Senin, 30 September 2019

Volkswagen: Germany's first mass lawsuit begins - BBC News

Germany's first mass lawsuit begins as 450,000 owners of diesel Volkswagen cars take on the company.

They argue they are owed compensation for being sold cars based on misleading emissions data.

The scandal has already cost VW €30bn (£26.6bn).

It has faced class action claims in the US and Australia, but this is the first time Germans could pursue group claims since the law was changed last year.

This trial will settle points of law and the claimants will later be able to file follow-up claims for compensation if they are successful.

The trial, at Braunschweig Higher Regional Court, about 20 miles from VW's Wolfsburg head office, is likely to last years, however.

Part of VW's settlements so far include a deal to buy back 500,000 cars in the US, where it has agreed to pay more than $25bn (£20bn).

In Australia the company will pay 127 million Australian dollars (£70m) to compensate owners, paying them A$1,400 apiece.

Last week it emerged that three current and former Volkswagen executives were charged with market manipulation in connection with the diesel emissions scandal.

Chief executive Herbert Diess, chairman Hans Dieter Pötsch and ex-boss Martin Winterkorn, did not inform investors early enough about the financial fallout, German prosecutors allege.

In 2015, the firm admitted using illegal software to cheat on emissions tests. VW said it was confident those allegations would prove groundless.

This may be a landmark lawsuit - and in terms of the sheer number of claimants, it's certainly attention grabbing. But it may not be the biggest concern for Volkswagen right now.

Unless there is a settlement, the legal process is likely to take take years - VW expects it to take at least four. Even if they win, car owners will have to go back to court to get compensation.

Meanwhile, VW's chairman and chief executive are both fighting criminal charges for alleged market manipulation linked to the diesel scandal.

Volkswagen itself is facing the possibility of hefty fines from the EU, after being accused of colluding with other manufacturers to delay the introduction of emissions control technology.

It's safe to say its lawyers are already keeping pretty busy at the moment. And in the meantime, the company is trying to turn itself into a leader in the market for electric cars.

Against that background, the group lawsuit may seem for the moment like just another irritation.

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https://www.bbc.com/news/business-49878247

2019-09-30 10:16:57Z
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Asian shares mostly flat, Japan hurt by Sino-U.S. tensions - Investing.com

By Hideyuki Sano and Vidya Ranganathan

TOKYO/SINGAPORE (Reuters) - Asian stock markets, including China's, were little changed on Monday, shrugging off news that the U.S. administration is considering delisting Chinese companies from U.S. stock exchanges.

MSCI's broadest index of Asia-Pacific shares outside Japan () was flat, while China's Shanghai stock index () slipped 0.1%, barely responding to any of the concerns around the latest Sino-U.S. tensions that caused the Nasdaq index () to fall more than 1% on Friday.

European shares were seen struggling when they open for trading. Pan-European Euro Stoxx 50 futures () were down 0.11%, German DAX futures () down 0.08% and futures () 0.16% lower.

Risk assets took a hit in U.S. trade on Friday following news the Trump administration is considering radical new financial pressure tactics on Beijing, including the possibility of delisting Chinese companies from U.S. stock exchanges.

The report knocked Chinese shares listed on U.S. exchanges, with Alibaba Group Holding (N:) falling 5.15% and JD.com (O:) 5.95% on Friday.

Worries such an escalation would hurt Japan the most weighed on the Nikkei (), which shed 0.9%. U.S. stock futures () gained 0.35%, paring most of Friday's 0.53% fall in the index.

Trading in Chinese markets was quiet ahead of a long break. Chinese share markets will trade only on Monday this week ahead of the country's National Day holiday, which runs until Oct. 7.

There were mixed signals from China's manufacturing surveys on Monday, which showed sustained weakness in exports and surprising improvement in domestic consumption indicators, and a Chinese central bank statement briefly hinting at plans for more stimulative policies.

China's yuan was little moved at 7.1260 yuan per dollar, while the rallied a bit from Friday's three-week low of 7.1520.

The delisting of Chinese companies from U.S. stock exchanges was part of a broader effort to limit U.S. investment in Chinese companies, two sources briefed on the matter told Reuters.

A U.S. Treasury official said the United States does not currently plan to stop Chinese companies from listing on U.S. exchanges, Bloomberg reported on Saturday.

"While China runs a current account surplus and is a net creditor nation, Chinese companies are net debtors and rely on foreign capital," Koji Fukaya, president of Office Fukaya Consulting.

"Washington seems to be trying to limit Chinese companies' activities by putting pressure on their funding," he said.

Still, with trade talks between the United States and China expected to be held Oct. 10-11, many market players are hoping such drastic measures on capital markets will be avoided.

"At this point, markets will have to wait and see. Of course we need to be guarded against more crazy headlines, but this week could be a bit calmer given holidays in China. Economic data will likely be the main driver for markets," said Kyosuke Suzuki, director of forex at Societe Generale (PA:).

