those unexpected — and inconvenient — situations that can crop up when you're far from home.
That includes flight delays and cancellations, lost luggage, medical emergencies and health issues.
And it can even help you in advance of your trip if your job or income suddenly fall flat before you even get to your destination.
While travel insurance may protect you, it helps to think ahead to prevent common travel mishaps before they happen.
Be sure to verify that you have your passport — and that it has not expired — well before your international trip.
Keep in mind that the expiration date on that document is misleading.
That is because you generally want to have a passport that is valid for at least six months from the date of your trip, according to Hall.
If you need to renew your passport or apply for one, be sure to leave plenty of time, as the process can take up to six weeks.
Be sure to make paper copies of all of the key documents and contents of your wallet before you leave.
Ideally, you want to leave a copy of these papers with a trusted family member or friend before you leave. Keep another copy with you, but separate from your actual wallet and passport while you travel.
Let your bank or credit card company know that you are traveling ahead of time to prevent any hassles, such as having a purchase declined, at your destination.
VIDEO3:1803:18Rental car feesAutos
Likewise, you also want to make provisions for your cell phone so that your service isn't interrupted.
Download the mobile app for your airline to keep tabs on your flight status in case of delays or cancellations.
If you are traveling abroad, sign up for the State Department's Smart Traveller Enrollment Program, which lets U.S. citizens and nationals share their travel plans with the nearest U.S. embassy or consulate.
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c8005c1d9184d4446b6fc246e7b998e1 | https://www.cnbc.com/2018/07/31/morgan-stanley-we-think-a-coming-correction-will-be-biggest-since-fe.html | Morgan Stanley: The biggest sell-off since February is coming and it's going to hit the average investor hard | Morgan Stanley: The biggest sell-off since February is coming and it's going to hit the average investor hard
VIDEO2:0302:03Will Amazon and Apple trigger a correction?Halftime Report
Morgan Stanley believes the dramatic drops in some high-flying technology stocks this month is further evidence the stock market will go lower.
"The weaker earnings beat from several Tech leaders and outright misses from Netflix and Facebook were simply additional support for our [defensive] call," chief U.S. equity strategist Michael Wilson said in a note to clients Monday.
And the average investor could suffer even more this time, Wilson said.
"We think a coming correction will be biggest since February, although it could very well have more of a negative impact on the average portfolio if it is centered on Tech, Discretionary, and small caps," the note said.
Facebook shares dropped 19 percent last Thursday, a day after it reported lower-than-expected second-quarter sales and daily active user numbers, resulting in the biggest one-day market value loss for a single U.S. stock in history. Netflix shares declined 14 percent this month through Monday after the streaming giant missed subscriber expectations for its second-quarter on July 16.
Wilson noted the relative valuation between growth and value stocks was only higher during the dot-com bubble. He also pointed out that the 10-year return disparity between the Russell 1000 Growth index over the Russell 1000 Value index is at its 96th percentile since 1980.
"Large Cap Growth stocks have outperformed US Large Cap Value stocks by an almost unprecedented amount over both the recent past and prior decade," he said. "Fighting momentum is a difficult game but when you time it right, it can very profitable. We think one of those times is now for Growth shifting to Value."
The S&P 500 fell more than 10 percent from its highs in late-January through early February as investors reacted to a stronger-than-expected jobs report and wage number, sparking concerns over future rising interest rates.
In comparison, the market is down about 1.5 percent from its monthly high on Wednesday through Monday. The strategist reiterated his 2,750 12-month target for the S&P 500, representing 2 percent downside to Monday's close.
Wilson reaffirmed his overweight ratings for utilities, energy, industrials and financials sectors, which should outperform in a more difficult market environment, he said.
Earlier this month the strategist turned defensive on the market, downgrading small-cap stocks to equal weight and lowering his rating for technology stocks to underweight. In 2017, Wilson was one of the most bullish strategists on Wall Street.
VIDEO6:5706:57Growth vs. value: Is there a market rotation coming?Halftime Report
Disclaimer
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8a1abfdc9fabe6703c0c7e39e08e9354 | https://www.forbes.com/sites/forbestechcouncil/2020/04/15/simple-tips-to-get-the-most-out-of-your-business-vpn/ | Simple Tips To Get The Most Out Of Your Business VPN | Simple Tips To Get The Most Out Of Your Business VPN
Photo: Getty
In 2020, it's commonplace for businesses to use a virtual private network (VPN) to keep their data safe from cybercriminals. However, as I've mentioned before, not all organizations are employing the best strategies to make the most of the services they use.
Too often I'll see a company that has made all the right investments in their cybersecurity infrastructure, only to compromise their data by misusing the technology. Here are five simple tips any business can implement to get the most out of their VPN and secure their online communications.
1. Don't Use A Free VPN
In general, I've found that free VPN services are not suitable for business use. They're often slow and unreliable, which can adversely affect the productivity of your workers. Free providers often make money by showing distracting ads, or worse, by collecting the data that you are trying to keep anonymous.
It's incredibly easy to find a free service, and signing up for one can be tempting for businesses operating on a tight budget, but the frustration of an inadequate VPN can far outweigh any perceived benefits.
As I've written about before, a subscription-based business VPN is much more likely to deliver reliable service over many years. And they can be surprisingly affordable.
2. Pay Annually To Save Money
If you're currently paying a monthly subscription for your VPN, you can often save money by switching to an annual payment system. Check the account settings for your provider to see if there is an option to change your billing period. Many business VPN providers offer a significant discount to customers who pay for a full year of service up front.
3. Set Up The VPN On A Router
It's very important that every employee in your company is able to access your VPN. Organization-wide access ensures that all the data your company receives and transmits is encrypted and protected from prying eyes.
Rather than installing VPN software on a single machine, you should set up your business VPN account on your workplace router. Every device connected to that router will then be protected. It also helps prevent employees from accidentally disabling the private network by tinkering with the internet settings on their work computer. Not all routers support VPNs, so it's important to ensure that the one you use offers this functionality.
4. Use A Mobile Client
Public Wi-Fi networks are extremely convenient; they allow employees to work while they spend time in airports, cafes, hotels and other public places. Unfortunately, as one Forbes contributor explained, they're notoriously insecure. A hacker who gains access to a public network can steal data that belongs to you or your customers, leaving you with the costs and hassle of handling a data breach.
Aside from the loss of sensitive information, the costs of a data breach alone can be devastating, as they may include fines from regulators, IT-related payments and a hit in your customer base as they take their business to more reliable sources.
Look for VPN providers that offer mobile clients to help your employees stay safe while they are working away from the office or traveling for business. These clients can encrypt every piece of data sent and received from a mobile device. All you need to do is ensure that your employees are trained to activate the mobile VPN client on their laptops, tablets and mobile phones.
5. Limit The Effect Of VPN Services On Battery Life
A business VPN keeps your data safe using a process called encryption, which makes it very difficult for anyone who intercepts your data to gain access to it. Encryption can be a resource-intensive process that causes an intense drain on the battery life of mobile. Running out of battery is obviously a huge deterrent to your employees' ability to be productive when they're away from the office.
There are several solutions you can use to limit the resources you need to encrypt data. One is to enable employees to turn the VPN on only when they're transmitting sensitive information. However, this option carries a high risk of human error.
A more practical solution is changing the battery and power settings on the laptop or mobile device to allow the device to operate more efficiently. You may also find that it helps to give your employees rechargeable battery packs that they can use to extend the battery life of their devices while they are traveling.
Make The Most Of Your Business VPN
It's important to ensure the security of your online data. Hopefully these tips will help you ensure that you're getting the most out of your VPN and allow your business to operate as efficiently and securely as possible.
Forbes Technology Council is an invitation-only community for world-class CIOs, CTOs and technology executives. Do I qualify?
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4190cdabbe3d9ad7ae014eff569d60ec | https://www.forbes.com/sites/forbestechcouncil/2020/04/16/16-best-practices-for-safely-upgrading-your-companys-tech-systems/?sh=7e2498ca239e | 16 Best Practices For Safely Upgrading Your Company's Tech Systems | 16 Best Practices For Safely Upgrading Your Company's Tech Systems
Photo: Getty
For reasons ranging from productivity to cybersecurity, businesses should keep their tech systems upgraded with the latest operating systems and updated hardware. Upgrading a tech system can bring much-needed improvement to speed and functionality. However, it’s important to proceed carefully to avoid disruption and data loss.
Below, 16 members of Forbes Technology Council offer tips to help tech leaders upgrade their companies’ tech systems safely and quickly.
1. Have A Proper Upgrade Strategy First
Before starting any upgrade process make sure you and your team have set up a well-thought-out strategy. Make sure you have a fully functional backup and restore it in a new environment. It’s always good to launch the new tech on a separate server, restore and migrate the data, and switch the IPs. - Gev Balyan, UCRAFT
2. Utilize No-Code Application Development
Disruption is often a result of the overreliance on code in the enterprise IT. With code, a solution to every business challenge is heavily reliant on limited IT resources. With no-code platforms, traditionally slow-moving enterprises can finally embrace startup agility while minimizing risks. - Tal Daskal, EasySend
Forbes Technology Council is an invitation-only community for world-class CIOs, CTOs and technology executives. Do I qualify?
3. Evaluate, Test, Upskill And Roll Out
Periodic technology upgrades are critical to the success of any business. We’ve defined a framework that ensures this process is smooth. First, evaluate options and identify the one that aligns with your business needs. Second, test with a small batch and assess the risks. Third, ensure the upskilling of your existing workforce to adapt to newer systems. Finally, roll out at once or in stages. - Mayank Mishra, Contentstack
4. Follow The Data Path
Big infrastructure and system upgrades that are ill-conceived and lack a clear blueprint lead to unintended catastrophes. The most important consideration while planning is to follow the data path and identify the intertwined dependencies, thereby avoiding bottlenecks ahead of time. - Venkat Thummisi, Cannon Cyber
5. Focus On Understandability
Not every application needs to become modernized, containerized and built on microservices. Some of the most important applications in the world still run on a mainframe. The ones that move to the cloud require visibility but also understandability, which comes from better access to data and code. - Shahar Fogel, Rookout
6. Use An Iterative Approach
There’s little to be gained by a “rip and replace” technology change. With increasingly open systems and an abundance of application program interfaces, most technologies can coexist and be tested for a period of time before implementing wholesale changes. Iterating is a wise choice—process by process, team by team. - Jen Grogono, uStudio
7. Implement Three-Phase Migration
To upgrade a system of record I recommend a three-phase process. First, copy all the data into the new system. Second, run both new and existing systems in parallel, writing updates to both for a month. Third, once the new system is confirmed to be correct, make a read-only archive copy of the old one and then shut it down. - Bret Piatt, Jungle Disk
8. Cover All Your Bases
It’s important to first map the critical assets and make sure they are backed up, aligning with the business continuity plan of the company. Also, be sure to evaluate the existing threats and potential risks of these upgrades. Deploying a proof of concept for new solutions in a sandbox is also a must. - Amit Bareket, Perimeter 81
9. Leverage Progressive Rollouts
Companies see the most success by striking a balance between quality and the speed at which they deploy new software and services. Approach upgrades with progressive rollouts to minimize risk. Monitor both systems and code for a full-stack view to stay ahead of potential issues no matter the cause. - Milin Desai, Sentry.io
10. Implement Proper Supporting Solutions
The best way to upgrade old tech systems without risking data loss is with solutions that are easy to implement and grant control over how data is accessed. These features will quickly ensure security and extend access to data without requiring companies to give up visibility or control. - Anurag Kahol, Bitglass
11. Integrate The Right Security Controls
IT teams struggle to identify security issues after they upgrade old tech systems, which can lead to data breaches and hefty fines. As such, the best way to upgrade old tech systems is by taking a proactive approach and simultaneously integrating the proper security controls. - Chris DeRamus, DivvyCloud
12. Ensure Your Tech Partner Has Industry-Specific Expertise
The devil is in the details. A general tech partner could unintentionally but easily miss key requirements for a specific industry. For example, electronic signature capture for retail delivery is required to ensure payment. Generalists can miss key vertical requirements. - Teesee Murray, Epicor
13. Keep Up With Updates
Upgrades can get costly. Keep up with updates and set a clear end-of-life roadmap. This will trigger a review of the current system’s status and allow an analysis of the cost of business impact due to downtime versus the cost of an upgrade. Long upgrade cycles can get too big to update and impossible to maintain. - Bruno Guicardi, CI&T
13. Understand Dependencies
When undertaking a transformation of your tech systems, you need to understand the dependencies of all applications, servers, services, etc. A holistic view of the application infrastructure through a common data model gives you that visibility and the opportunity to bring in modern capabilities. - Bob Davis, Plutora
14. Do It The Agile Way
Replacing and modernizing legacy systems is a long and cumbersome project. Along the way, business requirements will certainly change, leading to continuous scope changes. The best way to handle this is to replace legacy systems in thin vertical slices with agile practices. - Christoph Windheuser, ThoughtWorks
15. Don’t Upgrade—Start From Scratch
By far the best way to upgrade is to build a new system from scratch with your current requirements. Taking legacy systems and trying to transform them is the same as trying to remodel a 50-year-old house. You will never get what you really want. - Charles Silver, Permission.io
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ffba4518bee6cb1e77ca4cf8c4aec697 | https://www.forbes.com/sites/forbestechcouncil/2020/04/21/cloud-gaming-is-booming-but-is-the-network-ready/ | Cloud Gaming Is Booming, But Is The Network Ready? | Cloud Gaming Is Booming, But Is The Network Ready?
Photo: Getty
It’s hard to escape from the news as a global pandemic forces us to do what we can to protect ourselves and others. And as we stay home, in isolation and quarantine, an interesting trend has emerged. While we all expected network traffic to increase dramatically on the back of families working and schooling from home, what we didn’t expect is that the majority of that traffic is from online gaming. Why? Because for billions of people, gaming, at least for a short period of time, allows us to forget our worries and immerse and engage in our entertainment.
Even before the COVID-19 pandemic, cloud providers and network operators had been focused on how to take advantage of the world’s fascination with online gaming. From Google to Microsoft and NVIDIA, everyone wants a piece of the cloud gaming market.
According to Statista, the number of online console gamers is expected to grow to more than 57 million this year alone, while the market for PC online games will reach a value of roughly $33.6 billion. These gamers will demand more flexibility, mobility and freedom than ever before. As I mentioned last year in a Reuters article, "The success of cloud gaming depends heavily on the underlying network and how much controlled-latency traffic it can support during periods of peak demand," making it an ideal 5G use case.
How Does Cloud Gaming Work?
The popularity of cloud gaming has the potential to turn almost any computing device into a powerful gaming platform. Rather than being powered by hardware, such as a console, games will be streamed from the cloud via a data center or edge node that will provide the processing power.
In essence, every move made in the game, whether it is zooming past the first car on a race track or anticipating the next move in a battle scenario, is communicated between the data center, which then returns the result. As such, this will require more internet bandwidth to meet gamer expectations by managing surges in traffic without delays.