U.S. data on Friday showed consumer spending barely rose in August and business investment remained weak, suggesting the American economy was losing momentum as the trade dispute drags on.

Industrial output in Japan and South Korea, released Monday morning, dropped more than expected, underscoring the headwinds from the trade war.

Investors are also keeping a wary eye on U.S. politics.

U.S. House Speaker Nancy Pelosi said public opinion is now on the side of an impeachment inquiry against Trump following the release of new information about his conversations with Ukrainian President Volodymyr Zelenskiy.

Major currencies were little changed, with the yen trading slightly firmer at 107.75 yen .

The euro hovered around $1.0932 (), having sunk to a 28-month low of $1.0904 on Friday as concerns about tepid growth in Europe weighed on the common currency.

Sterling traded at $1.23 , not far from Friday's low of $1.2270, its lowest since Sept. 9.

Boris Johnson said on Sunday he would not quit as Britain's prime minister even if he fails to secure a deal to leave the European Union, insisting only his Conservative government can deliver Brexit on Oct. 31.

Oil prices dipped but stayed off last week's lows.

Saudi Arabia's crown prince warned in an interview with CBS program "60 Minutes" aired on Sunday that crude prices could spike to "unimaginably high numbers" if the world does not come together to deter Iran.

But Crown Prince Mohammed bin Salman said he would prefer a political solution to a military one, adding the Sept. 14 attacks on the kingdom's oil facilities were an act of war by Iran.

Brent crude () futures fell 0.36% to $61.64 a barrel while U.S. West Texas Intermediate (WTI) crude () fell 0.14% to $55.83 per barrel.

(This story corrects headline and first paragraph to Asia shares 'mostly flat' (not 'edge lower') and in 2nd paragraph the MSCI Asia-ex-Japan index to flat (not down 0.55%)

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https://www.investing.com/news/stock-market-news/asian-shares-mostly-flat-japan-hurt-by-sinous-tensions-1988652

2019-09-30 06:35:00Z
CBMib2h0dHBzOi8vd3d3LmludmVzdGluZy5jb20vbmV3cy9zdG9jay1tYXJrZXQtbmV3cy9hc2lhbi1zaGFyZXMtbW9zdGx5LWZsYXQtamFwYW4taHVydC1ieS1zaW5vdXMtdGVuc2lvbnMtMTk4ODY1MtIBAA

Minggu, 29 September 2019

See National Coffee Day deals across Michigan - MLive.com

According to the National Coffee Association, 64 percent of Americans drink at least one cup of coffee a day.

That number is likely to increase on Sunday, National Coffee Day, because chains large and small are offering deals that allows customers across the United States to get a cup of Joe for free.

Many retailers are also using the day to give back to charity using customer purchases. Here is a look at the freebies and deals Michiganders should be aware of.

A customer pours coffee into a mug at Julianna's Restaurant in Kalamazoo, Michigan on Monday, July 8, 2019. Emil Lippe | MLive.com

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Barnes & Noble

Barnes & Noble

Customers get a free hot or iced tall coffee with the purchase of any bake case item from a Barnes & Noble Café on National Coffee Day.

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A barista reaches for a coffee cup during the grand opening of Biggby Coffee on Horton Road on Feb 3, 2016. MLive File Photo

Biggby Coffee

Free hot brewed coffee up to 24 ounces on National Coffee Day.

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Brueggers Bagels

Brueggers Bagels

Through Sunday, all Bruegger's Bagels Inner Circle members will get one free medium coffee with purchase. Sign up for the Inner Circle here: Inner Circle Rewards Program. 

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Circle K on Vine Street in Eastlake, Ohio. Photo by Chuck Crow

Circle K

Circle K is offering a free medium coffee to customers on National Coffee Day via the Circle K app at participating locations. Customers can also enjoy a free Belvita Breakfast Biscuit with their free coffee.

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Coffee Bean & Tea Leaf

Coffee Bean & Tea Leaf

Guests can receive a complimentary 16 oz brewed coffee (hot or iced) with any food or bakery item purchase (minimum of $2). The offer is available all day and is limited to one complimentary coffee per guest.

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Del Taco

Customers can get a free value iced coffee with $3 purchase.

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Dunkin'

Dunkin' is celebrating National Coffee Day with a buy one, get one offer. On Sunday, September 29, anyone who purchases a hot coffee at participating Dunkin' restaurants nationwide will get one hot coffee free (of equal or lesser value).

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Godiva

In celebration of National Coffee Day, you can receive a free 12-ounce hot or iced coffee at Godiva Café locations with any purchase.

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Krispy Kreme

Krispy Kreme

Caffeine seekers can score both a free small coffee and glazed doughnut on National Coffee Day.

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Associated Press.