The Network Demand
The interactive nature of cloud gaming needs a network that is highly optimized. Cloud gaming relies on data being processed in real time by servers that are often located some distance away from users. This, in essence, creates the arenas for massive multiplayer games, but also makes the gamer’s experience dependent on all the other activities the network is supporting, thus creating a network challenge.
If there is network congestion and latency, this becomes a serious issue for gamers as it can be the difference between glorious victory or brutal defeat. As such, network providers must ensure their networks are equipped to handle this level of traffic surge. With edge computing, network providers can locate servers as close to gamers as possible to provide an instantaneous gaming experience. This is ideal for esports events, like the ESL Pro League, which draws millions of viewers across the globe.
When network providers can ensure a seamless experience between their public cloud and the esports event’s private cloud and network, this will help combat any latency issues and ensure that viewers have a reliable experience. When networks are faster, closer and smarter, they can help support the growth of cloud gaming.
Why Cloud Gaming Needs 5G
Cloud gaming looks likely to emerge as one of the first mainstream applications that will be optimized for and truly leverage the full power of new 5G networks. For 5G to be optimized for cloud gaming, it requires a wireline upgrade, open ecosystem and adaptive network. A high-performance wireline network interconnects 4G/5G cell sites in addition to data centers hosting content and IoT applications. Unlike previous generations, 5G implementations will be more distributed as it will take advantage of virtualization and multi-access edge computing (MEC) to support cloud gaming. As such, this requires the IP networks to be automated, lean, open and simpler for the commercial success of 5G for cloud gaming.
When 5G network solutions are built upon an open and flexible architecture using cutting-edge technologies, network providers have the ability to address immediate 4G needs while investing in 5G solutions over time. When networks leverage programmability, automation and analytics-driven intelligence across optical, OTN, Ethernet, MPLS and IP layers, it is more agile and responsive in delivering the end-to-end network performance needed for cloud gaming and the adaptability needed to handle peaks and surges. Networks will also need to deliver an ultra-low-latency experience, completely eliminating delays or lag time. This will require leveraging artificial intelligence and machine learning to know where the network is incurring the most stress and automatically reallocate network resources as needed.
As we move through these extraordinary events of 2020 into what we hope will be a normal 2021, telcos will continue to have opportunities to monetize their proximity to the cloud gaming customer. Google and Microsoft are betting heavily that their new gaming services can easily deliver and support gaming services across their infrastructures. As such, providers will need to define their value-add in the new gaming world beyond just connectivity. By utilizing network analytics, network providers will have a view of how the network is performing at any given moment so they can address any congestion and optimize the distribution of the component parts of the cloud game to provide the best user experience.
Now more than ever, when seemingly everyone is on the network, suddenly confined to their homes, an adaptive network architecture enhanced through edge computing is key to providing enough resources. With the ability to support immersive and interactive experiences, network providers have a stake in the game. So, it’s time for us to take a seat and watch how the cloud gaming boom continues to unfold. We all knew 5G was coming. Let’s see if our experiences with working, learning, entertaining, gaming and socializing from home don’t make us want it even more!
Forbes Technology Council is an invitation-only community for world-class CIOs, CTOs and technology executives. Do I qualify?
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0122d17a977b9da9fed9e21baa61ede3 | https://www.forbes.com/sites/forbestechcouncil/2020/04/22/16-smart-project-management-strategies-every-tech-leader-can-use/?sh=6497a27b2fa3 | 16 Smart Project-Management Strategies Every Tech Leader Can Use | 16 Smart Project-Management Strategies Every Tech Leader Can Use
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Task and project management is a must-have skill in the technology industry, especially for tech leaders. Most are handling multiple projects and demands on their time, so it’s important to be able to prioritize and get everything done.
As some of the top professionals in the field, the members of Forbes Technology Council have spent years cultivating their project-management skills. Below, they share their go-to project-management strategies.
1. Let your team own the projects they’re passionate about.
One management strategy is to create an organization where people apply or sign up for the projects that they are passionate about. This requires that leaders end centralized management and disperse responsibility, creating a self-managing organization. Those who are passionate about a project manage it from beginning to end, often completing projects faster and with better results. - Sergei Anikin, Pipedrive
2. Set milestones and goals as a team.
A lot of tasks we end up focusing on are more related to activity than productivity. To make sure our focus is on productive tasks, the entire organization must be aligned on the organization’s goals and the tasks everyone must do to contribute to those goals. Once everyone understands their function, setting and focusing on milestones to accomplish larger tasks leads to better progress. - Randy Watkins, Critical Start
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3. Have a central communication tool.
The first and most important step is to define the goal of the project and clarify expectations. All modern project management comes down to managing expectations. The circulatory system of modern management is communication channels. The key communication tool is a task-management system combined with a knowledge base—something like Jira with Confluence. - Dennis Turpitka, Apriorit
4. Create an Eisenhower Matrix.
I look to Eisenhower for inspiration, and I utilize an Eisenhower Matrix daily. I make four boxes with “Urgency” on the x-axis and “Importance” on the y-axis. This allows me to bucket tasks into four categories: “Urgent/Important,” “Urgent/Not Important,” “Not Urgent/Important” and “Not Urgent/Not Important.” It’s a powerful way to figure out what needs to be done when. - Michael Zaic, Wild Sky Media
5. Hold regular standup meetings.
Quite a few principles fall under the agile project-management framework, but the one I find the most useful is having regular standups. In these meetings, team members go over what they’ve done and what they’re going to do, as well as if any roadblocks are in their way. This allows employees to go over every project they’re working on to give regular updates. - Kison Patel, DealRoom
6. Manage customer expectations.
Customers are notorious for adding to the scope or making changes to what they want. One of the best ways to deal with it is by managing the customer’s expectation of what they will get. This may mean that, as a manager, you will need to tell customers that their request is out of scope and requires a modification to the contract that may affect cost and/or timelines. - Michael Hoyt, Life Cycle Engineering, Inc.
7. Treat your days like sprints.
Time management is essential. I treat my days as sprints with specific time blocks for each activity. I leave two blocks in the afternoon to return to what I need to for additional review or followup. I set specific times for emails, phone calls, meetings, etc. And, importantly, I do not let them interfere with each other. - Wesley Crook, FP Complete
8. Monitor and address positive and negative risk.
Organizations with agile projects should realign their risk perceptions. Although negative risk must be carefully managed, teams should embrace positive risk to maximize business value. Risk matrices, risk burndown charts and risk-modified user story maps should be included on agile walls and must be adjusted to help teams identify, monitor and address both positive and negative risk. - Christopher Yang, Corporate Travel Management
9. Hire smarter people and nurture new leaders.
There is no greater joy as a leader than seeing those you have nurtured surpass you in talent and success. That is your lasting legacy. Hire people smarter than you and nurture their leadership abilities. There is the old adage of, “If you want to go fast, go alone, but if you want to go far, go together.” Develop a robust team of leaders and allow them to succeed. - José Morey, Liberty BioSecurity
10. Prioritize projects that move the needle.
Tech leaders are constantly juggling multiple projects and initiatives at once. But you need to select and prioritize projects that will make the biggest difference. Nonessential projects can actually result in productivity loss. Selecting the right projects is actually a skill that comes from an understanding of business strategy combined with a data-driven approach that will impact key performance indicators. - John Shin, RSI Security
11. Leverage managed services.
If you lead an engineering or development group and your tasks include maintaining toolsets, managed services can be a godsend. The same is true if you’re a systems or application administrator. Any service provider worth their weight can take things off your plate like admin and implementation, user training, troubleshooting, support issues, and the like. - John McDonald, ClearObject
12. Maintain a culture of accountability.
Even before specific task- or project-management skills come into play, it is important to maintain a culture of accountability. Start with yourself. Meet your own commitments and admit mistakes. Define your expectations. Ask for commitments. Be open to feedback. Coach people on how to be accountable and to hold others accountable, and understand what the consequences should be for poor performance. - Steve Pao, Hillwork, LLC
13. Lay out the details ahead of time.
Describe all the details and lay down all the plans even before the project is launched. This move is often underestimated, but it can really go a long way. Laying a solid foundation for projects will ensure that you are not going to need to manage them daily. If your team knows what to do, the process will be smooth and successful. - Daria Leshchenko, SupportYourApp Inc.
14. Stop micromanaging your team.
Let your team members take full ownership of their areas of responsibility. Keep them loaded at 70% to 80% to reduce stress levels and enable creative thinking. To ensure effective delivery, avoid any kind of micromanagement and tactics control. It’s ruinous for both sides. All in all, make sure your team always understands your “what” and can bring you their “how.” - Aleksandr Galkin, Competera
15. Limit distractions during your ‘focus time.’
Multitasking is a myth. To do deeper work, you need to limit distractions. To do that, you need cultural and individual practices that allow people to go offline for chunks of time and that respect that time so that folks feel comfortable turning off distractions and digging deep. This singular and serial focus allows you to “multitask” more because you are not constantly switching tasks. - Amith Nagarajan, rasa.io
16. Implement good status-reporting practices.
As a tech leader, I need to know the high-level details of the project (schedule, timeline, whether it’s on track, if anyone needs my help removing an obstacle, etc.). That way I stay updated, know when I need to get involved and can keep my schedule moving forward. We use the Entrepreneurial Operating System to keep our status reports and meetings on track. - Thomas Griffin, OptinMonster
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6798552639e1466e9331f4cb2975f8a9 | https://www.forbes.com/sites/forbestechcouncil/2020/04/22/be-a-wartime-ceo/ | Be A Wartime CEO | Be A Wartime CEO
Photo: Getty
What makes a good leader rise to the occasion during a global crisis and drive more insight and value, and better results for their team, customers and shareholders?
As legendary Green Bay Packers head coach Vince Lombardi once said, "Leaders are made; they are not born. They are made by hard effort, which is the price which all of us must pay to achieve any goal that is worthwhile."
We are at war, and the enemy is a virus. Being a wartime CEO is not an easy task. It requires more focus, work, planning, process and dedication. But in times of crisis, it should also be easier for you to change the way you manage your business and make the tough decisions needed to drive success. Here are some of the lessons I’ve learned and what I’ve observed over the years when I’ve been asked to go in as CEO to fix and grow companies.
1. Your job is not to be a politician, but a detective
As renowned leadership authority Stephen Covey describes, “Seek first to understand, then to be understood.” Especially in times of trouble, you must understand the facts. In every part of your business, you must get down to the bottom of what is working and what is not. Trust but verify. You need to uncover clear and factual information across every aspect of your business — do not stop with the first answers you receive. Dig into the details, and look at a situation from multiple perspectives. Be sure to employ the five W’s (who, what, where, when and why), and don’t forget the sixth question: How?
2. Drive purpose with realistic optimism
Blind optimism makes people more nervous. Make sure people understand where you are going and why it matters — your true purpose. What is your team doing to make a difference? In today’s COVID-19-dominated environment, it is easier for our healthcare workers, today’s heroes, to understand how they are making a difference, but it may be tougher for you. For example, in my current role as CEO of Infrascale, a data protection company, our purpose is to treat our customers’ data like our own so customers can always access their data and run their applications, no matter the disaster.
Leaders under pressure must not rely solely on optimism. Optimism without a realistic perspective will bring doubt and even fear. Leaders in a crisis must be pragmatic, with a real understanding of all the facts before they try to communicate the truth about a situation. Remember the Stockdale Paradox in Jim Collins’ book Good to Great when he interviewed Vice Admiral James Stockdale and asked, “Who didn't make it out of Vietnam?” Stockdale replied:
“Oh, that's easy, the optimists. Oh, they were the ones who said, 'We're going to be out by Christmas.' And Christmas would come, and Christmas would go. Then they'd say, 'We're going to be out by Easter.' And Easter would come, and Easter would go. And then Thanksgiving, and then it would be Christmas again. And they died of a broken heart.”
3. Build the right plan
Once you have taken the time to drill into the details and you understand the current state of affairs in your company and market, you need to take just as much time to analyze your customers and your competition. You must remember why you are in business, what problems you are solving and why your customers need you. You must analyze your products and solutions from your customer's perspective.
As Sun Tzu states in The Art of War, “Know yourself, know your enemy.” You also need to understand your competition and what bets they are making to beat you. Only then can you build your plan on what bets you are making and why, where you are going, what your strategy is to get there, and how you will measure your results.
4. Understand the driving factors
You need to get serious about the metrics you must track on a daily, weekly, monthly and annual basis. Especially in times of crisis, you need access to real-time data to understand the trends — leading indicators that show you not only how your business is doing, but also how your customers and the market are reacting to the overall global crisis. Most importantly, are your customers using your products more or less? You will also need to understand what is working so you can invest in what is working and stop spending on what is not working.
5. You are the leader
It’s your responsibility to work with your team, build consensus, and make and own the tough decisions. As President Theodore Roosevelt once said, "In any moment of decision, the best thing you can do is the right thing, the next best thing is the wrong thing, and the worst thing you can do is nothing."
It is your responsibility to take ownership when the decisions you and your team made did not work. When things are working, take advantage of those moments to give credit where credit is due and to make sure your teams are celebrating every success.
No one wants to have to lead in crisis, and especially in a recession caused by a global pandemic, but since we are in this situation, you should take advantage of the opportunity to step up and be a CEO who wins the war.
Forbes Technology Council is an invitation-only community for world-class CIOs, CTOs and technology executives. Do I qualify?
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e7e17ed58cebb5dd1d703ae02a5ba972 | https://www.forbes.com/sites/forbestechcouncil/2020/04/27/dynamic-workforce-risk-and-the-remote-worker/ | Dynamic Workforce Risk And The Remote Worker | Dynamic Workforce Risk And The Remote Worker
Photo: Getty
Previously, I wrote of the digital risk challenges stemming from Industry 4.0 that have been brought about by disruption and transformation. Little did I know the extent of disruption that was about to descend upon us. As a result of this health crisis, the global environment has brought terms such as "distancing," "online," "remote" and "virtual" into everyday vernacular. But moving at short notice from a trusted office environment to our homes can create significant security risk.
For many remote workers, the isolation allows for better focus, concentration and productivity — if they can continue to get access to the necessary documents, applications/systems and communications. According to Owl Labs's 2018 Global State of Remote Work report, 52% of employees around the world work remotely at least once per week and regular work-at-home has grown 173% since 2005, thanks largely to technology maturation and advances.
While the internet brings many conveniences, allowing us to shop, bank and work in relative comfort, this has also contributed to the rise in digital risk through cybercrime. According to Cybersecurity Ventures, the direct damages of cybercrime are projected to cost the global economy $6 trillion, or 6.3% annually, by 2021. Therefore, cybercrime is one of the greatest risks to our global prosperity in the fourth industrial revolution.
Remote Workforce Risk
Remote working has become a normal part of many workers' lives and is one of the most desirable benefits an employer can offer. According to the aforementioned Owl Labs report, many industries now offer remote working with the top global industries being government/education, finance/insurance and technology/marketing.