7-Eleven

This national grab-and-go chain is honoring the holiday by charging just $1 for any size coffee all day on Sunday.

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Tim Hortons

Tim Hortons

Tim Hortons guests can receive one free Tims Rewards reward when they order through the Tims Rewards mobile app. Customers can redeem their free reward for coffee and eligible beverages and baked goods.

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https://www.mlive.com/news/g66l-2019/09/9e176b56516557/see-national-coffee-day-deals-across-michigan.html

2019-09-29 12:43:07Z
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Wall Street Falls in Love Again With Companies Loaded Up on Debt - Bloomberg

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Wall Street Falls in Love Again With Companies Loaded Up on Debt  Bloomberg
https://www.bloomberg.com/news/articles/2019-09-29/wall-street-falls-in-love-again-with-companies-loaded-up-on-debt

2019-09-29 11:00:00Z
CAIiEDNAfCCIPSkbeecRkJpSIR0qGQgEKhAIACoHCAow4uzwCjCF3bsCMIrOrwM

Zantac: CVS latest to suspend heartburn drug over cancer fears - BBC News

US retailer CVS has become the latest to suspend the sale of a heartburn drug being investigated for links to cancer.

It follows concern in several countries over the presence of impurities in Zantac and other ranitidine products.

Canada and France have already announced Zantac recalls. The US and the European Union are investigating.

Health authorities say there is no immediate risk, but patients have been advised to consult a doctor who can prescribe alternatives to ranitidine.

What is the fear about?

On 13 September, both the US Food and Drug Administration (FDA) and the European Medicines Agency (EMA) published their decisions to review the presence of N-nitrosodimethylamine (NDMA) in medicines containing the drug ranitidine.

NDMA is classified as a probable human carcinogen (a substance that could cause cancer) on the basis of animal studies.

NDMA is found in water and foods, including meats, dairy products, and vegetables, but is not expected to cause harm when ingested in very low levels, EMA says.

Ranitidine products are used to reduce the production of stomach acid in patients with conditions such as heartburn and stomach ulcers.

They are available over-the-counter and on prescription.

Who has recalled the products so far?

CVS's announcement on Saturday said it was suspending the sale of Zantac and CVS Health brand ranitidine products "out of an abundance of caution".

"Zantac brand products and CVS brand ranitidine products have not been recalled, and the FDA is not recommending that patients stop taking ranitidine at this time," the company said.

Walgreens, Walmart and Rite Aid in the US had earlier taken a similar decision.

Canada and France have removed the drugs from pharmacy shelves. A number of other countries have followed suit.

Drug makers are also recalling products containing NDMA.

Sandoz, owned by Novartis, told the BBC it was recalling "several batches of its ranitidine-containing medicines". The recalls were "under way or pending" in Australia, Austria, Belgium, Canada, Croatia, the Czech Republic, Denmark, Finland, Germany, Hungary, Macedonia, Portugal, Slovakia, Slovenia, Sweden, Switzerland and the US.

Apotex also said it was recalling ranitidine tablets in the US.

The BBC has approached GlaxoSmithKline - original makers of Zantac. The company is reported to have stopped distributing its generic version of the drug and recalled its products from India and Hong Kong.

What should patients do?

Health regulators are urging people taking ranitidine not do discontinue it immediately.

The FDA said, however, that those taking it by prescription should contact health professionals about alternatives. And those buying it over the counter could consider other options.

French authorities also emphasised there was no "acute risk" and patients should not stop the medication or return it to pharmacies.

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https://www.bbc.com/news/health-49868852

2019-09-29 09:11:36Z
CBMiKGh0dHBzOi8vd3d3LmJiYy5jb20vbmV3cy9oZWFsdGgtNDk4Njg4NTLSASxodHRwczovL3d3dy5iYmMuY29tL25ld3MvYW1wL2hlYWx0aC00OTg2ODg1Mg

Sabtu, 28 September 2019

Illegal cannabis vape carts tested positive for poisonous cyanide - Business Insider

Vape cartridgeA disposable cannabis vape cartridge.Ben Gilbert/Business Insider

  • In a test of cannabis vape cartridges conducted by NBC News, 15 out of 15 illegal carts contained a fungicide that, when burned, can turn into hydrogen cyanide — a extremely dangerous poison.
  • All the legal vape carts tested were deemed safe.
  • In addition to the fungicide, 13 out of 15 contained Vitamin E — a solvent that's used to cut cannabis vapes.
  • Visit Business Insider's homepage for more stories.

Vaping, once thought to be a safe alternative to smoking, is facing increasing scrutiny over an increasingly visible health crisis: 530 total possible cases of vape-related lung illness, according to the CDC.

And it's not just cigarette smoking that has people turning to vaping — cannabis, too, is available in vape form. But, like so many black market items before it, the world of illegal weed vapes is tainted with the potential for dangerous additives that could hurt users.

A recent NBC News study documented exactly how real that potential danger is: Of the 15 black market cannabis vape carts NBC had tested, 13 came back positive for containing Vitamin E acetate — a solvent used to cut cannabis that, when it gets in your lungs, could trigger an immune response that causes pneumonia.

Even worse: Of the illegal carts NBC tested, all 15 tested positive for myclobutanil — a fungicide that, when burned, can turn into hydrogen cyanide. 

cura cannabis solutions select oil vape 1Legal cannabis vape cartridges at a production facility.Facebook/selectstrains

It's not all bad news — NBC News also tested three cannabis vape cartridges from a legal dispensary in California, all from different manufacturers.

All three came back clean, with the testing facility having found "no heavy metals, pesticides, or residual solvents like Vitamin E."

But with no federal-level regulation for cannabis vape carts, and legality of cannabis so balkanized, it's difficult to regulate dangerous additives in vape carts. As the federal government struggles to regulate the quickly emerging market, it's offering a straightforward solution that should work for anyone: Reconsidering buying and using a black market vape cart.

"If you're thinking of purchasing one of these products off the street, out of the back of a car, out of a trunk, in an alley," Mitch Zeller, the director of the FDA's Center for Tobacco Products, said recently, "or if you're going to go home and make modifications to the product yourself using something that you purchased from some third party or got from a friend, think twice."

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https://www.businessinsider.com/illegal-weed-vapes-laced-with-poison-2019-9

2019-09-28 14:01:08Z
52780396195170

9 ex-Tesla employees reveal the worst parts of working there - Business Insider

tesla employeeNine former Tesla employees, who worked at the company between 2008 and this year, described to Business Insider their least favorite parts of their jobs.Spencer Platt / Getty Images

Like many companies engaged in a highly competitive business, Tesla is not always an easy place to work. From long hours to the stress of working under CEO Elon Musk, a job at the electric-car maker can be demanding.

Nine former employees who worked at the company between 2008 and 2019 described their least favorite parts of their jobs. Each asked for anonymity due to a fear of reprisal from Tesla.

Here's what they said.

The photos in this story do not depict the former Tesla employees Business Insider interviewed.

Are you a current or former Tesla employee? Do you have an opinion about what it's like to work there? Contact this reporter at mmatousek@businessinsider.com.

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https://www.businessinsider.com/ex-tesla-employees-reveal-the-worst-parts-of-working-there-2019-9

2019-09-28 13:23:09Z
52780395148870

China Markets to Test the Risk of Most Extreme U.S. Threat Yet - Bloomberg

[unable to retrieve full-text content]

  1. China Markets to Test the Risk of Most Extreme U.S. Threat Yet  Bloomberg
  2. White House deliberates block on all US investments in China  CNBC
  3. 'Strap In Folks', Friday's China Portfolio Flows Story Is Bad News  Seeking Alpha
  4. ‘This Is Huge’ as China Threat Dents Markets: Wall Street Reacts  Bloomberg
  5. UPDATE 7-Trump considers delisting Chinese firms from U.S. markets -sources  Yahoo Finance
  6. View full coverage on Google News

https://www.bloomberg.com/news/articles/2019-09-28/china-markets-to-test-the-risk-of-most-extreme-u-s-threat-yet

2019-09-28 07:51:00Z
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Jumat, 27 September 2019

Delta's LATAM Investment: The 7 Losers - One Mile at a Time

Yesterday I wrote about the truly shocking development that Delta would buy a stake in LATAM, and as a result LATAM would cut ties with American and oneworld. This was all happening while American and LATAM were pursuing a joint venture, though they were having problems getting regulatory approval in Chile.

The extent to which this came out of left field, and the extent to which this largely reshapes the global airline industry in so many ways, can’t be understated.

In this post I wanted to take a closer look at who the “losers” are in this situation:

In this post:

American

It sure seems like American was blindsided by this. The airline is trying to downplay the severity of what happened. American says that they understand LATAM’s decision, and that their current relationship provided less than $20 million of incremental revenue to American. That’s probably technically true, though doesn’t fully underscore the extent to which this decision is going to be negative for them.

It’s true that American and LATAM were struggling to get their joint venture approved, and they would have had so many restrictions that it would have only been marginally worthwhile.

The real loss here doesn’t come in the form of incremental revenue loss, but rather from American and oneworld going from the dominant airline and alliance in the region, to now being a distant second:

  • American has generally been scaling back operations in South America, especially to secondary markets
  • American is left without a partner airline in South America, so they have few connection opportunities beyond their major hubs there
  • It’s true that Miami is the key gateway to South America, and American is still strong there, though keep in mind that LATAM also has flights to 10 destinations from Miami, so in many ways they can compete there

It’s going to be very interesting to see how American acts going forward. I’m curious if they just sort of largely concede Latin America, or if they ramp up operations and try to compete with the Delta & LATAM partnership.