For many remote workers, this means using their own personal devices and home networks to perform work tasks. This presents some of the largest risks to the worker and the business. Many personal devices lack the hardened nature of a corporate device and other security capabilities, such as encryption, auto-backups, authentication and security monitoring. The home environment is very different from the relatively secure systems/processes of the corporate environment.
Other risk factors include lack of physical exercise and mental health challenges. One significant issue with working remotely is the inability to switch off at the end of the workday (something that I'm guilty of!).
Working remotely increases the risk to any job and business — risks that range from an inability to physically secure the home office to controlling/ensuring the security of the home network.
Lastly, have you thought about access to emergency assistance if needed?
Digital Risk Today
Despite this global calamity, the cybercriminals have not stopped. Instead, they see opportunity.
There have been attempted cyberattacks and successful ones on hospitals, the U.S. Health and Human Services Department and even the World Health Organization — a vital hub for advice, research and factual reports during this current crisis.
Social engineering attacks (phishing, vishing, social media, etc.) have risen significantly. We have seen sharp rises in the registration of domain names used to masquerade as legitimate sites. There have been emails, text messages and social media posts looking to compromise people. Many contain malicious attachments or links to malicious sites, and unfortunately, these will continue to escalate.
Such attacks aim to create an emotive situation as a result of fear, anxiety, sympathy or greed. These come in many forms: unexpected money or winnings, fake charity and medical scams, fake apps and even impersonation.
For remote workers, both old and new, they must accept that being online more means generating more opportunities for cybercriminals to attack them. For some time now, cybercriminals have taken a people-centric approach to cyberattacks. Most targeted cyberattacks rely on the user to activate them, showing how the human element is prominent.
The important point here is that many of these risks are not new. You just may be more exposed to it outside of the corporate environment. Don't panic — cybercriminals have long used notable events and situations as opportunities to launch new scams (recall the point about emotive situations). Examples include major sporting events like the World Cup and Olympics, elections and even Brexit. We are certainly seeing some very creative, innovative criminal schemes in the current circumstances.
Recommendations For The Remote/Home Worker
These recommendations were composed through experience and by looking at credible guides, such as the Essential Eight Maturity Model by the Australian Cyber Security Centre (or similar in your country) and other cybersecurity standards. These best practice suggestions apply irrespective of our current environment:
1. Devices.
• Check and ensure your applications and OS are up to date for all your devices (corporate and personal).
• Implement encryption to protect sensitive data and connections, including a reputable virtual private network (VPN).
• Use a dedicated machine for work and do not share it with others.
2. Identity.
Implement multi-factor authentication. This should be mandatory. Managing end-user risk starts with having strong authentication and permits clear identification of who is logging into your corporate environment.
3. Secure your Wi-Fi/router.
• Change the default password and set a strong unique password.
• Enable network encryption — use the strongest available (e.g., WPA2).
• Enable a firewall to act as your first line of defense.
• Set up a separate guest network. Many routers allow this. This is the network your kids and other untrusted devices should use.
4. Ensure you have a backup strategy for your data.
5. Social engineering.
Click with caution. Treat unsolicited emails with caution. If unsure, do not respond. Look to your national authorities for online safety guidance (these strategies have not changed).
6. Only download apps from trusted sources.
7. Have a dedicated workspace, preferably one you can secure.
8. Establish an emergency contact.
9. Factor into your daily schedule some 'me' time for exercise and mental health.
Lastly, remember the need-to-know principle. You may be working at home but still dealing with sensitive and/or classified information — especially in conversations — that others in your household have no need or right to know.
Forbes Technology Council is an invitation-only community for world-class CIOs, CTOs and technology executives. Do I qualify?
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27923996cf6ed194b080f032359e785d | https://www.forbes.com/sites/forbestechcouncil/2020/04/27/the-time-is-now-for-customer-excellence/?sh=70e681483149 | The Time Is Now For Customer Excellence | The Time Is Now For Customer Excellence
Photo: Getty
Now is a time to secure customer trust and gain confidence that a business can deliver on its core mission. In these challenging times, brands have an obligation to add customer value while communicating with empathy. Businesses are facing a new reality as anxious customers expect superior service with safety at the forefront.
To meet these customer expectations, businesses need to focus on a new principle: customer excellence. Customer excellence, in essence, means refreshing our way of thinking about interactions. It places an emphasis beyond efforts that create surface-level, front-end changes, focusing on deep changes down to the process level, fundamentally changing how businesses act. Being able to manage and fill process gaps across an entire company lays the groundwork for leadership to clearly understand the necessary changes for improved customer relationships. By focusing on operational excellence first, and then pairing with customer experience initiatives, companies can achieve customer excellence amid trying times.
Process Knowledge Drives Excellence
In today’s uncertain business landscape, leaders need to look at the bigger picture when it comes to customer relationships, analyzing these engagements beyond the lens of interaction. We must look at interactions holistically, examining how we really engage beyond a website or through an app. Businesses should begin to track every touch point with their customers, from big-picture goals down to the smallest interactions.
Filling in all the process gaps across an organization will allow for clearer communication and give the front-end-focused customer experience projects a solid foundation. Enabling widespread communication means leaders can pull insights from across their organizations and make more informed decisions that will ultimately benefit the customers.
Understanding Customers Through Data To Make Strategic Improvements
Customer excellence is rooted in operational data. By unlocking the hidden value in data, business leaders gain operational insights into potential risks and improvement opportunities. By combining process discovery and process analysis, brands can take a collaborative approach to process improvement, giving game-changing insights into a business.
Using the information at their disposal, brands can understand how customers (and prospective customers) engage with a brand. Understanding the relationship between a customer’s experience and an organization’s operations requires documenting how the customer journey relates to business processes. This information allows for make smart process changes that streamline operations to better meet customer expectations.
Continuous Feedback for Continuous Customer Improvement
Mining process models from various IT systems on a regular basis enables continuous improvements. Rapid evaluation across any process inefficiencies helps businesses save money and time, which leads to customer excellence.
Implementing a customer experience initiative can’t be treated like a one-off project, and customers can’t be viewed as a group of people with static wants and needs. We, as brands, should be putting our customer interactions under a magnifying glass and really thinking about why customers behave the way they do.
For any initiative to be successful, companies should be constantly watching their customer bases, looking over their shoulders, in a sense, to determine the impact that a given initiative is having. Gaining a better understanding of every touch point, overall customer sentiment, and each unique persona is critical for the development of customer excellence initiatives. By collecting all this information and direct feedback, brands can react and adjust projects in real time. By taking a customer-centric approach to everything on the back end, front-end customer experience projects will be able to produce greater returns and a more meaningful long-term impact.
For many businesses, now is the time for customer excellence, but making this change is not easy. By taking a deep look at internal processes, businesses can start to implement customer-oriented changes that will ultimately lead to greater success and customer excellence. Getting processes in order is an essential first step for any brand looking to achieve customer excellence, especially during a time of crisis.
Forbes Technology Council is an invitation-only community for world-class CIOs, CTOs and technology executives. Do I qualify?
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8c260ccb613f384bed4dc969b9b78b9a | https://www.forbes.com/sites/forbestechcouncil/2020/04/28/16-strategies-for-attracting-top-tech-talent-to-your-company/?sh=5413da57535a | 16 Strategies For Attracting Top Tech Talent To Your Company | 16 Strategies For Attracting Top Tech Talent To Your Company
In a highly competitive economy, it's often difficult to attract and retain top talent. This is especially true in the ever-evolving tech industry. In a field that changes so quickly, it's hard to find good workers who also have the necessary skills for the job.
When a talented candidate reaches your pool of applicants, you may need to convince them to join your company over a competitor’s. Below, 16 members of Forbes Technology Council share some strategies you can use to successfully snag top industry talent.
1. Lead With Your Mission
Lead with mission. Here in Palo Alto, we see so many tech startups and very few have considered a mission component to their company. When an enterprise has a very clear and measurable way of showing how the world is better because of its organization, it is a lot easier to attract and retain talent. - Stephen Dalby, Gabb Wireless Inc.
2. Create The Right Culture
Creating the right culture for an organization is the key to attracting, retaining and empowering employees. Company culture can be achieved by focusing on three core areas: cultivating community, celebrating individuality and embracing possibility. By prioritizing these behaviors, tech leaders can improve retention, drive recruitment and build an environment that fosters growth and innovation. - Mike Dickerson, ClickDimensions
Forbes Technology Council is an invitation-only community for world-class CIOs, CTOs and technology executives. Do I qualify?
3. Turn Your People Into 'Superheroes'
Innovation requires diverse, top talent. To stay competitive and attract new hires, leaders must implement technologies that make jobs more dynamic and fulfilling, and allow for career growth. We invest in AI to make our people into “superheroes,” helping them augment their workflow and be better, faster and stronger at their jobs. They love how AI makes them more effective and they demand more. - Jeff Wong, EY
4. Show Them How They're Part Of The Big Picture
It’s important to share your vision for growth and how critical new employees are to accomplishing that goal. Everyone wants to feel like they are doing valuable work, making a difference and that they are part of a bigger mission. With authentic conviction, share your company vision and how the job fits into that vision, and you will win the battle for the best candidates on the market. - Sanjeev Sularia, Intelligence Node
5. Demonstrate Your Commitment To Future-Proofing Your Work Environment
Tell them: Our work environment focuses on building employee skills to stay ahead of the game. We help you build your skills by providing you with the opportunity to juggle many digital skill sets at the same time. This allows you to think critically, do the data analysis and then perform the necessary coding to solve the problem. You learn to manage the whole process from start to finish. - Leonard Kleinman, RSA Security
6. Help Them Prepare For Their Next Job
With the industry-wide headcount shortage, most organizations are recruiting straight out of college. Most graduates understand that their first job should prepare them for their next job, so having an education and elevation plan in place to make them a more valuable asset is a great recruiting tool. It will also better the employee while they're part of the company and may also breed loyalty. - Randy Watkins, Critical Start
7. Align Your Culture With Success And Winning Together
The best companies not only have competitive pay and benefits, but also have a culture and focus aligned around helping clients succeed. People want to be a part of winning teams that are prioritized and add value, but also believe in the products and services. The best candidates seek teams designed to sustainably win together. - Jason Crabtree, QOMPLX, Inc.
8. Build Out Your Career Development Program
Lack of opportunity for career growth is a common reason good employees leave companies—and it's key to attracting talent. If you don't have a solid program in place, do it now. Step up in-house training, reimburse for outside training and offer practical training opportunities to use new skills for real-world tasks. Support creative thinkers and don't hold them back with “stay in your lane” rules. - Anna Frazzetto, Harvey Nash
9. Focus On Candidates' Specific Expertise
Every role needs an entrepreneur-minded person, so it’s time we pivot away from the notion of finding a candidate that checks every box. To find and retain top talent, leaders should play to candidates’ domain expertise and not encourage them to be something they’re not. Candidates will prioritize companies that let their talent shine and give them the opportunity to help grow the company. - Sudheesh Nair, ThoughtSpot
10. Find The Overlap Between Their Goals And Your Job Opening
One strategy I use is to get a good fit between their career growth goals and the role I am working to fill. If the job is one that I need filled and at the same time, meets the immediate career goals of the candidate, they will be more likely to choose to come. - Linda Apsley, capitalone.com
11. Show Them What You're Working On
What gets people interested? Provide them with interesting work where they can show they know their field better than anyone else. So, actually show them the projects you’re working on. Can you offer that kind of unique experience? Then you don’t need to convince them. They’ll convince themselves. - Vaclav Vincalek, Future Infinitive
12. Help Bring Their Vision To Life
Any hire will always do their due diligence on the company's culture before they accept a job. Breathe growth and focus on the potential hire’s aspirations—every person is a CEO in their own heart. Understanding their vision is important. There will always be competition; however, if what a potential hire wants from their professional life can coincide with the company’s goals, it's a win. - Bhavna Juneja, Infinity, a Stamford Technology Company
13. Invest In Your Managers
The key to recruiting great people into your company is to have a great company. Invest in your managers with the right development and empowerment to create the right culture. As those managers recruit new talent, their authenticity will show through. - Steve Pao, Hillwork, LLC
14. Lay The Groundwork For Their Future
The new hires are most concerned about their future, both within and out of your company. The employers need to appeal to this concern. Ensure that they will be working and learning not only for the present moment and position, but also laying down the grounds for the future too. The more you are going to give, the more comfortable your potential hires will be with choosing you. - Daria Leshchenko, SupportYourApp Inc.
15. Demonstrate A Cultural Alignment
High salaries, good benefits and many perks are all great at attracting talent, but none are as good as company culture. What is the point of making 10-20% above market if you hate coming into work every day? Being surrounded by like-minded people that respect, encourage and motivate you is far more valuable than anything else a company can offer. - Abishek Surana Rajendra, Course Hero
16. Make Your Best Offer Up Front
For candidates, the right job is about more than just good pay. There's the work schedule, remote work possibilities, health benefits, training budgets, wellness programs and more. Present your offer up front and avoid getting ghosted for someone else. Without it, they might never come back to you and you'll have lost out on a great candidate. - Thomas Griffin, OptinMonster
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c5387fcb407088f2dea1e9b2a8d43978 | https://www.forbes.com/sites/forbestechcouncil/2020/04/30/how-to-successfully-onboard-a-remote-workforce/ | How To Successfully Onboard A Remote Workforce | How To Successfully Onboard A Remote Workforce
Photo: Getty
The new realities of the coronavirus pandemic and the social distancing orders of state and local governments have forced many businesses to transition their workforces out of the traditional office space and into the remote home office environment.
For over eight years, my company has relied exclusively on the remote home office environment for its workers and has gained extensive experience in the recruitment, onboarding and retention of these vital home remote workers in the U.S. and abroad.
We have developed a highly successful program consisting of four stages: the remote interview process, preboarding, team integration and ongoing training/employee educational development. Based on my experience, here's how you can navigate these four remote workforce onboarding stages.
The Interview Process
Over the past eight years, we have discovered that a successful onboarding program begins with a relevant and detailed job description that informs the applicant of the company's objectives and delivery methods. When creating a job description for a remote position, it’s important to be as detailed as possible regarding the responsibilities of the position, reporting structure and explicit work requirements. You will also need to pay close attention to the software tool needs and skill level for each of your remote workers to guarantee that everyone is working on the same system for efficiency and team management purposes. Interviews can be conducted via video conference using tools such as Zoom.
During the interview process, the remote applicant is further informed of detailed job responsibilities and company expectations. In each of their interviews, the remote applicant should typically meet at least three members of the team that they may be working closely with. In my experience, a remote workforce is further developed into a team when each team member has assisted in their recruitment. You can implement this interview strategy by communicating with team members and managers on specific job requirements to include in the job advertisement. I do not recommend delegating the interview to a recruiter or someone without knowledge of the job functions. Instead, involve senior members of the team in the interview process.
Preboarding
Once hired, the new employee should undergo a detailed preboarding process. This process should begin with a welcome email that provides an itinerary for the first few weeks and a management team contact to answer any questions. This new employee onboarding itinerary should map out all the necessary employee forms to complete, contact and bio information for each of their new team members, a short synopsis of department goals for the year, along with any necessary client project information.
At my company, we also like to provide new hires with a company handbook and access to our Slack channel, so that they can "meet and greet" their co-workers before their first day. To make them look and feel a part of our team at their home office, we send all new hires a polo shirt and coffee mug. Slack is used in most tech companies, but other broad-based communications platforms can be used for virtual "happy hours." Making a small investment in free gear also goes a long way in establishing goodwill and helping employees feel like they are part of the team.
Onboarding
Beginning with their first day at work, we like to integrate new hires with their respective teams by having them participate in a Zoom welcome meeting with their team. We also provide them with an organization chart that identifies key management personnel and includes an overview of reporting requirements. One tip that I have found helpful is to assign new hires a dedicated mentor who can answer any questions and help them succeed in reaching project goals and company objectives. This solidifies the employee’s connection with the work and helps them feel more welcome.
Also, weekly virtual one-on-one meetings with supervisors can further the integration process and help employees reach project and professional goals. Have your new remote worker participate in one-on-one meetings with your HR, finance, IT and product development teams during the first week of work. Each of these teams plays an important role in the onboarding process by training the new employee on a wide array of company matters, such as time entry and company products and services, along with an overview of your brand and competition.
Ongoing Training
The final piece to a successful onboarding program is ongoing training. Through these virtual training sessions, my company likes to provide additional support with processes and tools specific to its operations. In my experience, this can help increase employee retention, foster innovation and improve overall job performance in a collaborative work environment.
One way to provide ongoing training is through small weekly team meetings, where the various small teams meet and go through hot topics or issues that have come up in the past week on their team project. These should be short, agenda-focused meetings that cover an issue that needs to be handled by the team. I have found that a team-based approach to handling an issue works best in this type of meeting and brings the team closer together while working through the issue resolution. Short training videos, strong mentor relationships and one-on-one meetings are some of the most successful ways to train your remote workforce.
Final Thoughts
Relying on a remote workforce is not without its own set of challenges, such as coordinating virtual meetings across multiple time zones apart. However, I have found that success in remote worker recruitment and retention stems from the development and implementation of an onboarding program that directly involves team members and management in the recruitment and interview process, makes the new worker feel welcome, and continues with the educational and professional development of the worker throughout their career.
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29a9c49c528f9e1a149bc1ba4f906736 | https://www.forbes.com/sites/forbestechcouncil/2020/05/01/exponential-cloud-security/ | Exponential Cloud Security | Exponential Cloud Security
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While most enterprises are moving workloads to the cloud, it remains less than 10% of overall IT spending. With the cloud, enterprises can deploy applications at scale and transform their business. Many cloud providers also provide robust security solutions that parallel this scale. However, many are limited by the lack of security knowledge or expertise on the cloud. In this article, you will learn of some of the exponential technologies that enterprises can leverage to gain security parity on the cloud.
According to Cybersecurity Ventures, 3.5 million cybersecurity jobs will be open but unfilled by 2021. Enterprises will not be able to fill all of these jobs, so they must consider alternative ways to meet the demand.
The problem cannot be solved by simply training and hiring people to do more of the same work. Instead, enterprises must rethink how they are allocating resources for a new age of cybersecurity on the cloud. They need to leverage security as code, machine learning, automated reasoning and other exponential technologies to achieve security at scale. What's more, enterprises need to consider how to find the right types of people to perform new ways of securing resources as they deploy more workloads on the cloud.
Leverage Exponential Security Technologies
There are four exponential technologies that can help meet the cybersecurity scale challenge. They are security as code, automated remediation, machine learning and automated reasoning.
Security As Code: With most major cloud providers, you can define infrastructure as code that includes compute, storage, database and networking. These providers also include managed security services, such as identity and access management, encryption key management, firewalls and detection, which can be defined as code as well.
By codifying the provisioning of these security services, enterprises should be able to automatically evaluate security controls for any application at any stage and environment. This is a major shift when following the principle of security as code — everything about security is codified, versioned and applied with every change.
Looking at the entire automation process with continuous delivery, teams should focus on the following:
• Making sure changes to configuration in all environments are source-controlled and peer-reviewed.
• Fully automating the entire software delivery process, from commit to production, including provisioning security resources and running security tests.
• Carefully reviewing environment configurations with security in mind.
• Running static and dynamic analysis tools as part of the software delivery process, and feeding issues found back into the sprint.
Automated Remediation: Automated remediation is really a subset of "security as code" in which systems automatically respond to events by running code that fixes detected security vulnerabilities without requiring human intervention. A variation includes automated detection workflows that track the remediation life cycle of codified fixes (i.e., security as code) applied by engineers. This approach drastically reduces the time between an introduction of a security vulnerability and its remediation.
Automated Reasoning: Cloud providers are leveraging automated reasoning technology, which is the application of mathematical logic, to mitigate infrastructure risks. For example, using mathematical calculations to determine misconfigurations or potentially exposing vulnerable data against an infrastructure. The benefit is that enterprises can run millions of fully automated checks without launching infrastructure resources.
Machine Learning: By using and developing machine learning models using cloud-based services, enterprises can automatically detect and respond to security and compliance vulnerabilities. Machine learning is best used for extending capabilities to custom security scenarios in which automated rules or math do not suffice.
Find And Develop Expertise
Enterprises cannot simply access the existing pool of cybersecurity talent to meet the demand. The answer is in increasing the use of exponential technologies like the aforementioned security as code, machine learning and automated reasoning.
Enterprises need to start looking for new recruitment channels and utilize unconventional strategies and techniques to fill the skills gap. This might include seeking those without a college degree or looking globally in order to widen the market selection. What's more, enterprises need to train and grow security professionals who are builders and can code and leverage exponential technologies to meet the increasing demand.
Automation For The People
In closing, when enterprises leverage exponential technologies for security, they can begin to meet the ever-increasing demand for security expertise and need for scale across their cloud infrastructure. Rethinking how to discover and grow expertise within an organization is becoming more crucial, while integrating security into every step of the software development life cycle is one of the best ways to reduce costs and risks as the speed of development increases.
How has your company embraced exponential technologies for cybersecurity on the cloud?
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13f9c826ff45f38c951c2096ebd6664f | https://www.forbes.com/sites/forbestechcouncil/2020/05/05/14-compelling-edtech-developments-and-why-they-are-important/?sh=4c882f237d95 | 14 Compelling Edtech Developments And Why They Are Important | 14 Compelling Edtech Developments And Why They Are Important
Schools have always embraced technology, and education technology (edtech) is one of the fastest-growing areas of tech today. With so many more education professionals looking at ways to deliver electronic lectures or engage their students remotely, this comes as no surprise.
However, not all edtech is the same, and some applications and strategies offer far more in terms of innovation. Some edtech advances haven't even made it into products as of yet, but they are extremely promising. Below, 14 members of Forbes Technology Council discuss the latest developments in edtech—products and approaches—and explain why they find them particularly compelling.
1. Adaptive Learning
Online education can’t sacrifice learning quality and outcomes—with the right tools, it could even be superior to offline learning. We’ll see more educators turning to adaptive learning platforms, which encourage long-term retention and help students develop better habits in this new environment. - Paul Mumma, Cerego
2. Accessible Remote Learning
I’m personally excited about the advancement of education and giving more opportunities to people who are remote. Today we have many online educational resources at our fingertips, and some companies are offering free access to their digital learning platforms during the crisis. - Eugenio Pace, Auth0
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3. Student Collaboration Tools
There will still be a need for students to work together on projects, so collaboration tools will be key. It's good to see student versions of online collaboration tools like Microsoft 365 and Google present those options. - Yenn Lei, Calendar
4. Virtual Labs And Virtual Time
Students need practical experience in many STEM courses. Seeing "traditional" labs become online virtual environments with videos, tutorials and real-world applications not only helps engage students who learn differently (or at their own pace), but they can also be repeated, ensuring retention. - Jason Christopher, Dragos
5. Devices And Internet Access For All Students
The No. 1 critical piece of educational technology is the Chromebook. It has made it so districts can afford to provide a device per student as many do not have a computer at home. The second is home internet access, which most of us take for granted, provided through a partnership with Sprint. - Bret Piatt, Jungle Disk
6. Online Tools And VR
With the advent of online collaboration tools and virtual reality, one thing that I would like to see happen in the next five years is having universities offer global education without any physical boundaries. Imagine learning from the best education providers around the world with limited or no travel. - Sanjay Vyas, Diyotta
7. Curated Reviews Via Lesson Planet
Lesson Planet allows educators, including parents, to search over 550,000 teacher-curated reviews for free and open educational resources (OER). There are many search engines for educational resources, but Lesson Planet content is manually curated by teachers with helpful instructional insights. - Andres Angelani, Cognizant Softvision
8. The AWW App
Sometimes it's just easier to explain it with a drawing. When you're an online teacher, trainer or facilitator, that's hard. AWW (A Web Whiteboard) is an app you can use by itself or integrate it into an LMS or other online tool. - Thomas Griffin, OptinMonster
9. GoGuardian
With schools facing the challenge of remote learning, a problem that educators face is keeping students focused online. GoGuardian Teacher restores a safe learning environment remotely by allowing teachers to see student screens in real time, and enhancing remote teacher-student communication. - Ryan Chan, UpKeep Maintenance Management
10. Future Learn
I'm interested in the course platform used by Future Learn in the UK. This platform makes it easy for students to track their progress through the course. Besides, it provides access to incredibly unique material—like exclusive videos of historical artifacts. The best part: some courses are free. - Nelson Cicchitto, Avatier Corporation
11. School Dashboards
Although some schools have used them over the last few years, these school dashboards that provide a way to communicate, track grades, upload homework and create discussion groups help facilitate and organize online education. - Stephen Dalby, Gabb Wireless Inc.
12. Augmented And Virtual Reality
To educate students, you must engage them. Thanks to augmented and virtual reality, students will never be bored to snores when learning. They’ll be able to venture into space and visit famous scenes from history. AR and VR will grab hold of their attention and imagination. - Marc Fischer, Dogtown Media LLC
13. Blockchain
We will start to see increased utility for having verification of a distributed ledger for classwork and testing validation and tracking. It will also serve as a means to certify remote teaching applications and source material. Blockchain is uniquely suited for these types of frameworks. - José Morey, Liberty BioSecurity
14. Gamification
With parents having to homeschool kids while doing their own jobs, it's ever more apparent that "making" kids study is completely flawed. Learning should be fun, instead of being forced. The current trend of gamifying learning is going to be a powerful force in building the future of education. - Tigran Sloyan, CodeSignal
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05db7ebcde67d72c0fd637503d0a5bdd | https://www.forbes.com/sites/forbestechcouncil/2020/05/06/remote-interviewing-how-to-evaluate-competencies-that-matter/ | Remote Interviewing: How To Evaluate Competencies That Matter | Remote Interviewing: How To Evaluate Competencies That Matter
Photo: Getty
Last month I outlined six ways to tune technical interview loops for 100% remote hiring. Since then, the world has continued to adapt in the face of COVID-19, but one thing has remained resilient: the demand for software engineers.
For my next few posts, I’ll take a deeper dive into each of the areas I covered last month to help companies achieve their engineering hiring goals. These posts will offer concrete actions that interviewers can take to make every interview more predictive, fair and enjoyable for both companies and candidates.
The first step in any hiring process is identifying the skills and competencies that a candidate needs to be successful on the job. However, as anyone who’s ever read a bad job description can surely attest, it’s a step that’s often overlooked.
This can be true for both in-person and remote interview loops, but without the in-person communication of an on-site interview, it’s especially critical that competencies are clearly defined and communicated in remote hiring programs.
In my last piece, I recommended that companies assign owners to review specific job descriptions and responsibilities and align these elements to specific competencies.
To get more predictive signals, interviewers should ask themselves three things:
• Are the competencies relevant to success on the job?
• Does the candidate understand how they’re being evaluated?
• Am I measuring each competency separately and predictively?
Establish Relevant Competencies
The output of this process hinges on competencies that are relevant and predictive of job success. One helpful way to think about competencies to assign to a role is to think about how the person is going to be evaluated in their performance review at the end of the year.
Will the employee’s performance review focus on broad aptitudes such as language skills, reading comprehension, cultural awareness and easily acquired knowledge (i.e., the ability to quickly Google answers in an interview)? Or will the employee’s performance review look at metrics like the complexity of problems addressed, code quality and velocity?
While many of us have experienced interviews that inadvertently test the former set of attributes, it is much more predictive of on-the-job success to align with competencies that actually matter.
For a senior software engineering role, the competencies are more likely to include specific language skills such as Java, demonstrated ability to understand and articulate business logic complexity, and ability to complete an architecture review.
Tell The Candidate How They’re Being Evaluated
Next, it is imperative that candidates understand what competencies you’re assessing. What are the mechanisms you have in place to clearly communicate to the candidate they are being assessed for code quality, optimality vs. speed or the ability to deal with ambiguity?
Hiring managers should clearly define the competencies they’re looking for, and interviewers should clearly articulate those competencies to candidates so they know whether to deliver complete code or an outline, if a brute-force solution is good enough, or if they need to take the next step to optimize it.
Measure Each Competency Separately And Predictively
Each competency needs to be measured intentionally.
Many interviewers use questions to measure several competencies at once: Can this person code quickly? Can they think out loud? Can they speed-read four paragraphs of English text to understand a problem brief? Does the candidate know the rules to the same board games as the interviewer? This is detrimental because it doesn’t isolate a variable to assess the competency and because it introduces noise through measuring competencies that may not prove relevant to the job.
For example, candidates are often required to test their code in an interview. Asking them how they would test it, as opposed to embedding it into a coding exercise, will isolate code testing as a skill.
Isolating and then evaluating competencies boosts the value of each interview segment and gives you a more predictive signal.
Also, be on the lookout for unbalanced multipart questions that build on code implementation.
For instance, if you ask a candidate to find the most common letter in a sentence (“sentence A”) as part of an introductory question, one perfectly acceptable approach would be to sort the letters in the sentence and iterate through it once. Another acceptable approach would be to build a frequency map for the letters in the sentence and choose the maximum value. Both of these solutions have roughly equal merit.
However, if the follow-up question is to find the most common letter in sentence A that does not appear in sentence B, the candidate who took the second approach would have a head start and advantage, despite not having demonstrated any measurably better skills.
Interviews should use questions that are conceptually linked, but not interdependent from a code standpoint.
Next Steps
Once you have defined relevant competencies, communicated them to your candidates and measured them consistently, the next steps are removing ambiguity and training your interviewers to deliver the questions consistently — both of which I’ll tackle in future articles.
Until then, stay home; stay safe, and don’t ask unbalanced interview questions!