The thing is, American actually could be very competitive, given they have Miami as a key gateway. But the question is whether or not Latin America is a lucrative enough market for them as of now, or whether American management can be forced to wake up and take action on anything.

Oneworld

LATAM is leaving oneworld, and that’s a huge loss for the alliance. While oneworld has some awesome airlines, and while they have great recognition for elite members, oneworld will have a huge hole in their network.

In Latin America Star Alliance has Avianca and Copa, while SkyTeam at least has Aerolineas Argentinas. Oneworld will have nothing.

SkyTeam

This might come as a surprise, but I actually think SkyTeam loses with this as well. While LATAM is leaving oneworld, there are no indications that they’re joining SkyTeam, and that’s bad news for SkyTeam.

Delta management has increasingly been talking about how they don’t see value in SkyTeam.

As Delta continues building their own global network of airlines without them joining SkyTeam, it increasingly deemphasizes the value of the alliance.

Gol

A few years ago Delta bought a stake in and formed a partnership with Brazilian airline Gol. This was an attempt for Delta to get some sort of a presence in Brazil, though obviously they’re not the ideal partner if you’re trying to build a global alliance.

It has been announced that Delta will be dropping their stake in Gol, so we can expect that that partnership will end soon as well.

Alaska

Alaska has a global network of partner airlines, and for years they’ve partnered with LATAM. It has been great to be able to earn and redeem Alaska Mileage Plan miles for travel on LATAM.

While nothing has been formally announced, I’d be willing to bet that Delta will force LATAM to cut ties with Alaska.

Delta and Alaska are sort of enemies at this point (they used to be frenemies), given how fiercely they’ve been competing in Seattle. So the precedent has been that as Delta gets closer to airlines, they magically cut ties with Alaska.

Savvy Consumers

I don’t want to say that consumers on the whole lose out because of this new partnership, though I do think it’s fair to say that savvy consumers will lose out.

In many ways, American and LATAM were exactly where I wanted them. I was happy their joint venture wasn’t approved, since it meant there was more competition in the marketplace.

But for savvy consumers, I ultimately do think LATAM was better where they are now than where they will be:

  • LATAM is currently in a global alliance, meaning that people from around the world can easily earn and redeem miles on them
  • The global alliances do offer a lot of consumer benefits, like lounge access, priority check-in, and more

While Delta will no doubt offer reciprocal benefits:

  • They likely won’t have nearly as many global partners
  • Delta often restricts benefits to specific circumstances/types of tickets (in other words, despite Delta’s big investment in both airlines, I doubt Virgin Atlantic elite members will get access to LATAM lounges when flying the airline domestically)

Qatar Airways

There aren’t really practical implications here, but it is still noteworthy. Qatar Airways owns a 10% stake in LATAM. Delta and Qatar Airways hate one another. Qatar Airways CEO Akbar Al Baker constantly talks about Delta, and their “granny” flight attendants, and their “sh!t aeroplanes.”

Purely in terms of ego, I can’t imagine Al Baker is all too happy that his friends in Atlanta just purchased a bigger share of the airline than Qatar owns. I’d be shocked if Al Baker wasn’t emptying out his piggy bank today to see if he can buy more, because he doesn’t want to be second place to anything compared to Mr. Bastian.

Bottom Line

Delta’s investment in LATAM is possibly the biggest airline acquisition news in the US since the merger spree we saw among US airlines (which started with Delta & Northwest and ended with Alaska & Virgin America).

This is big in so many ways — in terms of the amount spent, in terms of the implications this has for the global alliances, and in the sense that Delta literally stole LATAM from American and oneworld, and is in the process throwing Gol by the wayside.

What’s your take as to who the losers are with Delta’s investment in LATAM?

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https://onemileatatime.com/deltas-latam-investment-losers/

2019-09-27 11:19:48Z
52780394998368

It doesn’t matter that Peloton shares tumbled on their first day: Morning Brief - Yahoo Finance

Friday, September 27, 2019

Get the Morning Brief sent directly to your inbox every Monday to Friday by 6:30 a.m. ET. Subscribe

Why Peloton's IPO was a huge success

Peloton went public on Thursday.

Shares of the interactive exercise platform operator priced at $29 on Wednesday and finished Thursday’s trading session at $25.76, good for an 11.2% decline on its first day of trading.

This decline in the stock on its first day of trading could be framed as a disappointment. Bloomberg notes, for instance, that was the third-worst public debut of the last decade.

This price action might indicate that investors aren't excited about Peloton's prospects and that the struggles of consumer tech IPOs this year will continue. Some may also ask if this means the IPO window is closing. Have the struggles at The We Company spread into other offerings? And if the whole market of a successful IPO is seeing shares pop on the first day, then surely this is a failure, right?

Well, as far as famed VC investor Bill Gurley sees it, the first-day IPO pop is the most misunderstood and financially nonsensical event that a management — and investors and the media — team could root for.

Speaking with Patrick O'Shaugnessy on the Invest Like the Best podcast this week, Gurley took to task the idea that "successful" IPOs are ones in which a company’s stock trades sharply higher on the first day of trading.

"Thinking that a pop is a marketing event is about the most short-term oriented decision a manager or CEO/CFO could think," Gurley said. "Because it happens and it's over. And then the rest of your corporate life is based on how the company performs. And the notion that I'd get some lasting benefit by paying $500 million for this marketing event flies in the face of long term thinking."

Gurley cites an analogy about homebuying he heard from Henry Blodget — imagine selling your house and then hearing your broker sold the home for 80% more the next day. Now imagine celebrating that. This is what is happening when first-day IPO pops are cheered. It is a celebration that makes no economic sense.

Companies that see shares pop on the first day of trading leave money on the table. Money that could've been used to invest in the business. And the founders, employees, and early investors in a company that sell shares into the IPO also lose money — potentially hundreds of millions of dollars — if the stock goes nuts on the first day of trading. The only stakeholders excited about a first-day IPO pop are the investors who were fortunate enough to get an allocation the day before the IPO and then flipped these shares and the bankers who will now be able to earn fees on a future secondary offering of stock.

To take a real world example from this year, anyone that sold Beyond Meat (BYND) shares into the IPO sold shares at $25; when the market closed on Beyond's first day of trading, those shares were worth $65.75. So a Beyond Meat executive, for example, that sold $1 million worth of Beyond Meat stock into the IPO lost out on more than $1.6 million in potential gains.

Peloton IPO (Reuters)

But guess who did benefit? The investors who got an IPO allocation of Beyond and flipped it on day one and the bankers that got to participate in Beyond's secondary offering in late July.

In other words, the winner of Beyond Meat's IPO wasn't Beyond Meat.

Now, certainly the bankers that run IPO processes don't do nothing. You cannot have well-paid, well-connected finance professionals market your company and connect with investors for free. And as with many things in financial markets, the psychology of events can matter as much as the economics of an event. So if the psychology of an IPO that sinks on its first day of trading is thought to indicate that the company's prospects are bad, then the economic benefit for a company that prices its IPO higher than where it opens for trade might be ignored by investors.

Gurley's solution for companies is to favor direct listings. In a direct listing — which we've seen from Spotify (SPOT) and Slack (WORK) recently — companies don't lean on a team of bankers to drum up support for shares at a certain price.

Instead, the company says it will list shares on a certain exchange on a certain date and then shares begin trading. The newly-public company does not raise any money or issue any new shares. Of course, the problem with direct listings is that they make bankers a whole lot less money.

But the goal of an IPO isn't to enrich bankers or to make shares trade higher. The goal of an IPO is to raise money and offer liquidity to early shareholders who had been sitting on illiquid positions. The price the market sets for shares after they start trading does not — or at least, should not, and certainly need not — matter to the company.

Because in the end, a good company will be respected by the market over the long term. As Gurley reminds listeners, Facebook (FB), Amazon (AMZN), and Alphabet (GOOGL) "broke issue" and traded below their IPO price. And I think we'd all agree these companies have done well by their shareholders.

By Myles Udland, reporter and co-anchor of The Final Round. Follow him @MylesUdland

What to watch today

Economy

  • 8:30 a.m. ET: Personal Income, August (0.4% expected, 0.1% in July); Personal Spending, August (0.3% expected, 0.6% in July)

  • 8:30 a.m. ET: Durable Goods Orders, August preliminary (-1.2% expected, 2.0% in July); Durables excluding Transportation, August preliminary (0.3% expected, -0.4% in July);

  • 10 a.m. ET: University of Michigan Sentiment, September final (92.1 expected, 92.0 prior)

From Yahoo Finance

  • Season 4 of the popular NBC drama “This is Us” premiered on Tuesday. Today at 5 p.m. ET Yahoo Finance will reprise the My Three Cents installment in which The Final Round co-anchor Jen Rogers interviews “This is Us” star Chrissy Metz, who speaks candidly about growing up poor and about how she keeps a close eye on her finances to ensure she never lives in poverty again.