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211c13d5f61947bc188ca4d7f4f844c1 | https://www.forbes.com/sites/forbestechcouncil/2020/05/11/how-were-getting-hybrid-cloud-wrong-and-why-its-time-to-course-correct/?sh=3cf5dfec26ad | How We're Getting Hybrid Cloud Wrong -- And Why It's Time To Course-Correct | How We're Getting Hybrid Cloud Wrong -- And Why It's Time To Course-Correct
Photo: Getty
The whole focus on “hybrid cloud” is flawed. By its very definition and intention, hybrid cloud is meant to describe data centers stretching data infrastructures from on-premises to the cloud. This instills the notion that the focus should be on the methods of data storage, compute and networking, leaving little regard to think about the “why.” And it’s the implications of not addressing the “why” that can set your IT infrastructures years behind the imminent data boom.
The global market for hybrid cloud is expected to grow to $97.6 billion by 2023. Data is exploding onto both structured and unstructured databases, making it harder to manage, protect, back up and recover that data. It's clear that organizations are upscaling their digital footprints and adopting cloud-first IT strategies. Yet despite the size of the current cloud industry, hybrid cloud growth is still very immature, and it’s all too common to take a misstep in its implementation from the start because organizations and IT leaders are not thinking about the “why.” Because of this, there are a number of misconceptions and assumptions about how to properly leverage the hybrid cloud, including the following:
I’ll just go ahead and move it to the cloud with any tool.
From a data backup and recovery perspective, this is often the first thought from customers and what they believe to be the first step. However, many IT leaders aren’t considering which tools are the most effective, first and foremost, and the benefits of incorporating on-premises as part of this strategy.
I’ll put all my data in the cloud, regardless of what kind of data it is.
The subject matter expertise between on-premises and cloud workloads is vastly different, and both require different skill sets. If your machines are on-premises, you’re likely using VMware, and in the cloud, you’re likely using virtual private clouds (VPCs). To remain competitive during this radical transformation within the technology industry, and also to manage the surge in data in the last decade, many organizations believe they need to migrate these massive amounts of data to only the cloud -- which could not be further from the truth.
I’ll mirror network storage methods for the same results.
IT leaders often conflate networking storage and computing as processes that can be mirrored with hybrid cloud. In both situations, the fundamental concepts between the two are different and require different tools.
The true purpose of the hybrid cloud is when you achieve that perfect balance and connection between on-premises and cloud. While the earlier age of cloud computing was easily defined by location and ownership, hybrid cloud offers a far more complex definition because it incorporates many functions across multiple environments. The more appropriate -- and relevant -- first step is to identify when and why hybrid cloud options are appropriate, which then informs the decisions of which tools are the right ones to get the job done.
With this in mind, here are four use cases where the hybrid cloud may be the right choice for your organization or your customers’ data infrastructures:
• Elastic Workloads: This is one of the best use cases for hybrid cloud. The influx in traffic and surges in data are continuing to grow year over year -- even in its most basic form of site traffic to Amazon from September through December for online shopping. Hybrid cloud provides organizations with the flexibility, scalability and reactivity that enables all workloads to thrive.
• Disaster Recovery: Previously, in order to maintain proper disaster recovery methods, companies would invest in two physical data centers, which was incredibly expensive and resource-intensive. Hybrid cloud provides an excellent option for when your primary data centers fail. You have the elasticity of your workloads located in the public cloud that only kick in at the signal of a failure of your primary data center workloads. Hybrid cloud allows you to significantly minimize downtime during outages, allowing critical applications to be easily and quickly accessible, compared to the tedious traditional processes of recovering data solely based on-prem.
• Compliance: Hybrid cloud will often give you regulatory certifications that you may not already have from standard on-premises data centers. If your data centers have a certain business certification, there’s a line of sight within the hybrid cloud to help outsource certifications -- a much easier process than obtaining specific certifications yourself. A great example of this is government contracts.
• Data Center Footprint: This can be looked at in two ways: Hybrid cloud aids in reducing your physical data center footprint, while also helping you to expand your global reach. For example, with hybrid cloud, you can maintain your legacy data centers in four or five countries and also expand to other countries without always having to resort to the challenging process of designing, deploying and managing physical space.
The takeaway here is not to throw weight behind a hybrid cloud strategy as quickly as you can; the fact is that hybrid cloud is not going to be the right fit for some organizations. It is not “one size fits all,” and each company is different in their needs when considering costs, data flexibility and the amount of security investment these data sets need. In taking the correct first step -- addressing the “why” -- data teams and IT decision-makers will be far better off and set up for success in considering the correct cloud plan for their organization’s needs.
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bc0b97ddb874eee6855d07de627ac1d6 | https://www.forbes.com/sites/forbestechcouncil/2020/05/11/three-crucial-tips-for-increasing-the-value-of-a-domain-name/ | Three Crucial Tips For Increasing The Value Of A Domain Name | Three Crucial Tips For Increasing The Value Of A Domain Name
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Each year, more than 600,000 small businesses open in the United States, and a large portion of those have an online presence with a unique domain name.
A good domain name can command a price between $5,000 and $20,000 -- or even more. Carinsurance.com sold for nearly $50 million in 2010. In the same year, Facebook paid $8.5 million for fb.com, only to have it redirect to Facebook.com.
In short, if you own a premium domain, there’s a good chance you can earn some serious coin for its rights. But that doesn’t mean a profit is guaranteed -- as with any business venture, there are still best practices to follow and pitfalls to avoid.
Over the 600-plus transactions I’ve completed as a broker, here are the most effective tips I’ve learned to make a domain name as attractive to buyers as possible:
The Top Factors Affecting A Domain Name’s Value
A number of factors come into play when determining the value of a domain name -- the extension (.com, .net, .us, etc.), the keyword popularity and even the length of the name can drastically affect market value. Even if you already own a desirable domain, you can increase its value considerably before you sell with comparatively little time and effort.
1. A Successful Website
Owning a good domain name is nice, but the name itself really just signals a potential for success. It's the website associated with the name that drives business, entertains visitors and creates a brand following. If a website ranks well with Google and other search engines for industry keywords, its value increases substantially.
2. Associated Social Media Pages
Active social media pages accompanying a domain name and website can make for a desirable package. When all of these components are in place, you're selling a turn-key online presence.
Facebook, Twitter, Instagram, Pinterest, YouTube and LinkedIn are all great platforms to build a following on. The closer the account names are to the domain, the better.
The more people the social media accounts associated with a domain reach, the higher the domain’s value.
3. Similar Domain Variations
Securing variations of a domain isn’t possible without a decent budget, but it’s an effective way to remove competition from the market and drive up demand. For example, variations of the domain "mystore.com" might be "my-store.com" or "mystore.net.” By acquiring close variations of a domain and selling them all as a package, you ensure the buyer is getting all of the available traffic from the name.
Stay Prepared To Profit Off Your Domain When The Time’s Right
Preparing to sell a premium domain name doesn't have to be complicated or time-consuming, and my tips are certainly not the only recipe for success. Domain names are one of the most exciting digital assets for a reason -- every website needs one, and there’s no telling when a business is going to be searching for a domain you own. When it comes time to sell, make sure you're prepared to attract the best offer possible.
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6d017cf17ae17e3f54ce7f403d6ff716 | https://www.forbes.com/sites/forbestechcouncil/2020/05/12/choosing-the-right-company-for-your-success/ | Choosing The Right Company For Your Success | Choosing The Right Company For Your Success
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In a time of crisis, there's often an opportunity for reflection. Many of us are in a position now to reflect on work — whether it's reinventing your business model, reconfiguring your office setting or reevaluating priorities during a temporary pause.
It's been more than 20 years since I ran a regional sales team for a major computer technology corporation, and what an amazing journey I've had along the way. I was lucky enough to learn from many great people, and that experience was integral to my success, putting me on a path that led me to my current role as CEO of Infrascale.
Choosing the right company for your success doesn't mean setting your sights on the most lucrative position or prestigious title. It's more about picking a company where you'll thrive, work with great people and have fun — all while sustaining a work ethic that will not only get you ahead but also help your company succeed. True success comes from putting yourself in the right position at the right company and in the right industry, where you will be happiest and most productive so you can realize your full potential.
Finding your career path.
When most companies create a job description and start the interview process, they are not necessarily focused on finding the right person for the position. The hiring manager (or search firm) is trying to fill the opening with a candidate who simply meets a list of requirements. Don't let your career be determined by checked boxes.
Before deciding on a position, be sure to take your time. When you are more thoughtful about your next move, everyone benefits. In my own career, I found a direct correlation between how long I took to find the right position and the happiness and success that followed.
Here are my top five tips for evaluating the next step in your career:
1. Know yourself. Understand where your energy comes from and what depletes it by taking a step back to identify the projects, people and environments that drive you — as well as those that drain you. When thinking about what's next, start with the end in mind. Where would you like to be at the end of your career? What quality of life do you want along the way? Once you have an idea of where you want to go and what sacrifices you are willing to make, you can determine how to get there.
2. Identify your target. What industry, company size and roles do you enjoy most? Do you want to be part of a team, or would you prefer to be an individual contributor? It's not about where you've been or what you've done, but which industries, companies and roles energize you the most.
3. Be ready to say no. Once you set out to find your next job and have a good idea of your long-term goals, be ready to say no — even to great opportunities that don't fit. It's difficult to decline a good offer, but stay the course. Finding the next opportunity takes time, and you should take as long as you can to find what's right for you.
4. Do your homework. I'm not talking about just preparing for your interview. Research the company's culture, employees and customers. Find contacts who can provide insider perspectives. Read reviews, keeping in mind that the company's responses are almost as important as the reviews themselves. Watch videos of product demos, presentations and customer testimonials to gain other perspectives.
5. Seek to understand. Make sure you enter the interview process to gain more knowledge, not just to impress. This is your time to ask questions, learn more and evaluate for yourself how things really work. Ask the interviewers to articulate what they're looking for in a candidate, what success means in that specific role and what the company values. Don't be afraid to inquire about the company's mission and what inspires employees to work there.
Enjoy the journey, but don't burn bridges on your way.
On your journey, be sure to take care of the people and companies that take care of you. When it's time to move on, finish strong, and express appreciation for what you've gained on the path. Even if the experience was negative, learn from the mistakes or mismanagement.
The business world is a small one, especially the fast-moving technology community. Make sure to keep in touch with your network. It makes me happy to see the great things my former co-workers achieve, and it's always fun to talk about the good old days when we connect.
Taking the time to make sure you are in the right market, company and position is one of the most important things you can do to grow, stay healthy and discover true success.
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6be1b1d672dc9edebddfb815ce37d2c5 | https://www.forbes.com/sites/forbestechcouncil/2020/05/12/what-tech-trends-will-continue-to-grow-post-pandemic/?sh=7ee384282460 | What Tech Trends Will Continue To Grow Post-Pandemic? | What Tech Trends Will Continue To Grow Post-Pandemic?
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Social distancing, remote work, video conferences, virtual spaces, remote monitoring, online education and telehealth: These concepts have become the new norm during the COVID-19 pandemic. Moreover, as the need for human workers challenged the continuity of many business processes, companies may try to adopt more automated and advanced technological solutions to mitigate the risks they faced during the pandemic. Thus, these are the technologies I believe will be on the rise post-COVID-19.
Cloud Technology
Businesses are moving to the cloud for security and efficiency reasons: Going serverless ensures flexibility, scalability and fast disaster recovery. The introduction of cloud technology will change the way applications are created, deployed and operated. This means that the role of DevOps and cloud solutions architects will grow, as well.
Workforce Mobility Technologies
• Mobile apps. We will see growth in the development of mobile apps that help employees access corporate services anytime from any place in the world. After all, a smartphone is one of those things an employee will have with him/her anywhere.
• Video. Providing remote connection and continuous data transfer to enterprise apps, video will become a major communication medium. This will encourage real 5G network development and global deployment, and more apps will use video functionality to process and analyze data received from multiple sources.
• RPA and AI. The reliance on human workers has impacted the continuity of certain business processes during the crisis, such as direct sales, equipment production and maintenance. That is why we will see an increase in robotic process automation (RPA) and artificial intelligence (AI) technologies implementation. The need to replace people in many business processes will push businesses to consider similar emergency scenarios in the future and automate certain operations to rely on AI, which is always accessible.
• Augmented analytics and blockchain-powered smart contracts. Smart contracts can help balance global and local supply chains and make them more flexible. One of the examples of this transformation will be supply chains' partial substitution with local suppliers to mitigate emergency and logistics risks. In this scenario, smart contracts can make logistics more resilient by digitizing and securing valuable information. And augmented analytics implementation will automate decision-making for specialists who are in charge of important business operations speeding up operations and excluding bias and human errors.
Smart Infrastructure
During the pandemic, many countries have realized that their infrastructure should be ready for rapid transformations: It needs to be centralized, analyzed and controllable
• Internet of things (IoT). In the post-COVID-19 world, the internet of things for smart spaces will focus beyond comfort control to real safety. Air quality, CO2 and temperature control will be used to provide 24/7 security in environments where people spend most of their time, especially considering the possibility of a massive shift to remote work. More than that, in South Korea, areas that had implemented IoT as a part of the "smart cities" transformation reportedly used the technology in their fight to curb the spread of the virus, so other locations may follow their example.
• Edge computing. This is another important technological innovation I expect will be widely used after COVID-19. Edge computing will grow as companies will want to bring computation and data storage closer to the devices where they are gathered to increase network performance, speed and security.
Personal And Commerce Tech
Social distancing has made people reevaluate their needs in entertainment, interaction, and communication and how they spend their money.
• E-commerce tech. Brick-and-mortar stores that used to rely on local, in-person buyers will want to avoid being in a situation in which their customer pool dries up. This will drive these retailers to look for new ways to reach customers, such as through web applications, e-commerce platforms, client web portals and mobile applications.
• Augmented reality (AR) for remote sales. Because the pandemic had psychological and financial impacts, as well, many shoppers are expected to continue avoiding physical stores for a while, so retailers will need to rely on technology to help. AR applications that provide an opportunity to “try out” products (furniture, beauty products, clothes, equipment) before buying them can help retailers attract clients.
• Fintech. We can expect that fintech, the industry that was pushing traditional financial institutions to leave their comfort zone, will see even greater growth in a post-COVID-19 world as more people choose to control their finances and perform financial operations online.
Luckily, in a post-COVID-19 world, technology will be able to help companies and people adapt to the lasting operational, behavioral and psychological changes brought on by the pandemic.
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7d37127eb50066cd94bb651f4b090c04 | https://www.forbes.com/sites/forbestechcouncil/2020/05/15/how-technologists-can-translate-cybersecurity-risks-into-business-acumen/?sh=92e12797c98d | How Technologists Can Translate Cybersecurity Risks Into Business Acumen | How Technologists Can Translate Cybersecurity Risks Into Business Acumen
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Research suggests that 90% of Americans have taken at least one big data security risk in the past year, while a third of Americans – more than twice the global average – have been victims of identity theft. In January, the California Consumer Privacy Act (CCPA) granted the strongest privacy rights to consumers, inciting higher standards for consumer privacy and corporate data hygiene nationwide.
Currently, there’s a lot of fear and uncertainty surrounding the issue of data security. As more companies take on digital transformation, a prerequisite to remain competitive, the corresponding cybersecurity efforts will be unending. We know full well that the very technology that empowers us may also imperil us, but technologists still have trouble translating these risks to corporate board members responsible for driving, informing and guiding executive decisions.
As Chief Information Risk Officer for Silicon Valley Bank, I’m responsible for implementing cutting edge technology to ensure the highest level of cybersecurity, risk management, data privacy and recovery. Much of this work involves assessing an organization’s technical risk, while effectively translating that risk into meaningful and actionable business understanding for non-technical leaders, including board members.
Because cybersecurity technologies and potential security threats are always evolving, we are constantly reevaluating how to convey technical issues using the most effective concepts and nomenclature. Here are a few key strategies that can help entire organizations cohesively and consistently work toward integrating good data hygiene.
Think holistically.
The first question many business leaders ask about cybersecurity is, “Are we secure?” The problem with this question is that it implies cybersecurity is a fixed destination – not an ongoing (and unending) journey. But technologists and CIOs can help non-technical business leaders and board members better conceptualize an organization’s business health as analogous to the biological health of an individual.
How an organization manages cybersecurity vulnerabilities and technical debt is comparable to the way essential metrics, such as heart rate and blood pressure, provide important insights into how well the human body is operating – and whether certain interventions are necessary to sustain vital systems.
Establish your KPIs.
The technology space can easily seem abstract, and therefore confusing and overwhelming. To alleviate the fear that stems from uncertainty, technologists can distill foundational principles into checkpoints that empower business people to ask the right questions in the right environment.
A good place to start is by establishing the top metrics affecting an organization by answering questions such as, “Does the organization have subject matter experts leading security?” “Who is assigned to manage this specific piece of technology?” “How do we measure this space?” “What portion of the budget is invested in protecting this technology?” “How does this technology tie into our broader risk appetite statement?” You may well find that how you measure these risks is your greatest risk.
Frequently assess (and reassess).
Most organizations assess risk on a quarterly basis, in addition to an annual deep-dive. In general, the more time devoted to assessing and reassessing cybersecurity threats and technology, the better. One of the foundational principles of security and risk management is that the efficacy of controls degrades over time. Technology is analogous to topography in this regard; just as you would expect natural elements like water and wind to erode a stone wall over time, technology’s architecture will likewise deteriorate – only much more quickly.
Become antifragile.
Proactively creating reliable channels of communication ahead of time is one of the best ways for organizations to prepare for disruptive technological events stemming from threats like malware. In order to accomplish this, an organization must first develop a holistic, resilient, organization-wide philosophical perspective that embraces the advantages of an antifragile organization. Instead of fearing the inevitable cybersecurity threat, technologists can empower their business constituents to increase resilience by addressing and resolving cybersecurity issues, learning from those issues and actively applying those learnings to their digital defense strategy, hence becoming less fragile to such events.
Technologists can further empower their business by categorizing potential threats by distilling a hypothetical scenario’s likelihood and potential impact. This is an effective way that technologists can bridge the gap between technical jargon and business vernacular to answer the imperative question: “How would this event affect our bottom line?”
Humanize technology.
When relating complex ideas, a picture is almost always worth a thousand words. Instead of telling the board, “We have seven million vulnerabilities on a server,” a technologist might better explain different layers of defense by evoking clear analogies, such as the onion layer model of security, by which layering imperfect slices of security technology decreases a system’s overall penetrability.
Just as screenwriters must present a 20-second elevator pitch in order to sell a two-hour film, even the most complex technology must be simplified in order to gain organization-wide adoption. The more technologists relate abstract technology to concrete human experiences, the better. Biological analogies are particularly effective, because they create a visceral, memorable impact.
The Right Horses, For The Right Courses.
To integrate the best defense technology, every member of an organization must work together. Ultimately, the best approach to modern data safeguarding stems from the ancient Greek aphorism “Know thyself.” In order for an organization to best protect itself, everyone in that organization must collaborate to understand what data it has, where it is stored and how it’s being used. Only then can you create an effective, and bespoke security posture appropriate for your organization’s risk appetite and tolerance.
While today’s technology chasms may seem new, information gaps date back to the Age of Enlightenment, when the growing breadth and depth of humanity’s knowledge necessitated specialized fields of expertise. The key to maximizing each individual field’s knowledge is a common language through which experts can talk to one another, advancing both their individual and collective efficacy.
As management consultant Peter Drucker said, “Culture eats strategy for breakfast.” Company culture must be based on values, because values directly influence how people strategize to solve problems. Recruiting professionals from various domains to think about an organization’s broader win-win scenario almost always accelerates better outcomes.
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3fe5e93449ab25d5f41808cb6e1793ee | https://www.forbes.com/sites/forbestechcouncil/2020/05/18/the-future-of-urban-mobility/ | The Future Of Urban Mobility | The Future Of Urban Mobility
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The future of mobility is here. From the sidewalks of San Francisco to the streets of Delhi, urban transportation has expanded beyond cars and buses. New transit modes like ride-sharing and electric scooters are gaining traction across the globe.
Public attitudes are changing as well. Younger generations care less about brands (paywall) and more about experiences. This can be seen in the success of services like Uber and Lyft, which create a layer of abstraction between the city dweller and the car.
The fact is that in today’s world, it’s no longer about the underlying physical vehicle. Instead, it’s primarily about overall access and availability, with people seeking a more efficient and integrated experience.
Multimodal services are the next step. For example, Deutsche Bahn subsidiary Arriva carries passengers across transport modes, including bus, train, tram, ferry, cars and bikes. These new services further disintermediate the relationship between city dwellers and their transportation.
The Urban Challenge
These changes are urgently needed. An estimated 200,000 people per day are expected to move into already crowded urban centers through 2050.
Many of the world’s largest cities were never built to accommodate today’s traffic. As such, there is a limit to what can be done, just as there is a limited amount of money that can be invested into improving public transportation.
With municipal funds scarce, the private sector has taken the lead. In the past two years, an estimated $120 billion has been pumped into transportation tech. Recent examples from the mobility-focused venture firm Autotech Ventures include startups like Outdoorsy, an online marketplace for shared use and rental of recreational vehicles and motorhomes, and SpotHero, a parking inventory and booking platform that connects drivers with garages, lots and valets.
In fact, micromobility startups alone have attracted more than $5.7 billion since 2015 in stakeholders' investments. Other top targets include ride-hailing, batteries and autonomous technology.
Industry Factors
To explain why these sectors attract so much attention, we can look to three specific aspects of mobility:
• Form Factor: This increasingly includes bikes, motorized scooters, one-wheel skateboards and even electric shoes, as each fights for space on streets and sidewalks.
• Schedule: This goes beyond a daily commute and includes periodic shopping or sporadic travel to concerts and events.
• Distance: This is no longer fixed from a garage at home to a downtown parking lot, but incorporates society’s shift away from a headquarter-centric model to a more dispersed workforce.
Addressing each of these is the key to building a successful business in the current transformation. Effective mobility options call more for business model innovation than technology innovation. They also require a change in consumer preferences, most likely brought by generational changes, rather than a fundamental technological revolution.
Today’s Impact
Already, we’re seeing the industry adapt. Mobility as a service is rapidly growing in importance, and the prevalence of cars as a service is also expected to increase. The auto finance industry is preparing a range of strategic moves in light of the anticipated explosion in mobility services popularity.
Other sectors are getting in on the act. The rise of intelligent vehicles is leading to innovations in automotive insurtech. The energy business is preparing for major shifts as the world’s major automakers ramp up plans for electric cars. Even the real estate business may be affected.
The Need For Urban Policy
All of this could eventually challenge the limits of urban policymakers. Because transportation issues are increasingly shaped by local decisions, tier-one cities like New York, London and Tokyo are often watched by smaller cities with fewer resources. Given their size and clout, these metropolitan areas have sufficient power to set the regulations that other places are likely to follow.
To date, these leading cities have done much experimentation to regulate micromobility, but no general approach has been set beyond limiting alternative providers as they try to rein in the proliferation of vehicles.
Ultimately, though, the issue goes far beyond merely addressing autos, trains and buses. Much more needs to be done by the industry to rethink the entire future ecosystem of urban mobility.
Although more systemic shifts in last-mile transit will take time, supporting some of these alternate modes can be achieved now. Among the steps that companies could consider now are:
• Providing cost reimbursements to employees who use alternate means of transportation.
• Ensuring that bicycle or scooter racks are available at or near all workplaces.
• Working with companies that provide sheltered bike lockers near transit points.
• Promoting safer and additional bicycle lanes to local government officials.
These are just some of the small steps that can be taken now to address the larger changes that would be welcomed in the future.
There is clear demand from city dwellers and government officials to improve the current reality. The question is: How do we address these growing problems in a cost-efficient way -- and quickly?
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bb07931ea9f2649698f589393d4030df | https://www.forbes.com/sites/forbestechcouncil/2020/05/19/five-insights-for-leveraging-rpa-and-process-intelligence-in-the-new-normal/ | Five Insights For Leveraging RPA And Process Intelligence In The 'New Normal' | Five Insights For Leveraging RPA And Process Intelligence In The 'New Normal'
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Moving from the usual ways of working and doing business to more holistic, big-picture thinking can be daunting — especially during this time of turbulence and uncertainty. Yet the cost and efficiency benefits of digital transformation have never been more relevant now that every industry is reckoning with customer demands for flexibility and service, more stringent cost controls, and a reduced or increasingly mobile workforce.
And although your business challenges are likely much more pressing during these unprecedented times, they’re not brand new. It probably comes as no surprise that adding headcount will do more harm than good. You’ll incur greater costs, and it’s unlikely you’ll reach your efficiency and customer service goals
This explains why robotic process automation (RPA) and AI are gaining traction for the range of benefits they offer — from eliminating process roadblocks to helping organizations make better use of their data. And as part of an end-to-end intelligent automation initiative, these tools empower organizations to take their digital transformation to the next level.
If we acknowledge that digital transformation can help organizations successfully navigate business operations, especially in today’s “new normal,” the next step is to ask the right questions. Take a moment to consider the following:
Do you have a solid grasp of how your organization’s processes actually work? Where are employees performing repetitive, manual tasks that could be delegated to software robots? Can you identify hiccups in your workflow likely to create service delays and frustrate customers? Have you considered using process intelligence to provide insights into automation opportunities that can reduce costs?
It’s prudent to make time to complete a self-assessment of business areas and operations right from the beginning. That means evaluating what’s working — and, just as importantly, what’s not working — from the front end to the back office.
As you look to improve business agility to navigate the “new normal,” here are five insights that can help your organization find your best path forward:
1. Manual processes are holding you back in ways you may not realize.
Many organizations still look to manual processes to handle essential tasks. Manual copying and pasting of information from one data source to another and manual application of rules throughout the workflow are just a few examples. This work is tedious and unsatisfying to employees; errors are unavoidable, and overall operational efficiency inevitably suffers.
2. Many organizations could be automating in more places.
Despite advances in technology, many processes are still labor- and people-intensive. But many of these processes are ripe for automation.
With RPA, a software robot does the work like a human — the only difference is it never makes a mistake, and it works 24/7. In essence, the robots are a smart digital workforce working side by side with your employees. Unlike the inevitable errors humans will introduce to the process, RPA boasts 100% accuracy rates. RPA can also greatly improve throughput and operational efficiencies, and employees can be reassigned to higher-value initiatives within the organization.
3. Make sure you understand what’s working — and what’s not — before taking action.
Process discovery can help you lay the foundation for RPA and enables faster time to automation. You must be able to pinpoint exactly where bottlenecks and inefficiencies exist in your business processes before you can decide which tasks are best suited to delegate to a digital workforce. Lack of visibility into how your processes are executing at every step is a major obstacle to business productivity, as well as compliance and resiliency — which are more essential now than ever.
Remember, it’s not enough to just apply process improvements with RPA and process intelligence — you also need to track and measure the improvements to achieve maximum results. When organizations lack a holistic view and metrics for their operations, it’s difficult to know and report the effectiveness of process changes in meeting your business objectives.
4. RPA and artificial intelligence are a smart combination.
The truth is that RPA and artificial intelligence (AI) are not nice-to-haves, but necessities to effectively compete for the long haul. The powerful combination of RPA and AI enables processing for all data types from any channel — that means electronic data as well as unstructured data such as documents and emails.
AI and optical character recognition (OCR) technology automate the collection, comprehension and integration of documents required in business processes. This extends the ability of RPA so you can automate more of your processing while reducing operating costs, increasing productivity of existing staff and, ultimately, enhancing ROI.
5. You need the support of senior management and IT leaders.
Making the business case to your senior management and IT leaders and sparking their enthusiastic support is essential. The key lies in first understanding the perspectives and priorities of your senior management and IT leaders — understanding their goals and then presenting a compelling business case that aligns with their objectives. You should also be prepared to discuss the roadblocks encountered when attempting to reconcile repetitive manual tasks with automated processes used in other parts of the business.
The bottom line is that digital transformation doesn’t have to be daunting. And you don’t need to rip out the platform and systems core to your business. RPA and process intelligence can work side by side with your applications and knowledge workers to create a digital workforce and the ability to gain insight for further process improvements. You’re also setting the groundwork for more advanced machine learning and artificial intelligence (AI) in the future.
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e67fe9c0cc9031bf100df17c6871d573 | https://www.forbes.com/sites/forbestechcouncil/2020/05/20/the-effects-of-a-health-crisis-on-the-future-of-commerce/ | The Effects Of A Health Crisis On The Future Of Commerce | The Effects Of A Health Crisis On The Future Of Commerce
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COVID-19 is a serious contagion. As of yet, humans have little recourse to limiting the danger posed by this virus, though one tactic that most governments have relied on to various degrees of enforcement is isolating people from one another. A predictable outcome of such prohibitions against social interaction has been commerce calamity.
During a seven-year period between 2011 and 2018, the World Health Organization cataloged 1,438 virus outbreaks that it classified as epidemics. Everyone affected by a virus such as this suffers, as do friends, family members, and employees of businesses forced into limbo. Responsible action is vital to help lessen the impact.
Managing A Crisis
Historical data suggests that the economic effects of widespread illnesses are short‑term. During the worst of an outbreak, some products and services experience temporary booms, while other markets come to a veritable standstill until conditions improve. Individual businesses might collapse, especially when management panics, but, eventually, other entrepreneurs will come along to take up the slack in supplying those goods and services that consumers demand.
A lingering effect of any crisis is the uphill struggle that new businesses face to gain market share, achieve sustainability and contribute to a revival of the overarching economy. Obviously, it is preferable in the first place to never face bankruptcy. Crisis management is what separates the resilient from the collapsed, so managerial prudence is necessary to address key enterprise elements such as:
• The labor force: A crisis will introduce mobility concerns as employees and contractors become unable to show up to the office, factory or farm.
• Daily operations: Approved plans for material substitutions or changes to production processes will help keep an enterprise operational.