Read more

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ZHOUSHAN, CHINA - SEPTEMBER 01: Aerial view of a Cosco France container ship berthing with the help of tugboats at the Port of Ningbo-Zhoushan on September 1, 2019 in Zhoushan, Zhejiang Province of China. The Cosco France container ship, coming from Singapore, will unload 8,015 twenty-foot equivalent unit (TEU) containers at the Port of Ningbo-Zhoushan. (Photo by Yao Feng/VCG via Getty Images)

Global oil shipping rates soar as U.S. supertanker sanctions rattle crude trade [Reuters]

Pound plunges after Bank of England policymaker signals rate cut [Yahoo Finance UK]

Endeavor abandons IPO amid market pushback [Reuters]

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https://finance.yahoo.com/news/peloton-ipo-success-shares-fall-103249581.html

2019-09-27 10:32:00Z
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WeWork's new co-CEOs are planning to oust 20 of Adam Neumann's friends and family members - Business Insider

wework new ceos 4x3WeWork's new co-CEOS, Artie Minson, left, and Sebastian Gunningham, are reportedly moving quickly to overhaul its management.We Company; Samantha Lee/Business Insider

WeWork's new co-CEOs appear eager to make a sharp break from Adam Neumann's reign.

Artie Minson and Sebastian Gunningham plan to oust some 20 friends and family members of Neumann as part of an effort to overhaul the company and its management, The Wall Street Journal's Eliot Brown, Anupreeta Das, and Maureen Farrell reported Thursday. Among those in their sights: Michael Gross, a longtime friend of Neumann who serves as WeWork's vice chair, and Chris Hill, the company's chief product officer, who is also a brother-in-law of Neumann's wife Rebekah. 

Business Insider had previously reported that Hill was slated to leave, along with Roni Bahar, WeWork's director of development, and Zvika Shachar, its head of global security.

Read this: We just learned about the latest WeWork departures. 3 longtime members of Adam Neumann's inner circle are out. More key exits are likely coming.

In addition to Gross and Hill, The Journal reported that around 10 employees who directly reported to Neumann in a group dubbed the "oval office" will also be leaving the company. It was unclear if Bahar and Shachar were part of the "oval office." Also, Rebekah Neumann is stepping down from her roles at the company, Bloomberg reported earlier this week.

WeWork representatives did not immediately respond to an email seeking comment.

The new co-CEOs are cleaning up after WeWork's failed IPO

Minson and Gunningham are expected to go far beyond just pushing out Neumann's circle in trying to reshape the company. They're also expected to slash thousands of jobs and sell off businesses outside of WeWork's core office rental operation, The Journal reported. Additionally, they're planning to sell off the company's Gulfstream G650ER jet that the company purchased last year for $60 million, as Business Insider reported. Neumann used the jet often to fly between New York and the Bay Area, according to The Journal; he has homes in both places.

Read this: WeWork is selling the company's $60 million luxurious private jet that Adam Neumann and his family personalized and used to fly all over the world

The changes come after Neumann's abrupt downfall in the wake of WeWork's failed initial public offering. The company was planning on going public as soon as this month, but postponed the IPO after meeting stiff resistance from potential investors who were concerned about its governance and spiraling losses. Initially, the company said it still planned to go public later this year. Now, the company is potentially looking to push back the offering into next year, according to The Journal's report.

WeWork has $6 billion riding on the timing and success of its IPO. A collection of lenders, including JPMorgan, have promised to give it a credit line of up to that amount if it raises $3 billion in a public offering by the end of this year, although they could change the terms of that agreement.

Got a tip about WeWork or another company? Contact this reporter via email at twolverton@businessinsider.com, message him on Twitter @troywolv, or send him a secure message through Signal at 415.515.5594. You can also contact Business Insider securely via SecureDrop.

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https://www.businessinsider.com/weworks-new-co-ceos-plan-oust-20-friends-adam-neumann-2019-9

2019-09-27 07:31:31Z
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US stocks look to bounce back following Trump impeachment concerns - Fox Business

U.S. stocks are pointing to a higher open on Friday when Wall Street opens, looking to rebound from losses spurred by concerns what impact an impeachment inquiry into President Trump will have on markets.

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The three major equity futures indexes are trading 0.3 percent higher.

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The congressional inquiry into Trump is throwing more volatility into a market that already was nervous over U.S.-Chinese trade tension.

While many analysts say the Trump probe isn't likely to affect the market significantly, it does add a degree of uncertainty and could complicate the White House's efforts to resolve trade disputes with China and other nations.

Also Thursday, the Commerce Department reported the U.S. economy grew at a modest 2 percent in the second quarter, sharply lower than the past year's 3 percent-plus growth rates.

TickerSecurityLastChange%Chg
I:DJIDOW JONES AVERAGES26891.12-79.59-0.30%
SP500S&P 5002977.62-7.25-0.24%
I:COMPNASDAQ COMPOSITE INDEX8030.660825-46.72-0.58%

On Wall Street, the Standard & Poor's 500 index fell 0.2 percent and the Dow Jones Industrial Average slid 0.3 percent. The Nasdaq dropped 0.6 percent.

In Asian markets, China's Shanghai Composite Index ended the day adding 0.1 percent, but lost 2.5 percent for the week. It was the final day of trading before Chinese markets close for a weeklong holiday.