• Supply chains: Managers with foresight will have in place contingencies for acquiring necessary production inputs from alternative sources.
• Financial liquidity: An assessment of immediate cash flows and expected sources of income (including crisis grants or loan guarantees from the government) is important for understanding both current impacts on liquidity and projections of future impacts.
• Governance and compliance: Companies must continue managing taxes and regulatory submissions, plus temporary relief packages that might come from government in the form of grace periods or similar payment deferments.
• Brand strategy: Disruptions to established workflows can often provide opportunities to explore new methods of design, production and marketing.
During a crisis such as COVID-19, the most important consideration for entrepreneurs and managers is business continuity. Practical measures that might not be standard procedure can help an organization weather a proverbial storm (or sometimes a literal storm) and can include:
• Creating a secure infrastructure for remote work: Enterprise success depends upon team collaboration, so remote teams need tools and network connections that allow them to meet online in ways that promote the sharing of information while minimizing the risk of leaking such information to criminals or competitors.
• Executing a plan for operational shocks: Solid planning for a crisis is based on thoughtful risk analysis, and mitigating those potential risks during a crisis entails implementing a relevant plan.
• Giving back to the community: Large or small, a business that can think outside the box to help society get through a tough time will earn consumer loyalty.
The future is always uncertain. When any crisis hits, entrepreneurs must assess its potential blow to the organization’s business model. To that end, many analysts are taking a survey approach to understanding the impact of COVID-19, although, in the end, each individual business must determine ahead of time its best plan for survival.
Circling The Wagons
One option for a business that wants to survive is a merger. During times of economic uncertainty, entrepreneurs need extra credibility with investors and potential buyers. This, in turn, obligates them to make their enterprise not only attractive, but also visible amid society’s focus on the personal urgency of the crisis.
As with most global health emergencies, the economic impact of COVID-19 is leaving some companies desperate for help while infusing others with extra revenue. Currently, private equity has an advantage (subscription required) over entrepreneurs, with venture capital firms waiting in the wings to finance businesses that appear to be emerging from the contagion with the fewest persistent issues.
In China, which can be considered a leading indicator of fallout from the 2020 health crisis, merger activity is down by one-half from the same period last year. Around the world, more managers are invoking clauses that allow them to back out of deals when material adverse change (MAC) has a quantifiable effect on market conditions. On the plus side, 56% of executives surveyed globally are planning to make acquisitions over the next year, suggesting a general consensus that the virus will dissipate and economies will rebound.
What makes this crisis different is the inability to get hopeful merger participants and complementary stakeholders "in the room." Until M&A players sense a return to normalcy, due diligence might remain a particular challenge, and companies must, therefore, continue to concentrate on internal improvements that will be appealing to consumers and investors.
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73b7aebc3c2183c608e180a3b1f2a2db | https://www.forbes.com/sites/forbestechcouncil/2020/05/20/working-remotely-here-are-three-online-threats-to-watch-out-for/?sh=2bb301136fdd | Working Remotely? Here Are Three Online Threats To Watch Out For | Working Remotely? Here Are Three Online Threats To Watch Out For
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Within the last few months, as more offices have quickly moved to a remote work format, numerous attacks have plagued cyberspace.
If a work computer becomes infected by an attack, there is a risk for not only work data to be compromised, but personal data as well. Even worse, a hacked computer may shut down entirely, making repairs nearly impossible and leaving the employee with no option to work, since the current lockdown makes replacing hardware somewhat tricky (not to mention the health risks involved).
Here are three web security threats to keep in mind as teams work from home and how to steer clear of them.
1. Phishing And Spear-Phishing
Phishing and spear-phishing typically occur through email, instant messages or SMS. Hackers seek details that might help them gain sensitive information, such as confidential company data, credit card data or login credentials. Most recently, a large web hosting company fell victim to an internal spear-phishing attack, compromising half a dozen customer domains.
There are a few ways to recognize phishing attempts:
• Check email addresses. Email addresses can easily be spoofed to look like they are coming from legitimate email accounts. If anything in the content seems unusual — wording, tone, the specific request or communication, etc. — or the email comes as a surprise, check with the alleged sender to see whether they sent the email with that particular attachment or request before proceeding to open the documents or links included in the email.
• Be wary of links. Additionally, links may lead to different URLs than what is listed. Therefore, it's essential to check before clicking on anything. Hover the mouse over the link to see if what is written matches what comes up in the preview link.
• Take note of mass emails. Hackers often use online mass email distribution services as an easy way to attack more than one person at a time. If there is no email in the 'To" field, this indicates that the note was sent to multiple people. Another indication is if the start of the email does not address someone personally, it is likely going to numerous parties.
• Abnormal, urgent requests. Similar to spam phone calls, phishing emails tend to apply an unreasonable sense of urgency. A company will rarely threaten to deactivate an account if the receiver does not provide a swift response. For example, in March of this year, cybercriminals sent emails to customers of two web hosting companies with the subject line "Service suspended" and provided a payment link to evade the urgent situation, causing panic among users.
2. Pretexting
Pretexting involves obtaining information through a series of crafted lies. Someone initiates the scam by pretending to need sensitive information to perform a critical task. The data could be a bank number, Social Security number or passcode to a workplace login. Some ask questions that may seem obscure when they are actually seeking answers to well-known security questions for things like bank accounts and credit cards.
Pretexting typically uses someone in a place of power — such as a boss, bank or member of law enforcement — to make a person more willing to respond and handle the task. Similar to phishing, it is crucial to inspect and hover over the email address to verify where and whom it is coming from before clicking or responding.
Once pretexters collect the data or critical information, they often sell the data to "data brokers," which include scammers and those who commit identity theft. A typical attack would require the end users to provide credentials directly or through filling out a form on a malicious website that copies the original.
As a general rule of thumb, always consider any incoming email from a co-worker that is not related to that person's typical day-to-day responsibilities suspicious, even if it is coming from a known address. One should not give out personal information to anyone electronically or over the phone unless they were the ones to initiate contact or are sure it is safe to do so.
3. Video Call Hacking
While VPNs, email and phone calls are the new normal with the remote workforce, online videoconferencing is peaking in popularity. In the first few months of 2020 alone, Zoom has had 200 million daily participants, a massive jump from its 10 million daily participants in December 2019. Microsoft Teams total video calls grew over 1,000% in March.
With this popularity comes identifiable security vulnerabilities as well as data leaks. The best option to limit security issues is to have employees utilizing corporate-approved conferencing services, but not all companies have this luxury. While not every videoconferencing service is the same, there are a few things to keep in mind when using third-party applications:
• Use passwords. If possible, be sure to password-protect any video call to avoid unwanted guests. Links that are accessible to anyone can cause vulnerabilities for the content and conversations happening between coworkers.
• Use waiting rooms. Do not allow users to join the call before the host. Many videoconferencing systems have the option to use waiting rooms or lobbies, which help to streamline who is participating and alleviate "bombing" during meetings.
• Protect content. Be careful with posting and sharing proprietary information in any group chats on video calls. If possible, also limit screen-sharing access to only those who need it to steer clear of pop-ups during meetings.
• Avoid plug-ins. While there are tools that "help" with conferencing, they may lead to security issues, so it is best not to use third-party plug-ins for both browsers and conference calls.
Working at home can bring new challenges and distractions to everyday life, but don't let online threats bog down business productivity. Ensure that team members are alert and prepared for any risks that may come their way.
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abfec7752c2ea521f6db1491f722ab5d | https://www.forbes.com/sites/forbestechcouncil/2020/05/21/mobile-web-at-its-tipping-point-during-the-pandemic/ | Mobile Web At Its Tipping Point During The Pandemic | Mobile Web At Its Tipping Point During The Pandemic
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Mobile service providers are struggling to keep subscribers connected during the current COVID-19 pandemic. There has been a dramatic increase in voice and data activity as people rely heavily on mobile networks for education, entertainment and important updates on how to prevent the spread of the virus. Due to social distancing requirements, almost every activity needs to be done remotely, including working, learning, shopping and training. For some religious communities, even worship services are streamed over mobile networks.
Now more than ever, smart network management is crucial for serving more subscribers using the same bandwidth to ensure connectivity and a positive user quality of experience even with huge traffic surges. Even after the disease's peak has passed, there will continue to be more virtual activity, and mobile networks will need to handle higher traffic volumes reliably.
Mobile Networks At The Tipping Point
Mobile service providers are announcing record levels of traffic. Verizon has seen a huge spike in cellphone usage, higher than the usual peak days like Mother's Day. Orange Group told Euronews that the increase in mobile traffic across Europe is similar to levels experienced over the Christmas holidays.
An inspection of our global customer base traffic revealed that mobile operators are experiencing up to a 33% increase in concurrency volumes, which means more people are connecting simultaneously to the same nodes and increasing signaling storms, which could negatively impact connectivity. In addition, one of the most important KPIs, time to first byte, has increased overall by 20%, indicating that most subscribers are experiencing a delay browsing the mobile web or using applications due to congestion.
According to a Financial Times report (paywall), British ministers are demanding an improvement in the coverage of services due to a major outage, a high number of dropped calls and low audio quality. In India, Google, Netflix, Hotstar, TikTok and others have ceased transmitting video in high definition to reduce the strain on mobile networks. There is a concern that that increase in data traffic could limit subscribers' ability to receive important government announcements regarding the virus.
The Need For Smart Network Management
According to the GSMA, it is imperative for mobile service operators to take measures to ensure connectivity during the current crisis. Network management solutions can enable operators to "manage network traffic and quality-of-service parameters to ensure network resilience and access to the full range of services by consumers and businesses" during the lockdown.
There are several traffic management techniques that can streamline data throughout. TCP layer transmission rates can be adjusted based on real-time network conditions to increase cell throughput. The definition of video streaming can be adjusted based on network conditions, and in some cases, subscribers can even choose standard definition video, which slows down the depletion of their data package to lower their out-of-pocket costs while also stretching network resources by resulting in a lower network load.
Radio resources can be also be prioritized based on the urgency of the user request to meet more subscribers' expectations with the same capacity. For instance, a video that's being watched later can have a lower scheduling preference while online shoppers gain a limited extra boost of radio resources.
Operators are also struggling with an increased demand for security and parental control services due to an increase in screen time as more and more children are learning online. The cost of providing security and parental control services is growing due to the massive increase in data consumption. However, since parental control services are usually one small addition to a data package or are even given away for free, mobile operators are faced with eroding revenues.
There are more cost-effective ways such as DNS-based protection, but these methods are less rigorous and can be easily overridden by children and hackers faking their IP addresses. There are more sophisticated methods that can identify when there is an attempt to work around content control solutions and then isolate the traffic and inspect the content to see if it's appropriate. This provides more effective protection and doesn't threaten mobile operator profitability.
These solutions can be acquired from vendors for their specific equipment or from network management specialists that can be used to traffic balance across different makes and manufacturers. Many mobile operators often are concerned that there may be a conflict of interest if vendors are responsible for solutions that reduce the need to invest in more equipment. In addition, more holistic solutions that work across all types of solutions can utilize more sophisticated algorithms that can balance different types of traffic that span different networks.
During the crisis, a significantly great number of people are glued to their screens, so every hiccup counts. Mobile operators need to provide a resilient infrastructure that provides the quality user experience and protection subscribers need while squeezing out the most utility from the existing network infrastructure. Smart network management solutions can minimize user frustration, prevent brand erosion and keep customers loyal after the COVID-19 crisis is over.
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ef039b3dee8369fce6d6be45c2296cc7 | https://www.forbes.com/sites/forbestechcouncil/2020/05/22/online-ordering-is-key-to-retails-post-pandemic-future/?sh=3320f43f5046 | Online Ordering Is Key To Retail's Post-Pandemic Future | Online Ordering Is Key To Retail's Post-Pandemic Future
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Many businesses in the physical retail space are seeking new ways to stay afloat in the wake of the COVID-19 outbreak. Many dine-in restaurants, for instance, are refocusing their efforts to make takeout a priority, while more brick-and-mortar retailers explore curbside pickup and other alternative sales channels.
The buy online, pick up in-store (or BOPUS) approach to sales is not exactly new. That said, millions of consumers who may have never used BOPUS before are getting a crash-course introduction to the channel.
Many customers who previously avoided digital sales channels as part of a physical retail experience are now experiencing it for the first time. Given the convenience of BOPUS, a considerable number of these buyers are likely to stay on board, even once the outbreak subsides. I predict a long-term increase in usership as a result of these recent developments.
Let’s look at grocery sales to illustrate this point. The “click and collect” approach was already projected to be a $35 billion channel by the end of 2020. Other data found that 92% of U.S. respondents would “definitely” or “probably” try internet delivery services; 78% of respondents said the same of in-store pickup.
Examining usership across verticals, the data suggested that roughly one-third of US consumers had already tried it. Keep in mind that these projections predate the COVID-19 outbreak. The true figures in terms of experimenting and adoption are certain to be significantly higher now.
New Opportunities, New Vulnerabilities
Digital channels have a lot to offer consumers in the physical retail space. Some of the primary advantages of click-and-collect include:
• Avoiding Shipping Charges: With in-store pickup, there’s no need to pay the costs associated with ordering products online.
• Saving Time: There is also no need to browse in-store or wait at the checkout line. BOPUS enables a smoother experience with less friction.
• Picking Up Purchases The Same Day: No more waiting for shipping; buyers can simply pick up goods from the store at their convenience.
• Guaranteeing An Item Is In-Stock: No more driving to the store only to find that the item is out of stock.
• Shopping At The Customer’s Leisure: Consumers can squeeze shopping between events on their calendars and can shop from any location as long as they have a smartphone.
In many ways, it’s a “best of both worlds” situation. BOPUS combines the most convenient elements of the brick-and-mortar and e-commerce channels. That said, there are also challenges that come with widespread adoption of BOPUS technology.
First, merchants need to be able to scale their operations in an efficient manner for BOPUS to work effectively. For instance, let’s assume you’re a brick-and-mortar merchant. You roll out an online ordering platform but don’t adjust any other facets of your operations.
With consumers trapped at home, you get a sudden surge in BOPUS orders that you’re not prepared to fulfill. This leads to delays, aggravation, canceled orders and chargebacks. You could do potentially irreversible damage to your brand image.
There is a downside to convenience. While online ordering is a winning prospect in isolation, it could quickly turn into a source of loss if merchants are unprepared to meet customers’ expectations.
Making BOPUS Work
Customers may be more understanding right now given the circumstances. That doesn’t guarantee they will be as forgiving with missteps in rolling out online ordering and in-store pickup in the mid- to long-term, though.
To make for a viable BOPUS strategy, sellers need to build real-time inventory visibility that can offer customers a complete view of products in stock. The system needs to be updated in real time, with accurate product counts. This will prevent a situation in which a customer completes an order, only to learn that the merchant does not have the purchased item in stock.
Also, facilitating order fulfillment may call for changes in store layout and policies. Sellers may need to overhaul their approach to inventory management and their supply chain to enable rapid order fulfillment. The same goes for providing a smooth handoff of goods to customers, regardless whether it’s in the store, at the curb or at the buyer’s door.