Tokyo's Nikkei 225 closed down 0.8 percent and a loss of 0.9 percent for the week. Hong Kong's Hang Seng shed 0.3 percent.

Traders in Asia were encouraged by a Chinese Commerce Ministry announcement that importers had agreed to buy U.S. soybeans as the two sides make conciliatory gestures ahead of trade talks.

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Plans to go ahead with negotiations next month have helped to ease market jitters, but there has been no sign of progress toward resolving the bruising tariff war over trade and technology.

In Europe, London' FTSE added 0.8 percent, Germany's DAX gained 0.5 percent and France's CAC was up 0.3 percent.

The Associated Press contributed to this article.

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https://www.foxbusiness.com/markets/us-stocks-sept-27-2019

2019-09-27 07:26:29Z
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Asia stocks Friday as U.S. political turmoil takes a toll - MarketWatch

Asian stocks fell Friday as traders weighed data showing slower U.S. economic growth and also the possible impact of an impeachment inquiry of President Donald Trump.

The congressional inquiry into Trump is throwing more volatility into a market that already was nervous over U.S.-Chinese trade tension.

“The impeachment of Trump will now become a drawn-out saga that feels like annoying supermarket music,” Jeffrey Halley of Oanda said in a report.

Also Thursday, the Commerce Department reported the U.S. economy grew at a modest 2% in the second quarter, sharply lower than the past year’s 3%-plus growth rates.

The Shanghai Composite Index SHCOMP, +0.11% flattened out on the last day of trading before Chinese markets close for a weeklong holiday.

China’s industrial profits dropped 2% in August from a year earlier, after rising 2.6% in July, the National Bureau of Statistics of China said Friday. Disruptions from strong storms last month also contributed to it, Zhu Hong, an economist with the bureau, said in a statement. For the first eight months, industrial profits declined 1.7% on year, the bureau said.

China’s producer prices fell further into deflation last month, piling pressure on manufacturers that had been struggling with the prolonged trade war between China and the U.S., official data showed earlier. Meanwhile, value-added industrial output grew at the slowest pace in more than a decade, underscoring sluggish demand and soft business confidence, the bureau said.

Tokyo’s Nikkei 225 NIK, -0.77% lost 1.3% as a long-dreaded Oct. 1 hike in Japan’s sales tax to 10% from the current 8% loomed.

Many stocks in the Nikkei also went ex-dividend on Friday, which is accounted for a good portion of the index’s decline, according to analysts. Kansai Electric Power 9503, -3.98%   and Sumitomo Mitsui Financial Group SMFG, -0.14%   fell, while Japan Display 6740, -10.45%   slid after it said a key investor wanted to pull out of the bailout plan.

The Hang Seng in Hong Kong HSI, -0.34%  shed 0.3%, while Seoul’s Kospi 180721, -1.19%  dropped 1.3%, dragged down by large-cap technology shares. Despite renewed hopes for a U.S.-China trade deal, U.S. political uncertainty caused by an impeachment inquiry into President Trump weighs on investor sentiment, which could prompt profit-taking on recent gains, a KB Securities analyst said.

Sydney’s S&P-ASX 200 XJO, +0.58%  gained 0.4%.

Traders were encouraged by a Chinese Commerce Ministry announcement that importers had agreed to buy U.S. soybeans as the two sides make conciliatory gestures ahead of trade talks. That followed an earlier decision to list punitive tariffs on soybeans, the biggest Chinese import from the United States.

Plans to go ahead with negotiations next month have helped to ease market jitters but there has been no sign of progress toward resolving the bruising tariff war over trade and technology.

On Wall Street, the Standard & Poor’s 500 index SPX, -0.24%   fell 0.2% to 2,977.62 and the Dow Jones Industrial Average DJIA, -0.30%  slid 0.3% to 26,891.12. The Nasdaq COMP, -0.58%  dropped 0.6% to 8,030.66.

While many analysts say the Trump probe isn’t likely to affect the market significantly, it does add a degree of uncertainty and could complicate the White House’s efforts to resolve trade disputes with China and other nations.

Benchmark U.S. crude CLX19, -0.44%  lost 31 cents to $56.11 per barrel in electronic trading on the New York Mercantile Exchange. The contract gave up 8 cents to $56.41 on Thursday. Brent crude BRNZ19, -0.75%, used to price international oils, fell 60 cents to $61.18 per barrel in London. It retreated 31 cents the previous session to $61.74.

The dollar USDJPY, +0.01%  declined to 107.67 yen from Thursday’s 107.83 yen. The euro EURUSD, -0.0366%  rose to $1.0922 from $1.0920.

This story was compiled from Dow Jones Newswires and Associated Press reports.

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https://www.marketwatch.com/story/asia-stocks-falter-early-friday-as-us-political-turmoil-takes-a-toll-2019-09-26

2019-09-27 05:16:00Z
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