We also can’t overlook the importance of a stable and reliable digital platform. Contemporary shoppers have little patience for apps and other digital offerings that are prone to lagging, crashes and other errors. Individual customers have different preferences and are looking for different experiences. Thus, providing a consistent, quality experience requires an individualized profile of customers using a data-driven understanding of consumer behavior.
Online ordering for in-store pickup represents a great opportunity for retailers looking to thrive in a post-coronavirus retail environment. Such a move needs to be handled delicately and with precision, though. Otherwise, it may become a losing prospect.
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8f1e6367a16dfd503561f752e19c259c | https://www.forbes.com/sites/forbestechcouncil/2020/05/22/solving-the-application-performance-challenges-of-digital-transformation/ | Solving The Application Performance Challenges Of Digital Transformation | Solving The Application Performance Challenges Of Digital Transformation
Photo: Getty
Even in times of economic uncertainty, some industries and businesses can grow rapidly. Today, for example, food delivery, e-commerce, and remote access and collaboration services are experiencing exploding demand from consumers and businesses that are making major behavior changes, many of which may become permanent.
Companies in these industries need to rapidly achieve greater speed and scale to handle a dramatically higher volume of website visitors, sales transactions, delivery requests and video streaming without users experiencing service degradation. And this is a challenge many companies will face as their industries recover and grow.
To achieve greater application speed and scalability, most businesses will have to modify their infrastructure or applications. The strategy they use will determine the performance gains, time to value and ROI.
In my last post, I discussed a digital integration hub (DIH) as a strategy for powering real-time business processes. A DIH architecture is particularly beneficial for business processes involving multiple applications and/or multiple data sources, creating an API services layer that aggregates data from one or many datastores, caches that data, utilizes massively parallel processing (MMP) to process the data in real time, makes that data available to one or many business applications, and synchronizes any application changes to the data back to the underlying datastores that were changed.
However, accelerating and scaling a single existing application to meet increasing demand is a somewhat different challenge and requires thinking through different issues. Let’s examine the pros and cons of four different approaches to speeding up and scaling out individual applications.
Redesign from scratch to deliver the necessary performance and scale
Pros: This is the ideal approach if time and money are not an issue. You can use any new hardware and software strategy to achieve the desired performance and scale.
Cons: Redesigning an application from scratch can take years, have a very high cost and impact multiple other business applications. Meanwhile, your business will continue with your existing application in the interim, so you risk customer churn from frustrated users and lost opportunities.
Make infrastructure upgrades, such as adding RAM, CPUs and servers
Pros: This is a common stopgap approach. It can be less expensive and faster than a complete redesign, and it may be a good solution for systems where the required performance gains are not great.
Cons: If you have a rapidly growing system, this approach can still lead to significant time and cost challenges — without ever providing the long-term benefits of a complete redesign. In addition, this strategy just “opens the pipes” of the existing infrastructure, which means it may support increased scale but not increased speed. For example, if the time required for a disk-based database to read and write from disk is a limiting factor of application speed, then adding RAM, CPUs and servers won’t remove this limitation. Further, spreading an application across multiple servers introduces significantly more complexity because the application may need to be rewritten to manage database sharding across a cluster of database servers.
Migrate to an in-memory database
Pros: An in-memory database can significantly increase the speed of an application. Because all data resides in RAM, an in-memory database eliminates all the processing delays caused by disk access. The performance gains can also be maintained at scale.
Cons: Migrating the database of an existing application requires a huge amount of work and testing. In addition, the application may need to be rewritten to work with the in-memory database. If other applications access the original application database, this strategy will cause problems for those applications, which may then also need to be rewritten to use the in-memory database.
Deploy an in-memory data grid
Pros: An in-memory data grid delivers the same speed and scalability benefits as an in-memory database. However, it can be far faster to implement and far more cost-effective because you can add the data grid between the existing application and database layers without significant modifications to either. Further, the data grid won’t impact other applications that access the underlying database. Open-source in-memory data grid alternatives are available, allowing your company to get started easily and inexpensively and access free online resources for assistance.
Cons: Utilizing an in-memory data grid involves moving to a distributed computing paradigm, which may require some changes in approach if distributed computing is new to your company. For example, clustered computing may require adding an “affinity key” for data types, so all data with a single key can be cached on the same server to minimize network data movement and optimize performance. While this does not involve a rewrite of the application or database, it may require a change in thinking. In addition, the data grid is deployed on a cluster of commodity servers and will require an incremental investment in hardware to scale your application and maintain the desired level of performance.
To choose the optimal approach to application performance and scaling when facing rapid growth, businesses must assess the performance they require, the time window of opportunity to achieve that level, the short- and long-term costs of the chosen approach, and how long the modified architecture will serve its intended purpose before a major investment may be needed. Businesses that fail to consider all these factors risk wasting precious time and resources, frustrating their customers, and falling behind the competition.
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92cc74cc65245b90e6e5c65fedc2d0fa | https://www.forbes.com/sites/forbestechcouncil/2020/05/27/16-industries-that-are-hungry-for-development-talent/ | 16 Industries That Are Hungry For Development Talent | 16 Industries That Are Hungry For Development Talent
Photo: Getty
When most people think about a career in development, they likely think about working for tech giants or software startups. However, in our tech-forward world, the need for talented developers has extended far beyond companies in the technology sector. Today’s devs can look to fast-growing industries like healthcare, automotive and even agriculture for new and exciting opportunities to use their skills.
We asked a panel of Forbes Technology Council members which non-tech industries are eagerly searching for new development talent. If you’re looking for dev work, try one of these 16 fields.
1. Research, Data And Analytics
Learning Python and PHP has become more common in areas where large amounts of data need to be analyzed and presented in a meaningful way. Technologies that were once exclusively used in software development scenarios are now being leveraged by nontechnical people. In the interest of using the best tools and skills for the job, they have acquired skills that once belonged in software development. - Danny Acuna, Logica Ratio
2. Healthcare
Medical applications today require more software than ever before. The need for telehealth has expanded instantly due to COVID-19’s global immobilization and people’s need for access to diagnostics. Developers are needed to advance medical diagnostics with artificial intelligence and machine learning to enable greater remote access to medical resources. - JiNan Glasgow George, Magic Number, Inc.
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3. Government Agencies
Government agencies need developers to rethink how governments operate and deliver services to constituents. From leveraging the critical systems running on mainframes to today’s mobile-enabled applications, developers can help bridge the divide across mainframe and distributed systems and create the next-generation government that can react to changes in legislation and support citizens’ needs. - Ram Chakravarti, BMC Software
4. Food And Beverage
Many food and beverage companies are seeking new ways to connect, engage and sell to their customers directly outside of traditional retail. One of the main avenues to do this is to establish a direct-to-consumer strategy utilizing e-commerce. Typically, these organizations already have IT departments dedicated to existing infrastructure and will need to hire new dev resources for these initiatives. - Chris Shalchi, BigCommerce
5. Agriculture
The agriculture industry will definitely need more developers in the near future, as it is lagging behind in terms of technology adoption. By using new technology solutions, the sector will achieve better financial results and efficiency. A great example of that is the usage of drones for crop seeding and crop monitoring. - Ivailo Nikolov, SiteGround
6. Automotive
The automotive industry needs new dev talent, primarily due to increasing software demands for performance, safety and entertainment. Application security challenges in Internet of Things environments and customer demands for ease of use and quality are also driving needs. Setting up campuses in software hot spots, like Silicon Valley, is one way some car companies have more successfully recruited developers. - Manish Gupta, ShiftLeft
7. Ride-Sharing
Uber and Lyft operate at a loss annually. Looking at the cost breakdown of a single ride, these companies lose more money than they are earning due to the immense cost of human labor. To be profitable, these companies must shift to a robo-taxi model. Thus, these firms are seeking new development talent to build the complex hardware and software necessary to make this lucrative evolution a reality. - Ashwini Choudhary, Recogni
8. Education
Talk to any IT staff person from a school struggling to keep students engaged during COVID-19 and it becomes clear how thin schools are stretched for tech talent. While schools may have sufficient budgets for tech equipment and software, most don’t prioritize budgets for tech staff. This needs to change so our teachers can use the latest ed-tech tools and resources in their classrooms and beyond. - Anna Frazzetto, Harvey Nash/NashTech Global
9. Financial Services
The fintech revolution and new digital channels of services have introduced new challenges to the area of cybersecurity. With mobile banking, neo banks, peer-to-peer payment, insurance tech and other digital services, new attack surfaces and vectors have added a new dimension of risk. The financial services industry is driving the demand for developers as well as cybersecurity professionals. - Kumar Ritesh, CYFIRMA
10. Product Management
After decades of working at their craft, devs have seen the product lifecycle up close. The insight they could bring to any company looking to start a new software product would be invaluable. They would help spot issues well in advance of most people trained in the optimal software development life cycle. If they’re good at communication and documentation, they have all the makings of a great product manager. - Luke Wallace, Bottle Rocket
11. Hospitality Management
It’s been my experience that the backend systems in the hospitality management industry are outdated and provide limited integrations. There are great advances in technology on the consumer-facing side, but booking and support systems rely on outdated software and infrastructure. - Jesus Bello, Sabal Tech
12. Work-Life Technology
The boundary between business and technology blurred a long time ago. The split of work and life is also fading away, and COVID-19 only accelerates such a split. As technology aids a no-code/low-code evolution, developers are elevated to more design-centric app and content development roles to improve quality of life both at work and home. - Anbu Muppidathi, Cognizant
13. Nonprofits And Social Good Companies
I’m not an expert in either of these realms, but these are areas that are traditionally underfunded—and relatively low-paying. As people fall back to their common humanity, I would hope that these companies—and the social good that they drive—become a new form of capital. - Cecile Lee, Trendalytics
14. Logistics And Supply Chain
Logistics is among the oldest professions in the world, but it represents a trillion-dollar opportunity that has yet to undergo a digital transformation. From incorporating AI to increase the accuracy of the estimated time of arrival (which has a waterfall effect on the entire supply chain) through building Iron Man-like suits to increase safety in warehouses, developers should look to the supply chain for tremendous opportunity. - Lidia Yan, NEXT Trucking
15. Construction
Developers can help the construction industry streamline and optimize processes, unify isolated stakeholders and keep the industry growing. They’re producing a lot of cloud software now but are rapidly expanding into autonomous construction, virtualization applications, analytics, real-time collaboration, wireless monitoring, green construction and more. - Thomas Griffin, OptinMonster
16. Advertising And Marketing
With augmented reality and virtual reality being heavily consumed by the general public, marketing and advertising have been changing and will continue to evolve. Developers have been in the marketing and advertising industry for a long time, but now it is becoming commonplace for advertising agencies to have heavy tech teams and devs. - Alexandro Pando, Xyrupt Technologies
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a25fb67f45ec5024e54ccf5387fb2da3 | https://www.forbes.com/sites/forbestechcouncil/2020/06/01/i-dont-scan-qr-codes-and-neither-should-you/ | I Don't Scan QR Codes, And Neither Should You | I Don't Scan QR Codes, And Neither Should You
Photo: Getty
I don’t scan QR codes, and neither should you, especially if you care about cybersecurity.
A QR code is a two-dimensional barcode that is readable by a smartphone with a camera or a mobile device with a similar type of visual scanning technology. It allows the encoded image to contain over 4,000 characters in a condensed, machine-readable format and was designed as a rapid method to consume static content based on a specific task. Once a program generates a static QR code (as opposed to a dynamic QR code that can change fields like a URL), that code cannot be modified to perform another function.
Surprisingly, that is not the source of cybersecurity risk, even for dynamic QR codes. The risk is in the content itself that has been generated and potentially displayed for an unsuspecting user to scan. Once they do, it can be the prelude to an attack.
To dive a little deeper, a QR code can contain the following risks:
Contact details: A QR code is similar to a virtual business card or VCD file that includes all your contact details such as phone number, email address and mailing information. This information is automatically stored in the device’s contact list when scanned. If the data is malicious, it could trigger an exploit on the device or place a rogue entry in your phone for your favorite airline or credit card.
Phone: Scanning a QR code automatically loads or starts a phone call to a predefined number. With all the recent robocall and SIM-jacking attacks, this is another method for a threat actor to access your phone and identity. You are basically calling someone you do not know and handing over your caller ID information.
SMS: Scanning a QR code initiates a text message with a predetermined contact by name, email address or phone number. The only thing the user needs to do is hit send, and you could potentially reveal yourself to a threat actor for SMS spam attacks or trigger the beginning of a SIM-jacking attack. A little social engineering is all it takes to convince the user to hit the send button
Text: Scanning a QR code reveals a small amount of text in the code. While this seems low risk, QR codes are not human-readable and unless you scan one, you have no idea that the contents are actually just a text message.
Email: Scanning a QR code stores a complete email message with the subject line and recipient. All that is required is to hit send, and this could be the beginning of any form of phishing or spear-phishing attack. The threat actor knows your email address because you validated it by hitting send to an unknown destination.
Location coordinates: Scanning a QR code automatically sends your location coordinates to a geolocation-enabled application. If you are concerned about your data and location privacy, why would you ever do this?
Website or URL: Scanning a QR code can automatically launch and redirect you to a website. The contents could contain malware, an exploit or other undesirable content.
Calendar event: Scanning a QR code automatically adds an event to the device’s calendar, with the option of a reminder. Outside of a vulnerability in the local calendar application, the contents may be unwanted in a business or personal calendar, and deleting a recurring meeting is an annoyance if it was improperly entered.
Social media profile: Scanning this type of QR code initiates a “follow” for a specific profile on sites such as Instagram or Twitter, using the scanner’s personal profile. Depending on the social media platform, the account being followed may have access to your personal information and be aware that you are following them.
Wi-Fi network: This QR code stores Wi-Fi credentials for automatic network connection and authentication. If you consider all the threats of open Wi-Fi networks and even closed networks that use WPA2, the introduction of an unknown or insecure network to your preferred list is just a bad idea.
App store: Scanning links to a page directly on an app store can make an application simple to download. While this is convenient, the listing could be malicious (especially on Android devices) or could be a spoofed page using an embedded URL to trick you into loading an unsanctioned malicious application. Your best bet is to always navigate to an application yourself and not rely on a hotlink.
Finally, let's address dynamic QR codes. These codes are generated once, but the data stored on them can be edited at any later date. They can include password protection and embedded analytics so creators can track how they are used. Dynamic QR codes can even add simple logic such as device-based redirection to have different behaviors for Apple iOS devices versus Google or Android. For example, based on the device, they can be redirected to the appropriate app store or music library. That alone allows a threat actor to target device and application exploits to specific assets to ensure a higher rate of success.
If you are ever out and about and see a QR code on a wall, building, computer screen or even a business card, do not scan it. A threat actor can easily paste their malicious QR code on top of a real one and create their own copies, and based on appearance, you have no idea if the contents are safe or malicious. To that end, I never scan QR codes, and neither should you.
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